TransColorado Gas Transmission Company

Original Volume No. 1

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Effective Date: 08/01/2001, Docket: RP01-478-000, Status: Effective

Original Sheet No. 263A Original Sheet No. 263A : Superseded

GENERAL TERMS AND CONDITIONS

23. NEGOTIATED RATES (Continued)

that the type of pre-existing service is not altered as a result of the

conversion to a negotiated rate. In those situations, TransColorado may

seek a discount-type adjustment based upon the greater of: (a) the

negotiated-rate revenues received or (b) the discounted-rate revenues that

otherwise would have been received.

23.11 Negotiated-Rate Surcharge and Fuel Retention Components. If

TransColorado negotiates surcharge or fuel retention percentage rate

components at lower than the maximum rate level for those components as

part of a negotiated-rate agreement, it will assume any risk of under-

recovery of costs or fuel retention from negotiated-rate Shippers in order

to ensure that its recourse Shippers are not adversely affected due to

negotiated-rate agreements with individual Shippers. If TransColorado

negotiates specific surcharge components of its rates, rather than total

rates, as part of a negotiated rate agreement, TransColorado's discount

order policy shall not apply.