Puget Sound Energy, Inc.

Original Volume No. 1

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

Original Sheet No. 55 Original Sheet No. 55 : Effective

7.6.3 Such assignment does not alleviate the responsibility of the

Project Operator and Northwest to monitor Northwest System

Balancing.

7.7 Scheduling Priorities

If otherwise allowable nominations for injections or withdrawals

exceed the Storage Project's capabilities on any Day and for

purposes of accepting hourly nominations, the available capacity

will be scheduled as follows:

7.7.1 First, capacity will be allocated on a pro rata basis

according to each Owner's Share of applicable total Storage

Service Rights and scheduled for nominations within each Owner's

(i) Firm Injection Capability; (ii) Firm Withdrawal

Deliverability; and (iii) Firm Working Gas Capacity;

7.7.2 Second, capacity will be allocated on a pro rata basis

according to each Owner's Share of applicable total Storage

Service Rights and scheduled for nominations within each Owner's

Best Efforts Withdrawal Deliverability;

7.7.3 Third, Interruptible Withdrawal Deliverability,

Interruptible Injection Capacity and Interruptible Working Gas

Capacity will be scheduled for nominations by Northwest for

Northwest System Balancing; and

7.7.4 Fourth, capacity will be allocated on a pro rata basis

according to each Owner's Share of applicable total Storage

Service Rights, except that any allocation to Northwest under this

Section 7.7.4 shall be decreased by the amount allocated to

Northwest pursuant to Section 7.7.3, and scheduled for nominations

of each Owner for Interruptible Withdrawal Deliverability,

Interruptible Injection Capability and Interruptible Working Gas

Capacity.