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. 348 First Revised Sheet No. 348 : Effective

Superseding: Original Sheet No. 348

FORM OF PREDETERMINED ALLOCATION AGREEMENT

THIS AGREEMENT is made and entered into by NorAm Gas

Transmission Company ("NGT") and ______________________

("PDA Operator") to be effective __________________.

Whereas, from time to time, quantities of Gas are

[received into] [delivered from] NGT's system at the

interconnection(s) between NGT's facilities and facilities

owned and/or operated by PDA Operator at location(s)

listed on Exhibit A hereto.

Whereas, NGT and PDA Operator desire to reach an agreement

on the allocation methodology of Gas received by [NGT],

[PDA Operator] at those interconnection(s).

NOW, THEREFORE, NGT and PDA Operator agree that such

quantities will be allocated using the following method:

In the event that the foregoing method results in Monthly

Imbalances at the location(s) listed on Exhibit A hereto which

are not allocated by PDA Operator to one or more valid Service

Agreements, PDA Operator and NGT shall cash-out such Imbalances

at the price and in the manner provided in Section 5.7(c)(ii)

of the General Terms and Conditions of NGT's Tariff, or

successor provisions thereto. For purpose hereof, an Imbalance

shall mean the difference between the quantities of gas which

NGT [receives] [delivers] at the interconnections specified on

Exhibit A and the quantities nominated and allocated to valid

Service Agreements by PDA Operator at any time or during any

period. A Monthly Imbalance shall mean the Imbalance existing

at the conclusion of any Service Month under this Agreement.

PDA Operator shall be required to comply with the provisions of

Section 14 of the General Terms and Conditions of NGT's Tariff.

For purposes of Section 14.5 thereof, NGT may require security

as provided for therein based on charges which may be assessed

hereunder. All terms used herein with capital letters shall

have the meanings ascribed to them in NGT's Tariff, unless

otherwise provided herein. The existence or operation of this

Agreement shall at no time undermine or jeopardize NGT's

ability to maintain system and segment operations and integrity

in accordance with the provisions of its Tariff, including, but

not limited to, Section 20 (or any successor provisions) of the