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<br />. CenlerPoinL <br />Energy <br /> <br />March 20, 2008 <br /> <br />Mayor and City Officials <br />City of La Porte <br />La Porte, Texas <br /> <br />RE: Pending Statement of Intent to Change Rates <br /> <br />Ladies and Gentlemen: <br /> <br />I am writing to confirm to you that if the City of La Porte approves the rates proposed by <br />CenterPoint Energy in its Statement of Intent to Increase Rates filed with the city on March 6, <br />2008, and if the Railroad Commission of Texas shall subsequently establish a lower level of <br />division-wide base rates with respect to this filing for customers in CenterPoint Energy's Texas <br />Coast Division, or if CenterPoint Energy shall otherwise agree to implement a lower level of <br />base rates with respect to this filing in another city or cities in the Texas Coast Division, <br />CenterPoint Energy shall file such lower level of base rates with the City of La Porte <br />immediately on the issuance of the final, non-appealable order of the Railroad Commission <br />establishing such lower base rates or the filing by CenterPoint Energy of tariffs in another Texas <br />Coast city implementing such lower base rates. <br /> <br />By approving the proposed rates, the City of La Porte and its citizens will avoid <br />potentially substantial litigation expenses associated with proceedings undertaken by other <br />municipalities or coalitions of municipalities or the Railroad Commission of Texas. <br /> <br />If you have any questions, please contact Doug Ward at 281-342-8881. <br /> <br /> <br />r ruly yours, <br /> <br />C3~' <br /> <br />Richard A. Zapalac <br />Regional Vice President-Texas <br /> <br />cc: George Hepburn <br />Keith Wall <br />Doug Ward <br />