Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 04/01/1996, Docket: RP96-200-002, Status: Effective

First Revised Sheet No. 227 First Revised Sheet No. 227 : Effective

Superseding: Original Sheet No. 227

GENERAL TERMS AND CONDITIONS

(continued)

Transporter shall be entitled to require that any

request for service under Rate Schedules FT, NNTS and

FSS be accompanied by a prepayment in an amount equal

to the Reservation Fees or Charges, or the

Deliverability and Capacity Fees, as applicable,

which would be due for the first Service Month for

such requested service. Upon commencement of

service, a prepayment provided pursuant to the

foregoing shall be credited to Shipper's initial

bill. Transporter shall return the prepayment if it

rejects the request or when the Service Agreement

terminates. Should the requesting party fail to

cooperate in the processing of its request in a

timely manner or withdraw its request, the amount

shall be forfeited to Transporter.

10.4 Requests For Interruptible Service. Complete requests

for interruptible service by a Shipper willing and

able to pay the maximum rate for such service, in

accordance with this Tariff, will be reviewed on a

first-come, first-served basis according to the date

of Transporter's receipt of such request. Initial

requests for interruptible service shall be accepted,

for purposes of offering a Service Agreement, if

Transporter determines, following its review and

evaluation of a completed request, that excess

capacity may exist from time to time to perform the

requested services on an interruptible basis.

Transporter shall use the scheduling procedures as

prescribed in Section 5 of these General Terms and

Conditions to allocate capacity for interruptible

services. For purposes of the foregoing, a Shipper

willing and able to pay a Negotiated Rate for such

service will be subject to the provisions of Section

12.3 below.

10.5 Requests for Discounted Service. Transporter shall

consider and evaluate complete requests for service

at less than the applicable maximum rate(s) submitted

by Shippers. However, Transporter shall not be

obligated to agree to provide any services at a

discounted rate and may reject any request which

would require it to provide a discounted rate or

accept other terms and conditions which it determines

are not acceptable. Transporter shall not apply this

provision in an unduly discriminatory manner, nor in

a manner contrary to the Commission's regulations.