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. 502 Original Sheet No. 502 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

(c) Eligibility Caps:

(1) Transporter shall not be permitted to recover in

the aggregate through the CSC Charge any more than

75% of a total amount of $310 million.

(2) Transporter shall not be permitted to recover

through the CSC Charge any more than 75% of a total

amount of $127 million with respect to CSC which

were paid by Transporter to producers on or before

December 1, 1991, and against which as of such date

Transporter had no later right of offset or

recoupment.

(3) Transporter shall not be permitted to recover

through the CSC Charge any more than 75% of a total

amount of $120 million with respect to CSC which

are to be paid to producers subsequent to December

1, 1991, pursuant to the terms of agreements in

effect on such date and against which, as of the

time of payment, Transporter will have no later

right of offset or recoupment. With respect to any

given Recovery Year, in its annual March 1 filing

Transporter shall include as the Annualized

Recovery Portion applicable to any payments made

under any such agreements only the sum of:

(A) the lower of (i) the amount contemplated to

be paid for the twelve (12) Month period

preceding Transporter's annual March 1 filing

(or, in the case of the Initial CSC Charge,

the amount contemplated to be paid prior to

March 1, 1992) under the terms of the

relevant agreement as in effect on

December 1, 1991, or (ii) the amount actually

paid for the twelve (12) month period

preceding Transporter's annual March 1

filing; plus