Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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

Second Revised Sheet No. 139 Second Revised Sheet No. 139 : Effective

Superseding: First Revised Sheet No. 139

GENERAL TERMS AND CONDITIONS

(Continued)

9. SYSTEM MANAGEMENT (Continued)

(f) Any Customer which fails to adjust its receipts and/or

deliveries in compliance with an Operational Flow Order, subject to the

other provisions of this section, shall be assessed a penalty for the

quantity variance between the Customer's conduct and the conduct

required by the OFO, as follows: (i) if MRT has issued a Standard

Operational Flow Order, there shall be a penalty of $10.00 per Dth, and

the Highest Daily Reference Spot Price, per Dth, shall be added to such

penalty amount; and (ii) if MRT has issued an Emergency Response

Operational Flow Order, there shall be a penalty of $25.00 per Dth, and

the Highest Daily Reference Spot Price, per Dth, shall be added to such

penalty amount. The Highest Daily Reference Spot Price is defined as

the highest spot price during the OFO period, which price shall be

determined in the same manner as the daily prices used to calculate the

Index Sell Price in Section 10.3 of these General Terms and Conditions.

The Customer shall not be subject to such penalties and charges if

Customer has complied within a reasonable range, which range shall be

specified in the Operational Flow Order to the extent operationally

feasible. Variances which improve system integrity will not be

penalized. During periods in which OFOs are in effect, unless critical

circumstances dictate otherwise, OFO penalties will not be imposed when

a nomination is required to comply with the OFO and the Customer has not

been given an opportunity to correct the circumstances giving rise to

the OFO.

(g) Any Customer failing to abide by an Operational Flow Order

issued pursuant to this Section shall be subject to any applicable

penalties, shall be responsible for damages, and shall indemnify MRT

against any claims by third parties resulting from the Customer's

failure to comply with the Operational Flow Order.

(h) MRT shall maintain a log on its Internet web site of the

Operational Flow Orders it issues, which shall show the date and time

the Operational Flow Order was issued; the duration of the

Operational Flow Order; the action the Customer(s) was ordered to

take; the factors causing the Operational Flow Order to be issued;

and the factors causing the Operational Flow Order to be lifted.

Each log entry will remain posted on the Internet web site for at

least thirty (30) days.