Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-433-000, Status: Effective

Second Revised Sheet No. 762 Second Revised Sheet No. 762 : Effective

Superseding: First Revised Sheet No. 762

[__________ SUPERSEDING]

ATTACHMENT A

TO THE [AMENDED AND RESTATED] AGREEMENT BETWEEN CEGT

AND ________________________________

[DATED ________________]

(TSA NO._______________)

(continued)

 

 

(f) Rate-Related Provisions:

 

(i) Consideration for Rate Granted: Transporter agrees to the rates specified in Attachment A in

exchange for Shipper's agreement to forego credits or other benefits to which Shipper would

otherwise be entitled, but only to the extent such credits or benefits would result in a

greater economic benefit over the term of Attachment A than that represented by the agreed-upon

rate. Accordingly, unless Transporter otherwise agrees, Shipper will not receive credits (with

the exception of (1) penalty revenue credits provided pursuant to Section 31 of the General

Terms and Conditions of Transporter's Tariff, and (2) capacity release credits) from rates,

refunds or other revenues collected by Transporter or Shipper if to do so would effectively

result in a lower rate or greater economic benefit to Shipper; provided, however, that (1) for

a Shipper taking service under a discount or recourse rate agreement, the rate in any month

shall never be above Transporter's applicable maximum Tariff rate, and (2) Transporter and a

Shipper taking service under a Negotiated Rate agreement can agree pursuant to Section 19.8 of

the General Terms and Conditions of Transporter's Tariff that Transporter will retain some or

all of the capacity release credits to the extent those credits exceed the amount of the

Shipper's invoiced demand component. If the parties' agreement to the foregoing is determined

invalid or if Shipper seeks to obtain credits or benefits inconsistent therewith, unless

Transporter otherwise agrees, it will have the right to immediately terminate or modify any

provisions of Attachment A that would allow Shipper to pay amounts less than the maximum

applicable Tariff rate.

 

(ii) Limitation on Agreed Upon Rate: Unless Transporter agrees otherwise, if at any time receipts

and/or deliveries are initially sourced into the system, nominated, scheduled and/or made, by

any means or by operation of any Tariff mechanisms, with respect to the capacity obtained by,

through or under the Agreement at points, or under conditions, other than those specified

herein or on Attachment A, then as of such date, and for the remainder of the Service Month in

which such non-compliance occurred, or the remainder of the term of the Agreement, whichever is

shorter, Shipper shall be obligated to pay no less than the maximum applicable Tariff rates for

service under the Agreement. This limitation shall not apply to the extent that Transporter

has requested Shipper to receive and/or deliver other than as specified herein or on Attachment

A. Such request may be made via e-mail, in writing, or via Internet Web Site posting, and the

document in which such request is made shall be deemed to amend this Agreement to the extent

applicable.

 

(iii) Regulatory Authority: Attachment A is subject to Section 16 of the GT&C of Transporter's

Tariff. Transporter and Shipper hereby acknowledge that Attachment A is subject to all valid

and applicable federal and local laws and to the orders, rules and regulations of any duly

constituted federal or local regulatory body or governmental authority having jurisdiction.

Any provision of Attachment A which is determined by any court or regulatory body having

jurisdiction to be invalid or unenforceable will be ineffective to the extent of such

determination only, without invalidating, or otherwise affecting the validity of, the remaining

provisions. Unless the parties agree otherwise, if Transporter has made a good faith

determination that a federal or local law, or order, rule or regulation of any governmental

authority having or asserting jurisdiction (1) requires performance by Transporter that is

inconsistent with the terms of Attachment A, or (2) conditions or prohibits the granting of

selective discounts or other rates specified in paragraph (c) of Attachment A, then Transporter

may provide notice that it intends to renegotiate Attachment A. If the parties fail to reach

agreement within forty-five (45) days of any renegotiation notice given pursuant to the terms

of this paragraph, then: (1) the rate provisions of Attachment A shall be terminated, and the

rate for service under Attachment A shall be Transporter's applicable maximum Tariff rate, or

(2) if Transporter's applicable maximum Tariff rate is greater than the rate for service under

Attachment A, at the Shipper's option, the Agreement and Attachment A shall terminate. The

effective date of this renegotiation or termination shall be first day of the month following

the end of the 45-day renegotiation period; provided, however, that the effective date will

comply with the requirements of the applicable federal or local law, or order, rule or

regulation of any governmental authority having or asserting jurisdiction.