Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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

Second Revised Sheet No. 201 Second Revised Sheet No. 201 : Effective

Superseding: Sub 1 Revised Sheet No. 201

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

a carryover GSRC Reservation Surcharge. The GSRC

Reservation Surcharge will be determined in accordance with

Section 16.3(b)(iii). The carryover GSRC Reservation

Surcharge shall remain in effect for one year following

Commission approval of such filing.

(iv) Notwithstanding anything in this provision, MRT

shall not be precluded from continuing to file and recover

in the manner described in this Section 16 any Recoverable

GSRC costs which MRT incurs subsequent to the 60-month

period set forth in Section 16.3(g)(i) hereinabove.

Pursuant to Order No. 636-B and the provisions of the May

13, 1994 Base Stipulation and Agreement, MRT reserves the

right to file a revised recovery plan for Recoverable GSRC

allocated to interruptible transportation service if MRT

determines that recovery of such allocated costs is not

possible.

16.4 Treatment of Stranded Investment and New Facilities Costs

(a) General

Subsequent to the effective date of this tariff, MRT shall

be permitted to file general Section 4 rate change filings to

recover fully new facility costs, stranded investment costs, and

other costs resulting from Order No. 636, et seq.

(b) Account 858 Costs

MRT's cost of service in Docket No. RP93-4 includes the cost

of transportation of gas by upstream pipelines, i.e., Account No.

858 costs. MRT is offering and will assign capacity on such

upstream pipelines prior to the effectiveness of this provision.

Upstream pipeline contracts will initially be offered to bundled

firm sales Customers, and then to third parties including current

MRT firm transportation Customers. In the event MRT (1) is unable

to assign its upstream pipeline capacity to others, (2) continues

to incur Account No. 858 costs subsequent to service

restructuring, and/or (3) incurs transition costs charged by such

upstream pipelines ("Account No. 858 transition costs"), MRT shall

be permitted to file limited Section 4 rate change applications