Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-436-000, Status: Effective

Third Revised Sheet No. 176 Third Revised Sheet No. 176 : Effective

Superseding: Second Revised Sheet No. 176

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE (Continued)

(c) If payment is not received from the Replacement Customer as

set forth in this section, then MRT shall reverse the credit(s) given

the Releasing Customer unless or until the Replacement Customer remits

the payment due. MRT shall notify the Releasing Customer as soon as

practicable of the Replacement Customer's payment delinquency, and the

Releasing Customer shall be entitled to recall the capacity released

from the defaulting Replacement Customer upon ten (10) days written

notice if the Replacement Customer's failure to pay continues for thirty

(30) days after payment is due. Defaults of Replacement Customers shall

be treated by MRT in accordance with Section 17 of these General Terms

and Conditions. Any defaulting Replacement Customer shall be prohibited

from bidding for released capacity or entering into a new Replacement

Capacity Agreement, and such Replacement Customer may have further

services from MRT suspended so long as the defaulting Replacement

Customer fails to remit payment for the contracted released capacity.

Each Releasing Customer shall remain liable to MRT for monthly

reservation fees, surcharges, transition costs, and any other direct

bill amounts. The Releasing Customer shall not be liable for charges or

penalties incurred by the Replacement Customer as a result of the

Replacement Customer's own conduct.

(d) Unless the Releasing Customer specifies otherwise in the

applicable Release Offer or Pre-Arranged Release, MRT will provide the

Releasing Customer with Internet e-mail notification, reasonably

proximate in time with any of the following formal notices given by MRT

to the Releasing Customer's Replacement Customer(s), of the occurrence

of any of the following:

(i) Notice regarding past due, deficiency, or default status pursuant

to this tariff;

(ii) Notice regarding suspension of service;

(iii) Notice regarding contract termination due to default or credit-

related issues; and

(iv) Notice that Replacement Customer is no longer creditworthy and has

not provided credit alternatives pursuant to this tariff.