20.40.02.05

.05 Asset Transactions Involving an Affiliate.

A. This regulation does not apply to transactions between a utility and another utility, or any operating division of the same utility, which is regulated by the Commission or another state's utility regulatory body.

B. Subject to §C of this regulation, a utility may enter into an asset transfer or receipt transaction with its affiliate.

C. If a utility enters into a transaction with an affiliate involving the transfer or receipt of an asset that has a book value of more than $75,000 per item, or a total book value of $1,000,000, other than a transaction resulting from an open bidding process, including an auction or a request for proposal with an independent evaluator, the utility shall record the transaction in its financial records based on asymmetric pricing to the extent permitted by federal law or regulation.