Sec.16-47a-9. Record keeping requirements

(a) Separate books and records. A gas company shall maintain its books of account and records completely separate and apart from those of its affiliates in a manner that will allow clear and easy affiliate identification on an ongoing basis.

(b) Cost Allocation Manual (CAM).

(1) Each gas company shall maintain a CAM which shall govern the assignment and allocation of direct, indirect, and other costs associated with goods and services provided by a gas company to its affiliates, or provided by an affiliate to a gas company, or shared between a gas company and any of its affiliates as permitted under section 16-47a-5 of this Gas Code of Conduct. Each CAM shall include, at minimum, the following:

(A) An organization chart of the holding company, depicting all affiliates and regulated entities;

(B) A description of all assets, goods and services (or classes relating thereto) provided to and from, or shared between, the gas company and each of its affiliates; and

(C) A description of the cost allocators and methods used by the gas company and by its affiliates related to all assets, goods or services transferred or shared between the gas company and its affiliates;

(2) A gas company shall make its CAMs available to its internal auditors for periodic review of the allocation policy and process;

(3) Each CAM shall be updated annually. No later than March 31 of each year, each gas company shall file with the Department (A) an updated CAM to be in effect for the current year, and (B) a redlined version of the updated CAM, or a report identifying any and all changes or revisions that had been made to the updated CAM;

(4) Each gas company shall review allocation factors annually, and the result of such review shall be reflected in the CAMs filed pursuant to subdivision (3) of this subsection;

(5) The Department may, at any time, order an independent audit or review of a CAM. The cost of any such independent audit or review shall be shared between the gas company and its affiliates consistent with the allocation of similar common costs. Any audit or review of a CAM shall not otherwise limit or restrict the authority of the Department to have access to the books and records of and audit the operations of the gas company; and

(6) Any entity required to provide access to its books and records may request the Department, consistent with the Department's procedures and practice, for appropriate protective orders for competitively sensitive information.

(c) Shared personnel and facilities. A gas company shall document each occasion that one of its employees transfers to an affiliate and each occasion that an employee of one of its affiliates transfers to the gas company. Such documentation shall include a brief description of the employee's position and responsibility before and after the transfer. A gas company shall maintain up to date books, accounts and records which (1) show all costs of shared facilities and personnel, which shall be fully and transparently allocated between a gas company and its affiliates, and (2) identify all costs incurred on behalf of an affiliate.

(d) List of Affiliates. Each gas company shall maintain a complete and accurate list of all of its affiliates. This list shall include the name and address of each affiliate and the name and contact information of at least one officer of each affiliate. A gas company shall file this list with the Department no later than March 31 of each year and shall make this list available to the public upon request.

(e) Books and Records of Affiliates. Each gas company shall ensure that its parent and all other affiliates maintain books and records that include, at a minimum, the following information regarding affiliate transactions:

(1) Documentation of the cost associated with affiliate transactions that are incurred by the parent or affiliated entity and charged to the gas company;

(2) Documentation of the methods used to allocate and/or share costs between affiliated entities, including other jurisdictions and/or corporate divisions;

(3) Description of costs that are not subject to allocation to affiliate transactions and documentation supporting the nonassignment of these costs to affiliate transactions;

(4) Description of the types of services that corporate divisions and/or other centralized functions provided to any affiliated entity or division accessing the gas company's contracted services or facilities;

(5) Names and job descriptions of the employees from the gas company that transferred to an unregulated affiliated entity; and

(6) Policies regarding the availability of customer information and the access to services available to unregulated affiliated entities desiring use of the gas company's contracts and facilities.

(f) Access to Affiliate Records.

(1) The Department shall have complete access to all applicable affiliate records, consistent with section 16-47a of the Connecticut General Statutes, necessary to ensure that cost allocations and affiliate transactions are conducted in accordance with the Gas Code of Conduct and to evaluate whether subsidization exists. In accordance with and to the extent permitted under section 16-8c and section 16-47a of the Connecticut General Statutes, the Department may (A) review, inspect and audit books, accounts and other records kept by a gas company or affiliates, or (B) investigate the operations of a gas company or an affiliate and their relationship to each other, for the sole purpose of ensuring compliance with the Gas Code of Conduct. The Department or any auditors acting on behalf of the Department, not the audited gas company or affiliate, shall determine what information is relevant for a particular audit objective.

(2) If such affiliate records cannot be reasonably made available to the Department and OCC staff in the state of Connecticut, then upon request of the Department or OCC staff, the appropriate gas company or affiliate shall reimburse the Department or OCC for travel expenses reasonably incurred.

(g) Log of Emergency Actions and Communications. Each gas company shall maintain a log of all actions or communications made pursuant to section 16-47a(g) of the Connecticut General Statutes or section 16-47a-2(f) of this Gas Code of Conduct.

(h) Record Retention. Records required under the Gas Code of Conduct shall be maintained by each gas company for a period of not less than 10 years.

(Adopted effective February 8, 2011)