24.3     Credit Exposure means an amount equal to:  (1) in the case of
Firm Service to Customers whose service commences with the first day of
authorized operation of  Caledonia s facilities, reservation charges for
twelve (12) Months or the duration of the Customer s bid or Service Agreement,
whichever is shorter, at the rate specified in Customer s bid for service or
Service Agreement; (2) for Firm Service to Customers taking service from
expansion facilities and whose service commences on the first day of
authorized operation of those facilities, an amount determined by Caledonia
prior to the start of construction that is not less than the amount set forth
in subsection (1) of this Section 24.3, but reasonable in light of the risks
of the construction project, not to exceed Customer s proportional share of
the cost of the facilities to be constructed (which amount shall be reduced as
Customer pays off the obligation for construction of new facilities); (3) in
the case of Firm Service to all other Customers, reservation charges for three
(3) Months or the duration of the Customer s bid or Service Agreement,
whichever is shorter, at the rate specified in Customer s bid for service or
Service Agreement; or (4) in the case of Advanced Interruptible Storage or
Loan Service and Interruptible Storage or Loan Service, charge(s) for service
for three (3) Months or the duration of the Customer s Service Agreement,
whichever is shorter, calculated on a one hundred percent (100%) load factor
basis, plus, as applicable, the Market Value of any quantities of Gas provided
to the Customer through a loan or negative storage balance.
   
     24.4     "Market Value of Gas" means the Customer s Interruptible Loan
Balance for service under Rate Schedule ILS or the Customer s Advanced
Interruptible Loan Balance for service under Rate Schedule AILS, as
applicable, multiplied by the sum of the NYMEX Henry Hub Swap, as posted on
the www.nymex.com web site, for the period under which the loaned gas is 
scheduled to be returned pursuant to the Customer s AILS or ILS Service
Agreement, plus the maximum transportation charges for interruptible
transportation service on Tennessee Gas Pipeline Company under Rate Schedule
IT from TGPL 500 line Zone SL to Zone 1, as set forth in Tennessee Gas
Pipeline s currently effective FERC Gas Tariff, including all applicable
charges, surcharges, fees, and fuel under Rate Schedule IT, multiplied by the
Customer s Interruptible Loan Balance or Advanced Interruptible Loan Balance,
as applicable.  Caledonia shall calculate Customer s Market Value of Gas at
the time service is first requested under Rate Schedule ILS or Rate Schedule
AILS, as applicable, and thereafter may recalculate Customer s Market Value of
Gas from time to time but not more frequently than a daily basis.
   
     24.5     "Unsecured Collateral Limit" means the maximum amount of credit
that Caledonia will extend to a Customer pursuant to Rate Schedules AILS or
ILS without Customer providing Financial Assurances pursuant to this Section
24, based on the Customer s Credit Rating, as provided in the table
below: