Texas Gas Transmission Corporation

First Revised Volume No. 2-A

Effective Date: 01/01/1993, Docket: TM93-2-18-001, Status: Effective

Sub First Revised Sheet No. 108 Sub First Revised Sheet No. 108 : Effective

Superseding: Original Sheet No. 108

GENERAL TERMS AND CONDITIONS

(Continued)

21. FERC Annual Charge Adjustment (ACA) Unit Charge

21.1 Purpose: The Omnibus Budget Reconciliation Act of

1986 (Act), by its Section 3401(a)(1), requires the

Commission to assess and collect fees and annual

charges in any fiscal year (October 1 through

September 30) in amounts equal to all of the costs

incurred by the Commission in that fiscal year.

Transporter will be required to remit to the

Commission Transporter's share of any FERC

undercollections as calculated on Transporter's

Annual Charges Bill for the current fiscal year.

For the purpose of recovering this payment, this

Section establishes a FERC ACA Unit Charge

(pursuant to Commission authority) to be applicable

to all jurisdictional sales and transportation

quantities sold or transported. By electing the

FERC ACA Unit Charge method of recovery,

Transporter hereby acknowledges its intent not to

recover any annual charges recorded in FERC Account

No. 928 in an NGA Section 4 rate case.

21.2 Basis of the FERC ACA Unit Charge: Transporter's

FERC ACA Unit Charge shall be that charge factor,

adjusted to Transporter's pressure base and heating

value, if required, which has been stated on

Transporter's Annual Charges Bill, and approved by

the Commission, for the current fiscal year.

21.3 Filing Procedure: Pursuant to Section 154.22 of

the Commission's Regulations, Transporter shall

file, at least thirty (30) days prior to the

effective date of an ACA filing, and post, pursuant

to Section 154.16 of the Commission's Regulations,

the necessary tariff sheets to reflect the FERC

approved ACA Unit Charge, unless, for good cause

shown, a lesser notice period and different

effective date is allowed by valid Commission

order.