Kansas Pipeline Company

Original Volume No. 1

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Effective Date: 05/11/1998, Docket: CP96-152-009, Status: Effective

Original Sheet No. 273 Original Sheet No. 273 : Superseded

GENERAL TERMS AND CONDITIONS (continued)

(3) Buyer's proportionate share of Kansas Pipeline's

demand deferred account balance shall be

determined by multiplying the total demand

deferred account balance, whether the same shall

be a debit or credit, on the day prior to the

effective date of this Section 17.4, by a fraction

consisting of the Buyer's demand billing

determinants during the twelve months prior to the

effectiveness of this Section 17.4 as the

numerator and Kansas Pipeline's total Buyer's

sales demand billing determinants during the same

period as the denominator.

(e) Calculation of Prior Period Adjustment Component

(1) The Prior Period Adjustment Component of Buyer's

Direct Bill shall be computed for each Buyer by

adding Buyer's proportionate shares of the

commodity and demand portions of each prior period

adjustment which has been charged or refunded to

Kansas Pipeline, as the case

may be, and which have not been reflected in

Kansas Pipeline's deferred account prior to

application of this Section 17.4. The Prior Period

Adjustment Component shall be limited to a nine

month period which shall commence on the date this

Tariff becomes effective, except to the extent

Kansas Pipeline receives refunds of amounts

previously charged to its deferred purchased gas

cost Account for which there will be no such time

limitation.

(2) Buyer's proportionate share of prior period

commodity charges or refunds shall be determined

by multiplying, for each prior period adjustment,

the total commodity portion of such adjustment by a

fraction which shall be determined in Section

17.4(d)(2).

(3) Buyer's proportionate share of prior period

demand charges shall be determined by multiplying,

for each such prior period adjustment, the total

demand portion of such adjustment by a fraction

which shall be determined in Section

17.4(d)(3).