Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

Effective Date: 08/01/2010, Docket: RP10-948-000, Status: Effective

Third Revised Sheet No. 296 Third Revised Sheet No. 296

Superseding: Second Revised Sheet No. 296

GENERAL TERMS AND CONDITIONS

(continued)

20. FUEL RETAINAGE QUANTITY (continued)

shall be debited (if the balance in said account

is a debit balance) and shall be credited (if the

balance in said account is a credit balance) for

a carrying charge, which shall be determined in

accordance with the requirements of Section

154.403(c)(7) of the Commission's regulations.

(d) Calculation of Surcharge or Refund. With each annual

filing hereunder Pipeline shall calculate surcharges

or refunds designed to amortize the net monetary value

of the balance in the FRQ Deferred Account at the end

of the previous accumulation period. The surcharge or

refund shall be based upon the allocation of the FRQ

Deferred Account balance at the end of the twelve

Month accumulation period over the actual throughput

during the twelve Month accumulation period. A

Customer's net debit or credit for the twelve Month

period shall be due and payable sixty Days after the

Commission's acceptance of the annual filing.

20.5 Procedure for Filing. At least thirty (30) Days prior to

the effective date of a change in the FRP hereunder.

Pipeline shall file with the FERC a revised Statement of

Fuel Retainage Percentages setting out the proposed change

and supporting workpapers showing the calculations

developing such proposal. Pipeline shall file annually to

revise the FRPs as provided in Section 20.3 herein and

surcharge or refund as provided in Section 20.4 herein

effective on November 1 of each year. Pipeline may file

interim proposals between annual filings subject to

approval by the Commission.