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. 589 First Revised Sheet No. 589

Superseding: Original Sheet No. 589

GENERAL TERMS AND CONDITIONS

(continued)

23. TRANSITION COSTS RECOVERY MECHANISM (continued)

full amount due has been paid or collected.

(3) Notwithstanding a negotiated payment period

longer than the three (3) Month period provided

hereinabove, the GSR Costs demand surcharge

amounts hereunder, together with applicable

interest charges, shall accrue in full as of the

effective date of any quarterly filing, and

shall be unaffected by, and shall remain in

effect following, any expiration or termination

of Shipper's Service Agreement.

(ii) Transporter shall file to be effective September 1,

1994, and each September 1 thereafter, revised rates

for Rate Schedule IT service which shall be designed

to recover over the following twelve (12) Months ten

percent (10%) of the GSR Costs described above which

are actually incurred during the four quarters

preceding Transporter's filing and which are known and

measurable plus interest. The mechanism set forth in

Section 23.2(b)(iv) to determine whether Transporter

has recovered GSR Costs allocated to Rate Schedule IT

shall not be applied in a manner that will deduct

twice the applicable surcharges and variable costs

associated with providing Rate Schedule IT service.

(iii) Only Price Differential GSR Costs incurred and booked

by Transporter during the two Year period beginning

September 1, 1993 may be recovered pursuant to the

mechanism described above, unless Transporter files

with the Commission and the Commission authorizes an

extension of this two Year period. All other GSR

Costs incurred and booked by Transporter during the

three Year period beginning September 1, 1993 may be