Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 60 Original Sheet No. 60 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(6) If no acceptable offers satisfying Transporter's stated

minimum terms are received, and no new long-term Service Agreement has been

reached between Transporter and the Shipper holding the capacity under the

expiring Service Agreement, Transporter shall post such capacity for an

indefinite period as Generally Available Capacity. Transporter will post

minimum price and other terms for such Generally Available Capacity, as

described at Section 4.2 below. Transporter may change those minimum price

and other terms, or may withdraw the posting of such Generally Available

Capacity, at any time prior to receipt of a bid satisfying the posted

minimum terms for that capacity. Any such minimum price or other terms

shall be subject to the same limitations applicable to other available

capacity, as set forth in this Section 4.

(7) Transporter will accept Recourse Rate bids for posted

Generally Available Capacity on a first-come, first-served basis. If

Transporter receives an acceptable bid for such Generally Available

Capacity that meets its stated minimum conditions but is at less than the

Recourse Rate, Transporter will post that bid on its EBB for the posting

periods set forth in Section 4.2(a) below. Any other competing bidder may

obtain the capacity by submitting during the posting period a highest value

bid (a bid that exceeds the value of the initial posted bid), as determined

in accordance with the bid evaluation criteria set forth at Section 4.2(c)

below.

(d) Termination of Other Long-Term Service Agreements. If a long-

term Service Agreement is not continued by its own terms or by reason of the

Shipper's exercise of its right of first refusal, such long-term Service

Agreement shall be subject to pregranted abandonment unless otherwise

specified in the Service Agreement and shall terminate as specified therein

and Transporter shall have no further obligation to Shipper.