Montana Code 69-3-1502. Commission approval of material affiliate transactions — rulemaking authority
69-3-1502. Commission approval of material affiliate transactions — rulemaking authority. (1) In addition to the commission‘s existing regulatory authority under this title and except as provided in 69-3-1503 and subsection (4) of this section, a regulated energy utility may not enter into a material affiliate transaction without the commission’s review and approval.
Terms Used In Montana Code 69-3-1502
- Affiliate: means an entity closely connected or associated with a regulated energy utility. See Montana Code 69-3-1501
- Affiliate transaction: means a financial transaction between the utility operations of a regulated energy utility and an affiliate. See Montana Code 69-3-1501
- commission: means the public service commission provided for in 2-15-2602. See Montana Code 69-1-101
- 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. See Montana Code 69-3-1501
- Property: means real and personal property. See Montana Code 1-1-205
- 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. See Montana Code 69-3-1501
(2)The commission shall approve or deny the material affiliate transaction. Upon a showing of good cause, the commission shall hold a public hearing on the proposed material affiliate transaction within 45 days of an official notification by the regulated energy utility to the commission that the utility is intending to enter into a material affiliate transaction.
(3)If a material affiliate transaction involves dividend payments from a regulated energy utility to a corporate parent company, the commission may limit those dividend payments if the payments would place the regulated energy utility’s credit quality or property in jeopardy.
(4)A regulated energy utility may request an exemption from any of the provisions in this section, and the commission may grant the exemption on a case-by-case basis upon a showing of good cause and after notice and an opportunity for hearing.
(5)The commission may promulgate rules that implement the provisions of this part.