What is the purpose of the Public Utility Holding Company Act of 1935?

The Public Utility Holding Company Act of 1935 (PUHCA) was put in place to regulate public utility holding companies, which are businesses that own and control multiple public utilities. The act was passed as a means of protecting consumers and preventing unfair and monopolistic practices. The act was a response to the widespread consolidation of public utilities that had begun in the early 1900s. By preventing holding companies from holding large amounts of stock from unrelated utilities and from merging with other holding companies, PUHCA sought to protect other public utilities from unfair domination and to protect consumers from rate hikes due to monopolization. In South Dakota, the act resulted in the formation of the South Dakota Public Utilities Commission (PUC). The PUC is responsible for making sure that public utilities are providing safe, reliable services and products to customers. It establishes the terms of service for public utilities, and reviews rate increases that have been requested by the utilities. In addition, the PUC is responsible for ensuring that public utilities are providing fair and equal services to all customers, regardless of race, gender, or any other protected class. The Public Utility Holding Company Act of 1935 remains in place today and continues to be a key part of how public utilities are managed in South Dakota and throughout the United States. Its purpose is to ensure that rates remain fair and that public utilities remain safe and reliable.

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What is the purpose of the Public Utility Holding Company Act of 1935?

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