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. 328 Second Revised Sheet No. 328 : Effective

Superseding: First Revised Sheet No. 328

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

and within three (3) Business Days, unless

waived by Transporter, will either provide new

information to Shipper or reconfirm its prior

information. Transporter will rely on its

information to take such actions as are

appropriate and necessary to operate its system.

(6) To the extent that adjustments are made to

Monthly Imbalance quantities for prior periods

after Shipper has eliminated such quantities in

accordance with the provisions of this Section

5.7(c)(ii), unless otherwise agreed, such

adjusted Imbalance amounts shall be eliminated

at a factor of 1.00 multiplied by the applicable

Daily Index Price(s) for the Day(s) on which

such Imbalances were incurred. No penalty

should be imposed when a prior period adjustment

applied to the current period causes or

increases a current penalty.

(7) Payment of any penalties or fees for Imbalances

pursuant to this Tariff shall not be construed

to in any way entitle or authorize Shipper to

incur any Imbalance under any Service Agreement.

(d) Required Balancing: Subject to and in accordance with the

provisions of Section 20, if and when Transporter determines

that an Imbalance has exceeded the Operating Range,

Transporter shall have the right to interrupt or curtail at

any time, and from time to time, the quantities of Gas it

will receive or deliver to the extent Transporter deems

necessary in order to limit or reduce the Imbalance existing

at any time. Transporter shall provide such notice as is

provided for in said section. Transporter shall not apply

this provision in an unduly discriminatory manner, nor in a

manner contrary to the Commission's Regulations. Nothing in

the foregoing shall supersede or negate the general

obligation of Shippers to correct any Imbalance