Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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

Third Revised Sheet No. 174 Third Revised Sheet No. 174 : Effective

Superseding: Second Revised Sheet No. 174

GENERAL TERMS AND CONDITIONS

(Continued)

 

14. CAPACITY RELEASE (Continued)

 

14.8 Permanent Release of Firm Capacity

 

(a) If a Releasing Customer releases its capacity permanently,

MRT's approval of the Pre-Arranged Replacement Customer or the Winning

Bidder shall not relieve the Releasing Customer of its liability to MRT

for any difference between the Releasing Customer's Maximum Firm

Transportation Charge (or, if MRT and the Releasing Customer have agreed

to a different rate, the agreed upon rate) plus any other liabilities of

the Releasing Customer to MRT, and the Winning Bidder's rate, unless, in

cases where the Releasing Customer has agreed to pay MRT's Maximum Firm

Transportation Charge, the Pre-Arranged Replacement Customer or Winning

Bidder agrees to pay MRT the Maximum Firm Transportation Charge for the

released capacity and agrees to assume all other obligations of the

Releasing Customer. MRT's decision to relieve the Releasing Customer of

its liability to MRT shall be reasonably exercised on a not unduly

discriminatory basis. Unless the Releasing and Replacement Customer

agree otherwise, the Releasing Customer shall remain liable for any exit

fee negotiated by and between MRT and the Releasing Customer that is

associated with the permanent release of the Releasing Customer's

capacity. MRT may not unilaterally impose an exit fee on a Releasing

Customer.

 

(b) If the Pre-Arranged Replacement Customer does not meet the

credit criteria set forth in Section 5.4(k) of these General Terms and

Conditions, the Releasing Customer may still permanently release its

capacity to such Replacement Customer if it agrees to indemnify MRT for

all charges and costs that may be incurred by the Replacement Customer

for the remaining term of the Releasing Customer's Service Agreement.

 

14.9 Contracting for Released Capacity