1. (a) This section applies only to a public utility that has:

   1. (1) A separate, stand-alone bond rating by Standard and Poor's or Moody’s; and
   2. (2) Affiliates, other than utility-related businesses, with assets whose total book value exceeds ten percent (10%) of the book value of the public utility's assets.

2. (b)

   1. (1) If a public utility's bond ratings are downgraded to a Standard and Poor's rating of BB+ or lower, or to a Moody's rating of Ba1 or lower, such utility shall notify the Arkansas Public Service Commission within thirty (30) days of such downgrading.
   2. (2) The public utility will provide the Arkansas Public Service Commission a copy of publicly released information about such rating downgrade and such other information as the Arkansas Public Service Commission requests.
3. (c) If the Arkansas Public Service Commission finds, after notice and opportunity for hearing, unless waived by the parties, that the public utility's bond ratings downgrade would not have occurred but for one (1) or more relationships between such public utility and one (1) or more affiliates, then the Arkansas Public Service Commission may impose remedies designed to insulate the public utility and its customers from any diminution in the public utility's ability to carry out its obligation to serve at reasonable rates.

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