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. 351 Second Revised Sheet No. 351 : Effective

Superseding: First Revised Sheet No. 351

GENERAL TERMS AND CONDITIONS

(continued)

14. PAYMENTS:

14.1 Invoicing and Payment.

(a) Transporter shall have the right to invoice Shipper each

Month (as may be adjusted for invoicing or measurement cycle

purposes) for all purposes on the basis of nominated

quantities or estimated quantities, provided that

adjustments shall be made to such quantities in subsequent

Months' invoicing based on actual quantities, as

appropriate. Transporter's invoices will be prepared no

later than nine (9) Business Days after the close of each

Service Month. At Shipper's option, Transporter shall

submit invoices to Shipper electronically. To exercise such

option, unless Transporter otherwise agrees, Shipper must

give Transporter thirty (30) Days' written notice to

effectuate electronic invoicing. Additionally, upon thirty

(30) Days' notice provided via posting on Transporter's

Internet Web Site, Transporter may require Shippers to

receive invoices and/or provide communications regarding

invoices electronically via the Internet. Shipper must also

execute any electronic access agreement which may be

required by Transporter for such purpose. In any Month,

Transporter may submit to Shipper separate invoices for

applicable charges and fees related to service provided for

Shipper under this Tariff (including, but not limited to,

invoices for fixed charges, e.g., Reservation Charges, at

any time during the applicable Service Month; invoices for

variable charges, e.g., commodity, usage and overrun

charges; and invoices for penalties). In the event that

conduct by Shipper under a Service Agreement or the

provisions of this Tariff constitutes a violation of its

obligations thereunder such that Shipper would incur more

than one penalty for the same act or failure to act,

Transporter will charge, and Shipper shall pay, in addition

to any amounts due under Section 5.7, only the total penalty

charges applicable to the conduct or action yielding the

highest dollar amount.

(b) Payment of all invoiced amounts shall be due and received by

Transporter in accordance with Transporter's instructions

within ten (10) Days after the date of the invoice, unless

Shipper