K O Transmission Company

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-339-000, Status: Effective

First Revised Sheet No. 017 First Revised Sheet No. 017 : Effective

Superseding: Original Sheet No. 017

RATE SCHEDULE FTS

Firm Transportation Service (con't.)

(1) Reservation Charge The maximum Reservation Charge for each Month,

assessed on each Dth of Transportation Demand

specified in Shipper's FTS Service Agreement.

(2) Overrun Charge The applicable Overrun Charge per Dth of gas actually

delivered on any Day during the Month in excess of

Shipper's Transportation Demand.

(3) Surcharges The surcharges applicable to this Rate Schedule.

(c)

The charges and surcharges described above are subject to adjustment in

accordance with the procedures set forth in the General Terms and Conditions.

(d)

The Reservation Charge shall apply as of the date service is deemed to commence

by the terms of the Shipper's FTS Service Agreement.

(e)

In addition to collecting the applicable charges and surcharges, Transporter shall

retain from the gas tendered for transportation the effective Retainage percentage

set forth in the currently effective Sheet No. 10 of this Tariff. That Retainage

percentage shall be subject to adjustment in accordance with Section 24

(Transportation Retainage Adjustment) of the General Terms and Conditions.

4. General Terms and Conditions

All of the General Terms and Conditions of Transporter's FERC Gas Tariff,

Original Volume No. 1, are applicable to this Rate Schedule and are hereby

incorporated as a part of this Rate Schedule.