July 6, 2006

Tariff Changes Effective July 1st

1) Renewal Notice Reduced to 60 Days.

Currently for firm Receipt, Delivery and Storage contracts the TransGas Tariff stipulates that “the term is automatically renewed (YAIT) for another 12 month term, …unless written notice is received by TransGas ninety (90) days prior to the anniversary date”.

At the June 21st Customer Dialogue meeting, TransGas put forward a proposal to reduce the notice period for termination or amendment of evergreening (YAIT) service from 90 days to 60 days. This proposal received unanimous approval and as a result, effective with contracts renewing this November 1st, the notice period will be 60 days.

To assist our customers, it is TransGas’ practice to issue renewal reminders to customers 30 days in advance of the renewal deadline. As an example, notices for contracts renewing November 1st will now be sent out August 1st with a response due back to TransGas by September 1st. These reminders provide the current details of the contract and the allocation to specific meters.

TransGas continually looks for ways to improve and streamline processes. We expect the reduced timeline on renewals will assist our customers with their contracting decisions and will provide better information and shorter turnaround on the issuance of the new service requests.

The TransGas Tariff will be updated to reflect this change effective July 1st.

2) Late Payment Charge Assessments

The General Terms and Conditions stipulate that “TransGas shall have the right to charge interest……” The Tariff’s General Business Policy stipulates; “Interest will be charged….”. For flexibility, and to match practice with the Tariff, the word ‘will’ is being changed to ‘may’ effective July 1st.

Interest may be charged on all unpaid portions after the due date based on an annual interest rate of prime plus 4%.