Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 61 Original Sheet No. 61 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

4.2 Auctions of Capacity that Becomes Available. As capacity becomes

available on Transporter's system for firm services under the circumstances

set forth in Section 4.1 above or otherwise, such capacity shall be made

available for bidding provided that it is not previously committed and

capacity remains available.

(a) EBB Posting Procedure. Capacity that becomes or will become

available will be posted by Transporter on its EBB for at least the following

periods:

(1) five business days for firm capacity that will be

available for a term of twelve months or longer;

(2) three business days for firm capacity that will be

available for a term of at least five but less than twelve

months; and

(3) one hour ending at 10:00 a.m. (E.T.) for firm capacity

that will be available for a term of less than five months.

Transporter's posting shall include the following information regarding

the available capacity: (i) the daily and other applicable quantity of

service available from the receipt point to the delivery point; (ii) the

Recourse Rate as set forth in this Tariff; (iii) any applicable restrictions;

(iv) whether the capacity is subject to an existing right of first refusal;

(v) any minimum price or other terms applicable to the capacity; and (vi) the

date when bids are due to Transporter. The due date set by Transporter for

bids shall be in accordance with the posting periods set forth above in this

Section 4.2(a).

(b) Bidding Procedure. A potential Shipper may submit multiple

bids, each higher than its preceding bid, for all or any portion of the

capacity or term of service made available by Transporter. Such bids shall

be submitted electronically through Transporter's EBB and shall be displayed

by Transporter on the EBB, without revealing the identity of the bidder,

during the bidding period. Bidder shall specify the monthly reservation

charge (or other firm or demand charge(s), if applicable, herein referred to

collectively as Reservation Charge) it is bidding for the service. Bidder

also shall provide to Transporter a valid request for service fully complying

with Section 3 (Requests for Service) of the General Terms and Conditions.

The price bid for the monthly reservation charge shall be expressed per Dth

and shall be expressed to the nearest thousandth of one dollar ($0.000). The

bid shall not exceed the then-effective Maximum Base Reservation Charge for

the applicable service set forth in this Tariff. In addition to the bid

price, Bidder shall pay all applicable commodity charges, demand and

commodity surcharges and any other applicable charges, as they may be