Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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

First Revised Sheet No. 588 First Revised Sheet No. 588

Superseding: Original Sheet No. 588

GENERAL TERMS AND CONDITIONS

(continued)

23. TRANSITION COSTS RECOVERY MECHANISM (continued)

to the projected date of payment in accordance with Section

154.305 of the Commission's regulations.

(i) Ninety percent (90%) of such GSR Costs shall be billed

to Shippers under Rate Schedules FT and NNTS as a

demand surcharge, in addition to any other rates and

charges specified in this Tariff or in individual

Service Agreements. Such quarterly demand surcharge

shall be based on Shippers' then current Contract

Demand levels. Any GSR Costs that would be allocable

to a reservation fee surcharge of a Shipper with a

discount contract entered into before September 1,

1993, and therefore such costs are not recoverable

under said contract, will be reallocated for recovery

from other Shippers.

(1) Transporter shall render a bill for the entire

amount of each Shipper's GSR Costs demand

surcharge with respect to any quarterly filing

at the same time as invoices are sent out

pursuant to Rate Schedules FT and NNTS. Such

amounts shall be payable in three (3) monthly

installments equal to one-third (1/3) of such

amount, each due on the date when other invoiced

amounts for such Months are due. Transporter

will negotiate longer payment terms with

individual Shippers in a manner that is not

unduly discriminatory. Such terms will include

interest calculated in accordance with Section

154.305 of the Commission's regulations.

(2) Should Shipper fail to pay any amounts payable

when due, additional interest charges shall

accrue thereon at the rate computed in

accordance with Section 154.305 of the

Commission's regulations, until such time as the