Central Kentucky Transmission Company

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 190 Original Sheet No. 190 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

20. DISCOUNT POLICY

20.1 In General. Transporter may at any time in its sole discretion

selectively discount the rate(s) applicable to any individual Shipper under

the Rate Schedules set forth in 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 this Tariff. If Transporter discounts

any rate to any Shipper, Transporter shall file with the Commission any

required reports respecting such discounted rates. Transporter and Shipper

shall enter into a written agreement describing the terms of any such

discounting of Shipper's rate(s).

20.2 Allocation or Interruption. To the extent that Transporter

allocates or interrupts service rights based upon price, as set forth in

Section 7 (Capacity Allocation) and Section 16 (Interruptions of Service)

of the General Terms and Conditions, the price utilized by Transporter for

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

shall be Shipper's discounted rate for the service.

20.3 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.

20.4 Apportionment of Discounts. For each transaction discounted

pursuant to this provision, the amount of the discount (the difference

between the maximum rate otherwise applicable to the transaction and the

total rate billed) shall be apportioned among the components of the rate in

the following order: (1) The General R&D Funding Unit (GRI Surcharge);

(2)the Base Tariff Rate; and (3) any surcharges that may become applicable.