56-231.34:1 - Separation of regulated and unregulated businesses - Virginia Statutes

§ 56-231.34:1. Separation of regulated and unregulated businesses.

A. No cooperative that engages in a regulated utility service shall conductany unregulated business activity, other than traditional cooperativeactivities, except in or through one or more affiliates of such cooperative,provided that a cooperative that provides regulated utility services shallhave the right to offer and make unregulated sales of electric power to itsmembers within its certificated service territory. No such affiliates, formedto engage in any business that is not a regulated utility service, shallengage in regulated utility services.

B. The Commission shall promulgate rules and regulations, governing theconduct of the cooperatives, to promote effective and fair competitionbetween (i) affiliates of cooperatives that are engaged in businessactivities which are not regulated utility services and (ii) other personsengaged in the same or similar businesses. The rules and regulations shall beeffective by July 1, 2000, and shall include provisions:

1. Prohibiting cost-shifting or cross-subsidies between a cooperative and itsaffiliates;

2. Prohibiting anticompetitive behavior or self-dealing between a cooperativeand its affiliates;

3. Prohibiting a cooperative from engaging in discriminatory behavior towardsnonaffiliated entities; and

4. Establishing codes of conduct detailing permissible relations between acooperative and its affiliates. In establishing such codes, the Commissionshall consider, among other things, whether and, if so, under whatcircumstances and conditions (i) a cooperative may provide its affiliateswith customer lists or other customer information, sales leads, procurementadvice, joint promotions, and access to billing or mailing systems unlesssuch information or services are made available to third parties under thesame terms and conditions, (ii) the cooperative's name, logos or trademarksmay be used in promotional, advertising or sales activities conducted by itsaffiliates, and (iii) the cooperative's vehicles, equipment, office space andemployees may be used by its affiliates.

C. Nothing in this article shall be deemed to abrogate or modify theCommission's authority under Chapter 4 (§ 56-76 et seq.) of this title.

(1999, c. 874; 2000, cc. 944, 999.)