The Reliant Energy Gas Transmission system is located primarily in Arkansas, northern Louisiana and eastern Oklahoma. The main compressors are the Chandler station in Oklahoma and the Dunn and Malvern stations in Arkansas.

The settlement price for basis swap futures contracts is based on the Platts Gas Market Report (“Platts IFERC”) Centerpoint Energy Gas Transmission Co., East Index (“Index”) published in the table titled “Prices of Spot Gas Delivered to Pipelines” in the first regular issue of the contract month minus the NYMEX natural gas futures contract final settlement price for the corresponding contract month.

The index swap futures contract floating price for each contract month is equal to the differential between the average of Platts Gas Daily prices during the contract month and the first of the month price provided by Platts Inside FERC’s Gas Market Report at this location point. This is a synthetic spread similar to the basis swaps.

Swing swap futures contracts help market participants manage their price risk with greater precision. The contract is financially settled daily on the Platts Gas Daily midpoint price for this location in the table titled “Daily Price Survey.” There is a contract for every calendar day, or "flow date."

All positions are aggregated and margined according to the value at risk as calculated by the SPAN® system. Cross margining of offsetting positions across markets can result in reduced margin obligations.