Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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

Original Sheet No. 509 Original Sheet No. 509 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

thereafter. Within seven (7) Days after receiving the

Challenger's responses, Transporter shall serve any

follow up data requests to which the Challenger shall

respond within an additional seven (7) Days. Within

forty-five (45) Days after its receipt of the

Challenger's responses to its follow-up data requests

or, if no follow-up data requests are served,

forty-five (45) Days after responses would have been

due pursuant to the above-described schedule,

Transporter shall file its rebuttal case in chief

regarding prudence with the Commission. The Chief

Administrative Law Judge, or any other Administrative

Law Judge whom the Chief Administrative Law Judge from

time to time may designate during the term of the

Recovery Period, shall oversee and resolve any

disputes arising out of this discovery process. If

such disputes arise, the ALJ designated to resolve

such disputes shall be permitted to modify the

schedule otherwise provided herein as may be

appropriate and reasonable to accommodate the hearing

and resolution of such disputes, provided, however,

that in making such modifications the ALJ shall be

guided by the desire for expedition reflected by these

procedures.

(d) Hearing: Once each person has filed its respective

case in chief, the trial on the issue of prudence

shall proceed in accordance with the procedural

schedule established by the Presiding Administrative

Law Judge. Because Transporter has agreed to absorb

25% of its CSC "up front", a presumption of prudence

shall attach to all CSC for which Transporter is

seeking recovery. Accordingly, any person challenging

prudence will bear the ultimate burden of persuasion

in order to demonstrate that any CSC incurred by

Transporter and for which it has sought recovery were

imprudent.