New Mexico Administrative Code
Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES
Chapter 6 - AFFILIATE TRANSACTIONS
Part 450 - AFFILIATE TRANSACTIONS
Section 17.6.450.13 - REPORTING
Universal Citation: 17 NM Admin Code 17.6.450.13
Current through Register Vol. 35, No. 18, September 24, 2024
A. Class II Transaction Reports:
(1) Any declaration,
filing, petition, prospectus, application, offering memorandum, or registration
statement pertaining to a Class II transaction which is filed with any court of
competent jurisdiction, the United States Securities and Exchange Commission,
or other federal or state administrative agency shall be filed simultaneously
with the Commission.
(2) After
approval of a utility's general diversification plan or after the filing of a
diversification summary, the utility must provide to the Commission unless
otherwise ordered by the Commission:
(a)
concurrent notification of all new or expanded lines of business or ventures
entered into by the utility or any affiliate and any change or transfer of
rights, obligations, or assets between the utility and any affiliate;
and
(b) a verified annual report
covering the last calendar year to be filed as an addendum to the annual report
required by NMPSC Rules 510, 610, or 720 [17.3.510 NMAC, 17.3.610 NMAC, or
17.12.720 NMAC] which shall include:
(i) an
explanation and description of all affiliates, their relationship to each other
and the utility, the types of business in which they are involved, and a
listing of their exact names and home office addresses;
(ii) the total investment in each
affiliate;
(iii) the joint
officers, directors, employees, and facilities and an explanation of their
functions and how they are divided;
(iv) all agreements or contracts required to
implement and/or continue the Class II transaction(s) and any amendments
thereto;
(v) a summary and
explanation of any transactions or agreements between the utility and its
affiliates, corporate subsidiaries, and holding company;
(vi) the allocation factors utilized, the
dollar amounts involved, and an explanation of how the factors are computed,
why that methodology is appropriate, and why the allocation is
required;
(vii) an explanation and
justification of any changes to any part of the utility's general
diversification plan or any representations made to the Commission in
connection therewith;
(viii) the
immediate and projected long-term (up to five (5) years) impact of the Class II
transaction(s) on the capital structure of the public utility;
(ix) an identification and detailed complete
explanation of the method by which any Class II transaction or any action
related thereto that has a utility accounting impact is or will be accounted
for by the utility;
(x) the names
of the officers and managers of the utility and its affiliates;
(xi) the most recent balance sheet and income
statement from each of the utility's affiliates, corporate subsidiaries, and
holding company which have been provided to or are in the possession of the
utility;
(xii) the effect of the
Class II transactions or any action related thereto on the financial
performance of the utility and the utility's ability to provide reasonable and
proper service at fair, just, and reasonable rates;
(xiii) all costs and fees related to the
Class II transaction(s) and any necessary corporate restructuring;
(xiv) a year-by-year, annual five-year
projection using pro forma financial statements showing the effects of the
utility's decision to enter into Class II transactions compared with a decision
not to enter into Class II transactions and showing the expected impact of the
Class II transactions and their resulting effect on utility rates and/or other
matters relating to the public interest;
(xv) the end-of-year consolidated capital
structure (utility plus affiliates);
(xvi) an explanation of how the utility's
capital structure, cost of capital, and ability to raise capital have been
impacted by Class II transactions and their resulting effect;
(xvii) the amount of dollars transferred
between the utility and each affiliate during the annual period and the purpose
of each transfer;
(xviii) an
explanation of how the utility's taxes and their calculation have been
impacted, both on a stand-alone basis and consolidated basis, by Class II
transactions and their resulting effect;
(xix) a five-year, year-by-year projection of
new utility capital requirements categorized and identified to the extent the
utility is able and the projected sources and amounts of capital that will be
used to meet these requirements; and
(xx) an explanation of any impacts on new
utility capital requirements from Class II transactions and their resulting
effect.
(c) The
Commission may, upon receipt of the annual report and a finding of good cause,
commence an investigation into the diversification activities pursuant to the
provisions of the Public Utility Act and the rules of this
Commission.
B. Class I Transaction Reports: Each utility engaging in a Class I transaction during the preceding period shall, unless otherwise ordered by the Commission, provide a statement with its Annual Report covering the twelve months preceding the date its Annual Report is due to be filed showing all monies, securities, or other items of value paid or transferred by a utility to an affiliate or by an affiliate to a utility showing the dollar amount of each Class I transaction by account (using Uniform System of Accounts) and broken down by the type of good or service provided, the quantity, and the price paid or received.
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