Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-567-000, Status: Effective

First Revised Sheet No. 587 First Revised Sheet No. 587

Superseding: Original Sheet No. 587

GENERAL TERMS AND CONDITIONS

(continued)

23. TRANSITION COSTS RECOVERY MECHANISM (continued)

net List B against List A) and the higher of (a) the price

paid by a third party purchaser from time to time for Gas

quantities available for sale attributable to such contracts

or (b) the GSR Index Price for the Month in which volumes

are purchased (the GSR Index Price for purposes hereof shall

be the arithmetic average of the daily prices quoted for

deliveries to Transporter in the Daily Price Surveys

published by Gas Daily for the last two (2) weeks of the

Month and for the Pooling Area or geographic area which most

closely approximates the applicable Pooling Area (if spot

prices are quoted for Transporter's Pooling Areas or other

geographic designations) in which the contract's delivery

points are located) times the quantity sold, and (iii) any

carrying costs related to prudently incurred, eligible GSR

Costs, calculated on and after the date such GSR Costs are

incurred and booked by Transporter. Transporter has filed

under seal List A and List B. List A sets forth the above

market contracts, and related information. Transporter will

not seek to recover Price Differential GSR Costs from

contracts not listed in List A. List B sets forth the

contracts, and related information, that allow Transporter

to buy Gas at less than market prices. List A and List B

are available for review in Shreveport and Washington, D.C.

upon execution of an appropriate protective and non-

disclosure agreement. Transporter will attempt to minimize

transition costs by, for example, negotiating to buyout,

buydown, modify or settle the terms and conditions of

Transporter's Gas supply contracts and by temporarily

assigning from time to time contracts pursuant to

Transporter's then existing assignment policy included on

Transporter's Internet Web Site. In the filings described

in Section 23.2(b), below, Transporter shall file to recover

any GSR Costs incurred by Transporter in seeking to minimize

transition costs as described above.

(b) Transporter shall make filings to be effective on January 1,

1994, and quarterly thereafter, subject to the receipt of

necessary Commission authorization, with respect to any GSR

Costs actually incurred by the end of the quarter preceding

the filing and which are known and measurable, plus interest

charges calculated from the date such costs are incurred and

booked