Arlington Storage Company, LLC
First Revised Volume No. 1
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Effective Date: 11/08/2009, Docket: RP10-67-000, Status: Effective
Original Sheet No. 155 Original Sheet No. 155
GENERAL TERMS AND CONDITIONS
30. CREDITWORTHINESS - FINANCIAL ASSURANCES
30.1 "Acceptable Credit Rating" means a Credit Rating for which Customer's Unsecured
Collateral Limit is greater than Customer's Credit Exposure.
30.2 "Credit Rating" means the rating given to Customer's unsecured long term debt by
Standard and Poor's Corporation ("S&P") or Moody's Investor Services, Inc.
("Moody's "). If both S&P and Moody's have issued a Credit Rating to Customer,
the lower rating shall apply for purposes of this FERC Gas Tariff.
30.3 "Credit Exposure" means an amount equal to: (1) in the case of Firm Storage
Services to be provided by ASC using existing facilities, reservation charges
payable at the rate specified in Customer's bid for service or Storage Service
Agreement for a period of three (3) Months or the duration of the Customer's
bid or Storage Service Agreement, whichever is shorter; (2) in the case of
Interruptible services to be provided by ASC using existing facilities, the
Interruptible charge(s) calculated on a one hundred percent (100%) load factor
basis payable for a period of three (3) Months or the duration of the Customer's
Storage Service Agreement, whichever is shorter; or (3) for service that requires
ASC to construct new facilities, an amount determined by ASC prior to the start
of construction that is reasonable in light of the risks of the construction
project, not to exceed Customer's proportional share of the cost of the facilities
to be constructed (which amount shall be reduced as Customer pays off the obligation
for construction of new facilities); plus, for each of (1), (2) and (3), the Market
Value of Loaned Gas.
30.4 "Market Value of Loaned Gas" means the Customer's Loan Balance for service under Rate
Schedules FL and IL, if any, multiplied by the sum of the NYMEX Henry Hub Swap and
the Dominion Basis Swap, as posted on the www.nymex.com web site, for the period under
which the loaned gas is scheduled to be returned pursuant to the Customer's Storage
Service Agreement(s). ASC shall calculate Customer's Market Value of Loaned Gas on a
30.5 "Unsecured Collateral Limit" means the maximum amount of credit ASC will extend
to a Customer, without Customer providing Financial Assurances pursuant to this
Section 30, based upon the Customer's Credit Rating, as provided in the table below:
S&P AAA / Moody's Aaa : $25,000,000
S&P AA+ to AA- / Moody's Aa1 to Aa3 : $15,000,000
S&P A+ to A- / Moody's A1 to A3 : $5,000,000
S&P BBB+ to BBB- / Moody's Baa1 to Baa3 : $1,000,000
S&P BB+ and lower / Moody's Ba1 and lower : $0
30.6 "Material Adverse Change" means the failure of Customer at any time to satisfy
the requirements pertaining to creditworthiness set forth in Section 3.3(g),
to maintain an Acceptable Credit Rating or to maintain or reinstate one of the
forms of Financial Assurances specified in Section 30.10.
30.7 "Financial Assurances" means one or more of the forms of security set forth in
Sections 30.10(a), 30.10(b), 30.10(c) and 30.10(d), in accordance with and in
an amount as set forth in Section 30.10.