South Dakota § 49-34A-107 Separation and protection of assets of gas and electric utilities.

South Dakota Statutes

§ 49-34A-107 — Separation and protection of assets of gas and electric utilities.

South Dakota·Title 49 PUBLIC UTILITIES AND CARRIERS·Ch. 49-32A GAS AND ELECTRIC UTILITIES REGULATION

Unless the commission otherwise orders:

(1)A public utility shall hold all owned or operated public utility assets in one or more legal entities separate and segregated from the legal entities of any nonutility subsidiaries or affiliates;

(2)All secured debt of a public utility may be used only for public utility purposes. If more than twenty percent of a public utility's secured assets are divested, the debt shall follow the assets or be retired in the same proportion as the divested assets; and (3) No public utility may extend credit to any of its nonutility subsidiaries or affiliates, pledge the assets of the public utility as collateral for the use or benefit of any of its nonutility subsidiaries or affiliates, or guarantee any debt or obligations of any of its nonutility su

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Unless the commission otherwise orders: (1) A public utility shall hold all owned or operated public utility assets in one or more legal entities separate and segregated from the legal entities of any nonutility subsidiaries or affiliates; (2) All secured debt of a public utility may be used only for public utility purposes. If more than twenty percent of a public utility's secured assets are divested, the debt shall follow the assets or be retired in the same proportion as the divested assets; and (3) No public utility may extend credit to any of its nonutility subsidiaries or affiliates, pledge the assets of the public utility as collateral for the use or benefit of any of its nonutility subsidiaries or affiliates, or guarantee any debt or obligations of any of its nonutility subsidiaries or affiliates. Any public utility which does not comply with the provisions of this section shall have two years within which to become compliant. Notwithstanding any provision of this section, after notice and opportunity for hearing, the commission may grant a waiver of any provision of this section if the commission finds a waiver would not pose an undue risk to the operation of the public utility and is in the public interest.

South Dakota § 49-34A-107 (Separation and protection of assets of gas and electric utilities.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.