Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 183 Original Sheet No. 183 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(e) To the extent that any penalty directly results from

Shipper's reliance on inaccurate data from Transporter, or is otherwise

caused by Transporter, no penalty will be assessed that is attributable to

such inaccurate data.

19.6 Penalty Crediting Mechanism.

(a) The purpose of this provision is to provide the mechanism

(except the mechanism currently existing at Section 16.5(e) of the General

Terms and Conditions) and by which Transporter shall credit any "Penalty

Revenues," as defined herein, to "Non-Penalized Shippers."

(b) For purposes of this Section 19.6 the following definitions

shall apply:

(i) The term "Penalty Revenues" shall mean penalty

amounts assessed and actually collected, net of Transporter's costs,

during each month of a contract year (November 1 to October 31)

pursuant to the penalty provisions of this Tariff; exclusive of (a)

Transporter's actual gas, transportation and retainage costs for the

replenishment of gas quantities with respect to Section 9.8(b) of the

General Terms and Conditions; and (b) overrun transportation revenue

imposed pursuant to the terms of any of Transporter's Rate Schedules.

(ii) The term "Non-Penalized Shippers" shall mean

Shippers, other than Shippers that were assessed penalties during any

month of a contract year (November 1 to October 31) pursuant to the

penalty provision of this Tariff, under Transporter's FTS and ITS Rate

Schedules.