NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 02/01/1995, Docket: RP94-343-007, Status: Effective

Alternate Original Sheet No. 213 Alternate Original Sheet No. 213 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

Monthly

Imbalance

Level Under- Over-

(Percentage supplies supplies

of Total Premium Discount

Deliveries) Factor Factor

0% to ó 5.35% 1.00 1.00

> 5.35% to ó10% 1.10 .90

>10% to ó15% 1.20 .80

>15% to ó20% 1.30 .70

>20% to ó25% 1.40 .60

>25% 1.50 .50

A sample calculation is as follows:

If Shipper's Monthly Imbalance consisted of

Undersupplies in the amount of 12%, the

first 5.35% would be cashed out at the

Index Price multiplied by a factor of 1.00,

the next 4.65% would be cashed out at such

Index Price multiplied by 1.10, and the

final 2% would be cashed out at such Index

Price multiplied by 1.20.

(1) In the event of Oversupplies,

Transporter shall have the option of

crediting the next invoice of

Shipper's or making a cash payment in

the specified amount for such Monthly

Imbalance quantities, or any

combination thereof. In case of a

cash payment by Transporter,

Transporter shall send such payment

ten (10) Days after Shipper's receipt

of its notice of Monthly Imbalance.