Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 43-006, Status: Effective

Original Sheet No. 203 Original Sheet No. 203 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

cost for each pipeline. Such cost shall reflect the

contract demand of each upstream pipeline service

agreement, the remaining contract term, and the

pipeline's proposed restructured tariff reservation

charge or revenue obligation of MRT to the pipeline.

Each Customer's allocated share of potential Account

No. 858 Transition Costs shall provide the base to

which offsets are applied, and if Account No. 858

transition costs remain after offsets, to determine

whether such Customer is subject to further Account

No. 858 transition costs. Any Customer which accepts

its full pro rata share of each upstream pipeline

contract will be deemed to have satisfied in full its

obligation to pay any transition costs attributable to

MRT's upstream pipeline service agreements, other than

costs arising pursuant to Section 16.2 of these

General Terms and Conditions (i.e. deferred Account

No. 858 costs incurred prior to restructuring) and

certain other Account No. 858 costs incurred

subsequent to assignment as set forth in Section

16.4(v) below. If service agreement assignments and

related offsets are less than each Customer's

allocated potential Account No. 858 Transition Costs,

Account No. 858 costs incurred subsequent to the

effective date of this tariff shall be billed in

accordance with the Account No. 858 Stranded Cost

Tracking Mechanism described in Section 16.4(iii)

hereinbelow.

(C) Each Customer's amount of assignment offset

will be based on the following factors:

(1) Offsets for AER and NGPL service

agreements shall be computed by multiplying the

level of contract demand selected times the

remaining term of the upstream pipeline service