42 USC sec. 149 part 16451-16453

§ 16432

TITLE 42—THE PUBLIC HEALTH AND WELFARE

or direction relating to the use of the transmission system of the Federal utility, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation; or
(B) authorize abrogation of any contract
or treaty obligation.
(Pub. L. 109–58, title XII, § 1232, Aug. 8, 2005, 119
Stat. 956.)
Editorial Notes
CODIFICATION
Section is comprised of section 1232 of Pub. L. 109–58.
Subsec. (e)(3) of section 1232 of Pub. L. 109–58 repealed
section 824n of Title 16, Conservation.

§ 16432. Study on the benefits of economic dispatch
(a) Study
The Secretary, in coordination and consultation with the States, shall conduct a study on—
(1) the procedures currently used by electric
utilities to perform economic dispatch;
(2) identifying possible revisions to those
procedures to improve the ability of nonutility generation resources to offer their output for sale for the purpose of inclusion in economic dispatch; and
(3) the potential benefits to residential, commercial, and industrial electricity consumers
nationally and in each State if economic dispatch procedures were revised to improve the
ability of nonutility generation resources to
offer their output for inclusion in economic
dispatch.
(b) Definition
The term ‘‘economic dispatch’’ when used in
this section means the operation of generation
facilities to produce energy at the lowest cost to
reliably serve consumers, recognizing any operational limits of generation and transmission facilities.
(c) Report to Congress and the States
Not later than 90 days after August 8, 2005, and
on a yearly basis following, the Secretary shall
submit a report to Congress and the States on
the results of the study conducted under subsection (a), including recommendations to Congress and the States for any suggested legislative or regulatory changes.
(Pub. L. 109–58, title XII, § 1234, Aug. 8, 2005, 119
Stat. 960.)
PART C—TRANSMISSION RATE REFORM
§ 16441. Funding new interconnection and transmission upgrades
The Commission may approve a participant
funding plan that allocates costs related to
transmission upgrades or new generator interconnection, without regard to whether an applicant is a member of a Commission-approved
Transmission Organization, if the plan results in
rates that—
(1) are just and reasonable;
(2) are not unduly discriminatory or preferential; and

Page 8814

(3) are otherwise consistent with sections
824d and 824e of title 16.
(Pub. L. 109–58, title XII, § 1242, Aug. 8, 2005, 119
Stat. 962.)
PART D—REPEAL OF PUBLIC UTILITY HOLDING
COMPANY ACT OF 1935
§ 16451. Definitions
For purposes of this part:
(1) Affiliate
The term ‘‘affiliate’’ of a company 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 indirectly, by such company.
(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 foregoing.
(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 79z–5a and 79z–5b of
title 15, as those sections existed on the day
before the effective date of this part.
(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
(A) In general
The term ‘‘holding company’’ means—
(i) any company that directly or indirectly owns, controls, or holds, with power
to vote, 10 percent or more of the outstanding voting securities of a public-utility company or of a holding company of
any public-utility company; and
(ii) any person, determined by the Commission, after notice and opportunity for
hearing, to exercise directly or indirectly
(either alone or pursuant to an arrangement or understanding with one or more

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TITLE 42—THE PUBLIC HEALTH AND WELFARE

persons) such a controlling influence over
the management or policies of any publicutility 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 part upon holding
companies.
(B) Exclusions
The term ‘‘holding company’’ shall not include—
(i) a bank, savings association, or trust
company, or their operating subsidiaries
that own, control, or hold, with the power
to vote, public utility or public utility
holding company securities so long as the
securities are—
(I) held as collateral for a loan;
(II) held in the ordinary course of business as a fiduciary; or
(III) acquired solely for purposes of liquidation and in connection with a loan
previously contracted for and owned beneficially for a period of not more than
two years; or
(ii) a broker or dealer that owns, controls, or holds with the power to vote public utility or public utility holding company securities so long as the securities
are—
(I) not beneficially owned by the
broker or dealer and are subject to any
voting instructions which may be given
by customers or their assigns; or
(II) acquired within 12 months in the
ordinary course of business as a broker,
dealer, or underwriter with the bona fide
intention of effecting distribution of the
specific securities so acquired.
(9) Holding company system
The term ‘‘holding company system’’ means
a holding company, together with its subsidiary companies.
(10) Jurisdictional rates
The term ‘‘jurisdictional rates’’ means rates
accepted or established 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 commerce, and the sale in interstate commerce of
natural gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use.
(11) Natural gas company
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) Person
The term ‘‘person’’ means an individual or
company.
(13) Public utility
The term ‘‘public utility’’ means any person
who owns or operates facilities used for transmission of electric energy in interstate com-

§ 16451

merce or sales of electric energy at wholesale
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 ‘‘subsidiary 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 policies of which the Commission, after notice
and opportunity for hearing, determines to
be subject to a controlling influence, directly or indirectly, 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 person be subject to the obligations, duties, and
liabilities imposed by this part upon subsidiary companies of holding companies.
(17) Voting security
The term ‘‘voting security’’ means any security presently entitling the owner or holder
thereof to vote in the direction or management of the affairs of a company.
(Pub. L. 109–58, title XII, § 1262, Aug. 8, 2005, 119
Stat. 972.)
Editorial Notes
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
this section and section 15801 of this title. For complete
classification of subtitle F to the Code, see Short Title
note set out under section 15801 of this title and Tables.
For the effective date of this part, referred to in par.
(6), see Effective Date note set out below.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Pub. L. 109–58, title XII, § 1274, Aug. 8, 2005, 119 Stat.
977, provided that:
‘‘(a) IN GENERAL.—Except for section 1272 [42 U.S.C.
16460] (relating to implementation), this subtitle [subtitle F (§§ 1261 to 1277) of title XII of Pub. L. 109–58, enacting this part, amending sections 824 and 824m of
Title 16, Conservation, repealing chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacting provisions set out as a note under

§ 16452

TITLE 42—THE PUBLIC HEALTH AND WELFARE

section 15801 of this title] shall take effect 6 months
after the date of enactment of this subtitle [Aug. 8,
2005].
‘‘(b) COMPLIANCE WITH CERTAIN RULES.—If the [Federal Energy Regulatory] Commission approves and
makes effective any final rulemaking modifying the
standards of conduct governing entities that own, operate, or control facilities for transmission of electricity
in interstate commerce or transportation of natural
gas in interstate commerce prior to the effective date
of this subtitle, any action taken by a public-utility
company or utility holding company to comply with
the requirements of such rulemaking shall not subject
such public-utility company or utility holding company to any regulatory requirement applicable to a
holding company under the Public Utility Holding
Company Act of 1935 (15 U.S.C. 79 et seq.).’’
SHORT TITLE
For short title of subtitle F of title XII of Pub. L.
109–58, which enacted this part, as the ‘‘Public Utility
Holding Company Act of 2005’’, see section 1261 of Pub.
L. 109–58, set out as a note under section 15801 of this
title.

§ 16452. 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, memoranda, 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 holding company or of any
subsidiary company of a holding company shall
maintain, and shall make available to the Commission, such books, accounts, memoranda, and
other records with respect to any transaction
with another affiliate, 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.
(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 customers with respect to jurisdictional rates.
(d) Confidentiality
No member, officer, or employee of the Commission shall divulge any fact or information
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.
(Pub. L. 109–58, title XII, § 1264, Aug. 8, 2005, 119
Stat. 974.)

Page 8816

§ 16453. State access to books and records
(a) In general
Upon the written request of a State commission having jurisdiction to regulate a publicutility 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 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 respect to such proceeding.
(b) Limitation
Subsection (a) does not apply to any person
that is a holding company solely by reason of
ownership of one or more qualifying facilities
under the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.).
(c) Confidentiality of information
The production 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 safeguard
against unwarranted disclosure to the public of
any trade secrets or sensitive commercial information.
(d) Effect on State law
Nothing in this section shall preempt applicable State law concerning the provision 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 district court located in
the State in which the State commission referred to in subsection (a) is located shall have
jurisdiction to enforce compliance with this section.
(Pub. L. 109–58, title XII, § 1265, Aug. 8, 2005, 119
Stat. 975.)
Editorial Notes
REFERENCES IN TEXT
The Public Utility Regulatory Policies Act of 1978,
referred to in subsec. (b), is Pub. L. 95–617, Nov. 9, 1978,
92 Stat. 3117. For complete classification of this Act to
the Code, see Short Title note set out under section
2601 of Title 16, Conservation, and Tables.

§ 16454. Exemption authority
(a) Rulemaking
Not later than 90 days after the effective date
of this part, the Commission shall issue a final
rule to exempt from the requirements of section
16452 of this title (relating to Federal access to
books and records) any person that is a holding
company, solely with respect to one or more—
(1) qualifying facilities under the Public
Utility Regulatory Policies Act of 1978 (16
U.S.C. 2601 et seq.);