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Utah Administrative Code (Current through November 1, 2019) |
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R746. Public Service Commission, Administration |
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R746-401. Reporting of Construction, Purchase, Acquisition, Sale, Transfer or Disposition of Assets |
| R746-401-1. Applicability |
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Latest version.
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A. These rules shall apply to each gas corporation, electrical corporation, wholesale electrical cooperative, telephone corporation, telegraph corporation, water corporation, sewerage corporation, heat corporation, and independent energy producer, except independent energy producers exempt under Section 54-2-1, operating as a public utility in Utah under the jurisdiction of the Public Service Commission of Utah. B. These rules shall not be applicable to the repair or replacement of existing utility assets, except as noted in Section R746-401-3.A.3.a. C. Transactions shall not be artificially divided to avoid these reporting requirements. D. These rules shall not limit the Commission's jurisdiction to review, at the Commission's discretion, transactions not specifically covered by these rules. E. A utility may apply to the Commission for the modification of these rules or for temporary or permanent exemption from their requirements if unreasonable hardship results from their application. |
| R746-401-2. Definitions |
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A. For purposes of these rules: 1. "Commission" shall mean the Public Service Commission of Utah. 2. "Gross investment in utility plant devoted to Utah service" shall mean the Utah allocated portion of the total of the following types of accounts: Plant in service, property under capital leases, plant bought or sold, completed construction not classified, and experimental plant unclassified. The following types of accounts shall not be included: Plant leased to others, property held for future use, construction work in progress, and acquisition adjustments. 3. "Book cost" shall mean the amount at which an asset is recorded in the books of the utility without deduction for accrued depreciation, depletion, amortization, etc. B. For purposes of these rules, public utilities are divided into the following categories: 1. Large utilities - a public utility serving an annual average of 20,000 or more customers or access lines in Utah as set forth in its most recent annual report on file with the Commission and wholesale electrical cooperatives. 2. Small utilities - a public utility serving less than an annual average of 20,000 customers or access lines in Utah as set forth in its most recent annual report on file with the Commission. |
| R746-401-3. Reporting Requirements |
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A. Each public utility shall file a report with the Commission, at least 30 days before beginning construction, by the utility or contracted by the utility, or before the purchase or acquisition of the following utility assets and any other utility plant devoted to Utah service, the cost of which is in excess of the lesser of $10,000,000 or five percent of gross investment in utility plant devoted to Utah service at the latest balance sheet date as set forth in its most recent annual report on file with the Commission: 1. gas corporations -- a. any manufactured gas production facility, or liquids separation or sweetening plant facility, or gas reinjection plant facility. b. any natural gas storage reservoir or liquified natural gas storage facility. c. any natural gas transmission pipeline the size of which is: i. large utilities - eight inches or greater in diameter and 20 miles or more in length ii. small utilities - four inches or greater in diameter and ten miles or more in length 2. electrical corporations, wholesale electrical cooperatives and independent energy producers -- a. any coal mine, uranium mine, geothermal well or other fuel source development b. any electrical generating facility of ten megawatts or greater c. any electrical transmission line ten miles or more in length and the design voltage of which is: i. large utilities - 138 kilovolts or greater ii. small utilities - 69 kilovolts or greater 3. telephone and telegraph corporations -- a. any new central office or complete replacement of an existing central office in Utah the size of which is: i. large utilities - 5,000 or more access lines in service ii. small utilities - 500 or more access lines in service 4. water corporations -- a. any water well or spring development b. any water storage reservoir c. any water transmission pipeline one mile or more in length 5. sewerage corporations -- a. any sewer treatment facility b. any sewer transmission pipeline one mile or more in length 6. heat corporations -- a. any heat production facility b. any heat transmission pipeline one-quarter mile or more in length B. Each public utility shall file with the Commission, at least 30 days before its being consummated, a report of the sale, transfer or other disposition by that utility of utility assets having a book cost allocated to Utah in excess of the lesser of ten million dollars or five percent of gross investment in utility plant devoted to Utah service at the latest balance sheet date as set forth in its most recent annual report on file with the Commission. C. Each public utility shall file with the Commission, at least 30 days before being placed into effect, a report of the construction, purchase, acquisition, sale, transfer or other disposition by that utility of nonutility assets having a book cost in excess of the lesser of twenty million dollars or ten percent of gross investment in utility plant devoted to Utah service at the latest balance sheet date as set forth in its most recent annual report on file with the Commission. D. The utility shall file with the Commission an original and 12 copies of the report on each transaction described in the foregoing sections. E. The report of each transaction shall contain, at least, the following information: 1. The utility's name and address, and a brief description of the utility's service territory; 2. Description of the subject transaction, the purposes and reasons for the transaction, and the location and purposes of the subject assets; 3. Information to show that the utility has or will get any required consent, franchise or permit from the proper county, city, or other public authority and any other necessary authorizations from the appropriate governmental bodies; 4. Dates assets are to be constructed, bought or otherwise acquired, or sold, transferred or otherwise disposed of; 5. Estimated construction cost of the assets or book cost and accumulated depreciation, depletion or amortization of assets acquired, sold, transferred or disposed of; 6. Information to show that any proposed line, plant or system will not conflict with or adversely affect the operations of any existing certificated public utility which supplies the same product or service to the public and that it will not constitute an extension into the territory certificated to any existing public utility which supplies the same product or service to the public; 7. Financial statements of the utility demonstrating adequate financial capacity to support the construction or acquisition of the proposed assets, and information concerning any proposed financing arrangements necessary to finance the proposed assets; 8. Estimated effect of the transaction on current utility rates and charges; and 9. Other information as the Commission may require. F. Any report filed with the Commission shall be updated or supplemented if there are significant changes in the subject transaction. |
| R746-401-4. Commission Action |
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Latest version.
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Reserved. |