Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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

First Revised Sheet No. 540 First Revised Sheet No. 540

Superseding: Original Sheet No. 540

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

Shipper's offer to release under such a pre-arranged transaction

shall be subject to the prior posting and bidding procedures

described in Sections 19.3 - 19.4 below, with the pre-arranged

designated replacement Shipper being given a right to match the

best bid submitted during the bid period. The following pre-

arranged transactions with a designated replacement Shipper may be

implemented without complying with such prior posting and bidding

procedures:

(a) A pre-arranged release for a term greater than one year that

is for the maximum tariff rate;

(b) A pre-arranged release for a term of 31 days or less; and

as defined in Section 284.8(h)(3) of the Commission's

regulations, or a marketer participating in a state-

regulated retail access program as defined in Section

284.8(h)(4) of the Commission's regulations. Releases under

this subsection (c) must contain the information required by

such regulations, including the volumetric level of the

replacement Shipper's delivery or purchase obligation and

the time periods during which that obligation is in effect.

Notice of such exempted releases, if releases are non-standard, or

subject to special terms and conditions, shall be posted on

Transporter's Internet Web Site as soon as practicable, but no

later than two (2) Business Days after the transaction commences.

If releasing Shipper desires to upload, via Transporter's Internet

Web Site or electronic data interchange, pre-arranged releases,

all such releases must be valid and complete. The replacement

Shipper shall initiate confirmation of its pre-arranged release

electronically.