Nora Transmission Company

First Revised Volume No. 1

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Effective Date: 10/01/1997, Docket: TM98-1-100-000, Status: Effective

Fourth Revised Sheet No. 163 Fourth Revised Sheet No. 163 : Superseded

Superseding: Third Revised Sheet No. 163

GENERAL TERMS AND CONDITIONS (Continued)

29. FEDERAL ENERGY REGULATORY COMMISSION ANNUAL CHARGE ADJUSTMENT

PROVISION

29.1 Purpose

Section 3401 of the Omnibus Budget Reconciliation Act of 1986

provides that the Federal Energy Regulatory Commission (FERC)

establish an annual charge for each fiscal year ending

September 30, in an amount equal to costs incurred to operate

the Federal Energy Regulatory Commission for the fiscal year.

For the purpose of funding of Federal Energy Regulatory

Commission costs incurred in any fiscal year, this Section

establishes as part of Pipeline's rates an Annual Charge

Adjustment (ACA) Provision to be applicable to the Pipeline's

Rate Schedules ITS and FTS. The Pipeline does not intend to

recover any annual charges recorded in FERC Account No. 928 in

a Natural Gas Act Section 4 rate case.

29.2 Basis of the Annual Charge Adjustment

The Rate Schedules ITS and FTS specified in Section 29.1 hereof

shall include an increment for an Annual Charge Adjustment

(ACA) for Federal Energy Regulatory Commission costs. The

unit rate of such charge shall be that amount, adjusted to the

Pipeline's pressure base and heating value, if required, which

has been specified by the Federal Energy Regulatory Commission

each year. The current effective Annual Charge Adjustment is

set forth on Sheet No. 4.

29.3 Filing Procedures

The Annual Charge Adjustment Provision may be placed into

effect upon not less than 30 days notice unless, for good cause

shown, a lesser notice period is allowed by valid Commission

order.