Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 09/01/1993, Docket: RS92- 27-007, Status: Effective

Second Revised Sheet No. 37 Second Revised Sheet No. 37 : Superseded

Superseding: FIRST REVISED SHEET NO. 37

RATE SCHEDULE FT-SG (continued)

shall charge Shipper an amount to recoup the amount of tax

levied pursuant to the Alabama Utility Gross Receipts Tax

as recognized in the Commission's June 30, 1989 order in

Alabama-Tennessee Natural Gas Co., Docket Nos. CP88-269-

004, et al., which have not been previously paid by

Shipper, which Transporter shall not use the amounts so

collected in establishing its general system rates. The

applicable Incidental Charges shall be stated in the FT-SG

Contract.

5.4 Imbalance Charge: In addition to the charges in Sections

5.1, 5.2, and 5.3, Transporter may charge Shipper an

Imbalance Charge as provided in Section 3 of the General

Terms and Conditions of Transporter's FERC Gas Tariff.

5.5 Allocated Take-or-Pay Charge: If applicable, Transporter

shall charge Shipper each month the direct billed amount of

allocated take-or-pay charges and volumetric surcharge as

shown on the currently effective Tariff Sheet No. 4A.

5.6 Transition Cost: If applicable, Transporter shall charge

Shipper each month the amount of transition cost, as

determined pursuant to Section 33 of the General Terms and

Conditions of Transporter's FERC Gas Tariff.

5.7 Upstream Transition Costs: If applicable, the pro rata

pass through, on an "as billed" basis, of certain upstream

costs billed to Transporter including, without limitation,

upstream transition costs.

5.8 IT Revenue Credit: If applicable, Transporter shall credit

the pro rata portion of IT revenue credits as provided

under Section 35 of the General Terms and Conditions of

Transporter's FERC Gas Tariff.

6. CAPACITY RELEASE AND INTERRUPTIBLE TRANSPORTATION DELIVERIES

6.1 Transporter shall not be obligated to accept a bid for

released transportation capacity made by an FT-SG Shipper

unless Shipper's nominations under its FT-SG Contract

equal its Contract Demand. Should Transporter accept an