Central Kentucky Transmission Company

Original Volume No. 1

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Effective Date: 02/26/2009, Docket: RP09-285-001, Status: Effective

First Revised Sheet No. 265 First Revised Sheet No. 265

Superseding: Original Sheet No. 265

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

35. NEGOTIATED RATES

 

35.1 Availability. Transporter and Shipper may mutually agree to a

Negotiated Rate for service under any Rate Schedule, provided Shipper has not

acquired its capacity as a temporary capacity release under Section 14

(Release and Assignment of Service Rights) of the General Terms and

Conditions.

 

35.2 Recourse Rate Availability. The Recourse Rate shall be available to

any Shipper that does not wish to mutually agree to a Negotiated Rate.

 

35.3 Limitations. This Section 35 does not authorize the negotiation of

terms and conditions of service.

 

35.4 Allocations/Interruptions Based on Price. Under any circumstances

where the allocation or interruption of capacity is determined by the rate

being paid (including pursuant to Sections 7 (Capacity Allocation) and 16

(Interruptions of Service) of the General Terms and Conditions), Shippers

paying more than the Recourse Rate will be considered to be paying the

Recourse Rate.

 

35.5 Capacity Release. The maximum price cap for the release of capacity

under a Negotiated Rate agreement shall be the Recourse Rate for releases

with a term of more than one (1) year. The maximum price cap shall not apply

to releases under this Section with a term of one (1) year or less.

Transporter and a Releasor under Section 14 (Release and Assignment of

Service Rights) of the General Terms and Conditions may, in connection with

their agreement to a Negotiated Rate, agree upon payment obligations and

crediting mechanisms in the event of a capacity release that vary from or are

in addition to those set forth in General Terms and Conditions Section 14.8.

 

35.6 Right of First Refusal. The right of first refusal provided with

respect to certain Shipper's firm Service Agreements, as described in Section

4 (Auctions of Available Firm Service) of the General Terms and Conditions,

shall not apply to firm Service Agreements with Negotiated Rates.