K O Transmission Company

Original Volume No. 1

Effective Date: 04/01/2009, Docket: RP09-394-000, Status: Effective

First Revised Sheet No. 7 First Revised Sheet No. 7

Superseding: Original Sheet No. 7

PRELIMINARY STATEMENT

KO Transmission Company is a natural gas pipeline company principally engaged in

the business of transporting natural gas in interstate commerce under the

authorization and the jurisdiction of the Federal Energy Regulatory Commission.

The facilities owned by Transporter consist of a natural gas pipeline network

located in the states of Kentucky and Ohio.

KO Transmission Company's ownership consists of:

(a)

a 48.77% interest in the pipeline system referred to herein as the "Kentucky

system" previously fully owned by Columbia Gas Transmission Corporation

("Columbia"). As continuing Owner-Operator, Columbia will be fully responsible

for all operations of the Kentucky system, including maintenance, inspection,

replacement and repairs, and shall procure and furnish all necessary materials,

equipment, services, supplies and labor. The Operating Agreement, signed

between KO Transmission Company and Columbia on March 31, 1994, and subsequently

amended on September 30, 2004 and January 13, 2009 is consistent with the

provisions of this Tariff and provides that Columbia shall monthly bill KO

Transmission Company for a share of all expenses prudently incurred. The

Operating Agreement grants both parties the reciprocal right to use their

undivided ownership interests and provides that the cost of operation shall be

divided in accordance with their respective shares. The shared cost for

operating and maintaining the Kentucky system to be borne by KO Transmission

Company include: (i) Kentucky system Operation and Maintenance ("O&M")

expenses, (ii) an allocable share of Columbia's Kentucky system Administrative

and General ("A&G") expenses and (iii) applicable taxes. Neither party is

permitted to utilize any portion of the undivided interest belonging to the

other party.

(b)

In addition to its purchase of the 48.77% interest in the Kentucky system, KO

Transmission has also acquired from Columbia a 100% interest in a portion of

Line AM-4. This portion will be operated by personnel of Duke Energy Ohio, Inc.,

and/or Duke Energy Kentucky, Inc., who will allocate that portion of expense to

KO Transmission.

The Company's services are provided on a non-discriminatory basis upon

satisfaction of the requirements set forth in the applicable rate schedules,

service agreement and general terms and conditions applicable to such services.

This tariff is filed in compliance with Part 154, Subchapter E, Chapter I, Title

18, of the Code of Federal Regulations.