NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 02/01/1995, Docket: RP94-343-000, Status: Effective

Original Sheet No. 308 Original Sheet No. 308 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

billed to Transporter's former sales customers pro

rata based on actual purchases by such customers for

the twelve (12) Month period ending August 31, 1993.

Such direct billed amounts shall be due ten (10) Days

after the bills are rendered unless an amortization

period has been mutually agreed to by Transporter and

the affected Shipper(s). To the extent an

amortization period is agreed to, Transporter shall

also recover interest on uncollected amounts in

accordance with Section 154.67(c) of the Commission's

regulations. As out-of-period adjustments from

suppliers attributable to purchases prior to

implementation of restructured services pursuant to

Order No. 636 are incurred, the direct billing

mechanism will be adjusted to reflect such

adjustment, subject to receipt of necessary

Commission authorization. Transporter will post

unrecovered purchased gas costs to Account No. 191

for a nine (9) Month period after the effective date

of implementation of Transporter's restructured

services pursuant to FERC Docket No. RS92-3.

Transporter shall refund any net overrecoveries of

purchased gas costs attributable to Gas purchased by

Transporter prior to implementation of restructured

services pursuant to Order No. 636. Such

overrecovered amounts shall be refunded, within

ninety (90) Days after such overrecoveries are known

and measurable, to Transporter's former sales

customers pro rata based on actual purchases by such

customers for the twelve (12) Month period ending

August 31, 1993. Such refund shall include interest

calculated in accordance with Section 154.67(c) of

the Commission's regulations.

23.2 Gas Supply Realignment Costs.

(a) For purposes hereof, Gas Supply Realignment

Costs ("GSR Costs") are those costs attributable

to realigning Transporter's Gas supply contracts

as permitted by Order No. 636, including, but

not limited to, (i) costs incurred to reform or

terminate contracts, (ii) costs incurred by

Transporter ("Price Differential GSR Costs")

representing the difference between the contract

price under List A and List B Contracts (i.e.,