69-8-215. Ratepayer and shareholder protection.

443 words·~2 min read·/mt/title-69/chapter-8/part-2/69-8-215

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69-8-215 . Ratepayer and shareholder protection.

(1)Rates established pursuant to Title 69, chapter 3, part 3, may not allow for the recovery of any portion of a civil judgment in a lawsuit arising out of litigation brought by the shareholders of a predecessor in interest against:

(a)the predecessor in interest;

(b)the officers or directors of the predecessor in interest;

(c)the legal advisers or consultants to the predecessor in interest; or

(d)any successor of the predecessor in interest, including a successor in interest.

(a)Subject to subsection (3), an entity subject to regulation under Title 69, including the entity's subsidiaries and affiliates, may not be made a party to litigation brought by the shareholders of a predecessor in interest against:

(i)the predecessor in interest;

(ii)the officers or directors of the predecessor in interest;

(iii)the legal advisers or consultants to the predecessor in interest; or

(iv)any successor of the predecessor in interest that is not a successor in interest.

(b)Except as provided in subsection (3), an entity subject to regulation under Title 69 may not be held liable for a civil judgment entered against:

(i)a predecessor in interest;

(ii)the officers or directors of a predecessor in interest;

(iii)the legal advisers or consultants to a predecessor in interest; or

(iv)any successor of a predecessor in interest that is not a successor in interest.

(3)Subsection

(2)does not apply:

(a)to a successor of a public utility regulated by the public service commission pursuant to Title 69, chapter 3, on May 2, 1997, whose shareholders received stock as a result of the sale of a public utility; or

(b)if the liabilities resulting from, related to, or arising out of a reorganization, restructuring, or plan of merger were explicitly assumed by written contract to be the liabilities of the successor to the predecessor in interest.

(4)For the purposes of this section:

(a)"predecessor in interest" means a public utility regulated by the commission pursuant to Title 69, chapter 3, on May 2, 1997, in which an interest was purchased through an arm's-length transaction in which the market value of the public utility property purchased was paid for in cash, debt assumption, or a combination of cash and debt assumption; and

(b)"successor in interest" means the purchaser of all or a portion of a public utility regulated by the commission pursuant to Title 69, chapter 3, on May 2, 1997, through an arm's-length transaction in which the market value of the public utility property purchased was paid for in cash, debt assumption, or a combination of cash and debt assumption.