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<br />. CenterPoint. <br />Energy <br /> <br />March 12, 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 and if the Railroad Commission of Texas shall subsequently establish a <br />lower level of division-wide base rates for customers in CenterPoint Energy's Texas Coast <br />Division, 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. <br /> <br />By approving the proposed rates, the City of La Porte and its cItlzens 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 />(~ly yours, <br />~~<-~~~.- <br /> <br />Richard A. Zapalac <br />Regional Vice President-Texas <br /> <br />cc: George Hepburn <br />Keith Wall <br />Doug Ward <br />