Quest Pipelines (Kpc)

Second Revised Volume No. 1

Effective Date: 02/01/2008, Docket: RP08-174-000, Status: Effective

Original Sheet No. 189 Original Sheet No. 189 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

24.5 Interruptible Revenue Crediting

Within sixty (60) days of October 1 of each year following the

Implementation date, KPC shall file a statement with the

Commission comparing (1) the total revenues collected pursuant to

Rate Schedule IT during the twelve (12) month period ending

September 30, against (2) the total cost of service allocated to

be recovered from Rate Schedule IT. To the extent such revenue

exceeds such cost of service allocation, KPC shall consider any

such amounts to be excess revenues. One Hundred percent (100%) of

such excess revenues, less applicable surcharges, penalties, and

variable costs incurred to provide the service, shall be credited

against the reservation charges paid by firm shippers served under

Rate Schedules FT, FT-NN, SCT, and SCT-NN. All firm shippers

served under Rate Schedules FT, and FT-NN paying the maximum rate

shall receive a pro-rata share of such credits based on their

contract MDCQ.

For Multiple Rate Periods, allocated costs will be prorated based

on the number of days each cost level was in effect. Such refunds

shall not be given until the rates KPC used to compute the

revenues are no longer subject to refund. Upon issuance of a

final commission order which accepts new rates under Section 4(e),

KPC will mail any refunds, including interest, pursuant to

Section 154.501 of the Commission's regulations, accrued from the

end of the twelve (12) month distribution period ending September

30 of each year, within ten (10) days following a final Commission

Order accepting KPC's refund filing. "Variable Cost" as used in

this Section 25.6 will be the product of all quantities delivered

under IT Service and the minimum rate for such service listed on

Sheet No. 47.