CGT Credit Procedure
Thank you for your interest in California Gas Transmission services. All customers requesting natural gas transmission services such as transportation, storage, parking, lending, core aggregation and noncore balancing aggregation, must establish creditworthiness with Pacific Gas and Electric Company. PG&E's gas Rule 25 details these credit requirements for all services except core aggregation which is provided for in gas Rule 23.
The Credit Application
Complete a Credit Application: CGT will use this information to establish an appropriate credit limit, either secured or unsecured. Please fill out the application completely to avoid delays with the credit review process.
Other Credit Documents
Customers may also secure credit by means of an Irrevocable Standby Letter of Credit issued by an eligible bank rated an "A" or better by Standard & Poors; or with a Guaranty from a creditworthy third party, which can provide financial information in Step 2 above. These are standard form agreements approved by PG&E. Any modifications to these standard forms may lengthen the credit review process.
Letter of Credit - Eligible Banks may issue a Letter of Credit on a customer's behalf.
Guaranty Agreement - A creditworthy entity may provide credit support for an affiliate.
Please contact a CGT Representative for more information about these forms.
How Much Credit Is Required?
The Credit Application requires an estimate of the maximum monthly dollar amount of business with CGT. This estimated dollar amount is used in part to determine the appropriate credit requirement and will vary based on the type, volume and tariff rate of services requested. The following table provides the general basis for determining the amount of credit necessary.
|Product||Credit requirement is based on:|
|Transportation||The equivalent of two months of transportation fees|
|Parking Services||The equivalent of the total Park fee|
|Lending Services||The equivalent total fee of the Lend, plus the gas commodity value|
|Noncore Balancing Aggregation Agreement (NBAA)||The equivalent of five percent of the total customer Maximum Daily Quantity in the NBAA for two months, multiplied by the current gas commodity price|