Pine Prairie Energy Center, LLC

Original Volume No. 1

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Effective Date: 09/01/2007, Docket: RP07-563-000, Status: Effective

Original Sheet No. 131 Original Sheet No. 131 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(b) Actions to be Taken to Avoid Issuance: PPEC shall,

to the extent practicable, take all reasonable actions necessary

to avoid issuing an Action Alert or OFO. Such actions shall

include, in order of priority (1) working with point operators to

temporarily adjust receipts and/or deliveries at relevant Point(s)

of Receipt or Point(s) of Delivery, (2) working with Customers and

point operators to adjust scheduled flows on the system, or (3)

taking any other reasonable action designed to mitigate the system

problem. After taking all such reasonable actions to avoid

issuing an Action Alert or OFO, PPEC will have the right to issue

Action Alerts or OFOs, if necessary, in the circumstances

described in Section 5.5(a).

(c) Preliminary Notifications/Follow-up Reports: PPEC

shall provide, via posting on the Internet Web Site and to

affected parties through the affected party's choice of electronic

notice delivery mechanism(s), prior notice to all Customers and

point operators of upcoming system events such as anticipated

weather patterns and operational problems that may necessitate the

issuance of an Action Alert or OFO.

(d) Applicability of Action Alert or OFO: PPEC shall

make an Action Alert or OFO as localized as is reasonably

practicable based on PPEC's good faith and reasonable judgment

concerning the situations requiring remediation such that an

Action Alert or OFO will be directed first to Customers and point

operators causing the problem necessitating the Action Alert or

OFO and second, if necessary, to all Customers and point

operators. PPEC will tailor the Action Alert or OFO to match the

severity of the known or anticipated operational problem requiring

remediation as more fully set forth in subsections 5.5(f) and

5.5(g). The declaration to the affected parties of OFOs, critical

periods and/or Critical Notices shall describe the conditions and

the specific responses required from the affected parties.

(e) Notice: All Action Alerts and OFOs will be issued

via telephone to be followed by a facsimile to the affected

Customer(s) or point operator(s), with subsequent posting on the

Internet Web Site, and notification to the affected parties

through the affected party's choice of electronic notice delivery

mechanism(s). PPEC shall also provide such notification via e-

mail communication to those Customers and point operators that

have provided e-mail address information for at least one contact

person, and have requested via PPEC's Internet Web Site, e-mail

notification of Critical Notices issued by PPEC. The Action Alert

or OFO will set forth (1) the time and date of issuance, (2) the

actions Customer or point operator is required to take, (3) the

time by which Customer or point operator must be in compliance

with the Action Alert or OFO, (4) the anticipated duration of the

Action Alert or OFO, and (5) any other terms that PPEC may

reasonably require to ensure the effectiveness of the Action Alert

or OFO. In addition to the other information contemplated by this

Section