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. 75 Original Sheet No. 75 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

14. DETERMINATION OF DELIVERIES AND IMBALANCES (Continued)

Transporter may in its reasonable judgment waive any penalties

hereunder and shall waive any penalties due to Receiving Party/Shipper

Imbalances which result from errors made by Transporter or which result

from force majeure invoked by Transporter.

14.3 Receiving Party Imbalances and Penalties. If Receiving Party's

cumulative monthly Receiving Party Imbalance is more than 500 Dth or 2

percent, above or below total confirmed nominations for that month,

whichever is greater, Transporter shall notify Receiving Party that

Receiving Party Imbalances exceed allowed tolerances. Such notice shall

be provided by the fifteenth day of the month following the month service

is rendered. Transporter will notify Receiving Party of any Receiving

Party Imbalances, and specify whether a penalty situation exists.

Receiving Party will be given 15 non-entitlement days from the date of

notification by Transporter to eliminate any Receiving Party Imbalances.

If at the end of such 15 non-entitlement day period Receiving Party

remains in a penalty situation, Receiving Party shall pay a penalty to

Transporter equal to the greater of $25.00/Dth or two times the first of

the month price at Sumas, Washington for the month following the imbalance

month on the imbalance over the greater of 500 Dth or 2%, as described

above. This penalty will only be imposed if Transporter's system integrity

is imperiled and Transporter has given notice of such system imperilment to

Receiving Parties. Receiving Party Imbalances shall be

cumulative and Receiving Party must specifically adjust nominations as

necessary to eliminate such imbalances.

14.4 Receiving Party Imbalance Netting. Upon Shipper's request,

Transporter will net Receiving Party Imbalances with Receiving Party

Imbalances, and Receiving Party Imbalances with Shipper Imbalances (as

defined in Section 14.7 hereof), between a Shipper's Service Agreements,

provided that Shipper will reimburse Transporter for any difference in

transportation revenues that may result from such netting. In any case,

a Shipper netting a positive Shipper Imbalance (Transporter owes Shipper)

for a negative Receiving Party Imbalance (Receiving Party owes

Transporter) will be subject to volumetric transportation charges for the

delivery of that imbalance quantity. Netting between a Shipper's Service

Agreements, when offsetting a Receiving Party Imbalance with a Shipper

Imbalance, will be limited to a maximum quantity equal to the smallest

imbalance under the agreements being netted. If a Receiving Party fails

to eliminate Receiving Party Imbalances within the allowed period

referenced above, in addition to any penalties applied hereunder,

Transporter shall have the right to adjust nominations, receipts or

deliveries in order to achieve a balance. Receiving Party imbalances may

also be eliminated by trading imbalances between Service Agreements with

third parties as set forth in Section 14.9.