Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 02/28/2003, Docket: RP03-239-000, Status: Effective

Original Sheet No. 247 Original Sheet No. 247 : Effective

RATE SCHEDULE SBS

SHORT-TERM BALANCING SERVICE

(continued)

2. APPLICABILITY AND CHARACTER OF SERVICE (continued)

2.2 Service hereunder shall consist of:

(a) the short-term advance delivery (i.e., prior to the

injection of equivalent quantities for Shipper's account

into Transporter's system) of Gas by Transporter for

Shipper's account at Point(s) of Delivery, and the

subsequent return of the advanced Gas ("Advance Delivery");

and

(b) the short-term advance receipt of Gas by Transporter at

Point(s) of Receipt and the subsequent (one or more Days)

delivery for Shipper's account at the Point(s) of Delivery

("Advance Receipt"),

all such services to be in accordance with a Service Agreement.

2.3 Service under this Rate Schedule shall be subject to interruption

(decrease, suspension or discontinuation), in whole or in part, at

any time. Transporter shall have no obligation to provide

services hereunder for or during any Day, if it determines that to

do so may interfere with its ability to provide services under

other Rate Schedules (firm or interruptible) of this Tariff or to

meet its other obligations or that to do so may have an adverse

effect on Transporter's operations.

2.4 Shipper's Service Agreement shall designate whether Shipper may

receive Advance Delivery or Advance Receipt services, or both,

under this Rate Schedule and the applicable Maximum Advance

Receipt or Delivery Quantity(ies).

2.5 Any particular Advance Receipt or Advance Delivery services

provided under this Rate Schedule shall be for a period of at

least one Day to no more than thirty (30) Days, but such period

may be extended if Transporter agrees. When Shipper schedules

delivery of Gas in its Advance Receipt account, all such

quantities shall be deemed as having been received at the Receipt

Point(s) at which the Advance Receipt Gas entered Transporter's

system. Shipper shall be obligated to return all quantities of

Gas advanced by