Central Kentucky Transmission Company

Original Volume No. 1

Effective Date: 05/01/2006, Docket: CP05- 48-002, Status: Effective

Original Sheet No. 24 Original Sheet No. 24 : Effective

IPP RATE SCHEDULE

INTERRUPTIBLE PAPER POOLS (Continued)

5. RATE

No rate will be charged for service under this Rate Schedule.

Transporter reserves the right to file pursuant to Section 4 of the Natural

Gas Act to implement charges to recover any and all costs of providing

service under this Rate Schedule. Before Transporter implements such a

charge, Shipper shall have the right to cancel its IPP Service Agreement(s)

that are subject to that charge.

6. PENALTIES

(a) If Shipper fails to interrupt service as directed by Transporter

pursuant to Section 16 (Interruptions of Service) of the General Terms and

Conditions and takes gas from or tenders gas to Transporter in excess of 103

percent of the lowered Scheduled Daily Receipt or Delivery Quantity (Lowered

Quantity) set by Transporter's interruption order, Shipper shall be assessed

and pay penalties of $5.00 per Dth on the first three percent of quantities

taken or tendered in excess of its Lowered Quantity, and $10.00 per Dth for

quantities taken or tendered in excess of 103 percent of its Lowered

Quantity.

(b) If Shipper fails to comply with an operational flow order issued

by Transporter pursuant to Section 17 (Operational Flow Orders) of the

General Terms and Conditions, a penalty of $5.00 per Dth per day shall be

assessed to Shippers for all quantities in violation of that operational flow

order.

7. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions are applicable to this Rate

Schedule and are hereby made a part hereof, with the exception of Sections 4,

14, 19, 31, and 32.