Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 07/01/2007, Docket: RP07-475-000, Status: Effective

Second Revised Sheet No. 455 Second Revised Sheet No. 455 : Effective

Superseding: First Revised Sheet No. 455

GENERAL TERMS AND CONDITIONS

(continued)

12. RATES, TERMS AND CONDITIONS: (continued)

The following procedure shall be used to file all negotiated rate

contracts. Transporter shall file all negotiated rate contracts with

the Commission no later than the Business Day on which Transporter

commences service at a negotiated rate (or if the day on which

Transporter commences such service is not a Business Day, then the next

Business Day after Transporter commences such service).

12.4 Policy with Respect to Order of Discounting.

In accordance with Section 154.109(c) of the Commission's regulations,

rate components will be discounted in the following order:

(a) Firm Services

(i) Transporter shall discount the components of reservation

charges in the following order:

Base Rate reservation charge;

Account No. 858 or other Order No. 636 transition

cost surcharges (if applicable);

and

GSR reservation surcharge (if applicable).

(ii) Commodity charges shall be discounted in the

following order:

Order No. 528 CSC surcharge; and

ACA surcharge (if applicable).

(b) Interruptible Services

The commodity charges for interruptible service shall be

discounted in the following order:

Base Rate commodity charge;

Order No. 528 CSC surcharge; and

ACA surcharge (if applicable).