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. 74 Original Sheet No. 74 : Effective
similarly situated Shippers to determine the Shipper's financial
ability to perform the payment obligations due to Transporter over
the term of the requested or existing service agreement. Such
credit appraisal shall be based upon Transporter's evaluation of
the following information and credit criteria:
(a) S&P and Moody's opinions, watch alerts, and rating actions
and reports, rating, opinions and other actions by Dun and
Bradstreet and other credit reporting agencies will be
considered in determining creditworthiness.
(b) Consistent financial statement analysis will be applied by
Transporter to determine the acceptability of Shipper's
current and future financial strength. Shipper's balance
sheets, income statements, cash flow statements and
auditor's notes will be analyzed along with key ratios and
trends regarding liquidity, asset management, debt
management, debt coverage, capital structure, operational
efficiency and profitability.
(c) Results of bank and trade reference checks and credit
reports must demonstrate that a Shipper is paying its
obligations in a timely manner.
(d) Shipper must not be operating under any chapter of the
bankruptcy laws and must not be subject to liquidation or
debt reduction procedures under state laws and there must
not be pending any petition for involuntary bankruptcy. An
exception may be made for a Shipper who is a debtor in
possession operating under Chapter XI of the Federal
Bankruptcy Act if Transporter is assured that the service
billing will be paid promptly as a cost of administration
under the federal court jurisdiction, based on a court order
in effect, and if the Shipper is continuing and continues in
the future actually to make payment.
(e) Whether Shipper is subject to any lawsuits or judgments
outstanding which could materially impact its ability to
(f) Whether Shipper has or has had any delinquent balances
outstanding for services provided previously by Transporter
and whether Shipper is paying and has paid its account
balances according to the terms established in its
transportation service agreements (excluding amounts as to
which there is a good faith dispute).