Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 02/28/2003, Docket: RP03-239-000, Status: Effective

Original Sheet No. 496 Original Sheet No. 496 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

shall become effective, and (ii) the difference, if

any, between twelve (12) and the number of Months

represented in (i); after which

(d) Transporter shall design the CSC Rate Credit

applicable to each relevant period as follows:

(i) for the Initial Recovery Year, by dividing the

amount determined pursuant to paragraph (c)(i)

above, by the product derived by multiplying 68.58

Tbtu's times the same number of Months used in the

calculation in paragraph (c)(i) above; and (ii) for

the number of Months during the second Recovery

Year that the CSC Rate Credit shall remain in

effect, by dividing the amount determined pursuant

to paragraph (c)(ii) above by the same amount of

throughput for the corresponding Months used in

determining the CSC Charge applicable to the same

period pursuant to Section 18.3.2(b); provided,

however, that at no time shall the CSC Rate Credit

be greater than the corresponding CSC Charge then

in effect.

18.4.3 By March 1, 1993, and March 1, 1994, respectively,

Transporter shall calculate for the previous calendar

year the difference, if any, between the total amount

anticipated to be credited through the CSC Rate Credit

during such period and the amount imputed to be credited

due to differences between design throughput and actual

throughput. Such calculations shall be made using the

same procedures as are provided at Section 18.7.1 hereof.

In the event of an overcredit, the difference shall be

included as an element of factor "C" in the calculation

of the relevant Annual Recovery Amount in the same manner

as other, similar amounts due Transporter; in the event

of an undercredit, the difference shall be included as an

element of factor "D" in the calculation of the relevant

Annual Recovery Amount in the same manner as other,

similar amounts owed by Transporter. In the event that

for any given period the CSC Rate