(5) The term ‘‘electric utility company’’ means 
any company that owns or operates facilities used 
for the generation, transmission, or distribution of 
electric energy for sale. 
(6) The terms ‘‘exempt wholesale generator’’ 
and ‘‘foreign utility company’’ have the same mean-
ings as in sections 32 and 33, respectively, of the 
Public Utility Holding Company Act of 1935, as 
those sections existed on the day before the effective 
date of this Act. 
(7) The term ‘‘gas utility company’’ means any 
company that owns or operates facilities used for 
distribution at retail (other than the distribution 
only in enclosed portable containers or distribution 
to tenants or employees of the company operating 
such facilities for their own use and not for resale) 
of natural or manufactured gas for heat, light, or 
power. 
(8) The term ‘‘holding company’’ means— 
(A) any company that directly or indirectly 
owns, controls, or holds, with power to vote, 10 
percent or more of the outstanding voting secu-
rities of a public utility company or of a holding 
company of any public utility company; and 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
(B) any person, determined by the Com-
mission, after notice and opportunity for hear-
ing, to exercise directly or indirectly (either 
alone or pursuant to an arrangement or under-
standing with one or more persons) such a con-
trolling influence over the management or poli-
cies of any public utility company or holding 
company as to make it necessary or appropriate 
for the rate protection of utility customers with 
respect to rates that such person be subject to 
the obligations, duties, and liabilities imposed 
by this Act upon holding companies. 
(9) The term ‘‘holding company system’’ means 
a holding company, together with its subsidiary com-
panies. 
(10) The term ‘‘jurisdictional rates’’ means 
rates established by the Commission for the trans-
mission of electric energy in interstate commerce, 
the sale of electric energy at wholesale in interstate 
commerce, the transportation of natural gas in inter-
state commerce, and the sale in interstate commerce 
of natural gas for resale for ultimate public con-
sumption for domestic, commercial, industrial, or 
any other use. 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
(11) The term ‘‘natural gas company’’ means a 
person engaged in the transportation of natural gas 
in interstate commerce or the sale of such gas in 
interstate commerce for resale. 
(12) The term ‘‘person’’ means an individual or 
company. 
(13) The term ‘‘public utility’’ means any per-
son who owns or operates facilities used for trans-
mission of electric energy in interstate commerce or 
sales of electric energy at wholesale in interstate 
commerce. 
(14) The term ‘‘public utility company’’ means 
an electric utility company or a gas utility company. 
(15) The term ‘‘State commission’’ means any 
commission, board, agency, or officer, by whatever 
name designated, of a State, municipality, or other 
political subdivision of a State that, under the laws 
of such State, has jurisdiction to regulate public util-
ity companies. 
(16) The term ‘‘subsidiary company’’ of a hold-
ing company means— 
(A) any company, 10 percent or more of 
the outstanding voting securities of which are 
directly or indirectly owned, controlled, or held 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
with power to vote, by such holding company; 
and 
(B) any person, the management or poli-
cies of which the Commission, after notice and 
opportunity for hearing, determines to be sub-
ject to a controlling influence, directly or indi-
rectly, by such holding company (either alone or 
pursuant to an arrangement or understanding 
with one or more other persons) so as to make 
it necessary for the rate protection of utility 
customers with respect to rates that such per-
son be subject to the obligations, duties, and li-
abilities imposed by this Act upon subsidiary 
companies of holding companies. 
(17) The term ‘‘voting security’’ means any se-
curity presently entitling the owner or holder thereof 
to vote in the direction or management of the affairs 
of a company. 
SEC. 4. REPEAL OF THE PUBLIC UTILITY HOLDING COM-
PANY ACT OF 1935. 
The Public Utility Holding Company Act of 1935 (15 
U.S.C. 79a et seq.) is repealed, effective 12 months after 
the date of enactment of this Act. 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
SEC. 5. FEDERAL ACCESS TO BOOKS AND RECORDS. 
(a) IN GENERAL.—Each holding company and each 
associate company thereof shall maintain, and shall make 
available to the Commission, such books, accounts, memo-
randa, and other records as the Commission deems to be 
relevant to costs incurred by a public utility or natural 
gas company that is an associate company of such holding 
company and necessary or appropriate for the protection 
of utility customers with respect to jurisdictional rates for 
the transmission of electric energy in interstate commerce, 
the sale of electric energy at wholesale in interstate com-
merce, the transportation of natural gas in interstate com-
merce, and the sale in interstate commerce of natural gas 
for resale for ultimate public consumption for domestic, 
commercial, industrial, or any other use. 
(b) AFFILIATE COMPANIES.—Each affiliate of a hold-
ing company or of any subsidiary company of a holding 
company shall maintain, and make available to the Com-
mission, such books, accounts, memoranda, and other 
records with respect to any transaction with another affil-
iate, as the Commission deems to be relevant to costs in-
curred by a public utility or natural gas company that is 
an associate company of such holding company and nec-
essary or appropriate for the protection of utility cus-
tomers with respect to jurisdictional rates. 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
(c) HOLDING COMPANY SYSTEMS.—The Commission 
may examine the books, accounts, memoranda, and other 
records of any company in a holding company system, or 
any affiliate thereof, as the Commission deems to be rel-
evant to costs incurred by a public utility or natural gas 
company within such holding company system and nec-
essary or appropriate for the protection of utility cus-
tomers with respect to jurisdictional rates. 
(d) CONFIDENTIALITY.—No member, officer, or em-
ployee of the Commission shall divulge any fact or infor-
mation that may come to his or her knowledge during the 
course of examination of books, accounts, memoranda, or 
other records as provided in this section, except as may 
be directed by the Commission or by a court of competent 
jurisdiction. 
SEC. 6. STATE ACCESS TO BOOKS AND RECORDS. 
(a) IN GENERAL.—Upon the written request of a 
State commission having jurisdiction to regulate a public 
utility company in a holding company system, and subject 
to such terms and conditions as may be necessary and ap-
propriate to safeguard against unwarranted disclosure to 
the public of any trade secrets or sensitive commercial in-
formation, a holding company or its associate company or 
affiliate thereof, wherever located, shall produce for in-
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
spection books, accounts, memoranda, and other records 
that— 
(1) have been identified in reasonable detail in 
a proceeding before the State commission; 
(2) the State commission deems are relevant to 
costs incurred by such public utility company; and 
(3) are necessary for the effective discharge of 
the responsibilities of the State commission with re-
spect to such proceeding. 
(b) EFFECT ON STATE LAW.—Nothing in this section 
shall preempt applicable State law concerning the provi-
sion of books, records, or any other information, or in any 
way limit the rights of any State to obtain books, records, 
or any other information under Federal law, contract, or 
otherwise. 
(c) COURT JURISDICTION.—Any United States dis-
trict court located in the State in which the State commis-
sion referred to in subsection (a) is located shall have ju-
risdiction to enforce compliance with this section. 
SEC. 7. EXEMPTION AUTHORITY. 
(a) RULEMAKING.—Not later than 90 days after the 
date of enactment of this Act, the Commission shall pro-
mulgate a final rule to exempt from the requirements of 
section 5 any person that is a holding company, solely with 
respect to one or more— 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
(1) qualifying facilities under the Public Utility 
Regulatory Policies Act of 1978; 
(2) exempt wholesale generators; or 
(3) foreign utility companies. 
(b) OTHER AUTHORITY.—If, upon application or 
upon its own motion, the Commission finds that the books, 
records, accounts, memoranda, and other records of any 
person are not relevant to the jurisdictional rates of a pub-
lic utility company, or if the Commission finds that any 
class of transactions is not relevant to the jurisdictional 
rates of a public utility company, the Commission shall 
exempt such person or transaction from the requirements 
of section 5. 
SEC. 8. AFFILIATE TRANSACTIONS. 
Nothing in this Act shall preclude the Commission 
or a State commission from exercising its jurisdiction 
under otherwise applicable law to determine whether a 
public utility company may recover in rates any costs of 
an activity performed by an associate company, or any 
costs of goods or services acquired by such public utility 
company from an associate company. 
SEC. 9. APPLICABILITY. 
No provision of this Act shall apply to, or be deemed 
to include— 
(1) the United States; 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
(2) a State or any political subdivision of a 
State; 
(3) any foreign governmental authority not op-
erating 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), or (3) acting as 
such in the course of his or her official duty. 
SEC. 10. EFFECT ON OTHER REGULATIONS. 
Nothing in this Act precludes the Commission or a 
State commission from exercising its jurisdiction under 
otherwise applicable law to protect utility customers. 
SEC. 11. ENFORCEMENT. 
The Commission shall have the same powers as set 
forth in sections 306 through 317 of the Federal Power 
Act (16 U.S.C. 825d–825p) to enforce the provisions of 
this Act. 
SEC. 12. SAVINGS PROVISIONS. 
(a) IN GENERAL.—Nothing in this Act prohibits a 
person from engaging in or continuing to engage in activi-
ties or transactions in which it is legally engaged or au-
thorized to engage on the effective date of this Act, if that 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
person continues to comply with the terms of any such 
authorization, whether by rule or by order. 
(b) EFFECT ON OTHER COMMISSION AUTHORITY.— 
Nothing in this Act limits the authority of the Commission 
under the Federal Power Act (16 U.S.C. 791a et seq.) 
(including section 301 of that Act) or the Natural Gas 
Act (15 U.S.C. 717 et seq.) (including section 8 of that 
Act). 
SEC. 13. IMPLEMENTATION. 
Not later than 12 months after the date of enactment 
of this Act, the Commission shall— 
(1) promulgate such regulations as may be nec-
essary or appropriate to implement this Act; and 
(2) submit to the Congress detailed rec-
ommendations on technical and conforming amend-
ments to Federal law necessary to carry out this Act 
and the amendments made by this Act. 
SEC. 14. TRANSFER OF RESOURCES. 
All books and records that relate primarily to the 
functions transferred to the Commission under this Act 
shall be transferred from the Securities and Exchange 
Commission to the Commission. 
SEC. 15. EFFECTIVE DATE. 
This Act shall take effect 12 months after the date 
of enactment of this Act. 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS
SEC. 16. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such funds 
as may be necessary to carry out this Act. 
SEC. 17. CONFORMING AMENDMENT TO THE FEDERAL 
POWER ACT. 
Section 318 of the Federal Power Act (16 U.S.C. 
825q) is repealed. 
Æ 
VerDate Aug 31 2005 
13:40 Apr 21, 2006
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6301
E:\PICKUP\H1101.IH
H1101
hsrobinson on PROD1PC72 with BILLS