Portland General Electric Company

Original Volume No. 1

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

Original Sheet No. 91 Original Sheet No. 91 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19. RECEIPT AND DELIVERY FACILITIES (Continued)

19.4 Existing Facilities. If Transporter has previously paid for all

or a portion of Receipt Point or Delivery Point facilities under a

facilities agreement with Shipper, Shipper will, nevertheless,

promptly pay Transporter for Transporter's remaining net book value of

such facilities, including any related income taxes, when either of

the following events occurs: (1) Transporter's ability to fully

recover such costs is denied in any Section 4 or Section 5 rate

proceeding, or (2) Shipper permanently ceases operations at the

end-use point or Receipt Point adjacent to where the facilities were

installed.

19.5 Waiver of Facilities Reimbursement Policy. Transporter reserves

the right to seek a waiver of the foregoing facilities reimbursement

policy, for good cause shown, during any proceeding before the

Commission instituted under Section 7 of the Natural Gas Act. Nothing

in this policy statement will require Transporter to file an

application for a certificate of public convenience and necessity

under Section 7(c) of the Natural Gas Act or will prohibit Transporter

from contesting an application for service filed pursuant to Section

7(a) of the Natural Gas Act.

19.6 In addition to the above requirements, Portland General will agree

to construct a new interconnect or modify an existing interconnect on the

following terms:

(a) The construction of the new interconnect will not create any

significant operational problems for Portland General;

(b) The proposed interconnect will not adversely affect the

rendition of existing service or adversely alter the operation of

the pipeline system;

on the Portland General system; provided, however, that Portland

General may not deny a customer's request for specific placement

of the interconnect without adequate operational, environmental,

or legal jurisdiction;

(d) In order to properly and prudently design and size the new

interconnect, Portland General must be provided with reasonable and

reliable data concerning the interconnecting facilities, including

delivery pressures, and anticipated hourly, daily, monthly and

annual volume levels of the service that supports the new

interconnect and such other data as is reasonably required to

construct the interconnect facility.