[Federal Register Volume 59, Number 129 (Thursday, July 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16488]
[[Page Unknown]]
[Federal Register: July 7, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-26077; File No. S7-19-94]
Roundtable Discussion To Inaugurate Comprehensive Study of
Regulation Under the Public Utility Holding Company Act of 1935
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of roundtable discussion.
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SUMMARY: This is to give notice that the Commission will conduct a
roundtable discussion on July 18 and July 19, 1994, at the Willard
Hotel, Washington, DC, beginning at 8:30 a.m., to inaugurate a
comprehensive study of regulation under the Public Utility Holding
Company Act of 1935. The public is invited to attend.
FOR FURTHER INFORMATION CONTACT:
William C. Weeden, Associate Director, (202) 942-0545, Office of Public
Utility Regulation, Division of Investment Management, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549.
SUPPLEMENTARY INFORMATION: The Commission will conduct a roundtable
discussion on July 18 and July 19, 1994, at the Willard Hotel,
Washington, DC, beginning at 8:30 a.m., to inaugurate a comprehensive
study of regulation under the Public Utility Holding Company Act of
1935 (``1935 Act'').
The 1935 Act was New Deal legislation, enacted by Congress to
eliminate abuses that had plagued the United States electric and gas
utility industry and threatened the interests of investors and
consumers. The statute is complex and far-reaching. Although there have
been fundamental changes in the industry in the past sixty years, the
1935 Act has remained largely unchanged.
The Commission believes that it is time to undertake a thorough
evaluation of the 1935 Act, to review the regulatory framework in light
of developments in the industry, and to consider how federal regulation
of utility holding companies can best serve the public interest and the
interest of investors and consumers in the approaching century.
To that end, the Commission recently announced that it will
undertake a comprehensive study of the 1935 Act.\1\ The study will be
inaugurated by a roundtable discussion in which representatives of the
industry, state, local and other federal regulators, consumer groups,
trade associations, an economist, investment banks, rating agencies and
others will participate. The public is invited to attend. The agenda is
set forth below:
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\1\See Testimony of the Honorable Richard Y. Roberts before the
Subcommittee on Energy and Power of the House Committee on Energy
and Commerce (May 26, 1994).
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Roundtable Agenda
Monday, July 18, 1994
Morning Session
8:30 am--Opening remarks of Chairman Arthur Levitt
8:45 am--Introductory remarks by staff of the Division of Investment
Management
9:00 am--The future of the industry
There have been profound changes in the gas and electric
industries over the past few years. The Energy Policy Act of 1992,
in particular, has accelerated the development of a competitive
electric industry, and freed United States companies to invest in
utility operations around the world. The momentum in this area is
not abating--retail wheeling is only the most recent issue. How will
the profile of the industry change in coming years? What role, if
any, is envisioned for a federal holding company statute in this
evolving industry?
Afternoon Session
1:30 pm--State and federal regulation
A federal holding company statute should supplement, not
supplant, the work of the Federal Energy Regulatory Commission and
state and local regulators. What is the role of a federal holding
company statute in the regulation of the gas and electric utility
industry? Given the roles of the Federal Energy Regulatory
Commission and state and local regulators, is a federal holding
company statute necessary for effective regulation?
4:50 pm--Questions and comments
5:30 pm--Session ends
Tuesday, July 19, 1994
Morning Session
8:30 am--Opening remarks by Commissioner Richard Y. Roberts.
8:45 am--Brief remarks by staff of the Division of Investment
Management
9:00 am--Financings and intrasystem transactions
What protections are provided by review of financing
transactions under a federal holding company statute? Is this review
still necessary in light of developments in other federal and state
regulation? If so, how could this review be made more effective and
efficient? Is federal oversight of intrasystem transactions needed
to prevent affiliate abuses, or can the Federal Energy Regulatory
Commission and the states effectively safeguard the interests of
consumers?
10:50 am--Integration and exemption
The requirement of a single integrated public-utility system was
intended to ensure economical and efficient utility operations. Are
the interests of investors and consumers still served by this
requirement? Has the requirement of geographic integration affected
the development of creative solutions to the production and delivery
of energy?
Should the law prohibit foreign ownership of United States
public-utility companies? If so, why and under what conditions?
The law currently exempts certain types of holding companies. Do
the theories underlying these exemptions remain valid? Should the
exemptions be changed in light of recent developments? Are
additional exemptions needed?
Afternoon Session
1:30 pm--Diversification
Has the requirement that nonutility interests be ``functionally
related'' to a system's core utility operations demonstrably
benefited investors and consumers of registered holding companies?
What has been the experience of companies that were not similarly
constrained?
Should there be limits on diversification by utility holding
companies? How would increased diversification affect the ability of
the Federal Energy Regulatory Commission and the states to protect
the interests of consumers? When would the risks associated with
diversification outweigh the potential benefits?
4:00 pm--Questions and comments
5:00 pm--Session ends
Based upon the roundtable discussions and its own review, the
Commission will thereafter invite public comment generally on every
aspect of the 1935 Act and specifically on certain issues. The comments
will be incorporated in a report and recommendations at the conclusion
of the study.
Dated: July 1, 1994.
By the Commission.
Jonathan G. Katz,
Secretary.
[FR Doc. 94-16488 Filed 7-6-94; 8:45 am]
BILLING CODE 8010-01-M
