Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 02/01/1993, Docket: RS92- 87-003, Status: Effective

3rd Revised Sheet No. 82 3rd Revised Sheet No. 82 : Effective

Superseding: 2nd Revised Sheet No. 82

GENERAL TERMS AND CONDITIONS

(continued)

23. ANNUAL CHARGE ADJUSTMENT - ACA

The purpose of this Section 23 is to establish procedures designed to

implement Section 154.38(d)(b)(6)(ii)(A) of the FERC's Regulations which

allows a natural gas pipeline to adjust its rates annually to recover from

its customers annual charges assessed it by the FERC under Part 382 of the

FERC's Regulations - Assessment of Annual Charges (annual charges).

Transporter shall not recover any annual charges assessed by the FERC and

recorded in FERC Account No. 928 in an NGA Section 4 rate case for any

time period that this ACA clause is in effect.

23.1 Application

In order to recover such annual charges, this Section 23 establishes

an ACA Unit Surcharge per dth to be applicable to quantities of

natural gas transported under Transporter's Rate Schedules.

23.2 Basis of the ACA Unit Charge

Transporter's Transportation Rate Schedules shall include a

separately identified rate increment for an ACA Unit Surcharge. Such

ACA Unit Surcharge shall be that increment, adjusted to Transporter's

measurement basis (dekatherm), which shall be authorized on an annual

basis by the FERC for each fiscal year commencing October 1 and

ending September 30 pursuant to Section 382 of the FERC Regulations.

The ACA Unit Surcharge shall be separately reflected on the currently

effective Rate Sheets of this FERC Gas Tariff.

23.3 Filing Procedure

The initial ACA Unit Surcharge or any subsequent changes in such

surcharge shall be filed by Transporter at least thirty (30) days

prior to the proposed effective date.

Transporter shall effectuate rate adjustments made pursuant to this

Section 23 on October 1 of each year. Any such rate adjustment shall

not become effective unless it becomes effective without suspension

or refund obligation.

23.4 Payment by Shipper

The amount of Shipper's applicable ACA Unit Surcharge shall be due

and payable concurrently with such bill for gas service as specified

in Section 7.1 of these General Terms and Conditions.