Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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

First Revised Sheet No. 202 First Revised Sheet No. 202 : Effective

Superseding: Original Sheet No. 202

GENERAL TERMS AND CONDITIONS

(Continued)

 

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

 

and recover such costs pursuant to the procedures set forth in

Section 16.4(c)(iii) hereinbelow.

 

(c) Account No. 858 Transition Cost Offset Mechanism

 

The purpose of the Account No. 858 Transition Cost Offset

Mechanism is to provide Customers an incentive to reduce their

potential Account No. 858 transition cost liability by accepting

assignment of MRT's firm transportation agreements with upstream

pipelines. These provisions will only be utilized if MRT is not

successful in assigning all of its upstream pipeline service

agreements and, in failing to do so, continues to incur Account

No. 858 costs. As described herein below, the amount of offset

each Customer receives by accepting assignment is dependent on

several factors, including the upstream pipeline(s) selected, the

amount of upstream pipeline contract demand (i.e., capacity) taken

for assignment, the length of the upstream pipeline service

agreement's term, and the rates being charged MRT under the

service agreements on the effective date of the assignment.

 

(i) Following are the terms, procedures, and factors

that MRT will utilize in providing offsets.

 

(A) Upstream pipeline transportation service

agreements available for assignment, and which may be

in effect upon the effective date of this tariff, are

as follows: AER #1000613; Trunkline #1821, #1822, and

#3419; NGPL #104849 and #102118. Assignment to former

bundled firm sales service Customers shall be in

proportion to each Customer's sales contract demand

one day prior to service restructuring to MRT's

overall sales contract demand levels.

 

(B) Each former sales Customer's estimated

share of potential Account No. 858 transition costs

shall be based on its pro rata volumetric allocation

set forth in (A) above applied to the Account No. 858