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during these periods shall be pre-estab-
lished and known to consumers in advance 
of such consumption, allowing them to 
vary their demand and usage in response 
to such prices and manage their energy 
costs by shifting usage to a lower cost pe-
riod or reducing their consumption overall; 
‘‘(ii) critical peak pricing whereby 
time-of-use prices are in effect except for 
certain peak days, when prices may reflect 
the costs of generating and/or purchasing 
electricity at the wholesale level and when 
consumers may receive additional discounts 
for reducing peak period energy consump-
tion; 
‘‘(iii) real-time pricing whereby elec-
tricity prices are set for a specific time pe-
riod on an advanced or forward basis, re-
flecting the utility’s cost of generating and/ 
or purchasing electricity at the wholesale 
level, and may change as often as hourly; 
and 
‘‘(iv) credits for consumers with large 
loads who enter into pre-established peak
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load reduction agreements that reduce a 
utility’s planned capacity obligations. 
‘‘(C) Each electric utility subject to sub-
paragraph (A) shall provide each customer re-
questing a time-based rate with a time-based 
meter capable of enabling the utility and cus-
tomer to offer and receive such rate, respec-
tively. 
‘‘(D) For purposes of implementing this 
paragraph, any reference contained in this sec-
tion to the date of enactment of the Public Util-
ity Regulatory Policies Act of 1978 shall be 
deemed to be a reference to the date of enact-
ment of this paragraph. 
‘‘(E) In a State that permits third-party 
marketers to sell electric energy to retail elec-
tric consumers, such consumers shall be entitled 
to receive the same time-based metering and 
communications device and service as a retail 
electric consumer of the electric utility. 
‘‘(F) Notwithstanding subsections (b) and 
(c) of section 112, each State regulatory au-
thority shall, not later than 18 months after the 
date of enactment of this paragraph conduct an 
investigation in accordance with section 115(i)
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and issue a decision whether it is appropriate to 
implement the standards set out in subpara-
graphs (A) and (C).’’. 
(b) STATE INVESTIGATION OF DEMAND RESPONSE 
AND TIME-BASED METERING.—Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) 
is amended as follows: 
(1) By inserting in subsection (b) after the 
phrase ‘‘the standard for time-of-day rates estab-
lished by section 111(d)(3)’’ the following: ‘‘and the 
standard for time-based metering and communica-
tions established by section 111(d)(14)’’. 
(2) By inserting in subsection (b) after the 
phrase ‘‘are likely to exceed the metering’’ the fol-
lowing: ‘‘and communications’’. 
(3) By adding the at the end the following: 
‘‘(i) TIME-BASED
METERING
AND
COMMUNICA-
TIONS.—In making a determination with respect to the 
standard established by section 111(d)(14), the investiga-
tion requirement of section 111(d)(14)(F) shall be as fol-
lows: Each State regulatory authority shall conduct an in-
vestigation and issue a decision whether or not it is appro-
priate for electric utilities to provide and install time-based 
meters and communications devices for each of their cus-
tomers which enable such customers to participate in time-
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based pricing rate schedules and other demand response 
programs.’’. 
(c) 
FEDERAL
ASSISTANCE
ON
DEMAND
RE-
SPONSE.—Section 132(a) of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2642(a)) is amended by 
striking ‘‘and’’ at the end of paragraph (3), striking the 
period at the end of paragraph (4) and inserting ‘‘; and’’, 
and by adding the following at the end thereof: 
‘‘(5) technologies, techniques, and rate-making 
methods related to advanced metering and commu-
nications and the use of these technologies, tech-
niques and methods in demand response programs.’’. 
(d) FEDERAL GUIDANCE.—Section 132 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642) 
is amended by adding the following at the end thereof: 
‘‘(d) DEMAND RESPONSE.—The Secretary shall be 
responsible for— 
‘‘(1) educating consumers on the availability, 
advantages, and benefits of advanced metering and 
communications technologies, including the funding 
of demonstration or pilot projects; 
‘‘(2) working with States, utilities, other energy 
providers and advanced metering and communica-
tions experts to identify and address barriers to the 
adoption of demand response programs; and
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‘‘(3) not later than 180 days after the date of 
enactment of the Energy Policy Act of 2005, pro-
viding Congress with a report that identifies and 
quantifies the national benefits of demand response 
and makes a recommendation on achieving specific 
levels of such benefits by January 1, 2007.’’. 
(e) DEMAND RESPONSE AND REGIONAL COORDINA-
TION.— 
(1) IN GENERAL.—It is the policy of the United 
States to encourage States to coordinate, on a re-
gional basis, State energy policies to provide reliable 
and affordable demand response services to the pub-
lic. 
(2) TECHNICAL ASSISTANCE.—The Secretary of 
Energy shall provide technical assistance to States 
and regional organizations formed by 2 or more 
States to assist them in— 
(A) identifying the areas with the greatest 
demand response potential; 
(B) identifying and resolving problems in 
transmission and distribution networks, includ-
ing through the use of demand response; 
(C) developing plans and programs to use 
demand response to respond to peak demand or 
emergency needs; and
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(D) identifying specific measures con-
sumers can take to participate in these demand 
response programs. 
(3) REPORT.—Not later than 1 year after the 
date of enactment of the Energy Policy Act of 2005, 
the Commission shall prepare and publish an annual 
report, by appropriate region, that assesses demand 
response resources, including those available from all 
consumer classes, and which identifies and reviews— 
(A) saturation and penetration rate of ad-
vanced 
meters 
and 
communications 
tech-
nologies, devices and systems; 
(B) existing demand response programs 
and time-based rate programs; 
(C) the annual resource contribution of de-
mand resources; 
(D) the potential for demand response as 
a quantifiable, reliable resource for regional 
planning purposes; 
(E) steps taken to ensure that, in regional 
transmission planning and operations, demand 
resources are provided equitable treatment as a 
quantifiable, reliable resource relative to the re-
source obligations of any load-serving entity,
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transmission provider, or transmitting party; 
and 
(F) regulatory barriers to improved cus-
tomer participation in demand response, peak 
reduction and critical period pricing programs. 
(f) FEDERAL ENCOURAGEMENT
OF DEMAND RE-
SPONSE DEVICES.—It is the policy of the United States 
that time-based pricing and other forms of demand re-
sponse, whereby electricity customers are provided with 
electricity price signals and the ability to benefit by re-
sponding to them, shall be encouraged, the deployment of 
such technology and devices that enable electricity cus-
tomers to participate in such pricing and demand response 
systems shall be facilitated, and unnecessary barriers to 
demand response participation in energy, capacity and an-
cillary service markets shall be eliminated. It is further 
the policy of the United States that the benefits of such 
demand response that accrue to those not deploying such 
technology and devices, but who are part of the same re-
gional electricity entity, shall be recognized. 
(g) TIME LIMITATIONS.—Section 112(b) of the Pub-
lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622(b)) is amended by adding at the end the following: 
‘‘(4)(A) Not later than 1 year after the enact-
ment of this paragraph, each State regulatory au-
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thority (with respect to each electric utility for which 
it has ratemaking authority) and each nonregulated 
electric utility shall commence the consideration re-
ferred to in section 111, or set a hearing date for 
such consideration, with respect to the standard es-
tablished by paragraph (14) of section 111(d). 
‘‘(B) Not later than 2 years after the date of 
the enactment of this paragraph, each State regu-
latory authority (with respect to each electric utility 
for which it has ratemaking authority), and each 
nonregulated electric utility, shall complete the con-
sideration, and shall make the determination, re-
ferred to in section 111 with respect to the standard 
established by paragraph (14) of section 111(d).’’. 
(h) FAILURE TO COMPLY.—Section 112(c) of the 
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622(c)) is amended by adding at the end the following: 
‘‘In the case of the standard established by paragraph (14) 
of section 111(d), the reference contained in this sub-
section to the date of enactment of this Act shall be 
deemed to be a reference to the date of enactment of such 
paragraph (14).’’. 
(i) PRIOR STATE ACTIONS REGARDING SMART ME-
TERING STANDARDS.—
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(1) IN GENERAL.—Section 112 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2622) is amended by adding at the end the fol-
lowing: 
‘‘(e) PRIOR STATE ACTIONS.—Subsections (b) and 
(c) of this section shall not apply to the standard estab-
lished by paragraph (14) of section 111(d) in the case of 
any electric utility in a State if, before the enactment of 
this subsection— 
‘‘(1) the State has implemented for such utility 
the standard concerned (or a comparable standard); 
‘‘(2) the State regulatory authority for such 
State or relevant nonregulated electric utility has 
conducted a proceeding to consider implementation 
of the standard concerned (or a comparable stand-
ard) for such utility within the previous 3 years; or 
‘‘(3) the State legislature has voted on the im-
plementation of such standard (or a comparable 
standard) for such utility within the previous 3 
years.’’. 
(2) CROSS REFERENCE.—Section 124 of such 
Act (16 U.S.C. 2634) is amended by adding the fol-
lowing at the end thereof: ‘‘In the case of the stand-
ard established by paragraph (14) of section 111(d), 
the reference contained in this subsection to the date
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of enactment of this Act shall be deemed to be a ref-
erence to the date of enactment of such paragraph 
(14).’’. 
SEC. 1253. COGENERATION AND SMALL POWER PRODUC-
TION PURCHASE AND SALE REQUIREMENTS. 
(a) TERMINATION OF MANDATORY PURCHASE AND 
SALE REQUIREMENTS.—Section 210 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is 
amended by adding at the end the following: 
‘‘(m) TERMINATION OF MANDATORY PURCHASE AND 
SALE REQUIREMENTS.— 
‘‘(1) OBLIGATION
TO
PURCHASE.—After the 
date of enactment of this subsection, no electric util-
ity shall be required to enter into a new contract or 
obligation to purchase electric energy from a quali-
fying cogeneration facility or a qualifying small 
power production facility under this section if the 
Commission finds that the qualifying cogeneration 
facility or qualifying small power production facility 
has nondiscriminatory access to— 
‘‘(A)(i) independently administered, auc-
tion-based day ahead and real time wholesale 
markets for the sale of electric energy; and (ii) 
wholesale markets for long-term sales of capac-
ity and electric energy; or
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‘‘(B)(i) transmission and interconnection 
services that are provided by a Commission-ap-
proved regional transmission entity and admin-
istered pursuant to an open access transmission 
tariff that affords nondiscriminatory treatment 
to all customers; and (ii) competitive wholesale 
markets that provide a meaningful opportunity 
to sell capacity, including long-term and short- 
term sales, and electric energy, including long- 
term, short-term and real-time sales, to buyers 
other than the utility to which the qualifying fa-
cility is interconnected. In determining whether 
a meaningful opportunity to sell exists, the 
Commission shall consider, among other fac-
tors, evidence of transactions within the rel-
evant market; or 
‘‘(C) wholesale markets for the sale of ca-
pacity and electric energy that are, at a min-
imum, of comparable competitive quality as 
markets described in subparagraphs (A) and 
(B). 
‘‘(2) REVISED PURCHASE AND SALE OBLIGA-
TION FOR NEW FACILITIES.—(A) After the date of 
enactment of this subsection, no electric utility shall 
be required pursuant to this section to enter into a
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new contract or obligation to purchase from or sell 
electric energy to a facility that is not an existing 
qualifying cogeneration facility unless the facility 
meets the criteria for qualifying cogeneration facili-
ties established by the Commission pursuant to the 
rulemaking required by subsection (n). 
‘‘(B) For the purposes of this paragraph, the 
term ‘existing qualifying cogeneration facility’ means 
a facility that— 
‘‘(i) was a qualifying cogeneration facility 
on the date of enactment of subsection (m); or 
‘‘(ii) had filed with the Commission a no-
tice of self-certification, self recertification or 
an application for Commission certification 
under 18 C.F.R. 292.207 prior to the date on 
which the Commission issues the final rule re-
quired by subsection (n). 
‘‘(3) COMMISSION REVIEW.—Any electric utility 
may file an application with the Commission for re-
lief from the mandatory purchase obligation pursu-
ant to this subsection on a service territory-wide 
basis. Such application shall set forth the factual 
basis upon which relief is requested and describe 
why the conditions set forth in subparagraphs (A), 
(B) or (C) of paragraph (1) of this subsection have
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been met. After notice, including sufficient notice to 
potentially affected qualifying cogeneration facilities 
and qualifying small power production facilities, and 
an opportunity for comment, the Commission shall 
make a final determination within 90 days of such 
application regarding whether the conditions set 
forth in subparagraphs (A), (B) or (C) of paragraph 
(1) have been met. 
‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR-
CHASE.—At any time after the Commission makes a 
finding under paragraph (3) relieving an electric 
utility of its obligation to purchase electric energy, 
a qualifying cogeneration facility, a qualifying small 
power production facility, a State agency, or any 
other affected person may apply to the Commission 
for an order reinstating the electric utility’s obliga-
tion to purchase electric energy under this section. 
Such application shall set forth the factual basis 
upon which the application is based and describe 
why the conditions set forth in subparagraphs (A), 
(B) or (C) of paragraph (1) of this subsection are 
no longer met. After notice, including sufficient no-
tice to potentially affected utilities, and opportunity 
for comment, the Commission shall issue an order 
within 90 days of such application reinstating the
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electric utility’s obligation to purchase electric en-
ergy under this section if the Commission finds that 
the conditions set forth in subparagraphs (A), (B) or 
(C) of paragraph (1) which relieved the obligation to 
purchase, are no longer met. 
‘‘(5) OBLIGATION TO SELL.—After the date of 
enactment of this subsection, no electric utility shall 
be required to enter into a new contract or obliga-
tion to sell electric energy to a qualifying cogenera-
tion facility or a qualifying small power production 
facility under this section if the Commission finds 
that— 
‘‘(A) competing retail electric suppliers are 
willing and able to sell and deliver electric en-
ergy to the qualifying cogeneration facility or 
qualifying small power production facility; and 
‘‘(B) the electric utility is not required by 
State law to sell electric energy in its service 
territory. 
‘‘(6) NO
EFFECT
ON
EXISTING
RIGHTS
AND 
REMEDIES.—Nothing in this subsection affects the 
rights or remedies of any party under any contract 
or obligation, in effect or pending approval before 
the appropriate State regulatory authority or non- 
regulated electric utility on the date of enactment of
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this subsection, to purchase electric energy or capac-
ity from or to sell electric energy or capacity to a 
qualifying cogeneration facility or qualifying small 
power production facility under this Act (including 
the right to recover costs of purchasing electric en-
ergy or capacity). 
‘‘(7) RECOVERY OF COSTS.—(A) The Commis-
sion shall issue and enforce such regulations as are 
necessary to ensure that an electric utility that pur-
chases electric energy or capacity from a qualifying 
cogeneration facility or qualifying small power pro-
duction facility in accordance with any legally en-
forceable obligation entered into or imposed under 
this section recovers all prudently incurred costs as-
sociated with the purchase. 
‘‘(B) A regulation under subparagraph (A) shall 
be enforceable in accordance with the provisions of 
law applicable to enforcement of regulations under 
the Federal Power Act (16 U.S.C. 791a et seq.). 
‘‘(n) RULEMAKING FOR NEW QUALIFYING FACILI-
TIES.—(1)(A) Not later than 180 days after the date of 
enactment of this section, the Commission shall issue a 
rule revising the criteria in 18 C.F.R. 292.205 for new 
qualifying cogeneration facilities seeking to sell electric en-
ergy pursuant to section 210 of this Act to ensure—
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‘‘(i) that the thermal energy output of a new 
qualifying cogeneration facility is used in a produc-
tive and beneficial manner; 
‘‘(ii) the electrical, thermal, and chemical out-
put of the cogeneration facility is used fundamen-
tally for industrial, commercial, or institutional pur-
poses and is not intended fundamentally for sale to 
an electric utility, taking into account technological, 
efficiency, economic, and variable thermal energy re-
quirements, as well as State laws applicable to sales 
of electric energy from a qualifying facility to its 
host facility; and 
‘‘(iii) continuing progress in the development of 
efficient electric energy generating technology. 
‘‘(B) The rule issued pursuant to paragraph (1)(A) 
of this subsection shall be applicable only to facilities that 
seek to sell electric energy pursuant to section 210 of this 
Act. For all other purposes, except as specifically provided 
in subsection (m)(2)(A), qualifying facility status shall be 
determined in accordance with the rules and regulations 
of this Act. 
‘‘(2) Notwithstanding rule revisions under paragraph 
(1), the Commission’s criteria for qualifying cogeneration 
facilities in effect prior to the date on which the Commis-
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sion issues the final rule required by paragraph (1) shall 
continue to apply to any cogeneration facility that— 
‘‘(A) was a qualifying cogeneration facility on 
the date of enactment of subsection (m), or 
‘‘(B) had filed with the Commission a notice of 
self-certification, self-recertification or an application 
for Commission certification under 18 C.F.R. 
292.207 prior to the date on which the Commission 
issues the final rule required by paragraph (1).’’. 
(b) ELIMINATION OF OWNERSHIP LIMITATIONS.— 
(1) QUALIFYING
SMALL
POWER
PRODUCTION 
FACILITY.—Section 3(17)(C) of the Federal Power 
Act (16 U.S.C. 796(17)(C)) is amended to read as 
follows: 
‘‘(C) ‘qualifying small power production fa-
cility’ means a small power production facility 
that the Commission determines, by rule, meets 
such requirements (including requirements re-
specting fuel use, fuel efficiency, and reliability) 
as the Commission may, by rule, prescribe;’’. 
(2) QUALIFYING
COGENERATION
FACILITY.— 
Section 3(18)(B) of the Federal Power Act (16 
U.S.C. 796(18)(B)) is amended to read as follows: 
‘‘(B) 
‘qualifying 
cogeneration 
facility’ 
means a cogeneration facility that the Commis-
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sion determines, by rule, meets such require-
ments (including requirements respecting min-
imum size, fuel use, and fuel efficiency) as the 
Commission may, by rule, prescribe;’’. 
SEC. 1254. INTERCONNECTION. 
(a) ADOPTION OF STANDARDS.—Section 111(d) of 
the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2621 (d) ) is amended by adding at the end the 
following: 
‘‘(16) INTERCONNECTION.—Each electric utility 
shall make available, upon request, interconnection 
service to any electric consumer that the electric 
utility serves. For purposes of this paragraph, the 
term ‘interconnection service’ means service to an 
electric consumer under which an on-site generating 
facility on the consumer’s premises shall be con-
nected to the local distribution facilities. Inter-
connection services shall be offered based upon the 
standards developed by the Institute of Electrical 
and Electronics Engineers: IEEE Standard 1547 for 
Interconnecting Distributed Resources with Electric 
Power Systems, as they may be amended from time 
to time. In addition, agreements and procedures 
shall be established whereby the services are offered 
shall promote current best practices of interconnec-
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tion for distributed generation, including but not 
limited to practices stipulated in model codes adopt-
ed by associations of state regulatory agencies. All 
such agreements and procedures shall be just and 
reasonable, and not unduly discriminatory or pref-
erential.’’. 
(b) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112 (b) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2622(b)) is amended by adding at the end 
the following: 
‘‘(5)(A) Not later than one year after the enact-
ment of this paragraph, each State regulatory au-
thority (with respect to each electric utility for which 
it has ratemaking authority) and each nonregulated 
utility shall commence the consideration referred to 
in section 111, or set a hearing date for consider-
ation, with respect to the standard established by 
paragraph (16) of section 111(d). 
‘‘(B) Not later than two years after the date of 
the enactment of the this paragraph, each State reg-
ulatory authority (with respect to each electric utility 
for which it has ratemaking authority), and each 
nonregulated electric utility, shall complete the con-
sideration, and shall make the determination, re-
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ferred to in section 111 with respect to each stand-
ard established by paragraph (16) of section 
111(d).’’. 
(2) FAILURE TO COMPLY.—Section 112(d) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622 (c)) is amended by adding at the 
end the following: ‘‘In the case of the standard es-
tablished by paragraph (16), the reference contained 
in this subsection to the date of enactment of this 
Act shall be deemed to be a reference to the date of 
enactment of paragraph (16).’’. 
(3) PRIOR STATE ACTIONS.— 
(A) IN
GENERAL.—Section 112 of the 
Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622) is amended by adding at the 
end the following: 
‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and 
(c) of this section shall not apply to the standards estab-
lished by paragraphs (16) of section 111(d) in the case 
of any electric utility in a State if, before the enactment 
of this subsection— 
‘‘(1) the State has implemented for such utility 
the standard concerned (or a comparable standard); 
‘‘(2) the State regulatory authority for such 
State or relevant nonregulated electric utility has
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conducted a proceeding to consider implementation 
of the standard concerned (or a comparable stand-
ard) for such utility; or 
‘‘(3) the State legislature has voted on the im-
plementation of such standard (or a comparable 
standard) for such utility.’’. 
(B) CROSS REFERENCE.—Section 124 of 
such Act (16 U.S.C. 2634) is amended by add-
ing the following at the end thereof: ‘‘In the 
case of each standard established by paragraph 
(16) of section 111(d), the reference contained 
in this subsection to the date of enactment of 
the Act shall be deemed to be a reference to the 
date of enactment of paragraph (16).’’. 
Subtitle F—Repeal of PUHCA 
SEC. 1261. SHORT TITLE. 
This subtitle may be cited as the ‘‘Public Utility 
Holding Company Act of 2005’’. 
SEC. 1262. DEFINITIONS. 
For purposes of this subtitle: 
(1) AFFILIATE.—The term ‘‘affiliate’’ of a com-
pany means any company, 5 percent or more of the 
outstanding voting securities of which are owned, 
controlled, or held with power to vote, directly or in-
directly, by such company.
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(2) ASSOCIATE COMPANY.—The term ‘‘associate 
company’’ of a company means any company in the 
same holding company system with such company. 
(3) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(4) COMPANY.—The term ‘‘company’’ means a 
corporation, partnership, association, joint stock 
company, business trust, or any organized group of 
persons, whether incorporated or not, or a receiver, 
trustee, or other liquidating agent of any of the fore-
going. 
(5) ELECTRIC
UTILITY
COMPANY.—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) EXEMPT
WHOLESALE
GENERATOR
AND 
FOREIGN
UTILITY
COMPANY.—The terms ‘‘exempt 
wholesale generator’’ and ‘‘foreign utility company’’ 
have the same meanings as in sections 32 and 33, 
respectively, of the Public Utility Holding Company 
Act of 1935 (15 U.S.C. 79z–5a, 79z–5b), as those 
sections existed on the day before the effective date 
of this subtitle.
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(7) GAS
UTILITY
COMPANY.—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) HOLDING
COMPANY.—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 
(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 1 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
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the obligations, duties, and liabilities imposed 
by this subtitle upon holding companies. 
(9) HOLDING
COMPANY
SYSTEM.—The term 
‘‘holding company system’’ means a holding com-
pany, together with its subsidiary companies. 
(10) JURISDICTIONAL RATES.—The term ‘‘ju-
risdictional rates’’ means rates accepted or estab-
lished by the Commission for the transmission of 
electric energy in interstate commerce, the sale of 
electric energy at wholesale in interstate commerce, 
the transportation of natural gas in interstate com-
merce, and the sale in interstate commerce of nat-
ural gas for resale for ultimate public consumption 
for domestic, commercial, industrial, or any other 
use. 
(11) NATURAL GAS COMPANY.—The term ‘‘nat-
ural 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) PERSON.—The term ‘‘person’’ means an 
individual or company. 
(13) PUBLIC UTILITY.—The term ‘‘public util-
ity’’ means any person who owns or operates facili-
ties used for transmission of electric energy in inter-
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state commerce or sales of electric energy at whole-
sale in interstate commerce. 
(14) PUBLIC-UTILITY
COMPANY.—The term 
‘‘public-utility company’’ means an electric utility 
company or a gas utility company. 
(15) STATE
COMMISSION.—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 utility companies. 
(16) SUBSIDIARY COMPANY.—The term ‘‘sub-
sidiary company’’ of a holding company means— 
(A) any company, 10 percent or more of 
the outstanding voting securities of which are 
directly or indirectly owned, controlled, or held 
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 1 or more other persons) so as to make it
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necessary for the rate protection of utility cus-
tomers with respect to rates that such person 
be subject to the obligations, duties, and liabil-
ities imposed by this subtitle upon subsidiary 
companies of holding companies. 
(17) VOTING SECURITY.—The term ‘‘voting se-
curity’’ means any security presently entitling the 
owner or holder thereof to vote in the direction or 
management of the affairs of a company. 
SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COM-
PANY ACT OF 1935. 
The Public Utility Holding Company Act of 1935 (15 
U.S.C. 79 et seq.) is repealed. 
SEC. 1264. 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 determines 
are 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. 
(b) AFFILIATE COMPANIES.—Each affiliate of a hold-
ing company or of any subsidiary company of a holding 
company shall maintain, and shall make available to the
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Commission, such books, accounts, memoranda, and other 
records with respect to any transaction with another affil-
iate, as the Commission determines are relevant to costs 
incurred 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. 
(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 determines are 
relevant to costs incurred by a public utility or natural 
gas company within such holding company system and 
necessary 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. 1265. STATE ACCESS TO BOOKS AND RECORDS. 
(a) IN GENERAL.—Upon the written request of a 
State commission having jurisdiction to regulate a public-