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if, upon application or upon the motion of the Commis-
sion— 
(1) the Commission finds that the books, ac-
counts, memoranda, and other records of any person 
are not relevant to the jurisdictional rates of a public 
utility or natural gas company; or 
(2) the Commission finds that any class of trans-
actions is not relevant to the jurisdictional rates of a 
public utility or natural gas company. 
SEC. 1277. AFFILIATE TRANSACTIONS. 
(a) COMMISSION AUTHORITY UNAFFECTED.—Nothing 
in this subtitle shall limit the authority of the Commission 
under the Federal Power Act (16 U.S.C. 791a et seq.) to 
require that jurisdictional rates are just and reasonable, in-
cluding the ability to deny or approve the pass through of 
costs, the prevention of cross-subsidization, and the issuance 
of such rules and regulations as are necessary or appro-
priate for the protection of utility consumers. 
(b) RECOVERY OF COSTS.—Nothing in this subtitle 
shall preclude the Commission or a State commission from 
exercising its jurisdiction under otherwise applicable law 
to determine whether a public-utility company, public util-
ity, or natural gas company may recover in rates any costs 
of an activity performed by an associate company, or any
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costs of goods or services acquired by such public-utility 
company from an associate company. 
SEC. 1278. APPLICABILITY. 
Except as otherwise specifically provided in this sub-
title, no provision of this subtitle shall apply to, or be 
deemed to include— 
(1) the United States; 
(2) a State or any political subdivision of a 
State; 
(3) any foreign governmental authority not oper-
ating in the United States; 
(4) any agency, authority, or instrumentality of 
any entity referred to in paragraph (1), (2), or (3); 
or 
(5) any officer, agent, or employee of any entity 
referred to in paragraph (1), (2), (3), or (4) acting 
as such in the course of his or her official duty. 
SEC. 1279. EFFECT ON OTHER REGULATIONS. 
Nothing in this subtitle precludes the Commission or 
a State commission from exercising its jurisdiction under 
otherwise applicable law to protect utility customers. 
SEC. 1280. ENFORCEMENT. 
The Commission shall have the same powers as set 
forth in sections 306 through 317 of the Federal Power Act
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(16 U.S.C. 825e–825p) to enforce the provisions of this sub-
title. 
SEC. 1281. SAVINGS PROVISIONS. 
(a) IN GENERAL.—Nothing in this subtitle, or other-
wise in the Public Utility Holding Company Act of 1935, 
or rules, regulations, or orders thereunder, prohibits a per-
son from engaging in or continuing to engage in activities 
or transactions in which it is legally engaged or authorized 
to engage on the date of enactment of this Act, if that person 
continues to comply with the terms (other than an expira-
tion date or termination date) of any such authorization, 
whether by rule or by order. 
(b) EFFECT ON OTHER COMMISSION AUTHORITY.— 
Nothing in this subtitle limits the authority of the Commis-
sion under the Federal Power Act (16 U.S.C. 791a et seq.) 
or the Natural Gas Act (15 U.S.C. 717 et seq.). 
SEC. 1282. IMPLEMENTATION. 
Not later than 4 months after the date of enactment 
of this subtitle, the Commission shall— 
(1) promulgate such regulations as may be nec-
essary or appropriate to implement this subtitle 
(other than section 1275, relating to State access to 
books and records); and 
(2) submit to Congress detailed recommendations 
on technical and conforming amendments to Federal
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law necessary to carry out this subtitle and the 
amendments made by this subtitle. 
SEC. 1283. TRANSFER OF RESOURCES. 
All books and records that relate primarily to the func-
tions transferred to the Commission under this subtitle shall 
be transferred from the Securities and Exchange Commis-
sion to the Commission. 
SEC. 1284. EFFECTIVE DATE. 
(a) IN GENERAL.—Except for section 1282 (relating 
to implementation), this subtitle shall take effect 6 months 
after the date of enactment of this subtitle. 
(b) COMPLIANCE WITH CERTAIN RULES.—If the Com-
mission approves and makes effective any final rulemaking 
modifying the standards of conduct governing entities that 
own, operate, or control facilities for transmission of elec-
tricity in interstate commerce or transportation of natural 
gas in interstate commerce prior to the effective date of this 
subtitle, any action taken by a public-utility company or 
utility holding company to comply with the requirements 
of such rulemaking shall not subject such public-utility com-
pany or utility holding company to any regulatory require-
ment applicable to a holding company under the Public 
Utility Holding Company Act of 1935 (15 U.S.C. 79 et 
seq.).
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SEC. 1285. SERVICE ALLOCATION. 
(a) FERC REVIEW.—In the case of non-power goods 
or administrative or management services provided by an 
associate company organized specifically for the purpose of 
providing such goods or services to any public utility in 
the same holding company system, at the election of the sys-
tem or a State commission having jurisdiction over the pub-
lic utility, the Commission, after the effective date of this 
subtitle, shall review and authorize the allocation of the 
costs for such goods or services to the extent relevant to that 
associate company in order to assure that each allocation 
is appropriate for the protection of investors and consumers 
of such public utility. 
(b) COST ALLOCATION.—Nothing in this section shall 
preclude the Commission or a State commission from exer-
cising its jurisdiction under other applicable law with re-
spect to the review or authorization of any costs allocated 
to a public utility in a holding company system located 
in the affected State as a result of the acquisition of non- 
power goods or administrative and management services by 
such public utility from an associate company organized 
specifically for that purpose. 
(c) RULES.—Not later than 6 months after the date 
of enactment of this Act, the Commission shall issue rules 
(which rules shall be effective no earlier than the effective 
date of this subtitle) to exempt from the requirements of
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this section any company in a holding company system 
whose public utility operations are confined substantially 
to a single State and any other class of transactions that 
the Commission finds is not relevant to the jurisdictional 
rates of a public utility. 
(d) PUBLIC UTILITY.—As used in this section, the term 
‘‘public utility’’ has the meaning given that term in section 
201(e) of the Federal Power Act. 
SEC. 1286. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such funds as 
may be necessary to carry out this subtitle. 
SEC. 1287. CONFORMING AMENDMENTS TO THE FEDERAL 
POWER ACT. 
(a) CONFLICT OF JURISDICTION.—Section 318 of the 
Federal Power Act (16 U.S.C. 825q) is repealed. 
(b) DEFINITIONS..—(1) Section 201(g)(5) of the Fed-
eral Power Act (16 U.S.C. 824(g)(5)) is amended by strik-
ing ‘‘1935’’ and inserting ‘‘2005’’. 
(2) Section 214 of the Federal Power Act (16 U.S.C. 
824m) is amended by striking ‘‘1935’’ and inserting 
‘‘2005’’. 
SEC. 1288. MERGER REVIEW REFORM. 
(a) IN GENERAL.—Section 203(a) of the Federal 
Power Act (16 U.S.C. 824b(a)) is amended to read as fol-
lows: