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. 617 Original Sheet No. 617 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(2) Current Unit EPC Change

The Current Unit EPC Change based on the Base Electric Power

Cost Units under Section 15.1(B)(5) hereof shall be computed

as the difference obtained by subtracting the Base Electric

Power Cost Unit for each applicable zone and rate schedule

from the quotient obtained by dividing the estimated annual

electric power costs as defined in Section 15.1(B)(1) above

for the applicable zones and rate schedules for the 12 months

beginning with the effective date of the adjustment,

allocated in accordance with the then currently effective

method in use for allocating Transmission Costs on Pipeline's

system, by the estimated demand and commodity units to be

billed under the applicable zones and rate schedules under

Section 15.1(B)(5) for the same period. The Current Unit EPC

Change for applicable zones and rate schedules will be

rounded to the nearest 1/100 of a cent for commodity rate

adjustments and 1/1000 of a dollar for demand adjustments.

The Current Unit EPC change as determined on the Base

Electric Power Cost Units under Section 15.1(B)(5) hereof

shall be based on such change as determined with respect to

the Base Electric Power Cost Units under Section 15.1(B)(5)

in such a manner that historical rate design concepts shall

be maintained.

(3) Deferred EPC Account

A Deferred EPC Account shall be maintained reflecting the

under collection or over collection of Electric Power Costs

for each monthly billing period. The Deferred EPC Account

shall be credited or debited as follows: Each month all

Electric Power Costs as defined in Section 15.1(B)(1) above

incurred by Pipeline shall be debited to this account and all

Electric Power Costs recovered by Pipeline shall be credited

to this account. Electric Power Cost recoveries will be

determined by multiplying the sum of the applicable Base

Electric Power Cost Unit plus the corresponding effective EPC

Adjustment for each zone and rate schedule by the respective

monthly demand and commodity units to be billed. Beginning

on June 1, 1993 or the effective date of this Section

15.1(B)(3), the Deferred EPC Account shall be maintained in

twelve-month accumulation periods, November-October, provided

that the first accumulation period shall include any balance

carried forward from prior periods.

(4) Electric Power Cost (EPC) Surcharge Adjustments

The Electric Power Cost Surcharge Adjustments shall be

computed for each applicable zone and rate schedule by

dividing the Deferred EPC Account Balance for such