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. 134 Original Sheet No. 134 : Effective

Superseding: Original Sheet No. 134

GENERAL TERMS AND CONDITIONS

(Continued)

which such costs were allocated. Any

gas supply realignment costs actually incurred

and recovered from Customers receiving service

under Rate Schedule(s) ITS and IGS shall be

credited, together with applicable interest

calculated pursuant to Section 154.67(c) of the

FERC's Regulations, to the gas supply

realignment costs to be included in the rates

for such services in the next quarterly filing.

(d) Within sixty (60) days after October 1

of each year, CIPCO shall file a report with the

FERC reflecting the aggregate amount of gas

supply realignment costs incurred and allocated

to be collected from Customers receiving service

under Rate Schedule(s) ITS and IGS during the

previous twelve (12) months, and the aggregate

amount of such costs deemed collected during the

previous twelve (12) months from such Customers.

CIPCO shall have the option at any time after

October 1, 1995, to file to recover any gas

supply realignment costs unrecovered through its

Rate Schedule(s) ITS and IGS rates, through an

alternate mechanism.

(e) CIPCO shall compare total revenues

received under Rate Schedule(s) ITS and IGS for

the twelve (12) month period prior to October 1

of each year, exclusive of products extraction

charge revenues, against the cost of service

allocated to be recovered under such Rate

Schedules, including applicable surcharges, and

variable costs incurred in providing such

services, and exclusive of costs allocated to be

recovered under such Rate Schedules in

accordance with Section 31.2(b)(2). To the

extent such total revenues exceed such cost of

service, CIPCO shall credit such excess revenues

against the gas supply realignment costs to be

recovered under such Rate Schedules, up to the

amount to be recovered under such Rate Schedules

determined in accordance with Section

31.2(b)(2).