OAR 860-027-0040
Applications for Approval of Transactions Between Affiliated Interests


(1)

Except as provided in sections (3) and (4) of this rule, the requirements of this rule will apply to any energy or large telecommunications utility seeking authority under ORS 757.490 (Approval needed for certain contracts), 757.495 (Contracts involving utilities and persons with affiliated interests), 759.385 (Contracts regarding use of utility property), and 759.390 (Contracts with affiliated interests). An application for financing to an affiliated interest shall be made under OAR 860-027-0030 (Application by an Energy or Large Telecommunications Utility for Authority to Issue Stocks, Bonds, Notes, or Other Securities).

(2)

Every applicant shall set forth in its application to the Commission, in the manner and form indicated, the following information:

(a)

The applicant’s exact name and the address of its principal business office;

(b)

The name and address of the person authorized, on the utility’s behalf, to receive notices, inquiries, and communications regarding the information;

(c)

A statement describing the relationship between the utility and the contracting entity as defined by ORS 757.015 (“Affiliated interest” defined for ORS 757.105 (1) and 757.495), 757.490 (Approval needed for certain contracts), 759.010, or 759.385 (Contracts regarding use of utility property);

(d)

The amount, kind, and ratio to total voting securities held, if applicable;

(e)

A list of all officers and directors of the affiliated interest who are also officers or directors of the applicant;

(f)

The pecuniary interest, directly or indirectly, of any officer or director who is a party to the contract;

(g)

A description of the goods or services to be provided, the cost incurred in providing each of the goods or services, the market value of the goods or services if different from the costs, and the method or methods proposed for pricing those goods or services;

(h)

An estimate of the amount the utility will pay annually for the goods or services and the accounts in which it will record the charges;

(i)

The reasons, in detail, relied upon by the utility for procuring the proposed goods or services from the affiliate and benefits, if any, utility customers and the general public will derive from the provision of goods or services;

(j)

A description of the procurement process and the reasons, in pertinent detail appropriate to the complexity of the procurement, relied upon by the utility for procuring the proposed goods or services without a competitive procurement process, if such a process is not used;

(k)

Transfer prices in contracts or agreements for the procurement of goods or services under competitive procurement shall be presumed to be the market value, subject to evaluation of the procurement process;

(l)

A copy of the proposed contract or agreement between the utility and the contracting entity; and

(m)

Copies of all resolutions of directors authorizing the proposed transactions and, if stockholders’ approval has been obtained, copies of the resolutions approved by the stockholders.

(3)

This rule shall not apply to utilities seeking to purchase or contracting to purchase, directly or indirectly, from any person or corporation having an affiliated interest as defined in ORS 757.015 (“Affiliated interest” defined for ORS 757.105 (1) and 757.495) or 759.010 or any corporation defined in 757.490 (Approval needed for certain contracts)(1) or 759.385 (Contracts regarding use of utility property)(1):

(a)

Any service provided under a rate or schedule of rates filed with the Commission under ORS 757.210 (Hearing to establish new schedules) or 759.180 (Hearing on reasonableness of rates); or

(b)

Any service provided under a rate or schedule of rates which:

(A)

Has been filed with an agency charged with the regulation of utilities,

(B)

Has been approved as just and reasonable or in compliance with another comparable standard, and

(C)

Is available to a broad class of customers.

(4)

This rule shall not apply to telecommunications utilities electing price cap regulation under ORS 759.405 (Election of regulation under ORS 759.405 and 759.410) and 759.410 (Intent of ORS 759.410).

Source: Rule 860-027-0040 — Applications for Approval of Transactions Between Affiliated Interests, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=860-027-0040.

860‑027‑0000
Applicability of Division 27
860‑027‑0001
Definitions for Utility Budgets, Finance, Accounting, and Annual Reports
860‑027‑0005
Utilities Required to File Reports
860‑027‑0015
New Construction Budget
860‑027‑0016
Accounting for Director’s Fees
860‑027‑0020
Form and Filing of Applications
860‑027‑0025
Applications for Authority to Sell, Lease, Assign, Mortgage, Merge, Consolidate or Otherwise Dispose of or Encumber its Property, or to Acquire Stock, Bonds, or Property of Another Utility
860‑027‑0030
Application by an Energy or Large Telecommunications Utility for Authority to Issue Stocks, Bonds, Notes, or Other Securities
860‑027‑0031
When the Commission May Reregulate Financings of Exempt Telecommunications Utilities
860‑027‑0032
Information Required Concerning Financings of Exempt Large Telecommunications Utilities
860‑027‑0035
Applications by a Utility for Authority to Guarantee Indebtedness
860‑027‑0040
Applications for Approval of Transactions Between Affiliated Interests
860‑027‑0041
Information Required for Utility Goods or Services Provided to Affiliated Interests
860‑027‑0042
Timeliness of Application Made Under OAR 860-027-0040 and Filings Made Under OAR 860-027-0041
860‑027‑0043
Application for Waiver of Requirements Under OARs 860-027-0040 and 860-027-0041
860‑027‑0044
Application for Waiver Requirements by Large Telecommunications Utilities Under OARs 860-027-0040 and 860-027-0041
860‑027‑0045
Uniform System of Accounts for Electric Utilities — Major and Nonmajor
860‑027‑0048
Allocation of Costs by an Energy Utility
860‑027‑0050
Uniform System of Accounts for Large Telecommunications Utilities
860‑027‑0052
Allocation of Costs by a Large Telecommunications Utility
860‑027‑0055
Uniform System of Accounts for Gas Utilities — Major and Nonmajor
860‑027‑0065
Uniform System of Accounts for Steam Heat Utilities — Class A, B, and C
860‑027‑0070
Annual Report Requirements for Electric, Gas, Steam Heat, and Large Telecommunications Utilities
860‑027‑0100
Reporting of Affiliated Transactions
860‑027‑0120
Preservation and Destruction of Records
860‑027‑0175
Energy Utility Reporting Requirements Relating to Major Shareholders
860‑027‑0200
Energy Utility Acquisition
860‑027‑0300
Use of Deferred Accounting by Energy and Large Telecommunications Utilities
860‑027‑0310
Cost-Effective Conservation Resources
860‑027‑0350
Depreciation Study Requirements for Energy Utilities
860‑027‑0400
Integrated Resource Plan Filing, Review, and Update
Last Updated

Jun. 24, 2021

Rule 860-027-0040’s source at or​.us