Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 05/01/1997, Docket: RP97- 61-002, Status: Effective

First Revised Sheet No. 281 First Revised Sheet No. 281 : Effective

Superseding: Original Sheet No. 281

GENERAL TERMS AND CONDITIONS

(continued)

19.5 Best Bid. Transporter shall evaluate and determine

the best bid among those otherwise consistent with

any terms and conditions specified by the releasing

Shipper as follows:

(a) Transporter shall apply the standard or criteria

for such determination specified by the

releasing Shipper, including the standard to be

used for breaking ties. Any standard or

criteria so specified must be objective,

economic, not unduly discriminatory, not

contrary to applicable provisions of this

Tariff, applicable to all potential replacement

Shippers and require Transporter in applying

such standard to exercise no more than a

ministerial function. The releasing Shipper

shall indemnify and hold Transporter harmless

from and against all demands, losses, claims,

expenses, causes of action and/or damages

suffered or incurred by Transporter arising out

of or related to any determination of a "best

bid" pursuant to a standard specified, supplied,

approved or provided by releasing Shipper.

Releasing Shippers may specify one of the

following bid evaluation methodologies on offers

to release. Transporter shall have no

obligation to accept bid evaluation

methodologies other than those specified below.

(i) highest reservation charge unit rate

on a daily basis;

(ii) net revenue (rate times quantity

[based on maximum quantity bid upon]

times term);

(iii) highest net present value, using a 10%

discount factor, based on the rate bid

(reservation or demand component), the

applicable quantity(ies), and term or

period bid upon; and

(iv) first-come, first-served option for

releases of thirty-one (31) Days or

less.