Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 02/25/2009, Docket: RP09-296-000, Status: Effective

First Revised Sheet No. 123 First Revised Sheet No. 123

Superseding: Original Sheet No. 123

 

3.3 Establishing Credit Limits.

 

(a) Credit Limits. Generally, credit limits must at least

equal three (3) months of estimated total charges as

determined by Pipeline from time to time. If at any time

Pipeline determines according to these creditworthiness

standards that Shipper is not able fully to support its

credit exposures based solely on its financial viability,

Pipeline may require that collateral be provided. If

required by Pipeline, Shipper will be asked to provide an

acceptable form of collateral within 30 days of Pipeline’s

request. No service to Shipper shall commence until this

requirement is satisfied. If service to Shipper already

has commenced and Shipper fails to provide the collateral

as required by Pipeline within 30 days of notification,

Shipper will be deemed in default of its Service Agreement.

 

(b) Notification. Pipeline will notify Shipper when Shipper

exceeds its credit limit. Within five (5) Business Days of

such notice, Shipper shall take all actions necessary to

comply with the credit limit applicable to Shipper.

 

3.4 Collateral.

 

(a) Shippers that do not satisfy the creditworthiness

requirements based on Pipeline’s creditworthiness

standards, or whose obligations are greater than Shipper’s

established credit limit, may be required to provide

collateral to Pipeline. If collateral is required, Shipper

shall provide an appropriate form of collateral within 30

days of notification from Pipeline. No service to Shipper

shall commence until any such collateral requirement is

satisfied. The amount of credit support required will

depend on Shipper’s transportation activity and the

resulting credit exposures. In all instances, however, on

Pipeline’s determination that Shipper is non-creditworthy,

Shipper will be given the option to provide Pipeline with

collateral in order to receive or retain service.

 

(b) Amount of Collateral.

 

(1) For service not requiring construction, such

collateral may not exceed three (3) month’s worth of

estimated total charges for the service, including an

estimate of the charges set out in section 19.5(b)(1)

relating to a Shipper’s negative imbalance for one

month. The portion of the collateral required that

is attributable to the value of natural gas shall be

calculated as follows. For an existing Shipper, the

Shipper’s largest monthly imbalance over the most

recent 12-month period multiplied by the estimated

imbalance rate, which is defined as the average of