Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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

Original Sheet No. 281A Original Sheet No. 281A : Effective

GENERAL TERMS AND CONDITIONS

(continued)

(b) In default of releasing Shipper specifying a bid

evaluation standard, Transporter shall determine

the bid or bids generating the highest net

revenue as set forth in (a) (ii) above. In

default of releasing Shipper specifying a method

to break ties, priority will be given first to

the bid with the shortest term, and next to the

bid submitted first in time.

(c) Bids shall be solicited and submitted only as to

the reservation or demand component (and any

surcharges and other fixed costs applicable

thereto) of the applicable maximum rate.

Shipper cannot release capacity for an effective

price less than or greater than Transporter's

applicable minimum or maximum, respectively,

rates, as on file and in effect from time to

time. If releasing Shipper elects to allow bids