42 U.S.C. § 16453 — State access to books and records

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109–58, Aug. 8, 2005, 119 Stat. 972, which enacted this part, amended sections 824 and 824m of Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)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.) Page 8903 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 16457 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.); (2) exempt wholesale generators; or (3) foreign utility companies. (b) Other authority The Commission shall exempt a person or transaction from the requirements of section 16452 of this title (relating to Federal access to books and 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 public utility or natural gas com- pany; or (2) the Commission finds that any class of transactions is not relevant to the jurisdic- tional rates of a public utility or natural gas company. (Pub. L. 109–58, title XII, § 1266, Aug. 8, 2005, 119 Stat. 975.) Editorial Notes REFERENCES IN TEXT For the effective date of this part, referred to in sub- sec. (a), see Effective Date note set out under section 16451 of this title. The Public Utility Regulatory Policies Act of 1978, referred to in subsec. (a)(1), 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 sec- tion 2601 of Title 16, Conservation, and Tables. § 16455. Affiliate transactions (a) Commission authority unaffected Nothing in this part shall limit the authority of the Commission under the Federal Power Act (16 U.S.C. 791a et seq.) to require that jurisdic- tional 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 part shall preclude the Com- mission or a State commission from exercising its jurisdiction under otherwise applicable law to determine whether a public-utility company, public utility, or natural gas company may re- cover in rates any costs of an activity performed by an associate company, or any costs of goods or services acquired by such public-utility com- pany from an associate company. (Pub. L. 109–58, title XII, § 1267, Aug. 8, 2005, 119 Stat. 976.) 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 sections 15801 and 16451 of this title. For complete clas- sification of subtitle F to the Code, see Short Title note set out under section 15801 of this title and Tables. The Federal Power Act, referred to in subsec. (a), is act June 10, 1920, ch. 285, 41 Stat. 1063, which is classi- fied generally to chapter 12 (§ 791a et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see section 791a of Title 16 and Tables. § 16456. Applicability Except as otherwise specifically provided in this part, no provision of this part shall apply to, or be deemed to include— (1) the United States; (2) a State or any political subdivision of a State; (3) any foreign governmental authority not operating in the United States; (4) any agency, authority, or instrumen- tality of any entity referred to in paragraph (1), (2), or (3); or (5) any officer, agent, or employee of any en- tity referred to in paragraph (1), (2), (3), or (4) acting as such in the course of his or her offi- cial duty. (Pub. L. 109–58, title XII, § 1268, Aug. 8, 2005, 119 Stat. 976.) 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 sections 15801 and 16451 of this title. For complete clas- sification of subtitle F to the Code, see Short Title note set out under section 15801 of this title and Tables. § 16457. Effect on other regulations Nothing in this part precludes the Commission or a State commission from exercising its juris- diction under otherwise applicable law to pro- tect utility customers. (Pub. L. 109–58, title XII, § 1269, Aug. 8, 2005, 119 Stat. 976.) Editorial Notes REFERENCES IN TEXT This part, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title