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. 406 Second Revised Sheet No. 406 : Effective

Superseding: First Revised Sheet No. 406

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

(b) In default of releasing Shipper specifying a bid evaluation

standard, Transporter shall determine the bid or bids

generating the highest net revenue as set forth in (a) (ii)

above. In default of releasing Shipper specifying a method

to break ties, priority will be given first to the bid with

the shortest term, and next to the bid submitted first in

time.

(c) Bids shall be solicited and submitted only as to the

reservation or demand component (and any surcharges and

other fixed costs applicable thereto) of the applicable

maximum rate. Shipper cannot release capacity for an

effective price less than or greater than Transporter's

applicable minimum or maximum, respectively, rates, as on

file and in effect from time to time. For purposes of bids