Florida Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 09/01/1994, Docket: RP94-332-001, Status: Effective

First Revised Sheet No. 206 First Revised Sheet No. 206 : Superseded

Superseding: Original Sheet No. 206

GENERAL TERMS AND CONDITIONS

(continued)

C. Computation of Current Fuel Reimbursement Charge Percentage

The Current Fuel Reimbursement Charge Percentage shall be determined

semi-annually by dividing the actual fuel usage and any lost and

unaccounted for gas, by the actual quantity of gas delivered by

Transporter for the account of Shippers under Rate Schedules FTS-1,

SFTS, PTS-1, PRS or ITS-1, excluding quantities recorded in

Transporter's Western Division Backhaul, Pooling and Fuel Expempt

Quantities. For the purpose of this computation, actual fuel usage

and lost and unaccounted for gas and actual quantity of gas delivered

by Transporter shall be those volumes related to the six month period

commencing one year prior to the effective date of the Fuel

Reimbursement Charge Adjustment filing. Transporter may file for

adjustments to actual fuel usage and lost and unaccounted for gas or

actual quantity of gas delivered to provide for known and measurable

changes and to the extent Transporter proposes such adjustments,

Transporter shall include supporting workpapers.

D. Computation of the Initial Fuel Reimbursement Charge Percentage

The Initial Fuel Reimbursement Charge Percentage shall commence on

the Effective Date of this tariff sheet and shall remain in effect

until the next Effective Date of Adjustment. The Initial Fuel

Reimbursement Charge Percentage shall be based only on the Current

Fuel Reimbursement Charge Percentage set forth in Section 27C and

shall not include an Annual Fuel Surcharge.

E. Computation of the Annual Fuel Surcharge

1. The Annual Fuel Surcharge shall be computed by dividing the

balance four (4) months prior to January 1 of the Deferred Fuel

Account by the estimated quantity of gas delivered by

Transporter under Rate Schedules FTS-1, SFTS, PTS-1, PRS, and

ITS-1 for the Recovery Period.

2. The Recovery Period for the Annual Fuel Surcharge shall be the

twelve (12) billing months beginning January 1.

3. Transporter shall maintain a Deferred Fuel Account with

appropriate subaccounts, beginning with the effective date of

this Section 27. For each billing month, the applicable

subaccounts shall be increased or decreased for a positive or

negative change for the billing month.