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. 72 Original Sheet No. 72 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

13. OPERATING CONDITIONS (Continued)

of the days during which a Shipper fails to comply with an OFO for each

Dth of gas that does not comply. Transporter may in its reasonable

judgment waive on a nondiscriminatory basis penalties due to noncompliance

with an issued OFO. No penalties shall be assessed on Shipper for

noncompliance with an issued OFO when such OFO is due to force majeure

invoked by Transporter.

(f) Penalty Revenue Crediting. Transporter shall credit penalty revenues,

less reasonable administrative and operating costs, received by

Transporter pursuant to Section 13.13(e) during any month. Such credits

will be allocated to all firm capacity rights customers, except each

penalty revenue credit shall be allocated only to those customers who were

not assessed any such penalty in the month for which such penalty revenues

are to be credited. The credits will be allocated to the Specified

Customers pro rata in proportion to reservation revenue (total revenue,

net of credits from capacity releases as described in Section 20 of the

General Terms and Conditions, less volumetric charges and all surcharges)

received by Transporter from each and all of the Specified Customers for

each applicable month. Such revenue credits shall be reflected as a

credit billing adjustment to the next month's billings rendered after the

applicable month. In the event that such credit billing adjustments would

result in a credit total invoice to any Specified Customer, Transporter

will refund the credit billing adjustment to the Specified Customer in

cash within 15 days after determination of the amount of the credit due to

the Specified Customer.

(g) Shipper Not Liable. Shipper will not be liable for any

penalties which might otherwise be imposed by Transporter with respect

to any action taken by such Shipper in conformance with an OFO issued by

Transporter.

(h) Transporter Not Liable. Transporter will not be liable for any

damages, costs or expenses incurred as a result of an OFO.

(i) Reporting. Within ten (10) days after an OFO terminates,

Transporter will post a report containing information on the factors

that caused the OFO to be imposed and to be terminated.

13.15 Disaster Recovery Procedures. In the event of a disaster such

that Transporter's or Receiving Party's communication capability is not

available for confirmation and scheduling of gas receipts and

deliveries, nominations will remain in effect as confirmed for the most

current day, unless alternate emergency communication methods are

established.

13.16 Interconnect Balancing Agreements. Transporter may enter into and

operate pursuant to interconnect balancing agreements with other

pipelines or gas suppliers relating to operating procedures governing