Quest Pipelines (Kpc)

Second Revised Volume No. 1

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Effective Date: 10/01/2009, Docket: RP09-1019-000, Status: Effective

First Revised Sheet No. 180 First Revised Sheet No. 180

Superseding: Original Sheet No. 180

GENERAL TERMS AND CONDITIONS (continued)

17.2 Annual Charge Adjustment Provision (ACA)

(a) Purpose

Annual charges are assessed to KPC by the Commission under Part

382 of the Commission's Regulations prior to each fiscal year in

order to cover the cost of the operation of the FERC. For the

purpose of recovering such charges assessed KPC by the Commission,

this Section 17.2 establishes pursuant to Section 154.38(d)(6) of

the Commission's Regulations an ACA Surcharge to be applicable to

quantities transported under any firm or interruptible KPC Rate

Schedules. This ACA Surcharge is in addition to any amounts

otherwise payable to KPC under said Rate Schedules.

Notwithstanding the foregoing, the ACA Surcharge shall not be

applicable to quantities parked or loaned under Rate Schedule PAL.

(b) Basis of the ACA Unit Charge Rate

The ACA Unit Charge Rate shall be that increment, adjusted to

KPC's measurement base (Dekatherm) and pressure base, if required,

which has been approved by valid Commission Orders approving an

annual charge unit rate.