OMAHA, Nebraska – Tenaska today assured customers of its natural gas marketing affiliates – Tenaska Marketing Ventures, Tenaska Gas Storage and Tenaska Marketing Canada (collectively TMV) – that TMV remains a sound and viable company, able to fully respond to the needs of its customers despite the difficulties being experienced by American International Group, Inc. (AIG). Affiliates of AIG and Tenaska jointly own TMV.
TMV President Fred Hunzeker said TMV has not experienced any operating disruptions associated with financial pressure on AIG, and TMV should not be affected by any changes at AIG under the recently announced federal loan provisions.
AIG acquired its 50 percent interest in TMV in 2007. Previously, TMV was wholly owned by Tenaska. Tenaska serves as the managing partner of TMV, and Tenaska’s strong corporate balance sheet, plus a five-year $1 billion revolving line of credit that was secured in 2006 from a consortium of financial institutions, supports TMV’s operations. In addition, Tenaska and AIG issue joint and several guarantees supporting the TMV business.
Hunzeker explained that TMV maintains a one-to-one ratio of primary liquidity (available cash and the revolving line of credit capability) relative to exposure under the guarantees provided by its owners. “We have no problem satisfying requests for collateral when required.”
TMV has been a highly successful business since its founding in 1991 and is ranked by Platts Gas Daily among the 10 largest gas marketing companies in North America.
Tenaska has an international reputation for a conservative approach to business, which has allowed the company to grow and prosper even in times of market turbulence. Hunzeker said that conservative philosophy, plus the company’s risk management expertise, is serving it well in today’s disrupted financial markets. The partnership with AIG was structured with commitments and guarantees that allow TMV to fully meet customer needs and adjust to changing circumstances and conditions.
Hunzeker added, “Thanks to Tenaska’s conservative approach to business, TMV is well positioned to continue providing our customers with the superior level of services they expect and require.”