Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

Effective Date: 03/14/2010, Docket: RP10-375-000, Status: Effective

Fifth Revised Sheet No. 615 Fifth Revised Sheet No. 615

Superseding: Fourth Revised Sheet No. 615

GENERAL TERMS AND CONDITIONS

(Continued)

15. PERIODIC RATE ADJUSTMENTS

Periodically rates and charges under Pipeline's FERC Gas Tariff shall be adjusted to reflect

changes in Pipeline's expenditures for electric power, research and development, the Gas

Research Institute, the Annual Charge Adjustment and the Applicable Shrinkage Adjustment.

Such expenditures shall include both expenditures chargeable to operations as well as

expenditures includable in rate base. Pipeline and Customer recognize that Pipeline will

from time to time experience changes in costs related to providing service under this FERC

Gas Tariff, including, but not limited to, changes in the cost of labor, benefits, materials

and supplies, taxes, required rate of return, costs associated with the resolution of past

disputes or outstanding uncertainties concerning amounts owed by Pipeline or Customer or

attributable to Pipeline or Customer, and costs generated by decisions of the Commission, the

courts or by an arbitration panel or other body having jurisdiction over the Pipeline.

Pipeline hereby notifies Customers that it may be appropriate, equitable and consistent with

cost responsibility to allocate such costs among Customers based on or taking into account

past period factors, such as contract demand levels, purchases or other factors related to a

prior period of time. Pipeline hereby notifies Customers that Pipeline shall have the right

from time to time to make rate change filings which may include such costs and utilize an

allocation methodology based in whole or in part on factors related to past periods.

Customer shall have the right to intervene and protest any such filing.

15.1 Electric Power Cost (EPC) Adjustment

(A) Purpose:

This Section 15.1 provides a mechanism by which changes in electric power costs

used for the operation of transmission compressor stations with electric motor

prime movers can be reflected in Pipeline's jurisdictional rates.

(B) Procedure for Changing Jurisdictional Rates:

In accordance with the following procedure, rates and charges for storage and

transportation service under Rate Schedules CDS, FT-1, MLS-1, SCT, IT-1, SS, SS-

1, and those applicable Rate Schedules listed on the Summary of Rates of

Pipeline's First Revised Volume No. 2 (hereinafter EPC Rate Schedules) shall be

adjusted to reflect changes in Pipeline's expenditures for electric power.

(1) Electric Power Costs (EPC)

Electric Power Costs shall include all charges payable to others for the

purchase of electric power used for the operation of transmission

compressor stations with electric motor prime movers.