NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 12/31/1996, Docket: RP97-193-000, Status: Effective

Second Revised Sheet No. 233A Second Revised Sheet No. 233A : Superseded

Superseding: Sub First Revised Sheet No. 233A

GENERAL TERMS AND CONDITIONS

(continued)

12.4 Policy with Respect to Order of Discounting.

In accordance with Section 154.109(c) of the Commission s

regulations, rate components will be discounted in the

following order:

(a) Firm Services

(i) Transporter shall discount the components of

reservation charges in the following order:

GRI surcharge;

Base Rate reservation charge;

Account No. 858 or other Order No. 636 Account

No. 858 or other Order No. 636 transition cost

surcharges (if applicable);

and

GSR reservation surcharge (if applicable).

(ii) Commodity charges shall be discounted in the

following order:

GRI surcharge;

Order No. 528 CSC surcharge; and

ACA surcharge (if applicable).

(b) Interruptible Services

The Commodity charges for interruptible service shall

be discounted in the following order:

GRI surcharge;

Base Rate commodity charge;

Order No. 528 CSC surcharge; and

ACA surcharge (if applicable).