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. 123 Sub Original Sheet No. 123 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

August 1, Transporter shall adjust its Base Tariff

Rates to include a surcharge to recover or return the

balance in the applicable Account 186.80 subaccount

as of the preceding April 30 or October 31. Trans-

porter will include working papers supporting its

calculations with its filing. Separate surcharges

shall be determined for the demand and commodity

portions in Account 186.80. Such surcharges shall be

determined by dividing the applicable balance by the

projected demand and commodity units to be billed

under the applicable Rate Schedules for the six-month

period commencing with the effective date of that

TCA. If a balance remains in the amortizing

subaccount at the end of its amortization period,

such balance shall be transferred to the current

Account 186.80 subaccount.

27.7 Termination Provision: If the provisions of this

Section 27 are terminated, any net credit balance in

all Subaccounts of Account 186.80 at such time shall

be refunded to Transporter's sales and transport

customers. Any such refunds shall be calculated on

the basis of the actual demand and commodity billing

units during the relevant accumulation period. If

the provisions of this Section 27 are terminated, any

net debit balance in all Subaccounts of Account

186.80 at such time shall be recoverable by Texas Gas

in its next rate case, and the inclusion of such

amount will not be subject to challenge as a non-

recurring cost or as otherwise not representative of

the appropriate test period cost of service. This

Section 27.7 provides customers with notice that such

unrecovered amounts may be recovered in the

subsequent rate case.