Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 63 Original Sheet No. 63 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

Agreement shall be removed from Transporter's Approved Bidders List for six

months, or less than six months if agreed to in writing by the Transporter.

Nothing herein shall restrict Transporter from pursuing any other remedies

it may have against a Shipper failing to execute and return a Service

Agreement tendered by Transporter. If Transporter finds no other bid

acceptable, the capacity shall be posted again and thereby made available

for a new round of bids.

(f) Adjustment to Bid Rate. When the rate bid by a Bidder is at

least for the Maximum Base Reservation Charge, that bid rate shall be

subject to adjustment in accordance with the procedures of this Tariff and

of the Commission, unless otherwise clearly stated in the Service

Agreement. When the rate bid by a Bidder is lower than the Maximum Base

Reservation Charge, that bid rate shall be subject to adjustment in

accordance with the procedures of this Tariff and of the Commission by an

amount proportionate to the increase or decrease in the Maximum Base

Reservation Charge, unless otherwise clearly stated in the Service

Agreement.

(g) Bona Fide Offers. All bids submitted for capacity pursuant to

this Section must be bona fide offers, and must be submitted electronically

through Transporter's EBB or as otherwise set forth in this Tariff. All

Service Agreements entered into as a result of such bids must reflect an

arms length transaction between the bidder and Transporter.

(h) Reserved Capacity. Transporter may elect to reserve for future

expansion projects any unsubscribed capacity or capacity under expiring or

terminating Service Agreements where such agreements do not have a right of

first refusal or shipper does not exercise its right of first refusal

(Available Reservation Capacity). If Transporter elects to reserve

Available Reservation Capacity, it will notify Shippers of its intent as

part of Transporter's posting of the Available Reservation Capacity under

this Section 4.2(h) of the General Terms and Conditions. Available

Reservation Capacity may be reserved for up to one year prior to the

Transporter filing for Natural Gas Act Section 7(c) certificate approval

for construction of the proposed expansion and thereafter until such

expansion is placed into service. Transporter may only reserve Available

Reservation Capacity for a future expansion project