Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 02/25/2009, Docket: RP09-261-000, Status: Effective

Second Revised Sheet No. 550 Second Revised Sheet No. 550

Superseding: First Revised Sheet No. 550





19. CAPACITY RELEASE (continued)


on a volumetric rate basis, Transporter shall convert the

applicable reservation or demand charge component to a unit

or volumetric rate using an assumed 100% load factor. A

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. Transporter will not award capacity

release offers to a prospective replacement Shipper until and

unless the prospective replacement Shipper meets Transporter's

creditworthiness requirements applicable to all services that the

prospective replacement Shipper receives from Transporter,

including the service represented by the capacity release.


19.7 Nominations. Following its selection, completion of its Service

Agreement and compliance with other applicable