Tuscarora Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 07/01/2009, Docket: RP09-8-002, Status: Effective

Substitute Original Sheet No. 74 Substitute Original Sheet No. 74

Superseding: Original Sheet No. 74

 

GENERAL TERMS AND CONDITIONS

 

3. REQUESTS FOR SERVICE/CREDIT EVALUATIONS (Continued)

 

3.5 Creditworthiness for Firm Transportation

 

(a) A firm Shipper will be considered creditworthy, and Transporter

will extend credit, if Shipper satisfies the requirements of (1)

and (2) below.

 

(1) A Shipper will be deemed to represent a reasonable credit risk

if either (A) or (B) is satisfied.

 

(A)Shipper's long-term unsecured debt securities, at the time

Shipper enters into a Transportation Service Agreement (or

precedent agreement) and throughout the term thereof, are

rated BBB or better by Standard & Poor's Corporation or Baa2

by Moody's Investors Service.

 

If Shipper's debt is not rated by a recognized debt rating

service, Shipper may request an equivalent rating as

determined by Transporter, based upon 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.

 

(B) Transporter determines, in its sole discretion reasonably

exercised, that, based upon factors such as the quantity and

character of service requested, Shipper's credit history with

other providers of natural gas service, and any other factors

that a reasonable party in Transporter's position might

consider, Shipper represents a reasonable credit risk.

Transporter my exercise its discretion only to determine that

Shipper is creditworthy when it otherwise fails to meet the

objective criteria set forth in this Tariff. Transporter may

not exercise its discretion to require Shipper to provide

alternative credit support if Shipper satisfies the objective

criteria set forth in this Tariff.

 

(2) A Shipper will have a sufficient credit limit if 10% of a

Shipper's Tangible Net Worth as determined by Transporter

pursuant to Section 3.4 is sufficient to cover that portion of

Shipper's total contractual obligation for the 2-year period

ending 2 years from the date of evaluation.

 

(3) Transporter will inform Shipper in writing as to the reasons

Shipper has been deemed non-creditworthy.