California Code of Regulations › Title 20 - Public Utilities and Energy › Division 1 - Public Utilities Commission › Chapter 1 - Rules of Practice and Procedure › Article 3 - Particular Applications › Section 3.6 - (Rule 3.6) Transfers and Acquisitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Applications to sell, lease or encumber utility property or
					 rights, to merge or consolidate facilities, to acquire stock of another
					 utility, or to acquire or control a utility under Sections
					 851
					 through
					 854
					 of the Public Utilities Code shall be signed by all parties to the proposed
					 transaction, except the lender, vendor under a conditional sales contract, or
					 trustee under a deed of trust, unless such person is a public utility. In
					 addition, they shall contain the following data:
(a) The character of business performed and
				  the territory served by each applicant.
(b) A description of the property involved in
				  the transaction, including any franchises, permits, or operative rights; and,
				  if the transaction is a sale, lease, assignment, merger or consolidation, a
				  statement of the book cost and the original cost, if known, of the property
				  involved.
(c) Detailed reasons upon
				  the part of each applicant for entering into the proposed transaction, and all
				  facts warranting the same.
(d) The
				  agreed purchase price and the terms for payment. If a merger or consolidation,
				  the full terms and conditions thereof.
(e) In consolidation and merger proceedings,
				  a financial statement as outlined in Rule 2.3. In other transfer proceedings, a
				  balance sheet as of the latest available date, together with an income
				  statement covering period from close of last year for which an annual report
				  has been filed with the Commission to the date of the balance sheet attached to
				  the application.
(f) Copy of
				  proposed deed, bill of sale, lease, security agreement, mortgage, or other
				  encumbrance document, and contract or agreement therefor, if any, and copy of
				  each plan or agreement for purchase, merger or consolidation.
(g) If a merger or consolidation, a pro forma
				  balance sheet giving effect thereto.
(h) Applications that involve a certificate
				  or operative right as vessel common carrier or passenger stage corporation
				  shall also state, as to the seller, whether it is a party to any through routes
				  or joint rates or fares with any other carrier, and whether operation under the
				  rights involved is presently being conducted. If there has been any suspension
				  or discontinuance of service during the preceding three years, the application
				  shall state those facts and circumstances.
1.
					 Renumbering of former sections
					 35,
					 36 and
					 37 to new section
					 3.6, including amendment of
					 section heading, section and NOTE filed 9-13-2006; operative 9-13-2006 pursuant
					 to Government Code section
					 11351(a)
					 (Register 2006, No. 37).
2. Amendment of first paragraph filed
					 6-4-2009; operative 7-4-2009 (Register 2009, No. 23). Submitted to OAL for
					 limited review pursuant to Government Code section
					 11351 and
					 Public Utilities Code section
					 311(h).
3.
					 Amendment of first paragraph filed 1-8-2014; operative 4-1-2014. Submitted to
					 OAL for limited review pursuant to Government Code section
					 11351 and
					 Public Utilities Code section
					 311(h)
					 (Register 2014, No. 2).
4. Repealer of subsection (i) and amendment
					 of NOTE filed 3-15-2021; operative 5-1-2021 pursuant to Government Code section
					 11343.4(b)(3).
					 Submitted to OAL for limited review pursuant to Government Code section
					 11351 and
					 Public Utilities Code section
					 311(h)
					 (Register 2021, No. 12).
Note: Authority cited: Article 12, Section
						2, California Constitution; and
						Section
						1701,
						Public Utilities Code. Reference: Sections
						1007
						and
						1032,
						Public Utilities Code.