Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 02/25/2009, Docket: RP09-261-000, Status: Effective

Second Revised Sheet No. 539 Second Revised Sheet No. 539

Superseding: First Revised Sheet No. 539

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

(k) Whether contingent bids that extend beyond the bid period

may be submitted, how to evaluate and prioritize such bids

against non-contingent bids, and whether, the terms and

conditions under which, and/or for what time period, the

next highest bidder will be obligated to acquire the

capacity should the winning contingent bidder withdraw its

bid;

(l) Any extensions of the minimum posting/bid periods;

(m) Whether releasing Shipper desires to utilize the first-come,

first-served option for short-term releases of thirty-one

(31) Days or less described in Section 19.4 below and any

minimum terms applicable thereto;

(n) If releasing Shipper does not wish to receive notifications

regarding replacement Shipper's creditworthiness (as

described in Section 19.8(d) below), a statement to that

effect;

(o) Other special terms and conditions Shipper imposes on the

release of its capacity, including minimum rates, term,

quantity, information required by Section 284.8(h) of the

Commission's regulations, etc.; and

(p) Releasing Shipper may specify dollars and cents or

percentages of the applicable rate as the denomination for

bids in its offer to release, and bids submitted must

comport with the releasing Shipper's specification.

A Shipper may withdraw its offer to release by providing

electronic notice to Transporter of such withdrawal, which

notice must be received by Transporter prior to the close of

the applicable bid period; provided, however, such withdrawal

shall only be valid if such Shipper has an unanticipated

requirement for such capacity and no bid meeting the minimum

requirements imposed in the offer has been made. The notice

must contain the reason for withdrawal which Transporter shall

post on its Internet Web Site.

19.2 Pre-arranged Releases. Shipper may designate an entity (a pre-

arranged designated replacement Shipper) to which it has agreed

to release the capacity upon specified terms and conditions.