[Congressional Record (Bound Edition), Volume 149 (2003), Part 22]
[Extensions of Remarks]
[Pages 31109-31110]
[From the U.S. Government Publishing Office, www.gpo.gov]




             CONFERENCE REPORT ON ENERGY POLICY ACT OF 2003

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                               speech of

                        HON. W.J. (BILLY) TAUZIN

                              of louisiana

                    in the house of representatives

                      Thursday, November 20, 2003

  Mr. TAUZIN. Mr. Speaker, I rise to explain for the record the role of 
the FERC in regulating public utility holding companies following 
repeal of the Public Utility Holding Company Act. The repeal contains 
several savings clauses. In essence, the savings clauses state that 
none of them give the FERC any new authority. They confirm that once 
PUHCA repeal takes effect, the FERC will continue to apply existing 
utility rate regulation to public utilities within formerly registered 
holding companies under PUHCA of 1935.

[[Page 31110]]

  Particularly, Section 1275(a) states if a state commission disagrees 
with the allocation of costs of non-power goods or services provided by 
an affiliate organized specifically for that purpose, typically a 
service company, either the state commission or the holding company 
system may ask the FERC to resolve the allocation issue. The FERC will 
then make a determination of the proper allocation of such costs under 
the standards contained in the section, but only at the request of a 
State commission or a holding company system. The FERC has no authority 
to review or approve such cost allocations absent such a request. 
Section 1275(b) merely states that both the FERC and the State 
commissions retain whatever rights they now have to review cost 
allocations from service companies among public utilities for rate-
making purposes.

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