Pacific Interstate Transmission Company

Original Volume No. 1

Effective Date: 10/01/1981, Docket: GT97- 67-000, Status: Effective

Original Sheet No. 8 Original Sheet No. 8 : Effective

RATE SCHEDULE CQS-1 (Continued)

(Contract Quantity Service)

4. COST OF SERVICE (Continued)

4.8 Adjustments: An addition or deduction, as the case may be, to Cost of

Service equal to the result of combining the following amounts pro-

perly included for the billing month:

4.81 A deduction equal to other revenues which relate to gas opera-

tions;

4.82 An addition equal to all costs associated with other revenues

which relate to gas operations referred to in Subsection 4.81

hereof, provided such costs are not otherwise includible in

computing Seller's Cost of Service pursuant to this Section 4;

4.83 An addition equal to the appropriate amortization of all

extraordinary deductions, as recorded in Account No. 435, which

relate to gas operations;

4.84 Additions or deductions, as required, reflecting adjustments of

accruals or deferrals with respect to tax, expense and income

accounts equal to the difference between accrued and deferred

amounts and adjusted for actual amounts, all of which shall be

given effect to in the month in which such adjustments or con-

clusive determinations or settlements of such actual amounts are

made;

4.85 An addition to compensate Seller for timing differences between

payments to Transporters and receipts from billings to Buyers.

(continued)