Texas Gas Transmission Corporation

First Revised Volume No. 2-A

Effective Date: 11/01/1991, Docket: RP90-104-020, Status: Effective

First Revised Sheet No. 120 First Revised Sheet No. 120 : Effective

Superseding: Original Sheet No. 120

GENERAL TERMS AND CONDITIONS

(Continued)

27. Transportation Cost Adjustment (TCA)

27.1 Provision for Adjustment: All base rates under

Transporter's Rate Schedules in its FERC Gas Tariff,

Original Volume No. 1 and First Revised Volume No.

2-A, and X-Rate Schedules in Original Volume 2 of

Transporter's FERC Gas Tariff incorporating rates

from Volume 2-A of such tariff, shall be adjusted to

reflect changes in Transporter's Transportation

Costs. "Transportation Costs" are costs for the

transmission and compression of gas by others on

behalf of Transporter recorded in FERC Account 858,

but limited to transactions listed in Appendix F of

the Stipulation and Agreement in Docket No. RP90-104,

commencing November 1, 1991, and ceasing on the

termination date of said Stipulation.

27.2 Filing of TCA: Transporter shall file its first

quarterly adjustment to its base rates, which shall

include computations showing the derivation of the

Transportation Cost Adjustment, concurrently with the

Quarterly or Revised Annual PGA to be effective at

least 45 days after the Stipulation and Agreement in

Docket No. RP90-104, et al. becomes effective.

Subsequent adjustments shall be filed concurrently

with Quarterly or Revised Annual PGAs, and shall be

effective on those dates (February 1, May 1, August

1, and November 1). If a Revised Annual PGA filing

is not made, the TCA filing will be made at least 30

days prior to the effective date. The Base Tariff

Rates shall reflect the base rates after the

adjustments contained in this Section.

27.3 TCA Period: The Transportation Cost Adjustment

Period (TCA Period) shall be the twelve-month period

beginning with the effective date of Transporter's

Transportation Cost Adjustment filings referenced in

Section 27.2.