Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 45 - Gas Service Utilities › Subchapter 17 - Competitive Bidding and Affiliate Transaction Rules for the Provision of Natural Gas Services of Gas Supply, Gathering, Transmission and Storage of Natural Gas Utilities Upstream of the Citygate › Section 165:45-17-24 - Sales of services, products, assets between regulated and unregulated affiliates

Current through Vol. 41, No. 20, July 1, 2024
(a)
Transactions between a utility and its affiliates.
A utility shall
				not cross-subsidize the business activities of any affiliate with revenues from
				a regulated service. A utility cannot recover more than its reasonable fair
				share of the fully allocated costs for any transaction or shared
				services.
(b)
Contemporaneous
				record requirement.
A utility shall maintain a contemporaneous written
				record of all individual transactions with a value equal to or over one million
				dollars with its affiliates, excluding those involving shared services or
				corporate support services, those transactions governed by tariffs or special
				contracts and daily scheduling of gas supply. Such records, which shall include
				at a minimum, the date of the transaction, name of affiliate(s) involved, name
				of a utility employee knowledgeable about the transaction, and a detailed
				description of the transaction with appropriate support documentation for
				review purposes, shall be maintained by the utility for three years.
(c)
Transfers of assets.
Except
				as otherwise required by federal statute or regulation, or pursuant to
				Commission authorized competitive bidding, tariffs, special contract, or as
				otherwise ordered by the Commission; cost recovery for property transferred
				from a utility to its affiliate shall be priced at the "higher of cost or fair
				market value." Except as otherwise required by federal statute or regulation,
				or pursuant to Commission authorized competitive bidding, tariffs, special
				contract or as otherwise ordered by the Commission; asset valuation and
				transfers of property transferred from an affiliate to its utility shall be
				priced at the "lower of cost or fair market value." No matter the origin of the
				transaction, all transfers between a utility and an affiliate will be
				individually scrutinized by the Commission on a case-by-case basis.
(d)
Sale of products or
				services.
Except as otherwise required by federal or state statute or
				regulation, or pursuant to Commission authorized competitive bidding, tariffs,
				special contract or as otherwise ordered by the Commission; any sale of
				products and services provided from the affiliate to the utility shall be
				priced at the "lower of cost or fair market value." Except as otherwise
				required by federal statute or regulation, or pursuant to Commission authorized
				competitive bidding, tariffs, special contract or as otherwise ordered by the
				Commission; any sale of jurisdictional products and services provided from the
				utility to the affiliate shall be priced at the "higher of cost or fair market
				value."
(e)
Joint
				purchases.
A utility may make a joint purchase with its affiliates of
				goods and services involving goods and/or services necessary for utility
				operations. The utility must ensure that all joint purchases are priced,
				reported, and conducted in a manner that permits clear identification of the
				utility's and the affiliate's allocations of such purchases.
(f)
Tying arrangements
				prohibited.
Unless otherwise allowed by the Commission through a rule,
				order or tariff, a utility shall not condition the provision of any product,
				service, pricing benefit, waivers or alternative terms or conditions upon the
				purchase of any other good or service from the utility's affiliate.
Reserved at 15 Ok Reg
				  2177, eff 7-1-98; Amended at 21 Ok Reg 2095, eff
				  7-1-04