Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 02/18/1996, Docket: RP96-117-000, Status: Effective

First Revised Sheet No. 630 First Revised Sheet No. 630 : Effective

Superseding: Original Sheet No. 630

GENERAL TERMS AND CONDITIONS

(Continued)

Section 15.3, or (b) the balances in Account No. 188

included in Pipeline's last prior R&D Adjustment under

this Section 15.3. The balance in Account No. 188, for

the purpose of computing the R&D Adjustment, shall be

reduced by all monies recorded in Account No. 495

related to R&D expenditures. The rate of return used

to determine the rate effect of the rate base treatment

in Account No. 188 shall be the rate of return last

allowed by the Commission during the previous three

year period. If there has been no such rate of return

allowed during the previous three year period, then, in

the absence of evidence submitted to the contrary, the

return utilized shall be the present interest rate used

for computing refunds as specified in Section

154.501(d) of the Commission's Regulations under the

Natural Gas Act.

(B) Procedure for Filing:

Rate changes under this Section 15.3 shall be computed and

filed not more frequently than semiannually. Any filing

made hereunder to increase Pipeline's rates shall meet the

notice requirements of Section 154.207 of the Commission's

Regulations and shall be made at least forty-five (45) days

prior to the date on which any change(s) in its existing

rates is to become effective. Simultaneously with such

filing, the company shall furnish the Commission,

jurisdictional Customers and interested State Commissions a

report containing detailed computations which clearly show

the derivation of the proposed R&D Adjustment. The effect

upon jurisdictional rates shall be determined by computing

the unit change (either increase or decrease) based upon

jurisdictional transportation quantities for the

twelve-month period ending three months prior to the

effective date of R&D Adjustment. Filings made under this

Section 15.3 shall include a statement as to the anticipated

scope and objective of the R&D and the relationship of such

objective to the service for which the R&D Adjustment is to

apply. Each R&D Adjustment shall become effective on the

proposed effective date without suspension provided that any

rate of the balance increase shall be subject to reduction

and refund of any portion found after hearing to be

unjustified by a final and non-appealable Commission order.

Pipeline shall not be required to reduce its rates under

this Section 15.3 by an increment exceeding the aggregate

increases allowed hereunder.

Rate changes made under this Section 15.3 shall be

calculated exclusive of any payments made to Gas Research

Institute.