Rate Schedule TF-1 Service Agreement

Contract No. 136463


THIS SERVICE AGREEMENT (Agreement) is made and entered into on February 15, 2008,
by and between Northwest Pipeline GP (Transporter) and Puget Sound Energy, Inc. (Shipper).

WHEREAS:

APursuant to the procedures set forth in Section 22 of the General Terms and Conditions of Transporter's FERC Gas Tariff, Shipper acquired certain transportation capacity that was temporarily released by Puget Sound Energy, Inc. from contract 100056.


THEREFORE, in consideration of the premises and mutual covenants set forth herein, Transporter and Shipper agree as follows:

1. Tariff Incorporation. Rate Schedule TF-1 and the General Terms and Conditions (GT&C) that apply to Rate Schedule TF-1, as such may be revised from time to time in Transporter's FERC Gas Tariff (Tariff), are incorporated by reference as part of this Agreement, except to the extent that any provisions thereof may be modified by non-conforming provisions herein.

2. Transportation Service. Subject to the terms and conditions that apply to service under this Agreement, Transporter agrees to receive, transport and deliver natural gas for Shipper, on a firm basis. The Transportation Contract Demand, the Maximum Daily Quantity at each Primary Receipt Point, and the Maximum Daily Delivery Obligation at each Primary Delivery Point are set forth on Exhibit A. If contract-specific OFO parameters are set forth on Exhibit A, whenever Transporter requests during the specified time period, Shipper agrees to flow gas as requested by Transporter, up to the specified volume through the specified transportation corridor.

3. Transportation Rates. Shipper agrees to pay Transporter for all services rendered under this Agreement at the rates set forth or referenced herein. Reservation charges apply to the Contract Demand set forth on Exhibit A. The maximum currently effective rates (Recourse Rates) set forth in the Statement of Rates in the Tariff, as revised from time to time, that apply to the Rate Schedule TF-1 customer category identified on Exhibit A, will apply to service hereunder unless and to the extent that discounted Recourse Rates or awarded capacity release rates apply as set forth on Exhibit A or negotiated rates apply as set forth on Exhibit D. Additionally, if applicable under Section 21 of the GT&C, Shipper agrees to pay Transporter a facility reimbursement charge as set forth on Exhibit C.

4. Transportation Term. This Agreement becomes effective on the date first set forth above. The primary term begin date for the transportation service hereunder is set forth on Exhibit A. This Agreement will remain in full force and effect through the primary term end date set forth on Exhibit A and, if Exhibit A indicates that an evergreen provision applies, through the established evergreen rollover periods thereafter until terminated in accordance with the notice requirements under the applicable evergreen provision.

5. Non-Conforming Provisions. All aspects in which this Agreement deviates from the Tariff, if any, are set forth as non-conforming provisions on Exhibit B. If Exhibit B includes any material non-conforming provisions, Transporter will file the Agreement with the Federal Energy Regulatory Commission (Commission) and the effectiveness of such non-conforming provisions will be subject to the Commission acceptance of Transporter's filing of the non-conforming Agreement.

6. Capacity Release. If Shipper is a temporary capacity release Replacement Shipper, any capacity release conditions, including recall rights, are set forth on Exhibit A.

7. Exhibit Incorporation. Exhibit A is attached hereto and incorporated as part of this Agreement. If Exhibits B, C and/or D apply, as noted on Exhibit A to this Agreement, then such Exhibits also are attached hereto and incorporated as part of this Agreement.

8. Regulatory Authorization. Transportation service under this Agreement is authorized pursuant to the Commission regulations set forth on Exhibit A.

9. Superseded Agreements. When this Agreement takes effect, it supersedes, cancels and terminates the following agreement(s): None

IN WITNESS WHEREOF, Transporter and Shipper have executed this Agreement on February 15, 2008.

Puget Sound Energy, Inc. Northwest Pipeline GP
By: /S/ By: /S/ 
Name: PAUL WIEGAND Name: DAVE MADSEN 
Title: VP POWER GENERATIONTitle: MANAGER NWP MARKETING SERVICES


EXHIBIT A
(Dated February 15, 2008, Effective February 15, 2008)
to the
Rate Schedule TF-1 Service Agreement
(Contract No. 136463)
between Northwest Pipeline GP
and Puget Sound Energy, Inc.

(Releasing Shipper/Contract No.: Puget Sound Energy, Inc. / 100056)
SERVICE DETAILS

1. Transportation Contract Demand (CD): 15,000 Dth per day

2. Primary Receipt Point(s):
Point ID Name Maximum Daily Quantities (Dth)
80GREEN RIVER GATHERING15000
Total15000


3. Primary Delivery Point(s):
Point ID Name Maximum Daily Delivery Obligation (Dth) Delivery Pressure (psig)
188STANFIELD DELIVERY15000450
Total15000


4. Customer Category:

a. Large Customer
 
b. Incremental Expansion Customer: No


5. Transportation Rates:

a. Awarded Reservation Charge (per DTH of CD):
Maximum Base Tariff Rate, plus applicable surcharges
 
b. Volumetric Charge (per Dth):
Maximum Base Tariff Rate, plus applicable surcharges
 
c. Awarded Additional Facility Reservation Surcharge pursuant to Section 3.4 of Rate Schedule TF-1 (per Dth of CD):
None
 
d. Volumetric Charge Rate Discount Conditions Consistent with Section 3.5 of Rate Schedule
    TF-1:
Not Applicable


6. Transportation Term:
Begin Date: March 01, 2008
Nomination Cycle: Timely
End Date: October 31, 2018


7. Contract-Specific OFO Parameters: None.

8. Regulatory Authorization: 18 CFR 284.223

9. Additional Exhibits:
Exhibit B No
Exhibit C No


10. Standard Capacity Release Conditions:

a. Releasing Shipper's recall rights:
i.Released capacity may be recalled prior to the Evening nomination cycle applicable to the initial day of the capacity recall.
 
ii.The notification day for the capacity recall may be on any day
 
iii.Recall provisions in Section 22.2(a)(2) of the General Terms and Conditions of Transporter's Tariff also apply:Yes
 
b. Reput rights: Yes
 
c. Primary Receipt Point may be changed through amendment: No
 
d. Primary Delivery Point may be changed through amendment: No
 
e. Re-releasable: Yes


11. Additional Capacity Release Conditions pursuant to Section 22.2(u) of the GT&C: None