Sec.16-47a-1. Definitions. Short title. Purpose. Principles

(a) Definitions. As used in sections 16-47a-1 to 16-47a-12, inclusive, of the Regulations of Connecticut State Agencies:

(1) "Affiliate" means "affiliate" as defined in § 16-47a(a) of the Connecticut General Statutes;

(2) "Centralized service company" or "CSC" means (A) an affiliate of a gas company that provides shared corporate support services, as defined in subdivision (14) of this subsection, on behalf of a gas company, or (B) an affiliate of a gas company whose designated primary corporate purpose is to provide shared corporate support services;

(3) "Customer information" means any information or data specific to a customer, including, but not limited to, customer personal information such as customer name, address, contact information and account number, gas consumption, load profile, billing history, or credit history, that a gas company acquires or develops in the course of its provision of utility services;

(4) "Department" means the Department of Public Utility Control or its successor;

(5) "Employee" or "Personnel" means an officer, director, worker, agent, representative, consultant, independent contractor or any other person performing various duties or obligations on behalf of or for a gas company or its affiliate;

(6) "FERC" means Federal Energy Regulatory Commission or its successor;

(7) "Fully allocated cost" means the sum of fixed and variable direct costs plus an appropriate share of fixed and variable indirect costs;

(8) "Gas assets and services" include, but are not limited to, any gas commodities, pipeline transportation contracts, local distribution infrastructure and services, or gas storage contracts;

(9) "Gas company" means "gas company" as defined in section 16-1 of the Connecticut General Statutes;

(10) "Gas marketer" means (A) any person registered to sell natural gas pursuant to section 16-258a of the Connecticut General Statutes, including any agents or representatives of such person, or (B) any person or aggregator or other entity, including any agents or representatives of such person, aggregator or entity, other than a "gas company" as defined in subdivision (9) of this subsection, that (i) engages in or is involved in natural gas transmission transactions; (ii) manages or controls natural gas transmission capacity of a natural gas transmission provider; (iii) buys, sells, trades or administers natural gas or any natural gas assets or services; or (iv) engages in financial transactions relating to the sale or transmission of natural gas or any gas assets or services;

(11) "Indirect costs" means costs of a particular good or service that cannot be directly identified, including but not limited to, overhead costs, administrative and general, and taxes;

(12) "Money pool" means a financial arrangement established by a parent company or holding company of a regulated utility, including a gas company, and administered by such parent company or a centralized service company affiliate, to (A) establish a general purpose fund into which a member thereof may lend or borrow funds through the money pool on a short-term basis to or from affiliates, and/or (B) facilitate favorable interest rates for short-term borrowings or lending by affiliates who are members of the money pool;

(13) "OCC" means the Office of Consumer Counsel or its successor;

(14) "Shared corporate support services" means services shared between or among a gas company, its parent holding company or an affiliate or division, such as human resources, procurement, information technology, regulatory services, administrative services, real estate services including property management, legal services, accounting services, environmental services, research and development, internal audit, community relations, corporate communications, financial services, financial planning and management support, customer service, billing and collection services, and corporate services;

(15) "Subsidization" means the recovery of costs from one business unit or company that are attributable to another; and

(16) "Unregulated" means not regulated by the Department or by any other state or federal agency.

(b) Short Title. Purpose. The short title for sections 16-47a-1 to 16-47a-12, inclusive, of the Regulations of Connecticut State Agencies shall be the "Gas Code of Conduct." The Gas Code of Conduct, enacted pursuant to section 16-47a of the Connecticut General Statutes, set forth the standard of conduct for transactions, direct or indirect, between gas companies and their affiliates. The purpose of these regulations is to promote competitive markets and ensure that a gas company does not subsidize or provide an unauthorized benefit to its affiliates. The goal of the Gas Code of Conduct is to prevent:

(1) Gas ratepayers paying for activities that do not benefit them or making payments that are disproportionate to the benefits received;

(2) Profits being shifted from a gas company to its unregulated affiliates either by shifting costs to the gas company or by keeping the gas company out of potentially profitable market segments; and

(3) Transactions between a gas company and its affiliates where the gas company either pays excessive charges for assets, goods or services received or receives insufficient compensation for assets, goods or services provided.

(c) Principles. The following principles should be used whenever assets, goods or services are provided between a gas company and its affiliates:

(1) To the maximum extent practicable, in consideration of administrative costs, each gas company and each affiliate shall collect and classify costs on a direct basis for each asset, good or service provided;

(2) To the extent possible, all shared costs between a gas company and its affiliates should be traceable on the books of the gas company to the applicable account cited within the Uniform System of Accounts, and documentation shall be made available upon request to the Department or other appropriate regulatory authorities regarding transactions between a gas company and its affiliates;

(3) The allocation methods shall apply to the gas company's affiliates in order to prevent subsidization from, and ensure equitable cost sharing among the gas company and its affiliates;

(4) Each gas company and each affiliate shall spread indirect costs, including the allocated costs of shared services, to the goods or services to which they relate using relevant cost allocators; and

((5))

(Adopted effective February 8, 2011)