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126.03.14-VI. Books, Records and Procedures.

AR ADC 126.03.14-VIArkansas Administrative Code

West's Arkansas Administrative Code
Title 126. Public Service Commission
Division 03. Utilities Division
Rule 14. Affiliate Transaction Rules
Ark. Admin. Code 126.03.14-VI
126.03.14-VI. Books, Records and Procedures.
Currentness
A. Recordkeeping
1. The public utility shall:
a. keep books and records separately from the books and records of its affiliates; and,
b. maintain such books and records in accordance with the applicable rules and orders of the Commission, and with Generally Accepted Accounting Principles (GAAP) as amended; provided, that, any multi-jurisdictional public utility whose Arkansas rates are set pursuant to jurisdictional allocations among such public utility's various regulatory jurisdictions shall not be required to keep books and records other than on a combined basis including all its utility business.
2. Such books and records shall contain all information necessary to:
a. identify all affiliate transactions in which the public utility participated; and,
b. identify and allocate or impute all revenues and costs (both direct and indirect) associated with all such affiliate transactions.
3. Upon the creation of a new affiliate that will participate in affiliate transactions with a public utility, the utility shall, no later than 6o days after the creation of such affiliate, notify the Commission by letter to the Secretary of the Commission of the creation of such new affiliate, which notice shall include an explanation of how the public utility will implement these rules with respect to such new affiliate.
4. Each public utility shall maintain, for at least five years, records of each affiliate transaction in which it participated and the records shall:
a. be made contemporaneously with each affiliate transaction;
b. be in a readily retrievable format; and,
c. include, for each affiliate transaction:
(1) the identity of the affiliate involved in the affiliate transaction;
(2) the commencement and termination dates of the affiliate transaction;
(3) a description of the affiliate transaction, including the nature and quantity of value provided and received;
(4) the dollar amount of the affiliate transaction and the manner in which such dollar amount was calculated;
(5) all other terms of the affiliate transaction;
(6) the direct and indirect costs associated with the affiliate transaction, including any allocation formula used to attribute indirect costs; and,
(7) all information necessary to verify compliance with these rules and the accuracy of amounts stated on the public utility's books and records, such information to include, but not be limited to:
(a) invoices, vouchers, communications, journal entries, workpapers; and,
(b) information supporting the price of each affiliate transaction, including but not limited to the cost and allocation method of the affiliate transaction and, when the cost was the result of a competitive bidding process, the market price and basis for the market price of the Affiliate transaction; and,
d. be summarized and said summary for the prior calendar year shall be filed annually with the Commission as part of the annual report required by Rule IX. Unless otherwise ordered by the Commission, a public utility may satisfy the requirement of this Rule VI.A.4.d by filing with the Commission a copy of Federal Energy Regulatory Commission Form 60, Annual Report of Centralized Service Companies.
5. Each public utility shall file contemporaneously with its annual report under Rule VI.A.4.d the following information: a summary report indicating the aggregate dollar amount of all transactions described in Rule III.G.(1), (2), (3), and (4) which the utility has conducted with each affiliate, as defined under Rule III.A., including the name of each such affiliate.
6. Each public utility shall maintain, update annually, train appropriate employees in, and (within 120 days following the effectiveness of these rules, and thereafter, to the extent of material changes, in each annual report required under Rule IX) file with the Commission, written procedures which ensure compliance with these rules; and, such written procedures shall include, at a minimum:
a. all internal rules, practices, financial record keeping requirements, and other policies governing affiliate transactions among or between the public utility and its affiliates;
b. the names and addresses of all the public utility's affiliates that participate in affiliate transactions with the public utility;
c. an organizational chart depicting the ownership relationships between the public utility and those affiliates that participate in affiliate transactions with the public utility;
d. a description of the types of assets, goods and services provided in any existing affiliate transaction lasting more than one year; and,
e. a cost allocation manual or other description of the methods used to determine allocations in affiliate transactions.
B. Commission Access The Commission shall have access to all books and records, of a public utility and its affiliates that participate in transactions with the public utility, to the extent such access is relevant to determining compliance with all applicable Arkansas statutes and rules or establishing rates subject to the Commission's jurisdiction.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 126.03.14-VI, AR ADC 126.03.14-VI
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