K O Transmission Company

Original Volume No. 1

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

Fourth Revised Sheet No. 54 Fourth Revised Sheet No. 54

Superseding: Third Revised Sheet No. 54

 

GENERAL TERMS AND CONDITIONS (continued)

 

4. Release and Assignment of Service Rights (continued)

 

(c)

 

Bids shall be submitted by potential Replacement Shippers without bidders

knowing the identities of other bidders. Bidders may submit multiple bids, each

higher than the previous bid on the days on which the capacity is posted.

 

(d)

 

All bidders must (i) have prequalified under Transporter's creditworthiness

standards, and (ii) appear on Transporter's Approved Bidders List.

 

(e)

 

All bids for capacity release transactions of more than one (1) year in length

shall neither exceed the maximum nor be less than the minimum permitted by the

Commission for the released services. Bids for capacity release transactions of

one (1) year or less may exceed the maximum rates but shall not be less than the

minimum rates permitted by the Commission for released services. Bids are

binding, other than contingent bids, until written notice of withdrawal is

received by Transporter. Bids may be withdrawn before the close of the bidding

period. Any bidder that withdraws its bid for release capacity may not, within

that same bidding period, submit a bid at a lower rate for any portion of that

same capacity. Transporter shall communicate an award made pursuant to a

contingency bid by 3:00 p.m. (central clock time) and the contingent bidder must

respond by 4:00 p.m. (central clock time).

 

(f)

 

Where higher bids are received for capacity that Releasing Shipper proposes to

release under a prepackaged arrangement that is subject to competitive bidding

because the prearranged price is lower than the maximum rate, (including

prepackaged arrangements for 31 days or less for which Releasing Shipper

requests competitive bidding), the Replacement Shipper designated by Releasing

Shipper (designated Replacement Shipper) shall be notified by Transporter by

3:00 p.m. (central clock time) on the day bidding closes of higher competing

bids and shall have one hour to exercise its right to match the highest

competing bid. For prepackaged arrangements one (1) year or less in length, a

designated Replacement Shipper desiring to exercise the right to match, shall be

required to match the highest competing bid, including bids that may be

submitted in excess of the maximum rate. A Releasing Shipper shall not be able

to specify an extension of the original pre-arranged match period without

posting a new release.