Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 01/01/1994, Docket: TM94-3-28-001, Status: Effective

Substitute First Revised Sheet No. 290 Substitute First Revised Sheet No. 290 : Superseded

Superseding: Original Sheet No. 290

GENERAL TERMS AND CONDITIONS

(Continued)

measurement basis (dekatherms), which has been

approved by Federal Energy Regulatory Commission

Orders approving GRI's RD&D expenditures.

(2) As to discounted transactions, if the discounted

rate is less than the GRI Funding Unit,

Panhandle shall remit that portion of the GRI

Funding Unit actually collected. For purposes

of discounted transactions, any GRI Funding Unit

shall be considered to be the first component of

rates discounted.

(3) The applicable GRI Funding Unit shall be

determined for high load factor firm shippers

(load factor exceeding fifty (50) percent) and

low load factor firm shippers (load factor of

fifty (50) percent or less). The shipper's load

factor for each firm service agreement shall be

determined annually. The load factor shall be

calculated from actual firm volumes using the

most recent twelve (12) months of volumes

available (including volumes from assignment of

service rights pursuant to Section 15 herein) as

a percent of firm annual contract entitlements.

The Shipper's load factor determination shall

remain in effect for the ensuing calendar year.

For firm shippers without a historical load

factor, for purposes of the GRI Funding Unit,

the GRI Funding Unit shall be assessed each

month based on actual throughput for each prior

month of service until a twelve (12) month

history is established.

The initial GRI Funding Unit or any subsequent

changes in such Funding Unit shall be filed by

Panhandle at least thirty (30) Days prior to the

proposed effective date.

The proposed effective date of filings pursuant to

this subsection shall be the effective date

prescribed by the Commission. Any such filing shall

not become effective unless it becomes effective

without suspension or refund obligation.