Pine Prairie Energy Center, LLC

Original Volume No. 1

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Effective Date: 09/01/2007, Docket: RP07-563-000, Status: Effective

Original Sheet No. 109 Original Sheet No. 109 : Effective

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(5) If Prospective Customer has an on-going business relationship

with PPEC, no delinquent balances shall be outstanding for

services PPEC shall have previously performed and Customer shall

have paid its account in the past according to the established

terms and not made deductions or withheld payment for claims not

authorized by contract;

 

(6) Prospective Customer shall confirm in writing that no

significant collection lawsuits or judgments are outstanding which

would seriously reflect upon the business entity's ability to

remain solvent;

 

(7) For prospective Customers that are state-regulated local

distribution companies, documentation provided by each state

regulatory commission (or equivalent authority) having

jurisdiction over the local distribution company's rates

establishing the existence and effectiveness of an authorized gas

cost recovery mechanism which (x) provides for full recovery of

both gas commodity and transportation capacity costs and (y) is

afforded regulatory asset accounting treatment in accordance with

Generally Accepted Accounting Principles;

 

(8) A Statement of prospective Customer's legal composition and a

statement of the length of time Customer's business has been in

operation; and

 

(9) Such other information as may be mutually agreed to by PPEC

and prospective Customer.

 

(h) In the event prospective Customer cannot provide

the information specified in Section 3.3(g) above, it shall, if

applicable, provide that information for its parent company.

 

(i) PPEC shall not be required to perform or to

continue service under any Rate Schedule on behalf of any Customer

or prospective Customer which is or has become insolvent or which,

at PPEC's request, fails to demonstrate creditworthiness in

accordance with Section 3.3, and PPEC may take such action as is

permitted in Section 28.2 of these General Terms and Conditions;

provided, however, that such Customer or prospective Customer may

receive service under any Rate Schedule if it provides Financial

Assurances pursuant to Section 31. For purposes of this Section

3.3(i), the insolvency of a Customer or prospective Customer shall

be conclusively demonstrated by the filing by Customer, or any

parent entity thereof or guarantor of Customer, of a voluntary

petition in bankruptcy or the entry of a decree or order by a

court having jurisdiction in the premises adjudging the Customer,

or any parent entity thereof or guarantor of Customer, bankrupt or

insolvent, or approving, as properly filed, a petition seeking

reorganization, arrangement, adjustment or composition of or in

respect of the Customer, or any parent entity thereof or guarantor

of Customer, under the U.S. Bankruptcy Code or any other

applicable federal or state