Caledonia Gas And Storage

Original Volume No. 1

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Effective Date: 12/05/2007, Docket: RP08- 57-000, Status: Effective

First Revised Sheet No. 69 First Revised Sheet No. 69 : Effective

Superseding: Superseding Original Sheet No. 69

Caledonia may reject or accept such other forms of Financial Assurances in a

manner that is not unduly discriminatory; or

 

(d) Customer shall prepay for service or establish an

interest-bearing escrow account to which Caledonia will have access to

payments for service in an amount as set forth immediately

below.

 

The dollar value of the Financial Assurances set forth above in this Section

24.12 to be provided by Customer shall be in an amount equal to Customer’s

Credit Exposure, except for Customers taking service pursuant to Rate

Schedules AILS or ILS, in which case the amount shall be equal to the

Customer’s Credit Exposure minus Customer’s Unsecured Collateral Limit.

Caledonia shall recalculate the dollar value of the Financial Assurances

Customer is required to provide from time to time, but not more often than on

a daily basis. Caledonia shall notify Customer when such recalculation

indicates that additional credit support is required to comply with this

Section. Customer shall have one (1) Business Day to comply with a

notification by Caledonia of insufficient credit support.

 

24.13 Customer’s obligation to maintain an Acceptable Credit Rating

or to provide Financial Assurances shall continue for so long as the Parties

are bound by the Service Agreements and all transactions entered into

thereunder. This obligation shall terminate when Customer has performed or

satisfied all of its obligations under the Service Agreements. Upon the

termination of the Service Agreement, Caledonia shall return to Customer, if

applicable:

 

(a) the Letter of Credit and funds held by Caledonia as security

pursuant to Section 24.12(a) then in its possession but only to the extent it

has not then applied such funds pursuant to this FERC Gas Tariff to the debts,

expenses, costs, assessments and liabilities payable by Customer to Caledonia

pursuant to the provisions of the Service Agreements;

 

(b) the Guarantee held by Caledonia pursuant to Section

24.12(b);

 

(c) any security accepted by Caledonia pursuant to Section

24.12(c); or

 

(d) any amount prepaid by Customer pursuant to Section 24.12(d)

not required to pay charges for service rendered under the Service

Agreements.

 

24.14 Any prepayment is considered collateral held for security and

not advance payments for Services, Any prepayment held by Caledonia shall

accrue interest at the rate specified in Section 154.501(d) of the

Commission’s regulations.