Steckman Ridge, LP

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 04/01/2009, Docket: RP09-389-000, Status: Effective

Original Sheet No. 226 Original Sheet No. 226

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

4. CREDIT EVALUATION (continued)

 

4.2 Forms of Security. (continued)

 

(d) With respect to a request for new service or a request

resulting in a Billing Amendment, the security required by

Steckman Ridge pursuant to Section 4.2(a) must be received

by Steckman Ridge within ten (10) Business Days of Steckman

Ridge's written notification to Customer; otherwise, such

request will be deemed to be null and void. With respect to

an existing Service Agreement, Customer must tender (i) an

advance payment equal to the highest month of activity

(based on usage of in-kind and loan agreements and the

billed amounts for all other agreements) for all of

Customer's active Service Agreements during the previous

twelve (12) months within five (5) Business Days of Steckman

Ridge's notification, and (ii) the security required by

Section 4.2(a) within thirty (30) days of Steckman Ridge's

notification. If such advance payment or security is not

received within the specified time period, then Steckman

Ridge may immediately suspend service, and may terminate

Customer's Service Agreement(s) upon thirty (30) days'

notice to Customer and the Commission.

 

(e) Security in the form of an advance deposit paid to Steckman

Ridge shall accrue interest to the benefit of Customer from

the date Steckman Ridge receives such deposit. Interest on

such advance deposits shall be calculated monthly at the

most recently established 91-day Treasury Bill auction rate,

as published in The Wall Street Journal. In the event that

a Customer who obtained credit approval by providing an

advance deposit subsequently satisfies the credit criteria,

Steckman Ridge shall return the advance deposit, plus

interest, to Customer. Alternatively, a Customer providing

security in the form of an advance deposit may deposit such

security into an interest-bearing escrow account,

established by Customer at Steckman Ridge's expense, to

which account Steckman Ridge shall have unrestricted access

in the amount of an invoice upon presentment of an invoice

for the payment of services provided to Customer. All

advance payments are considered to be collateral held for

security and not prepayments for service.

 

4.3 Once every twelve (12) months, Customer shall provide Steckman

Ridge with updated financial information in the form required in

Section 4.1 above. In addition, if Steckman Ridge becomes aware

that there may be a potentially material change in the financial

condition of an existing Customer, Steckman Ridge shall require

Customer to promptly resubmit all of the financial information

required in Section 4.1 above. Steckman Ridge shall re-evaluate

Customer's creditworthiness based upon the updated information

provided by Customer pursuant to Section 4.1 above. If Customer's

credit standing ceases to meet Steckman Ridge's credit

requirements at any time during the period of service, then

Steckman Ridge has the right to require security as specified in

Section 4.2(a) above. If the credit standing of any entity

issuing a letter of credit and/or guaranty in support of

Customer's obligations ceases to meet Steckman Ridge's credit

appraisal at any time during the period of service, then Steckman

Ridge has the right to require Customer to provide replacement

security that satisfies the requirements of Section 4.2(a) above.