Texas Gas Transmission Corporation

First Revised Volume No. 2-A

Effective Date: 08/01/1991, Docket: CP88-686-003, Status: Effective

Original Sheet No. 41 Original Sheet No. 41 : Effective

RATE SCHEDULE

FT-SL, FT-1, FT-2, FT-3 AND FT-4

Firm Transportation Service

(Continued)

(b) In situations where the demand and commodity

components of a two-part rate are blended to form

a one-part rate for service assigned on a firm

basis, the maximum one-part rate must be

calculated using the projected FT load factor

underlying Transporter's current rates. However,

for firm assignments, the FT Customers and

assignors, must provide the assignees with the

option of receiving service at the as-billed rate,

as opposed to a blended rate. A one-part blended

rate cannot be used as a reservation fee or as a

demand charge, but can only be charged for service

which is actually rendered.

interruptible basis must be a volumetric rate

which complies with Section 284.9(d) of the

Commission's regulations. The maximum rate for

firm capacity assigned on an interruptible basis

must be no higher than Transporter's maximum rate

for interruptible transportation service as shown

on currently effective Sheet No. 11, as such rate

may change from time to time. The minimum rate

cannot be less than Transporter's minimum rate for

interruptible transportation service.

(d) The rate for capacity assigned by Transporter's

standby customers shall include the FT commodity

charge and that portion of the Transporter's Sales

Demand charges attributable to transportation

service which is equal to the applicable FT

reservation fee.

(e) FT Customers and assignors may pass on any

scheduling or balancing penalties actually levied

by Transporter against FT Customers. It is the

responsibility of the FT Customer to determine

which assignees are responsible for any penalties.

Assignors may not levy penalties if no penalties

are actually levied by Transporter.