[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 912 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 912

 To permit registered utility holding companies to participate in the 
               provision of telecommunications services.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 1995

Mr. Gillmor (for himself, Mr. Boucher, Mr. Fields of Texas, Mr. Hall of 
  Texas, Mr. Hastert, and Mr. Tauzin) introduced the following bill; 
            which was referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
 To permit registered utility holding companies to participate in the 
               provision of telecommunications services.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PARTICIPATION BY REGISTERED UTILITY HOLDING COMPANIES IN 
              PROVIDING TELECOMMUNICATIONS SERVICES.

    (a) In General.--(1) Notwithstanding any and all provisions of the 
Public Utility Holding Company Act of 1935, any subsidiary company, 
affiliate, or associate company of a registered holding company, except 
a public-utility company, may engage in, directly or indirectly, any 
activity whatsoever, wherever located, necessary or appropriate to the 
provision of telecommunications services, information services, or 
other services or products subject to the jurisdiction of the Federal 
Communications Commission under the Communications Act of 1934, or 
energy management or demand-side management services.
    (2) The Securities and Exchange Commission shall have no 
jurisdiction under the Public Utility Holding Company Act of 1935, over 
a registered holding company, or any subsidiary company, affiliate, or 
associate company thereof engaging in any activities described in 
subsection (a)(1), to enforce any requirement with respect to such Act, 
or to approve or otherwise review any such activity, including (but not 
limited to) financing, investing in, acquiring, or maintaining any 
interest or entering into affiliate transactions or contracts.
    (b) Prohibition of Cross Subsidization.--Nothing in this section 
shall prevent the Federal Energy Regulatory Commission or a State 
commission from exercising its jurisdiction to the extent otherwise 
authorized under applicable law with respect to prohibiting cross 
subsidization of the activities described in subsection (a) by a 
public-utility company in its rates for electric or gas services.
    (c) Requirement of Separate Affiliate.--
            (1) Separate affiliate.--As provided in subsection (a), any 
        activity authorized under such subsection shall be conducted 
        only through a subsidiary company, affiliate, or associate 
        company that is separate from any public-utility company 
        providing electric or gas services. The subsidiary company, 
        affiliate, or associate company required by this subsection 
        need not be separate from any other subsidiary company, 
        affiliate, or associate company that does not provide electric 
        or gas service.
            (2) Separate books.--Any subsidiary company, affiliate, or 
        associate company engaging in any activities described in 
        subsection (a) shall maintain separate books, records, or 
        accounts which identify all transactions involving such 
        activities and provide access to such books, records, or 
        accounts to State commissions and the Federal Energy Regulatory 
        Commission under the same terms and procedures as provided in 
        section 201(g) to the Federal Power Act.
    (d) Independent Audit Authority for State Commissions.--Any State 
commission with jurisdiction over a public-utility company that is an 
associate company of a registered holding company and that transacts 
business with a subsidiary company, affiliate, or associate company of 
such holding company engaging in any activities described in subsection 
(a) may request that the company engaging in such activities have 
performed, no more frequently than on an annual basis, an independent 
audit of transactions between such jurisdictional public-utility 
company and such company engaging in such activities. Upon such request 
from a State commission, the company engaging in such activities shall 
select an independent auditor and bear the costs of performing such an 
audit. The audit report shall be provided to the State commission 
within 6 months of the audit request.
    (e) Definitions.--All of the terms used in this section and defined 
in the Public Utility Holding Company Act of 1935 shall have the same 
meanings as defined therein.
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