Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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

Original Sheet No. 503 Original Sheet No. 503 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

(B) interest on the amount determined pursuant

to (A) calculated in accordance with

Section 18.10 hereof from the date of

actual payment to the following April 1.

To the extent that in any given year, the amount

determined pursuant to (A)(ii) is lower than the

amount determined pursuant to (A)(i), then the $120

million cap otherwise applicable hereunder shall be

further reduced by such difference.

(4) Transporter shall not be permitted to recover

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

amount of $63 million with respect to CSC which is

not within the categories established by (2) and

(3) above.

(d) Effect of Disallowance on Caps: If the Commission

determines that any amount proposed to be recovered by

Transporter through the CSC Charge permanently is not

eligible for recovery during the Recovery Period, then

the eligibility caps in (c) relevant to such amount shall

be reduced by the amount deemed permanently ineligible

for recovery.

(e) Exclusion of Interest: Only the principal amount of CSC

for which Transporter seeks recovery through the CSC

Charge shall be used in calculating the extent to which

Transporter is over or under the eligibility caps

provided in (c).

(f) Challenges to Prudence: Prudence challenges shall not be

considered as eligibility challenges and shall be

governed solely by Section 18.9.

(g) Coordination With Mega-NOPR: All CSC which Transporter

proposes to recover through its jurisdictional services

and which are attributable to changes in Transporter's

gas purchase and sales markets occurring prior to