Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2009, Docket: RP09-8-002, Status: Effective

Substitute Original Sheet No. 69 Substitute Original Sheet No. 69

Superseding: Original Sheet No. 69

GENERAL TERMS AND CONDITIONS

3. REQUESTS FOR SERVICE/CREDIT EVALUATIONS (Continued)

3.2 Available Capacity. (Continued)

(c)Valuation of Bids. (Continued)

Where: P = percent of the rate or charge that the Shipper is

willing to pay.

R = rate or charge calculated as: The applicable maximum

authorized reservation charge(s) per Dth in effect at

the time of the bid for service.

i = FERC's annual interest rate divided by 12.

n = number of periods for which the bidder wishes to

contract.

The NPV formula will be affected by the term and rate requested.

In the event Transporter intends to entertain bids for service

under index-based or other Negotiated Rate Formulae, the future

value of which cannot be determined at the time of the bidding,

Transporter shall estimate the future revenues to be received

under the Negotiated Rate Formula using currently available data.

Unless otherwise specified in its open season posting, when

evaluating bids for long-term firm capacity with terms of one year

or more, Transporter shall adjust the NPVs of those shippers that

have not met the creditworthiness criteria of Section 3.5 of the

General Terms and Conditions of this tariff by applying an

additional factor: Shipper's probability of default for the

applicable bid term.

The NPV for non-creditworthy shippers is the discounted cash flow

of the bid according to the following formula, net of revenues

lost or affected by the requests for service:

(1 + i) - 1

Present Value per = P x R x (1-PD) x ____________

i(1 + i)

Where: P = percent of the rate or charge that the Shipper is

willing to pay.

R = rate or charge calculated as: The applicable maximum

authorized reservation charge(s) per Dth in effect at

the time of the bid for service. (continued)