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. 505 Original Sheet No. 505 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

jurisdictional transportation and sales tariffs for

the same period of the customer directly served by

Transporter which is attributable to the indirect

customer by (B) for the same period, the sum of (1)

all volumes delivered off of Transporter's system

pursuant to Transporter's generally available

jurisdictional transportation and sales tariffs, and

(2) all non-jurisdictional sales made by Transporter.

(c) Relevant Absorption Level -- The sum of (i) the total

amount of CSC absorbed by Transporter pursuant to the

25% absorption obligation provided at Section 18.8(b)

up to and including the time of the filing of the

Subject Eligible CSC being challenged (which amount

shall include the additional amount absorbed as a

result of such filing); (ii) the extent, if any, to

which the relevant Subject Eligible CSC being

challenged are absorbed by Transporter as a result of

the cap provided at Section 18.8(c)(4); and (iii) the

extent, if any, to which the relevant Subject

Eligible CSC being challenged later are absorbed by

Transporter as a result of the three cents (3¢) per

Dth caps provided at Sections 18.3.1(b), 18.3.2(b),

and 18.7.1. In making the determination of the extent

to which the relevant Subject Eligible CSC have been

absorbed by Transporter pursuant to the provisions of

(ii) and (iii), all Subject Eligible CSC shall be

ranked according to date of their initial filing

pursuant to the provisions of Section 18.6.1, with

those filed earlier in time considered to be the first

to be recovered pursuant to the CSC Charge and those

filed later in time considered to be the first to be

excluded from recovery (and, therefore, absorbed) as a

result of the relevant caps. If any portion of the

amount absorbed can not be determined as of the date

of the Commission's final order on such challenge

because of the inability