(35) And under PUHCA
, the SEC had to give the green light to most utility stock offerings and mergers, among other transactions.
To begin, the notion of an ETC was a bit ridiculous in the first instance, because rather than just repeal PUHCA
entirely, Congress essentially decided to set up a paradigm where you needed more regulation at one agency (the FCC) just to be deregulated at another (the SEC).
regulated as utilities under the provisions of PUHCA
. (67) The EP Act of
GAO's survey of state utility commissions found that states' views varied on their current regulatory capacities to review utility mergers and acquisitions and oversee affiliate transactions; however many states reported a need for additional resources, such as staff and funding, to respond to changes in oversight after the repeal of PUHCA
For a detailed and helpful account of the Chenery litigation, PUHCA
(14) Congress passed the FPA and PUHCA
as part of a single piece of legislation in 1935.
Federal regulatory constraints on diversification by electric utilities date back to the Public Utility Holding Company Act of 1935 (PUHCA
), which was passed in part to address the abuses arising from self-dealing between utility and non-utility subsidiaries of holding companies across different states and jurisdictions.
In 1935, the federal government passed the Public Utility Holding Company Act ("PUHCA
"), (24) which required electric utility holding companies to register with the Securities and Exchange Commission ("SEC"), (25) and the Federal Power Act ("FPA"), (26) which gave the Federal Power Commission [the predecessor to the Federal Energy Regulatory Commission ("FERC")] authority to regulate the "transmission of electric energy in interstate commerce and the sale of such energy at wholesale in interstate commerce." (27) With this new authority, and as part of the New Deal, the federal government sought to promote growth in the industry in order to benefit both consumers and investors; "the so-called 'regulatory compact' between government and utilities was formed" to further this aim.
2095 is unchanged, repealing the Public Utility Holding Company Act (PUHCA
) and establishing mandatory standards for interstate transmission.
Risk exposures: Substantial debt load, restricted access to capital, potential for further downgrade of credit rating, price fluctuation, increased competition due to deregulation, changes in FERC, PURPA, PUHCA
, FPA and EPA regulations, availability of gas supplies for the full term of the facilities' power sales agreements
The Public Utility Holding Company Act of 1935 was passed to protect consumers from the complex holding company structures and cross-share ownerships of many of the electric and gas utilities in the 1920s.
* Antitrust Repeals the antitrust/consumer protection law such as Public Utility Holding Company Act of 1935 (PUHCA
) * Renewable Energy Requires utilities to generate 10 percent of their electricity from renewable energy sources by 2020.