(A) Structural safeguards.
(1) Each electric
utility and its affiliates that provide services to customers within the
electric utility's service territory shall function independently of each
(2) Each electric utility
and its affiliates that provide services to customers within the electric
utility's service territory shall not share facilities and services if
such sharing in any way violates paragraph (D) of this rule.
between an electric utility and its affiliates are prohibited. An electric
utility's operating employees and those of its affiliates shall function
independently of each other.
(4) An electric utility
may not share employees and/or facilities with any affiliate, if the sharing,
in any way, violates paragraph (D) of this rule.
(5) An electric utility
shall ensure that all shared employees appropriately record and charge their
time based on fully allocated costs.
(6) Transactions made in
accordance with rules, regulations, or service agreements approved by the
federal energy regulatory commission, securities and exchange commission, and
the commission, which rules the electric utility shall maintain in its cost
allocation manual (CAM) and file with the commission, shall provide a
rebuttable presumption of compliance with the costing principles contained in
(B) Separate accounting.
Each electric utility and its affiliates shall
maintain, in accordance with generally accepted accounting principles and an
applicable uniform system of accounts, books, records, and accounts that are
separate from the books, records, and accounts of its affiliates.
(C) Financial arrangements.
Unless otherwise approved by the commission, the
financial arrangements of an electric utility are subject to the following
(1) Any indebtedness
incurred by an affiliate shall be without recourse to the electric
(2) An electric utility
shall not enter into any agreement with terms under which the electric utility
is obligated to commit funds to maintain the financial viability of an
(3) An electric utility
shall not make any investment in an affiliate under any circumstances in which
the electric utility would be liable for the debts and/or liabilities of the
affiliate incurred as a result of actions or omissions of an
(4) An electric utility
shall not issue any security for the purpose of financing the acquisition,
ownership, or operation of an affiliate.
(5) An electric utility
shall not assume any obligation or liability as a guarantor, endorser, surety,
or otherwise with respect to any security of an affiliate.
(6) An electric utility
shall not pledge, mortgage, or use as collateral any assets of the electric
utility for the benefit of an affiliate.
(D) Code of conduct.
(1) The electric utility
shall not release any proprietary customer information (e.g., individual
customer load profiles or billing histories) to an affiliate, or otherwise,
without the prior authorization of the customer, except as required by a
regulatory agency or court of law.
(2) On or after the
effective date of this chapter, the electric utility shall make customer lists,
which include name, address, and telephone number, available on a
nondiscriminatory basis to all nonaffiliated and affiliated certified retail
electric service providers transacting business in its service territory,
unless otherwise directed by the customer. This provision does not apply to
customer-specific information, obtained with proper authorization, necessary to
fulfill the terms of a contract, or information relating to the provision of
general and administrative support services. This information shall not be used
by the certified retail electric service providers for any other purpose than
the marketing of electric service to the customer.
(3) Employees of the
electric utility's affiliates shall not have access to any information
about the electric utility's transmission or distribution systems (e.g.,
system operations, capability, price, curtailments, and ancillary services)
that is not contemporaneously available, readily accessible, and in the same
form and manner available to a nonaffiliated competitor providing retail
(4) An electric utility
shall treat as confidential all information obtained from a competitive retail
electric service provider, both affiliated and nonaffiliated, and shall not
release such information, unless a competitive retail electric service provider
provides authorization to do so or unless the information was or thereafter
becomes available to the public other than as a result of disclosure by the
(5) The electric utility
shall not tie (or allow an affiliate to tie), as defined by state and federal
antitrust laws, or otherwise condition the provision of the electric
utility's regulated services, discounts, rebates, fee waivers, or any
other waivers of the electric utility's ordinary terms and conditions of
service, including but not limited to tariff provisions, to the taking of any
goods and/or services from the electric utility's affiliates.
(6) The electric utility
shall ensure effective competition in the provision of retail electric service
by avoiding anticompetitive subsidies flowing from a noncompetitive retail
electric service to a competitive retail electric service or to a product or
service other than retail electric service, and vice versa.
(7) The electric utility,
upon request from a customer, shall provide a complete list of all competitive
retail electric service providers operating on the system, but shall not
endorse any competitive retail electric service providers, indicate that an
electric services company is an affiliate, or indicate that any competitive
retail electric service provider will receive preference because of an
(8) The electric utility
shall use reasonable efforts to ensure retail electric service consumers
protection against unreasonable sales practices, market deficiencies, and
market power and the electric utility's compliance officer shall promptly
report any such unreasonable sales practices, market deficiencies, and market
power to the director of the rates and analysis department (or their
(9) Employees of the
electric utility or persons representing the electric utility shall not
indicate a preference for an affiliated electric services company.
(10) The electric utility
shall provide comparable access to products and services related to tariffed
products and services and specifically comply with the following:
(a) An electric utility shall be prohibited from unduly
discriminating in the offering of its products and/or services.
(b) The electric utility shall apply all tariff provisions in the
same manner to the same or similarly situated entities, regardless of any
affiliation or nonaffiliation.
(c) The electric utility shall not, through a tariff provision, a
contract, or otherwise, give its affiliates or customers of affiliates
preferential treatment or advantages over nonaffiliated competitors of retail
electric service or their customers in matters relating to any product and/or
(d) The electric utility shall strictly follow all tariff
(e) Except to the extent allowed by any applicable law,
regulation, or commission order, the electric utility shall not be permitted to
provide discounts, rebates, or fee waivers for any retail electric
representatives or shared employees of the electric utility and affiliated
electric services company shall clearly disclose upon whose behalf their public
representations are being made when such representations concern the
entity's provision of electric services.
(1) Notwithstanding the
foregoing, in a declared emergency situation, an electric utility may take
actions necessary to ensure public safety and system reliability.
(2) The electric utility
shall maintain a log of all such actions that do not comply with this chapter,
and such log shall be subject to review by the commission and its