Gas Transmission Northwest Corp.
Third Revised Volume No. 1-A
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Effective Date: 01/01/2007, Docket: RP06-407-005, Status: Pending
Second Revised Sheet No. 133A Second Revised Sheet No. 133A : Pending
Superseding: First Revised Sheet No. 133A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 Creditworthiness (Continued)
(A) Creditworthiness for Firm Transportation Service (continued)
(2) Determining Creditworthiness
A Shipper seeking new service shall initially provide
financial statements, evidence of debt and/or credit
ratings, and other such information as is reasonably
requested by GTN to establish Shipper's qualification for
service. Within three (3) business days, or such later date
acceptable to GTN, an existing Shipper shall provide such
information as is reasonably requested by GTN to confirm
Shipper's qualification for service.
(a) Creditworthiness must be evidenced by a rating for
unenhanced senior unsecured debt of at least BBB by
Standard & Poor's, Baa2 by Moody's, or an equivalent
rating as determined by GTN. In the event that a
split rating occurs between rating agencies, GTN will
rely upon the lower of the ratings. An equivalent
rating may be obtained in one of two ways:
(i) If Shipper's debt is not rated by a recognized debt
rating service, Shipper may request an equivalent
rating as determined by GTN, based on the financial
rating methodology, criteria and ratios for the
industry of the Shipper as published by the above
rating agencies from time to time. In general,
such equivalent rating will be based on the audited
financial statements for the Shipper's two (2) most
recent fiscal years, all interim reports, and any
other relevant information.
(ii) If Shipper's debt is not rated by a recognized debt
rating service, Shipper may, at its own expense,
obtain a private rating from a recognized debt
rating service acceptable to GTN, or request that
an independent accountant or financial advisor,
mutually acceptable to GTN and the Shipper, prepare
an equivalent evaluation based on the financial
rating methodology, criteria, and ratios for the
industry of the Shipper as published by the above
rating agencies.
(Continued)