Ariz. Admin. Code § R14-2-803 - Organization of Public Utility Holding Companies
A. Any utility or affiliate intending to
organize a public utility holding company or reorganize an existing public
utility holding company will notify the Commission's Utilities Division in
writing at least 120 days prior thereto. The notice of intent will include the
following information:
1. The names and
business addresses of the proposed officers and directors of the holding
company;
2. The business purposes
for establishing or reorganizing the holding company;
3. The proposed method of financing the
holding company and the resultant capital structure;
4. The resultant effect on the capital
structure of the public utility;
5.
An organization chart of the holding company that identifies all affiliates and
their relationships within the holding company;
6. The proposed method for allocating federal
and state income taxes to the subsidiaries of the holding company;
7. The anticipated changes in the utility's
cost of service and the cost of capital attributable to the
reorganization;
8. A description of
diversification plans of affiliates of the holding company; and
9. Copies of all relevant documents and
filings with the United States Securities and Exchange Commission and other
federal or state agencies.
10. The
contemplated annual and cumulative investment in each affiliate for the next
five years, in dollars and as a percentage of projected net utility plant, and
an explanation of the reasons supporting the level of investment and the
reasons this level will not increase the risks of investment in the public
utility.
11. An explanation of the
manner in which the utility can assure that adequate capital will be available
for the construction of necessary new utility plant and for improvements in
existing utility plant at no greater cost than if the utility or its affiliate
did not organize or reorganize a public utility holding company.
B. The Commission staff will,
within 30 days after receipt of the notice of intent, notify the Applicant of
any questions which it has concerning the notice or supporting information. The
Commission will, within 60 days from the receipt of the notice of intent,
determine whether to hold a hearing on the matter or approve the organization
or reorganization without a hearing.
C. At the conclusion of any hearing on the
organization or reorganization of a utility holding company, the Commission may
reject the proposal if it determines that it would impair the financial status
of the public utility, otherwise prevent it from attracting capital at fair and
reasonable terms, or impair the ability of the public utility to provide safe,
reasonable and adequate service.
D.
A notice of intent under this section is not required when the reorganization
of an existing Arizona water or wastewater public utility holding company is
due to the purchase of the shares of (or merger with) a Class D or E water or
wastewater utility.
Notes
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