Gas Transmission Northwest Corp.
Third Revised Volume No. 1-A
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Effective Date: 01/01/2007, Docket: RP06-407-000, Status: Effective
Third Revised Sheet No. 141 Third Revised Sheet No. 141 : Effective
Superseding: Second Revised Sheet No. 141
TRANSPORTATION GENERAL TERMS AND CONDITIONS
(Continued)
18. OPERATING PROVISIONS (Continued)
18.3 Creditworthiness (Continued)
(F) Creditworthiness for Imbalance Gas Owed to GTN
The standards for Interruptible Transportation Service apply
to negative imbalances under GTN Rate Schedules. For negative
imbalances, the security requirement under the cash and Letter
of Credit options includes an amount to adequately account for
the value of imbalance gas owed to GTN. The amount of
security necessary to collateralize imbalance gas will be
determined as follows:
(1) For existing Shippers that do not meet GTN's
creditworthiness standards, the security requirement shall
be up to the product of a Shipper's largest monthly
negative imbalance over the most recent twelve (12) month
period and the average of NYMEX future prices for the
available twelve (12) month period as such prices close on
the day the credit requirement is determined.
(2) For new Shippers that do not meet GTN's creditworthiness
standards, the security requirement shall be up to the
product of ten (10) percent of a Shipper's estimated
monthly usage (as estimated by GTN) and the average of
NYMEX future prices for the available twelve (12) month
period as such prices close on the day the credit
requirement is determined. This formula shall be used for
the first twelve (12) months of service while a historical
record is established; thereafter, security for such
Shipper will be determined as specified for an existing
Shipper that does not meet GTN's creditworthiness
standards.
(G) Creditworthiness for Firm and Interruptible Transportation
Service
(1) GTN's credit appraisal procedures involve the
establishment of dollar and term of service credit limits
on a nondiscriminatory basis. Credit limits will reflect
an annual dollar amount and a maximum term. If Shipper
provides a guarantee, GTN will set a credit limit for the
shipper based upon a credit appraisal of the guarantor.
Credit limits may be modified by GTN when Shipper's
financial conditions change.
(Continued)