Document:

<PAGE>

                                                                     Exhibit 4.5

                   RELIANT ENERGY TRANSITION BOND COMPANY LLC

                                     Issuer

                                       and

                              BANKERS TRUST COMPANY

                                     Trustee

                              BANKERS TRUST COMPANY

                             Securities Intermediary

                          FIRST SUPPLEMENTAL INDENTURE

                          Dated as of October 24, 2001

                             ______________________

                         Series 2001-1 Transition Bonds

<PAGE>

          This FIRST SUPPLEMENTAL INDENTURE dated as of October 24, 2001 (this
"Supplement"), by and among Reliant Energy Transition Bond Company LLC, a
Delaware limited liability company (the "Issuer"), Bankers Trust Company, a New
                                         ------
York banking corporation, in its capacity as trustee (the "Trustee"), and
                                                           -------
Bankers Trust Company, in its capacity as securities intermediary (the
"Securities Intermediary") is entered into pursuant to the Indenture dated as of
 -----------------------
October 24, 2001, among the Issuer, the Trustee and the Securities Intermediary
(the "Indenture").
      ---------

                              PRELIMINARY STATEMENT

          Section 9.01 of the Indenture provides, among other things, that the
Issuer and the Trustee may at any time and from time to time enter into one or
more Supplemental Indentures for the purpose of authorizing the issuance by the
Issuer of a Series of Transition Bonds and specifying the terms thereof. The
Issuer has duly authorized the execution and delivery of this Supplement and the
creation of a Series of Transition Bonds with an initial aggregate principal
amount of $748,897,000 to be known as the Issuer's Transition Bonds, Series
2001-1 (the "Series 2001-1 Transition Bonds"). All acts and all things necessary
             ------------------------------
to make the Series 2001-1 Transition Bonds, when duly executed by the Issuer and
authenticated by the Trustee as provided in the Indenture and this Supplement
and issued by the Issuer, the valid, binding and legal obligations of the Issuer
and to make this Supplement a valid and enforceable supplement to the Indenture
have been done, performed and fulfilled and the execution and delivery hereof
have been in all respects duly and lawfully authorized. The Issuer and the
Trustee are executing and delivering this Supplement in order to provide for the
Series 2001-1 Transition Bonds.

          In order to secure the payment of principal of and interest on the
Series 2001-1 Transition Bonds issued and to be issued under the Indenture
and/or any Supplemental Indenture, the Issuer hereby confirms the Grant to the
Trustee for the benefit of the Transition Bondholders all of the Issuer's right,
title and interest in, to and under the Trust Estate, including without
limitation, the Transition Property transferred by the Seller to the Issuer as
of the Initial Transfer Date pursuant to the Sale Agreement and all proceeds
thereof.

          The Trustee, on behalf of the Transition Bondholders, acknowledges the
confirmation of such Grant, accepts the trusts hereunder in accordance with the
provisions hereof and agrees to perform its duties as set forth in the Indenture
and this Supplement.

                                   ARTICLE I

                                   DEFINITIONS

          All terms used in this Supplement that are defined in the Indenture,
either directly or by reference therein, have the meanings assigned to such
terms in the Indenture, except to the extent such terms are defined or modified
in this Supplement or the context clearly requires otherwise.

                                        1

<PAGE>

                                   ARTICLE II

                          OTHER DEFINITIONAL PROVISIONS

          SECTION 2.01. "Authorized Denominations" means $1,000 and integral
                         ------------------------
multiples thereof, except for one Transition Bond of each Class which may be of
a smaller denomination.

          SECTION 2.02. Intentionally Omitted.

          SECTION 2.03. "Expected Amortization Schedule" means Schedule A to
                         ------------------------------
this Supplement.

          SECTION 2.04. "Expected Final Payment Date" means, with respect to any
                         ---------------------------
Class of the Series 2001-1 Transition Bonds, the expected final payment date
therefor, as specified in Article IV of this Supplement.

          SECTION 2.05. "Final Maturity Date" means, with respect to any Class
                         -------------------
of the Series 2001-1 Transition Bonds, the final maturity date thereof, as
specified in Article IV of this Supplement.

          SECTION 2.06. "Interest Accrual Period" means, with respect to any
                         -----------------------
Payment Date, the period from and including the preceding Payment Date (or, in
the case of the first Payment Date, from and including the Series Issuance Date)
to and excluding such Payment Date.

          SECTION 2.07. "Interest Rate" has the meaning set forth in Article IV
                         -------------
of this Supplement.

          SECTION 2.08. "Overcollateralization Amount" has the meaning set forth
                         ----------------------------
in Section 5.04 of this Supplement.

          SECTION 2.09. "Payment Date" has the meaning set forth in Section 5.01
                         ------------
of this Supplement.

          SECTION 2.10. "Record Date" shall mean, with respect to any Payment
                         -----------
Date, the close of business on the Business Day prior to such Payment Date.

          SECTION 2.11. "Required Capital Amount" has the meaning set forth in
                         -----------------------
Section 5.05 of this Supplement.

          SECTION 2.12. "Series Issuance Date" has the meaning set forth in
                         --------------------
Section 3.02 of this Supplement.

                                        2

<PAGE>

                                  ARTICLE III

                       DESIGNATION; SERIES ISSUANCE DATES

          SECTION 3.01. DESIGNATION. The Series 2001-1 Transition Bonds shall be
designated generally as the Issuer's Transition Bonds, Series 2001-1 and further
denominated as Classes A-1, A-2, A-3 and A-4.

          SECTION 3.02. SERIES ISSUANCE DATE. The Series 2001-1 Transition Bonds
that are authenticated and delivered by the Trustee to or upon the written order
of the Issuer on October 24, 2001 (the "Series Issuance Date") shall have as
their date of authentication October 24, 2001. Each other Series 2001-1
Transition Bond shall be dated the date of its authentication.

                                   ARTICLE IV

               INITIAL PRINCIPAL BALANCE; INTEREST RATE; EXPECTED
                     FINAL PAYMENT DATE; FINAL MATURITY DATE

          The Transition Bonds of each Class of the Series 2001-1 Transition
Bonds shall have the initial principal balance, Expected Final Payment Date and
Final Maturity Date and bear interest at the interest rate (the "Interest Rate")
                                                                 -------- ----
as set forth below:

<TABLE>
<CAPTION>
              Initial Principal     Expected Final         Final
  Class            Balance           Payment Date       Maturity Date       Interest Rate
---------     -----------------     --------------      -------------       -------------
<S>           <C>                   <C>                 <C>                 <C>
   A-1             $115,000,000        09/15/05           09/15/07              3.84%
   A-2              118,000,000        09/15/07           09/15/09              4.76%
   A-3              130,000,000        09/15/09           09/15/11              5.16%
   A-4              385,897,000        09/15/13           09/15/15              5.63%
</TABLE>

          The Expected Final Payment Date for each Class of the Series 2001-1
Transition Bonds will be the date when the outstanding principal balance of that
Class will be reduced to zero if payments are made according to the Expected
Amortization Schedule for that Class. The Final Maturity Date for each Class of
the Series 2001-1 Transition Bonds will be the date when the Issuer is required
to pay the entire remaining unpaid principal balance, if any, of all outstanding
Series 2001-1 Transition Bonds of that Class.

          Interest on the Series 2001-1 Transition Bonds will be paid before
Principal of the Series 2001-1 Transition Bonds. If there is a shortfall in the
amounts available in the Collection Account to make interest payments, the
Trustee will distribute Interest Pro Rata to each Outstanding Series and Class
of Transition Bonds based on the amount of Interest payable on each Outstanding
Series. Interest on the Series 2001-1 Transition Bonds will be calculated on the
basis of a 360-day year of twelve 30-day months.

                                        3

<PAGE>

                                   ARTICLE V

                  PAYMENT DATES; EXPECTED AMORTIZATION SCHEDULE
                 FOR PRINCIPAL; INTEREST; OVERCOLLATERALIZATION
                         AMOUNT; REQUIRED CAPITAL AMOUNT

          SECTION 5.01. PAYMENT DATES. The "Payment Dates" for each Class of the
                                            -------------
Series 2001-1 Transition Bonds are March 15 and September 15 of each year or, if
any such date is not a Business Day, the next succeeding Business Day,
commencing on March 15, 2002, and continuing until the earlier of repayment of
such Class in full and the applicable Final Maturity Date.

          SECTION 5.02. EXPECTED AMORTIZATION SCHEDULE FOR PRINCIPAL. Unless an
Event of Default has occurred and is continuing and the unpaid principal amount
of all Series of Transition Bonds has been declared to be due and payable
together with accrued and unpaid interest thereon, on each Payment Date the
Trustee shall distribute to the Series 2001-1 Transition Bondholders of record
as of the related Record Date amounts payable in respect of the Series 2001-1
Transition Bonds pursuant to Section 8.02(e) of the Indenture as Principal, in
accordance with the Expected Amortization Schedule. To the extent that more than
one Class of the Series 2001-1 Transition Bonds is to receive payments of
Principal in accordance with the Expected Amortization Schedule on any Payment
Date, such amounts will be allocated Pro Rata between such Classes based on the
Principal scheduled to be paid to such Classes in accordance with the Expected
Amortization Schedule on such Payment Date; provided, however, that if one or
                                            --------  -------
more Classes did not receive Principal on the prior Payment Date and as a result
the aggregate Outstanding Amount of such Class or Classes was not reduced to the
balance indicated in the Expected Amortization Schedule on such Payment Date,
then such Classes will be

          (a) allocated funds from the applicable Series Subaccount to make up
     such shortfalls prior to any Classes receiving funds in respect of
     Principal scheduled to be paid on the current Payment Date and

          (b) allocated funds from the applicable Series Subaccount in respect
     of prior shortfalls on a Pro Rata basis based on the amount each such
     shortfall bears to the aggregate shortfalls;

provided, however, that other than in the event of a redemption or acceleration
--------  -------
in no event shall a Principal payment pursuant to this Section 5.02 on any Class
on a Payment Date be greater than the amount that reduces the Outstanding Amount
of such Class of Series 2001-1 Transition Bonds to the amount specified in the
Expected Amortization Schedule for such Class and Payment Date.

          SECTION 5.03. INTEREST. Interest will be payable on each Class of the
Series 2001-1 Transition Bonds on each Payment Date as follows:

          (a) if there has been a payment default, any Interest payable but
     unpaid on any prior Payment Date, together with Interest on such unpaid
     Interest, if any, and

                                        4

<PAGE>

          (b) accrued Interest on the principal balance of each Class of the
     Series 2001-1 Transition Bonds as of the close of business on the preceding
     Payment Date, or the date of the original issuance of the Class of the
     Series 2001-1 Transition Bonds, as applicable, after giving effect to all
     payments of Principal made on the preceding Payment Date,

provided that, with respect to the initial Payment Date or if no payment has yet
--------
been made, interest on the outstanding principal balance shall accrue from and
including the Series Issuance Date to, but excluding, the following Payment
Date, and thereafter from and including the previous Payment Date to but
excluding the applicable Payment Date until the Transition Bonds have been paid
in full, at the interest rate indicated in Article IV.

          SECTION 5.04. OVERCOLLATERALIZATION AMOUNT. The "Overcollateralization
                                                           ---------------------
Amount" for the Series 2001-1 Transition Bonds shall be $3,744,485.00, which
------
represents 0.5% of the initial outstanding principal balance of the Series
2001-1 Transition Bonds. The Trustee will deposit collected Transition Charges
remitted to it by the Servicer in the Overcollateralization Subaccount over the
term of the Series 2001-1 Transition Bonds on each Payment Date up to the
Scheduled Overcollateralization Level, which is listed in the table below.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
    Payment                 Scheduled                 Payment                Scheduled
     Date              Overcollateralization           Date             Overcollateralization
                              Level                                            Level
----------------------------------------------------------------------------------------------
   <S>                 <C>                           <C>                <C>
   03/15/02            $      156,020.21             03/15/08           $    2,028,262.71
----------------------------------------------------------------------------------------------
   09/15/02                   312,040.42             09/15/08                2,184,282.92
----------------------------------------------------------------------------------------------
   03/15/03                   468,060.63             03/15/09                2,340,303.13
----------------------------------------------------------------------------------------------
   09/15/03                   624,080.83             09/15/09                2,496,323.33
----------------------------------------------------------------------------------------------
   03/15/04                   780,101.04             03/15/10                2,652,343.54
----------------------------------------------------------------------------------------------
   09/15/04                   936,121.25             09/15/10                2,808,363.75
----------------------------------------------------------------------------------------------
   03/15/05                 1,092,141.46             03/15/11                2,964,383.96
----------------------------------------------------------------------------------------------
   09/15/05                 1,248,161.67             09/15/11                3,120,404.17
----------------------------------------------------------------------------------------------
   03/15/06                 1,404,181.88             03/15/12                3,276,424.38
----------------------------------------------------------------------------------------------
   09/15/06                 1,560,202.08             09/15/12                3,432,444.58
----------------------------------------------------------------------------------------------
   03/15/07                 1,716,222.29             03/15/13                3,588,464.79
----------------------------------------------------------------------------------------------
   09/15/07                 1,872,242.50             09/15/13                3,744,485.00
----------------------------------------------------------------------------------------------
</TABLE>

          SECTION 5.05. REQUIRED CAPITAL AMOUNT. The "Required Capital Amount"
                                                      -----------------------
for the Series 2001-1 Transition Bonds shall be $3,744,485.00, which is equal to
0.5% of the initial outstanding principal balance of the Series 2001-1
Transition Bonds.

          SECTION 5.06. NO PREMIUM. No Premium will be payable in connection
with the early redemption of the Series 2001-1 Transition Bonds.

                                        5

<PAGE>

                                   ARTICLE VI

                            AUTHORIZED DENOMINATIONS

          The Series 2001-1 Transition Bonds shall be issuable in the Authorized
Denominations.

                                  ARTICLE VII

                                   REDEMPTION

          SECTION 7.01. MANDATORY REDEMPTION. The Series 2001-1 Transition Bonds
shall not be subject to mandatory redemption.

          SECTION 7.02. OPTIONAL REDEMPTION. The Issuer may, at its option,
redeem all, but not less than all, of the Series 2001-1 Transition Bonds on any
Payment Date in accordance with Section 10.01 of the Indenture if, after giving
effect to payments that would otherwise be made on such Payment Date, the
Outstanding Amount of the Series 2001-1 Transition Bonds has been reduced to
five percent or less of the initial principal balance of the Series 2001-1
Transition Bonds.

                                  ARTICLE VIII

                               CREDIT ENHANCEMENT

          No credit enhancement (other than the Overcollateralization Amount,
the Required Capital Amount and any adjustments to the Transition Charges
approved by the PUCT as provided in the Texas Electric Choice Plan) is provided
for the Series 2001-1 Transition Bonds.

                                   ARTICLE IX

              DELIVERY AND PAYMENT FOR THE SERIES 2001-1 TRANSITION
                BONDS; FORM OF THE SERIES 2001-1 TRANSITION BONDS

          The Trustee shall deliver the Series 2001-1 Transition Bonds to the
Issuer when authenticated in accordance with Section 2.02 of the Indenture. The
Series 2001-1 Transition Bonds of each Class shall be in the form of Exhibit A
hereto, which Exhibit is incorporated herein by reference.

                                   ARTICLE X

                                  MISCELLANEOUS

          SECTION 10.01. CONFIRMATION OF INDENTURE. As supplemented by this
Supplement, the Indenture is in all respects ratified and confirmed and the
Indenture, as so supplemented by this Supplement, shall be read, taken, and
construed as one and the same instrument.

                                        6

<PAGE>

          SECTION 10.02. EFFECTS OF HEADINGS. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

          SECTION 10.03. COUNTERPARTS. This Supplement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the
same instrument.

          SECTION 10.04. GOVERNING LAW. This Supplement shall be construed in
accordance with the laws of the State of Texas, and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such
laws.

          SECTION 10.05. RIGHTS OF TRUSTEE AND SECURITIES INTERMEDIARY. The
Trustee and the Securities Intermediary shall be entitled to the same rights,
protections, immunities, and indemnities set forth in the Indenture as if
specifically set forth herein.

                                        7

<PAGE>

     IN WITNESS WHEREOF, the Issuer, the Trustee and the Securities Intermediary
have caused this Supplement to be duly executed by their respective officers
thereunto duly authorized as of the day and year first above written.

                                    RELIANT ENERGY TRANSITION BOND COMPANY LLC,
                                        as Issuer

                                    By: ________________________________________
                                        Name:
                                        Title:

                                    BANKERS TRUST COMPANY,
                                        not in its individual capacity but
                                        solely as Trustee on behalf of the
                                        Transition Bondholders

                                    By: ________________________________________
                                        Name:
                                        Title:

                                    BANKERS TRUST COMPANY,
                                        not in its individual capacity but
                                        solely as Securities Intermediary

                                    By: ________________________________________
                                        Name:
                                        Title:

<PAGE>

                                   SCHEDULE A

                         Expected Amortization Schedule

                          Outstanding Principal Balance

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                 Class                   Class                  Class                  Class
   Payment        A-1                     A-2                    A-3                    A-4
     Date       Balance                 Balance                Balance                Balance
----------------------------------------------------------------------------------------------------
<S>             <C>                     <C>                    <C>                    <C>
Closing         $ 115,000,000           $ 118,000,000          $ 130,000,000          $ 385,897,000
----------------------------------------------------------------------------------------------------
03/15/02          115,000,000             118,000,000            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
09/15/02          101,894,302             118,000,000            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
03/15/03           95,528,678             118,000,000            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
09/15/03           83,171,877             118,000,000            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
03/15/04           69,167,503             118,000,000            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
09/15/04           41,982,542             118,000,000            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
03/15/05           26,068,480             118,000,000            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
09/15/05                    -             113,176,479            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
03/15/06                    -              94,716,168            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
09/15/06                    -              58,881,446            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
03/15/07                    -              38,511,447            130,000,000            385,897,000
----------------------------------------------------------------------------------------------------
09/15/07                    -                       -            128,969,686            385,897,000
----------------------------------------------------------------------------------------------------
03/15/08                    -                       -            106,690,000            385,897,000
----------------------------------------------------------------------------------------------------
09/15/08                    -                       -             63,441,199            385,897,000
----------------------------------------------------------------------------------------------------
03/15/09                    -                       -             38,615,263            385,897,000
----------------------------------------------------------------------------------------------------
09/15/09                    -                       -                      -            376,320,741
----------------------------------------------------------------------------------------------------
03/15/10                    -                       -                      -            348,948,555
----------------------------------------------------------------------------------------------------
09/15/10                    -                       -                      -            295,814,313
----------------------------------------------------------------------------------------------------
03/15/11                    -                       -                      -            265,895,879
----------------------------------------------------------------------------------------------------
09/15/11                    -                       -                      -            207,818,916
----------------------------------------------------------------------------------------------------
03/15/12                    -                       -                      -            174,081,107
----------------------------------------------------------------------------------------------------
09/15/12                    -                       -                      -            108,590,064
----------------------------------------------------------------------------------------------------
03/15/13                    -                       -                      -             71,280,304
----------------------------------------------------------------------------------------------------
09/15/13                    -                       -                      -                      -
----------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                    Exhibit A to First Supplemental Indenture

REGISTERED                                $

No. _______

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                    CUSIP NO.

THE PRINCIPAL OF THIS CLASS __ SERIES 2001-1 TRANSITION BOND WILL BE PAID IN
INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
OF THIS CLASS __ SERIES 2001-1 TRANSITION BOND AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. THE HOLDER OF THIS CLASS __ SERIES 2001-1
TRANSITION BOND HEREBY COVENANTS AND AGREES THAT PRIOR TO THE DATE THAT IS ONE
YEAR AND ONE DAY AFTER THE PAYMENT IN FULL OF THE CLASS __ SERIES 2001-1
TRANSITION BONDS, IT WILL NOT INSTITUTE AGAINST OR JOIN ANY OTHER PERSON IN
INSTITUTING AGAINST THE ISSUER ANY BANKRUPTCY, REORGANIZATION, ARRANGEMENT,
INSOLVENCY OR LIQUIDATION PROCEEDINGS OR OTHER SIMILAR PROCEEDINGS UNDER THE
LAWS OF THE UNITED STATES OR ANY STATE OF THE UNITED STATES.

                   RELIANT ENERGY TRANSITION BOND COMPANY LLC

                   TRANSITION BONDS, SERIES 2001-1, Class __.

                        Initial         Expected Final         Class Final
   Bond Rate       Principal Amount      Payment Date         Maturity Date
---------------  --------------------  ----------------    -------------------
   ______%         $______________       ______________      ________________

               Reliant Energy Transition Bond Company LLC, a limited liability
company organized and existing under the laws of the State of Delaware (herein
referred to as the "Issuer"), for value received, hereby promises to pay to the
registered holder under Section 2.05 of the Indenture ("Registered Holder"), or
registered assigns, the Initial Principal Amount shown above in semiannual
installments on the Payment Dates (as defined below) and in the amounts
specified on the reverse hereof or, if less, the amounts determined pursuant to
Section 8.02(e) of the Indenture, in each year, commencing on the date
determined as provided on the reverse hereof and ending on or before the Class
Final Maturity Date, to pay the entire unpaid principal hereof on the Class
Final Maturity Date and to pay Interest, at the Bond Rate shown above, on each
March 15 and September 15, or if any such day is not a Business Day, the next
succeeding Business Day, commencing on March 15, 2002 and continuing until the
earlier of the payment of

<PAGE>

the Principal hereof and the Class Final Maturity Date (each a "Payment Date"),
on the Principal amount of this Class __ Series 2001-1 Transition Bond
outstanding from time to time. Interest on this Class __ Series 2001-1
Transition Bond will accrue for each Payment Date from the most recent Payment
Date on which Interest has been paid to but excluding such Payment Date or, if
no Interest has yet been paid, from October 24, 2001. Interest will be computed
on the basis of a 360-day year of twelve 30-day months and the actual number of
days from the preceding Payment Date, to but excluding the next Payment Date,
divided by 360. Such Principal of and Interest on this Class __ Series 2001-1
Transition Bond shall be paid in the manner specified on the reverse hereof.

               The Principal of and Interest on this Class __ Series 2001-1
Transition Bond are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Class __
Series 2001-1 Transition Bond shall be applied first to Interest due and payable
on this Class __ Series 2001-1 Transition Bond as provided above and then to the
unpaid Principal of and premium, if any, on this Class __ Series 2001-1
Transition Bond, all in the manner set forth in Section 8.02(e) of the
Indenture.

               This Class __ Series 2001-1 Transition Bond is a "transition
bond" as such term is defined in the Texas Electric Choice Plan. Principal and
Interest on this Class __ Series 2001-1 Transition Bond are payable from and
secured primarily by the transition property authorized by the Financing Order.
The Texas Electric Choice Plan provides that the State of Texas pledges "for the
benefit and protection of financing parties and the electric utility, that it
will not take or permit any action that would impair the value of the transition
property, or except as permitted . . . [through the Transition Charge Adjustment
Process] . . . reduce, alter, or impair the transition charges to be imposed,
collected, and remitted to financing parties, until the principal, interest, and
premium, and any other charges incurred and contracts to be performed in
connection with the related transition bonds have been paid and performed in
full."

               Reference is made to the further provisions of this Class __
Series 2001-1 Transition Bond set forth on the reverse hereof, which shall have
the same effect as though fully set forth on the face of this Class __ Series
2001-1 Transition Bond.

               Unless the certificate of authentication hereon has been executed
by the Trustee whose name appears below by manual signature, this Class __
Series 2001-1 Transition Bond shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

               Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation ("DTC"),
to Issuer or its agent for registration of transfer, exchange, or payment, and
any certificate issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

<PAGE>

               IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by an Authorized Officer of the Issuer.

Date:

                                                RELIANT ENERGY TRANSITION BOND
                                                  COMPANY LLC

                                                By:____________________________
                                                   Name:
                                                   Title: Manager

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

Dated: ______________, 20__

               This is one of the Class __ Series 2001-1 Transition Bonds
designated above and referred to in the within-mentioned Indenture.

                              BANKERS TRUST COMPANY,
                                not in its individual capacity but solely as
                                Trustee on behalf of the Transition Bondholders

                              By:_______________________________________________
                                 Name:
                                 Title:

<PAGE>

                           REVERSE OF TRANSITION BOND

               This Class __ Series 2001-1 Transition Bond is one of a duly
authorized issue of Transition Bonds of the Issuer, designated as its Transition
Bonds (herein called the "Transition Bonds"), issued and to be issued in one or
more Series, which Series are issuable in one or more Classes, and this Series,
in which this Class __ Series 2001-1 Transition Bond represents an interest,
consists of Classes, including the Class __ Series 2001-1 Transition Bonds
(herein called the "Class __ Transition Bonds"), all issued and to be issued
under an indenture dated as of October 24, 2001, and a supplemental indenture
thereto dated as of October 24, 2001 (such supplemental indenture, as
supplemented or amended, the "Series 2001-1 Supplement" and, collectively with
such indenture, as supplemented or amended, the "Indenture"), each among the
Issuer, Bankers Trust Company, as Trustee (the "Trustee", which term includes
any successor trustee under the Indenture), and Bankers Trust Company, as
Securities Intermediary, to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the Trust Estate pledged,
the nature and extent of the security, the respective rights, obligations and
immunities thereunder of the Issuer, the Trustee and the Transition Bondholders
and the terms and conditions under which additional Transition Bonds may be
issued. All terms used in this Class __ Transition Bond that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them
in the Indenture.

               The Class __ Transition Bonds, the other Classes of Series 2001-1
Transition Bonds and any other Series of Transition Bonds issued by the Issuer
are and will be equally and ratably secured by the Trust Estate pledged as
security therefor as provided in the Indenture or the Series 2001-1 Supplement.

               The Principal of this Class __ Transition Bond shall be payable
on each Payment Date only to the extent that amounts in the Collection Account
are available therefor, and only until the outstanding Principal balance thereof
on such Payment Date (after giving effect to all payments of Principal, if any,
made on such Payment Date) has been reduced to the Principal balance specified
in the Expected Amortization Schedule which is attached to the Series 2001-1
Supplement as Schedule A, unless payable earlier either because

               (i)  an Event of Default shall have occurred and be continuing
     and the Trustee or the Transition Bondholders representing not less than a
     majority of the Outstanding Amount of the Transition Bonds of all Series
     have declared the Transition Bonds to be immediately due and payable in
     accordance with Section 5.02 of the Indenture, or

               (ii) the Issuer, at its option, shall have called for the
     redemption of the Series 2001-1 Transition Bonds in whole pursuant to
     Section 10.01 of the Indenture and Section 7.02 of the Series 2001-1
     Supplement.

However, actual Principal payments may be made in less than expected amounts and
at later than expected times as determined pursuant to Section 8.02(e) of the
Indenture and Section 5.02 of the Series 2001-1 Supplement. The entire unpaid
Principal amount of this Class __ Transition Bond shall be due and payable on
the earlier of the Class Final Maturity Date hereof and the Redemption Date, if
any, herefor. Notwithstanding the foregoing, the entire unpaid Principal amount
of the Transition Bonds shall be due and payable, if not then previously paid,
on the date

<PAGE>

on which an Event of Default shall have occurred and be continuing and the
Trustee or the Transition Bondholders representing a majority of the Outstanding
Amount of the Transition Bonds have declared the Transition Bonds to be
immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All Principal payments on the Class __ Transition Bonds shall be made
pro rata to the Class __ Transition Bondholders entitled thereto based on the
respective Principal amounts of the Series 2001-1 Transition Bonds held by them.

               Payments of Interest on this Class __ Transition Bond due and
payable on each Payment Date, together with the installment of Principal or
premium, if any, due on this Class __ Transition Bond on such Payment Date shall
be made by check mailed first-class, postage prepaid, to the Person whose name
appears as the Holder of this Class __ Transition Bond in the Transition Bond
Register as of the close of business on the Record Date or in such other manner
as may be provided in the Series 2001-1 Supplement, except that with respect to
Class __ Transition Bonds registered on the Record Date in the name of a
Clearing Agency, payments will be made by wire transfer in immediately available
funds to the account designated by such Clearing Agency and except for the final
installment of Principal and premium, if any, payable with respect to this Class
__ Transition Bond on a Payment Date which shall be payable as provided below.
Such checks shall be mailed to the Person entitled thereto at the address of
such Person as it appears in the Transition Bond Register as of the applicable
Record Date without requiring that this Class __ Transition Bond be submitted
for notation of payment. Any reduction in the Principal amount of this Class __
Transition Bond (or any one or more predecessors to such Transition Bond)
effected by any payments made on any Payment Date shall be binding upon all
future Transition Bondholders of this Class __ Transition Bond and of any Class
__ Transition Bond issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid Principal amount of this Class __ Transition Bond on a
Payment Date, then the Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Holder hereof as of the second preceding Record
Date to such Payment Date by notice mailed no later than five days prior to such
final Payment Date and shall specify that such final installment will be payable
to the Holder hereof as of the Record Date immediately preceding such final
Payment Date and only upon presentation and surrender of this Class __
Transition Bond and shall specify the place where this Class __ Transition Bond
may be presented and surrendered for payment of such installment.

               The Issuer shall pay Interest on overdue installments of Interest
on this Class __ Transition Bond at the Bond Rate for Class __ to the extent
lawful.

               As provided in the Indenture and subject to certain limitations
set forth therein, the transfer of this Class __ Transition Bond may be
registered in the Transition Bond Register upon surrender of this Class __
Transition Bond for registration of transfer at the office or agency designated
by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Trustee duly executed
by the Holder hereof or his attorney duly authorized in writing, with such
signature guaranteed by an Eligible Guarantor Institution, and thereupon one or
more new Class __ Transition Bonds of any Authorized Denominations and in the
same aggregate unpaid Principal amount will be issued to the designated
transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Class __ Transition Bond, but the
transferor may be required to pay a

<PAGE>

sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange.

               Prior to the due presentment for registration of transfer of this
Class __ Transition Bond, the Issuer, the Trustee and any agent of the Issuer or
the Trustee may treat the Person in whose name this Class __ Transition Bond is
registered (as of the day of determination) as the owner hereof for the purpose
of receiving payments of Principal of and premium, if any, and Interest on this
Class __ Transition Bond and for all other purposes whatsoever, whether or not
this Class __ Transition Bond be overdue, and neither the Issuer, the Trustee
nor any such agent shall be affected by notice to the contrary.

               The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Transition Bondholders under the
Indenture at any time by the Issuer with the consent of the Transition
Bondholders representing a majority of the Outstanding Amount of all Transition
Bonds at the time Outstanding of each Series or Class to be affected. The
Indenture also contains provisions permitting the Transition Bondholders
representing specified percentages of the Outstanding Amount of the Transition
Bonds of all Series, on behalf of all Transition Bondholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Transition Bondholders of this Class __ Transition Bond (or any
one or more predecessors of such Transition Bonds) shall be conclusive and
binding upon such Transition Bondholder and upon all future Transition
Bondholders of this Class __ Transition Bond and of any Class __ Transition Bond
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof whether or not notation of such consent or waiver is made upon this Class
__ Transition Bond. The Indenture also permits the Trustee to amend or waive
certain terms and conditions set forth in the Indenture without the consent of
the Transition Bondholders.

               The term "Issuer" as used in this Class __ Transition Bond
includes any successor to the Issuer under the Indenture.

               The Issuer is permitted by the Indenture, under certain
circumstances, to merge or consolidate.

               The Class __ Transition Bonds are issuable only in registered
form in Authorized Denominations as provided in the Indenture and the Series
2001-1 Supplement, subject to certain limitations therein set forth.

               This Class __ Transition Bond, the Indenture and the Series
2001-1 Supplement shall be construed in accordance with the laws of the State of
Texas, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

               No reference herein to the Indenture and no provision of this
Class __ Transition Bond or of the Indenture shall alter or impair the
obligation of the Issuer, which is absolute and unconditional, to pay the
Principal of and Interest on this Class __ Transition Bond at the times, place,
and rate, and in the coin or currency herein prescribed.

<PAGE>

                                   ASSIGNMENT

    Social Security or taxpayer I.D. or other identifying number of assignee

               FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _______________

                         (name and address of assignee)

the within Class __ Transition Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints

                         (name and address of appointee)

attorney, to transfer said Class __ Transition Bond on the books kept for
registration thereof, with full power of substitution in the premises.

Dated:

                                                                           *
_______________          __________________________________________________
                         Signature Guaranteed:

_______________          __________________________________________________

*    NOTE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Class __ Transition
Bond in every particular, without alteration, enlargement or any change
whatsoever.<PAGE>

                                                                     Exhibit 4.7

                              AMENDED AND RESTATED
                            CERTIFICATE OF FORMATION

                                       OF

                   RELIANT ENERGY TRANSITION BOND COMPANY LLC

     AMENDED AND RESTATED CERTIFICATE OF FORMATION, dated October 22, 2001 (as
the same may be further amended, supplemented or otherwise modified and in
effect from time to time, this "Certificate of Formation"), of RELIANT ENERGY
                                ------------------------
TRANSITION BOND COMPANY LLC, a Delaware limited liability company (the
"Company"), having its principal office at 1111 Louisiana, Suite 4667, Houston,
 -------
Texas 77002.

     THIS Certificate of Formation has been duly executed and is being filed by
the undersigned, as an authorized person, in accordance with the provisions of 6
Del. C. (S) 18-208, to amend and restate the original Certificate of Formation
of the Company, which was filed under the name of the Company on November 10,
1999, with the Secretary of State of the State of Delaware (the "Original
Certificate"), to form a limited liability company under the Delaware Limited
Liability Company Act (6 Del. C. (S) 18-101, et seq.).

     The Original Certificate is hereby amended and restated in its entirety to
read as follows:

     SECTION 1. Capitalized Terms. Unless otherwise defined herein, all
capitalized terms shall have the meanings ascribed thereto in the Amended and
Restated Limited Liability Company Agreement of the Company, dated as of October
24, 2001 (as it may be further amended, supplemented or otherwise modified and
in effect from time to time, the "Agreement").
                                  ---------

     SECTION 2. Name. The name of the limited liability company is Reliant
Energy Transition Bond Company LLC.

     SECTION 3. Address. The address of its registered office in the State of
Delaware is 1209 Orange Street, Wilmington, New Castle County, Delaware 19801.
The name of its registered agent at such address is The Corporation Trust
Company.

     SECTION 4. Term. The term of the Company shall continue until the Company
is dissolved and liquidated in accordance with Section 7 hereof and of the
Agreement. The existence of the Company as a separate legal entity shall
continue until the cancellation of this Certificate of Formation in accordance
with the Delaware Limited Liability Company Act, currently 6 Del. C. (S)(S)
18-101 through 18-1109 (as amended, the "Act").
                                         ---

     SECTION 5. Independent Managers.

     (a) The Company shall have at all times at least two individuals who are
each Independent Managers. The Independent Managers may not delegate their
duties, authorities or responsibilities hereunder or under the Agreement. If any
Independent Manager resigns, dies or becomes incapacitated, or such position is
otherwise vacant, no action requiring the unanimous

<PAGE>

affirmative vote of the Managers shall be taken until a successor Independent
Manager is appointed by the Member and qualifies and approves such action.

     (b) Notwithstanding any other provision of this Certificate of Formation or
of the Agreement and any provision of law that otherwise so empowers the
Company, the Member, any Special Member, any Manager or any other Person, the
Company shall not, and none of the Member, any Special Member, any Manager or
any other Person on behalf of the Company shall, without the prior unanimous
consent of the Managers, including each of the Independent Managers, do any of
the following: (i) engage in any business or activity other than those set forth
in Section 2.03 of the Agreement; (ii) except as provided in the Basic
   ------------
Documents, incur any indebtedness, other than the Transition Bonds and ordinary
course expenses as set forth in Section 2.03 of the Agreement, or assume or
                                ------------
guarantee any indebtedness of any other entity; (iii) make a general assignment
for the benefit of creditors; (iv) file a petition commencing a voluntary
bankruptcy; (v) file a petition or answer seeking reorganization, arrangement,
composition, readjustment, liquidation, dissolution (to the fullest extent
permitted by law) or similar relief under any statute, law or regulation; (vi)
file an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against it in any proceeding seeking
reorganization, arrangement, composition, readjustment, liquidation, dissolution
(to the fullest extent permitted by law) or similar relief under any statute,
law or regulation, or the entry of any order appointing a trustee, liquidator or
receiver of it or of its assets or any substantial portion thereof; (vii) seek,
consent to or acquiesce in the appointment of a trustee, receiver or liquidator
of it or of all or any substantial part of its assets; (viii) consolidate or
merge with or into any other entity or convey or transfer substantially all of
its properties and assets substantially as an entirety to any entity, or (ix)
amend the Agreement, or take any other action, in furtherance of any such
action. With regard to any action contemplated by the preceding sentence, or
with regard to any action taken or determination made at any time when the
Company is insolvent, each Independent Manager will to the fullest extent
permitted by law, including Section 18-1101(c) of the Act, owe its primary
fiduciary duty to the Company (including the creditors of the Company).

     (c) No Independent Manager shall at any time serve as trustee in bankruptcy
for any Affiliate of the Company.

     SECTION 6. Special Member. Upon the occurrence of any event that causes the
Member to cease to be a member of the Company (other than upon an assignment by
the Member of all of its limited liability company interest in the Company and
the admission of the transferee pursuant to Section 7.01 of the Agreement), each
                                            ------------
person acting as an Independent Manager pursuant to Section 5 hereof and Section
                                                    ---------            -------
4.04 of the Agreement shall, without any action of any Person and simultaneously
----
with the Member ceasing to be a member of the Company, automatically be admitted
to the Company as a Special Member and shall continue the Company without
dissolution. No Special Member may resign from the Company or transfer its
rights as a Special Member unless (i) a successor Special Member has been
admitted to the Company as a Special Member by executing a counterpart to the
Agreement, and (ii) such successor has also accepted its appointment as
Independent Manager, provided, however, the Special Members shall automatically
                     --------  -------
cease to be members of the Company upon the admission to the Company of a
substitute Member (who may be approved by the personal representative of the
last Member that ceased to be a member of the Company). Each Special Member
shall be a

<PAGE>

member of the Company that has no interest in the profits, losses and capital of
the Company and has no right to receive any distributions of Company assets.
Pursuant to Section 18-301(d) of the Act, a Special Member shall not be required
to make any capital contributions to the Company and shall not receive a limited
liability company interest in the Company. A Special Member, in its capacity as
Special Member, may not bind the Company. A Special Member, in its capacity as a
Special Member, shall have no right to vote on, approve or otherwise consent to
any action by, or matter relating to, the Company, including, without
limitation, the merger, consolidation or conversion of the Company. In order to
implement the admission to the Company of each Special Member, each person
acting as an Independent Manager pursuant to Section 5 hereof and Section 4.04
                                             ---------            ------------
of the Agreement shall execute a counterpart to the Agreement. Prior to its
admission to the Company as a Special Member, each person acting as an
Independent Manager pursuant to Section 5 hereof and Section 4.04 of the
                                ---------            ------------
Agreement shall not be a member of the Company.

     SECTION 7. Rights on Liquidation, Dissolution or Winding Up.

     (a) The Company shall be dissolved, and its affairs shall be wound up upon
the first to occur of the following: (i) the termination of the legal existence
of the last remaining member of the Company or the occurrence of any other event
which terminates the continued membership of the last remaining member of the
Company in the Company unless the business of the Company is continued in a
manner permitted by the Agreement or the Act or (ii) the entry of a decree of
judicial dissolution under Section 18-802 of the Act.

     (b) In the event of dissolution, the Company shall conduct only such
activities as are necessary to wind up its affairs (including the sale of the
assets of the Company in an orderly manner), and the assets of the Company shall
be applied in the manner, and in the order of priority, set forth in Section
18-804 of the Act.

     (c) The Company shall terminate when (i) all of the assets of the Company,
after payment of or due provision for all debts, liabilities and obligations of
the Company shall have been distributed to the Member in the manner provided for
in the Agreement and (ii) this Certificate of Formation shall have been canceled
in the manner required by the Act.

     (d) Neither the sale of all or substantially all of the property or
business of the Company, nor the merger, conversion or consolidation of the
Company into or with another company or other entity, shall be deemed to be a
dissolution, liquidation or winding up, voluntary or involuntary, for the
purpose of this Section 7 and Section 7.03 of the Agreement.
                ---------     ------------

     (e) The commencement of a Bankruptcy, insolvency, receivership or other
similar proceeding by or against the Company shall not result in the dissolution
of the Company or in the cessation of the interest of the Member in the Company.

     (f) Upon the occurrence of any event that causes the last remaining member
of the Company to cease to be a member of the Company, to the fullest extent
permitted by law, the personal representative of such member is hereby
authorized to, and shall, within 90 days after the occurrence of the event that
terminated the continued membership of such member in the Company, agree in
writing (i) to continue the Company and (ii) to the admission of the

<PAGE>

personal representative or its nominee or designee, as the case may be, as a
substitute member of the Company, effective as of the occurrence of the event
that terminated the continued membership of the last remaining member of the
Company in the Company.

     (g) Notwithstanding any other provision of this Certificate of Formation or
of the Agreement, the Bankruptcy of the Member or any Special Member shall not
cause the Member or Special Member, respectively, to cease to be a member of the
Company, and upon the occurrence of such an event, the business of the Company
shall continue without dissolution.

     SECTION 8. No Bankruptcy Petition; No Dissolution.

     (a) To the fullest extent permitted by law, the Member, each Special Member
and each Manager hereby covenants and agrees (or shall be deemed to have hereby
covenanted and agreed) that, prior to the date which is one year and one day
after the termination of the Indenture and the payment in full of every Series
of Transition Bonds and any other amounts owed under the Indenture, including,
without limitation, any amounts owed to third-party credit enhancers or swap or
hedge agreement counterparties with respect to the Transition Bonds, it will not
acquiesce, petition or otherwise invoke or cause the Company to invoke the
process of any court or Governmental Authority for the purpose of commencing or
sustaining a case against the Company under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Company or any
substantial part of the property of the Company, or ordering the winding up or
liquidation of the affairs of the Company; provided, however, that nothing in
                                           --------  -------
this Section 8 or Section 10.06 of the Agreement shall constitute a waiver of
     ---------    -------------
any right to indemnification, reimbursement or other payment from the Company
pursuant to the Agreement.

     (b) To the fullest extent permitted by law, the Member, each Special Member
and each Manager hereby covenants and agrees (or shall be deemed to have hereby
covenanted and agreed) that, until the termination of the Indenture and the
payment in full of any Series of the Transition Bonds and any other amounts owed
under the Indenture, including without limitation, any amounts owed to
third-party credit enhancers or under any swap or hedge agreement, the Member,
such Special Member and such Manager will not consent to, or make application
for, or institute or maintain any action for, the dissolution of the Company
under Section 18-801 or 18-802 of the Act or otherwise.

     (c) In the event that the Member, any Special Member or any Manager takes
action in violation of this Section 8 or Section 10.06 of the Agreement, the
                            ---------    -------------
Company agrees that it shall file an answer with the court or otherwise properly
contest the taking of such action and raise the defense that the Member, the
Special Member or Manager, as the case may be, has agreed in writing not to take
such action and should be estopped and precluded therefrom and such other
defenses, if any, as its counsel advises that it may assert.

     (d) The provisions of this Section 8 and Section 10.06 of the Agreement
                                ---------     -------------
shall survive the termination of the Agreement and the resignation, withdrawal
or removal of the Member, any Special Member or any Manager. Nothing contained
herein or in the Agreement shall preclude participation by the Member, any
Special Member or a Manager in assertion or defense of its claims in any such
proceeding involving the Company.

<PAGE>

     SECTION 9. Conflict. In the event of any conflict or inconsistency between
the provisions of this Certificate of Formation and of the Agreement, the
provisions of this Certificate of Formation shall govern.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Amended
and Restated Certificate of Formation of Reliant Energy Transition Bond Company
LLC this 22nd day of October, 2001.

                                           RELIANT ENERGY, INCORPORATED
                                           as an authorized person

                                           By: _________________________________
                                           Name:  Marc Kilbride
                                           Title: Treasurer

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