Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

Effective Date: 07/10/2000, Docket: RP00-162-000, Status: Effective

Fourth Revised Sheet No. 291 Fourth Revised Sheet No. 291 : Superseded

Superseding: Third Revised Sheet No. 291

GENERAL TERMS AND CONDITIONS

(Continued)

18.2 Annual Charge Adjustment Provision (ACA)

(a) Purpose

Annual charges are assessed Gas pipelines by the

Commission under Part 382 of the Commission's

Regulations prior to each fiscal year in order to

cover the cost of the operation of the FERC. For the

purpose of recovering such charges assessed Panhandle

by the Commission, this Section 18.2 establishes

pursuant to Section 154.402 of the Commission's

Regulations an ACA Surcharge to be applicable to

quantities transported under Panhandle's Rate

Schedules FT, EFT, SCT, IT, EIT, LFT and HFT. This

ACA Surcharge is in addition to any amounts otherwise

payable to Panhandle under said Rate Schedules.

(b) Basis of the ACA Unit Charge Rate

The ACA Unit Charge Rate shall be that increment,

adjusted to Panhandle's measurement base (Dekatherm)

and pressure base, if required, which has been

approved by valid Commission Orders approving an

annual charge unit rate.

The ACA Surcharge or any subsequent changes in such

surcharge shall be filed by Panhandle at least thirty

(30) Days prior to the proposed effective date unless

for good cause shown a lesser notice period is

allowed by valid Commission Orders or the

establishment by the Commission of the annual charge

unit rate for a particular fiscal year prohibits

Panhandle from making a timely filing. The proposed

effective date of filings pursuant to this subsection

shall be the effective date prescribed by the

Commission. Such filing shall become effective

without suspension or refund obligation.