Portland General Electric Company

Original Volume No. 1

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Effective Date: 12/03/2003, Docket: RP04- 48-000, Status: Effective

Original Sheet No. 11 Original Sheet No. 11 : Effective

RATE SCHEDULE FT-1

Firm Transportation

(Continued)

3. MONTHLY RATE(S) (Continued)

3.2 Additional Facility Reservation Surcharge: If additional

facilities other than those specified in Section 1(b) of this Rate

Schedule are required to permit continued service to a Shipper

under this Rate Schedule FT-1, in addition to all other applicable rates

stated in this Section 3, such Shipper (a) within 15 days of billing,

will reimburse Transporter for its full costs of constructing such

facilities or, (b) if mutually agreed, will pay a Facility

Reservation Surcharge. The Facility Reservation Surcharge will be

derived based on Transportation Contract Demand and the cost of

service attributable to any such incremental facilities prorated

over a period of time equal to or lesser than the term of the firm

transportation contract. The monthly Facilities Reservation Surcharge

will be the sum of the daily product of Shipper's Transportation

Contract Demand as specified in the executed Service Agreement and

the applicable Facility Charge specified in the Footnotes to Sheet

No. 4 of this Tariff.

3.3 Discounted Recourse Rates: Transporter reserves the right to

discount at any time the Recourse Rates for any individual Shipper

under any service agreement without discounting any other Recourse

Rates for that or another Shipper; provided, however, that such

discounted Recourse Rates will not be less than the Minimum

Currently Effective Rates set forth on Sheet No. 4 of this Tariff,

or any superseding tariff. Such discounted Recourse Rates may

apply to specific volumes of gas (such as volumes above or below a

certain level or all volumes if volumes exceed a certain level),

volumes of gas transported during specific time periods, and

volumes of gas transported from specific Receipt Points and/or to

specific Delivery Points, within specific corridors, or within other

defined geographical areas. A discounted reservation rate may be

computed by dividing the reservation revenues payable pursuant to a

volumetric formula by Shipper's Contract Demand. If Transporter

discounts any Recourse Rates to any Shipper, Transporter will file with

the Commission any required reports reflecting such discounts.