Section R14-2-1616. Code of Conduct

A.      If not previously filed, no later than 90 days after adoption of these Rules, each Affected Utility which plans to offer Non- competitive Services and which plans to offer Competitive Services through its competitive electric affiliate shall propose a Code of Conduct to prevent anti-competitive activities. Each Affected Utility that is an electric cooperative, that plans to offer Noncompetitive Services, and that is a member of any electric cooperative that plans to offer Competitive Services shall also submit a Code of Conduct to prevent anti-competi- tive activities. All Codes of Conduct shall be filed in Docket Control and be subject to Commission approval after a hear- ing.

B.       The Code of Conduct shall address the following subjects:

1.        Appropriate procedures to prevent cross subsidization between the Utility Distribution Company and any com- petitive affiliates, including but not limited to the mainte- nance of separate books, records, and accounts;

2.        Appropriate procedures to ensure that the Utility Distri- bution Company’s competitive affiliate does not have access to confidential utility information that is not also available to other market participants;

3.        Appropriate guidelines to limit the joint employment of personnel by both a Utility Distribution Company and its competitive affiliate;

4.        Appropriate guidelines to govern the use of the Utility Distribution Company’s name or logo by the Utility Dis- tribution Company’s competitive affiliate;

5.        Appropriate procedures to ensure that the Utility Distri- bution Company does not give its competitive affiliate any preferential treatment such that other market partici- pants are unfairly disadvantaged or discriminated against;

6.        Appropriate policies to eliminate joint advertising, joint marketing, or joint sales by a Utility Distribution Com- pany and its competitive affiliate;

7.        Appropriate procedures to govern transactions between a Utility Distribution Company and its competitive affili- ate; and

8.        Appropriate policies to prevent the Utility Distribution Company and its competitive affiliate from representing that customers will receive better service as a result of the affiliation.

9.        Complaints concerning violations of the Code of Conduct shall be processed under the procedures established in R14-2-212.

Historical Note

Adopted effective December 26, 1996, under an exemp- tion as determined by the Arizona Corporation Commis- sion (Supp. 96-4). Section R14-2-1616 repealed by emergency action; emergency new Section adopted by an emergency action effective August 10, 1998, pursuant to

A.R.S. § 41-1026, in effect for a maximum of 180 days (Supp. 98-3). Emergency amendment replaced by exempt

permanent amendment effective December 31, 1998 (Supp. 98-4). Former Section R14-2-1616 renumbered to R14-2-1615; new Section R14-2-1616 adopted by exempt rulemaking at 5 A.A.R. 3933, effective Septem- ber 24, 1999 (Supp. 99-3). Amended by exempt rulemak-

ing at 6 A.A.R. 4180, effective October 13, 2000 (Supp.

00-4).

Note

Editor’s Note: The Arizona Corporation Commission has determined that the following Section is exempt from the Attorney General approval provisions of the Arizona Administrative Proce- dure Act (A.R.S. § 41-1041) by a court order (State ex. rel. Corbin

v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App. 1992)).