Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-206-000, Status: Effective

Fourth Revised Sheet No. 683 Fourth Revised Sheet No. 683

Superseding: Third Revised Sheet No. 683

GENERAL TERMS AND CONDITIONS

(continued)

31. PENALTY REVENUE CREDITING.

31.1 General: The Shipper Penalty Revenue Credit(s) to be made by

Transporter shall be calculated in accordance with this section.

31.2 Definitions: The definitions of terms applicable to this section

are as follows:

Penalty Base Period shall mean the twelve Months (or part thereof)

ended the previous July 31.

Daily Linked Firm Service Penalty Revenues shall mean the total

amount collected by Transporter from an FT-2 Shipper (penalty

revenues) for all penalty amounts owed by the FT-2 Shipper under

the terms of its Service Agreement due to its failure to nominate

and/or flow its MFO(s) on a particular Day during the Penalty Base

Period, less the costs incurred by Transporter in relation to the

actions of the FT-2 Shipper on that Day necessitating a penalty

(penalty costs).

Daily Linked Firm Service Penalty Revenue Credit shall mean the

amount, stated in dollars, for a given Day during the Penalty Base

Period to be received by an individual Linked Firm Service Shipper

that, under the terms of its Service Agreement for Linked Firm

Service capacity in effect during the Penalty Base Period, was

unable to flow all or a portion of its Linked Firm Service

capacity nominated for that Day during the applicable Timely

Nomination Cycle due to the failure of a linked FT-2 Shipper to

nominate or take and/or tender its MFO on such Day. The Daily

Linked Firm Service Penalty Revenue Credit for a Linked Firm

Service Shipper shall be determined for a particular Day by

allocating the Daily Linked Firm Service Penalty Revenues

associated with a particular MFO of an FT-2 Shipper for that Day

among all Linked Firm Service Shippers affected on that Day by the

FT-2 Shipper's failure to meet that particular MFO pro rata based

on the amount of the Linked Firm Shippers' nominations during the

Timely Nomination Cycle that did not get scheduled or were

curtailed that Day due to the actions of the linked FT-2 Shipper

to the total volume of Linked Firm Service capacity that did not

get scheduled or was curtailed that Day due to the actions of the

linked FT-2 Shipper.

Shipper Penalty Revenue Credit shall mean the credit amount, other

than and excluding Daily and Total Linked