42 U.S.C. § 16451 — Definitions

Page 8900 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16432 Federal utility participating in a Transmission Organization shall confer on the Commission ju- risdiction or authority over— (1) the electric generation assets, electric ca- pacity, or energy of the Federal utility that the Federal utility is authorized by law to market; or (2) the power sales activities of the Federal utility. (e) Existing statutory and other obligations (1) System operation requirements No statutory provision requiring or author- izing a Federal utility to transmit electric power or to construct, operate, or maintain the transmission system of the Federal utility prohibits a transfer of control and use of the transmission system pursuant to, and subject to, the requirements of this section. (2) Other obligations This subsection does not— (A) suspend, or exempt any Federal utility from, any provision of Federal law in effect on August 8, 2005, including any requirement or direction relating to the use of the trans- mission system of the Federal utility, envi- ronmental protection, fish and wildlife pro- tection, flood control, navigation, water de- livery, 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 L. 109–58 repealed section 824n of Title 16, Conservation.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 dis- patch (a) Study The Secretary, in coordination and consulta- tion 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 non- utility generation resources to offer their out- put for sale for the purpose of inclusion in eco- nomic dispatch; and (3) the potential benefits to residential, com- mercial, and industrial electricity consumers nationally and in each State if economic dis- patch 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 oper- ational limits of generation and transmission fa- cilities. (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 sub- section (a), including recommendations to Con- gress and the States for any suggested legisla- tive 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 trans- mission upgrades The Commission may approve a participant funding plan that allocates costs related to transmission upgrades or new generator inter- connection, without regard to whether an appli- cant 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 pref- erential; and (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 out- standing voting securities of which are owned, controlled, or held with power to vote, di- rectly or indirectly, by such company. (2) Associate company The term ‘‘associate company’’ of a com- pany 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 per- sons, whether incorporated or not, or a re- ceiver, 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 dis- tribution 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 Page 8901 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16451 for distribution at retail (other than the dis- tribution 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 man- ufactured gas for heat, light, or power. (8) Holding company (A) In general The term ‘‘holding company’’ means— (i) any company that directly or indi- rectly owns, controls, or holds, with power to vote, 10 percent or more of the out- standing voting securities of a public-util- ity company or of a holding company of any public-utility company; and (ii) any person, determined by the Com- mission, after notice and opportunity for hearing, to exercise directly or indirectly (either alone or pursuant to an arrange- ment or understanding with one or more persons) such a controlling influence over the management or policies 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 sub- ject to the obligations, duties, and liabil- ities imposed by this part upon holding companies. (B) Exclusions The term ‘‘holding company’’ shall not in- clude— (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 busi- ness as a fiduciary; or (III) acquired solely for purposes of liq- uidation and in connection with a loan previously contracted for and owned ben- eficially for a period of not more than two years; or (ii) a broker or dealer that owns, con- trols, or holds with the power to vote pub- lic utility or public utility holding com- pany 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 sub- sidiary companies. (10) Jurisdictional rates The term ‘‘jurisdictional rates’’ means rates accepted or established by the Commission for the transmission of electric energy in inter- state commerce, the sale of electric energy at wholesale in interstate commerce, the trans- portation of natural gas in interstate com- merce, and the sale in interstate commerce of natural gas for resale for ultimate public con- sumption for domestic, commercial, indus- trial, or any other use. (11) Natural gas company The term ‘‘natural gas company’’ means a person engaged in the transportation of nat- ural 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 trans- mission of electric energy in interstate com- 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, munici- pality, or other political subdivision of a State that, under the laws of such State, has juris- diction 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 poli- cies of which the Commission, after notice and opportunity for hearing, determines to be subject to a controlling influence, di- rectly or indirectly, by such holding com- pany (either alone or pursuant to an ar- rangement or understanding with one or more other persons) so as to make it nec- essary for the rate protection of utility cus- tomers with respect to rates that such per- son be subject to the obligations, duties, and liabilities imposed by this part upon sub- sidiary companies of holding companies. (17) Voting security The term ‘‘voting security’’ means any secu- rity presently entitling the owner or holder thereof to vote in the direction or manage- ment 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 Page 8902 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16452 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 [sub- title F (§§ 1261 to 1277) of title XII of Pub. L. 109–58, en- acting 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 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 [Fed- eral Energy Regulatory] Commission approves and makes effective any final rulemaking modifying the standards of conduct governing entities that own, oper- ate, 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 com- pany 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, ac- counts, memoranda, and other records as the Commission determines are relevant to costs in- curred by a public utility or natural gas com- pany that is an associate company of such hold- ing 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 Com- mission, such books, accounts, memoranda, and other records with respect to any transaction with another affiliate, as the Commission deter- mines are relevant to costs incurred by a public utility or natural gas company that is an asso- ciate 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, ac- counts, 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 re- spect to jurisdictional rates. (d) Confidentiality No member, officer, or employee of the Com- mission 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 Com- mission or by a court of competent jurisdiction. (Pub. L. 109–58, title XII, § 1264, Aug. 8, 2005, 119 Stat. 974.) § 16453. State access to books and records (a) In general Upon the written request of a State commis- sion having jurisdiction to regulate a public- utility company in a holding company system, the holding company or any associate company or affiliate thereof, other than such public-util- ity 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 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, memo- randa, 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 infor- mation. (d) Effect on State law Nothing in this section shall preempt applica- ble 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 other- wise. (e) Court jurisdiction Any United States district court located in the State in which the State commission re- ferred to in subsection (a) is located shall have jurisdiction to enforce compliance with this sec- tion. (Pub. L. 109–58, title XII, § 1265, Aug. 8, 2005, 119 Stat. 975.)