Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RP94- 37-000, Status: Effective

Second Revised Sheet No. 141A Second Revised Sheet No. 141A : Superseded

Superseding: FIRST REVISED SHEET NO. 141A

GENERAL TERMS AND CONDITIONS (continued)

(e) Transporter shall file a report with the

Commission at the end of the sixth month following

the effective date of Transporter's tariff filed

pursuant to Docket No. RS92-27 stating the balance

in its FERC Account 191 and the amount collected

or refunded at that time. In addition,

Transporter shall file a second report with the

Commission at the end of the amortization period

showing the amounts actually billed or refunded

and the method proposed to collect or refund any

remaining balance.

33.3 Recovery of Tennessee Gas Costs: Upon Commission

authorization, Tennessee Gas Costs shall be billed or

refunded at each customers election, by way of a lump

sum payment or a demand surcharge, to all former

bundled jurisdictional sales customers and direct sales

customers, that were purchasing firm gas from

Transporter on the day prior to the Implementation

Date; provided, that in the case of former bundled

direct sales customers, such recovery shall be limited

to those customers from which Transporter has a right

to collect such cost(s) pursuant to the terms of the

direct sales contract with such customers, (such former

bundled jurisdictional sales and direct sales customers

hereafter referred to together as the "Affected

Shippers"). Transporter will invoice, over the same

period used by Tennessee, Affected Shippers for

Tennessee Gas Costs attributable to Affected Shippers,

including interest on any unpaid balance calculated

pursuant to Section 154.67(c) of the Commission's

Regulations, as follows: