K O Transmission Company

Original Volume No. 1

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

First Revised Sheet No. 128 First Revised Sheet No. 128 : Effective

Superseding: Original Sheet No. 128

GENERAL TERMS AND CONDITIONS (continued)

21. Discounting

21.1 In General

Transporter may at any time in its reasonable discretion selectively discount the

rate(s) applicable to any individual Shipper under the Rate Schedules

set forth in Original Volume No. 1 of this Tariff; provided, however, that such

discounted rate(s) shall not be less than the Minimum Rate(s) for the applicable

service as set forth in the currently-effective rate sheets of this Tariff. If

Transporter discounts any rate to any Shipper, Transporter shall file

with the Commission any required reports respecting such adjusted rate.

Transporter and Shipper shall enter into a written agreement

describing the term of any such discounting of Transporter's rate(s).

21.2 Allocation or Interruption

To the extent that Transporter allocates or interrupts service rights based upon

price, as set forth in Section 12 (Nominating, Scheduling and Monitoring) and

Section 17 (Non-Emergency Service Interruption) and Section 18 (Force Majeure

and Curtailment) of the General Terms and Conditions, the price utilized by

Transporter for such purposes, where rates for service has been discounted by

Transporter, shall be Shipper's discounted rate for the service.

21.3 Refunds

If the rates charged Shipper exceed the rates ultimately approved by

the Commission, any required refund shall be made based on the amount by

which the rate actually collected from Shipper exceeds the rate

approved by the Commission.