K N Interstate Gas Transmission Co.

Second Revised Volume No. 1-B

Effective Date: 11/01/1994, Docket: RP94-397-000, Status: Effective

First Revised Sheet No. 58 First Revised Sheet No. 58 : Superseded

Superseding: Original Sheet No. 58

GENERAL TERMS AND CONDITIONS FOR SERVICES - continued

26. TRANSITION COST RECOVERY MECHANISMS.

26.1 ACCOUNT 191 TRANSITION COSTS.

a. Transporter will not recover any formerly non-jurisdictional

gas costs in the liquidation of Account 191. Transporter will

recover or refund, by direct bill or payment, all

jurisdictional Account 191 balances remaining upon the

effective date of its implementation of the restructuring

filing. Any billing disputes or out-of-period costs will be

resolved within nine (9) months of Transporter's effective RS

implementation date. Payment for the recovery of disputed

costs must be made within twelve (12) months of the resolution

of the dispute. Recoveries and refunds will include carrying

charges to the extent required by this section. The Account

191 balance related to demand charges will be allocated to

customers based on the 1992 sales billing demand units. The

commodity balance will be allocated to customers based on the

actual 1992 sales deliveries.

b. Recoveries for remaining Account 191 balances shall be made

either through a one-time lump sum payment or may be spread

out over the twelve-month period immediately following

implementation of the restructuring services. Refunds for

remaining Account 191 balances shall be made as they are

determined. If amounts are spread out, carrying charges will

be assessed at the same rate Transporter charges its customers

under its PGA clause (see Sec. 154.305[h] of the Commission's

Rules and Regulations for a definition of carrying charges

interest rates).

c. As of the effective date of RS implementation, Transporter's

PGA mechanism will be discontinued.