Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 04/01/1998, Docket: RP98-108-001, Status: Effective

Third Revised Sheet No. 197 Third Revised Sheet No. 197 : Effective

Superseding: Second Revised Sheet No. 197

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS

(Continued)

(ix) The term "List A Contracts" shall mean all gas supply

contracts that require or may require MRT to buy gas at

greater than market prices, which are set forth in Appendix C of

the May 13, 1994 Base Stipulation and Agreement.

(x) The term "List B Contracts" shall mean all gas supply

contracts that allow or may allow MRT to buy gas at less than

market prices, which are set forth in Appendix C of the

May 13, 1994 Base Stipulation and Agreement.

(xi) "Price Differential" shall mean the difference between

the contract price under List A and List B Contracts and the

higher of (a) the price paid by a third party purchaser from

time to time for gas available for sale attributable to such

Contracts, or (b) the GSRC Index Price. Calculation of the Price

Differential shall be in accordance with MRT's filing in Docket

No. RP94-190. MRT's merchant division shall manage the day to

day performance of MRT's gas supply contracts which remain in

effect on and after November 1, 1993; provided, however, MRT

reserves the right to terminate its arrangement with its

merchant division and contract with another party to manage the

Contracts. In the event MRT's merchant division ceases to manage

the Contracts, all references to MRT's merchant division shall be

deemed to refer to the party actually managing the Contracts.

MRT's merchant division will manage the Contracts by purchasing

the quantities necessary to satisfy the minimum purchase

obligations under List A Contracts and the maximum quantities

available under List B Contracts in order to minimize GSRC and

resell such gas for the highest price it can obtain. MRT will

continue to negotiate to buy out, buy down, modify or settle the

terms and conditions of the Contracts from time to time in order

to minimize GSRC. At the time MRT files List A and List B, it

will make its List A and List B Contracts available for review in

its St. Louis office upon the execution of an appropriate

protective and non-disclosure agreement.

(xii) "Price Differential GSRC Recovery Filings" shall be

made periodically through July 31, 2000, with the initial

filing effective April 1, 1994 reflecting unrecovered price

differential costs which have been incurred.