Trco Backhaul Rates

I left a message for the manager of Transco's Rates Department to call me.
If I'm reading this correctly, the forwardhaul and the backhaul commodities
are the same now. In Jan, the "true backhaul" rate from Zone 6 to Zone 4 was
$.0448 plus surcharges, today its $.3037 plus surcharges. We actually did
some deals based on the backhaul rate of $.0448 for the summer.

I suppose its too late, is there anyway this could be postponed until
October, after the summer period?

Media Inquiries: Chris Stockton
(713) 215-2010
Other Inquiries: Rate Dept. 1-800-248-0404, Option #7January 29, 2001

To: Transcontinental Gas Pipe Line Corporation Customers and
Shippers

Re: FT and IT Rates effective February 1, 2001

On January 24, 2001, the Commission issued an order in Docket
Nos. RP97-71-020 and RP97-71-021 which, among other things,
approved the pro forma tariff sheets included with the filing.
The Commission's order also directed Transco to file actual
tariff sheets to be effective February 1, 2001. Transco intends
to file the revised tariff sheets with the Commission on February
1, 2001. If accepted as proposed, outlined below for your
convenience are Transco=s Rate Schedule FT and IT rates effective
February 1, 2001.

Summary of Rate Schedule FT Demand Maximum Rates
(Excluding Surcharges)

Demand Rates ($/Dt)
Del. Zone

Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6
Rec. Zone

Zone 1 2.1284 2.7625 3.6820 7.0221 9.4933 10.8315
Zone 2 2.7625 2.2262 3.1457 6.4858 8.9570 10.2952
Zone 3 3.6820 3.1457 2.5116 5.8517 8.3229 9.6611
Zone 4 7.0221 6.4858 5.8517 4.9322 7.4034 8.7416
Zone 5 9.4933 8.9570 8.3229 7.4034 4.0633 5.4015
Zone 6 10.8315 10.2952 9.6611 8.7416 5.4015 2.9303

Zone 4A (Mobile Bay) Demand Rate $2.4072

Commodity Rates (cents/Dt)
Del. Zone

Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6
Rec. Zone

Zone 1 0.24 0.50 0.75 1.86 2.74 3.20
Zone 2 0.50 0.30 0.55 1.66 2.54 3.00
Zone 3 0.75 0.55 0.29 1.40 2.28 2.74
Zone 4 1.86 1.66 1.40 1.15 2.03 2.49
Zone 5 2.74 2.54 2.28 2.03 0.92 1.38
Zone 6 3.20 3.00 2.74 2.49 1.38 0.50

Zone 4A (Mobile Bay) Commodity Rate 0.34

Summary of Rate Schedule IT Commodity Maximum Rates
(Excluding Surcharges)

Commodity Rates (cents/Dt)
Del. Zone

Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6
Rec. Zone

Zone 1 06.37 08.72 12.00 24.10 33.10 37.96
Zone 2 08.72 06.76 10.04 22.14 31.14 36.00
Zone 3 12.00 10.04 07.69 19.79 28.79 33.65
Zone 4 24.10 22.14 19.79 16.51 25.51 30.37
Zone 5 33.10 31.14 28.79 25.51 13.41 18.27
Zone 6 37.96 36.00 33.65 30.37 18.27 09.27

Zone 4A (Mobile Bay) Commodity Rate 7.39

For additional information please contact your Customer Service
Representative or Rate Department Representative.

Charlotte Hutson
Manager - Rate Department
(713)215-4060