Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-165-001, Status: Effective

First Revised Sheet No. 28 First Revised Sheet No. 28 : Superseded

Superseding: ORIGINAL SHEET NO. 28

RATE SCHEDULE FT (continued)

6. FUEL AND LOSSES

Included in each Shipper's nominations for transportation

shall be the quantity of gas required for Transporter's system

fuel and losses ("Fuel Quantity"), associated with rendering

transportation service pursuant to this Rate Schedule. The

Fuel Quantity shall be calculated by multiplying the Fuel

Retention Factor shown on the effective Tariff Sheet No. 4

times the quantity of gas nominated for transportation

pursuant to this Rate Schedule with the result of this

calculation rounded to the nearest whole dekatherm [(1-Fuel

Retention Factor % / 100) x Receipt Quantity = Delivery

Quantity]. The winter and summer Fuel Quantity shall be

separately stated. Transporter may redetermine the Fuel

Retention Factor, such redetermination to be effective January

1 of any year, by filing revised tariff sheets and supporting

workpapers with the FERC.

7. MONTHLY BILL

The Monthly Bill for services shall be equal to:

(a) Reservation Charge: A reservation charge equal to the

product of the Reservation Rate, determined under Section

5.1 of this Rate Schedule, multiplied by the Contract

Demand specified in the FT Contract; and

(b) Commodity Charge: The applicable Commodity Rate,

determined under Section 5.1 of this Rate Schedule

multiplied by the quantity of gas actually delivered by

Transporter to Shipper or Shipper's designee during the

month; and

pursuant to Sections 5.2, 5.3, 5.4 (and Section 3 of the

General Terms and Conditions), 5.5, 5.6, 5.7 and 5.8.

8. GENERAL TERMS AND CONDITIONS

Shipper shall provide Transporter with such information as is

needed to meet the requirements placed on Transporter by

regulations, rules, and/or orders by any duly authorized

agency. Furthermore, any terms or conditions not specified in

this Rate Schedule shall be determined consistent with the

General Terms and Conditions of Transporter's FERC Gas Tariff,

which are incorporated as part of this Rate Schedule.