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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 is repealed.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-
602
utility company in a holding company system, the holding
company or any associate company or affiliate thereof,
other than such public-utility company, wherever located,
shall produce for inspection 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 determines are rel-
evant to costs incurred by such public-utility com-
pany; and
(3) are necessary for the effective discharge of
the responsibilities of the State commission with re-
spect to such proceeding.
(b) LIMITATION.—Subsection (a) does not apply to
any person that is a holding company solely by reason of
ownership of 1 or more qualifying facilities under the Pub-
lic Utility Regulatory Policies Act of 1978 (16 U.S.C.
2601 et seq.).
(c) CONFIDENTIALITY OF INFORMATION.—The pro-
duction of books, accounts, memoranda, and other records
under subsection (a) shall be subject to such terms and
conditions as may be necessary and appropriate to safe-
guard against unwarranted disclosure to the public of any
trade secrets or sensitive commercial information.
603
(d) EFFECT ON STATE LAW.—Nothing in this sec-
tion shall preempt applicable State law concerning the pro-
vision of books, accounts, memoranda, and other records,
or in any way limit the rights of any State to obtain books,
accounts, memoranda, and other records under any other
Federal law, contract, or otherwise.
(e) 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. 1266. EXEMPTION AUTHORITY.
(a) RULEMAKING.—Not later than 90 days after the
effective date of this subtitle, the Commission shall issue
a final rule to exempt from the requirements of section
1264 (relating to Federal access to books and records) any
person that is a holding company, solely with respect to
1 or more—
(1) qualifying facilities under the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et
seq.);
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) OTHER AUTHORITY.—The Commission shall ex-
empt a person or transaction from the requirements of
section 1264 (relating to Federal access to books and
604
records) if, upon application or upon the motion of the
Commission—
(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 pub-
lic utility or natural gas company; or
(2) the Commission finds that any class of
transactions is not relevant to the jurisdictional
rates of a public utility or natural gas company.
SEC. 1267. AFFILIATE TRANSACTIONS.
(a) COMMISSION AUTHORITY UNAFFECTED.—Noth-
ing in this subtitle shall limit the authority of the Commis-
sion under the Federal Power Act (16 U.S.C. 791a et seq.)
to require that jurisdictional rates are just and reasonable,
including 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 appropriate 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