65- 407 C.M.R. ch. 820, § 7

Current through 2024-25, June 19, 2024

Section 407-820-7 - FILING REQUIREMENTS

A. Notification of Intent to Undertake Non-Core Utility Activity. A utility must notify the Commission of each non-core activity it intends to pursue within 30 days of the commencement of operations.

B. Type of Notification.

1 New Corporate Entity. If a utility plans to establish a new corporate entity in which to conduct the non-core utility activity, notification will be achieved when it makes its required filing pursuant to 35-A M.R.S.A. §708(2).

2 Use of Existing Affiliate. If a utility plans to undertake a non-core activity in an existing affiliate, it shall submit a letter to the Commission describing the non-core utility activity and the name of the affiliate in which it will undertake the same activity and seek any approvals required by 35-A M.R.S.A. §707.

C. Information to be Included with Section 707 F iling. For all requests for approval of affiliated transactions pursuant to 35-A M.R.S.A. §707, the utility seeking approval must file prefiled testimony including the following, as applicable.

1 An indication of the specific affiliated transactions for which the utility seeks approval pursuant to section 707;

2 For any contract or arrangement expected to involve the use by an affiliated interest of any asset, including intangibles, the utility's determination of the value of the asset;

3 Supporting documentation for the utility's asset value determination as follows:

(a) Good Will. To the extent the utility contests the presumption set forth in section 4(C) for the value of good will, the utility shall file a market study or other-relevant information providing evidence that an alternative value should be considered.

(b) Intangibles Other Than Good Will. For intangibles other than good will the utility shall provide a market study or appraisal estimating the market value of the intangible asset.

(c) Tangible assets. For any tangible asset, documentation for the price charged to other affiliates, or the market price of comparable assets.

4 Any support services agreements; and

5 Any other agreements and contracts for which the utility seeks approval.

D. Information Required to Be Included with Section 708 F iling. For all requests for approval of reorganizations pursuant to 35-A M.R.S.A. §708, the utility seeking approval must file prefiled testimony including the following information, as applicable:

1 The amount the utility seeks to invest as part of the reorganization in the affiliated interest;

2 If the utility proposes to invest any amount in the affiliated interest, it shall provide:

a. A statement of the utility's bond rating or equivalent credit rating; and

b. The utility's cash flow and earnings projections and pro forma balance sheets for a period of no less than two years from the end of the fiscal year in which the filing is made.

65- 407 C.M.R. ch. 820, § 7