A bill to amend the Public Utility Holding Company Act of 1935 and the Federal Power Act to clarify the respective regulatory authorities of Federal and State agencies respecting certain transactions by electric utility companies.

Amends the Public Utility Holding Company Act of 1935 to require the Securities and Exchange Commission to notify the appropriate State ratemaking authority whenever an electric utility files a securities transaction declaration which might affect electric energy costs to such utility's retail customers.

Amends the Federal Power Act to provide that State ratemaking authorities are not preempted by such Act from: (1) examining rates or changes affected by electric energy purchases among public utilities subject to the jurisdiction of the Federal Energy Regulatory Commission; or (2) determining not to consider all or part of any such rate or charge when establishing rates and charges for the resale of electric energy by the utility to State consumers.

Prohibits the Commission from permitting any rates to take effect regarding the purchase of electric energy by one associate company of a public utility holding company system from another associate company of the same system, unless the appropriate State ratemaking authority has approved such rates.