SECTION 165:45-17-23. Standards of conduct between utilities and affiliate(s)

  Natural gas utilities upstream of the citygate, including those utilities which have customers subject to pipeline tariff agreements downstream of the citygate or aggregation point, must conduct their business to conform to the following standards:

(1)   Natural gas utilities must apply any tariff provision in the same manner to the same or similarly situated persons if there is discretion in the application of the provision.

(2)   Natural gas utilities must strictly enforce a tariff provision for which there is no discretion in the application of the provision.

(3)   Except as necessary for physical operational reasons, natural gas utilities may not, through a tariff provision or otherwise, give their affiliates or knowingly give customers of their affiliates preference over shippers or other utility customers in matters relating to any service offered to shippers including, but not limited to: scheduling, balancing, metering, storage, standby service or curtailment policy.

(4)   Unless such disclosure is simultaneously made public, natural gas utilities shall not disclose to their affiliates any information which they receive from, a non-affiliated customer, shipper or supplier, a potential customer, shipper or supplier, any agent of such customer, or potential customer, or shipper, or supplier, or a marketer or other entity seeking to supply gas to a customer or potential customer.

(5)   A natural gas utility's operating employees and the operating employees of its marketing affiliate must function independently of each other, and shall be employed by separate corporate entities to the maximum extent practicable.

(6)   Natural gas utilities and their affiliates shall keep separate books of accounts and records.

(7)   Natural gas utilities shall establish a complaint procedure. In the event the natural gas utility and the complainant are unable to resolve a complaint, the complainant may address the complaint to the Commission.

(8)   With respect to any transaction or agreement relating in any way to gas sales, supply, transmission, storage, distribution or marketing, a natural gas utility shall conduct all such transactions with any of its affiliates on an arm's length basis.

(9)   The Commission shall resolve affiliate transaction disputes or abuses on a case-by-case basis. Any aggrieved party may file a complaint with the Commission alleging the particulars giving rise to the alleged dispute or abuse. The Commission shall consider at a minimum the following issues when hearing a complaint:

(A)   Whether or not the information or data furnished to the affiliate was generally available to other market participants.

(B)   Whether or not the natural gas utility conducted business in such a manner that actual or expected expenses were shifted from the non-regulated subsidiary to the regulated entity.

(C)   Whether or not the natural gas utility conducted business in such a manner that actual or expected revenues were shifted from the regulated entity to the non-regulated entity.

(D)   Whether or not the regulated entity offered terms, condition or rates for the provision of natural gas services to the affiliate that it refused to provide to other customers or whether such provision resulted in the affiliate having an unfair advantage.

(10)   Natural gas utilities must process all similar requests for natural gas services in the same manner and within the same period of time.

(11)   Natural gas utilities shall not provide leads to upstream affiliates and shall refrain from giving any appearance that the natural gas utility speaks on behalf of its affiliate(s). Nor shall the affiliate trade upon, promote or advertise its affiliation or suggest that it receives preferential treatment as a result of its affiliation. The use of a common corporate or parent holding company name shall not be a violation of this provision so long as the regulated utility and the affiliate entities can be distinguished.

(12)   Natural gas utilities, except for billing and collection services and customer service, or by order of the Commission, shall not share their customer list or related customer information with affiliates unless the information is simultaneously shared with non-affiliate entities.

(13)   The natural gas utility shall not communicate with any third party that any advantage may accrue to such third party in the use of the natural gas utility's upstream services as a result of that third party dealing with the upstream natural gas utility's affiliates unless the information is simultaneously shared with non-affiliated entities.

[Source: Added at 15 Ok Reg 2177, eff 7-1-98; Amended at 21 Ok Reg 2095, eff 7-1-04]