The Third Party Supplier (TPS) Agreement notes that if a TPS does not meet creditworthiness standards on its own merit, it must provide an alternative credit arrangement. The TPS Agreement defines the several types of alternative credit arrangements available to suppliers.
The following files are available to assist suppliers in demonstrating TPS creditworthiness using an alternative credit arrangement:
In addition to the creditworthiness requirements described in the ESCO Manual, Pennsylvania Electric Company (Penelec) will accept a minimum rating of BBB- from Fitch IBCA as one of the two ratings required to demonstrate creditworthiness. Penelec will continue to accept ratings from S&P, Moody's, and Duff & Phelps.
Penelec requests an initial credit amount of $250,000 and an ESCO may be required to provide additional credit amount at a later date as stipulated in the ESCO Agreement Rider D.
Supplier Support must be informed of the specific alternative credit arrangement that the ESCO will use to demonstrate creditworthiness.
(11/19/08)
