Public Utility Holding Company Act of 1935: keep it on the books
Investor-owned utilities (IOUs) want to repeal the Public Utility Holding Company Act of 1935 in order to speed diversification and ease the industry's financial problems. Public utilities purchasing power from IOUs have a vested interest in whether diversification is the best answer to financial health and how it will affect their customers. Counter arguments point out that diversification increases the cost of capital and that there are no guarantees that diversification will be profitable. There is also the point that nonutility operations will be geared to benefit shareholders, not utility customers, and will distract management attention. The 1935 Act was successful in forcing the reorganization and divestiture of 85% of the electric utility industry, but registered holding companies now control 60 IOUs. A review of the current bills presents opposing views and concludes that past legislation reflects continued Congressional support for the original Act's objectives. (DCK)
- OSTI ID:
- 6729680
- Journal Information:
- Public Power; (United States), Journal Name: Public Power; (United States) Vol. 40:3; ISSN PUPOA
- Country of Publication:
- United States
- Language:
- English
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