Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 445 Original Sheet No. 445 : Pending

GENERAL TERMS AND CONDITIONS

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21.3 TRACKING RATE ADJUSTMENTS

(a) The initial tracking amount determined under

Section 21.2 of these General Terms and Conditions shall become

effective December 1, 1993. Effective June 1, 1994 and effective

the beginning of each subsequent December 1 and June 1 thereafter

while this Section 21 is in effect, Natural shall adjust its rates

to reflect: (1) changes in the level of annual costs in Account

No. 858 as determined under subsection (b); and (2) buyout or

buydown costs as determined pursuant to Section 21.4 of these

General Terms and Conditions. Semi-annual tracking filings

submitted in accordance with this Section shall become effective,

subject to refund, on the designated effective dates. Any changes

from the prior tracking level shall be subject to review in the

semi-annual tracking filing proceeding. Such review may encompass

issues of the eligibility and prudence of such costs.

(b) Changes from the prior tracking level for Account

No. 858 costs shall be based on a comparison between the known and

measurable annual costs of reservation, demand and other fixed

charges under Account No. 858 contracts and the level of such costs

reflected in the most recent prior tracking filing. The base cost

level shall be the annual fixed cost level reflected in the initial

tracking level in the case of the filing to be effective June 1,

1994 and the cost level reflected in the last semi-annual tracking

filing in the case of any subsequent semi-annual tracking filing.

Buyout or buydown costs may be reflected by an amortization

consistent with Section 21.4 of these General Terms and Conditions.

Such cost changes shall be reflected in a tracking filing made by

Natural thirty (30) days prior to any of the effective dates

specified in subsection (a).

a deferred account to reflect any differences between amounts

recovered under this Section 21 and actual costs; provided,

however, that for any new contracts entered into after November 30,

1993, Natural shall be deemed (notwithstanding actual collections)

to have recovered an amount equal to the surcharge hereunder

multiplied by the nominal contract demand, except where adjusted

for discounting under subsection d(2). The net deferred balance

shall be an adjustment to each semi-annual tracking filing. Account

No. 858 activity associated with any period prior to December 1,

1993 shall be excluded from this deferred account. Natural shall

also reflect any refunds accrued under Account No. 858