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Title 3 . Commerce, Community, and Economic Development
Chapter 52 . Telecommunications
Section 507. Affiliated interest transactions

3 AAC 52.507. Affiliated interest transactions

(a) If an electric or gas utility includes in its COPA or GCA costs from transactions with affiliated interests, the utility must file the following information with each adjustment clause tariff filing:

(1) the identity of each affiliated interest;

(2) a description of the relationship between the utility and the affiliated interest;

(3) a list of the products and services provided to the utility by the affiliated interest;

(4) the prices and quantity of products or services provided to the utility by the affiliated interest;

(5) a list of alternative suppliers of the product purchased from the affiliated interest;

(6) if applicable, a report showing which products or services provided to the utility by the affiliated interest are also supplied to other customers by the affiliated interest, including prices and quantities.

(b) The commission may investigate, in a general rate proceeding or a separate formal proceeding, the reasonableness of costs that are associated with affiliated interest transactions and are recovered in a utility's COPA or GCA. In addition to the information required under (a) of this section, upon commencement of a formal investigation, the utility shall file

(1) a description of costs from affiliated interest transactions that the utility proposes to recover through the COPA or GCA;

(2) the computational methodology for the price the utility pays to the affiliated interest for the product or service; and

(3) a comparison of the price the utility pays to the affiliated interest with the prevailing market price, if any, and a comparison of other relevant characteristics, including quality and contractual terms and conditions.

History: Eff. 1/11/2004, Register 169

Authority: AS 42.05.141

AS 42.05.151

AS 42.05.381

AS 42.45.110

AS 42.45.130

AS 42.45.160

AS 42.45.170


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Last modified 7/05/2006