Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-466-000, Status: Effective

Sixth Revised Sheet No. 175 Sixth Revised Sheet No. 175 : Effective

Superseding: Substitute Fifth Revised Sheet No. 175

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE (Continued)

(a) The Replacement Capacity Agreement shall contain the

Replacement Customer's receipt and delivery points, MDQ, Primary or

Secondary Path, as applicable, Line Priority and Rate Zone Capacity. A

Replacement Customer's Line Priority with respect to a Secondary Path

shall be the quantities released by the Releasing Customer consistent

with its existing Line Priority on a particular line within a rate zone

for receipts, and the sum of delivery point quantities on a particular

line within a rate zone for deliveries.

(b) Subject to MRT's tariff and the terms of the Release Offer,

each Replacement Customer assumes the rights and obligations of the

Releasing Customer, including the use of Secondary Receipt and Delivery

Points associated with the Primary or Secondary Path released.

(c) Any Replacement Customer under a temporary release may not

request a change in Primary Receipt or Primary Delivery Point(s) unless

the original Releasing Customer has evidenced its agreement to any such

change by including it in its Release Offer.

14.10 Allocation of Quantities and Billing for Releases

(a) MRT will track a Replacement Customer's quantities for the

term of the release, and allocate quantities and charges between a

Releasing Customer and a Replacement Customer for services and penalties

accordingly. In the event of an intraday capacity release recall, MRT

will determine the allocation of capacity between the Releasing Customer

and the Replacement Customer(s) based upon the Elapsed Prorata Capacity

and the Releasing and Replacement Customers' applicable contract

entitlements to line, zone and point capacity shall be adjusted

accordingly. Variations to the use of Elapsed Prorata Capacity may be

necessary to reflect the nature of MRT's tariff, services and/or

operational characteristics. MRT shall not be obligated to deliver in

excess of the total daily contract quantity of the release as a result

of recall. The amount of capacity allocated to the Replacement

Customer(s) will equal the original released capacity less the recalled

capacity that is adjusted based upon the Elapsed Prorata Capacity or

other tariff-specific variations of the Elapsed Prorata Capacity as

described above.