Oregon Administrative Rules › Chapter 860 - PUBLIC UTILITY COMMISSION › Division 36 - WATER UTILITIES › Section 860-036-2200 - Affiliated Interest Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
As used in rules OAR 860-036-2200  through OAR 860-036-2230:
(1) "Affiliate" means a corporation
			 or person who has an affiliated interest, as defined in ORS
			 757.015, with a water
			 utility;
(2) "Affiliate
			 transaction" means a transfer of assets, a sale of supplies, or a sale of
			 services between accounts for regulated activities of a water utility and
			 accounts for nonregulated activities of a separate entity that is either an
			 affiliated interest or another company in which the water utility owns a
			 controlling interest. The term also means a transfer of assets, a sale of
			 supplies, or a sale of services between accounts for the regulated and
			 nonregulated activities of a single water utility;
(3) "Asset" means any tangible or intangible
			 property of a water utility or other right, entitlement, business opportunity,
			 or other thing of value to which a water utility holds claim that is recorded
			 or should be recorded as a capital expenditure in the water utility's financial
			 statements. All water utility tangible or intangible property, rights,
			 entitlements, business opportunities and things of value should be considered
			 assets, services, or supplies;
(4)
			 "Cost" means fully distributed cost, including the water utility's authorized
			 rate of return and all overheads;
(5) "Fair market value" means the potential
			 sales price that could be obtained by selling an asset in an arm's-length
			 transaction to a nonaffiliated entity, as determined by commonly accepted
			 valuation principles;
(6) "Market
			 rate" means the lowest price that is available from nonaffiliated suppliers for
			 comparable services or supplies;
(7) "Net book value" means original cost less
			 accumulated depreciation;
(8)
			 "Nonregulated activity" means an activity that is not a regulated activity of
			 the water utility;
(9) "Regulated
			 activity" means a Commission regulated activity that is provided by a water
			 utility directly or indirectly relating to the general operations of the water
			 utility such as production, transmission, delivery, or provision of
			 water;
(10) "Services" means
			 labor-related activities including, but not limited to advice, auditing,
			 accounting, sponsoring, engineering, managing, operating, financing, and legal.
			 All water utility tangible or intangible property, rights, entitlements,
			 business opportunities, and things of value should be considered assets,
			 services, or supplies; and
(11)
			 "Supplies" means any tangible or intangible property of a water utility or
			 other thing of value that a water utility holds claim that is recorded or
			 should be recorded as an operating expense in the water utility's financial
			 statements. All water utility tangible or intangible property, rights,
			 entitlements, business opportunities, and things of value should be considered
			 assets, services, or supplies.
Stat. Auth.: ORS 183, 756, 757
Stats. Implemented: ORS
				  756.040,
				  757.015