New Mexico Administrative Code › Title 17 - PUBLIC UTILITIES AND UTILITY SERVICES › Chapter 6 - AFFILIATE TRANSACTIONS › Part 450 - AFFILIATE TRANSACTIONS › Section 17.6.450.13 - REPORTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. Class II
				Transaction Reports:
(1) Any declaration,
				filing, petition, prospectus, application, offering memorandum, or registration
				statement pertaining to a Class II transaction which is filed with any court of
				competent jurisdiction, the United States Securities and Exchange Commission,
				or other federal or state administrative agency shall be filed simultaneously
				with the Commission.
(2) After
				approval of a utility's general diversification plan or after the filing of a
				diversification summary, the utility must provide to the Commission unless
				otherwise ordered by the Commission:
(a)
				concurrent notification of all new or expanded lines of business or ventures
				entered into by the utility or any affiliate and any change or transfer of
				rights, obligations, or assets between the utility and any affiliate;
				and
(b) a verified annual report
				covering the last calendar year to be filed as an addendum to the annual report
				required by NMPSC Rules 510, 610, or 720 [17.3.510 NMAC, 17.3.610 NMAC, or
				17.12.720 NMAC] which shall include:
(i) an
				explanation and description of all affiliates, their relationship to each other
				and the utility, the types of business in which they are involved, and a
				listing of their exact names and home office addresses;
(ii) the total investment in each
				affiliate;
(iii) the joint
				officers, directors, employees, and facilities and an explanation of their
				functions and how they are divided;
(iv) all agreements or contracts required to
				implement and/or continue the Class II transaction(s) and any amendments
				thereto;
(v) a summary and
				explanation of any transactions or agreements between the utility and its
				affiliates, corporate subsidiaries, and holding company;
(vi) the allocation factors utilized, the
				dollar amounts involved, and an explanation of how the factors are computed,
				why that methodology is appropriate, and why the allocation is
				required;
(vii) an explanation and
				justification of any changes to any part of the utility's general
				diversification plan or any representations made to the Commission in
				connection therewith;
(viii) the
				immediate and projected long-term (up to five (5) years) impact of the Class II
				transaction(s) on the capital structure of the public utility;
(ix) 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 will be accounted
				for by the utility;
(x) the names
				of the officers and managers of the utility and its affiliates;
(xi) the most recent balance sheet and income
				statement from each of the utility's affiliates, corporate subsidiaries, and
				holding company which have been provided to or are in the possession of the
				utility;
(xii) the effect of the
				Class II transactions or any action related thereto on the financial
				performance of the utility and the utility's ability to provide reasonable and
				proper service at fair, just, and reasonable rates;
(xiii) all costs and fees related to the
				Class II transaction(s) and any necessary corporate restructuring;
(xiv) a year-by-year, annual five-year
				projection using pro forma financial statements showing the effects of the
				utility's decision to enter into Class II transactions compared with a decision
				not to enter into Class II transactions and showing the expected impact of the
				Class II transactions and their resulting effect on utility rates and/or other
				matters relating to the public interest;
(xv) the end-of-year consolidated capital
				structure (utility plus affiliates);
(xvi) an explanation of how the utility's
				capital structure, cost of capital, and ability to raise capital have been
				impacted by Class II transactions and their resulting effect;
(xvii) the amount of dollars transferred
				between the utility and each affiliate during the annual period and the purpose
				of each transfer;
(xviii) an
				explanation of how the utility's taxes and their calculation have been
				impacted, both on a stand-alone basis and consolidated basis, by Class II
				transactions and their resulting effect;
(xix) a five-year, year-by-year projection of
				new utility capital requirements categorized and identified to the extent the
				utility is able and the projected sources and amounts of capital that will be
				used to meet these requirements; and
(xx) an explanation of any impacts on new
				utility capital requirements from Class II transactions and their resulting
				effect.
(c) The
				Commission may, upon receipt of the annual report and a finding of good cause,
				commence an investigation into the diversification activities pursuant to the
				provisions of the Public Utility Act and the rules of this
				Commission.