Tuscarora Gas Transmission Company
First Revised Volume No. 1
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Effective Date: 07/01/2009, Docket: RP09-8-002, Status: Effective
Substitute Original Sheet No. 74 Substitute Original Sheet No. 74
Superseding: Original Sheet No. 74
GENERAL TERMS AND CONDITIONS
3. REQUESTS FOR SERVICE/CREDIT EVALUATIONS (Continued)
3.5 Creditworthiness for Firm Transportation
(a) A firm Shipper will be considered creditworthy, and Transporter
will extend credit, if Shipper satisfies the requirements of (1)
and (2) below.
(1) A Shipper will be deemed to represent a reasonable credit risk
if either (A) or (B) is satisfied.
(A)Shipper's long-term unsecured debt securities, at the time
Shipper enters into a Transportation Service Agreement (or
precedent agreement) and throughout the term thereof, are
rated BBB or better by Standard & Poor's Corporation or Baa2
by Moody's Investors Service.
If Shipper's debt is not rated by a recognized debt rating
service, Shipper may request an equivalent rating as
determined by Transporter, based upon the financial rating
methodology, criteria and ratios for the industry of the
Shipper as published by the above rating agencies from time
to time. In general, such equivalent rating will be based on
the audited financial statements for the Shipper's two (2)
most recent fiscal years, all interim reports, and any other
(B) Transporter determines, in its sole discretion reasonably
exercised, that, based upon factors such as the quantity and
character of service requested, Shipper's credit history with
other providers of natural gas service, and any other factors
that a reasonable party in Transporter's position might
consider, Shipper represents a reasonable credit risk.
Transporter my exercise its discretion only to determine that
Shipper is creditworthy when it otherwise fails to meet the
objective criteria set forth in this Tariff. Transporter may
not exercise its discretion to require Shipper to provide
alternative credit support if Shipper satisfies the objective
criteria set forth in this Tariff.
(2) A Shipper will have a sufficient credit limit if 10% of a
Shipper's Tangible Net Worth as determined by Transporter
pursuant to Section 3.4 is sufficient to cover that portion of
Shipper's total contractual obligation for the 2-year period
ending 2 years from the date of evaluation.
(3) Transporter will inform Shipper in writing as to the reasons
Shipper has been deemed non-creditworthy.