§824b Disposition of Property; Consolidations; Purchase of Securities

Summary

Public utilities must get the Commission’s written OK before they sell, lease, merge, buy, or otherwise transfer utility facilities or securities worth more than $10,000,000, or before they buy an existing generation plant worth more than $10,000,000 that is used for interstate wholesale sales. Holding companies that include a transmitting or electric utility also must get the Commission’s OK before buying securities or merging with utilities or holding companies worth more than $10,000,000. When an application is filed, the Commission must notify the Governor and the State commission of each State where the affected physical property is located. After notice and a hearing, the Commission will approve the deal only if it is in the public interest and will not let a utility’s money or assets be used to benefit a related non-utility company—unless the Commission decides that would still be in the public interest. The Commission must make fast rules for routine transactions and give expedited review to those kinds. It must grant or deny other applications within 180 days, or the application is considered granted unless the Commission, for good cause, tolls the time for up to another 180 days. The terms “associate company,” “holding company,” and “holding company system” have the meanings given in the Public Utility Holding Company Act of 2005. Also, by 180 days after September 28, 2018, the Commission had to create a rule requiring utilities to notify it within 30 days after completing certain smaller mergers or consolidations if the assets involved exceed $1,000,000, and to keep paperwork burdens low. The Commission may approve deals with conditions needed to keep service adequate and coordinated and may later issue supplemental orders for good cause.