Central Kentucky Transmission Company

Original Volume No. 1

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Effective Date: 05/09/2010, Docket: RP10-589-000, Status: Effective

First Revised Sheet No. 103 First Revised Sheet No. 103

Superseding: Original Sheet No. 103

GENERAL TERMS AND CONDITIONS

(Continued)

(c) Transporter may negotiate and enter into OBAs with interstate

pipelines, intrastate pipelines and other entities. No Difference balanced

in-kind shall be allocated to any Shipper at the receipt point covered by the

OBA. If an interstate pipeline charges Transporter for Differences in the

OBA, however characterized, Transporter shall charge such interstate pipeline

an equivalent and offsetting charge. If Transporter is unable to charge or

collect such equivalent and offsetting charges for such Differences,

Transporter, on an as-billed basis, shall allocate and bill such charges to

Shippers responsible for the imbalance at the point of interconnection at

which the Difference giving rise to the charges occurred.

(d) Where an OBA exists between interconnecting parties at the

receipt point, a PDA is not necessary.

(e) Changes to a PDA may be made prospectively during the Month.

Only one PDA may be submitted per allocation period. Transporter may in its

reasonable discretion make retroactive reallocations of transactions to

correct for errors. Otherwise, no retroactive reallocations of any

transactions shall be permitted without the approval of Transporter and the

agreement of those Shippers with Service Agreements affected by such

retroactive reallocations, provided that the agreement by such affected

Shippers shall not be unreasonably withheld.

(f) PDAs shall remain in effect until a replacement PDA is

received from the interconnecting operator or upstream title holder;

provided, however, if necessary, PDAs shall be updated at the beginning of

each Month. A new allocation detail may be needed when a nomination changes.

(g) If the PDA is provided using EDI, Transporter shall respond

with an EDI confirmation indicating receipt of the PDA within 15 minutes, and

whether there are any errors associated with the PDA.