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

remain solvent.

(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).