Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

Effective Date: 05/01/2002, Docket: RP02-196-001, Status: Effective

Second Revised Sheet No. 454A Second Revised Sheet No. 454A : Effective

Superseding: First Revised Sheet No. 454A

GENERAL TERMS & CONDITIONS

(continued)

27.4 For each Rate Schedule, the revised Fuel Percentages shall be

calculated as follows: (a) The revised Fuel Use and Storage Fuel

Use percentages shall be calculated on the basis of the difference

between (i) the actual Fuel Use or Storage Fuel Use usage during

the Base Period and (ii) the amount of Fuel Use (plus the amount

of Delhi Fuel Use for Rate Schedule PHS wheeling transactions

retained in-kind by Transporter during the Base Period) or Storage

Fuel Use retained in-kind by Transporter during the Base Period.

The difference shall be added to or subtracted from, as

appropriate, the actual Fuel Use or Storage Fuel Use usage during

the Base Period, and the total, expressed as a percentage of the

estimated applicable throughput for the Recovery Period (excluding

throughput through Delhi Compressor under the wheeling option of

Rate Schedule PHS and quantities delivered under transactions

described in Section 27.6 below), shall be the Fuel Use percentage

or the Storage Fuel Use percentage, as applicable, to be in effect

during the Recovery Period; and (b) The revised LUFG and Storage

LUFG percentages shall be calculated on the basis of the

difference between (i) the actual LUFG or Storage LUFG during the

Base Period and (ii) the amount of LUFG (plus the amount of Delhi

LUFG for Rate Schedule PHS wheeling transactions retained in-kind

by Transporter during the Base Period) or Storage LUFG retained

in-kind by Transporter during the Base Period. The difference

shall be added to or subtracted from, as appropriate, the actual

LUFG or Storage LUFG during the Base Period, and the total,

expressed as a percentage of the estimated applicable throughput

for the Recovery Period (excluding throughput through Delhi

Compressor under the wheeling option of Rate Schedule PHS, but

including quantities delivered under transactions described in

Section 27.6 below), shall be the LUFG percentage or the Storage

LUFG percentage, as applicable, to be in effect during the

Recovery Period.