Repeal of public utility holding company act of 1935. One of 18 the many requirements under puhca 1935 was to form a service company and to 19 transfer employees that perform common functions for black hills corporations. The public utility holding company act of 1935 puhca, also known as the wheelerrayburn act, was a us federal law giving the securities and exchange commission authority to regulate, license, and break up electric utility holding companies. Specifically, the public utility holding company act requires utility companies to restrict their businesses to either a single state or to a small, manageable geographic area in order to be subject to state regulations. This comment recounts the historical events leading up to the passage of the public utility holding company act of 1935, as well as postenactment efforts to reform the legislation. Public utility holding company act limited businesses from making a monopoly because if a business has a monopoly, they can regulate the prices federal securities act.
Public utility holding company act of 1935 federal. Public utility holding company act of 1935 a law that was passed by the united states congress to facilitate regulation of electric utilities, by either limiting their operations to a single state, and thus subjecting them to effective state regulation, or forcing divestitures so that each became a single integrated system serving a limited. The enactment of the public utility holding company act of 1935 49 stat. Public utility holding company act of 1935 references in brackets o. Search, browse and learn about the federal register. Implementation of section 34a1 of the public utility holding company act of 1935, as added by section 103 of the telecommunications act of 1996. The public utility holding company act of 1935 defines specifically what a public utility holding company is. This report provides background information on puhca, including its history and impact. While this assertion is a matter of opinion and open to interpretation, it is a fact that this piece of new deal legislation presents an interesting case study in.
The public utility holding company act of 1935 puhca was passed during the great depression in response to the failure of a number ofutility holding companies and subsequent investor losses. The public utility holding company act puhca of 1935 is the only law that prevents utility holding companies from subsidizing unregulated business activities from profits obtained from their regulated business activities and captive customers. The committee also received special reports from the securities and exchange commission on its study of investment trusts and investment companies under section 30 of the public utility holding company act of 1935 76af11, 77af15. C a public utility holding company registered under the public utility holding company act of 1935 or a subsidiary of such a registered holding company within the meaning of that act. It limited holding company operations to a single state, thus subjecting them to effective state regulation. Filing under the public utility holding company act of. Click here to start a new topic please sign and date your posts by typing four tildes new to wikipedia. There are ten registered electric public utility holding companies, serving approximately 49 million households in 30 states. Public utility holding company act of 1935 legislation in the united states limiting the. In relevant part, it repeals the public utility holding company act of 1935 puhca 1935 \2\ and enacts the public utility holding company act of 2005 puhca 2005,\3\ which, with one exception not relevant here, will become effective six months from the date of enactment february 8, 2006. Be it enacted by the senate and house of representatives of the united states of america in congress assembled, that this act may be cited as the public utility act of 1935. Specifically, the public utility holding company act requires utility companies to restrict their businesses to either a single state or to a small, manageable geographic area in order to be subject to. The broad authority of the securities and exchange commission under puhca 1935 to regulate public utility holding companies is replaced.
Forms are filed electronically via edgar unless confidential treatment is. For related information on electricity restructuring, see the crs electronic briefing book. Public utility holding company act of 1935etc federal. Filings under the public utility holding company act of 1935. A holding company is one that owns stock in, and supervises management of, other companies. Public utility holding company act of 1935 financial. Congress passed the public utility holding company act of 1935 puhca or the act to protect consumers and investors from abuses by holding companies with interests in gas and electric utilities. Federal legislation that regulates public utility holding companies by requiring that certain reports and major company decisions follow regulations handed down by the securities and exchange commission and the federal government.
Code part d repeal of public utility holding company. Legislation in the united states limiting the activities of utility companies such as electric companies. The public utility holding company act of 1935 puhca, which is administered by the securities and exchange commission sec, subjects public utility holding companies to federal. Direct testimony and exhibits jeff berzina before the south.
Time to repeal the public utility holding company act. Filings under the public utility holding company act of. Public utility holding company act financial definition of. The public utility holding company act of 1935 puhca, 1 also known as the wheelerrayburn act, was a law that was passed by the united states congress to facilitate regulation of electric utilities, by either limiting their operations to a single state, and thus subjecting them to effective state regulation, or forcing divestitures so that each became a single integrated system serving a. Public utility holding company act of 1935 public utility holding companies sec file no. Public utility holding company act of 1935 wikipedia. Any company which directly or indirectly owns, controls, or holds with power to vote, 10 per cen tum or more of the out standing voting securities of a public utility holding company or of a company which is a holding company by virtue of. This study is concerned with the significance of the public utility holding company act of 1935 on the public utility holding companies which were operating in texas in 1935. On december 8, 2005, the federal energy regulatory commission commission issued order no. See repeal of the public utility holding company act of 1935 and enactment of the public utility holding company act of 2005, order no. Current registered holding companies under the public. The public utility holding company act was enacted in order to protect investors and consumers from the economic disadvantages produced by the small number of holding companies that owned most of the nations utilities. This is not a forum for general discussion of the articles subject put new text under old text.
This is the talk page for discussing improvements to the public utility holding company act of 1935 article. Enron, an oregon corporation with headquarters at 1400 smith street, houston, texas 770027361, has filed two applications with the securities and exchange commission commission seeking orders exempting enron from all provisions of the public utility holding company act of 1935 the act except section 9a2. Significance of the public utility holding company act of. The reports must be filed by directors or officers of an issuer with a class of equity securities registered pursuant to section 12 of. Title i of the act is cited as the public utility holding company act of 1935 and is applicable, generally speaking, to holding companies in the electric and gas utility fields. Public utility company definition of public utility.
Public utility holding company act of 1935 legislation in the united states limiting the activities of utility companies such as electric companies. Implementation of section 34a1 of the public utility holding company act of 1935, as added by. Public utility holding company act union of concerned. The public utility holding company act of 1935 was the result of what many american historians call the fiercest congressional battle in history.
Sec approval of the merger pursuant to the public utility holding company act of 1935, coneds chairman and chief executive of. Filing under the public utility holding company act of 1935. Direct testimony and exhibits jeff berzina before the. Public utility holding company act of 1935 as amended. Paul white, author of drawing straight with crooked lines. Public utility holding company act of 1935 legislation intended to eliminate many holding company abuses by reorganizing the financial structures of holding companies in the gas and electric utility industries and regulating their debt and dividend policies. This is not a forum for general discussion of the articles subject. Different statutes have targeted different industry practices, all with the general goal of ensuring dependable utility services for the public at. Current registered holding companies under the public utility. The repeal of the public utility holding company act of 1935. The public utility holding company act of 1935 by e. While this assertion is a matter of opinion and open to interpretation, it is a fact that this piece of new deal legislation presents an interesting case study in human behavior. Registered public utility holding companies are multistate utilities that are regulated by the sec under the public utility holding company act of 1935 puhca.
Any company which directly or indirectly owns, controls, or holds with power to vote, 10 per cen tum or more of the out standing voting securities of a public utility holding company or of a company which is a holding company by. Securities and exchange commission by filing a notification of registration on form u5a under section 5 of the public utility holding company act of 1935. Federal energy regulatory commission 888 first street, n. Technically, in repealing puhca 1935, congress in 1263 of epact 2005 substituted a new public utility holding company act of 2005 puhca 2005. Code part d repeal of public utility holding company act of 1935. Repeal of the public utility holding company act of 1935. Public utility holding company act of 1935 etc document types. Public utilities legal definition of public utilities. The sec is permitted to regulate all nonutility related business. Puhca requires that all side businesses be kept separate from the regulated business. The repeal of the public utility holding company act of. The public utility holding company act of 1935, also known as the wheelerrayburn act, was a us federal law giving the securities and exchange commission authority to regulate, license, and break up electric utility holding companies. Until the 1930s public utilities were subjected to minimal regulation. It also broke up any holding companies with more than two tiers, forcing divestitures so that each became a single integrated system serving a limited geogr.