CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 02/01/1999, Docket: RP97-406-021, Status: Effective

Fourth Revised Sheet No. 347 Fourth Revised Sheet No. 347 : Superseded

Superseding: Sub. Third Revised Sheet No. 347

GENERAL TERMS AND CONDITIONS

TCRA

additional filings, as necessary, to reflect periodic

changes in Transportation Costs. Pipeline shall include in

each filing of its Transportation Cost Rate Adjustment

computations showing the derivation of such Adjustment.

15.2 Calculation Period and Rate Determinants. The

Transportation Cost Calculation Period ("Calculation

Period") shall be the twelve-month period commencing with

the effective date of each of Pipeline's Transportation

Cost Rate Adjustment filings referenced in Section 15.1

above. The term "Rate Determinants" means the currently

effective Reservation and projected Usage billing units for

each of the Applicable Rate Schedules for the Calculation

Period.

15.3 Determination of Transportation Cost Rate

Adjustment.

A. Current Transportation Costs shall be the estimated

Reservation and Usage Transportation Costs for the

Calculation Period. The Current Transportation Rate

for each rate component of each Rate Schedule shall be

determined by dividing the Current Transportation

Costs by the applicable Rate Determinants. Cost

allocation and rate design will be done in a manner

that maintains Pipeline's then-effective cost

allocation and rate design, i.e., the cost allocation

and rate design that underlies Pipeline's rates which

have been either approved by the Commission or

accepted by the Commission to be effective subject to

refund.

B. The Account No. 858 Base Tariff Rate shall be set

forth on Pipeline's Sheet Nos. 31, 32, 33, 34, 35 and

36. Pipeline will file and make effective new Account

No. 858 Base Tariff Rates as part of Pipeline's future

general rate filings made under Section 4 of the

Natural Gas Act and shall bear the burden of proof on

the reasonableness of such Account No. 858 Base Tariff

Rates. The Stipulation and Agreement in Docket Nos.

RP97-406, et al., established Account No. 858 Base

Tariff Rates reflecting a cost level of $35,826,097.

C. The TCRA shall be the Account No. 858 Base Tariff

Rate, minus the Current Transportation Rate, plus any

Unrecovered Transportation Cost Surcharges, plus the

EPCA. The TCRA shall be set forth on Pipeline's rate

tariff sheets and shall be added to or subtracted from

the Account