Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

First Revised Sheet No. 407 First Revised Sheet No. 407 : Effective

Superseding: Original Sheet No. 407

GENERAL TERMS AND CONDITIONS

(continued)

on a volumetric rate basis, Transporter shall convert the

applicable maximum reservation or demand charge component to

a unit or volumetric rate using an assumed 100% load factor.

Such converted maximum rate for volumetric bid purposes, as

in effect from time to time, shall be set forth in

Transporter's Statement of Effective Rates and Charges for

Transportation of Gas contained in this Tariff. The usage

or commodity charge component to be paid by the replacement

Shipper shall not be subject to the bidding process and the

releasing Shipper shall have no right to determine the level

of such payment.

19.6 Qualification of Prospective Replacement Shipper. A prospective

replacement Shipper must satisfy all requirements of the

applicable Rate Schedule and the General Terms and Conditions of

this Tariff. Prior to submitting a bid pursuant to this section,

a bidder must pre-qualify as a prospective replacement Shipper by

submitting a credit application as provided for in Section 14.5 of

these General Terms and Conditions specifying that the submission

is for the purpose of pre-qualifying to submit bids on released

capacity. Transporter will apply its creditworthiness criteria to

assess the submission.

19.7 Nominations. Following its selection, completion of its Service

Agreement and compliance with other applicable