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. 431 Second Revised Sheet No. 431 : Effective

Superseding: First Revised Sheet No. 431

GENERAL TERMS AND CONDITIONS

(continued)

21. PRE-GRANTED ABANDONMENT AND CESSATION OF SERVICE (continued)

Agreement pursuant to such clause, such Shipper must notify

Transporter in writing that it wishes to continue the service.

Upon thirty (30) Days' notice via posting on Transporter's

Internet Web Site, Transporter may require Shippers to provide

such notification electronically via the Internet. Within thirty

(30) Days of receipt of such notice, Transporter shall post on its

Internet Web Site the relevant terms and conditions of the service

in question, including said expiration date, the quantity

involved, Receipt and Delivery Points, and the current maximum

rate applicable to the service.

21.4 Procedure. Potential Shippers who desire to receive all or part

of the capacity to be made available upon termination of a Long-

Term Firm Agreement shall submit bids to Transporter in writing,

or by other means approved by Transporter, and in conformance with

Transporter's solicitation. Upon thirty (30) Days' notice via

posting on Transporter's Internet Web Site, Transporter may

require such bids to be transmitted electronically via the

Internet. Transporter shall select the best bid from the valid

bids submitted after the bidding period has ended. Transporter

shall then notify the Shipper under the expiring Long-Term Firm

Agreement of the relevant terms of the best bid (upon thirty (30)

Days' notice via posting on Transporter's Internet Web Site,

Transporter may provide such notifications electronically via the

Internet), and shall provide such Shipper with a new or amended

Service Agreement (in electronic or written form as provided by

this Tariff) incorporating said terms, which Shipper shall execute

promptly. If, Shipper refuses to match the bid and execute the

documents, then the existing Long-Term Firm Agreement shall

terminate on its expiration date and, in addition to any other

rights and remedies available, and without prejudice to

Transporter, Transporter may cease service on said expiration date

and shall have no further obligation to such Shipper. If there is

no best bid for Shipper to match, the provisions of Section 21.8

shall apply.