Standards Governing Initial Determinations of Creditworthiness. In addition to the creditworthiness requirements specified in the Third Party Supplier Agreement, if and only if Supplier is performing Consolidated Billing under this Agreement, the Company will determine whether Supplier is creditworthy. The Company shall make this determination in accordance with the guidelines set forth herein, subject to the Supplier’s right to submit to the Board for resolution any dispute concerning Company’s requirements if Supplier believes such requirements are inappropriately based or assessed. Company shall not be obligated to execute this Agreement until said dispute is resolved by a final, non-appealable Order of the Board. With respect to creditworthiness, Supplier must demonstrate that it has, and maintains, a minimum “BBB” or equivalent long term unsecured credit rating from Xxxxx’x Investors Service and Standard & Poor’s Rating Services. Supplier must also provide Company with its most recently independently-audited financial statements or, if Supplier is a publicly held firm, its most recent Form 10-K and Form 10-Q. On an ongoing basis, Supplier must continue to provide Company with updated versions of all of the above, as they become available. Specifically, updated financial statements or Form 10-Ks must be provided within ninety (90) days of fiscal year-ends, and updated Form 10-Qs must be provided within forty-five (45) days of the close of each quarter that does not coincide with the end of Supplier’s fiscal year. Company may make alternative credit arrangements with a Supplier that is unable to demonstrate creditworthiness based on its credit rating. Alternative credit arrangements may include any of the following:
a. a guarantee of payment, satisfactory in form and substance to the Company, from a Guarantor that has, and maintains, a minimum “BBB” or equivalent long term unsecured credit rating from Xxxxx’x Investors Service and Standard & Poor’s Rating Services in an amount equal to sixty (60) days’ maximum estimated collection of all charges payable to Company from customers, as reasonably estimated by the Company;
b. an irrevocable Letter of Credit, satisfactory in form and substance to the Company, issued by a bank or other financial institution that is acceptable to the Company, that has, and maintains, a minimum “A” or equivalent long term unsecured credit rating from Xxxxx’x Investors Service and Standard & Poor’s Rating Services in an amount equal to sixty (60) days’ maximum estimated collection of all Cus...
Standards Governing Initial Determinations of Creditworthiness. RECO will be guided by the standards that it employs in routine commercial transactions as it makes an initial determination of whether the Supplier is creditworthy or whether the Supplier, if not creditworthy, has presented satisfactory alternative arrangements. Standards in effect in January 2005 are summarized in Appendices B1 (for Suppliers serving CIEP customers), B2 (for Suppliers serving FP customers) and B3 (for Suppliers serving both CIEP and FP customers), and are subject to modification from time to time, by RECO. The Supplier shall have the right to submit to the Board or the FERC, as appropriate, for resolution, any dispute regarding the RECO’s requirements if the Supplier believes such a requirement is inappropriately based or assessed. RECO shall not be obligated to execute this Agreement until said dispute is resolved by a final, nonappealable Order of the Board or the FERC, as appropriate. In the event that Supplier has elected to perform Consolidated Billing, Supplier will be required to satisfy the creditworthiness requirements contained in the Billing Services Agreement in addition to the creditworthiness requirements set forth herein.
