Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 08/01/1994, Docket: RP94-405-001, Status: Effective

Second Revised Sheet No. 193 Second Revised Sheet No. 193 : Effective

Superseding: First Revised Sheet No. 193

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

right to file to reallocate the charges for which provision is

made hereunder in the event the allocation methodology set forth

in Section 16.2(c) shall be determined to be ineffective.

(f) Reporting. MRT shall include in its initial Account

No. 191 and 858 recovery filing pursuant to Section 16.2(b) an

explanation of the status of contracts in litigation which sets

forth the details of the disputes and the costs involved. If MRT

deems it appropriate, MRT shall request authority to deviate from

the nine month Account No. 191 and 858 closeout provisions set

forth in Section 16.2(b) so that it may recover costs associated

with such contracts. Beginning on October 21, 1995, and on each

October 21st thereafter, MRT shall file a report with the

Commission detailing the status of all cost disputes and

litigation subject to the waiver of the nine month closeout

provisions set forth in Section 16.2(b). Thirty (30) days

following the closeout of Account No. 191 and Account No. 858

costs as set forth in Section 16.2(b), MRT shall file a report

with the Commission, including workpapers, detailing the final

balance in such accounts, including adjustments to amounts

collected or refunded as a result of final postings. Thirty days

following the completion of direct bill collections or refunds MRT

will file a report which sets forth amounts billed or refunded to

each Customer, including workpapers.

16.3 Recovery of Gas Supply Realignment Costs

(a) General

Gas Supply Realignment Costs (GSRC) incurred by MRT in

realigning its gas supply contracts to market levels as required

by Order No. 636, will be recovered by MRT by means of GSRC

Reservation Surcharges applicable to all FTS and SCT Customers

except those pre-November 1, 1993 contracts which were excluded

from MRT's filings in Docket No. RP94-68-000, the inclusion of a

portion of GSRC in the volumetric rates charged to ITS Customers,

and any Exit Fees agreed upon by MRT and its former Customers in

consideration of MRT's agreement to terminate such Customers'

service agreements prior to their dates of expiration. GSRC

Reservation Surcharges shall be applied to services provided under

Rate Schedules FTS and SCT for the recovery of ninety (90) percent