Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 122 Original Sheet No. 122 : Effective

 

(13) Such other information as may be mutually agreed to

by the parties.

 

Pipeline will maintain any non-public data included in such

information on a confidential basis.

 

(b) Criteria. Pipeline’s determination of Shipper’s

creditworthiness will be based on the level of service

requested, Shipper’s payment history, Shipper having been

in business for at least one (1) year, and the estimated

financial strength of Shipper as shown by a credit rating

of at least “BBB minus” by Standard & Poor’s or Fitch’s or

“Baa3” by Moody’s. If Shipper is rated by multiple

agencies, the lowest rating applies. If Shipper is not

rated by Standard & Poor’s, Fitch’s, or Moody’s, Pipeline’s

determination of Shipper’s financial strength will be based

on financial analysis criteria generally acceptable in the

natural gas industry.

 

(c) On Pipeline’s determination that Shipper is non-

creditworthy, Pipeline will provide, within five (5)

Business Days of Shipper’s request, notification by e-mail

of the basis for Pipeline’s determination and of Pipeline’s

collateral requirements specified in Section 3.4.

 

(d) Ongoing Financial Review. Pipeline will periodically

review the creditworthiness of Shippers pursuant to the

criteria specified in Section 3.2(b). As part of this

review, a Shipper may be required to submit the information

specified in Section 3.2(a). In addition, each Shipper

shall inform Pipeline, in writing, within five (5) Business

Days, of any material change in its financial condition. A

material change in financial status includes the following:

a downgrade of long or short-term debt rating by a major

bond rating agency; being placed on a credit watch with

negative implications by a major credit rating agency; a

bankruptcy filing; any action requiring filing of a Form 8-

K; insolvency; a report of a significant quarterly loss or

decline in earnings; the resignation of key officer(s); and

the issuance of a regulatory order or the filing of a

lawsuit that could materially adversely impact current or

future financial results. As a result of Pipeline’s

ongoing financial review, Pipeline may adjust Shipper’s

credit limit and collateral requirements in accordance with

this Section 3.