To permit registered utility holding companies to participate in the provision of telecommunications services.

Authorizes any subsidiary, affiliate, or associate company of a registered public utility holding company (except a public utility company) to engage in the provision of telecommunications services, information services, or other services or products subject to the jurisdiction of the Federal Communications Commission under the Communications Act of 1934, or energy or demand-side management services. Provides that the Securities and Exchange Commission shall have no jurisdiction under the Public Utility Holding Company Act of 1935 over a registered holding company or an affiliate engaged in such activities.

Declares that this Act shall not prevent the Federal Energy Regulatory Commission or a State commission from prohibiting the cross-subsidization of activities by a public utility company. Requires: (1) that an entity be separate from a public utility company in order to conduct activities authorized under this Act; and (2) the maintenance of separate books and records.

Allows State commissions with appropriate jurisdiction to request independent audits of transactions between public utility companies and an affiliate engaging in such activities.