Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 01/01/2010, Docket: RP10-206-000, Status: Effective

First Revised Sheet No. 560A First Revised Sheet No. 560A

Superseding: Substitute Original Sheet No. 560A

 

GENERAL TERMS AND CONDITIONS

(continued)

 

19. CAPACITY RELEASE (continued)

 

19.12 Transporter's Right to Terminate a Temporary Release. Transporter

may elect to terminate a temporary replacement Shipper's Service

Agreement(s) upon thirty (30) Days' written or electronic notice,

under the following conditions:

 

(a) (i) The releasing Shipper has failed to make payment when

due under any or all of its Service Agreement(s)

and/or has failed to maintain solvency or demonstrate

creditworthiness (or provide good and sufficient

security) in accordance with the provisions of

Transporter's Tariff; and

 

(ii) Transporter has commenced the termination process in

accordance with the terms of the Tariff; provided,

however, that termination of the replacement

Shipper's Service Agreement shall not occur prior to

termination of the releasing Shipper's Service

Agreement; and/or

 

(b) The rate the replacement Shipper is obligated to pay under

the release, as determined by the terms of the release and

Transporter's Tariff, is less than the rate under

Transporter's Service Agreement with the releasing Shipper

(or, if the releasing Shipper is paying a negotiated rate,

the sum of all reservation-type and commodity-type charges);

provided, however, that a creditworthy replacement Shipper

can continue an existing capacity release by notifying

Transporter in writing within the notice period that it

agrees to pay a rate for the remainder of the term of

replacement Shipper's Service Agreement that equals the

lower of: (i) the applicable maximum rate; (ii) the same

rate as the releasing Shipper agreed to pay Transporter, or

(iii) a rate mutually agreed to by Transporter and

replacement Shipper. Notification by replacement Shipper of

its agreement to (i) or (ii) shall be deemed to modify the

award of capacity to the replacement Shipper to reflect the

change in terms of the capacity release transaction. Any

such agreement referred to in (iii) above must be finalized

prior to the end of the thirty (30) Day notice period;

and/or