Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 09/01/2005, Docket: RP05-513-000, Status: Effective

Third Revised Sheet No. 456 Third Revised Sheet No. 456 : Effective

Superseding: Second Revised Sheet No. 456

GENERAL TERMS AND CONDITIONS

(continued)

12. RATES, TERMS AND CONDITIONS (continued)

12.5 Discounts.

If Transporter agrees to a discounted rate under Transporter's

Rate Schedules, the following terms may be agreed to without

constituting a material deviation from Transporter's applicable

pro forma Service Agreement; provided, however, any such rate or

component thereof, as set forth in items (i) through (vii), shall

not be less than Transporter's applicable minimum rate, nor

greater than Transporter's applicable maximum rate. Such rate may

apply:

(i) to specified quantities under Shipper's Service

Agreement(s);

(ii) to quantities above or below a certain level or all

quantities if quantities exceed a certain level;

(iii) in a specified relationship to quantities actually

transported (i.e., that the rates shall be adjusted in a

specified relationship to the quantities actually

transported);

(iv) during specified periods of the year or over specifically

defined periods of time;

(v) to specified receipt points, delivery points, zones,

Pooling Areas, transportation routes, markets or other

defined geographical areas; and/or

(vi) to production reserves, supplies or markets committed by

Shipper.

(vii) to rates based on published index prices for specific

receipt or delivery points or other agreed-upon published

pricing reference points for price determination (such

discounted rate may be based on the differential between

published index prices or arrived at by formula). Such

discounted rate: (1) shall not change the underlying rate

design; (2) shall not include any minimum bill or minimum

take provision that has the effect of guaranteeing revenue;

and (3) shall, in each Service Agreement entered into

pursuant to this Section 12.5 (vii), define the rate

component(s) to be discounted.