Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

Effective Date: 06/01/2002, Docket: RP00-482-003, Status: Effective

Second Revised Sheet No. 339 Second Revised Sheet No. 339 : Effective

Superseding: First Revised Sheet No. 339

GENERAL TERMS AND CONDITIONS

(continued)

Transporter shall be entitled to require that any request for

service under Rate Schedules HFT, FT, NNTS, RSS and FSS be

accompanied by a prepayment in an amount equal to the Reservation

Fees or Charges, or the Deliverability and Capacity Fees, as

applicable, which would be due for the first Service Month for

such requested service. Upon commencement of service, a

prepayment provided pursuant to the foregoing shall be credited to

Shipper's initial bill. Transporter shall return the prepayment if

it rejects the request or when the Service Agreement terminates.

Should the requesting party fail to cooperate in the processing of

its request in a timely manner or withdraw its request, the amount

shall be forfeited to Transporter.

10.4 Requests For Interruptible Service. Complete requests for

interruptible service by a Shipper willing and able to pay the

maximum rate for such service, in accordance with this Tariff,

will be reviewed on a first-come, first-served basis according to

the date of Transporter's receipt of such request. Initial

requests for interruptible service shall be accepted, for purposes

of offering a Service Agreement, if Transporter determines,

following its review and evaluation of a completed request, that

excess capacity may exist from time to time to perform the

requested services on an interruptible basis. Transporter shall

use the scheduling procedures as prescribed in Section 5 of these

General Terms and Conditions to allocate capacity for

interruptible services. For purposes of the foregoing, a Shipper

willing and able to pay a Negotiated Rate for such service will be

subject to the provisions of Section 12.3 below.

10.5 Requests for Discounted Service. Transporter shall consider and

evaluate complete requests for service at less than the applicable

maximum rate(s) submitted by Shippers. However, Transporter shall

not be obligated to agree to provide any services at a discounted

rate and may reject any request which would require it to provide

a discounted rate or accept other terms and conditions which it

determines are not acceptable. Transporter shall not apply this

provision in an unduly discriminatory manner, nor in a manner

contrary to the Commission's regulations.