Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

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

Original Sheet No. 500 Original Sheet No. 500 : Pending

GENERAL TERMS AND CONDITIONS

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(5) The NCG Settlement is predicated upon a

forty-eight (48) month billing period commencing December 1, 1993.

Natural shall adjust the rate hereunder applicable to the remainder

of the recovery period after the Effective Date of the NCG

Settlement such that total collections are consistent with the

collections had the rates provided for hereunder been in effect

commencing December 1, 1993. Natural shall reflect applicable

interest in such adjusted rate consistent with Section 38.10(a)(3)

of these General Terms and Conditions to compensate Natural or the

Natural Customer Group for any resulting timing difference in

collection. Collections of Supply Realignment Costs from Natural

Customer Group members under any other applicable recovery

mechanism rate prior to the Effective Date of the NCG Settlement

shall be taken into account in calculating such rate. The cap on

Natural's collections under subsection (b) shall be adjusted for

any interest which is attributable solely to the fact that the NCG

Settlement is not implemented in accordance with the schedule set

out in this subsection (a).

(b) (1) Excluding the flowthrough of transition costs

from upstream pipelines (it being recognized, however, that all

upstream transition costs associated with Coal Gas are encompassed

by the NCG Settlement), and except as provided in Section

38.10(a)(5), the total amount of Supply Realignment Costs

recoverable from the Natural Customer Group, inclusive of interest

on principal amounts allocated to the Natural Customer Group under

subsection (b)(2) shall not exceed $408 million, which amount

represents the collections under the transportation billing units

and maximum average surcharge set out in subsection (a).

Notwithstanding the prior sentence, Natural may make the adjustment

provided for in subsection (a)(5). In addition, in the event the

total aggregate interest owed by Natural to Natural Customer Group

members at the time of the reconciliation, as calculated under

Section 38.10(a)(3)(ii) of these General Terms and Conditions,

exceeds the total aggregate interest owed to Natural by the Natural

Customer Group at the time of the reconciliation, as calculated

under Section 38.10(a)(3)(i) of these General Terms and Conditions,

the cap shall be adjusted downward by the net amount of such

interest.

(2) The total principal amount of Supply

Realignment Costs recoverable from Natural Customer Group members

(exclusive of transition costs flowed through from upstream

pipelines) shall, subject to the limitation in subsection (b)(1)

equal the total principal amount of Natural's Supply Realignment

Costs less the sum of the following exclusions: