Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 83 Original Sheet No. 83 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(d) Where discrepancies in quantities exist between confirming

parties, the confirmed quantity shall be determined as follows:

(1) With respect to the Timely Nomination Cycle, in the absence

of agreement to the contrary, the lesser of the confirmation quantities

should be the confirmed quantity. If there is no response to a Request

for Confirmation or an unsolicited Confirmation Response, the lesser of

the confirmation quantity or the previously scheduled quantity should

be the new confirmed quantity.

(2) With respect to increases during the Evening Nomination

Cycle, Intraday 1 Nomination Cycle and Intraday 2 Nomination Cycle, in

the absence of agreement to the contrary, the lesser of the

confirmation quantities should be the new confirmed quantity. If there

is no response to a Request for Confirmation or an unsolicited

Confirmation Response, the lesser of the confirmation quantity or the

previously scheduled quantity should be the new confirmed quantity.

(3) With respect to decreases during the Evening Nomination

Cycle, Intraday 1 Nomination Cycle and Intraday 2 Nomination Cycle, in

the absence of agreement to the contrary, the lesser of the

confirmation quantities should be the new confirmed quantity, but in

any event no less than the Elapsed-prorated-scheduled quantity. If

there is no response to a Request for Confirmation or an unsolicited

Confirmation Response, the greater of the confirmation quantity or the

Elapsed-prorated-scheduled quantity should be the new confirmed

quantity.

(4) If there is no response to a request for confirmation or an

unsolicited Confirmation Response, Transporter shall provide Shipper

with the Scheduled Quantities the following information to explain why

the nomination failed, as applicable:

(i) Transporter did not conduct the confirmation;

(ii) Upstream Confirming Party did not conduct the

confirmation;