New Jersey Administrative Code › Title 14 - PUBLIC UTILITIES › Chapter 4 - ENERGY COMPETITION › Subchapter 4 - PUBLIC UTILITY HOLDING COMPANY (PUHC) STANDARDS › Section 14:4-4.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) As used in this
				subchapter, "Board," "electric public utility," "electric related service,"
				"gas public utility," "gas related service" and "person" have the same meaning
				as in 14:4-1.2.
(b) The following words and terms, when used
				in this subchapter, shall have the following meanings, unless the context
				clearly indicates otherwise. Additional definitions that apply to this
				subchapter can be found at
				14:3-1.1 and 14:4-1.2.
"Aggregate investment" means all amounts invested, or
				  committed to be invested, in nonutility associates for which there is recourse,
				  directly or indirectly, to the public utility holding company,
				  excluding:
1. The portion of the public utility holding company's book
				  investment that is attributable to increases in retained earnings or to
				  indebtedness issued by any subsidiary with respect to which there is no
				  recourse directly or indirectly to the public utility holding company;
				  and
2. The amount invested in one nonutility associate by another
				  nonutility associate.
"Board of directors New Jersey qualification" means
				  residency, employment and/or other significant ties with the State of New
				  Jersey, as determined by the Board on a case-by-case basis.
"Board of directors independence qualification" means the New
				  York Stock Exchange listing requirements pertaining to the independence of
				  directors, as set forth in Section 303A.02(b) of the NYSE Listed Company Manual
				  (
www.nyse.com/regulation
)
				  and related NYSE rules (
www.nyse.com/regulation/rules/1098571481177.html
),
				  as may be amended and supplemented from time to time, which are incorporated by
				  reference herein.
"Board staff" means the staff of the New Jersey Board of
				  Public Utilities, or successor agency. Except as otherwise provided for, any
				  information required to be provided to the Board staff under this subchapter
				  shall be provided at a time, location, and in a manner as determined by Board
				  staff. In addition, if immediate notification to Board staff is required,
				  electronic mail notification shall be submitted to the Board Secretary, the
				  Division of Audits, the Office of the Chief Economist, and the Division of
				  Energy, or any successors.
"Existing products and/or services," has the meaning assigned
				  to this term at
				  14:4-3.2.
"Money pool" means an inter-company lending arrangement
				  whereby depository, surplus cash funds are loaned or borrowed by an electric or
				  gas public utility or other utility within the public utility holding company
				  system to meet short-term (under 365 days) operating cash requirements.
"Nonutility associate" means a subsidiary company, in a
				  public utility holding company system, that is not an electric or gas public
				  utility or utility associate. Examples of entities excluded from this
				  definition include, but are not limited to:
1. Entities that are developing facilities that will engage
				  in public utility or utility associate activities; and
2. Entities that are directly related and subordinate to, or
				  that directly support, public utility or utility associate activities,
				  including, but not limited to:
i. Entities that provides fuel to generating plants;
ii. Entities created to facilitate tax advantages;
iii. Entities created to facilitate financing
				  transactions;
iv. Captive insurance and other risk management entities;
				  or
v. Entities that hold or manage emission allowances or other
				  environmental allowances or credits.
"Preexisting director" means a director on the board of
				  directors whose term commenced before April 6, 2009. A preexisting director's
				  reelection to, or extension of term on, the board of directors after April 6,
				  2009, terminates the preexisting director designation for that director.
"Public utility holding company" has the meaning assigned to
				  this term at N.J.A.C. 14:4-3.2.
"Public utility holding company system" means a public
				  utility holding company, together with its subsidiary companies.
"Service agreement" means a contract or agreement whereby a
				  public utility holding company or a subsidiary undertakes to sell, lease, or
				  furnish any managerial, financial, legal, engineering, purchasing, marketing,
				  auditing, statistical, advertising, publicity, tax, research, or any other
				  service, information or data, or any goods, equipment, materials, supplies,
				  appliances, or similar property, to an electric or gas public utility in the
				  same public utility holding company system. Nothing in this subchapter shall be
				  deemed to expand the Board's jurisdiction over service agreements beyond its
				  existing jurisdiction under
				  48:3-7.1.
"Shared services" has the meaning assigned to this term at
				  14:4-3.2.
"Subsidiary" or "subsidiary company" of a public utility
				  holding company means:
1. Any company, for which 10 percent or more of the
				  outstanding voting securities of the company are directly or indirectly owned,
				  controlled, or held with power to vote, by the public utility holding company;
				  and
2. Any person over whose management or policies the public
				  utility holding company has a controlling influence that is sufficient to make
				  it necessary for the rate protection of utility customers that such person be
				  subject to the obligations, duties, and liabilities imposed by this subchapter
				  upon subsidiary companies of public utility holding companies. This shall apply
				  regardless of whether the public utility holding company exercises its
				  influence directly or indirectly, either alone or pursuant to an arrangement or
				  understanding with one or more other persons. The Board shall make this
				  determination after notice and opportunity for hearing.
"Utility associate" means a subsidiary company, in a public
				  utility holding company system, that directly or indirectly derives or will
				  derive substantially all of its revenues (greater than 70 percent) from:
1. Producing, generating, transmitting, delivering,
				  distributing, storing, selling, marketing, and/or furnishing natural gas,
				  heating oil, electricity, propane, thermal energy and/or steam energy to
				  wholesale and/or retail customers;
2. Gas and/or electricity related services, including, but
				  not limited to:
i. Energy management services and demand side management
				  activities;
ii. Development and commercialization of electrotechnologies
				  related to energy conservation, storage and conversion, energy efficiency,
				  waste treatment, greenhouse gas reduction, clean coal technologies, and similar
				  innovations;
iii. Ownership, repair, maintenance, replacement, operation,
				  sale, installation and servicing of refueling, recharging and conversion
				  equipment and facilities relating to electric and compressed natural gas
				  powered vehicles;
iv. Sale of electric and gas appliances including equipment
				  to promote new technologies, or new applications for existing technologies,
				  that use gas or electricity and equipment that enables the use of gas or
				  electricity as an alternate fuel and the installation and servicing
				  thereof;
v. Production, conversion, servicing, sale and distribution
				  of:
(1) Thermal energy products and resources, such as process
				  team, heat, hot water, chilled water, air conditioning, compressed air and
				  similar products;
(2) Alternative fuels, such as coal gasification facilities
				  and other synthetic fuels technologies, hydrogen fuel, landfill gas recovery,
				  refuse derived fuels, biomass derived fuels, ethanol, methanol, and other
				  alternative fuels technologies; and
(3) Renewable energy resources;
vi. Sale of technical, operational, management and other
				  similar kinds of services and expertise relating to distribution, transmission,
				  and generation, including engineering, development, design and rehabilitation,
				  construction, maintenance and operation, fuel procurement, delivery and
				  management and environmental licensing, testing and remediation;
vii. Ownership, operation and servicing of fuel procurement,
				  transportation, handling and storage facilities, scrubbers, and resource
				  recovery and waste water treatment facilities, including activities related to
				  nuclear fuels;
viii. Development and commercialization of technologies or
				  processes that utilize coal waste or by-products as an integral component of
				  such technology or process;
ix. Nuclear decommissioning trust activities;
x. Securitization activities, financing activities and tax
				  advantaged transactions related to electric or gas public utility and utility
				  associate activities;
xi. Development activities relating to other authorized
				  electric or gas related activities or utility associate activities;
xii. Local community development investments relating to
				  other authorized electric or gas related activities;
xiii. Revenues from sales of assets that were related to
				  other authorized electric or gas related activities;
xiv. Captive insurance and other risk management
				  activities;
xv. Holding and managing emission allowances or other
				  environmental allowances or credits; or
xvi. Other utility-related activities, as determined on a
				  case-by-case basis by the Board;
3. Existing products and/or services and similar services
				  provided by a subsidiary that is not a public utility; and/or
4. Shared services.
"Voting security" means any security presently entitling the
				  owner or holder thereof to vote in the direction or management of the affairs
				  of a company.