Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RP94-135-000, Status: Effective

Sub Original Sheet No. 636 Sub Original Sheet No. 636 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

shall be calculated by allocating the net monetary

balance in the Applicable Shrinkage Deferred Account at

the end of each accumulation period to such service

categories and/or Rate Schedules, on a pro rata basis,

using the proportion that the projected annual

quantities of fuel and company use gas and gas lost, as

defined herein, for the full projected annual period

beginning each December 1 for each service category

and/or Rate Schedule bears to the total of all such

projected annual quantities for all ASA Rate Schedules.

The effective ASA Usage Surcharge for each service

category and/or Rate Schedule shall be calculated by

dividing the allocated portion of the Applicable

Shrinkage Deferred Account balance by the projected

Usage Charge determinants for each service category

and/or Rate Schedule for the projected annual period

beginning each December 1, provided, however, that if

the application of the ASA Usage Surcharge so

calculated to any service category and/or Rate Schedule

would result in a rate below the effective minimum rate

or zero, then the portion of the ASA Usage Surcharge

below the minimum rate or zero shall be converted to an

equivalent reduction to the Reservation Charge for such

service category and/or Rate Schedule based upon the

projected Reservation Charge determinants for the

projected annual period beginning December 1.

(E) Procedure for Filing:

At least thirty (30) days prior to the effective date of a

change in Applicable Shrinkage Percentage hereunder,

Pipeline shall file with the Commission revised tariff

sheets setting out the proposed change and supporting

workpapers showing the calculations developing such

proposal. Pipeline shall file annually to revise the ASA

Percentages as provided in Section 15.6(B) herein and the

ASA Usage Surcharge as provided in Section 15.6(D) herein

effective on December 1 of each year. Pipeline may file

interim proposals between annual filings subject to approval

by the Commission.