Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 04/01/2003, Docket: RP00-410-006, Status: Effective

Second Substitute Original Sheet No. 253 Second Substitute Original Sheet No. 253 : Effective

Superseding: Substitute Original Sheet No. 253

GENERAL TERMS AND CONDITIONS

(continued)

35. SEGMENTATION OF CAPACITY

35.1 To the extent operationally feasible, a Customer that has

contracted with MRT for firm transportation under Rate Schedule FTS over a

Primary Path may, pursuant to the provisions of this Section 35, segment its

Primary Path for its own use or for the purpose of releasing that capacity to

a Replacement Customer by identifying, through nomination or through the

capacity release process, respectively, points along the Primary Path, subject

to MRT's tariff and the availability of capacity. Such a Customer also may

seek to segment using a Secondary Path which it identifies during the release

or nomination process by notifying MRT of the receipt and delivery points

delineating same. Segment Receipt Point(s) and Segment Delivery Point(s)

shall mean points along a Primary or Secondary Path, as applicable, unless

explicitly provided for otherwise. Unless a segment point is a primary point,

or becomes a primary point in accordance with the provisions of MRT's tariff,

segment points nominated by a Customer for the purpose of segmenting for its

own use are secondary points. Additionally, all points utilized in

conjunction with a Secondary Path will be secondary points, unless any such

segment point becomes, subject to the availability of capacity and in

accordance with the provisions of MRT's tariff, a primary point. A Releasing

Customer may also request during segmentation a new Primary Path (Primary

Receipt Point and Primary Delivery Point) for the Replacement Customer which

is outside Releasing Customer's Primary Path, subject to the availability of

capacity and in accordance with the provisions of MRT's tariff, including, but

not limited to, the terms set forth herein. If an existing Primary Path

Segment is to be released to a Replacement Customer, the Releasing Customer

may request primary points on the unreleased segment within the Primary Path

up to its entitlement on that segment and, for the Replacement Customer,

simultaneously may request primary points on the released segment within the

Primary Path up to its entitlement on that segment, both subject to the

availability of capacity and in accordance with the provisions of MRT's

tariff. A purported segmentation of a Primary Path or the creation/use of a

Secondary Path may not result, through the use of secondary point rights or

otherwise, in an impermissible overlap of capacity or other greater level of

entitlement to line or zone capacity than the entitlement measured by

reference to the Line Priority and Rate Zone Capacity under the original

contract prior to segmentation. Subject to MRT's agreement otherwise,

discounts under any contract are specific to the circumstances involved. No

discount rate applicable to those circumstances or to the original Primary

Receipt and Delivery Points shall apply to the use of secondary points or

Segment Receipt and Delivery Points, whether held by a Releasing or

Replacement Customer, unless MRT agrees otherwise. If a Customer, subject to

the availability of capacity and in accordance with the provisions of MRT's

tariff, changes a primary point, MRT shall not be obligated to reserve firm

capacity to reinstate the former primary point upon expiration of the

segmentation or the capacity release.