[Congressional Record Volume 144, Number 67 (Friday, May 22, 1998)]
[Senate]
[Pages S5472-S5473]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1997 CONCERNING THE REPEAL OF 
                                 PUCHA

 Mr. MACK. Mr. President, as the Congress continues to address 
the important work of reducing government spending, eliminating layers 
of bureaucratic waste, and increasing efficiency, we should focus on 
eliminating those regulations and programs which are no longer needed 
and are outdated. As Republicans, we must strive to enact legislation 
that embraces less government, less spending and more freedom. S. 621 
is a bill that embodies these important principles.
  This bill would reduce the unnecessary federal requirements included 
under the Public Utility Holding Act of 1935. Originally enacted to 
correct the abusive practices of holding companies during the 1920's 
and 30's, PUCHA is now an outdated law that is simply no

[[Page S5473]]

longer needed. It has served its purpose and outlived its usefulness. 
The Securities and Exchange Commission, which implemented the Act has 
urged its repeal for several years. The Federal Energy Regulatory 
Commission, along with many state public utility commissioners, also 
recognize the inefficiency of PUCHA's obsolete provisions and therefore 
support its repeal.
  It is widely recognized that the redundant and burdensome regulations 
of PUCHA have resulted in higher cost for consumers. These regulations 
not only restrict the ability of electric producers to compete in a 
free market economy, but also restrict these companies from responding 
to the seasonal nature of electric demand.
  Many States have begun to address this issue by moving forward to a 
fully competitive electric market that allows consumer choice. Due to 
the cumbersome regulatory structure imposed upon them under the PUCHA 
system, States will not be able to achieve the full benefits of 
competition.
  S. 621 seeks to correct this while retaining essential consumer 
protections. Further, this bill allows the utility industry the 
flexibility to invest, diversify, and respond to current consumer 
demand. By passing S. 621 we can reduce burdens on utilities and create 
savings which would then be passed on to ratepayers.
  Mr. President, the time to act on S. 621 is now. There is simply no 
reason why we should delay action on repeal when the passage of this 
bill clearly preserves the fundamental principles of free enterprise 
and capitalism on which our great country was founded. I thank the 
chair, and I yield the floor.

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