Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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

First Revised Sheet No. 317 First Revised Sheet No. 317 : Effective

Superseding: Original Sheet No. 317

GENERAL TERMS AND CONDITIONS

(continued)

(b) Firm Storage Service: Transporter conducted a non-

binding Open Season for requests for service under

Rate Schedule FSS from March 3, to March 16, 1993.

Consistent with the terms of that Open Season,

Transporter will assign available firm storage

capacity first to converting firm bundled sales

customers. In the event that sufficient capacity

does not exist to fulfill all other requests for

service, Transporter will assign the remaining

available capacity to the request providing the

greatest anticipated net present value, utilizing the

interest rate prescribed in Section 154.501 of the

Commission's regulations as a discount factor.

Priority for requests having the same net present

value will be determined by a lottery.

converting sales customer must elect the type

and mix of restructured services it deems

necessary to duplicate its level of sales

service at the time this Tariff becomes

effective. The aggregate Contract Delivery

Demand and/or Contract Demand applicable to such

transportation service(s) shall be the same as

the capacity previously reserved to provide the

bundled sales service in effect the Day before

the effective date of this Tariff. Any such

capacity not requested and assigned under Rate

Schedule NNTS pursuant to the Open Season

referenced in Section 24.1 above, will be

converted to Rate Schedule FT, accordingly.

(d) Existing Firm Transportation Service:

Transporter received no notification pursuant to

Section 284.14(e) of the Commission's

regulations from any Shippers currently

receiving service under Transporter's Rate

Schedule FT requesting reduction or termination

of such Shippers' capacity entitlement.

Accordingly, as of the effective date of

Transporter's restructured services, existing

Shippers under Rate Schedule FT will continue to

utilize capacity previously committed to such