Ngo Transmission, Inc.

Original Volume No. 1

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Effective Date: 11/22/2003, Docket: RP04- 67-000, Status: Effective

Original Sheet No. 73 Original Sheet No. 73 : Effective

 

Transporter may immediately suspend service. Transporter may

terminate service on thirty (30) days' prior notice (the notice

may be concurrent with the suspension notice above) if Shipper

fails to satisfy the credit requirements within the applicable

notice period. Any notices hereunder shall also be provided

simultaneously to the Commission. In addition, Transporter shall

notify the Commission by the next Business Day if a suspension or

termination actually occurs.

 

6.5 Insolvency: For purposes herein, the insolvency of a Shipper

shall be conclusively demonstrated by the filing by Shipper or any

parent entity thereof (hereinafter collectively referred to as

"the Shipper") of a voluntary petition in bankruptcy or the entry

of a decree or order by a court having jurisdiction in the

premises adjudging the Shipper bankrupt or insolvent, or

approving, as properly filed, a petition seeking reorganization,

arrangement, adjustment or composition of or in respect of the

Shipper under the Federal Bankruptcy Act or any other applicable

federal or state law, or appointing a receiver, liquidator,

assignee, trustee, sequestrator (or other similar official) of the

Shipper or of any substantial part of its property, or the

ordering of the winding-up or liquidation of its affairs.

Insolvency may also be demonstrated by a filing made by a third

party for the involuntary bankruptcy or insolvency of Shipper.

 

6.6 Creditworthiness: A Shipper will be deemed creditworthy if (i)

its long-term unsecured debt securities are rated at least BBB- by

Standard & Poor's Corporation ("S&P") and at least Baa3 by Moody's

Investor Service ("Moody's") (provided, however, that if the

Shipper's rating is at BBB- or Baa3 and the short-term or long-

term outlook is Negative, Transporter may require further analysis

as discussed below); and (ii) the sum of reservation fees,

commodity fees and any other associated fees and charges for the

contract term is less than fifteen percent (15%) of Shipper's

tangible net worth. If a Shipper has multiple service agreements

with Transporter, then the total potential fees and charges of all

such service agreements shall be considered in determining

creditworthiness.

 

If Shipper does not meet the criteria described above, then

Shipper may request that Transporter evaluate its creditworthiness

based upon the level of service requested relative to the

Shipper's current and future ability to meet its obligations.

Transporter shall apply consistent evaluation practices to all