Portland General Electric Company

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-550-000, Status: Effective

First Revised Sheet No. 41 First Revised Sheet No. 41 : Effective

Superseding: Original Sheet No. 41

GENERAL TERMS AND CONDITIONS

(Continued)

5. BILLING AND PAYMENT (Continued)

5.4 Failure to Pay Bills. Should Shipper fail to pay all of the

amount of any bill, when the same becomes due, Transporter shall have

the right to charge Shipper a late charge on the unpaid balance which

shall accrue on each calendar day from the due date at the rate

specified in Section 154.501(d) of the Commission's regulations. If

such failure to pay continues for thirty (30) days after payment is

due, Transporter, in addition to any other remedy it may have under the

Service Agreement, may: (1) discontinue transportation service for

self-implementing transactions without Commission approval, and (2)

after application to and authorization by the Commission suspend

further service until such amount is paid. However, if the invoice is in

dispute, shipper shall pay the portion not in dispute and provide

documentation identifying the basis for the dispute.

(NAESB WGQ Standard 3.3.19)

5.5 Right to Set Off Unpaid Amounts. In the event that Shipper does

not pay the full amount due in accordance with Section 5.3 hereof,

without prejudice to any other rights or remedies it may have,

Transporter shall have the right to withhold and set off payment of any

amounts of monies due by Transporter to Shipper, whether in connection

with the Service Agreement in dispute or otherwise, against any and all

amounts or monies due or owing by Shipper to Transporter for services

performed under the Service Agreement in dispute.

5.6 Disputed Statements and Prior Period Adjustments.

No imbalance penalty shall be imposed when a

prior period adjustment applied to the current period causes or

increases a current month penalty. (NAESB WGQ Standard 2.3.31)

Prior period adjustment time limits shall be 6

months from the date of the initial transportation invoice and 7

months from date of initial sales invoice with a 3-month rebuttal

period, excluding government-required rate changes. This

standard shall not apply in the case of deliberate omission or

misrepresentation or mutual mistake of fact. Parties' other

statutory or contractual rights shall not otherwise be diminished

by this standard. (NAESB WGQ Standard 3.3.15)