East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 10/01/1999, Docket: RP99-488-000, Status: Effective

Third Revised Sheet No. 55 Third Revised Sheet No. 55 : Superseded

Superseding: Second Revised Sheet No. 55



Rate Schedule LMS-MA

Load Management (Market Area) Service (Continued)



(e) Limitation on Penalties - Any imbalances caused by an event of force

majeure as set forth in Section 24 of the General Terms and Conditions

of Transporter's Tariff or caused by Transporter's actions (1) will not

be included in the calculation of the total monthly imbalance for

purposes of determining the appropriate cash-out level and (2) will be

cashed out at the 0-5% tolerance level, as set forth in Section 8.3.


(f) Disposition of Charges: At the conclusion of each annual period,

Transporter will determine the net cashout activity under its LMS Rate

Schedules. In the event that charges collected by Transporter under

its cashout provisions exceed the actual cost of providing service,

Transporter shall credit such excess revenues to all eligible Balancing

Parties. Credits shall be applied based on (1) volumes shipped during

each month that the Balancing Party used the Cashout Option during the

past year and (2) a pro rata portion of volumes shipped by Balancing

Parties which elect the Storage Swing Option but who also resolve

imbalances pursuant to this Cashout Option. Such proration shall be

based on the imbalances cashed out versus imbalances swung to storage.

Any credits due hereunder shall be made within 45 days following

approval by the Federal Energy Regulatory Commission of Transporter's

report and refund plan concerning such credits. To the extent that the

cashout activity in any annual period results in a negative balance,

such balance will be carried forward and applied to the next annual

determination of cashout activity. Within 150 days after each

anniversary of the Implementation Date, Transporter will file a report

and refund plan with the Commission.


8.4 Operational Integrity - Nothing in this Section 8 shall limit Transporter's

right to take action as may be required to adjust deliveries of gas in order

to alleviate conditions that threaten the integrity of its system.




9.1 A Balancing Party meeting the requirements set forth in this Section 9 may

elect to resolve daily variances (as defined in Section 5 of this LMS-MA Rate

Schedule) through the Storage Swing Option. The Storage Swing Option is

designed to allow Balancing Parties who also hold contracts with Tennessee

Gas Pipeline Company ("Tennessee") for service pursuant to Tennessee's Rate

Schedule FS and for firm transportation on Tennessee, to use up to two FS

contracts and any number of firm transportation contracts at a time for

balancing of daily variances, consistent with Section 9 of the LMS-MA Rate

Schedule of Tennessee's FERC Gas Tariff.


9.2 Requirements: A Balancing Party electing the Storage Swing Option must hold

firm storage and transportation on Tennessee and firm transportation on

Transporter. Balancing Party must provide Transporter with the following no

later than five (5) business days prior to the beginning of the month in

which the Storage Swing Option is to be effective: