Public Utility Holding Company Act of 1935


Also found in: Wikipedia.

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.

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 Most of its provisions were repealed in the Public Utility Holding Company Act of 2005.
References in periodicals archive ?
Under the Public Utility Holding Company Act of 1935 (PUHCA 1935) and other laws, federal agencies and state commissions have traditionally regulated utilities to protect consumers from supply disruptions and unfair pricing.
It will repeal the Public Utility Holding Company Act of 1935, which places restrictions on utility mergers, and will streamline the hydroelectric re-licensing process.
And it would repeal the Public Utility Holding Company Act of 1935 so that any company could buy into the utility business.
PUHCA 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.
The Public Utility Holding Company Act of 1935 (PUHCA) and the Federal Power Act (FPA) were enacted to eliminate unfair practices and other abuses by electricity and gas holding companies by requiring federal control and regulation of interstate public utility holding companies.
The Public Utility Holding Company Act of 1935 requires utility holding companies to divest operations not integral to their primary operations.
* PUHCA -- The Public Utility Holding Company Act of 1935. This act prohibits acquisition of any wholesale or retail electric business through a holding company unless that business forms part of an integrated public utility system when combined with the utility's other electric business.
Electric and gas utility systems throughout the country voiced strong support for bipartisan legislation introduced to repeal the Public Utility Holding Company Act of 1935. The legislation would replace the 64-year-old PUHCA with a new holding company act to allow greater flexibility in the utility industry and to ensure consumer safeguards.
* The Public Utility Holding Company Act of 1935 will cease to apply only after each state in which a utility company does business notifies FERC and the Securities and Exchange Commission that retail customers are able to purchase electricity or natural gas on a competitively neutral and nondiscriminatory basis.
Before passage of the Public Utility Holding Company Act of 1935 (PUHCA), a small number of holding companies owned most utilities in the United States.
In addition to the two primary Securities Acts of 1933 and 1934, EDGAR also provides a filing process for selected documents required under the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, and the Investment Company Act of 1940.

Full browser ?