TITLE 69. PUBLIC UTILITIES AND CARRIERS

CHAPTER 3. REGULATION OF UTILITIES

Part 15. Material Affiliate Transactions

Definitions

69-3-1501. Definitions. As used in this part, unless the context requires otherwise, the following definitions apply:

(1) "Affiliate" means an entity closely connected or associated with a regulated energy utility.

(2) "Affiliate transaction" means a financial transaction between the utility operations of a regulated energy utility and an affiliate.

(3) "Material affiliate transaction" means an affiliate transaction that has a significant potential impact on the financial stability of a regulated energy utility, including but not limited to:

(a) dividend payments from a regulated energy utility to a corporate parent company if those payments would place the regulated energy utility's credit quality or property in jeopardy;

(b) intercompany loans or other extensions of credit or advances of working capital between a regulated energy utility and an affiliate if those activities would place the regulated energy utility's credit quality or property in jeopardy;

(c) the use of proceeds in issuing securities for which the assets of the regulated energy utility are pledged; or

(d) external borrowing by a regulated energy utility with a term greater than 120 days if the loan would place the regulated energy utility's credit quality or property in jeopardy.

(4) "Regulated energy utility" means a public utility with more than 100 customers that owns distribution facilities for the distribution of electricity or natural gas to the public and that is regulated by the commission pursuant to this title.

History: En. Sec. 1, Ch. 220, L. 2005.