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. 52 Original Sheet No. 52 : Effective





(2) advance payment for service at the time service is



(3) an irrevocable letter of credit from a creditworthy

financial institution;


(4) a guarantee from a creditworthy entity; or


(5) a surety bond from an acceptable, creditworthy insurance



(c) Transporter may at any time re-evaluate the creditworthiness of

Shipper and demand adequate assurance of payment or additional adequate

assurances of payment if Transporter determines that Shipper has in any

respect become uncreditworthy. Circumstances under which Transporter may

re-evaluate Shipper's creditworthiness include, but are not limited to, a

filing by Shipper for bankruptcy or a submission to bankruptcy or similar

federal or state proceedings, an adverse change in Shipper's payment

practices, a reorganization of Shipper's business structure, an assignment

of Shipper's contracts, or a request by Shipper for increased service. If

Transporter, following such a re-evaluation, makes an adverse preliminary

creditworthiness determination, and Shipper is current in its payments to

Transporter and otherwise has a good credit history with Transporter,

Shipper will be given notice of such adverse determination and be allowed

10 days to submit data demonstrating its continued creditworthiness before

Transporter will make a final determination of creditworthiness and, if

adverse, demand adequate assurance of payment. Transporter may at any time

withdraw or revise its demand for adequate assurance of payment or extend

its due date.


(d) If the Transporter requests additional information to be used

for credit evaluation after the initiation of service, the Transporter

contemporaneous with the request, should provide its reason(s) for

requesting the additional information to the Shipper and designate to whom

the response should be sent. The Transporter and the Shipper may mutually

agree to waive the requirements of this standard.


(e) Upon receipt of either an initial or follow-up request from the

Transporter for information to be used for creditworthiness evaluation, the

Shipper's authorized representative(s) should acknowledge receipt of the

Transporter's request. The Transporter and the Shipper may mutually agree

to waive the requirements of this standard.