Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

Original Sheet No. 460A Original Sheet No. 460A : Effective

GENERAL TERMS AND CONDITIONS

(continued)

31. PENALTY REVENUE CREDITING (continued)

31.3 Annual Penalty Revenue Credit. On November 1 of each Year,

Transporter shall send notices to eligible Shippers of the

applicable credit amount for the preceding Penalty Base Period

(or part thereof). Transporter shall have the option of

crediting against a Shipper's invoice (any such credit shall be

separately identified on the invoice) or sending a check in the

amount of the applicable Shipper Penalty Revenue Credit.

Transporter shall file within thirty (30) Days of such date a

report with the Commission setting forth the calculation of the

Total Penalty Revenues, and the Shipper Penalty Revenue Credits,

together with supporting documentation for such calculations.