East Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 08/01/1998, Docket: RP98-350-000, Status: Effective

Third Revised Sheet No. 11 Third Revised Sheet No. 11 : Superseded

Superseding: Second Revised Sheet No. 11

FT-A RATE SCHEDULE

FIRM TRANSPORTATION SERVICE

5. FUEL AND LOSSES

Shipper shall furnish the quantity of gas required for fuel and losses associated with

rendering transportation service pursuant to this Rate Schedule. GISB Standard 1.3.16

(Version 1.2) states: Where fuel reimbursement is in kind, the standard fuel

calculation mechanism, as this is related to the nomination process, should be (1-

fuel%/100) multiplied by receipt quantity = delivery quantity. In accordance with this

GISB Standard, the quantity of gas retained by Transporter for fuel and losses shall

equal the quantity of gas tendered at the receipt point multiplied by the applicable

fuel and loss retention percentage shown on the effective Tariff Sheet No. 4 of

Transporter's effective Tariff. Once each calendar year, Transporter shall have the

right to file with the Commission to change the quantity of gas required for fuel and

losses based on system average fuel and loss requirements.

6. MONTHLY BILL

The Monthly Bill for service shall be equal to:

(a) Reservation Charge: A reservation rate determined under Section 4.1 multiplied by

the Transportation Quantity as specified in the FT-A Agreement; however,

consistent with the Stipulation and Agreement in Docket No. RP90-111 and approved

by the Commission on October 2, 1991, for Shippers that meet the requirements of

subsections (i) - (iii) below, beginning on the Implementation Date and continuing

until November 30, 1996, the reservation charge shall be determined by multiplying

the rate specified under Section 4.1 hereof by an amount equal to the greatest

number of dekatherms delivered under the Shipper's FT-A Agreement in any one day

during the twelve month period ending with the billing month but which shall not

exceed the Transportation Quantity set forth in the Shipper's FT-A Agreement.

In order to be eligible for the adjusted reservation charge set forth in the preceding

paragraph, a Shipper must:

(i) have an effective FT-A Agreement with Transporter; and

(ii) have been purchasing gas from Transporter pursuant to Transporter's former G Rate

Schedule as of April 30, 1990; and

(iii) not have received Authorized Overrun Service from Transporter, Supplemental Winter

Service from Transporter, any other storage service or gas not delivered through

Transporter's system from April 30, 1990 until the Implementation Date.