Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 12/31/1996, Docket: RP97-193-000, Status: Effective

First Revised Sheet No. 262 First Revised Sheet No. 262 : Effective

Superseding: Original Sheet No. 262

GENERAL TERMS AND CONDITIONS

(continued)

the design throughput used to calculate the

then-current CSC Charge or, if no such

actual throughput exists, the level of

volumes underlying the calculation of the

Challenger's Percentage, multiplied by (B)

the number of years then remaining in the

Recovery Period. Such an adjustment will

continue to be made during the Recovery

Period until the total jurisdictional

volumes actually transported on behalf of

or sold to the Challenger equals the design

throughput used in the calculation of the

adjustment. The maximum CSC Charge

calculated in this manner will apply only

to the Challenger.

18.10 Interest.

Except as provided otherwise in

Section 18.9.3(a), the interest rate applicable

hereunder shall be redetermined on the first Day

of each calendar quarter and shall be equal to

the lower of (i) the rate then in effect

pursuant to 18 C.F.R. 154.501, or (ii) five

percent (5%) per annum.

18.11 Effectiveness.

The terms and conditions of this Section 18

shall remain in full force and effect until

July 1, 2002, and shall not be modified,

superseded or otherwise affected by any general

or other rate change filing or restatement of

rates made by Transporter under section 4 of the

Natural Gas Act, or upon any general or other

change in rates ordered by the Commission

pursuant to section 5 of the Natural Gas Act.