Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 03/18/2010, Docket: RP10-383-000, Status: Effective

Fourth Revised Sheet No. 590 Fourth Revised Sheet No. 590

Superseding: Third Revised Sheet No. 590

GENERAL TERMS AND CONDITIONS

(continued)

23. TRANSITION COSTS RECOVERY MECHANISM (continued)

recovered pursuant to the mechanism described above.

Transporter shall not be prohibited from recovering

any uncollected amounts related to GSR Costs incurred

during the periods described above pursuant to

methodologies approved by the FERC which may extend

beyond such time periods.

(iv) In conjunction with the filing to be made each year

by Transporter pursuant to Section 23.5 hereof,

Transporter shall determine whether Transporter has

recovered GSR Costs pursuant to Rate Schedule IT by

comparing total Rate Schedule IT, Rate Schedule SBS

and Rate Schedule PHS revenues during the twelve (12)

Months ended January 31 ("Accrual Period") against

the costs of service allocated to be recovered from

Rate Schedule IT, excluding GSR Costs. For the

purpose of this comparison, Rate Schedule IT revenues

shall include (a) revenue from FT, FT-2, and EFT

Service Agreements entered into on or after February

1, 1995, that are less than twelve (12) Months in

duration, and (b) revenue from Service Agreements

that provide for recurring (multi-year) Summer

Seasonal firm capacity pursuant to Section 1.2 of

Rate Schedule FT ("Short-Term Firm Revenues"). To

the extent such revenue exceeds such cost of service

allocation, Transporter shall consider such excess

revenue, less applicable surcharges and variable

costs associated with providing the service, to be

GSR Costs up to recovery of the GSR Costs allocated

to Rate Schedule IT for such period. If total Rate

Schedule IT, Rate Schedule PHS and Rate Schedule SBS

revenues for the period exceed the costs of service

and GSR costs allocated to Rate Schedule IT, the

resulting amount shall be defined as "Excess IT

Revenues." If said costs exceed said revenues, the

resulting amount shall be defined as "Remaining IT

Costs". The Excess IT Revenues or Remaining IT Costs

shall be netted in accordance with the procedure set

out in Section 23.7, hereof, to determine the amount

of IT Crediting Revenues, if any. Eighty percent

(80%) of any IT Crediting Revenues, less applicable