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NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Gas Service Tariff
Original Volume No. 5
First Revised Sheet No. 19E
Superseding
Original Sheet No. 19E

RATE 338
RATE FOR GAS SERVICE
FIRM TRANSPORTATION AND TRANSPORTATION BALANCING SERVICE

No. 6 of 8 Sheets

COMPANY BALANCING SERVICE CATEGORY (B) (continued)

Customers may schedule injections and withdrawals from their balancing accounts. The availability of injections and withdrawals will be interruptible and therefore, the scheduling of injections or withdrawals from a Customer's balancing account must be approved by the Company's Gas Dispatcher in time for the Company to make pipeline nominations. The Customer is responsible to assure that such scheduled injections or withdrawals remain within their balancing account limits. In the event that such scheduled injections cause the Customer to exceed the balancing account limits (over), the daily cash out provisions of this Rate Schedule will apply. Scheduled injections and withdrawals are included as part of a Customer's daily scheduled nominated quantity.

Customers will be subject to the balancing charges for all no-notice injections into the balancing account and no-notice withdrawals from the balancing account in accordance with the balancing charge table below. There will be no charge for scheduled injections and withdrawals from the balancing account provided such scheduled injections or withdrawals do not cause the Customer to exceed their balancing account limits (over or under).

Percent of Daily Nomination   Balancing Charge
+/- (0% to 9.99%)   0.0 cents per therm
+/- (10% to 20%)   3.2 cents per therm
  over +/- 20%   10.6 cents per therm

Gas volumes assessed the balancing charge listed in the table above or scheduled for redelivery will be added or subtracted from a Customer's balancing account as appropriate up to the balancing limit.

In the event the balancing account limit is exceeded, the volume of undertake gas in excess of the allowable balancing limit will be cashed out for that day at the daily cash out price. The daily cash out price shall be calculated as the daily price posted in Natural Gas Intelligence Daily Gas Price Index, Cash Market Price for Midcontinet/Midwest at Chicago Citygate minus a cash out fee of 5.80 cents per therm. Customers will be allowed to carry-over from one month to the next any balancing account amount up to their elected balancing account limit. elected balancing account limit.

IMBALANCE NETTING OPTION

A Customer may elect to participate in an imbalance netting pool which shall entitle Customer to have daily over- and under-take imbalances netted within an aggregated pool. Such aggregated pool volumes shall be considered as one volume for the calculation of balancing charges, as defined

Issued Date Issued By
Gary L. Neale
Chairman, President and Chief Executive Officer
Effective Date
May 12, 1999 Hammond, Indiana June 1, 1999

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