Texas Eastern Transmission, L P

Seventh Revised Volume No. 1

Effective Date: 11/16/2009, Docket: RP10-53-000, Status: Effective

Third Revised Sheet No. 616 Third Revised Sheet No. 616

Superseding: Second Revised Sheet No. 616

GENERAL TERMS AND CONDITIONS

(Continued)

(2) Current Unit EPC Change

The Current Unit EPC Change based on the Base Electric Power Cost Units

under Section 15.1(B)(5) hereof shall be computed as the difference

obtained by subtracting the Base Electric Power Cost Unit for each

applicable Zone, rate schedule, and incremental service from the quotient

obtained by dividing the estimated annual electric power costs as defined

in Section 15.1(B)(1) above for the applicable Zones, rate schedules, and

incremental services for the 12 Months beginning with the effective date

of the adjustment, allocated in accordance with the then currently

effective method in use for allocating Transmission Costs on Pipeline's

system, by the estimated demand and commodity units to be billed under the

applicable Zones, rate schedules, and incremental services under Section

15.1(B) for the same period. The Current Unit EPC Change for applicable

Zones, rate schedules, and incremental services will be rounded to the

nearest 1/100 of a cent for commodity rate adjustments and 1/1000 of a

dollar for demand adjustments. The Current Unit EPC change as determined

on the Base Electric Power Cost Units under Section 15.1(B)(5) hereof

shall be based on such change as determined with respect to the Base

Electric Power Cost Units under Section 15.1(B)(5) in such a manner that

historical rate design concepts shall be maintained.

(3) Deferred EPC Account

A Deferred EPC Account shall be maintained reflecting the under collection

or over collection of Electric Power Costs for each monthly billing

period. A separate sub-account shall be maintained, if necessary, for

each applicable incremental service. The Deferred EPC Account shall be

credited or debited as follows: Each Month all Electric Power Costs as

defined in Section 15.1(B)(1) above incurred by Pipeline shall be debited

to this account and all Electric Power Costs recovered by Pipeline shall

be credited to this account. Electric Power Cost recoveries will be

determined by multiplying the sum of the applicable Base Electric Power

Cost Unit plus the corresponding effective EPC Adjustment for each Zone

and rate schedule or applicable incremental service by the respective

monthly demand and commodity units to be billed. The Deferred EPC Account

shall be maintained in twelve-month accumulation periods, November-

October.

(4) Electric Power Cost (EPC) Surcharge Adjustments

The Electric Power Cost Surcharge Adjustments shall be computed for each

applicable Zone, rate schedule, and incremental service by dividing the

Deferred EPC Account Balance for such