Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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

Original Sheet No. 501 Original Sheet No. 501 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

(a) Eligibility Challenges: Any person shall be entitled to

challenge the eligibility for recovery either under Order

No. 528, as interpreted, modified or waived by the

Commission from time to time, or under the provisions of

this Tariff, of any of the costs which Transporter

proposes to recover in any CSC Charge. Such challenge

may include any amount of newly-submitted CSC, all or any

portion of which is reflected for the relevant year as an

element of factors "A" or "D" in the calculations

contemplated by Section 18.6.1. In the event that upon

any challenge to eligibility the Commission determines

that any amount proposed to be recovered by Transporter

is not eligible for recovery, then Transporter shall

eliminate such amount from the calculation of the

relevant charge. Eligibility challenges to the Initial

CSC Charge must be filed by the later of (i) twenty (20)

Days following the date that this section shall first

become effective, or (ii) March 20, 1992. Eligibility

challenges to a redetermined CSC Charge shall be as

provided in the Commission's notice of the filing of the

proposed charge. Persons considering whether to file a

protest regarding eligibility shall be permitted to

review all materials filed with the Commission or

otherwise made available under this Tariff, including any

materials made available as a result of Section 18.9.2(a)

hereof, provided that the person seeking review shall

first agree to be bound by all relevant provisions

regarding the confidential treatment of such materials.

The results of eligibility challenges are not subject to

the provisions of Section 18.9.

(b) "Up Front" Absorption: Transporter shall absorb and not

seek to recover through the CSC Charge twenty-five

percent (25%) of each dollar of CSC.