Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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

Second Revised Sheet No. 194 Second Revised Sheet No. 194 : Effective

Superseding: First Revised Sheet No. 194

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

of Recoverable GSRC, as defined in Section 16.3(b)(xiii). Ten

(10) percent of Recoverable GSRC shall be allocated to the rates

for volumes transported under Rate Schedule ITS. Such GSRC

Reservation Surcharges and the allocation of GSRC to Rate Schedule

ITS shall be calculated to recover the Recoverable GSRC which are

known and measurable as of the time of the filing. MRT shall be

entitled to update and revise either upward or downward, the GSRC

amount used for the development of the Reservation Surcharge, GSRC

allocated to Rate Schedule ITS, and/or Exit Fee through additional

filings in order to permit MRT to recover all Recoverable GSRC,

and to ensure that MRT will not overcollect the Recoverable GSRC.

Customers accepting assignment of problem gas supply contracts

shall receive credit against their overall GSRC liability.

(b) Definitions

(i) "GSRC" shall mean costs including amounts in

cash or other consideration incurred by MRT to eliminate or

modify existing supply commitments set forth in Appendix C

to the May 13, 1994 Base Stipulation and Agreement filed in

Docket Nos. RP93-4-000, RP94-68-000, and RP94-190-000, and

approved by the Commission at 68 FERC Paragraph 61159

(1994) (hereinafter May 13, 1994 Base Stipulation and

Agreement). MRT shall not be entitled to recover GSRC

relating to supply commitments not listed on that Appendix.

Appendix` C and the underlying gas supply contracts may be

reviewed by any party at MRT's St. Louis office in

accordance with the terms of the Protective Order issued on

February 28, 1994 in Docket No. RP94-68-000. Such amounts

shall include, without limitation, payments to suppliers to

buy out or buy down contract volumes or prices under gas

supply contracts; to terminate such contracts; to reform

volume, take-or-pay, minimum take, price or any other

pertinent terms of any gas purchase agreement; to satisfy

damage awards to suppliers arising out of a court order or

arbitration related to gas supply contracts, or to cover

costs that arise as a result of tax liability or contingent

excess royalty reimbursement clauses and payments to any

other party in consideration of that party taking assignment

of MRT's problem gas supply contracts. In instances where

MRT is either (1) unable to reach a negotiated resolution