§ 797 Utility Affiliate Transaction Audits

Key Takeaways

•Big water, electric, gas, or phone companies must check their money deals with other companies they own or control.
•The government can make these companies hire outside experts to check these deals.
•The government can also do the checking themselves if they want.

Example

A big electric company buys a lot of equipment from a smaller company it owns.

The government can make the electric company hire someone outside to check if the price they paid was fair and not too high.

The commission shall periodically audit, or direct that an independent audit be periodically conducted for, all significant transactions, as specified by the commission, between a water corporation with more than 2,000 service connections, or an electrical, gas, or telephone corporation, and every subsidiary or affiliate of, or corporation holding a controlling interest in, that water, electrical, gas, or telephone corporation. The commission, in this connection, may utilize the services of an independent auditor, who shall be selected and supervised by the commission, or may direct a water corporation with more than 2,000 service connections, or an electrical, gas, or telephone corporation, to utilize the services of an independent auditor, who shall be selected and supervised by that water, electrical, gas, or telephone corporation. Nothing in this section prohibits the commission from auditing any transaction between a water corporation with more than 2,000 service connections, or an electrical, gas, or telephone corporation, and any subsidiary or affiliate of, or corporation holding a controlling interest in, that water, electrical, gas, or telephone corporation, as otherwise permitted or required by law. (Amended by Stats. 2012, Ch. 224, Sec. 4. (SB 1364) Effective January 1, 2013.)

Key Takeaways

•Big water, electric, gas, or phone companies must check their money deals with other companies they own or control.
•The government can make these companies hire outside experts to check these deals.
•The government can also do the checking themselves if they want.

Example

A big electric company buys a lot of equipment from a smaller company it owns.

The government can make the electric company hire someone outside to check if the price they paid was fair and not too high.

Key Takeaways

Example

Key Terms

References

§ 797 Utility Affiliate Transaction Audits

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References