Public Utility Holding Company Act of 1935

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.

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Public Utility Holding Company Act of 1935

Legislation in the United States limiting the activities of utility companies such as electric 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. It also requires them to obtain approval from the SEC in order to engage in business unrelated to the utility industry. The Act was passed in response to near monopolistic activities on the part of utility companies. Most of its provisions were repealed in the Public Utility Holding Company Act of 2005.