New Mexico Administrative Code › Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES › Chapter 6 - AFFILIATE TRANSACTIONS › Part 450 - AFFILIATE TRANSACTIONS › Section 17.6.450.16 - AFFILIATED INTERESTS EXISTING AS OF MAY 19, 1982: FILING OF DIVERSIFICATION SUMMARY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any
				utility which had any affiliates as of May 19, 1982 is required to have filed a
				diversification summary with the Commission by December 30, 1982 [thirty (30)
				days after the effective date of former General Order No. 39].
B. For the purpose of NMPSC Rule 450.19(c)
				[Subsection C of 17.6.450.16 NMAC], Class I transactions and Class II
				transactions shall include in addition to their definitions in NMPSC Rule 450.6
				[17.6.450.7 NMAC] anything which was classified as a Class I transaction or
				Class II transaction as of November 30, 1982 [the effective date of former
				General Order No. 39].
C. The
				diversification summary shall include:
(1)
				the exact name of each affiliate together with the home office address and name
				of chief executive officer;
(2) the
				date on which each affiliate became affiliated with the public
				utility;
(3) the method or methods
				by which the affiliated interest was accomplished and is maintained;
(4) a chart or listings clearly presenting --
(a) the identities of and interrelationships
				among the public utility and all affiliates;
(b) the percentage and number of each class
				of voting securities of each affiliate which is owned directly or indirectly by
				another affiliate or by the public utility;
(c) if control of any person is maintained
				other than by the ownership or control of voting securities, the basis of such
				control;
(d) the type of business
				organization (e.g., corporation, partnership, trust, etc.); and
(e) the state(s) or other jurisdiction(s) of
				domicile;
(5) a
				description of all Class I and Class II transactions that were operative or
				outstanding on May 19, 1982 including, but not limited to, the following:
(a) their nature and purpose;
(b) the identity of all parties involved;
				and
(c) the nature and amounts of
				any payments or transfers of assets and all rights and obligations established
				between the parties;
(6)
				a brief description of any litigation or administrative proceedings pending or
				concluded on or after May 19, 1982, in which any affiliate of a public utility
				is involved which may have a material effect upon the solvency or capital
				structure or the value of any asset of the affiliate or the public utility,
				including, but not limited to, foreclosure of property, calls upon guarantees,
				bankruptcy, receivership, or other corporate reorganizations;
(7) the latest financial statements for each
				affiliate on an individual basis that have been provided to or are in the
				possession of the utility;
(8)
				latest annual reports to shareholders of each affiliate which have been
				provided to or are in the possession of the utility;
(9) 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 has been accounted
				for by the utility;
(10) the
				allocation factors utilized, the dollar amounts involved during the utility's
				latest fiscal year, and an explanation of how the factors are computed, why
				that methodology is appropriate, and why allocation is required;
(11) the joint officers, directors,
				employees, and facilities and an explanation of their functions and how they
				are divided;
(12) the effect of the
				Class II transactions on the financial performance of the utility and the
				utility's ability to provide reasonable and proper service at fair, just, and
				reasonable rates;
(13) a
				year-by-year annual five-year projection using pro forma financial statements
				showing the effects of Class II transactions compared with a decision not to
				continue such transactions and showing the expected effect of each decision on
				rates; and
(14) an explanation of
				how ratepayers have been protected and insulated from any risks, costs, or
				other adverse effects attributable to Class II transactions or their resulting
				effect.