Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 7 - Regulatory Commission of Alaska
Chapter 52 - Operation of Public Utilities
Article 9 - Plant Replacement and Improvement Surcharge Mechanism
3 AAC 52.835 - Affiliated transactions

Universal Citation: 3 AK Admin Code 52.835

Current through February 27, 2024

(a) If an eligible utility includes costs in its eligible capital costs from transactions with affiliated interests, the utility must file the following information with each periodic update of the surcharge rate:

(1) the identity of each affiliated interest;

(2) a description of the relationship between the utility and the affiliated interest;

(3) a list of the products and services provided to the utility by the affiliated interest;

(4) the prices and quantity of products or services provided to the utility by the affiliated interest;

(5) a list of alternative suppliers of the product or services purchased from the affiliated interest; and

(6) if applicable, a report showing which products or services provided to the utility by the affiliated interest are also supplied to other customers by the affiliated interest, including prices and quantities.

(b) The commission may investigate, in a general rate case or a separate formal proceeding, the reasonableness of costs that are associated with affiliated interest transactions that are recovered through a utility's plant improvement surcharge. In addition to the information required under (a) of this section, upon commencement of a formal investigation, the utility shall file

(1) a description of costs from affiliated interest transactions that the utility proposes to recover, or has recovered, through the plant improvement surcharge;

(2) the computational methodology for the price the utility pays to the affiliated interest for the product or service;

(3) a comparison of the price the utility pays to the affiliated interest with the prevailing market price, if any, and a comparison of other relevant characteristics, including quality and contractual terms and conditions; and

(4) an estimate of the cost the utility would have incurred to furnish the product or service with its own personnel and capital.

Authority:AS 42.05.141

AS 42.05.151

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