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

Third Revised Sheet No. 409 Third Revised Sheet No. 409

Superseding: Second Revised Sheet No. 409

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

B. Transporter shall calculate the total net

revenues or net costs attributable to the

cash-out provisions of this Tariff for

each 12 Month period ending January 31,

beginning with the 12 Month period ending

January 31, 1996 ("Accrual Period"),

including interest, in accordance with

Section 154.501 of the Commission's

regulations, on the appropriate amounts

calculated from the end of the Accrual

Period to the end of the calendar quarter

in which the adjustment for such Accrual

Period is made.

The resulting amount, defined as the

"Cash-Out Excess Revenues" or the "Cash-

Out Remaining Costs", as applicable, shall

be netted in accordance with the procedure

set out in Section 23.7, hereof, to

determine the amount of Cash-Out Crediting

Revenues, if any. Transporter then shall

allocate any such Cash-Out Crediting

Revenues between an FT Credit Account and

an IT Credit Account based on the ratio of

Rate Schedule FT, FT-2, EFT and NNTS to

Rate Schedule IT throughput quantities

during the last Month of the Accrual

Period.

To determine the IT Cash Balancing Revenue

Credit,