Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 4240 - Public Service Commission › Chapter 80 - Steam Heating Utilities › Section 20 CSR 4240-80.017 - HVAC Services Affiliate Transactions

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule prescribes the requirements for
				  HVAC services affiliated entities and regulated heating companies when such
				  regulated heating companies participate in affiliated transactions with an H
				  VAC affiliated entity as set forth in sections
				  386.754,
				  386.756,
				  386.760,
				  386.762 and 386.764, RSMo by the General Assembly of the State of
				  Missouri
.
(1) Definitions.
(A) Affiliated entity means any entity not
				regulated by the Public Service Commission which is owned, controlled by or
				under common control with a utility and is engaged in HVAC services.
(B) Control (including the terms
				"controlling," "controlled by," and "common control") means the possession,
				directly or indirectly, of the power to direct, or to cause the direction of
				the management or policies of an entity, whether such power is exercised
				through one (1) or more intermediary entities, or alone, or in conjunction
				with, or pursuant to an agreement with, one (1) or more other entities, whether
				such power is exercised through a majority or minority ownership or voting of
				securities, common directors, officers or stockholders, voting trusts, holding
				trusts, affiliated entities, contract or any other direct or indirect means.
				The commission shall presume that the beneficial ownership of more than ten
				percent (10%) of voting securities or partnership interest of an entity confers
				control for purposes of this rule. This provision, however, shall not be
				construed to prohibit a regulated heating company from rebutting the
				presumption that its ownership interest in an entity confers control.
(C) Fully distributed cost means a
				methodology that examines all costs of an enterprise in relation to all the
				goods and services that are produced. Fully distributed cost requires
				recognition of all costs incurred directly or indirectly used to produce a good
				or service. Costs are assigned either through a direct or allocated approach.
				Costs that cannot be directly assigned or indirectly allocated (e.g. general
				and administrative) must also be included in the fully distributed cost
				calculation through a general allocation.
(D) HVAC services means the warranty, sale,
				lease, rental, installation, construction, modernization, retrofit, maintenance
				or repair of heating, ventilating and air conditioning (HVAC)
				equipment.
(E) Heating company
				means a heating company as defined in section
				386.020, RSMo,
				subject to commission regulation pursuant to Chapter 393, RSMo.
(F) Utility contractor means a person,
				including an individual, corporation, firm, incorporated or unincorporated
				association or other business or legal entity, that contracts, whether in
				writing or not in writing, with a regulated heating company to engage in or
				assist any entity in engaging in HVAC services, but does not include employees
				of a regulated heating company.