Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 11/01/1997, Docket: RP97- 61-009, Status: Effective

Third Revised Sheet No. 217 Third Revised Sheet No. 217 : Effective

Superseding: Second Revised Sheet No. 217

GENERAL TERMS AND CONDITIONS

(continued)

and within three (3) Business Days, unless

waived by Transporter, will either provide

new information to Shipper or reconfirm its

prior information. Transporter will rely

on its information to take such actions as

are appropriate and necessary to operate

its system.

(6) To the extent that adjustments are made to

Monthly Imbalance quantities for prior

periods after Shipper has eliminated such

quantities in accordance with the provisions

of this Section 5.7(c)(ii), unless otherwise

agreed, such adjusted Imbalance amounts shall

be eliminated at a factor of 1.00 multiplied

by the Index Price for the Month in which such

Imbalance was incurred. No Monthly Imbalance

penalty should be imposed when a prior period

adjustment applied to the current period causes

or increases a current Monthly Imbalance penalty.

(7) Payment of any penalties or fees for Imbalances

pursuant to this Tariff shall not be construed

to in any way entitle or authorize Shipper to

incur any Imbalance under its Service Agreement.

(d) Required Balancing: Subject to and in accordance with

the provisions of Section 20, if and when Transporter

determines that an Imbalance has exceeded the Operating

Range, Transporter shall have the right to interrupt

or curtail at any time, and from time to time, the

quantities of Gas it will receive or deliver to the

extent Transporter deems necessary in order to limit

or reduce the Imbalance existing at any time.

Transporter shall provide such notice as is provided

for in said section. Transporter shall not apply this

provision in an unduly discriminatory manner, nor in

a manner contrary to the Commission's Regulations.

Nothing in the foregoing shall supersede or negate

the general obligation of Shippers to correct any

Imbalance