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. 515 Original Sheet No. 515 : Pending

GENERAL TERMS AND CONDITIONS

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(3) For the purposes of this reconciliation,

applicable interest as to Natural Customer Group members shall be

determined as follows:

(i) to the extent the cumulative amount

Natural has actually paid for Supply Realignment Costs allocable to

Natural Customer Group members under the formula in Section 38.4

exceeds, as of the end of any quarter, the cumulative collections

from Natural Customer Group members, Natural shall be entitled to

add interest for the quarter on such excess at the rate then in

effect under the Commission's Regulations at the Commission-approved

rate under 18 C.F.R. Section 154.501(d); and

(ii) to the extent the cumulative collections

Natural has received hereunder from Natural Customer Group members

exceeds, as of the end of any quarter, the cumulative actual

payments of Supply Realignment Costs allocable to Natural Customer

Group members under the formula in Section 38.4, Natural shall

reduce Supply Realignment Costs by an interest factor applied to

such excess equal to its overall after-tax rate of return last

approved in a final Commission order no longer subject to appeal.

For the purposes of this subsection (a)(3), the term "cumulative"

shall refer to cumulative costs and cumulative collections from the

Initial Effective Date, including interest accruals for all prior

quarters. Interest utilizing the rates set out above shall be

calculated for each quarter based on the average of the ending

cumulative balance of the quarter and the ending cumulative balance

of the prior quarter.

(4) In the event that Natural has based its

determination of any part of the amount allocated to Natural

Customer Group members on estimates in the reconciliation hereunder,

Natural shall prepare a further reconciliation once the outstanding

obligation has been fully discharged, Natural shall make refunds,

including applicable interest, consistent with subsection (a)(3) if

the actual costs incurred were less than such estimates, to the

extent that use of the actual amounts incurred in lieu of the

estimates would have resulted in a refund in the original

reconciliation. If more than one item of Supply Realignment Costs

has been estimated in this manner, Natural shall perform a separate

reconciliation from time to time as each such item is discharged.