Kansas Pipeline Company

Original Volume No. 1

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Effective Date: 05/11/1998, Docket: CP96-152-022, Status: Effective

Sub First Revised Sheet No. 265 Sub First Revised Sheet No. 265 : Effective

Superseding: Original Sheet No. 265

GENERAL TERMS AND CONDITIONS (continued)

17.2 Annual Charge Adjustment Provision (ACA)

(a) Purpose

Annual charges are assessed to Kansas Pipeline

by the Commission under Part 382 of the

Commission's Regulations prior to each fiscal

year in order to cover the cost of the

operation of the FERC. For the purpose of

recovering such charges assessed Kansas

Pipeline by the Commission, this Section 17.2

establishes pursuant to Section 154.38(d)(6)

of the Commission's Regulations an ACA Surcharge

to be applicable to quantities transported under

any firm or interruptible Kansas Pipeline Rate Schedules.

This ACA Surcharge is in addition to any amounts

otherwise payable to Kansas Pipeline under said

Rate Schedules.

(b) Basis of the ACA Unit Charge Rate

The ACA Unit Charge Rate shall be that increment,

adjusted to Kansas Pipeline's measurement base

(Dekatherm) and pressure base, if required, which has

been approved by valid Commission Orders approving

an annual charge unit rate.