News July-September 2005
News Release: September 15, 2005 | View Printable PDF Version |
Docket Number: RM05-32-000 |
Commission proposes rules on Holding Company Act reform
The Federal Energy Regulatory Commission today proposed rules
to implement the repeal of the Public Utility Holding Company
Act of 1935, and to enact the Public Utility Holding Company Act
of 2005 (PUHCA 2005).
"Today we take our third major action to implement the Energy
Policy Act of 2005. This proposed rule would repeal the Public
Utility Holding Company Act, as provided by Congress. PUHCA repeal
will free up new avenues of capital investment in the electricity
and gas industries to strengthen our energy infrastructure and
support competitive markets," said Commission Chairman Joseph
T. Kelliher. "The Commission is working closely with the Securities
and Exchange Commission to assure a smooth transition," Chairman
Kelliher added.
In today's proposed rule, the Commission noted that Congress in
the Energy Policy Act not only gave the Commission new Holding
Company Act responsibilities, but also significantly enhanced
the Commission's authority over mergers, acquisitions and dispositions
of jurisdictional assets by public utilities.
The Commission said its existing authority under the Federal Power
Act and Natural Gas Act, "in combination with our enhanced authority
over public utility mergers, acquisitions and dispositions of
jurisdictional facilities, and our new PUHCA 2005 authority, provide
a sound framework to protect customers. To the extent that additional
rulemakings or orders may be needed to protect customers adequately,
the Commission will take appropriate actions in the future."
The Energy Policy Act repeals the 70-year-old Holding Company
Act, which established a regulatory regime overseen by the U.S.
Securities and Exchange Commission, and replaces it with a new
regulatory regime involving access to holding company books and
records by the Federal Energy Regulatory Commission and state
utility regulators.
Congress mandated that the new Holding Company Act take effect
within six months of August 8, 2005, when President Bush signed
the energy bill into law. The Commission is required to finalize
new Holding Company Act rules and to report to Congress recommendations
on any necessary technical and conforming statutory amendments
within four months. The Commission then has 90 days beyond the
February 2006 effective date to finalize a rule exempting certain
holding company systems with qualifying facilities, exempt wholesale
generators and foreign utility companies from the federal access
to books and records provisions of PUHCA 2005.
All rulemaking requirements of PUHCA 2005 are addressed in today's
Notice of Proposed Rulemaking, in which the Commission proposes
to add a new Part 366, and to remove Part 365, in Title 18 of
the Code of Federal Regulations to implement PUHCA 2005. The proposal
also asks comment on what Securities and Exchange Commission requirements
under the old Holding Company Act regulatory regime should be
maintained under the new PUHCA 2005.
The Commission also is seeking comment on a proposal to remove
its exempt wholesale generator rules, as they are unnecessary
under the new Holding Company Act statutory regime established
by the Energy Policy Act of 2005.
Comments are due 21 days after publication in the Federal Register.
More information is available at www.ferc.gov.
R-05-59
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