Rhode Island General Laws 39-3-30. Investigation and order as to transaction between affiliates
The division shall have full power and authority to investigate any contract, arrangement, purchase, or sale, and if the division, after notice and hearing, shall find the contract, arrangement, purchase, or sale to be unjust or unreasonable, the division may make such reasonable order relating thereto as the public good requires. In any such investigation, the burden shall be on the public utility or affiliate to prove the reasonableness of any contract, arrangement, purchase, or sale with, from, or to an affiliate. If the public utility shall fail to satisfy the division of the reasonableness of any contract, arrangement, purchase, or sale, the division may disapprove the same, or disallow payments thereunder or the part of any payment as the division shall find to be unjust or unreasonable, or both disapprove and disallow as aforesaid. No payment disallowed by the division shall be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base. If, in any investigation, the public utility or affiliate shall unreasonably refuse to comply with any request of the division for information with respect to relevant accounts and records, whether of the public utility or any affiliate, any portion of which may be applicable to any transaction under investigation, so that parts thereof as the division may deem material may be made part of the record, the refusal shall justify the division in disapproving the transaction under investigation and disallowing payments in pursuance thereof.
History of Section.
G.L. 1923, ch. 253, § 64; P.L. 1936, ch. 2345, § 1; G.L. 1938, ch. 122, § 60; G.L. 1956, § 39-3-30.
Terms Used In Rhode Island General Laws 39-3-30
- Contract: A legal written agreement that becomes binding when signed.
- Division: means the division of public utilities and carriers. See Rhode Island General Laws 39-1-2
- Public utility: means and includes every company that is an electric distribution company and every company operating or doing business in intrastate commerce and in this state as a railroad, street railway, common carrier, gas, liquefied natural gas, water, telephone, telegraph, and pipeline company, and every company owning, leasing, maintaining, managing, or controlling any plant or equipment, or any part of any plant or equipment, within this state for manufacturing, producing, transmitting, distributing, delivering, or furnishing natural or manufactured gas, directly or indirectly, to or for the public, or any cars or equipment employed on, or in connection with, any railroad or street railway for public or general use within this state, or any pipes, mains, poles, wires, conduits, fixtures, through, over, across, under, or along any public highways, parkways, or streets, public lands, waters, or parks for the transmission, transportation, or distribution of gas for sale to the public for light, heat, cooling, or power for providing audio or visual telephonic or telegraphic communication service within this state, or any pond, lake, reservoir, stream, well, or distributing plant or system employed for the distribution of water to the consuming public within this state, including the water supply board of the city of Providence; provided, that, except as provided in § 39-16-9 and in P. See Rhode Island General Laws 39-1-2