Public Utility Holding Company Act of 1935
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The Public Utility Holding Company Act of 1935 (PUHCA) was a law that was passed by the United States Congress to facilitate regulation of electric utilities, by either limiting their operations to a single state, and thus subjecting them to effective state regulation, or forcing divestitures so that each became a single integrated system serving a limited geographic area. Another purpose of PUHCA was to keep utility holding companies engaged in regulated businesses from engaging in unregulated businesses. PUHCA required that Securities and Exchange Commission approval be obtained by a holding company prior to engaging in a non-utility business and that such businesses be kept separate from the regulated business(es).
PUHCA was one of a number of trust-busting and securities regulation initiatives that were enacted in response to the Wall Street Crash of 1929 and ensuing Great Depression, including the collapse of Samuel Insull's public utility holding companies.
The utility industry and would-be owners of utilities lobbied Congress heavily to repeal PUHCA, claiming that it was outdated. On August 8, 2005, the Energy Policy Act of 2005 passed both houses of Congress and was signed into law, repealing PUHCA, despite consumer, environmental, union and credit rating agency objections. The repeal became effective on February 8, 2006.
[edit] External links
- Public Utility Holding Company Act of 1935: 1935 – 1992 by the United States Department of Energy
- Current Registered Holding Companies Under the Public Utility Holding Company Act of 1935 at the SEC website
- PUHCA @ U.S. Code
- PUHCA for Dummies
- "PUCHA Repeal Thwarts Competition and Puts Consumers at Risk", Kanner, Marty, The Washington Times
- "Electricity Restructuring Background: Public Utility Holding Company Act of 1935 (PUHCA)"
- "Discarding PUHCA"
- PUHCA at Union of Concerned Scientists
- Article about PUHCA at Public Citizen
