Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 03/18/2010, Docket: RP10-383-000, Status: Effective

First Revised Sheet No. 408 First Revised Sheet No. 408

Superseding: Original Sheet No. 408

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

To the extent that any unresolved Net

Undersupplies Quantity remains thereafter,

the same process will be repeated, using

the Day with an aggregate imbalance

comprised of Undersupplies and the next

highest Daily Index Price for such Month,

and the same premium factor, and so forth,

until the entire Net Undersupplies

Quantity has been resolved.

C. If a Shipper has a Net Imbalance quantity

of 500 dth or less, such Imbalance amount

shall be eliminated using the procedures

set forth in A. or B. above as applicable,

however no premium or discount factors

will be applied.

(2) A. Transporter may use proceeds received from

cash-outs in accordance with

Section 5.7(c)(ii) to purchase, at any

time and from time to time, quantities of

Gas for system operation purposes. Gas

purchased by Transporter pursuant to this

Section 5.7(c)(ii)(2)A. may be utilized by

Transporter to satisfy such operational

requirements as are necessary on its

system from time to time, or may be

disposed of by sale. Transporter shall

establish accounts in which to book

payments made to or by Transporter under

the procedures specified in this Section

5.7.