Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

Effective Date: 10/23/2006, Docket: RP06-604-000, Status: Effective

First Revised Sheet No. 149 First Revised Sheet No. 149 : Effective

Superseding: Original Sheet No. 149

GENERAL TERMS AND CONDITIONS

(continued)

23. ANNUAL CHARGE ADJUSTMENT (ACA)

The purpose of this Section 23 is to establish procedures designed to implement Section 154.402 of

the FERC's Regulations which allows a natural gas pipeline to adjust its rates annually to recover

from its customers annual charges assessed it by the FERC under Part 382 of the FERC's Regulations -

Assessment of Annual Charges (annual charges). Transporter shall not recover any annual charges

assessed by the FERC and recorded in FERC Account No. 928 in an NGA Section 4 rate case for any time

period that this ACA clause is in effect.

23.1 Application

In order to recover such annual charges, this Section 23 establishes an ACA Unit Surcharge per

dth to be applicable to quantities of natural gas transported under Transporter's Rate

Schedules.

23.2 Basis of the ACA Unit Charge

Transporter's Transportation Rate Schedules shall include a separately identified rate

increment for an ACA Unit Surcharge. Such ACA Unit Surcharge shall be that increment, adjusted

to Transporter's measurement basis (dekatherm), which shall be authorized on an annual basis by

the FERC for each fiscal year commencing October 1 and ending September 30 pursuant to Section

382 of the FERC Regulations. The ACA Unit Surcharge shall be separately reflected on the

currently effective Rate Sheets of this FERC Gas Tariff.

23.3 Filing Procedure

The initial ACA Unit Surcharge or any subsequent changes in such surcharge shall be filed by

Transporter at least thirty (30) days prior to the proposed effective date.

Transporter shall effectuate rate adjustments made pursuant to this Section 23 on October 1 of

each year. Any such rate adjustment shall not become effective unless it becomes effective

without suspension or refund obligation.

23.4 Payment by Shipper

The amount of Shipper's applicable ACA Unit Surcharge shall be due and payable concurrently

with such bill for gas service as specified in Section 7.1 of these General Terms and

Conditions.