PUHCA: Three squeaky pieces. [Public Utility Holding Company Act (PUHCA)-discussion of proposed amendments]
The consensus reached by the Senate Energy and Natural Resources Committee on changing the Public Utility Holding Company Act was an impressive first step. Taken with the commitment of Rep. Phil Sharp (D-Ind.), chair of the House Energy and Power Subcommittee, to support PUHCA change and bring the matter to resolution, the chances of action in the 102nd Congress have improved considerably. The authors are among those who remain uncertain whether this is a good idea, however. They think markets can be more competitive, and have no doubt that PUHCA inhibits at least the number of players, if not the zealousness of the competition. But they can foresee unintended results flowing from an open path for exempt wholesale generators. Aside from self-dealing and cross-subsidy issues in the case of utility affiliates (APPs), they are very concerned about the potential for increased monopolization and concentration in the fledgling independent energy industry itself. With the new ownership structures and increasing wholesaleization of the industry that amending PUHCA would enable, state regulators and consumer groups seek assurance that if the 56 year-old law is amended, the efficacy of state regulation and competition will be protected.
- OSTI ID:
- 5413956
- Journal Information:
- Electricity Journal; (United States), Vol. 4:5; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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