Current through Register Vol. 30, No. 38, September 20, 2024
A. On or before
April 15th of each calendar year, all public utilities meeting the requirements
of
R14-2-802 and
public utility holding companies will provide the Commission with a description
of diversification plans for the current calendar year that have been approved
by the Boards of Directors. As part of these filings, each public utility
meeting the requirements of
R14-2-802 will
provide the Commission the following information:
1. The name, home office location and
description of the public utility's affiliates with whom transactions occur,
their relationship to each other and the public utility, and the general nature
of their business;
2. A brief
description of the business activities conducted by the utility's affiliates
with whom transactions occurred during the prior year, including any new
activities not previously reported;
3. A description of plans for the utility's
subsidiaries to modify or change business activities, enter into new business
ventures or to acquire, merge or otherwise establish a new business
entity;
4. Copies of the most
recent financial statements for each of the utility's subsidiaries;
5. An assessment of the effect of current and
planned affiliated activities on the public utility's capital structure and the
public utility's ability to attract capital at fair and reasonable
rates;
6. The bases upon which the
public utility holding company allocates plant, revenue and expenses to
affiliates and the amounts involved; an explanation of the derivation of the
factors; the reasons supporting that methodology and the reasons supporting the
allocation;
7. An explanation of
the manner in which the utility's capital structure, cost of capital and
ability to raise capital at reasonable rates have been affected by the
organization or reorganization of the public utility holding company;
8. The dollar amount transferred between the
utility and each affiliate during the annual period, and the purpose of each
transfer;
9. Contracts or
agreements to receive, or provide management, engineering, accounting, legal,
financial or other similar services between a public utility and an
affiliate;
10. Contracts or
agreements to purchase or sell goods or real property between a public utility
and an affiliate; and
11. Contracts
or agreements to lease goods or real property between a public utility and an
affiliate.
B. After
reviewing the diversification plans, the Commission may, within 90 days after
plans have been provided, request additional information, or order a hearing,
or both, should it conclude after its review that the business activities would
impair the financial status of the public utility, otherwise prevent it from
attracting capital at fair and reasonable terms, or impair the ability of the
public utility to provide safe, reasonable and adequate service.
