Puget Sound Energy, Inc.

Original Volume No. 1

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

Original Sheet No. 50 Original Sheet No. 50 : Effective

complete account, in accordance with generally accepted accounting

principles, of all costs and expenses incurred by it in connection

with the provision of all services under this Agreement.

6.11.2 The Owners shall provide a monthly reimbursement of

Capital and O&M Costs, including a reasonable allocation of

overheads, to the Storage Operator, in accordance with the Owners'

Weighted Shares on Exhibit B. Reimbursement for Routine Services,

exclusive of fuel, will not exceed one hundred twenty-five percent

(125%) of the budgeted amount, unless approved by the Committee.

If and to the extent that such costs and expenses incurred by the

Project Operator would exceed one hundred twenty-five percent

(125%) of the budgeted amount, the Project Operator may suspend

performance of Repairs until additional amounts are authorized by

the Committee or the Project Operator may, in that event,

voluntarily resign with three (3) months' notice.

6.11.3 Each Owner shall provide monthly reimbursement of fuel

used by the Storage Project, to the Project Operator, pursuant to

Section 8.3.

6.11.4 The Project Operator will tender invoices with supporting

documentation as agreed to by the Committee to the Owners on or

before the twentieth (20th) day of each Month setting forth the

fees, costs, and expenses for providing Routine Services, Repairs,

Special Services, and any Emergency services for the preceding

Month(s) for each Owner.

6.12 Payment to Project Operator

Within twenty (20) days after receipt of an invoice from the

Project Operator relating to Routine Services, Repairs, Special

Services, or Emergency services under this Agreement, each Owner

will remit the amount to the Project Operator unless disputed

pursuant to Section 6.12.1. In the event that an Owner fails to

make timely payment of all or a portion of an invoice from the

Project Operator, the Project Operator will be entitled to collect

from such Owner the unpaid amount of said invoice