K O Transmission Company

Original Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-394-000, Status: Effective

Second Revised Sheet No. 43 Second Revised Sheet No. 43

Superseding: First Revised Sheet No. 43

GENERAL TERMS AND CONDITIONS (continued)

3. Auctions of Available Firm Service (con’t)

received, and no new long-term agreement has been reached between Transporter

and the Shipper holding the capacity under the expiring Service Agreement,

Transporter shall post such capacity for an indefinite period as Generally

Available Capacity. Transporter shall post minimum price and other terms for

such Generally Available Capacity, as described below. Transporter may change

those minimum price and other terms, or may withdraw the posting of such

Generally Available Capacity, at any time prior to receipt of a bid satisfying

the posted minimum terms of that capacity. Any such minimum price and other

terms shall be subject to the same limitations applicable to other available

capacity, as set forth in this Section.

Transporter will accept maximum rate bids for posted Generally Available

Capacity on a first-come, first-served basis, subject to the right of an

existing holder with a right of first refusal to exercise its right to match

that offer. If Transporter receives an acceptable bid for such Generally

Available Capacity that meets its stated minimum conditions but is at less than

the maximum rate, Transporter will post that bid on its website for a period of

five (5) business days. During that five-day period:

(i) an existing holder of the capacity that has retained a right

of first refusal may retain the capacity by matching all of

the terms of the highest value bid; or

(ii) any other competing bidder may obtain the capacity by

submitting a highest value bid (that exceeds the value of

the initial posted bid), as determined in accordance with

the bid evaluation criteria as set forth below.

(d)

Termination of Other Long-Term Service Agreements. If a long-term Service

Agreement is not continued by its own terms or by reason of the Shipper's

exercise of its right of first refusal, such long-term Service Agreement shall

be subject to pregranted abandonment unless otherwise specified in the Service

Agreement and shall terminate as specified therein and Transporter shall have no

further obligation to Shipper.

3.2 Auctions of Capacity that Becomes Available

As capacity becomes available on Transporter's system for firm services, such

capacity shall be made available for bidding provided that it is not previously