FERC SUSPENDS KERN RIVER TARIFF POSING CHANGES TO CREDITWORTHINESS STANDARDS ON GROUNDS THAT THE LENDER APPEAL PROCESS IS NOT SUFFICENTLY DEVELOPED IN THE TARIFF

摘要

On 1/13/12, FERC accepted and suspended for five months, subject to refund, tariff revisions posing new creditworthiness standards and collateral requirements on the pipeline system of Kern River Gas Transmission Co. (RP12-250). The Commission accepted some modifications posed by the pipeline but asked Kern River to provide further explanation and support for its lender appeal process. The revised tariff was submitted a month previously with changes to its General Terms and Conditions (GT&C), which were modified to address both the manner in which Kern River will determine whether a shipper is creditworthy (section 29.1) and the collateral requirements that will be imposed on shippers deemed to be non-creditworthy (section 29.2). The revised tariff can go into effect 6/16/12.