Northern Natural Gas Company

Fifth Revised Volume No. 1

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Effective Date: 04/01/1998, Docket: RP93-206-019, Status: Effective

Second Revised Sheet No. 246 Second Revised Sheet No. 246 : Effective

Superseding: First Revised Sheet No. 246



Northern will multiply, for each day of a given month, the applicable GS-T surcharge

component by the lower of: i) the weighted average of the underlying GS peak day

entitlement for each GS-T Shipper; or ii) the daily actual GS-T volume delivered to a

GS-T Shipper.


C. Quarterly Filings. Northern will make limited Section 4 filings to obtain Commission

approval for recovery of all Stranded Costs that have been incurred. Northern's

initial Stranded Cost filing will cover the period of November and December, 1993.

Northern will file quarterly to adjust the costs, and the surcharge, as necessary. The

effective date of Northern's subsequent Stranded Cost Demand Surcharge adjustments will

be January 1, April 1, July 1, and October 1. Northern shall file such adjustments at

least thirty (30) days prior to the proposed effective date. Northern shall file with

the Commission and post, as defined by Section 154.16 of the Commission's Regulations,

a schedule of effective rates after the Stranded Cost Surcharge adjustment under this

Section 24 on revised tariff sheets of Northern's FERC Gas Tariff, together with all

supporting computations. No change shall be made hereunder unless the computed

adjustment results in a change in Northern's rates of at least one cent per Mcf



D. Computation of the Stranded Cost Demand Surcharge. The Stranded Cost Demand

Surcharge shall be determined in accordance with the following procedures:


(1) To determine the applicable Stranded Cost Demand Surcharge, Northern

will allocate the total Stranded Costs, as adjusted for over or

underrecoveries from the previous period, pursuant to (2) and (3)

below, to the firm contract entitlements to be billed as described

in Section B.


(2) In order to assure recovery of all Stranded Costs, the total

unrecovered (or overrecovered) Stranded Costs shall be computed each

month by Northern and shall be debited (or credited), as

appropriate, to a deferred account. Any refunds received by

Northern, for the period after implementation of this Section

associated with Stranded Costs, shall be credited to the deferred

account. Additionally, any amounts collected pursuant to Paragraphs

D or E, and billing credits received by Northern arising from

Northern's exercise of capacity release rights on upstream pipelines

shall be credited to the deferred account. Also, any below market

cost associated with Northern use, as merchant, of any

unassigned/unconverted capacity will be credited to the Account No.

858 Stranded Cost Recovery Mechanism. Any underrecoveries during

the period will be debited to the deferred account.


(3) For each month in which the Stranded Cost deferred account provided

for in this Section 24 has an accumulated balance at the end of the

preceding month, such account shall be debited (in the event of a

debit balance) or credited (in the event of a credit balance) by

appropriate carrying charges determined in accordance with

Commission Regulations, as provided for in Section

154.38(d)(4)(iv)(c), on the net balance as of the end of the

preceding month.


E. Exit Fee. An exit fee will be assessed when Northern and the Shipper have

negotiated such fee in consideration of a

release from the Shipper's obligation to pay for firm transportation

capacity. This exit fee does not apply to any reduction as a result of

Section 5.B. of Rate Schedule TF. If the negotiated fee is less than

Shippers allocated share of the stranded cost, Northern will not collect the

balance from other Shippers.