North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 11 - UTILITIES COMMISSION › Chapter 19 › Section 11 R19-01 - ELECTRIC MEMBERSHIP CORPORATION REPORTING REQUIREMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) General.
				G.S.
				117-18.1 allows electric membership
				corporations (EMCs) to own and operate separate business entities that provide
				energy services and products, telecommunications services and products, water,
				and wastewater collection and treatment, subject to certain conditions. One of
				those conditions is that the separate business entity fully compensate the EMC
				for the use of personnel, services, equipment, or tangible and intangible
				property of the EMC at the greater of a competitive price or the EMC's fully
				distributed costs. The Utilities Commission is empowered, upon complaint, to
				direct the EMC to adjust charges that do not comply with this condition and, if
				the EMC does not comply, to direct the EMC to divest its interest in the other
				business entity. To enforce
				G.S.
				117-18.1(a)(3), the
				Commission, the Commission Staff, and the Public Staff are authorized to
				inspect the books and records of such other business entities and the EMCs, and
				the Commission is authorized to adopt rules and reporting requirements.
				G.S.
				62-53 provides that in addition to any other
				authority granted in this Chapter, the Commission has the authority to regulate
				EMCs as provided in
				G.S.
				117-18.1.
(b) Applicability. This rule is applicable to
				each EMC providing electric service in North Carolina.
(c) Reporting Requirements by Electric
				Membership Corporations. Each EMC that conducts activities pursuant to
				G.S.
				117-18.1 shall file with the Commission the
				following:
(1) a copy of its audited
				financial statements, on an annual basis;
(2) a cost allocation manual, updated within
				30 days of any significant change in cost allocation methodologies;
(3) a code of conduct adopted by the board of
				directors of the EMC, updated not later than 30 days prior to the effective
				date of any change;
(4) an annual
				report of investments in reportable separate business entity activities on a
				form prescribed by the Commission. "Reportable separate business entities"
				include all separate business entities that provide energy services and
				products, telecommunications services and products, water, or wastewater
				collection and treatment. For purposes of the required form, an "active" role
				is one in which the EMC has an ownership interest in a reportable separate
				business entity and provides personnel, services, equipment, tangible property,
				or intangible property to the reportable separate business entity. A "passive"
				role is defined as one in which the EMC has an ownership interest in a
				reportable separate business entity and does not provide personnel, services,
				equipment, tangible property, or intangible property to the reportable separate
				business entity. Participation by personnel of the EMC in the reportable
				separate business entity solely in an advisory or oversight role as a member of
				that entity's board of directors is not considered an "active" role for
				purposes of this section; and
(5)
				an annual report on transactions between the EMC and reportable separate
				business entities by which the EMC is an active participant in the conduct of
				activities permitted by
				G.S.
				117-18.1, on a form prescribed by the
				Commission and available through the Chief Clerk of the Commission.
The financial statements and annual reports on investments
				  and affiliated transactions shall each cover an annual reporting period of
				  January 1st to December 31st and shall be filed as soon as possible after the
				  close of the calendar year but in no event later than May 1st of the year
				  following the calendar year covered by financial statements and annual reports.
				  The initial cost allocation manual and code of conduct shall be filed no later
				  than 90 days after an EMC conducts its first activity permitted by
				  G.S.
				  117-18.1. The financial statements and annual
				  reports shall be verified by the oath of the chief executive officer of the EMC
				  in accordance with the requirements of
				  G.S.
				  62-53.