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

Fourth Revised Sheet No. 312 Fourth Revised Sheet No. 312 : Effective

Superseding: Third Revised Sheet No. 312

GENERAL TERMS AND CONDITIONS

(continued)

5.5 Delivery Nominations and Scheduling (continued)

subject to interruption at such Delivery Point

at the beginning of any Day by any Shipper under

a Service Agreement pursuant to Rate Schedule FT

which designates or has designated such point a

Primary Delivery Point under its Service

Agreement, up to such Shipper's effective MDO.

(2) Shippers under the scheduling priority category

described in Section 5.5(f)(ii) and (iii) are

subject to interruption at any time by a

Shipper under Rate Schedule NNTS and RSS (for

withdrawals only) and at the beginning of any

Day by any Shipper under a Service Agreement

pursuant to Rate Schedules FT, HFT, or FSS, as

applicable, and Shippers under the scheduling

priority described in Section 5.5(f)(ii) and

(iii) are further subject to interruption at

the beginning of any Day by any Shipper under a

Service Agreement pursuant to Rate Schedules

IT, PHS (wheeling) or ISS, as applicable, that

agrees to pay Transporter a rate of greater

economic value to Transporter as provided in

Section 5.5(f)(ii) above, than the existing

Shipper is paying or has agreed to pay for

service under its Service Agreement. In order

to avoid interruption based on rate pursuant to

the foregoing provisions, a Shipper may agree

to pay the maximum rate to retain service or,

if Shipper so elects, Transporter will notify

Shipper of the higher offer (by telephone or

telecopy or electronically via the Internet)

and to retain service the Shipper who receives

interruptible service at selectively discounted

rates must notify Transporter of its agreement

to pay a rate equal to that being offered by

such other Shipper and such notice must be

received by Transporter (by telephone or

telecopy or electronically) by 2:00 p.m. of

such Day.