Portland General Electric Company
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 12/03/2003, Docket: RP04- 48-000, Status: Effective
Original Sheet No. 48 Original Sheet No. 48 : Effective
GENERAL TERMS AND CONDITIONS
11. SERVICE AGREEMENT AND CREDITWORTHINESS
11.1 Form of Agreement. Transporter and Shipper shall execute a Service
Agreement covering the service contemplated. The executed Service
Agreement, together with the General Terms and Conditions and applicable
Rate Schedule shall constitute the entire agreement between the parties
for service provided therein and shall be modified only in writing.
11.2 Creditworthiness. A Shipper seeking service from Transporter under
Rate Schedule FT or IT must provide the following:
(a) A copy of Shipper’s most recent audited financial statements and
unaudited quarterly statements certified by the Chief Financial Officer
of the Shipper. The Certificate shall state that such unaudited
financial statements fairly represent the financial condition and the
results of the operations of the Shipper for the period indicated and
are prepared in accordance with generally accepted accounting principles.
(b) Such other documentation as the Transporter shall reasonably request
in connection with this service contemplated.
(c) A list of Shipper’s affiliates, including parent and subsidiaries,
In the event Shipper cannot provide the information above, Shipper
shall provide that information for its parent company.
(d) As security for the payment of amounts due, Shipper agrees to provide
(i) In the event Shipper maintains a long-term, senior, unsecured debt
rating, not supported by third party credit enhancement, of at least
"BBB" by Standard & Poor’s or "Baa2" by Moody's, without negative
implications, no additional security is required.
(ii) In the event Shipper maintains a long-term, senior, unsecured debt
rating, not supported by third party credit enhancement, less than "BBB"
by Standard & Poor’s or "Baa2" by Moody’s, has negative implications, or
does not maintain a credit rating, it agrees to provide:
(1) one or more irrevocable, transferable, standby letters of
credit from a major U.S. commercial bank or a foreign bank with a U.S.
branch office. Such bank shall have a credit rating of at least "A+"
from Standard & Poor’s or "A1" from Moody's and $10 Billion in assets.
The letter of credit shall be in favor of and in a form acceptable to
(2) a guaranty in favor of and in a form acceptable to
Transporter from an entity acceptable to Transporter; or
(3) cash prepayment in an amount equal to the cost of the