CNG Transmission Corporation

Second Revised Volume No. 1

Effective Date: 01/05/1998, Docket: CP96-492-008, Status: Effective

Fourth Revised Sheet No. 346 Fourth Revised Sheet No. 346 : Superseded

Superseding: Sub. Third Revised Sheet No. 346

GENERAL TERMS AND CONDITIONS

FERC Annual Charge Adjustment

Such adjustment shall be the ACA unit charge, adjusted to

the Pipeline's pressure base and heating value, if

required, which is specified by the Federal Energy

Regulatory Commission each year to recover its costs for

its previous fiscal year. The Annual Charge Adjustment

shall be reflected on Sheet Nos. 31, 32, 33, and 35 of this

Tariff and applicable sheets in Volume No. 2 of Pipeline's

FERC Gas Tariff. By electing the FERC ACA unit charge

method of recovery, Pipeline hereby acknowledges its intent

not to recover any annual charges recorded in FERC Account

No. 928 in any general rate proceeding filed under Section

4(e) of the Natural Gas Act.

14.3 Filing Procedure. The initial Annual Charge Adjustment or

any subsequent changes in such assessment charge shall be

filed by the Company at least thirty (30) days prior to the

proposed effective date, unless, for good cause shown, a

lesser notice period and different effective date is

allowed by valid Commission order. The proposed effective

date of filings shall be October 1 of each calendar year.

15. TRANSPORTATION COST RATE ADJUSTMENT ("TCRA")

The rates and charges applicable to Rate Schedules FT,

FTNN, IT, GSS, GSS-II, MCS and any other service for which

Pipeline designs rates as a derivative of any of the above

stated Rate Schedules (the "Applicable Rate Schedules")

are subject to adjustment to reflect changes in

Transportation Costs, unrecovered fuel costs as

determined in Section 16, and electric power costs as

determined in Section 17. "Transportation Costs" are costs

incurred by Pipeline as described in Section 15.7 for the

Transmission and Compression of Gas by Others, Account No.

858, but shall not include costs that Pipeline recovers

pursuant to Section 18.2.B. of the General Terms and

Conditions of this Tariff.

15.1 Filing of Transportation Cost Rate Adjustment. The

effective Transportation Cost Rate Adjustment under the

Applicable Rate Schedules included in Pipeline's FERC Gas Tariff

shall be shown on Pipeline's Tariff Sheet Nos. 31, 32, 33, and 35

in this Volume No. 1, and other applicable tariff sheets. The

effective date of each Transportation Cost Rate Adjustment shall

be on November 1 and April 1 of each year. Pipeline shall also

be entitled to make