Texas Gas Transmission Corporation

First Revised Volume No. 2-A

Effective Date: 11/01/1991, Docket: RP90-104-021, Status: Effective

Sub Original Sheet No. 121 Sub Original Sheet No. 121 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

27.4 Determination of Transportation Cost Adjustment: The

adjustment to Transporter's Base Tariff Rates shall

be the result of subtracting the Base Transportation

Average Cost Rate from the Current Transportation

Average Cost Rate. The Current Transportation

Average Cost Rate shall be determined by dividing the

projected annual Transportation Costs adjusted for

known and measurable changes for the TCA Period by

the projected demand and commodity units to be billed

under the Transporter's applicable Rate Schedules for

the same period. The Base Transportation Average

Cost Rates shall be those as so determined in the

Stipulation and Agreement in RP90-104, et al.. Such

Transportation Cost Adjustments shall be made so as

to maintain Transporter's effective cost allocation

and rate design.

27.5 Unrecovered Transportation Cost Account:

(a) Transporter shall maintain an Unrecovered Trans-

portation Cost Account (Account 186.80) to record

the monthly difference between actual Transporta-

tion Costs and the actual amounts recovered in

Transporter's rates for Transportation Costs.

For purposes of calculating the actual amounts

recovered in Transporter's rates for Transporta-

tion Costs, it will be assumed that Transporter

received the maximum applicable unit Account 858

component for all transportation services render-

ed. Actual Transportation Costs exceeding the

amounts recovered in Transporter's rates shall be

debited to this account and actual Transportation

Costs below the amounts recovered in Transport-

er's rates shall be credited to this account.

This account shall be segregated between demand

and commodity. Actual Transportation Costs shall

be the amounts paid