Subject: NYISO Credit Policy
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked]
Date: Fri, 9 Nov 2001 14:54:14 -0800 (PST)

Please find below the NYISO creditworthiness policy.  Please let me know if you have any question, or would like to revisit the original language.

Brgrds

AI
NYISO Credit Policy
The NYISO has established the following creditworthiness policy to ensure that customer can meet its obligations and to protect against the risk of non-payment of invoices.  A summary of this policy is as follows:
1.	To assure credit worthiness, a NYISO customer may provide a cash deposit, an unconditional and irrevocable letter of credit (from an acceptable American or Canadian Bank with A credit rating from S&P, or A2 by Moody's), or obtain corporate guarantee from its parent company for all financial obligations under the tariffs; assuming that the parent company complies with credit ratings acceptable.  The amount of the instrument equals the sum of the customer's obligations to the NYISO for three months (the greatest over a rolling 12-month period).
2.	In lieu of cash deposits, letters of credit, or corporate guarantee, the customer must submit initially, and annually thereafter, a current debt-rating agency of a minimum of "BBB" or "Baa2" by SP, or Moody's respectively.  

3.	Any services provided under the Tariff may be terminated either immediately (for Service Tariffs) or upon 60 days prior notice (OATT) if the customer fails to demonstrate its creditworthiness.  
A NYISO customer must immediately inform the NYISO of any material change in its financial position.