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 165:45-17-23 - Standards of conduct between utilities and affiliate(s)

Current through Vol. 41, No. 20, July 1, 2024
Natural gas utilities upstream of the citygate, including
				  those utilities which have customers subject to pipeline tariff agreements
				  downstream of the citygate or aggregation point, must conduct their business to
				  conform to the following standards:
(1) Natural gas utilities must apply any
				tariff provision in the same manner to the same or similarly situated persons
				if there is discretion in the application of the provision.
(2) Natural gas utilities must strictly
				enforce a tariff provision for which there is no discretion in the application
				of the provision.
(3) Except as
				necessary for physical operational reasons, natural gas utilities may not,
				through a tariff provision or otherwise, give their affiliates or knowingly
				give customers of their affiliates preference over shippers or other utility
				customers in matters relating to any service offered to shippers including, but
				not limited to: scheduling, balancing, metering, storage, standby service or
				curtailment policy.
(4) Unless such
				disclosure is simultaneously made public, natural gas utilities shall not
				disclose to their affiliates any information which they receive from, a
				non-affiliated customer, shipper or supplier, a potential customer, shipper or
				supplier, any agent of such customer, or potential customer, or shipper, or
				supplier, or a marketer or other entity seeking to supply gas to a customer or
				potential customer.
(5) A natural
				gas utility's operating employees and the operating employees of its marketing
				affiliate must function independently of each other, and shall be employed by
				separate corporate entities to the maximum extent practicable.
(6) Natural gas utilities and their
				affiliates shall keep separate books of accounts and records.
(7) Natural gas utilities shall establish a
				complaint procedure. In the event the natural gas utility and the complainant
				are unable to resolve a complaint, the complainant may address the complaint to
				the Commission.
(8) With respect to
				any transaction or agreement relating in any way to gas sales, supply,
				transmission, storage, distribution or marketing, a natural gas utility shall
				conduct all such transactions with any of its affiliates on an arm's length
				basis.
(9) The Commission shall
				resolve affiliate transaction disputes or abuses on a case-by-case basis. Any
				aggrieved party may file a complaint with the Commission alleging the
				particulars giving rise to the alleged dispute or abuse. The Commission shall
				consider at a minimum the following issues when hearing a complaint:
(A) Whether or not the information or data
				furnished to the affiliate was generally available to other market
				participants.
(B) Whether or not
				the natural gas utility conducted business in such a manner that actual or
				expected expenses were shifted from the non-regulated subsidiary to the
				regulated entity.
(C) Whether or
				not the natural gas utility conducted business in such a manner that actual or
				expected revenues were shifted from the regulated entity to the non-regulated
				entity.
(D) Whether or not the
				regulated entity offered terms, condition or rates for the provision of natural
				gas services to the affiliate that it refused to provide to other customers or
				whether such provision resulted in the affiliate having an unfair
				advantage.