N.J. Admin. Code § 14:4-4.4

Current through Register Vol. 56, No. 19, October 7, 2024

Section 14:4-4.4 - Access to information

(a) An electric or gas public utility or its public utility holding company system shall, upon request, provide the Board and/or Board staff with full and timely access to any books and records, correspondence, memoranda, contracts, or documents containing information relating to the electric or gas public utility's interaction with:

1. Its public utility holding company system; or

2. Any other company.

(b) An electric or gas public utility and its public utility holding company system shall, upon request, make available to the Board and/or Board staff all information that the electric or gas public utility or its public utility holding company system files with the Federal Energy Regulatory Commission (FERC) with regard to merger reviews, service agreements, cost allocations, or any other subject matter that the Board and/or Board staff determines is necessary to evaluate an electric or gas public utility's ability to provide safe, adequate and proper service at just and reasonable rates.

(c) Written notice shall be given to Board staff within 10 business days if an electric or gas public utility or its public utility holding company receives notice of a decision by FERC or another Federal or state agency to perform any investigation or audit of:

1. The electric or gas public utility;

2. Any part of its public utility holding company system; or

3. A party with which the electric or gas public utility has a material transactional relationship.

(d) An electric or gas public utility or its public utility holding company shall provide copies to the Board and Board staff of any report and/or document that:

1. Results from the investigation or audit described at (c) above; and

2. Could reasonably be expected to have a material impact on the financial condition or operations of the electric or gas public utility or its public utility holding company system.

(e) The public utility or public utility holding company system shall provide the report and/or document described in (d) above to the Board no later than 10 business days after the issuance of the report and/or document, and shall include an executive summary that highlights the findings and recommendations. A description of the investigation and/or final audit report appearing in a transactional, current or periodic filing with the Securities and Exchange Commission (SEC) under the Securities Act of 1933 or the Securities Exchange Act of 1934, will satisfy the requirement of an executive summary. If the Board and/or Board staff request additional material, the electric or gas public utility or public utility holding company system shall supply the additional material within 10 days after such a request.

(f) Upon reasonable notice, an electric or gas public utility shall provide the Board and/or Board staff with access to its Federal income tax returns, including access in its New Jersey office to complete copies of any consolidated Federal income tax filings that include the electric or gas public utility.

(g) In cases where the electric or gas public utility is included in a consolidated Federal income tax filing, the electric or gas public utility may elect to comply with (f) above by providing a summary schedule in lieu of providing the complete consolidated Federal income tax filings. However, if the electric or gas public utility elects to provide the summary schedule, the electric or gas public utility shall also provide the pages from the consolidated Federal income tax return from which the data on this schedule is derived. The electric or gas public utility shall provide this information within 10 business days after a Board and/or Board staff request, or within such other period of time as may be agreed to by the Board and/or Board staff.

(h) Any summary schedule submitted under (g) above shall include all of the following:

1. A summary of the actual consolidated income tax filings of the public utility holding company for each of the past 10 years (including estimates for the most recent tax year if it has not yet been filed); and

2. All of the following information by year:

i. The name of the public utility holding company that filed the consolidated tax filing and the name of each subsidiary included in the consolidated tax return (indicate by each name whether or not the entity is an electric or gas public utility or a utility certified as such in another state);

ii. The taxable income/(loss) shown separately for the public utility holding company and for each subsidiary;

iii. The taxable income/(loss) for the electric or gas public utility in total and broken down by electric operations and gas operations if the electric or gas public utility has combined electric and gas operations;

iv. The total consolidated taxable income;

v. The Federal income tax rate;

vi. The consolidated Federal income tax liability; and

vii. The alternative minimum tax payment, if any.

(i) Any electric or gas public utility or its public utility holding company system required to file a Form 60 with FERC shall provide to the Board a copy of such form simultaneously with its filing with FERC.

(j) If an electric or gas public utility has a service agreement with a subsidiary of its public utility holding company and is exempt from filing a Form 60 with FERC, the electric or gas public utility or public utility holding company system shall make an annual filing with the Board no later than May 1 of each year. The filing shall include:

1. A comparative income statement and balance sheet for the subsidiary;

2. A schedule and analysis of billings to the public utility and all other subsidiaries (similar to FERC Form 60, Schedules XVI, XVII and XVIII);

3. Allocation methodologies;

4. Current year plan factors compared with previous year plan factors and variances; and

5. An organizational chart for the subsidiary.

(k) If an electric or gas public utility or its public utility holding company system does not have a service agreement with a subsidiary, but has an agreement to share services with another entity, the public utility or public utility holding company system shall make an annual filing with the Board no later than May 1 of each year. The filing shall include:

1. An analysis of billings for each shared service; and

2. An analysis comparing the direct and indirect charges for subsidiaries and non-subsidiaries.

(l) The Board and/or Board staff may require any public utility or public utility holding company system to keep any record or document that the Board and/or Board staff determines is necessary to enable the Board and/or Board staff to evaluate a public utility's compliance with this subchapter or the Board's orders, policies, and rules.

N.J. Admin. Code § 14:4-4.4

New Rule, R.2009 d.110, effective 4/6/2009.
See: 40 N.J.R. 1616(a), 41 N.J.R. 1500(a).
Recodified from N.J.A.C. 14:4-4A.4 and amended by R.2012 d.091, effective 5/7/2012.
See: 43 N.J.R. 1150(a), 44 N.J.R. 1534(a).
In the introductory paragraph of (c), substituted "Written notice" for "Notice" and "Board staff" for "the Board", and deleted "system" following "company"; and rewrote (d).