278.2207 Transactions between utility and affiliate -- Pricing requirements --
197 words·~1 min read·
/ky/278-2207A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Request for deviation.
(1)The terms for transactions between a utility and its affiliates shall be in accordance
with the following:
(a)Services and products provided to an affiliate by the utility pursuant to a tariff
shall be at the tariffed rate, with nontariffed items priced at the utility's fully
distributed cost but in no event less than market, or in compliance with the
utility's existing USDA, SEC, or FERC approved cost allocation
methodology.
(b)Services and products provided to the utility by an affiliate shall be priced at
the affiliate's fully distributed cost but in no event greater than market or in
compliance with the utility's existing USDA, SEC, or FERC approved cost
allocation methodology.
(2)A utility may file an application with the commission requesting a deviation from
the requirements of this section for a particular transaction or class of transactions.
The utility shall have the burden of demonstrating that the requested pricing is
reasonable. The commission may grant the deviation if it determines the deviation
is in the public interest.
(3)Nothing in this section shall be construed to interfere with the commission's
requirement to ensure fair, just, and reasonable rates for utility services.