Penn-Jersey Pipe Line Co.

First Revised Volume No. 1

Effective Date: 01/01/1984, Docket: GT91- 41-001, Status: Effective

First Revised Sheet No. 5 First Revised Sheet No. 5 : Effective

RATE SCHEDULE T-1

TRANSPORTATION SERVICE

(continued)

C. One-twelfth (1/12) of the annual depreciation expense

computed by the application of an annual straight-line

depreciation rate of 3-1/3% of the actual investment in gas

plant in service at the first day of the billing month as

reflected in Gas Plant Account 101; plus

D. Accruals recorded for the billing month with respect to

income and other taxes associated with natural gas

operations and adjustments of accruals for tax expenses

previously billed; plus

E. Return at an annual rate of 6% computed for each monthly

bill by the application of the monthly rate of 0.5% to the

net investment rate base, determined by deducting from the

actual original cost of gas plant in service reflected in the

Gas Plant Account 101, and the balance in Account 110-

Accumulated Provision for Depreciation, Depletion and

Amortization of Gas Plant. This rate base shall be

determined as of the date of initial operation and as of the

first day of each succeeding calendar semi-annual period,

provided that in the event a substantial addition to or a

substantial retirement from Transporter's property is made

between the dates for determination of the rate base,

Transporter shall recompute the rate base in accordance

with this paragraph E, effective the first day of the month

following the date of commercial operation of such addition

or retirement of such portion of Transporter's property; less

F. Credits for gas revenues collected under other Rate

Schedules.