This Act authorizes the regulation of interstate holding companies that are engaged in the retail distribution of natural gas or in the electric utility business, with particular attention to perceived abuses by this type of business. In short, this Act provides significant restrictions on some types of public utility holding companies in order to forestall the possibility of monopolies being created or an excessive amount of control over this type of company being gathered by a small number of individuals. Selected provisions of the Act are as follows:
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Provides for the elimination of any accumulation of inequitable voting power by certain shareholders.
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Identifies the types and amounts of securities that a holding company should issue or acquire.
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Requires holding companies to first obtain the approval of the SEC before acquiring any securities, utility assets, or ownership interest in any other business.
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Requires that the pricing of any service or construction contracts that holding companies enter into with each other must be fairly priced, so there is no undue transfer of assets amongst companies as a result of the contracts.