Portland General Electric Company

Original Volume No. 1

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

Original Sheet No. 78 Original Sheet No. 78 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

14. DETERMINATION OF DELIVERIES AND IMBALANCES (Continued)

(v) In addition to (iii) and (iv) above, for that part of

the unauthorized underrun imbalances not taken within the

72 hour period as set forth in Section 14.5(c), an amount

equal to two times the Index Price per Dth.

(e) Waiver. Transporter will waive all or a portion of the

daily unauthorized overrun and underrun charges provided in

Section 14.5(c) when Transporter fails to make Scheduled

Quantities available to point operators and Shippers, including

bumped parties, at the times specified in Section 13.1(a) for any

of the Nomination Cycles, provided that:

(i) Transporter was solely at fault for the failure to

make the Scheduled Quantities available; and

(ii) the affected party demonstrates that the failure to

provide Scheduled Quantities on a timely basis materially

impacted such party's ability to stay within its

Declared Entitlement levels.

The waiver will not apply (1) to gas that flowed more than one

hour after the start of the Gas Day if Scheduled Quantities are

made available prior to the start of the Gas Day or (2) to gas

that flowed more than one hour after Scheduled Quantities were

made available for nominations submitted during the Intraday 1 or

Intraday 2 Nomination Cycles.