Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 08/01/1995, Docket: RP95- 53-000, Status: Effective

1st Rev Original Sheet No. 138 1st Rev Original Sheet No. 138 : Effective

Superseding: Original Sheet No. 138

RATE SCHEDULE SBS

SHORT-TERM BALANCING SERVICE

(Continued)

2.7 Shipper must return, or have delivered, Gas in its

Advance Delivery, or Advance Receipt, as applicable,

account (a) by the close of the permitted period as

specified in Section 2.5 above or (b) within forty-

eight (48) hours (or such longer period as may be

specified) of receipt of, and in accordance with, a

notification from Transporter.

2.8 Unless Transporter agrees otherwise, return of

Advance Delivery Gas shall occur on a first-out,

first-in basis and delivery of Advance Receipt Gas

shall occur on a first-in, first-out basis.

2.9 Transporter shall not be required to schedule service

under this Rate Schedule if, in Transporter's

judgment at the time of the request, to do so would

result in an increased Imbalance for the

transportation service rendered (or applicable Pool)

under the Service Agreement. In the event that the

receipt, return or delivery of Gas in Shipper's

Advance Receipt, or Advance Delivery, account, as

applicable, is scheduled and adequate quantities are

not tendered at the Receipt Point(s), or taken at the

Delivery Point(s), as applicable, Transporter will

not debit or credit such deficient quantities to the

account(s). Additionally, in the event that Shipper

furnishes nominations for receipts and deliveries not

related to service under this Rate Schedule, as well

as nominations for receipts and/or deliveries which

are contemplated to affect its Advance Delivery or

Advance Receipt account, quantities will be allocated

in such a manner so that the nominations submitted to

affect Shipper's Advance Delivery, or Advance

Receipt, account, as applicable, are satisfied last.

2.10 For purposes of Section 14.5 of the General Terms and

Conditions of this Tariff, a Shipper may receive

services under this Rate Schedule by providing

security in an amount sufficient to cover up to the

maximum amount of charges which could be incurred

hereunder.

2.11 For purposes of scheduling, allocations and

curtailment pursuant to Sections 5 and 10 of the

General Terms and Conditions of this Tariff, services