Northwest Pipeline Corporation

First Revised Volume No. 1-A

Effective Date: 01/01/1993, Docket: RP91-166-019, Status: Effective

First Rev First Rev Sheet No. 437 First Rev First Rev Sheet No. 437 : Effective

Superseding: First Revised Sheet No. 437

GENERAL TRANSPORTATION TERMS AND CONDITIONS

(Continued)

19. SUPPLIER SETTLEMENT PAYMENT RECOVERY MECHANISM (Continued)

19.2 Definitions. (Continued)

(h) Interest Rate - The quarterly interest rate published

by the Federal Energy Regulatory Commission and

computed in accordance with Section 154.67(c) of its

regulations.

19.3 Determination of the Commodity SSP Surcharge. Transporter

shall determine the Commodity SSP Surcharge to be applicable

for the Total Recovery Period of April 1, 1989 through March

31, 1994, by the following procedure:

(a) The Commodity SSP Surcharge for the Total Recovery

Period shall be based upon the applicable percentage,

as defined in paragraph (c) of subsection 19.2 herein,

of the total SSP as defined in paragraph (b) of

subsection 19.2 herein. The Total Commodity SSP

Account balance at March 31, 1989 shall then be

divided by twenty (20), (the total number of calendar

year quarters within the total Recovery Period) to

obtain the initial surcharge rate and to assign equal

principal amounts to each quarterly recovery period.

Transporter shall then calculate a Commodity SSP

Surcharge to be effective each January 1, April 1,

July 1 and October 1 of the Total Recovery Period by

dividing (1) the total principal amount of the

Commodity SSP Account that is assignable to each

quarterly recovery period plus the applicable carrying

charges calculated pursuant to Section 154.67(c) of

the Commissions regulations by (2) one-fourth of the

total commodity billing determinants utilized in its

most recent rate case. Transporter shall adjust the

Commodity SSP Surcharge on each quarterly effective

date to reflect revisions to the appropriate interest

rate and to reflect additions to the Commodity SSP

Account from the previous quarter. The principal

portion of any additional SSP costs will be allocated

evenly among the quarterly recovery periods that

remain in the Total Recovery Period.