Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 11/30/2009, Docket: RP10-77-000, Status: Effective

Second Revised Sheet No. 518A Second Revised Sheet No. 518A

Superseding: First Revised Sheet No. 518A

 

GENERAL TERMS AND CONDITIONS

(continued)

 

3. CREDIT EVALUATION (continued)

 

With respect to a request for new service or a request resulting in a Billing Amendment,

the security required by Algonquin pursuant to this Section 3.2 must be received by

Algonquin within ten (10) Business Days of Algonquin's written notification to Customer,

otherwise, such request will be deemed to be null and void. With respect to an existing

service agreement, Customer must tender (i) an advance payment equal to the highest

Month of activity (based on usage of in-kind and loan agreements and the billed amounts,

including cashout amounts, for all other agreements) for all of Customer's active

service agreements during the previous twelve (12) months within five (5) Business Days

of Algonquin's notification, and (ii) the security required by this Section 3.2 within

thirty (30) days of Algonquin's notification. If such advance payment or security is

not received within the specified time period(s), then Algonquin may immediately suspend

service, and may terminate Customer's service agreement(s) upon thirty (30) days' notice

to Customer and the Commission.

 

Security in the form of an advance deposit shall accrue interest to the benefit of

Customer from the date Algonquin receives such deposit. Interest on such advance

deposits shall be calculated monthly at the most recently established 91-day Treasury

Bill auction rate, as published in The Wall Street Journal. Alternatively, a Customer

providing security in the form of an advance deposit may deposit such security into an

interest-bearing escrow account, established by Customer at Customer's expense, to which

account Algonquin shall have unrestricted access in the amount of an invoice upon

presentment of an invoice for the payment of services provided to Customer.

 

3.3 Once every twelve (12) months, Customer shall provide Algonquin with updated financial

information in the form required in Section 3.1 above. In addition, if Algonquin

becomes aware that there may be a potentially material change in the financial condition

of an existing Customer, Algonquin may require Customer to promptly resubmit all of the

financial information required in Section 3.1 above. Algonquin shall re-evaluate

Customer's creditworthiness based upon the updated information provided by Customer

pursuant to Section 3.1 above. If Customer's credit standing ceases to meet Algonquin's

credit requirements at any time during the period of service, then Algonquin has the

right to require security as specified in Section 3.2 above. If the credit standing of

any entity issuing a letter of credit and/or guaranty in support of Customer's

obligations ceases to meet Algonquin's credit appraisal at any time during the period of

service, then Algonquin has the right to require Customer to provide replacement

security that satisfies the requirements of Section 3.2 above.

 

3.4 In the event any information provided by Customer pursuant to Sections 2.1 and 3.1 with

respect to a request for new service or a request that would result in a Billing

Amendment materially changes prior to execution of the new service agreement or Billing

Amendment, as applicable, or Customer learns that such information may materially change

prior to execution of the service agreement or Billing Amendment, as applicable,

Customer shall be obligated to provide written notice of such material changes to

Algonquin. Algonquin shall require Customer to resubmit all of the financial

information required in this Section 3 within ten (10) Business Days of the

identification of the material change. If such updated financial information is not

received within ten (10) Business Days, the request for service will be deemed null and

void. Algonquin shall re-evaluate Customer's creditworthiness based upon the updated

information provided by Customer pursuant to this Section 3.