Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 11/01/2004, Docket: RP04-601-000, Status: Effective

Sixteenth Revised Sheet No. 5B.02 Sixteenth Revised Sheet No. 5B.02 : Effective

Superseding: Fifteenth Revised Sheet No. 5B.02

FOOTNOTES (cont.)

Footnote 9, continued

Year 2-8, continued

Note: For purposes of escalating the SBR Reservation Charge, the Escalation Factor

is applied to the Prior Year's Escalated SBR, i.e., prior to the application of the

rate reduction.

Rate Reduced Escalated SBR Reservation Charge = (Current Year's Escalated SBR

Reservation Charge - $0.003)

Settlement Settlement

Base Rates Base Rates

Reservation Commodity

Charge* Charge*

East of Thoreau Area to California

(West of Thoreau Area):

Southern California Gas Company $0.3501 $0.0258

San Juan Lateral Area to Thoreau/San Juan Point:

UNS Gas, Inc. $0.1142 $0.0011

Duke Energy Trading and Marketing, L.L.C. $0.1142 $0.0011

El Paso Energy Marketing Company $0.1142 $0.0011

Sacramento Municipal Utility District $0.1142 $0.0011

Pacific Gas & Electric Company (Gas) $0.1142 $0.0011

Texaco Natural Gas Inc. $0.1142 $0.0011

Southern California Gas Company $0.1142 $0.0011

Thoreau/San Juan Point to California

(West of Thoreau Area)

Duke Energy Trading and Marketing, L.L.C. $0.2824 $0.0174

El Paso Energy Marketing Company $0.2824 $0.0174

Pacific Gas & Electric Company (Gas) $0.2824 $0.0174

Sacramento Municipal Utility District $0.2824 $0.0174

Texaco Natural Gas Inc. $0.2824 $0.0174

Thoreau/San Juan Point to East of California

(West of Thoreau Area):

UNS Gas, Inc. $0.1822 $0.0174

*The Current Firm Shippers listed above shall be subject to the surcharges in Footnotes 8

and 10 when using Primary Receipt Points and/or Primary Delivery Points and when using

Alternate Receipt Points and/or Alternate Delivery Points.