1. (a) Except as otherwise provided in this section, or in other applicable law, with respect to an affiliate transaction involving assets, goods, services, information having competitive value, or personnel, a public utility shall not:

   1. (1) Receive anything of value, unless the compensation paid by the public utility does not exceed the lower of market price or fully allocated cost of the item received; and
   2. (2) Provide anything of value, unless the compensation received by the public utility is no less than the higher of market price or fully allocated cost of the item provided.

2. (b) This section shall not apply to or prohibit any of the following unless the Arkansas Public Service Commission finds, after notice and hearing, unless waived by the parties, and consistent with applicable law, that such arrangement is not consistent with the purposes of this part as defined in 23 CAR § 450-102:

   1. (1) Exchanges of information:

      1. (A) Necessary to the reliable provision of public utility service by a public utility, provided such exchange occurs consistently with guidelines:

3. (i) Published by the utility; and

   1. (ii) Applied equally to affiliates and nonaffiliate entities;

      1. (B) Required by or necessary to comply with federal statutes or regulations; or
      2. (C) Between or among a public utility, its parent holding company, a service company, and any affiliated rate-regulated utility in another state of the United States;
   2. (2) The provision of shared corporate support services, at fully allocated cost, between or among a public utility and any affiliate, including a service company;
   3. (3) The provision, at fully allocated cost, of assets, goods, services, or personnel between or among a public utility and an affiliated rate-regulated utility in another state of the United States;
   4. (4) The provision of assets, goods, services, information having competitive value, or personnel at a price determined by competitive bidding or pursuant to a regulatory filed or approved tariff or contract; or

   5. (5) Any other affiliate transaction proposed by a public utility to be exempted from subsection (a) of this section provided that:

      1. (A) The public utility first files with the Arkansas Public Service Commission an application for an exemption of such proposed affiliate transaction from the requirements of subsection (a) of this section including:

         1. (i) A detailed description of the proposed transaction; and
         2. (ii) Any relevant supporting documentation; and
      2. (B) The Arkansas Public Service Commission finds, after notice and hearing, unless waived by the parties, on such application and consistent with applicable law, that the proposed exemption is consistent with the purposes of this part as defined in 23 CAR § 450-102.

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