Florida Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 16-003, Status: Effective

Original Sheet No. 196 Original Sheet No. 196 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

Order 636 Mechanism and shall mean those costs defined

in subsections 24B(1)(d)(i), (ii), and (iii) (i.e., the

principal amount of transition costs and all carrying

charges associated with such principal amount) which are

incurred as the result of promulgation of Commission

Order No. 636, et seq. The term Recoverable 636

Transition Costs shall also mean any Transition Costs of

the kind described in subsections 24B(1)(d)(i), (ii) and

(iii) which Transporter initially files to recover under

the Order 636 Mechanism but which are subsequently

determined, pursuant to the provisions of subsection

24B(2) below, to be Recoverable Transition Costs (to the

extent such costs have been collected pursuant to the

Order 636 Mechanism).

g. Unrecoverable Transition Costs. Unrecoverable

Transition Costs shall mean the following:

(i) twenty-five percent (25%) of the difference

between the Transition Costs defined in

subsection 24B(1)(d)(i) incurred on or before

July 1, 1992, and $60 million; and

(ii) twenty-five percent (25%) of the Transition Costs

included in subsections 24B(1)(d)(i) and (ii), in

excess of the Absorption Threshold (defined

below);

h. Absorption Threshold. Absorption Threshold shall be an

amount of Transition Costs included in subsections

24B(1)(d)(i) and (ii) equal to $160 million.

i. Upstream Costs. Upstream Costs shall mean those costs

described in subsection 24B(1)(d)(ii) above.

j. Subject Gas Purchase Agreements. Subject Gas Purchase

Agreements shall mean those Gas Purchase Agreements in

effect between Transporter and its suppliers on January

13, 1989.

k. Subject Entitlement. Subject Entitlement shall be the

firm entitlement subject to the reservation surcharges

described in this Section 24 and shall mean all firm

transportation