Regulation .08 Record and Reporting Requirements.
Regulation .08 Record and Reporting Requirements.LinkCopy Citation
A.
Each Cost Allocation Manual filed as directed in Regulation .07 of this chapter shall contain the following items:
(1)
The amount the utility allocated or assigned the previous calendar year for each type of cost identified in its CAM;
(2)
An affidavit stating that its cost allocation and the transfer pricing of an asset complies with this subtitle; and
(3)
A certification that a training program is in place to train personnel as necessary to comply with this subtitle.
B.
On or before May 15 of each calendar year a utility shall file with the Commission a report for the previous calendar year ending December 31 titled “Ring Fencing Report” containing the following items:
(1)
A summary of all measures intended to protect the utility's financial strength and credit ratings from the activities of core service and non-core service affiliates;
(2)
A corporate organization chart identifying the utility and its core service and non-core service affiliates;
(3)
A description of each core service and non-core service affiliate's business;
(4)
If available, a copy of each core service and non-core service affiliate's most recently published credit rating report made by a nationally recognized credit rating agency;
(5)
If a utility shares personnel with a core service or non-core service affiliate, a personnel-sharing report listing the shared personnel's position title and function;
(6)
A list of asset transactions between a utility and its core service and non-core service affiliate consistent with the following guidelines:
(a)
For an asset transferred to or from a utility where the book value is above $75,000, the report shall:
(i)
Describe the transferred asset;
(ii)
Indicate the affiliate providing or receiving the asset;
(iii)
Provide the value received or given for the transferred asset; and
(iv)
Provide an external appraisal or the market value of the transferred asset; and
(b)
For an individual asset transferred to or from a utility where the book value is below $75,000, the report shall identify the type of asset transferred and the affiliate providing or receiving the asset;
(7)
A list of all assets, if individually accounted for, or asset categories owned by the utility which were loaned or shared with a core service or non-core service affiliate;
(8)
A list of all assets jointly owned with a core service or non-core service affiliate; and
(9)
A list of all core service or non-core service affiliate debt guaranteed by the utility or secured by any utility asset.
C.
A utility shall maintain a detailed monthly record of any cost allocation and assignment and make this record available for Commission review and audit.
D.
A utility shall permit the Commission to have access to any report and associated work papers prepared for a utility by an independent auditor hired to perform an audit under Public Utilities Article, §4-208, Annotated Code of Maryland.
E.
A utility shall notify the Commission within 7 days after the utility or its affiliate:
(1)
Files for bankruptcy; or
(2)
Is in material breach of any debt obligation which is guaranteed by the utility or secured by its assets.