Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 11/30/2009, Docket: RP10-77-000, Status: Effective

Second Revised Sheet No. 518 Second Revised Sheet No. 518

Superseding: Second Sub First Revised Sheet No. 518





3. CREDIT EVALUATION (continued)


(e) Customers with an ongoing business relationship with Algonquin shall have no

delinquent balances outstanding for services provided previously by Algonquin, and

Customer must have paid its account according to the established terms and not

made deductions or withheld payment for claims not authorized by contract.


(f) Customer shall confirm in writing that no significant collection lawsuits or

judgments are outstanding which would materially affect Customer's ability to

remain solvent as a business entity.


3.2 Alternatives to Satisfaction of Credit Criteria. Upon notification by Algonquin that

Customer has failed to satisfy the credit criteria or subsequently during the term of

the service agreement no longer satisfies the credit criteria, such Customer may still

obtain credit approval by Algonquin if it pays any outstanding balances due Algonquin

for service rendered or has complied with Section 19.3 of the General Terms and

Conditions with regard to such balances and elects to provide one of the following forms

of security:


(a) an advance deposit;


(b) a standby irrevocable letter of credit, acceptable to Algonquin, issued by a

financial institution that satisfies Algonquin's credit appraisal;


(c) security interest in collateral found to be satisfactory to Algonquin; or


(d) a guarantee, acceptable to Algonquin, by another person or entity that satisfies

Algonquin's credit appraisal.


Algonquin shall provide such Customer with a written statement supporting Algonquin's

request for the security amount requested at the time such security is requested. If

pipeline rejects the security provided by Customer in accordance with Section 3.2(b)-(d)

above, Algonquin shall re-issue its request for the security and include a written

explanation for the rejection of the security previously provided by Customer. For a

new Customer, or a Customer requesting a Billing Amendment, such security shall be

calculated as follows:

(i) For firm service, an amount equal to the three (3) highest Months' worth of

reservation charges at the applicable maximum Recourse Rate during a Contract


(ii) For interruptible service, an amount equal to fifteen (15) Days of usage per Month

for three (3) Months multiplied by the arithmetic average of the applicable

commodity rate(s), multiplied by Customer's Maximum Daily Quantity;

(iii) For Park and Loan Service, the applicable maximum Park and Loan Daily Charge

multiplied by Customer's Maximum Park Quantity or Maximum Loan Quantity, as

applicable, plus the value of any quantity to be loaned to Customer;

(iv) For Capacity Release Umbrella agreements, Algonquin will accept any collateral

amount submitted by Customer in relation to the request for the capacity release

umbrella agreement; however, Customer will be required to comply with all of

Algonquin's credit requirements at such time as Customer submits a bid to acquire

released capacity pursuant to Section 14 of the General Terms and Conditions of

this FERC Gas Tariff;

(v) For Operational Balancing Agreements, an estimated imbalance quantity of 5,000 Dth

per Month for three (3) Months multiplied by the average of Algonquin's cashout

prices for the latest three (3) Months.


For an existing Customer, such security shall be equal to the highest three (3) Months

of activity (based on usage of in-kind and loan agreements and the billed amounts,

including cashout amounts, for all other agreements) for all of Customer's active

service agreements during the previous twelve (12) Months. For the purposes of this

section, the term "in-kind agreement" does not include fuel reimbursement.