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. 185 Original Sheet No. 185 : Effective

GENERAL TERMS AND CONDITIONS

(Cont'd)

19.7 Critical Day Requirement for Penalties.

A "Critical Day" for transportation will be declared by Transporter

whenever Transporter, in Transporter's reasonable discretion, determines

(based on criteria such as weather forecasts, line pack, pipeline

pressures, horsepower availability, system supply and demand, and other

operational circumstances) that operating conditions are such that

Transporter faces a threat to its system integrity and/or to Transporter's

ability to meet its firm service obligations. With the exception of (1)

failure to interrupt penalties imposed pursuant to Sections 16 and 19 of

the General Terms And Conditions and/or the failure to interrupt provisions

of individual Rate Schedules and (2) OFO penalties imposed pursuant to the

provisions of Sections 17 and 19 of the General Terms And Conditions and/or

the OFO provisions of individual Rate Schedules, Transporter will not

impose penalties under this Section 19 and under any Rate Schedule unless a

Critical Day, as defined above, has been declared and is in effect on

Transporter's system. For penalties ascribed for conduct that occurs over

a monthly as opposed to a daily period of time, these monthly penalties

will be imposed only if Transporter has declared a Critical Day on any day

occurring in that monthly period.

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 (1) the effective dates of

the Critical Day; and (2) the type of penalties that will be applicable

during the Critical Day period. If due to declaration of a Critical Day, a

monthly penalty becomes applicable, Transporter will notify Shippers by

posting on its Internet EBB notice that the monthly penalty is applicable.

Within two weeks of a Critical Day event, Transporter will post information

on its EBB describing the events leading up to the declaration of the

Critical Day.

19.8 No Imposition of Multiple Penalties.

Transporter will not impose on a Shipper both OFO or failure to

interrupt service penalties, and Critical Day penalties for the same

infraction.