Subd. 1. Definition.

For the purposes of this section, "affiliated company" means a person, company, corporation, or other entity in which the telephone company has an affiliated interest as defined under section 216B.48, subdivision 1.

Subd. 2. Records.

Telephone companies, except companies that provide only services that have been found to be competitive, shall maintain records for a period of three years documenting transactions in excess of $50,000 with an affiliated company. The documentation must contain:

1. (1) the name of the affiliate;
2. (2) a description of the transaction or contract;
3. (3) the dollar value of the transaction or contract;
4. (4) in the case of goods and services purchased from an affiliate, any evidence of efforts made by the telephone company to secure the same or functionally equivalent goods or services from a nonaffiliated supplier; and
5. (5) in the case of services provided to an affiliate, any evidence of the fair market value of those goods or services.

Subd. 3. Commission review; burden of proof.

In a proceeding for the approval of rates for noncompetitive services, the burden is on the company to prove that goods or services acquired from or sold to affiliates were transferred at reasonable value. The determination of reasonable value shall include but not be limited to durability, quality, service, and price.

* NOTE: This section expires December 31, 2004. Laws 1999, *chapter 224, section 7.