§ 1. Definitions:

(a)

"Base Year" means the fiscal year ending September 30, 1998.

(b)

"Base Year Franchise Fee Factor" means the total franchise fees paid during the Base Year divided by the Design Day Capacity as recorded by the Company on the last day of the Base Year.

(c)

"Design Day Capacity" means the sum of the individual capacity of dekatherms (Dt) attributable to all firm customers located within the city limits of the City, as of the last day of the previous fiscal year.

(d)

"Firm Customers" means all residential and business customers who purchase gas service that ordinarily is not subject to interruption or curtailment.

(e)

"Fiscal Year" means the 12 months ending September 30, of each year.

(f)

"Inflation Index" means the percentage change in the Consumer Price Index for all Urban Consumers as published by the Bureau of Labor Statistics, or a successor index, for the period from September 30, 1997, to the beginning of the then current fiscal year. The percentage shall be reduced by any productivity factor adjustment for the same period determined by the Georgia Public Service Commission for the Company.