Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 10/01/1993, Docket: RS92- 12-003, Status: Effective

Original Sheet No. 265 Original Sheet No. 265 : Superseded

GENERAL TERMS AND CONDITIONS

14. TRANSITION COSTS AND EXIT FEES (Cont'd)

(d) Determination of Transportation Cost Rate Adjustment

(i) The Current Transportation Cost shall be the

Transportation Costs estimated to be incurred by WNG

during the TCRA Calculation Period. These costs shall

be classified to Demand.

(ii) The Current Transportation Cost Rates (Reservation (or

Demand) and Commodity) shall be determined by dividing

the Current Transportation Costs by the applicable

Billing Determinants under the Affected Rate Schedules

for the TCRA Calculation Period; provided that the

Initial Transportation Cost Rates shall be determined

on the basis of the applicable costs and billing

determinants reflected in WNG's rates in effect on the

date of filing. The Reservation (or Demand) Billing

Determinants for Rate Schedules STS(P), STS(M), SFT(P)

and SFT(M) shall be based on estimated Commodity

Billing Determinants and an imputed load factor equal

to the load factor in effect for the derivation of such

one-part rates.