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. 523 Original Sheet No. 523 : Pending

GENERAL TERMS AND CONDITIONS

----------------------------

subsection (b), Natural shall reduce the balance in Account 188 by all

monies recorded in Account 495 applicable to the RD&D

expenditures, and shall increase or reduce such account balance, as

appropriate, by the deferred income taxes in Account 283 applicable to

RD&D expenditures. The rate of return used to determine the rate effect

of the rate base treatment of the balance in Account 188 shall be the

rate of return last allowed by the Commission during the previous three

year period. If there has been no such rate of return allowed during

the previous three-year period, then, in the absence of evidence

submitted to the contrary, the return utilized shall be the present

interest rate used for computing refunds as specified in Section

154.501(d) of the Commission's Regulations under the Natural Gas Act.

41.2 PROCEDURE FOR FILING

(a) Rate changes under this Section shall be computed

and filed not more frequently than semiannually. Any filing made

hereunder to increase Natural's rates shall meet the notice requirements

of Section 154.207 of the Commission's Regulations and shall be made at

least forty-five (45) days prior to the date on which any change(s) in

Natural's existing rates is to become effective. Simultaneously with

such filing, Natural shall furnish to the Commission, jurisdictional

customers, and interested State Commissions a report containing detailed

computations which clearly show the derivation of the proposed RD&D

Adjustment. The effect upon jurisdictional rates shall be determined by

computing the unit change (either an increase or a decrease) based upon

volumes of jurisdictional services for the twelve (12) month period

ending three (3) months prior to the effective date of such RD&D

Adjustment.

(b) Filings made under this Section shall include a

statement as to the anticipated scope and objective of the RD&D and

the relationship of such objective to the service for which the RD&D

Adjustment is to apply.

proposed effective date without suspension; provided that, except in the

case of rate adjustments based on expenditures approval pursuant to

Section 154.401 of the Regulations, any rate increase shall be subject

to reduction and to refund of any portion found after hearing to be

unjustified by a final and non-appealable Commission order.

(d) Natural shall not be required to reduce its rates

under this Section by an increment exceeding the aggregate increases

allowed hereunder.