Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 275 Original Sheet No. 275 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

37. APPLICABLE LAWS, REGULATIONS AND WAIVERS

37.1 Duly Constituted Authorities, Laws, and Regulations. These General

Terms and Conditions and the Rate Schedules and Service Agreements to which

these apply shall be subject to all valid laws of the United States and of

the State of West Virginia provided, that in the event of any dispute

arising from any Service Agreement hereunder, Section 5.6 of the General

Terms and Conditions shall control, and the orders, rules and regulations

of duly constituted authorities having jurisdiction. Service Agreements

subject to the provisions of these General Terms and Conditions are

voidable by Transporter, in whole or in part, in the event that the orders,

rules, or regulations in effect on the date of execution of the Service

Agreement are stayed, overturned, or revised in a way that is

unsatisfactory to Transporter.

37.2 Suits and Proceedings. As to all matters within its actual or

imputed control, Shipper represents and warrants that service hereunder and

all arrangements incident thereto conform to applicable laws, orders,

rules, regulations and tariffs. Shipper agrees to indemnify and hold

Transporter harmless against any and all actions, suits or proceedings,

concerning such service or arrangements, which are brought or instituted by

any party or authority having jurisdiction, except that Shipper shall not

indemnify or hold Transporter harmless for Transporter's own gross

negligence or willful misconduct.

37.3 Waiver of Default. No waiver by Shipper or Transporter of any one or

more defaults by the other in performance of the provisions of these

General Terms and Conditions and the Rate Schedules and Service Agreements

to which these apply shall be construed as a waiver of any future default

or defaults, whether of a like or a different character.