Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

Effective Date: 12/01/2002, Docket: RP03- 51-000, Status: Effective

First Revised Sheet No. 99C First Revised Sheet No. 99C : Effective

Superseding: Fourth Substitute Original Sheet No. 99C

GENERAL TERMS AND CONDITIONS

(Continued)

5. PROCEDURES FOR REQUESTING SERVICE (Continued)

(e) Award of Capacity: MRT shall comply with Commission

requirements regarding the award of available firm capacity on its

system. MRT shall not be obligated to accept any rate for capacity

which is less than MRT's maximum authorized rate. Before capacity is

posted, MRT may establish a reserve rate less than its maximum rate.

Notice of the establishment of a reserve rate will be included in MRT's

Open Season notice, provided that such reserve rate shall not be

disclosed at the time of posting but shall be recorded and maintained by

MRT for a period of three (3) years for validation purposes. Upon

reasonable notice to MRT, but not before the earlier of (1) 10 days

after the close of the Open Season process, or (2) the posting of a

successful bid(s), a Customer or prospective Customer submitting a bid

that is not withdrawn prior to the end of the Open Season may review the

record of the reserve rate at MRT's offices during normal business

hours.

In the event firm capacity on MRT is available for subscription and MRT

awards such capacity, such capacity shall be awarded to Customers that

meet MRT's creditworthiness standards (as set forth in Section 26 of the

General Terms and Conditions) based upon MRT's analysis of the

incremental revenues expected to be produced, lost, or affected if the

request for service is accepted.

The determination of incremental revenues to MRT shall be based upon the

following Bid Value and other objective and nondiscriminatory factors

determined by MRT to be relevant to the granting of the request:

(1) For each month of the term of the bid, the quantity and rate

per Dth stated in the qualifying bid shall be multiplied

together to derive a gross monthly revenue figure.

(2) Each gross monthly revenue figure shall be divided by the

maximum daily quantity of any month during the contract term

and the number of days in the month to derive a bid rate.

(3) Each bid rate shall be discounted to a net present value

figure using the current Federal Energy Regulatory

Commission interest rate as defined in 18 C.F.R. Section

154.501(d).

(4) The net present value figures shall be summed, and the sum

shall be the bid value.

(5) The qualifying bid(s) , which produces the highest bid value

to MRT, will be deemed to be the best bid(s).