Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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

Original Sheet No. 205 Original Sheet No. 205 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

16. TRANSITION COST RECOVERY MECHANISMS (Continued)

(A) The initial tracking filing shall be made

effective November 1, 1993, and subsequent filings

shall be made effective at the beginning of each

calendar quarter thereafter (January 1, April l, July

l, October l) until the unassigned upstream contract

expires or recovery of buyout costs is completed.

(B) The tracking mechanism shall be based on a

unit Account No. 858 Surcharge and will be added to

the Reservation Charge component of Customers

receiving transportation service under Rate Schedules

FTS and SCT. Separate Account No. 858 Surcharges will

be computed for each unassigned upstream pipeline

service agreement.

dividing projected Account No. 858 costs expected to

be incurred in the subsequent quarter by contract

demand billing units under Rate Schedules FTS and SCT

for the quarter, exclusive of contract demands

applicable to transportation service agreements

entered into prior to November 1, 1993 in which (1)

MRT is unable contractually to collect additional

Account No. 858 amounts, or (2) a former bundled firm

sales service Customer or third party shipper has

accepted assignment of its pro rata share of the

upstream pipeline service agreement from which the

Account No. 858 surcharge arises. For purposes of

deriving the Account No. 858 surcharge, contract

demands under Rate Schedule SCT shall be based on a

34% imputed load factor. In the event MRT negotiates

a buyout agreement with the upstream pipeline, such

costs shall be recovered over the annual period

beginning with the calendar quarter following the

buyout.