Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

Effective Date: 01/17/2010, Docket: RP10-244-000, Status: Effective

Fifth Revised Sheet No. 294 Fifth Revised Sheet No. 294

Superseding: Fourth Revised Sheet No. 294

GENERAL TERMS AND CONDITIONS

(continued)

20. FUEL RETAINAGE QUANTITY

20.1 General. Periodically rates and charges under Pipeline's

Tariff shall be adjusted to reflect changes in Pipeline's

expenditures such as the Fuel Retainage Quantity. The Fuel

Retainage Quantity ("FRQ") shall be determined by

multiplying Customer's receipts at the Point(s) of Receipt

by the Fuel Retainage Percentage ("FRP") except in the case

of (i) Backhauls or (ii) receipts and deliveries by

displacement at Pipeline's interconnection with Emera

Brunswick Pipeline Company Ltd. at the U.S.-Canada border

and receipts and deliveries by displacement at Pipeline's

interconnection with Maritimes & Northeast Pipeline Limited

Partnership at the U.S.-Canada border, in which case the

FRQ shall be zero. During the term of the Service

Agreements executed hereunder, Pipeline will periodically

track changes in its requirement to retain gas in-kind in

compensation for the quantities of Company Use Gas used to

provide service for Customers.

20.2 Fuel Retainage Percentage (FRP). The FRP shall be as

quantified pursuant to this Section 20 and as set forth in

the currently effective Statement of Fuel Retainage

Percentages of this Tariff. The FRP shall be subject to

adjustment hereunder for service provided pursuant to Rate

Schedules MN365, MN151, MN90, MNOP and MNIT. The FRP shall

be equal to the sum of (a) the effective Base FRP and (b)

any increment added pursuant to a flow order issued

pursuant to Section 10 of these GT&C.

(a) Specified Calendar Periods. FRPs shall be established

distinctly for the duration of two calendar periods as

follows: (i) winter period--November 1 through March 31,

and (ii) non-winter period--April 1 through October 31.

(b) Base FRPs. The Base FRPs are reflected on the

currently effective Statement of Fuel Retainage Percentages

of this Tariff for each specified calendar period.