Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 184 Original Sheet No. 184 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

the amount of Penalty Revenues. Transporter will include interest on the

Penalty Revenues balance at the rate specified in the Commission's

Regulations at Section 154.501(d)(1). For each month of the preceding

contract year, Transporter shall allocate Penalty Revenues for that month

to the Non-Penalized Shippers based on their actual monthly throughput for

that month under the Non-Penalized Shippers' FTS and ITS Service

Agreements. Transporter shall credit the bills of Non-Penalized Shippers

that are the original capacity holders (and not Replacement Shippers under

Section 14 (Release and Assignment of Service Rights) of the General Terms

and Conditions) for such allocated amounts within 60 days of the end of the

contract year. To the extent that there are no Non-Penalized Shippers in a

month in which there are Penalty Revenues, the Penalty Revenues will be

carried forward to the next succeeding month and will be allocated to Non-

Penalized Shippers in that month.

(d) Transporter will file a report within 60 days of the close of

the contract year showing the Penalty Revenues, the costs netted against

the Penalty Revenues, and the resulting Penalty Revenue credits for each

month of the contract year.