Section 450.120  Transfer of Goods and Services

a)         Transactions between an electric utility and its affiliated interests shall not be allowed to subsidize the affiliated interests.

b)         In connection with an application for a certificate of service authority filed by an affiliated interest of an electric utility, pursuant to Section 16-115 of the Act, the affiliated interest shall provide a copy of a Commission approved services and facilities or affiliated interest agreement that explicitly addresses the cost allocation and valuation methodology to be applied to any transfer of goods and services:  between the electric utility and its affiliated interests in competition with ARES; between the utility and its other affiliated interests; and between the utility's other affiliated interests and its affiliated interests in competition with ARES. In the event that there is no Commission approved agreement addressing these issues, the applicant shall submit such an agreement for approval as part of its application.

c)         Costs associated with the transfer of goods and services between an electric utility and its affiliated interests, including affiliated interests in competition with ARES, shall be priced as specified in, and allocated pursuant to, the Commission approved services and facilities agreement or affiliated interests agreement presented in the affiliated ARES certification proceeding.  Any transfer of goods and services between an electric utility and its affiliated interests, including affiliated interests in competition with ARES, that is not explicitly addressed in a Commission approved services and facilities or affiliated interests agreement is prohibited unless the transfer has been otherwise specifically approved by the Commission pursuant to Section 7-101 of the Act or approval has been waived by statute or Commission rule.