Current through September 9, 2024
(a)
General standards. All gas company transactions with a CSC shall
be by master service agreement. All other affiliate transactions involving
non-tariffed goods or services shall be recorded in writing by means of such
instruments as service agreements, contracts, billing invoices, vouchers, or
work orders. All such written instruments shall contain adequate descriptions
of the goods or services to be provided. An executed written contract or
agreement is required of any affiliate transaction, including a transaction
with a CSC, that:
(1) is over $100,000;
(2) involves any cost allocation
between a gas company and any affiliate; or
(3) materially impacts the operation of a gas
company, provided, however, that such executed written contract or agreement is
not required of any transaction with a CSC which is already covered under a
master service agreement. Such contract or agreement shall be filed with the
Department no later than 10 days after the execution of the contract or
agreement, and shall be voidable on order of the Department, but may be
enforced as between the parties unless disapproved. There shall be an arms
length relationship between the parties representing a gas company and its
affiliates on both sides of any affiliated transaction, contract or
agreement.
(b) For every
affiliate transaction (other than the sale of tariffed goods or services) in
which a gas company is the seller, a gas company shall demonstrate that it:
(1) Considered all costs incurred to complete
the transaction;
(2) Calculated the
costs at times relevant to the transaction; and
(3) Allocated all joint and common costs
appropriately.
(c)
Annual Affiliate Transactions Reports.
(1) Reporting requirements for transactions
between a gas company and a CSC. No later than March 31 of each year, each gas
company shall submit to the Department the following information, for activity
through December 31 of the preceding year:
(A)
A copy of all master service agreements;
(B) Annual summary prices paid for services
rendered or goods provided pursuant to such service agreement; and
(C) A copy of "FERC Financial Report Form No.
60" filed pursuant to
18
C.F.R. §
366.23.
(2) Reporting requirements for transactions
between and among a gas company and an affiliate other than a CSC and
transactions involving non-tariffed goods and services. No later than March 31
of each year, each gas company shall submit to the Department an affiliate
transaction report for activities through December 31 of the preceding year.
Each report shall provide, at minimum, the following information about each
transaction:
(A) The date of the
transaction;
(B) The nature and
quantity of the information, assets, goods and services provided to or received
from affiliates;
(C) The total and
itemized costs or price charged to each affiliate and a copy of any contract,
agreement or work order with affiliates, if applicable; and
(D) The basis used (e.g., fair market price
or fully allocated cost) or an explanation of how the price was
derived.
(d)
Affiliated Transactions Records. In addition to complying with
subsection (c) of this section, each gas company shall maintain the following
information, as applicable, regarding all affiliate transactions and produce
such information upon the Department's request:
(1) Records identifying the basis used (e.g.,
fair market price or fully allocated cost) to price all affiliate
transactions;
(2) Books of accounts
and supporting records in sufficient detail to permit verification of
compliance with the Gas Code of Conduct;
(3) Copies of all contracts, agreements, work
orders or related bids for the provision of work, goods or services for or from
an affiliate;
(4) A full and
complete list of all affiliate transactions undertaken with affiliates without
a written contract together with a brief explanation of why there was no
contract; and
(5) A log of all
waivers of a contract provision, and discounts given by the gas company to an
affiliate.
(e)
Audit of Affiliate Transactions. Every management audit performed
pursuant to section
16-8
of the Connecticut General Statutes shall include an audit of affiliate
transactions between a gas company and its affiliates and a gas company's
written procedures in connection with this Gas Code of Conduct. The scope of
the affiliate transactions audit shall include a review of a gas company's and
its affiliates' compliance with the Gas Code of Conduct and all other related
federal or state laws, and the summary and findings of such audit shall be
detailed in a distinct section of any management audit report issued pursuant
to section
16-8
of the Connecticut General Statutes.
