Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

Effective Date: 12/31/9999, Docket: RP99-480-022, Status: Accepted

Original Sheet No. 121 Original Sheet No. 121

STATEMENT OF NEGOTIATED RATES 1/ 2/

Customer Name: PSEG Power, LLC

Service Agreement: Contract No. 910611

Term of Negotiated Rate: The term of this negotiated rate ("Negotiated Rate Term") commences on

the Service Commencement Date (as defined in the Precedent Agreement) of Contract No. 910611 and

continues for a period of ten (10) years thereafter. Texas Eastern and Customer agree that

Contract No. 910611 is a ROFR Agreement and will remain a ROFR Agreement following the end of

the Negotiated Rate Term.

Rate Schedule: FT-1, TIME II Project

MDQ: 50,000 dth/d

Reservation Rate: Customer shall pay a negotiated reservation rate of $19.7709 per Dth, per

month ("Negotiated Reservation Rate") of Customer's MDQ under Contract No. 910611 during the

Negotiated Rate Term.

Usage Rate: The usage rate to be paid by Customer under Contract No. 910611 during the

Negotiated Rate Term shall be zero. Customer shall also pay the applicable Annual Charge

Adjustment ("ACA"), Applicable Shrinkage Adjustment ("ASA") charges and other charges/surcharges

applicable to Customer's Contract No. 910611 under Rate Schedule FT-1. Texas Eastern shall

apply the ASA charge for service under Contract No. 910611 as such charge may change from time

to time in accordance with the Commission approved mechanism (if any) for tracking such amounts,

and Customer shall pay Texas Eastern for all such ASA charges. Notwithstanding the foregoing,

if the applicable ASA charge for service under Contract No. 910611 (as calculated based upon the

Commission approved ASA methodology and/or application of any Commission approved tracking

mechanism) is equal to or greater than 3.6%, then Customer shall pay Texas Eastern an ASA charge

of 3.6% for all gas quantities up to Customer's MDQ transported from the Primary Receipt

Point(s) to the Primary Delivery Point(s) ("Primary Incremental Transportation Path") specified

in Contract No. 910611, or from a receipt point(s) to a delivery point(s) within the Primary

Incremental Transportation Path. Further, for transportation service from a receipt point(s) or

to a delivery point(s) outside of the Primary Incremental Transportation Path and/or for

quantities above Customer's MDQ, Customer shall pay Texas Eastern, for all gas quantities

transported, an ASA charge which is equal to the applicable ASA charge for service under

Contract No. 910611 (as calculated based upon the Commission approved ASA methodology and/or

application of any Commission approved tracking mechanism).

Primary Receipt Point: M&R 70215, Texas Gas - Lebanon, OH, Warren Co., OH.

Primary Delivery Point: (1) M&R 70128, Linden, Union Co., NJ: MDDO= 10,000 dth; (2) M&R 71196,

Bound Brook, Somerset Co., NJ: MDDO= 5,000 dth: (3) M&R 71207, Basking Ridge, NJ (thru 71078)

"Bernards" Somerset Co., NJ: MDDO= 15,000 dth; (4) M&R 71208, Morristown, NJ (thru 71078) Morris

Co., NJ: MDDO= 5,000 dth: (5) M&R 72944, Jamesburg, Middlesex Co., NJ: MDDO= 15,000 dth.

Recourse Rate(s): The Recourse Rate(s) applicable to this service is the maximum rate(s) stated

in Texas Eastern's currently effective FERC Gas Tariff for Rate Schedule FT-1, TIME II Project.

FOOTNOTES:

1/ This negotiated rate transaction does not deviate in any material respect from the applicable

form of service agreement set forth in Texas Eastern's FERC Gas Tariff.

2/ The negotiated rate is applicable for receipts and deliveries at any receipt and delivery

point on Pipeline's system within each applicable zone.