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. 91 Original Sheet No. 91 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

7. CAPACITY ALLOCATION

This Section sets forth the manner in which Transporter shall allocate

capacity among its Rate Schedules when it has received nominations from

Shippers that exceed available capacity.

7.1 General Priority. Transporter shall allocate capacity on its system in

the following order commencing with the highest priority:

(a) capacity at the delivery point;

(b) capacity at the receipt point.

7.2 Transportation Delivery Points. For transportation capacity at the

delivery point under Rate Schedules FTS and ITS of this Tariff, Transporter

shall allocate capacity sequentially among the Rate Schedule priority

groupings and within those Rate Schedule priority groupings, in the manner

set forth below:

(a) Rate Schedule FTS. For deliveries to the delivery point under

the FTS Rate Schedule, upon the occurrence of a force majeure event or the

existence of a condition identified in Section 16 (Interruptions of

Service) of the General Terms and Conditions, Transporter shall allocate

capacity among those Shippers on a pro rata basis, based upon those

Shippers' respective levels of Transportation Demand.