Carnegie Interstate Pipeline Company

Original Volume No. 1

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Effective Date: 01/01/1995, Docket: CP93-552-003, Status: Effective

Original Sheet No. 43 Original Sheet No. 43 : Effective

Superseding: Original Sheet No. 43

GENERAL TERMS AND CONDITIONS

(Continued)

2. (Continued)

(n) The term "month" shall mean the period beginning

on the first "day" of the calendar month and ending

at the same hour on the first "day" of the next

succeeding calendar month.

(o) Except as specifically provided in Section

9.3(e), the term "Net Present Value" shall mean an

amount determined in accordance with the following

calculation:

[exp(-i x t0) - exp(-i x t1)]

D x V x 12 x

_________________________________________

i

where,

D = the monthly demand charge per unit of

quantity;

V = the quantity;

i = the discount rate, which shall be

CIPCO's overall rate of return as established in

CIPCO's then most recent rate case;

t0 = the start of the period bid, in years;

t1 = the end of the period bid, in years.

(p) The term "quantity of gas" shall mean the number

of units of gas expressed in dekatherms unless

otherwise specified.

(q) The term "Releasing Shipper" shall mean any

Customer that releases firm capacity in accordance

with Section 10 of the General Terms and Conditions

of this FERC Gas Tariff. A Secondary Releasing

Shipper as defined in Section 10.2(b)(3) shall be a

Releasing Shipper for the purposes of Section 10.

(r) The term "Total Heating Value" shall mean the

number of British Thermal Units evolved by the

complete combustion with air, at constant pressure,

of one anhydrous (dry) cubic foot of gas under a

pressure of 14.73 psia and a temperature of 60ø

Fahrenheit and when the products of combustion are

cooled to the initial temperature of the gas and air

and the water formed by combustion is condensed to

the liquid state.