Northwest Pipeline Corporation

First Revised Volume No. 1-A

Effective Date: 04/01/1993, Docket: RP93- 5-000, Status: Suspended

Second Revised Sheet No. 437 Second Revised Sheet No. 437 : Suspended

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.