[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR358.4]

[Page 865-867]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 358_STANDARDS OF CONDUCT--Table of Contents
 
Sec. 358.4  Independent functioning.

    (a) Separation of functions. (1) Except in emergency circumstances 
affecting system reliability, the transmission function employees of the 
Transmission Provider must function independently of the Transmission 
Provider's Marketing or Energy Affiliates' employees.
    (2) Notwithstanding any other provisions in this section, in 
emergency circumstances affecting system reliability, a Transmission 
Provider may take whatever steps are necessary to keep the system in 
operation. Transmission Providers must report to the Commission and post 
on the OASIS or Internet website, as applicable, each emergency that 
resulted in any deviation from the standards of conduct, within 24 hours 
of such deviation.
    (3) The Transmission Provider is prohibited from permitting the 
employees of its Marketing or Energy Affiliates from:
    (i) Conducting transmission system operations or reliability 
functions; and
    (ii) Having access to the system control center or similar 
facilities used for transmission operations or reliability functions 
that differs in any way from the access available to other transmission 
customers.
    (4) Transmission Providers are permitted to share support employees 
and field and maintenance employees with their Marketing and Energy 
Affiliates.
    (b) Identifying affiliates on the public Internet. (1) A 
Transmission Provider

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must post the names and addresses of its sales and marketing units and 
Energy Affiliates on its OASIS or Internet Web site.
    (2) A Transmission Provider must post on its OASIS or Internet Web 
site, as applicable, a complete list of the facilities shared by the 
Transmission Provider and its marketing or sales units or any Energy 
Affiliates, including the types of facilities shared and their 
addresses.
    (3) A Transmission Provider must post comprehensive organizational 
charts showing:
    (i) The organizational structure of the parent corporation with the 
relative position in the corporate structure of the Transmission 
Provider, marketing and sales units and any Energy Affiliates;
    (ii) For the Transmission Provider, the business units, job titles 
and descriptions, and chain of command for all positions, including 
officers and directors, with the exception of clerical, maintenance, and 
field positions. The job titles and descriptions must include the 
employee's title, the employee's duties, whether the employee is 
involved in transmission or sales, and the name of the supervisory 
employees who manage non-clerical employees involved in transmission or 
sales.
    (iii) For all employees who are engaged in transmission functions 
for the Transmission Provider and marketing or sales functions or who 
are engaged in transmission functions for the Transmission Provider and 
are employed by any of the Energy Affiliates, the Transmission Provider 
must post the name of the business unit within the marketing or sales 
unit or the Energy Affiliate, the organizational structure in which the 
employee is located, the employee's name, job title and job description 
in the marketing or sales unit or Energy Affiliate, and the employee's 
position within the chain of command of the marketing or sales unit or 
Energy Affiliate.
    (iv) The Transmission Provider must update the information on its 
OASIS or Internet website, as applicable, required by Sec. Sec. 
358.4(1), (2) and (3) within seven business days of any change, and post 
the date on which the information was updated.
    (v) The Transmission Provider must post information concerning 
potential merger partners as affiliates within seven days after the 
merger is announced.
    (vi) All OASIS or Internet website postings required by part 358 
must comply, as applicable, with the requirements of Sec. 37.3 or 
Sec. Sec. 284.12(a) and (c)(3)(v) of this chapter.
    (c) Transfers. Employees of the Transmission Provider, marketing or 
sales unit or Energy Affiliates are not precluded from transferring 
among such functions as long as such transfer is not used as a means to 
circumvent the standards of conduct. Notices of any employee transfers 
must be posted on the OASIS or Internet website, as applicable. The 
information to be posted must include: the name of the transferring 
employee, the respective titles held while performing each function 
(i.e., on behalf of the Transmission Provider, Marketing Function or 
Energy Affiliate), and the effective date of the transfer. The 
information posted under this section must remain on the OASIS or 
Internet website, as applicable, for 90 days.
    (d) Books and records. A Transmission Provider must maintain its 
books of account and records (as prescribed under parts 101, 125, 201 
and 225 of this chapter) separately from those of its Energy Affiliates 
and these must be available for Commission inspections.
    (e) Written procedures. (1) By February 9, 2004, each Transmission 
Provider is required to file with the Commission and post on the OASIS 
or Internet website a plan and schedule for implementing the standards 
of conduct.
    (2) Each Transmission Provider must be in full compliance with the 
standards of conduct by June 1, 2004.
    (3) The Transmission Provider must post on the OASIS or Internet 
website, current written procedures implementing the standards of 
conduct in such detail as will enable customers and the Commission to 
determine that the Transmission Provider is in compliance with the 
requirements of this section by June 1, 2004 or within 30

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days of becoming subject to the requirements of part 358.
    (4) Transmission Providers will distribute the written procedures to 
all Transmission Provider employees and employees of the Marketing and 
Energy Affiliates.
    (5) Transmission Providers shall require all of their employees to 
attend training and sign an affidavit certifying that they have been 
trained regarding the standards of conduct requirements.
    (6) Transmission Providers are required to designate a Chief 
Compliance Officer who will be responsible for standards of conduct 
compliance.