The purpose of this part is to:

1. (1) Ensure that all transactions among or between a public utility and any affiliates or divisions do not result in rates which are unreasonable and in violation of Arkansas Code §§ 23-4-103 and 23-4-104;

2. (2) Ensure that the rates charged by public utilities do not provide any subsidy to affiliates or divisions of the public utility which:

   1. (A) Are involved in nonutility activities; or
   2. (B) Provide services to the public utility;
3. (3) Prevent anti-competitive behavior and market manipulation or market power; and
4. (4) Prevent financial risk to rate-regulated public utility operations which may arise from business endeavors of an unregulated affiliate.

Codification Notes: This section was promulgated as Rule II of the Affiliate Transaction Rules prior to codification in the Code of Arkansas Rules.