K O Transmission Company

Original Volume No. 1

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

Third Revised Sheet No. 55 Third Revised Sheet No. 55

Superseding: Second Revised Sheet No. 55

GENERAL TERMS AND CONDITIONS (continued)

4. Release and Assignment of Service Rights (continued)

4.4 Evaluation of Bids and Assigning Service Rights

(a)

Transporter shall perform the evaluation of bids in accordance with the criteria

specified in the Release Notice and shall determine which, if any, bids to

accept. Such evaluation period begins upon the termination of posting as

referenced in Section 4.2(e), whereupon contingency is eliminated, determination

of best bid is made and ties are broken.

(b)

In the absence of any such Releasing Shipper-developed alternative criteria to

the contrary, as specified in Releasing Shipper's Release Notice, bids shall be

evaluated and rights to released capacity assigned by Transporter in accordance

with the bid evaluation criteria referenced at Section 4.1(c).

(c)

Where Releasing Shipper has posted a prepackaged arrangement at less than the

maximum rate (including prepackaged arrangements for 31 days or less for which

the Releasing Shipper requests competitive bidding), or if a prepackaged

arrangement is for one (1) year or less, the designated Replacement Shipper

under that arrangement will be awarded the capacity if, within the time limits

specified in Section 4.3(f), that designated Replacement Shipper matches the

competing bid(s) offering the highest economic value, as calculated, in

accordance with the bid evaluation set forth in Section 4.1(c) or in Releasing

Shipper's Release Notice.

(d)

Where highest bids of equal value are received for released capacity from more

than one bidder, not including a designated Replacement Shipper under a

prepackaged arrangement, the capacity (i) shall be assigned in accordance with

any non- discriminatory method for breaking ties established by Releasing

Shipper in the Release Notice, or (ii) shall, if Releasing Shipper does not

establish a tie-breaking method, be awarded to the highest bidder having first

transmitted the highest bid to Transporter with that transmittal order

determined by the electronic date and time stamping assigned to all fax, e-mail

and internet messages received by Transporter.

(e)

Transporter shall post on the website the winning bid and the identity of the

winning bidder(s). by 5:00 p.m. central clock time on the day the bid closes.

Replacement Shippers may immediately make a nomination upon the Transporter's

award of capacity at 5:00 p.m. central clock time.