Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 551 - CERTIFICATION OF ALTERNATIVE GAS SUPPLIERS › Section 551.80 - Financial Qualifications

Current through Register Vol. 48, No. 28, July 12, 2024
An applicant shall be deemed to possess sufficient financial
				resources to be certified as an AGS able to serve available residential or small
				commercial customers if it meets any of the following criteria:
a) The applicant provides a copy of a Dun &
			 Bradstreet Business Information Report that demonstrates, at a minimum, that the
			 applicant has a Composite Credit Appraisal of "3" or lower and a PAYDEX score of
			 "70" or higher. If the applicant does not have a Dun & Bradstreet Composite
			 Credit Appraisal, the applicant provides a copy of an Experian Small Business
			 Intelliscore report that demonstrates, at a minimum, that the applicant has an
			 Intelliscore of "63" or higher. At the time of application for certification, the
			 report shall be no more than 30 days old.
b) The applicant maintains at least one of the
			 following short-term credit ratings: A-2 or higher from Standard & Poor's or its
			 successor, P-2 or higher from Moody's Investors Service or its successor, or F-2 or
			 higher from Fitch Ratings or its successor; or at least one of the following
			 long-term credit ratings: BBB- or higher from Standard & Poor's or its
			 successor, Baa3 or higher from Moody's Investors Service or its successor, or BBB-
			 or higher from Fitch Ratings or its successor. The applicant shall provide with its
			 application a copy of the ratings agency reports that present the ratings of the
			 applicant.
c) The applicant maintains a
			 borrowing agreement with an affiliate.
1) The
			 affiliate must have at least one of the following short-term credit ratings: A-2 or
			 higher from Standard & Poor's or its successor, P-2 or higher from Moody's
			 Investors Service or its successor, or F-2 or higher from Fitch Ratings or its
			 successor; or at least one of the following long-term credit ratings: BBB- or higher
			 from Standard & Poor's or its successor, Baa3 or higher from Moody's Investors
			 Service or its successor, or BBB- or higher from Fitch Ratings or its
			 successor.
2) The amount of credit
			 available to the applicant under the borrowing agreement shall be no less than the
			 greater of $500,000 or 5% of the amount of the applicant's revenue for its most
			 recently completed fiscal year adjusted for any amount of revenue expected from
			 customer accounts purchased or under contract to be purchased from another AGS. The
			 amount of revenue for the applicant's most recently completed fiscal year must
			 appear in the applicant's certified financial statements, or those of the
			 applicant's parent, that have received an accountant's report that certifies those
			 financial statements to be free of material misstatement. If the applicant is using
			 the certified financial statements of its parent, the amount of credit available
			 under the borrowing agreement shall be determined using the applicable revenue
			 amount from the segment information section of the certified financial statements of
			 the applicant's parent.
A) If the applicant is
			 listed separately in the segment information section, the applicant's revenue shall
			 be used.
B) If the segment information
			 section is broken down by operation, or other means, the revenue for the entire
			 segment of which the applicant is part shall be used, unless a certified breakdown
			 of the segment by company is provided.
3) The borrowing agreement shall be valid for a
			 period of not less than one year.
4) The
			 applicant shall provide a copy of the following:
A) The ratings agency reports that present the
			 ratings of the affiliate with which the applicant maintains the borrowing
			 agreement;
B) The borrowing
			 agreement;
C) The applicant's certified
			 financial statements, or those of the applicant's parent, as applicable;
D) The accountant's report for the applicant's
			 certified financial statements or those of the applicant's parent, as applicable;
			 and
E) Documents supporting any estimate
			 of revenue from customer accounts purchased or under contract to be purchased from
			 another AGS.