Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

First Revised Sheet No. 445 First Revised Sheet No. 445 : Effective

Superseding: Original Sheet No. 445

GENERAL TERMS AND CONDITIONS

(continued)

23. TRANSITION COSTS RECOVERY MECHANISM (continued)

23.3 Storage Gas Costs. Transporter shall be permitted to recover the

costs related to Gas remaining in storage when Transporter

implements its restructured services pursuant to Order No. 636 as

follows:

(a) To the extent Transporter determines that it has positive

working gas balances remaining in storage at the time of

implementation of its Order No. 636 services, after

deducting volumes of working gas in storage as of April 1,

1993 as reflected in REGT's FERC Form 8 filed April 6, 1993

and pursuant to Commission approval, such positive balances

shall be transferred to Rate Schedule FSS and NNTS Shippers

by considering together the following three items:

(i) Based on existing commitment levels of Rate Schedule

FSS Shippers, the portion of such balance which is not

in excess of injection quantities such Shippers could

have provided for injection in anticipation of the

1993-1994 Withdrawal Period if Rate Schedule FSS had

been effective during the 1993 Injection Period, shall

be transferred to Rate Schedule FSS Shippers at

Transporter's system cost of Gas. Such storage balance

costs shall be allocated among Rate Schedule FSS

Shippers based on the ratio of each Shipper's Maximum

Storage Quantity to the sum of Maximum Storage

Quantities for all Rate Schedule FSS Shippers;

(ii) Based on a consideration of each Rate Schedule NNTS

Shipper's Contract Delivery Demand level, a portion of

the positive balance in storage shall be transferred

to Rate Schedule NNTS Shippers, on a pro rata