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. 518 Original Sheet No. 518 : Pending

GENERAL TERMS AND CONDITIONS

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38.11 COLLECTION OF UNRECOVERED SUPPLY REALIGNMENT COSTS

(a) Natural has net underrecoveries of approximately

$22.9 million in Supply Realignment Costs, resulting from costs

allocated to Rate Schedule ITS but not recovered from ITS Shippers

netted against recoveries from firm Shippers, as of December 1,

1998. To collect this underrecovery, the following charges will be

instituted during the Extended Amortization Period:

(1) A maximum Demand Surcharge of up to $0.3600

for the Market Zone and up to $0.0700 for the Production Zone, to

be assessed where contractually permitted on each firm contract

under Rate Schedules FTS and FFTS; provided, however, that no such

charge shall apply if on such contract or its predecessor, the

Shipper has paid on the aggregate the maximum amount of Supply

Realignment Costs assessable under Sections 38.6(c) and 38.6(d)

hereof, which is equal to $3.12 times forty-eight (48) months times

the contract MDQ; and, provided further, that such a surcharge

shall only apply to the contracts of the Natural Customer Group or

Other Consenting Parties to the extent such contracts represent

contract demand in excess of the aggregate firm contract demand on

Natural in effect for such customer as of December 1, 1993, and no

charge hereunder shall apply to any G Customer if inconsistent with

Section 38.5(a)(3). The charge will become effective on December 1,

1998.

(2) Natural shall incorporate in its maximum rate

under Rate Schedule ITS an amount attributable to Supply

Realignment Costs equal to $0.0012 per Dth for Midwest Zone

deliveries and $0.0002 for Production Zone deliveries. The

adjustment to ITS rates hereunder will become effective on December

1, 1998.

(b) The charges under this Section 38.11 are

discountable to zero. The charges under this Section 38.11 shall

terminate on the earliest of: (1) the full collection hereunder by

Natural of all Supply Realignment Costs, applying the attribution

rules specified in Section 38.10(b); (2) the full collection by

Natural of the amount of net underrecoveries identified in

subsection (a) hereof, applying the attribution rule specified in

Section 38.10(b)(2); or (3) November 30, 2001.