Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

Effective Date: 05/01/1994, Docket: RP93- 4-017, Status: Effective

Second Revised Sheet No. 195 Second Revised Sheet No. 195 : Effective

Superseding: 2 Sub 1 Revised Sheet No. 195

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

with a supplier upon reasonable terms, or (2) is required to

purchase gas during the negotiation process, GSRC shall

include the Price Differential times the volume of gas MRT

is obligated to take from such supplier over the period in

question.

(ii) In the event gas is sold pursuant to Section

16.3(b)(i)(2), the term "GSRC Index Price" shall mean: (1)

for gas supplies connected directly to MRT, the index for

spot gas delivered to MRT (West Leg) as published in the

first issue of Gas Daily for the month of delivery; (2) for

gas supplies connected to Arkla Energy Resources Company

(AER), the index for spot gas delivered to AER as published

in the first issue of Inside FERC's Gas Market Report

(IFGMR) for the month of delivery; (3) for gas supplies

connected to Natural Gas Pipeline Company of America (NGPL),

the index for spot gas delivered to NGPL in Oklahoma,

Louisiana or Texas (Gulf Coast Line), depending on the

geographical source of the gas, as published in the first

issue of IFGMR for the month of delivery; (4) for gas

connected to Koch Gateway Pipeline (KGPL), the index for

spot gas delivered to KGPL in Louisiana, published in the

first issue of IFGMR for the month of delivery; and, (5) for

gas connected to Trunkline Gas Company (Trunkline), the

index for spot gas delivered to Trunkline in its Field Zone,

as published in the first issue of IFGMR for the month of

delivery.

(iii) "GSRC Reservation Surcharge" shall mean the per

MMBtu amount required under Rate Schedules FTS and SCT to

recover ninety (90) percent of MRT's Recoverable GSRC, as

defined in Section 16.3(b)(xiii), plus any applicable

carrying charges. Carrying charges for each GSRC Collection

Period shall be calculated in accordance with Section 154.67

of the Commission's Regulations. The GSRC Reservation

Surcharge shall be stated in Sheet Nos. 5 and 6 of this

tariff, as the same may change from time to time.

Derivation of the GSRC Reservation Surcharge shall be in

accordance with the methodologies contained in MRT's filings

in Docket Nos. RP94-68-000 and RP94-190-000, as accepted by

the Commission, and such surcharge shall be based on firm

service contract demands in effect on the date of the