Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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

Original Sheet No. 204 Original Sheet No. 204 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

agreement times the Reservation Charge of the

upstream pipeline in effect on November 1, 1993.

Customers must accept assignment for the entire

service agreement term.

(2) Offsets for the Trunkline service

agreements shall be based on the proportionate

share of contract demand selected to the overall

level of each Trunkline service agreement

applied to the Revenue Obligation for such

service agreement.

(ii) If all or portions of MRT's upstream pipeline

service agreements are not assigned to current bundled firm

sales service Customers, MRT will offer assignment to third

parties and provide offsets using the same methodology set

forth in Section 16.4(c). For each service agreement then

unassigned, MRT will negotiate a buyout agreement with the

upstream pipeline as soon as practicable. The cost of

retaining such service agreement until a buyout can be

negotiated, and the buyout cost for each unassigned service

agreement, shall become the Account No. 858 transition cost

recoverable pursuant to Section 16.4(c)(iii).

(iii) This paragraph establishes an Account No. 858

Stranded Cost Tracking Mechanism for costs incurred from

unassigned upstream pipeline service agreements during the

period subsequent to the effective date of this tariff and

until a buyout can be negotiated with such upstream

pipeline, and any buyout cost related thereto. For each

unassigned upstream pipeline service agreement, the tracking

mechanism shall exclude prior period cost adjustments

applicable to services received by MRT prior to the

effective date of this tariff (such costs to be recovered

pursuant to Section 16.2), but shall include upstream

pipeline transition costs, if any, billed to MRT.