NAC704.7901. Distribution company: Standards of conduct when dealing with affiliate.  


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  • When dealing with an affiliate, a distribution company:

         1. Shall not discriminate between the affiliate and another entity that competes with the affiliate in the provision or procurement of goods, services, facilities and information, or in the establishment of standards.

         2. Shall not refuse to provide an entity that is in competition with an affiliate with goods, services, facilities or information which the Commission determines the distribution company is reasonably capable of providing to its affiliate, regardless of whether the distribution company currently offers such goods, services, facilities or information to an affiliate.

         3. Shall not, when providing or procuring, or declining to provide or procure, goods, services, facilities or information, or when establishing standards, provide, attempt to provide or conspire with another person, including, without limitation, an affiliate, to provide:

         (a) A competitive advantage to an affiliate; or

         (b) A competitive disadvantage to a competitor of an affiliate.

         4. Shall account for all transactions with each affiliate in accordance with accounting principles designated or approved by the Commission.

         5. Shall, if it offers to an affiliate a good or service other than a good or service provided by a contract pursuant to paragraph (h) of subsection 1 of NAC 704.7898, offer the same service to all similarly situated nonaffiliated entities.

         6. Shall, at the same time it offers to an affiliate a good or service other than a good or service provided by contract pursuant to paragraph (h) of subsection 1 of NAC 704.7898, offer the same service to nonaffiliated entities by using the mechanism described in subsection 7.

         7. Shall provide a mechanism that is accessible to the public, such as an electronic bulletin board, for all interested entities to receive promptly pertinent information concerning:

         (a) Services which the distribution company provides;

         (b) Any discounted services which the distribution company offers to an affiliate; and

         (c) Any transaction between the distribution company and an affiliate.

         8. Shall not represent that it will provide an affiliate or a customer of an affiliate with different treatment regarding the provision of services as a result of affiliation with the distribution company than the treatment the distribution company provides a nonaffiliated provider of service and its customers.

         9. Shall not provide an affiliate or a customer of an affiliate with preferences over a nonaffiliated supplier or its customers, including, without limitation, preferences in terms and conditions of service or pricing, or in timing of service.

         10. Shall apply a tariff provision that allows for discretion in its application in the same manner for an affiliate and customers of the affiliate as it does for another market participant and its customers.

         11. Shall strictly enforce mandatory tariff provisions.

         12. Shall not condition or otherwise tie the provision of a utility service or the availability of discounts, rates, other charges, fees, rebates or waivers of terms and conditions to the taking of any goods or services from an affiliate.

         13. Shall not:

         (a) Refer a potential customer to an affiliate;

         (b) Provide information to an affiliate regarding a potential business arrangement between a potential customer and the affiliate;

         (c) Except as otherwise prescribed by the Commission, acquire information on behalf of or to provide to an affiliate;

         (d) Share with an affiliate a market analysis report, survey, research or any other type of report that is proprietary or not available to the public, including, without limitation, a forecast, planning or strategic report;

         (e) Give an appearance that the distribution company speaks on behalf of an affiliate or that a customer will receive preferential treatment as a consequence of conducting business with an affiliate; or

         (f) Give an appearance to a third party that an affiliate speaks on behalf of the distribution company.

    Ê Nothing in this subsection prohibits an affiliate from billing for distribution services in a manner consistent with NAC 704.789 to 704.792, inclusive.

         14. Shall make any discount or waiver of all or a part of a charge or fee available to all market participants.

         15. Shall not share the office space, equipment or services of an affiliate or access the computer information systems of an affiliate, unless the affiliate executes a contract with the distribution company that has been approved by the Commission pursuant to the procedures set forth in paragraph (h) of subsection 1 of NAC 704.7898.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)