Puget Sound Energy, Inc.

Original Volume No. 1

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

Original Sheet No. 56 Original Sheet No. 56 : Effective

7.8 Northwest System Balancing Account

The Project Operator, on behalf of the Storage Project and other

Owners, and Northwest shall each maintain a balancing account,

with the other, along with appropriate supporting records. The

Project Operator and Northwest are directed to track and

periodically reconcile as necessary, the activity and cumulative

balance in Northwest System Balancing Account.

7.8.1 Northwest shall provide to the Project Operator, on a daily

basis, such information regarding activities of the Storage

Project, including but not limited to real time nominations as

confirmed and sufficient in scope and detail as reasonably

determined by the Project Operator to be necessary, and as

determined by Northwest to be reasonably available for the Project

Operator to monitor daily activity in the Northwest System

Balancing Account.

7.8.2 The Project Operator shall monitor the Northwest System

Balancing Account by review of daily activity in the Northwest

System Balancing Account and other methods as appropriate, and

promptly advise the Committee if, in the Project Operator's sole

opinion, such use by Northwest constitutes a substantial risk to

the integrity of the Storage Project or a substantial risk of

impairment or actual impairment of the Storage Project's ability

to provide Storage Service Rights to any Owner.

7.8.3 Northwest, the Project Operator and the Committee shall

expeditiously coordinate to resolve any such risk or impairment.

Northwest will promptly make all reasonable efforts, including,

but not limited to, enactment of allowable entitlements on

Northwest's Natural Gas Transmission System, to enable a

restoration of all service nominated by any Owner from the Storage

Project.

7.9 Curtailment

In the event of curtailment (i.e., the capability of the Storage

Project to provide the Storage Service Rights of all Owners is

less than the sum of all Confirmed Nominations for the Storage

Project), including Force