<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 49-34A-107 - Separation and protection of assets of gas and electric utilities. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2070792Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2070792SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070792CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2070792Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2070792DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2070792Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2070792Normal-000002 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2070792000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070792SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070792SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2070792Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=49-34A-107"><span class="s2070792SENU">49-34A-107</span></a><span xml:space="preserve" class="s2070792SENU">. </span><span class="s2070792CL">Separation and protection of assets of gas and electric utilities.</span></p><p dir="ltr" class="s2070792Normal-000000"><span class="s2070792DefaultParagraphFont">Unless the commission otherwise orders:</span></p><p dir="ltr" class="s2070792Normal-000001"><span class="s2070792DefaultParagraphFont">(1)    A public utility shall hold all owned or operated public utility assets in one or more legal entities separate and segregated from the legal entities of any nonutility subsidiaries or affiliates;</span></p><p dir="ltr" class="s2070792Normal-000001"><span class="s2070792DefaultParagraphFont">(2)    All secured debt of a public utility may be used only for public utility purposes. If more than twenty percent of a public utility's secured assets are divested, the debt shall follow the assets or be retired in the same proportion as the divested assets; and</span></p><p dir="ltr" class="s2070792Normal-000001"><span class="s2070792DefaultParagraphFont">(3)    No public utility may extend credit to any of its nonutility subsidiaries or affiliates, pledge the assets of the public utility as collateral for the use or benefit of any of its nonutility subsidiaries or affiliates, or guarantee any debt or obligations of any of its nonutility subsidiaries or affiliates.</span></p><p dir="ltr" class="s2070792Normal-000002"><span class="s2070792DefaultParagraphFont">Any public utility which does not comply with the provisions of this section shall have two years within which to become compliant. Notwithstanding any provision of this section, after notice and opportunity for hearing, the commission may grant a waiver of any provision of this section if the commission finds a waiver would not pose an undue risk to the operation of the public utility and is in the public interest.</span></p><p dir="ltr" class="s2070792Normal"><span xml:space="preserve" class="s2070792000003"> </span></p><p dir="ltr" class="s2070792Normal"><span class="s2070792SCL">Source:</span><span xml:space="preserve" class="s2070792SCL-000004"> SL 2008, ch 245, § 1.</span></p></div></body></html>