12.0108 Transfer of existing utility-Property valuation-ASG capital contributions and loans.

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(a) At a date fixed by the board of directors, the ASG shall transfer to the authority the right to operate all items of property, including construction in progress, equi6rnent and machinery used in connection with the then existing electric utility operation of the government. Property jointly, used for electric utility and governmental nonutility functions shall be equitably allocated between the government and the authority, provided that the allocation assures the continuing efficient functioning of the electrical generation, transmission, and distribution functions of the government. In the event of dispute, the allocation is determined by the Governor.

(b) The property accounts for the authority are valued for ratemaking purposes at thc depreciated acquisition cost of the property as of the date of transfer, and shall bc included in the rate base of thc authority. Future capital contributions to the authority from the government shall be by separate authorization and appropriation.

(c) Advances made for the operations of the authority from the general fund of the government shall be treated as loans and riot as part of the permanent capital. Such loans shall be repaid to the government at rates of interest specified at the time the loans are made.

History: Rule 12-81 (Ex. Ord. 4-1981), eff 20 Aug 81, § 8.