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

Second Revised Sheet No. 319 Second Revised Sheet No. 319 : Effective

Superseding: First Revised Sheet No. 319

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

Net

Imbalance

Quantity Level Under- Over-

(Percentage supplies supplies

of Total Premium Discount

Deliveries) Factor Factor

0% to =10% 1.00 1.00

>10% to =15% 1.10 .90

>15% to =20% 1.20 .80

>20% to =25% 1.30 .70

>25% 1.40 .60

(1) In the event of a Net Oversupplies Quantity,

Transporter shall have the option of crediting or

offsetting other outstanding amounts owed or to

be owed to Transporter by Shipper, or making a

cash payment in the specified amount for such Net

Oversupplies Quantity, or any combination

thereof. Otherwise, Transporter shall give

Shipper the option of electing to receive a cash

payment from Transporter. In the case of a cash

payment by Transporter, Transporter shall send

such payment ten (10) Days after Shipper notifies

Transporter that it elects to receive a cash

payment. In the event of a Net Undersupplies

Quantity, the amount to be paid to Transporter

shall be due within ten (10) Days after the date

of the invoice.