Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

Effective Date: 10/01/1997, Docket: GT97- 71-000, Status: Effective

Second Revised Sheet No. 143 Second Revised Sheet No. 143 : Effective

Superseding: FIRST REVISED SHEET NO. 143

GENERAL TERMS AND CONDITIONS (Continued)

Transporter shall make an initial filing of an

adjustment under this article to coincide with the

effective date of the tariff revisions in Docket

No. RS92-27. On November 30 of each year

Transporter shall file with the Commission a

Transportation Cost Filing (the "Annual

Transportation Cost Filing") to provide for the

reconciliation under Paragraph (e)(4). The annual

Transportation Cost Filing shall include a Current

Transportation Cost Rate Adjustment (TCRA).

(a) Affected Rate Schedules

Affected Rate Schedules shall be Rate Schedules

FT-SG and FT. The Affected Rates are the demand

rates under Rate Schedule FT and the commodity

rate under Rate Schedule FT-SG.

(b) Filing of Transportation Cost Rate Adjustment

The effective TCRA under the Affected Rate

Schedules shall be shown in the Summary of Rates

and Charges in Transporter's effective tariff.

Each TCRA shall be effective on 30 days notice,

unless notice is shortened by the Commission.

Concurrent with each Annual Transportation Cost

Filing, Transporter shall include computations

showing the derivation of the TCRA.

The TCRA Calculation Period for each TCRA filing

shall be the twelve-month period commencing with

the effective date of that filing. The term

Billing Determinants, as used herein, shall refer

to the projected Demand and Commodity billing

units for the affected Rate Schedules for the TCRA

Calculation Period.

(d) Determination of Transportation Cost Rate

Adjustment:

(1) The Current Transportation Cost shall be the

Transportation Costs estimated to be

incurred by Transporter during the TCRA

Calculation Period. These costs shall be

classified to Demand.