2014 Kentucky Revised Statutes CHAPTER 278 - PUBLIC SERVICE COMMISSION 278.2213 Separate recordkeeping for utility and affiliate -- Prohibited business practices -- Confidentiality of information -- Notice of service available from competitor.
Download as PDF
278.2213 Separate recordkeeping for utility and affiliate -- Prohibited
business practices -- Confidentiality of information -- Notice of service
available from competitor.
The provisions of this section shall govern a public utility company's activities related
to the sharing of information, databases, and resources between its employees or an
affiliate involved in the marketing or the provision of nonregulated activities and its
employees or an affiliate involved in the provision of regulated activities.
(1) A utility and its affiliate shall be separate corporate entities and maintain
separate books and records. If a utility and nonregulated affiliate have common
officers, directors, or employees, the fees, compensation, and expenses of the
individuals involved shall be subject to the cost allocation requirements set
forth in KRS 278.2203 and 278.2207. Any utility that provides nonregulated
activities shall separately account for all investments, revenues, and expenses
in accordance with its filed cost allocation manual.
(2) A utility shall not provide advertising space in its billing envelope to its affiliates
or for its nonregulated activities unless it offers the same to competing service
providers on the same terms it provides to its affiliates. This subsection applies
to nonregulated activities only.
(3) A utility shall not attempt to persuade customers to do business with its
affiliates by offering rebates or discounts on tariffed services.
(4) All utility company employees engaged in the merchant function shall abide by
all standards promulgated by applicable FERC orders and regulations.
(5) No utility employee shall share any confidential customer information with the
utility's affiliates unless the customer has consented in writing, or the
information is publicly available or is simultaneously made publicly available.
(6) All dealings between a utility and a nonregulated affiliate shall be at arm's
length.
(7) Employees transferring from the utility to an affiliate shall not disclose to the
affiliate confidential information or take with them any competitively sensitive
materials.
(8) Neither a utility nor its employees or agents shall solicit business on behalf of
an affiliate or for its nonutility services.
(9) A utility that carries out any research and development or joint marketing and
promotion with its affiliate for its nonregulated activities shall be subject to the
cost allocation requirements set forth in KRS 278.2203.
(10) Except as provided in subsection (5) of this section, if a utility is engaged in a
nonregulated activity, marketing employees for the nonregulated activity shall
not have access to the customer information provided to the utility when the
customer places an order for regulated service.
(11) A utility shall not provide any type of undue preferential treatment to a
nonregulated affiliate to the detriment of a competitor.
(12) A utility shall notify the customer that competing suppliers of a nonregulated
service exist if:
(a) The utility receives a request for a recommendation from a customer
seeking a specific service which is offered by the utility's affiliate or by the
(13)
(14)
(15)
(16)
(17)
utility itself; and
(b) The utility mentions itself or its affiliate when making the recommendation
to the customer.
The utility's name, trademark, brand, or logo shall not be used by a
nonregulated affiliate in any type of visual or audio media without a disclaimer.
The commission shall develop specifications for the disclaimer. The disclaimer
shall be approved by the commission prior to use in any advertisement by the
utility's affiliate.
A utility shall not enter into any arrangements for financing nonregulated
activities through an affiliate that would permit a creditor upon default to have
recourse to the assets of the utility.
A utility shall inform the commission of all new nonregulated activities begun by
itself or by the utility's affiliate within a time to be set by the commission.
Start-up costs associated with the formation of a nonregulated affiliate shall not
be included in the utility's rate base.
The commission may require the utility to file annual reports of information
related to affiliate transactions when necessary to monitor compliance with
these guidelines.
Effective:July 14, 2000
History: Created 2000 Ky. Acts ch. 511, sec. 8, effective July 14, 2000.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.