Public Utility Financial Reform Act

Public Utility Financial Reform Act - Amends the Public Utility Holding Company Act of 1935 to provide a new exemption from the provisions of such Act (except the prohibition on acquisitions without SEC approval of public-utility company securities by any persons who are affiliates of such company) for a holding company with one subsidiary public-utility company whose operations do not extend beyond the State in which it is organized and States contiguous to such State.

Declares that the exemption of a holding company shall not be affected by the ownership of a public-utility company by a public-utility subsidiary of such holding company if the holding company is predominantly a public-utility company whose operations do not extend beyond the State in which it is organized and States contiguous to such State.

Permits a holding company which is exempt under this Act to engage in any business, but requires that any such business which is not incidental or necessary to the operation of a public-utility company be conducted through a separate nonutility subsidiary of such holding company.