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. 450 First Revised Sheet No. 450 : Effective

Superseding: Original Sheet No. 450

GENERAL TERMS AND CONDITIONS

(continued)

24. ALLOCATION OF CAPACITY (continued)

(b) Firm Storage Service: Transporter conducted a non-binding

Open Season for requests for service under Rate Schedule FSS

from March 3, to March 16, 1993. Consistent with the terms

of that Open Season, Transporter will assign available firm

storage capacity first to converting firm bundled sales

customers. In the event that sufficient capacity does not

exist to fulfill all other requests for service, Transporter

will assign the remaining available capacity to the request

providing the greatest anticipated net present value,

utilizing the interest rate prescribed in Section 154.501 of

the Commission's regulations as a discount factor. Priority

for requests having the same net present value will be

determined by a lottery.

customer must elect the type and mix of restructured

services it deems necessary to duplicate its level of sales

service at the time this Tariff becomes effective. The

aggregate Contract Delivery Demand and/or Contract Demand

applicable to such transportation service(s) shall be the

same as the capacity previously reserved to provide the

bundled sales service in effect the Day before the effective

date of this Tariff. Any such capacity not requested and

assigned under Rate Schedule NNTS pursuant to the Open

Season referenced in Section 24.1 above, will be converted

to Rate Schedule FT, accordingly.