*Texas Eastern Transmission Corporation*

*Sixth Revised Volume No. 1*

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Effective Date: 02/12/1996, Docket: RP96-142-000, Status: Effective

**First Revised Sheet No. 528 **First Revised Sheet No. 528 : Effective

Superseding: Original Sheet No. 528

GENERAL TERMS AND CONDITIONS

(Continued)

(2) If a Cash-out Party's imbalance is less than or equal

to 5%, the monthly Cash-out bill will be based on the

monthly average Spot Index Price. If a Cash-out

Party's imbalance is greater than 5%, the monthly

Cash-out bill will be based on the accumulated sum of

the results of the formulas listed below such that and

until the total monthly imbalance is fully accounted

for:

Imbalance

Level Factor Applicable Spot Index by Zone

0% - <5% 1.00 lowest weekly

>5% - <10% .90 (lowest weekly x quantity >5%) + level above

>10% - <15% .80 (lowest weekly x quantity >10%) + levels above

>15% - <20% .70 (lowest weekly x quantity >15%) + levels above

>20% - <25% .60 (lowest weekly x quantity >20%) + levels above

>25% .50 (lowest weekly x quantity >25%) + levels above

The amount due Cash-out Party shall be determined by

multiplying the corresponding Imbalance Level Factor

for the month by the applicable Spot Index Price for

the applicable zone times the actual quantities of

excess receipts or deficiency of deliveries for the

month. For Rate Schedule SCT Customers, such Imbalance

Level shall be determined after Pipeline subtracts up

to 4,828 Dth, from each Rate Schedule SCT Customer's

total monthly imbalance. Such amount subtracted up to

4,828 Dth will be Cashed-out at the monthly average.

When the Total Monthly Imbalance Percentage is based on

the operational imbalance level, actual quantities in

excess of that level will be multiplied by the

Imbalance Level Factor corresponding to the Total

Monthly Imbalance Percentage.

(3) For imbalances due Cash-out Party in the Market Area

Zone(s) where the imbalance occurred, such imbalance

quantity, if 5% or less, will be multiplied by the

applicable monthly average of the weekly Spot Index

Price for the four Access Area Zones. If such

imbalance quantity is greater than 5%, it will be

multiplied by the average of the lowest weekly Spot

Index Price for the four Access Area zones.