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. 351 Original Sheet No. 351 : Effective

 

Service Agreement No. __________

Control No. ____________________

 

SERVICE AGREEMENT

(Continued)

 

Section 3. Rates. Shipper shall pay Transporter the charges and furnish

Retainage as described in the above-referenced Rate Schedule, unless

otherwise agreed to by the parties in writing and specified as an amendment

to this Agreement. Transporter may agree to discount its rate to Shipper

below Transporter's maximum rate, but not less than Transporter's minimum

rate. Such discounted rate may apply to: a) specified quantities

(contract demand or commodity quantities); b) specified quantities above or

below a certain level or all quantities if quantities exceed a certain

level; c) quantities during specified time periods; d) quantities at

specified points, locations, or other defined geographical areas; and e)

that a specified discounted rate will apply in a specified relationship to

the quantities actually transported (i.e., that the reservation charge will

be adjusted in a specified relationship to quantities actually

transported). In addition, the discount agreement may include a provision

that if one rate component which was at or below the applicable maximum

rate at the time the discount agreement was executed subsequently exceeds

the applicable maximum rate due to a change in Transporter's maximum rate

so that such rate component must be adjusted downward to equal the new

applicable maximum rate, then other rate components may be adjusted upward

to achieve the agreed overall rate, so long as none of the resulting rate

components exceed the maximum rate applicable to that rate component. Such

changes to rate components shall be applied prospectively, commencing with

the date a Commission order accepts revised tariff sheets. However,

nothing contained herein shall be construed to alter a refund obligation

under applicable law for any period during which rates, which had been

charged under a discount agreement, exceeded rates which ultimately are

found to be just and reasonable.

 

Section 4. Changes in Rates and Terms. Transporter shall have the

unilateral right to file with the Commission or other appropriate

regulatory authority and make changes effective in (a) the rates and

charges applicable to Rate Schedules FTS and ITS, (b) the terms or

conditions of Rate Schedules FTS and ITS, or (c) any provisions of the

General Terms and Conditions of Service applicable to Rate Schedules FTS

and ITS. Transporter agrees that Shipper may protest or contest the

aforementioned filings, or seek any authorization from duly constituted

regulatory authorities for such adjustment of Transporter's existing Tariff

as may be found necessary to assure that the provisions referred to in (a),

(b) or (c) of this Section 4 are just and reasonable.