1. (a) A public utility shall not directly engage in a nonutility business other than a utility-related business if the total book value of such nonutility business’s nonutility assets owned by the utility exceeds ten percent (10%) of the book value of the total assets of the public utility and all its affiliates.

2. (b) This section does not apply to or prohibit a public utility or any affiliate thereof from continuing to engage in any nonutility business existing as of the effective date of this part, provided:

   1. (1) The public utility files with the Arkansas Public Service Commission a description of such nonutility business existing as of the effective date of this part; and
   2. (2) Such filing is received within one hundred twenty (120) days of the effective date of this part.

3. (c) Each public utility or its public utility holding company shall file an annual report with the Arkansas Public Service Commission in accordance with 23 CAR § 450-109 that includes:

   1. (1) A certification by the president of the public utility that the public utility is in compliance with this section; and (2) All financial information necessary for the Arkansas Public Service Commission to determine the utility is complying with the requirements in subsection (a) of this section.

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