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. 420 First Revised Sheet No. 420

Superseding: Original Sheet No. 420

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

and within three (3) Business Days, unless

waived by Transporter, will either provide new

information to Shipper or reconfirm its prior

information. Transporter will rely on its

information to take such actions as are

appropriate and necessary to operate its system.

(6) To the extent that adjustments are made to

Monthly Imbalance quantities for prior periods

after Shipper has eliminated such quantities in

accordance with the provisions of this Section

5.7(c)(ii), unless otherwise agreed, such

adjustments shall be processed as follows:

A. If, as a result of a prior period

adjustment, Shipper's revised Monthly

Imbalance quantity is still subject to

assessment of a premium or discount

factor, only the adjusted quantities will

be eliminated at a factor of 1.00

multiplied by the applicable Daily Index

Price(s) for the Day(s) on which such

imbalances were incurred.

B. If, as a result of a prior period

adjustment, Shipper's revised Monthly

Imbalance quantity is no longer subject to

assessment of a premium or discount

factor, then the amount associated with

such premium or discount factor will be

reversed such that the revised Monthly

Imbalance quantity is eliminated at a

factor of 1.00 multiplied by the

applicable Daily Index Price for the

Day(s) on which such Imbalance(s) were

incurred.

No penalty should be imposed when a prior period

adjustment applied to the current period causes

or increases a current penalty.