Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

First Revised Sheet No. 349B First Revised Sheet No. 349B : Effective

Superseding: Original Sheet No. 349B

GENERAL TERMS AND CONDITIONS

(continued)

12. RATES, TERMS AND CONDITIONS (continued)

transaction is not similarly situated to the applicable discount

transaction for such combination. If Shipper's request

hereunder is granted, Shipper shall pay the higher of its

contractual discount rate or the discount rate provided to

another similarly situated transaction utilizing the new

combination of points. If Shipper's request hereunder is

granted, and thereafter, there ceases to be a similarly situated

discounted transaction at such combination of points, then such

Shipper shall no longer retain a discount at such combination of

points.

(iii) Shipper may request to retain its point-specific discounted

rate at a new Receipt and Delivery point combination by faxing

a request to Transporter to the fax number and person

designated on Transporter's Internet Web Site from time to

time. Such request shall be clearly labeled a "Request for

Expedited Discount Retention" and shall contain such

information as specified on Transporter's Internet Web Site.

Upon thirty (30) Days' notice via posting on its Internet Web

Site, Transporter may require Shippers to make such requests

and provide supporting documentation therefor electronically

via the Internet. Transporter shall respond on a reasonable

efforts basis to requests received after 8:00 a.m. CCT and

before 4:00 p.m. CCT on a Business Day within two (2) hours of

the time the request is received. If requests are received on

non-Business Days, Transporter shall respond on a reasonable

efforts basis by 10:00 a.m. on the next Business Day. If

requests are received between the hours of 4:00 p.m. CCT and

8:00 a.m. CCT on Business Days, Transporter shall respond on a

reasonable efforts basis by 10:00 a.m. CCT. If Shipper has

previously requested to retain a discounted rate at the same

combination of points pursuant to this provision and

Transporter has not agreed, Transporter shall have no

obligation to respond to a renewed request to retain a discount

hereunder unless rates for service at that combination have

changed since such prior request.