Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 06/01/1993, Docket: RS92- 11-009, Status: Effective

Original Sheet No. 616 Original Sheet No. 616 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

15. PERIODIC RATE ADJUSTMENTS

Periodically rates and charges under Pipeline's FERC Gas Tariff shall

be adjusted to reflect changes in Pipeline's expenditures for electric

power, the Transition Cost Recovery Mechanism, research and development,

the Gas Research Institute, the Annual Charge Adjustment and the Applicable

Shrinkage Adjustment. Such expenditures shall include both expenditures

chargeable to operations as well as expenditures includable in rate base.

Pipeline and Customer recognize that Pipeline will from time to time

experience changes in costs related to providing service under this FERC

Gas Tariff, including, but not limited to, changes in the cost of labor,

benefits, materials and supplies, taxes, required rate of return, costs

associated with the resolution of past disputes or outstanding

uncertainties concerning amounts owed by Pipeline or Customer or

attributable to Pipeline or Customer, and costs generated by decisions of

the Commission, the courts or by an arbitration panel or other body having

jurisdiction over the Pipeline. Pipeline hereby notifies Customers that it

may be appropriate, equitable and consistent with cost responsibility to

allocate such costs among Customers based on or taking into account past

period factors, such as contract demand levels, purchases or other factors

related to a prior period of time. Pipeline hereby notifies Customers that

Pipeline shall have the right from time to time to make rate change filings

which may include such costs and utilize an allocation methodology based in

whole or in part on factors related to past periods. Customer shall have

the right to intervene and protest any such filing.

15.1 Electric Power Cost (EPC) Adjustment

(A) Purpose:

This Section 15.1 provides a mechanism by which changes in

electric power costs used for the operation of transmission

compressor stations with electric motor prime movers can be

reflected in Pipeline's jurisdictional rates.

(B) Procedure for Changing Jurisdictional Rates:

In accordance with the following procedure, rates and

charges for storage and transportation service under Rate

Schedules CDS, FT-1, SCT, PTI, IT-1, TS-2, SS, SS-1, CTS,

and those applicable Rate Schedules listed on Sheet Nos. 1J

and 1K of Pipeline's Original Volume No. 2 (hereinafter EPC

Rate Schedules) shall be adjusted to reflect changes in

Pipeline's expenditures for electric power.

(1) Electric Power Costs (EPC)

Electric Power Costs shall include all charges payable

to others for the purchase of electric power used for

the operation of transmission compressor stations with

electric motor prime movers.