(1) An electric utility wishing to transfer no cost allowances to the compliance account of an electrical generating facility or federal power marketing administration may submit a request to ecology asking for the transfer and providing the following information:

(a) The electric utility's holding account number;

(b) The compliance account number of the federal power marketing administration or the electrical generating facility;

(c) The quantity and vintage of no cost allowances to be transferred;

(d) The relationship between the electric utility and the federal power marketing administration or electric generating facility.

(2) Ecology may transfer the allowances only if:

(a) The electric generating facility is operated by the electric utility; or

(b) The electric utility has an agreement to purchase imported electricity or a power purchase agreement, including a custom product contract from the federal power marketing administration or the electric generating facility.

(c) The transfer will not violate the federal power marketing administration's or the electrical generator's holding limit.