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

The Public Utility Holding Company Act of 1935 (PUHCA) was created with the purpose of protecting consumers from unfair and anti-competitive business practices in the utility industry. This act formed the Federal Power Commission (FPC), which was in charge of regulating public utilities. The FPC was granted authority by PUHCA to regulate any company that owned or operated any public utilities in more than one state, such as electricity, gas, or oil. The act also set forth various provisions to limit how utility companies were allowed to operate. These provisions prohibited utility companies from having any undue influence over each other, or from operating as a monopoly, by engaging in unfair practices such as price-fixing. Additionally, PUHCA required that utility companies cover their costs and sell their services to the public at lower, regulated prices. Overall, the purpose of the Public Utility Holding Company Act of 1935 was to protect consumers from anti-competitive or unfair practices in the utility industry. By setting the specific regulations for utilities companies, PUHCA allowed the FPC to regulate the industry, thus ensuring that customers would not be taken advantage of by companies engaged in unfair business practices.

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

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