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

The Public Utility Holding Company Act of 1935 (PUHCA) is a law that was established by the federal government in order to regulate the structure and operations of utilities companies across the United States, including in the state of Maryland. The purpose of PUHCA was to protect the public from the economic and financial risks posed by large utilities holding companies. The law mandated that these companies provide proper disclosure to the public about their activities, and restricted the way in which they could access financing and enter into business transactions with others. The PUHCA was also intended to break up the large holding companies that had previously monopolized the utilities industry, while increasing competition. This would create a more level playing field that would lower the prices of energy, telephone, and other services for consumers. Additionally, the PUHCA mandated that any company who owns or controls more than 10 percent of the stocks of a utility company must be registered with the Securities and Exchange Commission. This was to ensure transparency and protect investors. Overall, the purpose of the Public Utility Holding Company Act of 1935 was to ensure fair competition and to protect the public from financial and economic risks posed by large utilities holding companies.

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

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