Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 09/01/2005, Docket: RP05-513-000, Status: Effective

First Revised Sheet No. 578 First Revised Sheet No. 578 : Effective

Superseding: Original Sheet No. 578

GENERAL TERMS AND CONDITIONS

(continued)

21. PRE-GRANTED ABANDONMENT AND CESSATION OF SERVICE (continued)

section and upon Transporter's submission of a Service

Agreement based upon the bid terms.

The potential Shipper shall submit a deposit or prepayment

pursuant to Sections 10 or 14 of these General Terms and

Conditions, as required by Transporter, within twenty-four (24)

hours of receipt of notice from Transporter that it submitted the

best bid. If the bid is successful and service to such party

commences, such payment shall be treated as provided in the

applicable Section. If the bid is successful but the bidding

Shipper fails to execute a Service Agreement in conformance with

its bid, Transporter may retain the payment in addition to any

other remedies to which it may be entitled. If the existing

Shipper matches the bid and continues its service, Transporter

will return to the potential Shipper the payment. Transporter may

reject all bids which would require Transporter to discount below

a rate and discount term acceptable to Transporter.

21.6 Best Bids. For purposes of this section, the best bid shall be

that bid which generates the highest net present value, using a

10% discount factor, based on the rate bid (reservation or demand

component), the applicable quantity(ies) and term or period bid

upon.

21.7 Failure to Execute. Failure of the existing Shipper to execute

and return the new Service Agreement (in the same format in which

it was tendered) within fifteen (15) Days of receipt shall

constitute an irrevocable waiver of such Shipper's right to match

the bid; provided, however, Shipper shall not be required to match

a rate higher than the maximum rate chargeable by Transporter for

delivery to such Shipper's Point(s) of Delivery.

21.8 Lack of Conforming Bids. If Transporter does not receive any bids

pursuant to these provisions, or Transporter rejects all bids

received pursuant to Section 21.5 above, Transporter shall so

notify the existing Shipper within ten (10) Days following the