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. 95 Original Sheet No. 95 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(b) Rate Schedule ITS And Overrun Quantities Under Rate Schedule FTS.

Transporter shall allocate capacity in the manner set forth at Section

7.2(b) above.

7.4 Allocations Based on Value. For purposes of allocating capacity

pursuant to Sections 7.2 and 7.3, Shippers paying more than the Recourse

Rate will be considered to be paying the Recourse Rate.

7.5 Posting Procedures for Capacity Allocation. Except for force majeure

events and/or events or conditions which threaten the integrity of

Transporter's system or Transporter's ability to meet its firm service

obligations, Transporter will notify Shippers at least 24 hours in advance

on its Internet EBB. In addition to the general restrictions described

below, more specific restrictions may be imposed when necessary in

accordance with the provisions of this Tariff.

(1) No Capacity Restrictions. Transporter, based on forecasted

system conditions and utilization, has determined there is adequate

system capacity to make all nominated deliveries.

(2) Capacity Restrictions. Transporter, based on forecasted

system conditions and utilization, has determined there is a limited

amount of Non-Firm Capacity available for deliveries. Transporter will

post on its EBB the Non-Firm Capacity available. Seller will allocate

capacity as described in Section 7 above.

(3) Zero Non-Firm Capacity. Transporter, based on forecasted

system conditions and utilization, has determined there is zero Non-

Firm Capacity available for deliveries and will post this on its EBB.

Provisions of Section 19.7 (Critical Day) of the General Terms and

Conditions apply.