Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 05/01/1997, Docket: RP97-250-001, Status: Effective

Second Revised Sheet No. 282 Second Revised Sheet No. 282 : Effective

Superseding: First Revised Sheet No. 282

GENERAL TERMS AND CONDITIONS

(continued)

on a volumetric rate basis, Transporter shall

convert the applicable maximum reservation or

demand charge component to a unit or volumetric

rate using an assumed 100% load factor. Such

converted maximum rate for volumetric bid

purposes, as in effect from time to time, shall

be set forth in Transporter's Statement of

Effective Rates and Charges for Transportation

of Gas contained in this Tariff. The usage or

commodity charge component to be paid by the

replacement Shipper shall not be subject to the

bidding process and the releasing Shipper shall

have no right to determine the level of such

payment.

19.6 Qualification of Prospective Replacement Shipper.

A prospective replacement Shipper must satisfy all

requirements of the applicable Rate Schedule and the

General Terms and Conditions of this Tariff. Prior

to submitting a bid pursuant to this section, a

bidder must pre-qualify as a prospective replacement

Shipper by submitting a credit application as

provided for in Section 14.5 of these General Terms

and Conditions specifying that the submission is for

the purpose of pre-qualifying to submit bids on

released capacity. Transporter will apply its

creditworthiness criteria to assess the submission.

Additionally, prior to submitting a bid, a bidder

must execute, or have executed and in effect, a

Master Capacity Release Service Agreement. For

purposes of this Tariff, replacement Shipper's

Master Capacity Release Service Agreement and

Addenda thereto shall, together, constitute and be

referred to as its Service Agreement. Upon the

implementation of the Form of Master Capacity

Release Service Agreement and Addendum, Transporter

shall submit to existing replacement Shippers for

execution, duplicate originals of a Master Capacity

Release Service Agreement and/or Addend(um)(a), as

appropriate. Such Shippers will have thirty (30)

days to execute and return such agreements.

19.7 Nominations. Following its selection, execution of

an Addendum to its Master Capacity Release Service

Agreement and compliance with other applicable