FERC RULES THAT KERN RIVER CANNOT DENY NON-CREDITWORTHY SHIPPERS ACCESS TO LENDERS TO SEEK REDUCTION OF COLLATERAL REQUIREMENT

摘要

FERC on 3/25/11 denied a request by Kern River Gas Transmission Co. (RP10-817) for rehearing of a 6/25/10 order addressing creditworthiness criteria in section 29 of its tariff - specifically, sections 29.1, 29.2, and 29.3. Kern River had submitted its tariff filing on 5/28/10 to revise the definition of creditworthiness. The June 25 order stated that section 29.1(c) “provides another option for a shipper to establish creditworthiness if it is unable to do so under sections 29.1(a) and 29.1(b) and that Kern River is obligated to seek a creditworthiness determination from its lenders before deeming a shipper non-creditworthy.”