CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 01/01/1996, Docket: RP94- 96-016, Status: Effective

First Revised Sheet No. 359 First Revised Sheet No. 359 : Superseded

Superseding: Substitute Original Sheet No. 359

GENERAL TERMS AND CONDITIONS

Transition Cost Adjustments

3. Pipeline shall recover these Stranded Costs, less

1.38 percent allocated to Rate Schedule IT

customers in Pipeline's base rates, through a

surcharge on all Part 284 transportation

determined by averaging the following two

surcharges: (1) a surcharge determined by using

billing determinants that include 100 percent of

Part 284 FT and FTNN billing determinants,

excluding FT-GSS and FTNN-GSS billing

determinants; and (2) a surcharge determined by

using billing determinants that include 100

percent of Part 284 FT and FTNN billing

determinants, including FT-GSS and FTNN-GSS

billing determinants. The surcharge shall be

collected from Pipeline's Part 284 customers over

100 percent of the FT and FTNN reservation

billing units and 42 percent of the FT-GSS and

FTNN-GSS reservation billing units.

4. Pipeline shall be entitled to file revised tariff

sheets to become effective on August 1 of each

year, in accordance with this Section 18.2.A., to

revise the Stranded Cost surcharge set forth in

Appendices A and B of the RP94-96 Stipulation.

Such filings will be limited Section 4 rate

changes that will be made no less than 30 days

prior to the proposed effective date. Each

annual filing shall be accompanied by supporting

workpapers showing the principal amount of the

Stranded Costs, the estimated and actual interest

accrued on this principal at the FERC interest

rate, any adjustments thereto, the billing

determinants and the calculation of the unit

surcharges to be applied to the reservation

charges. The surcharges shall be designed to

collect a principal amount of $4,282,662 in

stranded facility costs, plus actual interest at

the FERC rate, over the reservation charge

billing units that will be in effect during the

five-year amortization period.

B. Stranded Account No. 858 Costs.

1. In the event Pipeline's existing Transportation

Cost Rate Adjustment, Section 15, above, is