56-231.50:1 - Separation of regulated and unregulated businesses - Virginia Statutes

§ 56-231.50:1. 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.No such affiliates, formed to engage in any business that is not a regulatedutility service, shall engage in regulated utility services.

B. The Commission shall promulgate rules and regulations to promote effectiveand fair competition between (i) affiliates of cooperatives that are engagedin business activities which are not regulated utility services and (ii)other persons engaged in the same or similar businesses. The rules andregulations shall be effective 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.)