Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 03/01/1998, Docket: RP98-122-000, Status: Effective

Fourth Revised Sheet No. 233A Fourth Revised Sheet No. 233A : Effective

Superseding: Third Revised Sheet No. 233A

GENERAL TERMS AND CONDITIONS

(continued)

12.4 Policy with Respect to Order of Discounting.

In accordance with Section 154.109(c) of the Commission's

regulations, rate components will be discounted in the

following order:

(a) Firm Services

(i) Transporter shall discount the components of

reservation charges in the following order:

Base Rate reservation charge;

Account No. 858 or other Order No. 636 transition

cost surcharges (if applicable);

and

GSR reservation surcharge (if applicable).

(ii) Commodity charges shall be discounted in the

following order:

Order No. 528 CSC surcharge; and

ACA surcharge (if applicable).

(b) Interruptible Services

The commodity charges for interruptible service shall

be discounted in the following order:

Base Rate commodity charge;

Order No. 528 CSC surcharge; and

ACA surcharge (if applicable).