Portland General Electric Company

Original Volume No. 1

Effective Date: 08/01/2009, Docket: RP09-698-000, Status: Effective

Second Revised Sheet No. 27 Second Revised Sheet No. 27

Superseding: First Revised Sheet No. 27

GENERAL TERMS AND CONDITIONS

(Continued)

1. DEFINITIONS (Continued)

1.34 Monthly Allocation: The term used to describe the process where

the Allocating Party performs the allocation process at the end of the

monthly flow period. (NAESB WGQ Standard 2.2.4.)

1.35 Negotiated Rate: A rate or formula for computing a rate for Part

284 service which may be greater than, equal to or less than the Recourse

Rate, but which may not be less than the Minimum Currently Effective Rate

as set forth on Sheet No. 4. A Negotiated Rate must be

mutually agreed upon by Transporter and Shipper and may be based on a

rate design other than straight fixed-variable.

1.36 Netting is the term used to describe the process of resolving

imbalances for a Service Requester within an Operational Impact Area.

There are two types of Netting:

- summing is the accumulation of all imbalances above any applicable

tolerances for a Service Requester or agent,

- offsetting is the combination of positive and negative imbalances

above any applicable tolerances for a Service Requester or agent. (NAESB

WGQ Standard 2.2.3.)

1.37 Nomination: A Shipper’s specification of natural gas volumes to be

transported for a specified duration pursuant to an executed Service

Agreement.

1.38 Nominating Party: The person or party designated by Shipper to

communicate Shipper's nominations to Transporter.

1.39 Operational Balancing Agreement ("OBA"): "An OBA is a contract

between two parties which specified the procedures to manage operating

variances at an interconnect." (NAESB WGQ Standard 2.2.1.)

1.40 Operational Impact Area is the term used to describe a Transportation

Service Provider's designation of the largest possible area(s) on its system

in which imbalances have a similar operational effect. (NAESB WGQ Standard

2.2.2.)

1.41 Operational Flow Order ("OFO"): "An operational flow order is an

order issued to alleviate conditions, inter alia, which threaten or could

threaten the safe operations or system integrity, of the transportation

service provider's system or to maintain operations required to provide

efficient and reliable firm service. Whenever a Transportation Service

Provider experiences these conditions, any pertinent order should be

referred to as an Operational Flow Order." (NAESB WGQ Standard 1.2.6.)

1.42 Pacific Clock Time: Pacific Standard Time or Daylight Savings

Time in Beaver, Oregon, whichever is currently effective.

1.43 Package ID: "A package ID is a way to differentiate between

discrete business transactions." (NAESB WGQ Standard 1.2.5.)