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 federal law enacted in the United States that regulates the activities of public utility holding companies. A public utility holding company is a company that owns and controls electricity, natural gas, or water utilities. The main purpose of the PUHCA is to protect consumers of these utilities by preventing anti-competitive practices. The law includes provisions to prevent public utility holding companies from becoming monopolies. It prohibits these companies from owning and controlling utilities in multiple regions of the country, as well as from owning too large a percentage of utility stock. It also prohibits companies from engaging in unfair or deceptive practices, such as providing inadequate service or charging exorbitant rates. The PUHCA also requires public utility holding companies to follow disclosure rules and to be supervised by the Federal Energy Regulatory Commission (FERC). This allows the FERC to monitor the companies for compliance with the provisions of the law, as well as to prevent excessive pricing and other forms of abuse. Additionally, the law allows the FERC to break up monopolies and ensure that utility costs remain reasonable and affordable for consumers. This ensures that people in Washington who use electricity, natural gas, and water have access to reliable and reasonably priced service.

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

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