Public Utility Holding Company Act Amendments of 1983

Public Utility Holding Company Act Amendments of 1983 - Amends the Public Utility Holding Company Act of 1935 to revise the definition of "utility assets" to mean facilities of electric and gas utilities which are directly employed in, and the primary function of which is, the generation, transmission, or distribution of electric energy or the distribution at retail of natural or manufactured gas. Provides that the term "issue" includes the sale, renewal, guaranty of, or assumption of liability on any security. Defines the term "consumers" to mean the utility customers of a public utility company which is an associate company in a holding company system.

Provides that the Securities and Exchange Commission (SEC) may exempt a holding company from all the provisions of such Act except certain requirements with respect to the acquisition of securities and utility assets and provisions under this Act with respect to State commission monitoring of and access to information on holding company business activity. Prohibits such an exemption if the SEC finds that the exemption materially adversely affects the public utility business of a holding company. Provides that a holding company shall receive such an exemption if such holding company has only one subsidiary company which is a public utility company and the operations of such subsidiary do not extend beyond the State in which it is organized and contiguous States. Requires the SEC to revoke an exemption if such exemption materially adversely affects the public utility business of a holding company system. Provides that such an exemption shall remain in effect if the holding company submits to the SEC a plan which prevents such adverse effects.

Requires a holding company to produce information with respect to its nonutility business activities upon the written request of a State commission having jurisdiction to regulate a public utility company in the holding company system. Authorizes the SEC, upon its own motion or upon the application of such a State commission, to provide for the filing with the SEC and the State commission of uniform periodic reports concerning the nonutility business activities of holding company systems.

Eliminates the prohibition which applies to the sale of securities by a registered holding company or subsidiary thereof and to the alteration of stockholder rights by such company or subsidiary absent a declaration approved by the SEC.

Revises the requirements for the types of security transactions by registered holding and subsidiary companies which are exempt from the prohibition on the issuance of securities by registered holding and subsidiary companies. Authorizes the SEC to establish requirements with respect to the consolidated capital structure of a registered holding company system which are needed to prevent an unreasonable economic risk to investors or consumers. Authorizes the SEC, upon application by a registered holding or subsidiary company, to exempt the issue of any security from such prohibition if it is not necessary to prohibit such issue to protect the public interest or to protect investors and consumers.

Makes declarations with respect to security transactions filed by registered companies pursuant to the Public Utility Holding Company Act of 1935 effective on the twentieth day after filing, absent SEC disapproval or approval subject to terms and conditions in the form of a preliminary order. Sets forth the procedures for final approval or disapproval of a declaration. Permits the filing of amendments to a declaration.

Authorizes the SEC to permit a declaration to become effective earlier than the dates specified under this Act. Requires the SEC to permit a declaration to become effective unless the acts which are the subject of the declaration are not in compliance with State laws or involve an unreasonable economic risk to investors or consumers. (Currently there are several conditions precedent to permitting a declaration to become effective.)

Makes it unlawful for a registered holding or subsidiary company to acquire any significant interest in any business other than the public utility business, unless there is in effect a diversification plan for the holding company system and such acquisition is consistent with the plan or unless such acquisition has been expressly authorized by the SEC. Makes it unlawful for a person who is not a registered holding or subsidiary company to acquire a public utility security if such acquisition would make such person a holding company and such acquisition is not pursuant to a plan initiated by the public utility company, unless the acquisition has been approved by the SEC.

Requires the SEC to approve an application filed for the acquisition of an interest in any business other than the public utility business unless the acquisition is likely to result in an unnecessary and unreasonable cost increase to consumers or to impair an associate public utility company's performance of its services.

Permits a registered holding company or subsidiary thereof to apply for the removal or modification of any terms and conditions prescribed in an SEC order issued before the enactment of this Act approving the acquisition of an interest in any business other than the public business. Provides that such application shall be considered approved on the sixtieth day after it has been filed unless the SEC determines that the removal or modification involved is likely to result in an unnecessary and unreasonable cost increase to consumers or to impair an associate public utility company's performance of its services.

Permits a registered holding company to file with the SEC a diversification plan providing information with respect to its intentions within two years from the date of filing to diversify in businesses other than the public utility business. Makes such plan effective 60 days after it has been filed unless the SEC disapproved it or a State commission requests the SEC to extend the period of review for such plan. Requires the SEC to approve a diversification plan unless the plan is likely to result in an unnecessary and unreasonable cost increase to consumers or to impair an associate public utility company's performance of its services.

Requires that the SEC permit a registered holding company to retain an interest in any nonutility related business unless the retention of such interest materially adversely affects the public utility business of the holding company system. (Currently the SEC may permit such a business interest if it is reasonably incidental or economically necessary to the operations of one or more integrated public utility systems.)

Requires that the SEC permit a registered holding company to retain any combination in existence on May 1, 1981, of gas utility systems and electric utility systems unless such a combination of systems does not comply with certain location and size requirements under this Act.

Eliminates the prohibition on: (1) borrowing by a registered holding company from a public utility company in the same holding company system; (2) the solicitation of proxies, powers of attorney, consent, or authorization with respect to the securities of a registered holding company or a subsidiary thereof; (3) negotiations or transactions by an affiliate of a public utility company; (4) political contributions by a registered holding company or subsidiary thereof; and (5) representation before Congress, the SEC, or the Federal Energy Regulatory Commission. Provides that the SEC shall not have authority to prohibit: (1) any sale of utility assets used by a public utility company in a holding company system if such sale is expressly authorized by the appropriate State commission; or (2) any transaction with a public utility company which is expressly authorized or approved by the appropriate State commission.

Sets forth the basis for determining the costs to be charged to an associate company by a subsidiary company of a registered holding company with respect to the performance of any sales, service, or construction contract. Authorizes the SEC, upon application by a registered holding company or subsidiary thereof, to permit such subsidiary to perform a sales, service, or construction contract for an associate company at a price in excess of the costs of the subsidiary if such performance is in the public interest or in the interest of investors or consumers.

Eliminates provisions dealing with restrictions on officers and directors of registered holding companies. Authorizes the SEC to prohibit officers and directors of investment banker or banking associations or of banks, trust companies, banking associations, or banking firms associated with the marketing of securities of a public utility company from serving as officers or directors of a registered holding company or any associate company if it is necessary to protect the interests of consumers.

Requires holding companies filing an application for exemption from the Public Utility Holding Company Act of 1935 and registered holding companies or subsidiaries thereof filing a declaration, a diversification plan, or an application for approval of an acquisition of an interest in a nonutility business to give contemporaneous notice of such filings to the appropriate State commission.