§ 39-3-30 - Investigation and order as to transaction between affiliates.
SECTION 39-3-30
§ 39-3-30 Investigation and order as totransaction between affiliates. – The division shall have full power and authority to investigate any contract,arrangement, purchase, or sale, and if the division, after notice and hearing,shall find the contract, arrangement, purchase, or sale to be unjust orunreasonable, the division may make such reasonable order relating thereto asthe public good requires. In any such investigation the burden shall be on thepublic utility or affiliate to prove the reasonableness of any contract,arrangement, purchase, or sale with, from, or to an affiliate. If the publicutility shall fail to satisfy the division of the reasonableness of anycontract, arrangement, purchase, or sale, the division may disapprove the same,or disallow payments thereunder or such part of any payment as the divisionshall find to be unjust or unreasonable, or both disapprove and disallow asaforesaid. No payment disallowed by the division shall be capitalized orincluded as an operating cost of the public utility in the fixing of rates oras an asset in fixing a rate base. If, in any investigation, the public utilityor affiliate shall unreasonably refuse to comply with any request of thedivision for information with respect to relevant accounts and records, whetherof the public utility or any affiliate, any portion of which may be applicableto any transaction under investigation, so that such parts thereof as thedivision may deem material may be made part of the record, the refusal shalljustify the division in disapproving the transaction under investigation anddisallowing payments in pursuance thereof.