GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
12. CREDITWORTHINESS (Continued)
12.4 Creditworthiness for Interruptible Transportation Service
(Continued)
(a) (Continued)
An equivalent rating may be obtained in one of two ways:
(i) If Shipper's debt is not rated by a recognized debt
rating service, Shipper may request an equivalent rating
as determined by NBP, based on 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 relevant information.
(ii) If a Shipper's debt is not rated by a recognized debt
rating service, Shipper may, at its own expense, obtain
a private rating from a debt rating service acceptable
to NBP, or request that an independent accountant or
financial advisor, mutually acceptable to NBP and the
Shipper, prepare an equivalent evaluation based on the
financial rating methodology, criteria, and ratios for
the industry of the Shipper as published by the above
rating agencies.
(b) Shipper will be deemed to be non-creditworthy if it is rated
below a BB+/Ba1 equivalent standard by any rating agency or
if its credit limit is insufficient to cover Shipper's total
collateral requirement, as described in Paragraph 12.6 of
these General Terms and Conditions of Service. If Shipper
does not establish or maintain creditworthiness as described
above, or if Shipper's credit limit as determined by NBP is
insufficient to cover Shipper's contractual obligations,
Shipper has the option of receiving interruptible
transportation service under this FERC Gas Tariff by
providing to NBP one of the following alternatives:
(Continued)
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Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: January 23, 2004 Effective on: February 28, 2003
Filed to comply with order of the Federal Energy Regulatory Commission, Docket
No. RP02-363, et al., issued December 24, 2003 |