Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

Third Revised Sheet No. 311 Third Revised Sheet No. 311 : Effective

Superseding: Substitute Second Revised Sheet No. 311

GENERAL TERMS AND CONDITIONS

(continued)

5.5 Delivery Nominations and Scheduling (continued)

(ii) If, following the scheduling of all firm service in

accordance with Section 5.5(f)(i) above, sufficient

capacity remains to provide interruptible service

nominated under this Section 5.5, including Overrun

Gas under firm rate schedules, such service shall be

scheduled and prioritized and based on Transporter's

determination of the economic value of the requested

services, taking into account the highest product of

rate and quantity, the operational impact and

maximization of system utilization. In the event more

than one Shipper requests services determined to be of

equivalent economic value, capacity will be allocated

pro rata based on each Shipper's nomination.

(iii) If, for any applicable time period during a Service

Month, following the scheduling of all firm and

interruptible service in accordance with Sections

5.5(f)(i) and (ii) above, sufficient capacity remains

to allow properly nominated elimination of Imbalances

which were incurred within such Service Month under a

Service Agreement, such correction shall be scheduled

by Transporter as follows:

(1) highest priority shall be given to such

elimination of Imbalances incurred during such

Service Month as a result of compliance with

Section 20; and

(2) priority shall next be given to any other such

elimination of Imbalances incurred during such

Service Month.

(iv) (1) Shippers under the scheduling priority described

in Section 5.5(f)(i)(2) which are utilizing a

Delivery Point as a Secondary Delivery Point are