Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

Effective Date: 12/01/2002, Docket: RP03- 60-000, Status: Effective

Second Revised Sheet No. 216 Second Revised Sheet No. 216 : Effective

Superseding: First Revised Sheet No. 216

RATE SCHEDULE PHS

PERRYVILLE HUB SERVICE

(continued)

2. APPLICABILITY AND CHARACTER OF SERVICE (continued)

(b) park and loan service shall have a lower priority than all

services, including those under Rate Schedule IT, other than

service under Rate Schedule SBS, which shall have an equal

priority, and except that the priority for the return of

loaned Gas when required by Transporter shall be subordinate

only to service under Rate Schedules NNTS, FT, RSS

(withdrawals) and HFT at primary points.

If Transporter cannot satisfy all requests for park and loan

services, or continue such services already scheduled, under

this Rate Schedule and Rate Schedule SBS, Transporter shall

assign capacity, schedule and/or curtail services hereunder

using the same priorities and methods as are provided for

other interruptible service in Sections 5 and 10 of the

General Terms and Conditions.

2.10 Shipper's Service Agreement under this Rate Schedule PHS shall

designate the Maximum Aggregate Quantity ("MAQ") to be parked

and/or loaned at any one time under the transaction, and any other

quantity limitations applicable to the transaction, e.g., daily,

monthly. Each borrowing and parking transaction shall be

accounted for and tracked separately, even if occurring

contemporaneously. Shipper's nomination for parking and loaning

activities must designate the applicable point(s), quantities

applicable thereto, and Service Agreements, if applicable. When

Shipper schedules removal of Gas in its parked account, if

nominated to be transported or received into Pools on

Transporter's system, Transporter may deem all such quantities as

having been received at the point(s) at which the parked Gas

entered Transporter's system and Shipper shall also specify the

applicable points(s) at which the prior parking occurred. When

Shipper desires to eliminate an Imbalance consisting of

Oversupplies under a Service Agreement, if Transporter accepts and

schedules any such nomination under this Rate Schedule, then such

Gas may be deemed parked at the point(s) at which it initially

entered Transporter's system.