Puget Sound Energy, Inc.

Original Volume No. 1

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Effective Date: 11/01/1998, Docket: CP98-250-002, Status: Effective

Original Sheet No. 34 Original Sheet No. 34 : Effective



An Owner's O&M Cost will not increase as a result of an expansion

or addition in which that Owner does not participate.


4.4.3 Unless mutually agreed otherwise, the Storage Service Rights

for the Storage Project of each Owner participating in an

expansion or addition shall be increased by that Owner's

proportionate share of funding for the costs of such expansion or

addition times the incremental Firm Injection Capability, Firm

Withdrawal Deliverability and Firm Working Gas Capacity,

respectively, made available for the Storage Project as a result

of such expansion or addition. In the event that any addition or

expansion affects the Operating Rules as set forth in Exhibit F,

the Committee shall revise such Operating Rules to conform with

the deliverability of the Storage Project with respect to each

Owner. An Owner's Storage Service Rights in the Storage Project

will not be reduced nor will the Operating Rules applicable to

such Owner be altered, except by mutual agreement, as a result of

an expansion or addition in which such Owner does not participate.


4.5 Supply of Gas


To the extent that natural gas is required for installation,

purging, testing, and/or line pack for the addition or expansion,

such gas will be supplied by the Owner(s) participating in the

addition or expansion in proportion to the incremental ownership

interest of such Owner(s) in the new facility. Gas furnished for

installation, change in line pack, purging, and/or testing which

is lost will be considered part of each participating Owner's pro

rata cost of such expansion or addition.


4.6 Amending of Exhibits


To be effective upon completion of any expansion or addition, the

Owners shall amend Exhibit A hereto to reflect the additional

facilities included as part of the Storage Project and to amend

the Ownership Percentage set forth in Section 2.2, and amend the

Weighted Shares of Capital Cost and Weighted Shares of O&M Cost

set forth in Exhibit B, the certificated capabilities set forth in

Exhibit C, the Owner's Shares set forth