Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

Effective Date: 12/01/2002, Docket: RP03- 51-000, Status: Effective

Fifth Revised Sheet No. 235 Fifth Revised Sheet No. 235 : Effective

Superseding: Substitute Fourth Revised Sheet No. 235

GENERAL TERMS AND CONDITIONS

(Continued)

22. FUEL USE AND LUFG ADJUSTMENTS (Continued)

22.3 Computation of Current Fuel Use and LUFG Percentages

(a) Fuel Use Percentage: The current Fuel Use Percentage shall

be determined on the basis of (i) the estimated quantities of gas

delivered to MRT for the account of Customers under Rate Schedule FTS,

SCT, ITS, FSS and ISS (excluding any quantities delivered for transactions

utilizing the facilities listed under Section 29.2 of these General Terms

and Conditions) and (ii) the projected quantities of gas that shall be

required for fuel usage (excluding any quantities delivered for

transactions utilizing the facilities listed under Section 29.2 of these

General Terms and Conditions).

(b) LUFG Percentage: The current LUFG Percentage shall be

determined on the basis of (i) the estimated quantities of gas delivered

to MRT for the account of Customers under Rate Schedule FTS, SCT, ITS,

FSS and ISS (excluding any quantities delivered for transactions

utilizing the facilities listed under Section 29.3 of these General Terms

and Conditions) and (ii) the projected quantities of gas that shall be

required for fuel usage and lost or unaccounted for gas (excluding any

quantities delivered for transactions utilizing the facilities listed

under Section 29.3 of these General Terms and Conditions).

22.4 Computation of the Annual Fuel Use and LUFG Surcharges

(a) MRT shall maintain Deferred Fuel Use and LUFG Accounts with

appropriate subaccounts. For each Base Period, the applicable subaccounts

shall include the positive or negative change in Fuel Use and LUFG for

the Base Period and any adjustments to the Deferred Fuel Use and LUFG

Accounts attributable to the immediately preceding Base Period. MRT

shall be prohibited from seeking recovery of Fuel Use and LUFG and any

adjustments related to Fuel Use and LUFG incurred in periods prior to the

immediately preceding Base Period.

(b) A change in Fuel Use for each Base Period shall be the

difference between (i) the amount of Fuel Use quantities received by MRT

during the Base Period and (ii) the actual quantities of gas expended for

fuel usage during the Base Period.

difference between (i) the amount of LUFG quantities received by MRT

during the Base Period and (ii) the actual quantities of lost and

unaccounted for gas during the Base Period (excluding lost and

unaccounted for gas associated with transactions utilizing the facilities

listed under Section 29.3 of these General Terms and Conditions).