Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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

Original Sheet No. 506 Original Sheet No. 506 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

reasonably to predict the extent to which Transporter

actually will absorb during future periods all or any

portion of the relevant Subject Eligible CSC as a

result of the three cents (3¢) per Dth caps specified

in Sections 18.3.1(b), 18.3.2(b), and 18.7.1, then any

calculations of any related credits or payments

initially shall be made without respect to such

portion. Thereafter, within thirty (30) Days of the

date on which it becomes certain that such portion in

fact shall be absorbed by Transporter, any such

calculations of any related credits or payments shall

be adjusted to reflect the absorption of such

additional amount, together with interest on the

previously unreflected portion accrued from the date

of the Commission's final order on the challenge, and

appropriately revised statements or rates shall be

issued or implemented.

(d) Subject Eligible CSC -- The total amount of newly-

submitted Eligible CSC, all or any portion of which is

reflected for the relevant year as an element of

factor "A" or "D" in the calculations contemplated by

Section 18.6.1.

(e) Threshold Difference -- The difference between the

applicable Relevant Absorption Level, and the total

amount of CSC, if any, with respect to which as of the

date of the filing of the challenged CSC the

Challenger has paid or is paying direct bills as a

consequence of any previous unsuccessful challenge.

18.9.2 Procedure.

(a) Supporting Data: Simultaneous with the filing each

year of the CSC Charge (other than the Initial CSC

Charge), Transporter will establish a repository in

Washington, D.C. where relevant information regarding

the total amount of Subject Eligible CSC