Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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Effective Date: 01/01/2001, Docket: RP96-200-062, Status: Effective

Second Revised Sheet No. 8K Second Revised Sheet No. 8K : Superseded

Superseding: First Revised Sheet No. 8K

STATEMENT OF NEGOTIATED RATES

 

Contract Rate Firm Contract

Shipper Name Number Schedule Quantities (1) Receipt Point(s) Delivery Point(s) Rate

------------------- ----------- ----------- ---------------- ------------------- ------------------- ----------------

Reliant Energy Arkla, 1019 FT 141,380 Dth/D See Sheet No. 8K.01 See Sheet No. 8K.01 See (2) - (4) below

a division of Reliant 1019 NNTS 47,280 Dth/D

Energy Resources Corp. 0031 FSS 2,507,000 Dth - 55,160 Dth/D

 

(1) Contract Demand (FT), Contract Delivery Demand (NNTS), Maximum Storage Quantity (FSS) and Maximum Deliverability Quantity (FSS), respectively.

(2) Annualized base rate amount paid for reserved capacity and services utilized up to applicable Contract Limitations under all three (3) contracts: $15,300,000

(each Year or pro rata for partial Year.) Shipper required to pay, in addition to base rate amount, any charges imposed on gas companies by legislative/regulatory

action not presently reflected in Transporter's cost of service. Shipper not required to pay surcharges or add-ons to base rate amount attributable to: GRI (so long

as voluntary and discountable prior to other components), ACA, adjustments for discounts or contract reductions, Order No. 528 and Order No. 636 transition cost

surcharges. Following each Contract Year, calculation made of total amount paid for eligible services and true-up payment/credit made if amount collected varies from

applicable base rate amount for Year or part thereof. Base rate amounts to be adjusted on pro rata basis to reflect changes in firm quantities per agreements.

(3) Rate applicable to specified receipt/delivery points, including any existing/future city gate delivery points established for Shipper in Oklahoma. If any other

changes to primary points or Receipt Entitlements or if use points outside Oklahoma, unless otherwise agreed, then the maximum Tariff rate applies thereafter for all

quantities under the Agreements. If use secondary points located in Oklahoma, then maximum rate applies for maximum quantity used on any Day and for entire Month.

(4) Shipper waives rights to receive any credits or benefits from rates, refunds, penalties or other revenues which would provide Shipper a greater economic benefit,

or a lower effective rate, than the negotiated rates structure.

(5) Shipper has right to reduce applicable firm quantities (and reduce applicable base rate amount) if one of its customers currently served via the contracts bypasses

Shipper and/or contracts for firm service on Transporter which replaces service from Shipper.

(6) As of the effective date of an order issued by the OCC requiring gas companies subject to its jurisdiction to unbundle gas services, Shipper and Transporter shall

seek to establish a new base rate amount to be effective 180 days after said date, with such new rates to be established in each service area category established by

Transporter based on publicly available rates then being charged by other intrastate or interstate pipelines transporting gas in the general geographic proximity of the

service area category and which are providing service comparable to that being provided by Transporter. If such rates are not publicly available, then the current

rates shall continue in effect or, if there is no other viable pipeline provider for a particular service area category, then the rates shall be the Tariff maximum

applicable rates. If the rates established by the foregoing are unacceptable to either party, then it should so notify the other. If Transporter so advises, then

Shipper shall put the load out to bid; Transporter may bid but shall have no obligation to continue to provide service for that load. If Shipper so advises, then

Shipper can terminate that load but Transporter can maintain it by agreeing to continue service at the unit rates applicable under the previous base rate amount.

(7) If, following the effective date of any unbundling order in Oklahoma, Transporter initiates discussions with and contracts to provide transport or storage

services to customers which were previously traditional sales customers of an Oklahoma regulated intrastate pipeline, then Shipper may be required to put up for bids

by third parties a portion of its load served under contracts with Transporter equal to the quantity of firm capacity such new customers transfer to Transporter.

Activities conducted by Transporter in compliance with its open-access obligations under FERC regulations will not trigger this provision.

(8) If Shipper releases capacity, Shipper will receive credit for demand charges paid by replacement shipper up to the then-effective demand charge payable by

Shipper for capacity released.

(9) Pursuant to GT&C Section 15, Transporter will provide as of November 1, 2001, on a not unduly discriminatory basis, additional flexibility under FSS and NNTS

services: limited waiver to provide twenty-four (24) hours notice to bring on incremental flowing gas supplies pursuant to Rate Schedule NNTS, Section 3.4; under Rate

Schedule FSS, waive the Minimum Monthly Withdrawal Quantity for the month of November, limited waiver to permit the Working Gas Quantity remaining at end of Storage

Contract Year to be up to thirty percent (30%) of Working Gas Quantity as of prior November 1, and limited waiver to suspend the Maximum Daily Withdrawal Quantity

ratchet in Rate Schedule FSS, Section 6.2(c)(i).