Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

Effective Date: 07/22/2005, Docket: RP05-388-000, Status: Effective

Second Revised Sheet No. 226C Second Revised Sheet No. 226C : Effective

Superseding: First Revised Sheet No. 226C

GENERAL TERMS AND CONDITIONS

(Continued)

19. MRT'S RIGHT TO CHANGE RATES AND TERMS OF SERVICE (Continued)

Absent prior Commission approval, no Negotiated Rate agreement shall

include terms that deviate in any material respect from those set forth in the

Transportation Service Agreement Form included in this tariff. Each

Negotiated Rate agreement shall be filed with the Commission or reflected on a

tariff sheet to be filed no later than the date of commencement of service.

Any tariff sheet filed with the Commission shall state the exact legal name of

the Customer, the applicable Rate Schedule, the receipt and delivery point(s),

the contract quantities, and, as applicable, the Negotiated Rate or the

Negotiated Rate formula. The tariff sheet also shall contain a statement that

the Negotiated Rate agreement does not deviate in any material aspect from the

Transportation Service Agreement Form included in this tariff.

MRT shall record separately the billing determinants, volumes

transported, rates, surcharges and all revenues associated with MRT's

Negotiated Rate transactions so that this data can be separately identified on

an as needed basis. Additionally, MRT will separately identify as stated

above, any and all transactions that originate as Part 284 discounted

transactions and subsequently become Negotiated Rate transactions.

MRT's provision of service at Negotiated Rates shall not in any way

restrict MRT's ability to seek a discount-type adjustment in the design of its

rates in a future general rate proceeding, to the maximum extent permissible

under Commission policy, for Negotiated Rate agreements that were converted

from pre-existing agreements under which the rates charged to the customer

were discounted from the applicable maximum tariff rates. This ability of MRT

to seek a future discount-type adjustment shall apply only to discounted

transportation rate agreements under Part 284 of the Commission's regulations

where, upon renegotiation of the applicable rate, the new agreement becomes an

agreement for transportation service at Negotiated Rates under the definition

set forth in Section 19.2 of this tariff. In the event MRT seeks to include

negotiated rate agreements in MRT's rate discount adjustment in a future rate

proceeding, the discount adjustment shall be based on the greater of (a) the

Negotiated Rate revenues received or (b) the discounted Recourse Rate revenues

which otherwise would have been received. MRT shall have the burden of

showing the appropriateness of such discount adjustments.