Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 04/01/2003, Docket: RP00-410-003, Status: Effective

Second Revised Sheet No. 127 Second Revised Sheet No. 127 : Effective

Superseding: 2nd Sub First Revised Sheet No. 127

GENERAL TERMS AND CONDITIONS

(Continued)

8. NOMINATIONS, SCHEDULING, AND CURTAILMENT (Continued)

(b) In the event of a curtailment pursuant to Section 8.3(a)

above, interruptible and authorized overrun services shall be

curtailed first. Interruptible and authorized overrun services shall

be curtailed from lowest to highest rate. Interruptible and

authorized overrun Customers may elect to waive discounts during

curtailments; any such election shall be reflected in any discount

agreement between MRT and the Customer. Interruptible and authorized

overrun services at maximum rate shall be curtailed after all

discounted interruptible and authorized overrun services have been

curtailed. In the event that interruptible and authorized overrun

service at the same rate must be curtailed, service shall be

curtailed pro rata based on confirmed nominations. Following the

curtailment of all interruptible and authorized overrun

transportation services, firm transportation service shall be

curtailed pro rata based on each Customer's MDQ in each zone. Firm

Customers utilizing secondary receipt points without Line Priority

will be curtailed before such Customers with Line Priority.

Following the curtailment of all interruptible and authorized overrun

storage withdrawals, firm storage withdrawals shall be curtailed pro

rata based on each Customer's current maximum daily deliverability.

Following the curtailment of all interruptible and authorized overrun

storage injections, firm storage injections will be curtailed pro

rata based on contracted storage capacity.

(c) All volumes received and/or taken in violation of MRT's

curtailment or interruption orders shall constitute unauthorized

receipts or deliveries of gas for which a charge of $20.00 per Dth

shall be assessed in addition to any other applicable rate, charge or

penalty. Such charge shall be applicable to all such unauthorized

receipts and deliveries following notification of curtailment or

interruption, in violation of curtailment or interruption orders

issued by MRT, which orders may be given by telephone, confirmed by

facsimile transmission or any other reasonable means.