_

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 1

PEOPLES GAS & POWER COMPANY, INC.

MIDWEST NATURAL GAS CORPORATION

107 S.E. THIRD STREET

WASHINGTON, INDIANA 47501

GENERAL TERMS AND CONDITIONS

SCHEDULE OF RATES

FOR

NATURAL GAS SERVICE

APPLYING TO

CUSTOMERS SERVED BY THE TEXAS GAS TRANSMISSION PIPELINE IN THE TOWNS OF BLOOMFIELD, SWITZ CITY, MIDLAND, STANFORD, CINCINNATI, AND VARIOUS OTHER INCORPORATED AND UNINCORPORATED AREAS IN GREENE AND MONROE COUNTIES, INDIANA.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 2

TABLE OF CONTENTS SHEET NO.

Title Page 1

Table of Contents 2

General Terms and Conditions 3-16

1. Application of Rates 3 & 4

2. Character of Service 4

3. Service Connections 5

4. Meters and Metering Equipment 6

5. Customer’s Piping & Utilization Equipment 6

6. Access to Premises 6

7. Deposit Required 6

8. Meter Reading and Billing 7

9. Discontinuance of Service‑Reconnect Charge – After Hours

Reconnection 7 & 8

10. Collection Charge 8

11. Non-Sufficient Funds Charge 8

Held For Future Use 9-12

12. Curtailment and Interruption 13-14

Held For Future Use 15-19

Texas Gas Tariff “RS‑1” 20

Texas Gas Tariff “CS‑2” 21

Texas Gas Tariff “IS‑3” 22-24

Texas Gas Tariff “TS‑4” 25-27

Held For Future Use 28-49

Rates 50

Gas Cost Adjustment Factor 51

Held For Future Use 52

Base Rate Cost of Gas Per Last Rate Case 53

Transportation Rates 54

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 3

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

1. APPLICATION OF RATES

(A) GENERAL

A copy of all rates, rules, and regulations under which service will be supplied is posted or filed for the convenience of the public in the offices of the Company and with the Indiana Utility Regulatory Commission.

A written application for gas service on forms provided for the purpose, or properly executed contract, may be required from the customer before service will be supplied. The Company shall have the right to reject, for any valid reason, any application for service. A written application for the installation of gas fired equipment on forms provided by the Company are required from all customers and no such equipment shall be used by the customer prior to inspection of the installation by the Company.

No promises, agreements, or representation of any agent or employee of the Company shall be of binding force upon the Company unless the same shall be incorporated in the application or contract for service.

The rate schedules of the Company contemplate that service will be supplied to each separate premise as one customer. The gas used by the same individual, entity, or corporation at different premises shall be separately measured and billed. In no case may gas be shared with another or transmitted off the premises at which it is delivered.

If service is taken on more than one meter on the same premises for the convenience of the customer, the gas registered on each meter will be billed separately. Where service is taken on more than one meter on the same premises for the convenience of the Company, the gas registered on each meter will be added and billed as one customer.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 4

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

(Continued)

(B) RESALE OF GAS

Gas furnished by the Company is for the sole use of the customer and shall not be resold by him except on permission obtained from the Company. The renting of premises with the cost of gas service included in the rental as an incident of tenancy will be considered a resale of such service with payment of all rates, charges, and costs incurred the responsibility of the owner of the premises.

The Company reserves the right, with respect to customers with large or unusual requirements of gas, or whose establishments are remote from the Company’s existing suitable facilities, to determine in the Company’s sole discretion whether service shall be provided and if provided, then pursuant to a contract with the customer. Such a contract to determine the provision of necessary service facilities, duration of service, minimum bill, or other service conditions consistent with these rules, regulations, rates, and charges.

2. CHARACTER OF SERVICE

The Company does not guarantee but will endeavor to furnish a continuous supply of gas. The Company shall not be liable for loss or damage which the customer may sustain by reason of the failure of the service whether caused by accidents, repairs, or other causes, or incurred by the use of gas or appliances or presence of the Company’s property on the customer’s premises. Nor shall the Company be held liable for loss or damage occurring under or by virtue to the exercise of authority or regulation by governmental, military, or lawfully established civilian agencies, or due to conditions or causes beyond the Company’s control.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 5

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

(Continued)

3. SERVICE CONNECTIONS

Service connection shall be made at the Company’s expense if no unusual demands or requirements are made by the customer or the customer location and if the estimated revenue from the estimated sale of gas to the customer for a three year period commencing within a reasonable period of time following installation of such service exceeds the cost of installation. Easements for the installation of facilities and the operation and maintenance of facilities shall be provided by the customer to the Company at no cost.

The Company will own and maintain all service pipes from the street main to the meter installation, even though the customer is required to contribute to the cost of the original installation. The facilities installed by the Company shall run to the location determined appropriate by the Company following discussion with the customer.

Where relocation of service connections, or of other equipment of the Company installed upon the customer’s premises, becomes necessary because of the customer’s requirements, the cost of all changes made necessary thereby shall be borne by the customer.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 6

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

(Continued)

4. METERS AND METERING EQUIPMENT

The customer shall provide, free of expense to the Company and close to the point of service entrance, suitable space for the installation of the Company’s metering equipment. The customer shall permit only authorized agents of the Company, or other lawfully authorized persons, to inspect, test, or remove the same. If the meters or metering equipment are damaged or destroyed through the neglect of the customer, the cost of necessary repair or replacement shall be paid by the customer.

Whenever a meter fails to register the amount of gas supplied during any period, an estimated bill will be rendered based upon the use during similar periods or on other available information in accordance with the rules and regulations of the Indiana Utility Regulatory Commission.

5. CUSTOMER’S PIPING AND UTILIZATION EQUIPMENT

The customer shall install and maintain his piping and appliances in the condition required by the insurance and governmental authorities having jurisdiction and in a manner approved by the Company. The Company shall be under no duty to inspect the piping and equipment of the customer.

6. ACCESS TO CUSTOMER’S PREMISES

The Company’s authorized agents shall have access to the customer’s premises at all reasonable hours to install, inspect, ready, repair, or remove its meters and other property, and to inspect the appliances installed on the customer’s premises.

7. DEPOSIT REQUIRED

The Company may require the customer to make a reasonable cash deposit with the Company as security for payment of bills, as authorized by the rules and regulations periodically promulgated or amended by the Indiana Utility Regulatory Commission

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 7

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

(Continued)

8. METER READING AND BILLING

Meters will be read and bills rendered monthly. When the Company is unable to read the meter due to physical conditions, the bill for the month will be estimated on the basis of past service records or other available data. Bills rendered for gas service in months in which meters are not read shall have the same force and effect as those based on actual readings. Any customer who does not desire to receive an estimated bill may read his meter and send the readings to the Company on appropriate forms which will be provided by the Company.

9. DISCONTINUANCE OF SERVICE‑RECONNECTION CHARGE-AFTER HOURS RECONNECTIONS

The customer is responsible for the payment of bills until service is ordered discontinued and the Company has had a reasonable time for securing a final meter reading. If a bill remains unpaid after the final date shown thereon, the Company shall then have the right to discontinue service to the delinquent customer after 14 days prior written notice as authorized by the rules and regulations periodically promulgated or amended by the Indiana Utility Regulatory Commission.

The Company may also discontinue service after 14 days prior written notice upon violation of any of the Company’s rules or regulations of which these General Terms and Conditions are a part; provided, however, that where fraudulent use of gas is detected or where the Company’s regulating or measuring equipment has been tampered with or where a dangerous condition is found to exist on the customer’s premises, service may be shut off without notice in advance.

A charge of $25.00 will be made for all disconnections to cover the cost of disconnection.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 8

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

(Continued)

A charge of $25.00 will be made for reconnecting a meter for the same customer on the same premises when service has been previously discontinued for violation of the Company’s rules as set forth above.* This charge is in addition to the disconnect charge and is collected to cover the cost for reconnection.

A charge of $25.00 will also be made for re‑establishing service for the same customer at the same premises where service had been discontinued at the customer’s request, other than temporary interruption, during the preceding twelve months.* This charge is in addition to the disconnect charge and is collected to cover the cost for reconnection.

*After hours reconnection when customer demands reconnection that can only occur after 5:00 p.m. shall be charged at $40 in lieu of $25 reconnection charges. This will apply after customer is advised of this higher charge, demands reconnection still occur that day and where company personnel necessary to make such reconnections are available. This charge is in addition to the disconnect charge and is collected to cover the cost of after-hours reconnection.

10. COLLECTION CHARGE

A charge of $25.00 will be made for collection of unpaid bills in lieu of disconnection, if Company personnel are at customer premises for purposes of disconnection of service. Company personnel will only collect on customer premises when on location to discontinue service for nonpayment.

11. NON-SUFFICIENT FUNDS CHARGE

A charge of $10 plus any bank charges incurred by the Company will be made where any check is delivered by a customer to the Company and thereafter returned to the Company for insufficient funds in such account by the customers’ bank. This charge shall be in addition to any and all other charges of the Company and is collected to cover the Company’s cost in handling such returned check.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 13

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

(Continued)

12. CURTAILMENT AND INTERRUPTION

The Company shall have the right to curtail and interrupt deliveries from its system under the following conditions and in the following manner:

A. Operating curtailment or interruption due to weather conditions or force majeure may be ordered by the Company at any time if, in the Company’s opinion, it is necessary for the proper conduct of its business. Interruption or curtailment shall be upon such notice as is reasonable under the circumstances.

B. In the event of a gas supply deficiency, curtailment may be ordered by the Company at any time when, in the opinion of the Company, the natural gas supply needed for authorized and contractual deliveries to its customers is not available without overrun, excess tax, or other such penalty from the Company’s pipeline suppliers. In the event of such curtailment, the Company shall give such notice of the proposed curtailment as is reasonable under the circumstances. Such gas supply deficiency curtailment shall be applied in the following order and in the following manner, to the extent practicable:

1. Deliveries under Tariff IS‑3 and/or Tariff TS-4 as appropriate, for Interruptible Natural Gas Service shall be first in order of curtailment.

2. Deliveries under Tariff CS-2 to customers under Company’s Commercial Service Rate; provided, however, where only partial curtailment is necessary in any one of the above classes or priority, the Company will endeavor to apportion the gas available for the curtailed class as equitable as possible among the customers of said class.

3. Deliveries under Tariff CS-2 to schools and public buildings shall be next in order of curtailment.

4. Deliveries under Tariff CS-2 to human needs customers to‑wit; nursing homes, convalescent homes, and hospitals without emergency fuel supplies shall be at the discretion of the Company.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 14

GENERAL TERMS AND CONDITIONS

APPLICABLE TO ALL GAS SERVICE

(Continued)

5. Deliveries under Tariff RS-1 to customers under Company’s General Service Rate shall be last in order of curtailment.

6. Provided, however, where only partial curtailment is necessary in any one of the above classes or priority, the Company will endeavor to apportion the gas available for the curtailed class as equitable as possible among the customers of said class.

C. Procedures in the event of non‑compliance of paragraph A and B above shall be as follows:

1. Without regard to any other remedy provided by law or by the provisions hereof, Company shall be entitled to seek an order from the Commission or any other appropriate tribunal requiring compliance with curtailment or interruption ordered by Company in compliance with these Tariffs or any directive from any Governmental authority having jurisdiction in the premises.

2. All volumes taken in violation of Company’s curtailment or interruption orders shall constitute unauthorized excess takes, for which an adjustment may be added for each DEKATHERM of excess gas thus taken sufficient to recover all costs and expenses of the company including but not limited to attorney fees, and all costs and charges applied by the pipeline supplier.

D. The terms and conditions contained in these Rules and Regulations shall apply notwithstanding any provisions contained in any agreement between Company and Customer. The Tariffs hereinabove referred to are those rates so designated in the Company’s rate schedule as shall be on file with the Indiana Utility Regulatory Commission.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003
PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 20

TARIFF RS‑1

RESIDENTIAL GAS SERVICE

AVAILABILITY:

Available for residential natural gas customers served from supplies purchased from Texas Gas Transmission Corporation. Customer must be located on Company’s gas mains suitable and adequate for supplying this service. Service to residential customers shall be to single-dwelling residences that are individually metered for natural gas consumption for heating, cooling, cooking, drying, water heating, lighting and automobile fueling.

RATE:

See Sheet No. 50 and Sheet No. 51.

MINIMUM CHARGE:

The minimum monthly charge shall be the service charge as reflected on Sheet No. 50. Such charge includes no gas volumes.

DEFERRED PAYMENT CHARGE:

On the first $3.00 or less of net billing................................................................................................ 10%

On the amount in excess of $3.00........................................................................................................ 3%

Bills shall be rendered and due monthly. If paid within 17 days from date thereof, as stated in the bill, the net amount shall be paid. If not paid within such 17 days, the gross bill which includes the deferred payment charge is the amount to be paid.

OTHER TERMS AND CONDITIONS:

Service hereunder shall be subject to the Company’s Rules and Regulations and to the Rules and Standards of Service for Gas Public Utilities prescribed by the Indiana Utility Regulatory Commission from time to time.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003
PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 21

TARIFF CS‑2

COMMERCIAL & PUBLIC AUTHORITY GAS SERVICE

AVAILABILITY:

Available for commercial and public authority natural gas customers served from supplies purchased from Texas Gas Transmission Corporation. Customer must be located on Company’s gas mains suitable and adequate for supplying this service. Service to commercial and public authority customers shall be to individually metered customers for natural gas consumption for heating, cooling, cooking, drying, water hearing, lighting, and automobile fueling and to a multi-dwelling residential unit that is collectively metered.

RATE:

See Sheet No. 50 and Sheet No. 51.

MINIMUM CHARGE:

The minimum monthly charge shall be the service charge as reflected on Sheet No. 50. Such charge includes no gas volumes.

DEFERRED PAYMENT CHARGE:

On the first $3.00 or less of net billing................................................................................................ 10%

On the amount in excess of $3.00........................................................................................................ 3%

OTHER TERMS AND CONDITIONS:

A written contract with a minimum term of one year may be required for establishment of service under this rate schedule.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 22

TARIFF IS‑3

INTERRUPTIBLE NATURAL GAS SERVICE

AVAILABILITY:

Available for interruptible natural gas customers served from supplies delivered by Texas Gas Transmission Corporation electing interruptible service. Available for natural gas service to customers that utilize natural gas for manufacturing and/or processing a product along with ancillary uses of natural gas. Customer must be located on Utility’s gas main suitable and adequate for supplying this service.

APPLICABILITY AND CHARACTER OF SERVICE ‑ CURTAILMENTS

This schedule shall apply to all gas sold and delivered to the customer hereunder and all such gas shall be metered and billed separately from any other class of service rendered to the customer by the Company. No burner, apparatus, appliances, or equipment supplied with gas under the terms of any other gas supply arrangement with the Company shall be piped or connected in a manner which will permit the customer to operate from the gas delivered under this schedule, and no burners, apparatus, appliances, or equipment to be supplied with gas delivered under this schedule shall be piped or connected in a manner which will permit the customer to operate from gas delivered under any other gas supply arrangement with the Company.

Gas delivered hereunder shall be natural gas of approximately 1000 BTU content per cubic foot.

With respect to all service rendered hereunder in the period from November 1 to March 31 of any year, in the event of a diminution for any reason whatsoever (including, but not limited to, the demands of its customers served under any other rate schedule of the Company or the inability of the Company to obtain further gas from its supplier without penalty charges) of the Company’s available supply of gas to meet the requirements of its customers purchasing gas under any other rate schedule of the Company, and all customers purchasing gas under this schedule shall, upon receipt of notice from the Company of such diminution, curtail their use of gas hereunder to such extent and during such periods as the Company may require in order to enable the Company to give gas service priority to such other customers purchasing gas on a firm basis.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003
PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 23

TARIFF IS‑3

INTERRUPTIBLE NATURAL GAS SERVICE

(Continued)

METERING - INSPECTION:

For billing purposes, where gas is metered at low pressure (inches of water column) a cubic foot of gas shall be taken to be the amount of gas in a volume of one cubic foot under the conditions existing in the customer’s meter as and where installed. Where gas is metered at higher pressures (psig), the volume of gas measured shall be corrected to correspond to a saturated gas of standard conditions at any absolute pressure of 30 inches of ice‑cold mercury and at a temperature of 60 degrees Fahrenheit.

The properly authorized agents of the Company shall at all reasonable hours have free access to the premises of the customer for the purpose of inspecting the customer’s gas appliances and of reading, examining, repairing, or removing the Company’s meters or other property and for determining the extent of compliance with the terms of this schedule.

CONTRACT TERM:

Each Service Contract shall be for a term of one (1) year and shall specify the period during such year when service shall be furnished thereunder; provided, however, that in cases where the Company is required to make a substantial special investment in facilities to furnish the service requested or where the customer desires a longer term contract, the initial term shall be for such period as the parties shall agree upon. Each Service Contract shall continue in effect thereafter for successive terms of one (1) year each unless written notice of intention to terminate is given by either party to the other at least sixty (60) days before the end of the term.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 24

TARIFF IS‑3

INTERRUPTIBLE NATURAL GAS SERVICE

(Continued)

RESERVED RIGHT TO LIMIT ADDITIONAL CONTRACTS:

This schedule is predicated on the availability to the Company of a sufficient natural gas supply to enable service hereunder to be made available during a major portion of each year without impairment of service to other customers. The Company, therefore, reserves the right to decline acceptance of any additional contracts for service hereunder at such a time as in the Company’s judgment, the volume of service currently under contract equals the gas supply available for this class of service.

RATE:

See Sheet No. 50 and Sheet No. 51.

DEFERRED PAYMENT CHARGE:

All bills will be rendered and due monthly. To all such bills not paid within seventeen days, beginning and including the due date, there will be added deferred payment charges as follows: Bills of $3.00 or less, 10% of amount of bill, bills over $3.00, an amount equal to 10% of the first $3.00, plus 3% of the excess of such bill over $3.00.

OTHER TERMS AND CONDITIONS:

Service subject to Company’s General Terms and Conditions.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 25

TARIFF TS‑4

TRANSPORTATION GAS TO END‑USERS

AVAILABILITY:

(1) To customers served with Gas Requirements of 100 DTH per day.

(2) Available to applicable customers who, by written contract with the Utility, agree to acquire natural gas, obtain all necessary state and federal regulatory approval, and arrange to have such gas delivered by the Utility’s pipeline supplier to a delivery point on the Utility’s system for transportation and delivery to the customer’s premises.

(3) All transportation service rendered by the Utility shall be subject to curtailment or complete interruption whenever, in the sole judgment of the Utility, it is necessary or desirable, and as provided in contract hereinafter referred to.

(4) The Utility, with the written consent of the customer, may execute an agreement with the Utility’s pipeline supplier, as agent of the customer, for transportation of gas for the customer.

CONTRACT FOR TRANSPORTATION SERVICE:

The customer requesting transportation service by the Utility shall enter into a written contract with the Utility, which said contract shall provide for quantities of gas to be transported, penalties, the term thereof and other conditions of service agreed upon between customer and the Utility. Each such contract shall provide further that Utility will be held harmless by the customer against any increases in its monthly demand charges and any overrun quantity charges or penalties by reason of any failure or refusal of customer to curtail quantities of transported gas, after timely curtailment requests made by the Utility.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 26

TARIFF TS‑4

TRANSPORTATION GAS TO END‑USERS

(Continued)

CHARACTER OF SERVICE:

The gas transported shall be the same character as the Utility’s pipeline supplier is required to furnish to the Utility.

RATE:

See Sheet No. 54.

OTHER CHARGES AND CONDITIONS OF SERVICE:

In any billing month in which the Utility receives customer transported gas for a customer’s account, the customer shall be billed for all gas delivered through the customer’s meter during such month under the customer’s applicable transportation rate schedule.

When a customer takes transportation service under this rate tariff, his billing cycle will be adjusted to a calendar month basis, with meters read on the first day of each month. Normally, a customer will receive a credit for his gas on the first bill issued after the Utility receives a bill from its pipeline supplier which contains a credit for the customer’s gas delivered to the Utility’s system during the month. However, if at the time customer’s bill is prepared, the Utility has not received a bill from the pipeline showing a credit for customer‑owned gas, a credit will be given if the Utility can determine transported volumes by telephone data from the pipeline. Any discrepancies will be made on a revised or subsequent bill to the customer.

In the event quantities of gas received by the Company on behalf of the customer are found to be less than the quantity of gas actually used by the customer, the customer agrees to pay for that quantity of gas at the applicable Tariff under which the customer is provided gas service.

Such gas service under this rate schedule is subject to physical constraints of the Company’s system and the General Terms and Conditions.

EXCESS VOLUMES OF CUSTOMER‑OWNED GAS (BANKED GAS):

Receipts of natural gas by the Utility that are in excess of quantities delivered to customer will be cashed out monthly. No “banking” of gas will be permitted. Cash-out volumes will be priced according to the customer transportation agreement referred to on Sheet No. 25.

Deliveries of natural gas by the Utility that are in excess of quantities received for customer will be billed to the customer at the current tariff rates in effect for the month of delivery.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003
PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 27

TARIFF TS‑4

TRANSPORTATION GAS TO END‑USERS

(Continued)

It is the customer’s responsibility to not purchase more gas than needed. No interest will be paid to the customer for any excess received by the Utility.

BEST EFFORTS BASIS:

Such gas service under this Rider is hereby provided on a Best Efforts Basis by the Utility and is subject to physical constraints of the Utility’s system.

DEFERRED PAYMENT CHARGE:

On the first $3.00 or less of net billing................................................................................................ 10%

On the amount in excess of $3.00........................................................................................................ 3%

OTHER TERMS AND CONDITIONS:

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 50

RATES

SYSTEM

TARIFF RS‑1

SERVICE CHARGE 8.00

0‑100 therms 0.955731/therms

greater than 100 therms 0.86893/therms

TARIFF CS‑2

SERVICE CHARGE 16.00

0‑100 therms 0.890031/therms

greater than 100 therms 0.789531/therms

TARIFF IS‑3

all therms 0.80953/therms

Above rates are subject to a gas cost adjustment factor in accordance with the Indiana Utility Regulatory Commission, Cause No. 37091 approved May 14, 1986. This gas cost adjustment factor currently in effect and applicable hereto with effective dates is found on Sheet No. 51 of these tariffs.

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003

PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 51

RATE TRACKING FACTOR ADJUSTMENT

The Gas Cost Adjustment Factor is as approved by Cause No. 37440 GCA-86 or as amended.

CURRENT TRACKING FACTOR

	Aug 2007 Approved	Sep 2007 Approved	Oct 2007 Approved	Nov 2007 Approved	Dec 2007 Approved	Jan 2008 Approved
TARIFF A	$0.23514/Therm	$0.23514/Therm	$0.23514/Therm	$0.26430/Therm	$0.26430/Therm	$0.26430/Therm
TARIFF B	$0.23514/Therm	$0.23514/Therm	$0.23514/Therm	$0.26430/Therm	$0.26430/Therm	$0.26430/Therm
TARIFF C	$0.23514/Therm	$0.23514/Therm	$0.23514/Therm	$0.26430/Therm	$0.26430/Therm	$0.26430/Therm
TARIFF D	$0.23514/Therm	$0.23514/Therm	$0.23514/Therm	$0.26430/Therm	$0.26430/Therm	$0.26430/Therm

ISSUED: April 28, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003
PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 53

BASE RATE COST OF GAS

The rate base cost of gas utilized in the calculation of the Gas Cost Adjustment rates specified on Sheet No. 51 and in accordance with the Order of the Indiana Utility Regulatory Commission in Cause No. 42247 is as follows:

Tariff Base Rate Cost of Gas/therms

RS‑1 .673988/therms

CS‑2 . 673988/therms

IS‑3 . 673988/therms

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003
PEOPLES GAS & POWER COMPANY, INC. (operating as a division of IURC NO. G‑1

Midwest Natural Gas Corporation) SHEET NO. 54

TRANSPORTATION RATES

Tariff Rate

TS‑4 .1077/therms

ISSUED: March 24, 2003 EFFECTIVE: May 1, 2003

ISSUED BY: DAVID A. OSMON, EXECUTIVE VICE PRESIDENT

Base rates as approved, Cause No. 42247, February 5, 2003