Mo. Code Regs. tit. 20 § 4240-80.017
Current through Register Vol. 49, No. 23, December 2, 2024
Section 20 CSR 4240-80.017 - HVAC Services Affiliate TransactionsPURPOSE: This rule prescribes the requirements for HVAC services affiliated entities and regulated heating companies when such regulated heating companies participate in affiliated transactions with an H VAC affiliated entity as set forth in sections 386.754, 386.756, 386.760, 386.762 and 386.764, RSMo by the General Assembly of the State of Missouri.
(1) Definitions. (A) Affiliated entity means any entity not regulated by the Public Service Commission which is owned, controlled by or under common control with a utility and is engaged in HVAC services.(B) Control (including the terms "controlling," "controlled by," and "common control") means the possession, directly or indirectly, of the power to direct, or to cause the direction of the management or policies of an entity, whether such power is exercised through one (1) or more intermediary entities, or alone, or in conjunction with, or pursuant to an agreement with, one (1) or more other entities, whether such power is exercised through a majority or minority ownership or voting of securities, common directors, officers or stockholders, voting trusts, holding trusts, affiliated entities, contract or any other direct or indirect means. The commission shall presume that the beneficial ownership of more than ten percent (10%) of voting securities or partnership interest of an entity confers control for purposes of this rule. This provision, however, shall not be construed to prohibit a regulated heating company from rebutting the presumption that its ownership interest in an entity confers control.(C) Fully distributed cost means a methodology that examines all costs of an enterprise in relation to all the goods and services that are produced. Fully distributed cost requires recognition of all costs incurred directly or indirectly used to produce a good or service. Costs are assigned either through a direct or allocated approach. Costs that cannot be directly assigned or indirectly allocated (e.g. general and administrative) must also be included in the fully distributed cost calculation through a general allocation.(D) HVAC services means the warranty, sale, lease, rental, installation, construction, modernization, retrofit, maintenance or repair of heating, ventilating and air conditioning (HVAC) equipment.(E) Heating company means a heating company as defined in section 386.020, RSMo, subject to commission regulation pursuant to Chapter 393, RSMo.(F) Utility contractor means a person, including an individual, corporation, firm, incorporated or unincorporated association or other business or legal entity, that contracts, whether in writing or not in writing, with a regulated heating company to engage in or assist any entity in engaging in HVAC services, but does not include employees of a regulated heating company.(2) A regulated heating company may not engage in HVAC services, except by an affiliated entity, or as provided in section (8) or (9) of this rule.(3) No affiliated entity or utility contractor may use any vehicles, service tools, instruments, employees, or any other regulated heating company assets, the cost of which are recoverable in the regulated rates for regulated heating company service, to engage in HVAC services unless the regulated heating company is compensated for the use of such assets at the fully distributed cost to the regulated heating company. (A) The determination of a regulated heating company's cost in this section is defined in subsection (1)(D) of this rule.(4) A regulated heating company may not use or allow any affiliated entity or utility contractor to use the name of such regulated heating company to engage in HVAC services unless the regulated heating company, affiliated entity or utility contractor discloses, in plain view and in bold type on the same page as the name is used on all advertisements or in plain audible language during all solicitations of such services, a disclaimer that states the services provided are not regulated by the commission.(5) A regulated heating company may not engage in or assist any affiliated entity or utility contractor in engaging in HVAC services in a manner which subsidizes the activities of such regulated heating company, affiliated entity or utility contractor to the extent of changing the rates or charges for the regulated heating company's services above or below the rates or charges that would be in effect if the regulated heating company were not engaged in or assisting any affiliated entity or utility contractor in engaging in such activities.(6) Any affiliated entities or utility contractors engaged in HVAC services shall maintain accounts, books and records separate and distinct from the regulated heating company.(7) The provisions of this rule shall apply to any affiliated entity or utility contractor engaged in HVAC services that is owned, controlled or under common control with a regulated heating company providing regulated services in the state of Missouri or any other state.(8) A regulated heating company engaging in HVAC services in the state of Missouri five (5) years prior to August 28, 1998, may continue providing, to existing as well as new customers, the same type of services as those provided by the regulated heating company five (5) years prior to August 28, 1998. (A) To qualify for this exemption, the regulated heating company shall file a pleading before the commission for approval.1. The commission may establish a case to determine if the regulated heating company qualifies for an exemption under this rule.(9) The provisions of this section shall not be construed to prohibit a regulated heating company from providing emergency service, providing any service required by law or providing a program pursuant to an existing tariff, rule or order of the commission.AUTHORITY: sections 386.760.1, RSMo Supp. 1998 and 393.140, RSMo 1994.* This rule originally filed as 4 CSR 240-80.017. Original rule filed Dec. 17, 1998, effective Aug. 30, 1999. Moved to 20 CSR 4240-80.017, effective Aug. 28, 2019.*Original authority: 386.760.1, RSMo 1998 and 393.140, RSMo 1939, amended 1949, 1967.