N.M. Admin. Code § 17.6.450.16 - AFFILIATED INTERESTS EXISTING AS OF MAY 19, 1982: FILING OF DIVERSIFICATION SUMMARY

A. Any utility which had any affiliates as of May 19, 1982 is required to have filed a diversification summary with the Commission by December 30, 1982 [thirty (30) days after the effective date of former General Order No. 39].

B. For the purpose of NMPSC Rule 450.19(c) [Subsection C of 17.6.450.16 NMAC], Class I transactions and Class II transactions shall include in addition to their definitions in NMPSC Rule 450.6 [17.6.450.7 NMAC] anything which was classified as a Class I transaction or Class II transaction as of November 30, 1982 [the effective date of former General Order No. 39].

C. The diversification summary shall include:

(1) the exact name of each affiliate together with the home office address and name of chief executive officer;

(2) the date on which each affiliate became affiliated with the public utility;

(3) the method or methods by which the affiliated interest was accomplished and is maintained;

(4) a chart or listings clearly presenting --

(a) the identities of and interrelationships among the public utility and all affiliates;

(b) the percentage and number of each class of voting securities of each affiliate which is owned directly or indirectly by another affiliate or by the public utility;

(c) if control of any person is maintained other than by the ownership or control of voting securities, the basis of such control;

(d) the type of business organization (e.g., corporation, partnership, trust, etc.); and

(e) the state(s) or other jurisdiction(s) of domicile;

(5) a description of all Class I and Class II transactions that were operative or outstanding on May 19, 1982 including, but not limited to, the following:

(a) their nature and purpose;

(b) the identity of all parties involved; and

(c) the nature and amounts of any payments or transfers of assets and all rights and obligations established between the parties;

(6) a brief description of any litigation or administrative proceedings pending or concluded on or after May 19, 1982, in which any affiliate of a public utility is involved which may have a material effect upon the solvency or capital structure or the value of any asset of the affiliate or the public utility, including, but not limited to, foreclosure of property, calls upon guarantees, bankruptcy, receivership, or other corporate reorganizations;

(7) the latest financial statements for each affiliate on an individual basis that have been provided to or are in the possession of the utility;

(8) latest annual reports to shareholders of each affiliate which have been provided to or are in the possession of the utility;

(9) an identification and detailed complete explanation of the method by which any Class II transaction or any action related thereto that has a utility accounting impact is or has been accounted for by the utility;

(10) the allocation factors utilized, the dollar amounts involved during the utility's latest fiscal year, and an explanation of how the factors are computed, why that methodology is appropriate, and why allocation is required;

(11) the joint officers, directors, employees, and facilities and an explanation of their functions and how they are divided;

(12) the effect of the Class II transactions on the financial performance of the utility and the utility's ability to provide reasonable and proper service at fair, just, and reasonable rates;

(13) a year-by-year annual five-year projection using pro forma financial statements showing the effects of Class II transactions compared with a decision not to continue such transactions and showing the expected effect of each decision on rates; and

(14) an explanation of how ratepayers have been protected and insulated from any risks, costs, or other adverse effects attributable to Class II transactions or their resulting effect.

Notes

N.M. Admin. Code § 17.6.450.16

Recompiled 12/30/01