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. 266 Original Sheet No. 266 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

35.7 Assessing Negotiated Rate Bids for Available Firm Capacity. For

purposes of assessing bids for available firm capacity pursuant to General

Terms and Conditions Section 4, the net Present Value of Negotiated Rate

bids containing a reservation rate or other form of revenue guarantee which

exceeds the applicable Recourse Rate during all or any portion of the term

contained in the bid, shall not exceed the net Present Value that is

calculated assuming that the applicable Recourse Rate is in effect during

the full term contained in the bid, in place of the reservation rate or

other revenue guarantee contained in the bid.

 

35.8 Rate Treatment. Transporter shall have the right to seek in future

general rate proceedings discount-type adjustments in the design of its

rates related to Negotiated Rate agreements that were converted from pre-

existing discount agreements to Negotiated Rate agreements, provided that

the type of pre-existing service is not altered as a result of the

conversion to a Negotiated Rate. In those situations, Transporter may seek

a discount-type adjustment based upon the greater of: (a) the Negotiated

Rate revenues received or (b) the discounted rate revenues which otherwise

would have been received.

 

35.9 Negotiated Rate Surcharge and Retainage Components. If Transporter

negotiates surcharge or Retainage percentage rate components at lower than

the maximum rate level for those components as part of a Negotiated Rate

arrangement, it will assume any under-recovery of costs or Retainage from

negotiated shippers in order to ensure that its recourse Shippers are not

better or worse off due to Negotiated Rate arrangements with individual

Shippers. To accomplish this, Transporter will credit full recourse rate

surcharge and Retainage amounts to the appropriate surcharge and Retainage

accounts.