CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 02/01/2000, Docket: RP00- 15-001, Status: Effective

Second Revised Sheet No. 350A Second Revised Sheet No. 350A : Superseded

Superseding: Sub. First Revised Sheet No. 350A

GENERAL TERMS AND CONDITIONS

TCRA

15.5 Unrecovered Transportation Cost Surcharges. Each

November 1, Pipeline shall adjust its rates either

positively or negatively to include a surcharge to

recover or return the balance in the applicable Account

Nos. 186 and 254 subaccounts as of the preceding June

30. Separate surcharges shall be determined for each

service and rate component. Such surcharges shall be

determined for each rate component of each of the

Applicable Rate Schedules by dividing the balance in

the applicable Account Nos. 186 and 254 subaccounts as

of the preceding June 30 by the Rate Determinants. In

addition, Pipeline will calculate the difference

between "Actual Transportation Costs" and "Current

Transportation Costs." "Actual Transportation Costs"

shall include: [i] all costs of transactions

identified in General Terms and Conditions Section 15.7

or successor transactions; [ii] reduced by any refunds

of Account No. 858 costs received for services rendered

after January 31, 2000 consistent with the cost

responsibility of CNG and its customers during the

refund period; and [iii] further reduced by revenues

received as a result of Account No. 858 transportation

capacity released. If Actual Transportation Costs are

less than Current Transportation Costs, then fifty

percent of any amount by which Actual Transportation

Costs are less than Current Transportation Costs shall

be returned to customers as an adjustment to the

Pipeline's Unrecovered Transportation Cost Surcharge.

15.6 Termination Provision.

A. At such time as the provisions of this

Section 15 are terminated, (i) any net credit

balance in the Account No. 186 subaccounts,

Unrecovered Transportation Costs, shall be

refunded to Customers or (ii) any net debit

balance shall be due and payable by Customers in a

separate surcharge to be collected over a one-year

period. Any net credit or debit balance remaining

at the termination of the one-year surcharge

period shall be (a) refunded or (b) due and

payable by Customers as a direct bill, as

appropriate. All refunds or payments to be made

under this Section shall be allocated based upon

the Reservation billing units on the date of

termination and Usage billing units for the

Applicable Rate Schedules for the twelve months

preceding the termination of this provision.

B. All Transportation Cost adjustments and

refunds as described in Section 15.4.B received by

Pipeline after the termination of this provision

will be handled as in Section 15.6.A.