Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

Third Revised Sheet No. 412 Third Revised Sheet No. 412 : Effective

Superseding: Second Revised Sheet No. 412

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

(e) With respect to releases that are subject to the maximum

rate ceiling, releasing Shipper and any replacement Shipper

must track any changes in Transporter's rates approved by

the Commission. If the Commission orders refunds of any

such rates charged by Transporter subject to refund,

Transporter and/or releasing Shipper, as the case may be,

must make corresponding refunds to such releasing Shipper or

any replacement Shipper, to the extent that releasing

Shipper or replacement Shipper(s) has paid amounts in excess

of Transporter's finally determined applicable maximum

rates.

(f) A releasing Shipper may re-release to the same replacement

Shipper for a term of thirty-one (31) Days or less if

either: 1) a period of twenty-eight (28) Days has elapsed

after the first release for thirty-one (31) Days or less has

expired or 2) the releasing Shipper causes the posting of an

offer to release capacity or of a pre-arranged transaction

to be made, and capacity is allocated on the basis of bids

submitted. A releasing Shipper may also re-release (without

satisfying the foregoing requirements) to the same

replacement Shipper for any term at maximum rates.

Otherwise, an agreement for capacity to be released at less

than maximum rates for a term of thirty-one (31) Days or

less shall not contain an evergreen provision and may not be

rolled-over for any additional time period.

(g) (i) If the releasing Shipper retains recall rights, it shall

specify the condition(s) precedent to such recall. The

releasing Shipper may also return or reput released capacity

to a replacement Shipper after recall as a standard option,

the conditions of which must be specified in the offer of

release.

(ii)The releasing Shipper shall be responsible for providing

electronic notice to Transporter