Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 06/15/2009, Docket: RP09-600-000, Status: Effective

Second Revised Sheet No. 517 Second Revised Sheet No. 517

Superseding: First Revised Sheet No. 517

 

GENERAL TERMS AND CONDITIONS

(continued)

 

3. CREDIT EVALUATION

 

3.1 Standards Used in Appraising Credit. Algonquin's acceptance of a request for new

service or a request resulting in a Billing Amendment under any Rate Schedule set forth

in Algonquin's FERC Gas Tariff is contingent upon Customer satisfying a credit appraisal

by Algonquin. Algonquin shall apply, on a non-discriminatory basis, consistent

financial evaluation standards to determine the acceptability of Customer's overall

financial condition. Algonquin shall not use any criteria, formula, ranking system or

other methodology that would give any preference or advantage to an affiliate of

Algonquin. Such credit appraisal and any further or ongoing credit appraisal as may be

necessary shall be based upon the following information and criteria:

 

(a) Customer shall provide current financial statements, annual reports, 10-K reports

or other filings with regulatory agencies which discuss Customer's financial

status; a list of all corporate affiliates, parent companies and subsidiaries; and

any reports from credit reporting and bond rating agencies which are available.

Algonquin shall determine the acceptability of the Customer's overall financial

condition.

 

(b) Customer shall provide a bank reference and at least two trade references. The

results of reference checks and any credit reports submitted in accordance with

Section 3.1(a) above must show that Customer's obligations are being paid on a

reasonably prompt basis.

 

(c) Customer shall confirm in writing that Customer is not operating under any chapter

of the bankruptcy laws and is not subject to liquidation or debt reduction

procedures under state laws, such as an assignment for the benefit of creditors,

or any informal creditors' committee agreement. An exception can be made for a

Customer who is a debtor in possession operating under Chapter 11 of the Federal

Bankruptcy Act but only with adequate assurance that the service billing will be

paid promptly as a cost of administration under the federal court's jurisdiction.

 

(d) Customer shall confirm in writing that Customer is not aware of any change in

business conditions which would cause a substantial deterioration in its financial

condition, a condition of insolvency, or the inability to exist as an ongoing

business entity.