I
104TH CONGRESS
1ST SESSION
H. R. 912
To permit registered utility holding companies to participate in the provision
of telecommunications services.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 13, 1995
Mr. GILLMOR (for himself, Mr. BOUCHER, Mr. FIELDS of Texas, Mr. HALL
of Texas, Mr. HASTERT, and Mr. TAUZIN) introduced the following bill;
which was referred to the Committee on Commerce
A BILL
To permit registered utility holding companies to participate
in the provision of telecommunications services.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PARTICIPATION BY REGISTERED UTILITY
HOLDING COMPANIES IN PROVIDING TELE-
COMMUNICATIONS SERVICES.
(a) IN GENERAL.—(1) Notwithstanding any and all
provisions of the Public Utility Holding Company Act of
1935, any subsidiary company, affiliate, or associate com-
pany of a registered holding company, except a public-util-
ity company, may engage in, directly or indirectly, any ac-
tivity whatsoever, wherever located, necessary or appro-
priate to the provision of telecommunications services, in-
formation services, or other services or products subject
to the jurisdiction of the Federal Communications Com-
mission under the Communications Act of 1934, or energy
management or demand-side management services.
(2) The Securities and Exchange Commission shall
have no jurisdiction under the Public Utility Holding
Company Act of 1935, over a registered holding company,
or any subsidiary company, affiliate, or associate company
thereof engaging in any activities described in subsection
(a)(1), to enforce any requirement with respect to such
Act, or to approve or otherwise review any such activity,
including (but not limited to) financing, investing in, ac-
quiring, or maintaining any interest or entering into affili-
ate transactions or contracts.
(b) PROHIBITION OF CROSS SUBSIDIZATION.—Noth-
ing in this section shall prevent the Federal Energy Regu-
latory Commission or a State commission from exercising
its jurisdiction to the extent otherwise authorized under
applicable law with respect to prohibiting cross subsidiza-
tion of the activities described in subsection (a) by a pub-
lic-utility company in its rates for electric or gas services.
(c) REQUIREMENT OF SEPARATE AFFILIATE.—
(1) SEPARATE AFFILIATE.—As provided in sub-
section (a), any activity authorized under such sub-
section shall be conducted only through a subsidiary
company, affiliate, or associate company that is sep-
arate from any public-utility company providing elec-
tric or gas services. The subsidiary company, affili-
ate, or associate company required by this sub-
section need not be separate from any other subsidi-
ary company, affiliate, or associate company that
does not provide electric or gas service.
(2) SEPARATE
BOOKS.—Any subsidiary com-
pany, affiliate, or associate company engaging in any
activities described in subsection (a) shall maintain
separate books, records, or accounts which identify
all transactions involving such activities and provide
access to such books, records, or accounts to State
commissions and the Federal Energy Regulatory
Commission under the same terms and procedures
as provided in section 201(g) to the Federal Power
Act.
(d) INDEPENDENT AUDIT AUTHORITY FOR STATE
COMMISSIONS.—Any State commission with jurisdiction
over a public-utility company that is an associate company
of a registered holding company and that transacts busi-
ness with a subsidiary company, affiliate, or associate
company of such holding company engaging in any activi-
ties described in subsection (a) may request that the com-
pany engaging in such activities have performed, no more
frequently than on an annual basis, an independent audit
of transactions between such jurisdictional public-utility
company and such company engaging in such activities.
Upon such request from a State commission, the company
engaging in such activities shall select an independent
auditor and bear the costs of performing such an audit.
The audit report shall be provided to the State commission
within 6 months of the audit request.
(e) DEFINITIONS.—All of the terms used in this sec-
tion and defined in the Public Utility Holding Company
Act of 1935 shall have the same meanings as defined
therein.
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