Central Kentucky Transmission Company

Original Volume No. 1

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

Original Sheet No. 140 Original Sheet No. 140 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(c) Where Releasor has posted a prepackaged arrangement at less

than the maximum rate (including prepackaged arrangements for 31 days or

less for which the Releasor requests competitive bidding), the designated

Replacement Shipper under that arrangement will be awarded the capacity if,

within the time limits specified in Section 14.3(h) immediately above, that

designated Replacement Shipper matches the competing bid(s) offering the

highest economic value, as calculated in accordance with the bid evaluation

criteria set forth in Section 14.1(c) or in the Release Notice.

(d) Where highest bids of equal value are received for released

capacity from more than one bidder, not including a designated Replacement

Shipper under a prepackaged arrangement, the capacity (i) shall be assigned

in accordance with any nondiscriminatory method for breaking ties

established by Releasor in the Release Notice, or (ii) shall, if Releasor

does not establish a tie-breaking method, be assigned pro rata on the basis

of the respective quantities bid by the winning bidders. Bidders may

specify in their bids the minimum quantities they will accept. If a pro

rata allocation would result in assignment of quantities below a bidder's

minimum quantity, any such bidder will not be assigned the capacity, and

the total quantity available for assignment will then be re-allocated among

the remaining highest value bidders on a pro rata basis.

(e) Transporter should not award capacity release offers to the

Shipper until and unless the Shipper meets Transporter's creditworthiness

requirements applicable to all services that it receives from Transporter,

including the service represented by the capacity release.

(f) Transporter shall post on the EBB the winning bid and the

identity of the winning bidder(s) in accordance with the Capacity Release

timeline under Section 14(c) above.

14.5 Assignment Agreements.

(a) For all transactions pursuant to this Section 14, Transporter

shall electronically transmit an Assignment Agreement upon receipt of

Replacement Shipper's electronic confirmation reflecting the terms of the

Release Notice to Replacement Shipper in accordance with the Capacity

Release timeline under Section 14(c) above.