Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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

1st Rev Original Sheet No. 139 1st Rev Original Sheet No. 139 : Effective

Superseding: Original Sheet No. 139

RATE SCHEDULE SBS

SHORT-TERM BALANCING SERVICE

(Continued)

requested or provided under this Rate Schedule shall

have a lower priority than all other services,

including those under Rate Schedule IT, except that

the priority for return of Advance Delivery Gas when

directed by Transporter pursuant to Section 2.7(b)

above shall be subordinate only to service under Rate

Schedules FT or NNTS at primary points. If

Transporter cannot satisfy all the requests for

services, or continue services already scheduled,

under this Rate Schedule, Transporter shall assign

capacity, schedule and/or curtail services hereunder

using the same priorities and methods as are provided

for other interruptible service in Sections 5 and 10

of the General Terms and Conditions.

2.12 Prior to the effective date of any release of

capacity pursuant to Section 19 of the General Terms

and Conditions of the Tariff, Shipper shall reduce to

zero any outstanding balance in its Advance Receipt

or Advance Delivery account related to the Service

Agreement under which it has offered to release

capacity if such release would prevent or reduce its

ability to deliver or return Gas to resolve such

outstanding balances.

3. RATES:

3.1 The rate charged for service hereunder shall consist

of:

(a) Daily Rate: The currently effective Daily

Advance Receipt or Advance Delivery, as

applicable, Rate shown in Transporter's

Statement of Effective Rates and Charges for

Transportation of Gas contained in this Tariff.

(b) Carryover Rate: The currently effective

Carryover Advance Receipt or Advance Delivery,

as applicable, Rate shown in Transporter's

Statement of Effective Rates and Charges for

Transportation of Gas contained in this Tariff.