K O Transmission Company

Original Volume No. 1

Effective Date: 04/01/2009, Docket: RP09-394-001, Status: Effective

Substitute First Revised Sheet No. 130 Substitute First Revised Sheet No. 130

Superseding: Original Sheet No. 130

GENERAL TERMS AND CONDITIONS (continued)

23. FERC Annual charge Adjustment (ACA) Unit Charge

23.1 Purpose

The Omnibus Budget Reconciliation Act of 1986 (Act), by its Section

3401(a)(1), requires the FERC to assess and collect fees and annual charges in

any fiscal year (October 1 through September 30) in amounts equal to all of

the costs incurred by the FERC in that fiscal year. Transporter will be

required to remit to the FERC Transporter's share of any FERC undercollections

as calculated on Transporter's Annual Charges Bill for the previous fiscal

year. For the purpose of recovering this payment, this Section establishes a

FERC ACA Unit Charge (pursuant to FERC authority) to be applicable to all

jurisdictional transportation quantities transported. By electing the FERC

ACA Unit Charge method of recovery, Transporter hereby acknowledges its intent

not to recover any annual charges recorded in FERC Account No. 928 in a NGA

Section 4 rate case.

23.2 Basis of the FERC ACA Unit Charge

Transporter's ACA rate shall be the increment specified by the Commission for

such charge for that fiscal year (October 1 through September 30). The ACA

unit charge shall be reflected on Sheet No. 10 of this Tariff.

23.3 Filing Procedure

Pursuant to Section 154.207 of the FERC's Regulations, Transporter shall

file, at least thirty (30) days prior to the effective date of an ACA filing,

and post, pursuant to Section 154.2(d) of the FERC's Regulations, the

necessary tariff sheets to reflect the FERC approved ACA Unit Charge, unless,

for good cause shown, a lesser notice period and different effective date is

allowed by valid FERC order.