a)
Definitions
"Accountant's report" has the same meaning as in
17
CFR 210.1-02 and
210.2-02
as of April 1, 2001.
"Act" means the Public Utilities Act [220 ILCS 5 ].
"Alternative gas supplier" or "AGS" has the same meaning as in
Section 19-105 of the Act [220 ILCS
5/19-105] .
"Applicant" means an entity that files an application with the
Illinois Commerce Commission to provide residential or small commercial gas
service as an alternative gas supplier under Section 19-115 of the Act
[220 ILCS
5/19-115] .
"Best's financial size category" refers to a numerical value
that A.M. Best or its successor assigns to an insurance company based on the
amount of that insurance company's policyholders' surplus and reserve
funds.
"Best's rating" refers to a rating from A.M. Best or its
successor that provides an overall opinion of an insurance company's ability to
meet its obligations to policyholders.
"Certified", when used in regard to financial statements, has
the same meaning as in
17
CFR 210.1-02 as of April 1, 2001.
"Commission" means the Illinois Commerce Commission.
"Dekatherm" means one thousand Mcf of natural gas at one
thousand British Thermal Units per cubic foot or one million British Thermal
Units.
"Dun & Bradstreet Business Information Report" means a
credit report on businesses published by Dun & Bradstreet or its
successor.
"Dun & Bradstreet Composite Credit Appraisal" means a
number, one through four (one being the highest), that reflects Dun &
Bradstreet's or its successor's overall assessment of a firm's
creditworthiness.
"Experian Small Business Intelliscore report" means a credit
report on individuals or businesses published by Experian or its
successor.
"Financial statements" has the same meaning as in
17 CFR
210.3-01 to
210.3-05
as of April 1, 2001.
"Funds from operations interest coverage" equals (cash flow
from operations exclusive of changes in working capital plus gross interest
expense) divided by gross interest incurred before subtraction of capitalized
interest and interest income.
"Funds from operations to average total debt" equals (cash flow
from operations exclusive of changes in working capital plus depreciation
adjustment for operating leases) divided by the average balance of total
debt.
"Guarantee" means an undertaking by a guarantor to pay or
fulfill the obligation upon failure of the principal obligor to fulfill its
contractual obligations. A guarantee shall contain the following
provisions:
The guarantee is one of payment and not of collection;
The guarantor's obligations under the guarantee are weighed
equally with other guarantees;
The obligations from transactions entered into under the
original guarantee must be the subject of an ongoing guarantee;
The guarantee reinstates if any guaranteed payment made by the
primary obligor is recaptured as a result of bankruptcy or insolvency;
and
The guarantee is binding on successors of the guarantor.
"Intelliscore" means a score range from 0 to 100 that reflects
Experian's assessment of the likelihood of an individual or business becoming
seriously delinquent on its outstanding obligations, as reported in the
Experian Small Business Intelliscore report.
"Letter of credit" means an instrument issued by a bank
guaranteeing the payment of a customer's (i.e., the applicant or AGS) drafts in
favor of a third party up to a stated amount for a specified period.
"License bond" or "Permit bond" means an obligation of a surety
to pay the monies that the licensee owes the State of Illinois for violations
of the duties and obligations imposed on it as an AGS.
"Management position" means an employed position whereby an
individual is responsible for directing, supervising, or administering the
activities of a group of two or more people with fiscal responsibility and
authority over that group.
"Material" has the same meaning as in
17
CFR 210.1-02 as of April 1, 2001.
"Mcf" means one thousand cubic feet at 14.73 pounds per square
inch and 60 degrees Fahrenheit and free of water vapor.
"Parent" has the same meaning as in
17
CFR 210.1-02 as of April 1, 2001.
"Payment bond" means an obligation of a surety to pay the
monies that the principal (i.e., the applicant or AGS) owes another party in
the event that the applicant or AGS fails for whatever reason to perform its
contracts.
"PAYDEX Score" is a number from 1 to 100 that represents Dun
& Bradstreet's assessment of a company's payment performance, as reported
in the Dun & Bradstreet Business Information Report.
"Pre-tax interest coverage" equals earnings from continuing
operations before interest and taxes divided by gross interest incurred before
subtraction of capitalized interest and interest income.
"Qualifying surety" or "insurance company" means a surety or
insurer that is authorized by the U.S. Department of the Treasury pursuant to
31 USC
9305. A qualifying surety or insurer may not
underwrite more than the amount specified by the U.S. Department of the
Treasury on a single bond.
"Ratings agency" means Standard & Poor's or its successor,
Moody's Investors Service or its successor, or Fitch Ratings or its
successor.
"Residential customer", as used in this Part, means the same as
the term is defined in Section 19-105 of the Act.
"Segment" refers to a component of an entity whose activities
represent a separate major line of business or class of residential or small
commercial customer.
"Small commercial customer", as used in this Part, means the
same as the term is defined in Section 19-105 of the Act.
"Surplus Line Association of Illinois" is an organization of
Illinois surplus line producers as defined in Section 445.1 of the Illinois
Insurance Code [215 ILCS
5/445.1] .
"Technical staff" means a staff of trained technical experts in
gas and energy supply, including persons who have completed an accredited or
otherwise recognized apprenticeship program or a formal education program and
persons who possess no less than four years of experience working in a similar
position with a utility, AGS or related business. This shall also include those
persons registered as professional engineers as required by the Professional
Engineering Practice Act of 1989 [225 ILCS 325 ].
"Total debt" equals notes payable plus the current portion of
long-term debt, preferred stock and capitalized lease obligations plus
long-term debt plus capitalized lease obligations plus total off balance sheet
debt.
"Total debt to total capitalization" equals total debt divided
by (total debt, plus minority interest, plus total preferred and preference
stock, plus common equity).
"Unconditional guarantee" has the same meaning as "guarantee"
with these additional provisions:
The guarantor has subjected itself to jurisdiction and service
of process in accordance with the laws of the State of Illinois, and the
guarantee will be construed in accordance with the laws of the State of
Illinois without reference to conflict of laws principles; and
The guaranteed obligations are unconditional, irrespective of
value, genuineness, validity, waiver, release, alteration, amendment, and
enforceability of the guaranteed obligations.