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. 51 Original Sheet No. 51 : Effective



together with interest at the FERC refund rate as specified in

FERC regulation 154.501(d). Interest will accrue from the due

date of said unpaid invoice, but such interest will not exceed the

maximum permitted by applicable law.


6.12.1 An Owner may dispute, in good faith, the amount of an

invoice by providing the Project Operator a brief written

description of such dispute, including but not limited to the

disputed amount. The disputing Owner shall promptly pay the

portion of such invoice not in dispute, and acceptance of such

payment by the Project Operator will not prejudice the Project

Operator's claim as to the disputed unpaid portion of the invoice

plus interest, as provided above. Notwithstanding such payment by

the Owners and the acceptance thereof by the Project Operator, any

errors in such invoices or payments will be corrected by the

Owners or Project Operator, as appropriate. An Owner must notify

the Project Operator in writing, of such errors within twenty-four

(24) Months after the date of the erroneous invoice, but not

thereafter. In addition, each Owner will have the right to

contest any invoice by requesting an audit pursuant to

Section 6.9. If no exceptions to an invoice are taken within such

twenty-four (24) Month period, such invoiced costs will be deemed

to have been billed correctly. Any Owner including the Project

Operator, shall have the affirmative duty to correct any invoice

errors of which it has actual knowledge, regardless of such

Owner's lack of knowledge of any other error.


6.12.2 Any overpayments or underpayments by the Owners or audit

exceptions agreed to by the Project Operator will be refunded to

Owners or remitted to the Project Operator with interest as

specified in Section 6.12.


6.12.3 The Storage Project will not be charged with any salaries

of Committee members, or salaries of the executives of the Owners,

unless specifically authorized by the Committee.