Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 08/25/1997, Docket: RP97-458-000, Status: Effective

First Revised Sheet No. 304 First Revised Sheet No. 304 : Effective

Superseding: Original Sheet No. 304




section and upon Transporter's submission of

a Service Agreement based upon the bid terms.


The potential Shipper shall submit a deposit or

prepayment pursuant to Sections 10 or 14 of these

General Terms and Conditions, as required by

Transporter, within twenty-four (24) hours of

receipt of notice from Transporter that it

submitted the best bid. If the bid is successful

and service to such party commences, such payment

shall be treated as provided in the applicable

Section. If the bid is successful but the bidding

Shipper fails to execute a Service Agreement in

conformance with its bid, Transporter may retain

the payment in addition to any other remedies to

which it may be entitled. If the existing Shipper

matches the bid and continues its service,

Transporter will return to the potential Shipper

the payment. Transporter may reject all bids

which would require Transporter to discount below

a rate and discount term acceptable to Transporter.


21.6 Best Bids. For purposes of this section, the best

bid shall be that bid which generates the highest

net present value, using a 10% discount factor,

based on the rate bid (reservation or demand

component), the applicable quantity(ies) and term

or period bid upon. In utilizing the best bid for

purposes of this Section 21, Shipper shall not be

required to match any term exceeding five (5) Years.


21.7 Failure to Execute. Failure of the existing

Shipper to execute and return the new Service

Agreement within fifteen (15) Days of receipt

shall constitute an irrevocable waiver of such

Shipper's right to match the bid; provided,

however, Shipper shall not be required to match a

rate higher than the maximum rate chargeable by

Transporter for delivery to such Shipper's Point(s)

of Delivery or a term greater than five (5) Years.


21.8 Lack of Conforming Bids. If Transporter does not

receive any bids pursuant to these provisions, or

Transporter rejects all bids received pursuant to

Section 21.5 above, Transporter shall so notify the

existing Shipper within ten (10) Days following the