Transfers, Controlling Interest, and Mergers

(a)A utility seeking authority to do any of the following shall file an application pursuant to this rule: transfer a certificate of public convenience and necessity; transfer or obtain a controlling interest in a utility, whether the transfer of control is effected by the transfer of assets, by the transfer of stock, by merger or by other form of business combination; or transfer assets subject to the jurisdiction of the Commission outside the normal course of business. A utility cannot transfer a certificate of public convenience and necessity; transfer or obtain a controlling interest in any utility; or transfer assets outside the normal course of business without authority from the Commission.#

(b)An application to transfer a certificate of public convenience and necessity, to transfer or obtain a controlling interest in a utility, or to transfer assets subject to the jurisdiction of the Commission shall include, in the following order and specifically identified, the following information, either in the application or in appropriately identified attachments:#

(I)the information required in paragraphs 4002(b) and 4002(c), as pertinent to each party to the transaction;#

(II)a statement showing accounting entries, under the Uniform System of Accounts, including any plant acquisition adjustment, gain, or loss proposed on the books by each party before and after the transaction which is the subject of the application;#

(III)any agreement for merger, sales agreement, or contract of sale pertinent to the transaction which is the subject of the application;#

(IV)all facts showing that the transaction which is the subject of the application is not contrary to the public interest;#

(V)an evaluation of the benefits and detriments to the customers of each party and to all other persons who will be affected by the transaction which is the subject of the application; and.#

(VI)a comparison of the kinds and costs of service rendered before and after the transaction which is the subject of the application.#

(c)An application to transfer a certificate of public convenience and necessity, an application to transfer assets subject to the jurisdiction of the Commission, or an application to transfer or obtain control of the utility may be made by joint or separate application of the transferor and the transferee.#

(d)When control of a utility is transferred to another entity, or the utility's name is changed, the utility which will afterwards operate under the certificate of public convenience and necessity shall file with the Commission a tariff adoption notice, shall post the tariff adoption notice in a prominent public place in each local office and principal place of business of the utility, and shall have the tariff adoption notice available for public inspection at each local office and principal place of business. Adoption notice forms are available from the Commission. The tariff adoption notice shall contain all of the following information:#

(I)the name, phone number, and complete address of the adopting utility;#

(II)the name of the previous utility;#

(III)the number of the tariff adopted and the description or title of the tariff adopted;#

(IV)the number of the tariff after adoption and the description or title of the tariff after adoption; and#

(V)unless otherwise requested by the applying utility in its application, a statement that the adopting utility is adopting as its own all rates, rules, terms, conditions, agreements, concurrences, instruments, and all other provisions that have been filed or adopted by the previous utility.#