Sec.16-245c-4. Unbundled generation

(a) If the applicant unbundled and separated all of its generation assets and generation-related operations by sale or transfer to an unrelated entity, or by transferring such assets and operations on a functional basis to one or more separate divisions of the applicant, it shall submit with its licensing application the following:

(1) A description of the process used by the applicant to unbundle and separate its generation assets and all generation-related operations and functions;

(2) Evidence that the unbundling and separation occurred, including, as applicable, documentation of sale or transfer to an unrelated entity, or of the transfer on a functional basis to one or more separate divisions, in which case the applicant shall demonstrate how the structural separation implemented safeguards against cross-subsidization, including the applicant's code of conduct established to ensure nondiscriminatory access and fair dealing between the municipal electric utility, the separate division to which generation assets and generation-related functions have been transferred, and electric suppliers;

(3) Evidence that the buyer or transferee in any sale or transfer related to unbundling and separation will preserve labor agreements in effect at the time of the sale or transfer; and

(4) Testimony or other evidence supporting the unbundling and separation as meeting the requirements of section 16-245c of the Connecticut General Statutes.

(b) If the applicant unbundled and separated all of its generation assets and generation-related operations by a measure other than sale or transfer to an unrelated entity, or transferral of such assets and operations on a functional basis to one or more separate divisions, it shall submit with its application the following:

(1) Evidence and testimony demonstrating that the unbundling method selected by the applicant was necessary due to the size of the applicant and its existing structure and operations;

(2) Evidence that the unbundling method selected by the applicant will preserve labor agreements in effect at the time of the unbundling; and

(3) The applicant's code of conduct that would protect against cross-subsidization of services and contain reasonable measures to prevent the applicant from favoring its electric generation services over those of an electric supplier.

(Adopted effective December 29, 1999)