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. 133 Original Sheet No. 133 : Effective

Superseding: Original Sheet No. 133

GENERAL TERMS AND CONDITIONS

(Continued)

31.2 Gas Supply Realignment Costs

(a) Gas supply realignment costs are those

costs attributable to realigning CIPCO's gas

supply contracts as permitted by FERC Order No.

636.

(b) CIPCO shall have the right to make

limited filings with the FERC under Section 4 of

the Natural Gas Act, effective on October 1,

1993, and quarterly thereafter, to recover any

gas supply realignment costs actually incurred

by the end of the quarter preceding the filing

and which are known and measurable, plus

applicable interest.

(1) Ninety percent (90%) of the

FERC-jurisdictional portion of such costs

shall be charged and collected by means of

a GSR Demand Surcharge per MDTQ allocated

to CIPCO's Customers receiving service

under Rate Schedule FTS, based on the

proportion each such Customer's MDTQ bears

to the sum of all such Customers' MDTQs.

(2) Ten percent (10%) of the

FERC-jurisdictional portion of such costs

shall be reflected in revised rates for

service under Rate Schedule(s) ITS and IGS

which shall be designed to recover such

costs over the following twelve (12) month

period.

(c) Any gas supply realignment costs

actually incurred and recovered from Customers

receiving service under Rate Schedule FTS but

subsequently required by the FERC to be refunded

shall be refunded, together with applicable

interest calculated pursuant to Section

154.67(c) of the FERC's Regulations, to such

Customers within sixty (60) days after the date

of a final FERC order requiring such refunds

based on the proportion each Customer's MDTQ

bears to the sum of all such Customers' MDTQs

for the time period during