Puget Sound Energy, Inc.

Original Volume No. 1

Effective Date: 11/01/1998, Docket: CP98-250-002, Status: Effective

Original Sheet No. 44 Original Sheet No. 44 : Effective

6.4.6 Expansions and Additions

6.4.6.1 Upon receipt by the Project Operator from an Owner(s) of

a written Proposal (pursuant to Section 4.1) to increase the

capacity of the Storage Project, the Project Operator will submit

to the Committee for review and approval the following

information:

(i) list of facilities to be installed, by Reservoir;

(ii) total estimated cost of such facility(s);

(iii) flow diagrams for such new facility(s);

(iv) time required to complete construction; and

(v) costs for preparing information.

6.4.6.2 All participating Owners will execute a construction

contract with the Project Operator upon mutually agreeable terms

and conditions prior to commencing construction and will agree to

an overall plan for such expansion or addition. Such contract

shall provide that any installation of such expansion or addition

will not impair the Storage Service Rights, of the non-

participating Owner(s), other than for temporary interruptions to

install the facilities required for such expansion or addition.

The Project Operator shall make a reasonable effort to coordinate

the timing of any such temporary interruptions to minimize adverse

impact to the Owners.

6.4.6.3 The Project Operator will be responsible for the

construction, operation, and maintenance of the new facilities.

The Project Operator will also be responsible for obtaining any

necessary permits and governmental authorizations or approvals

associated with the construction of the new facilities, including

approvals required by the FERC for the construction and operation

of the Storage Project, excluding approvals which may be required

of each Owner by the FERC or the WUTC. The Project Operator will

be under no obligation to commence construction of the new

facilities until such time as all necessary permits