Public Utility Holding Company Act (PUHCA) of 1935, United States
Published: September 4, 2008, 10:18 pm
Updated: September 4, 2008, 10:18 pm
This article has been reviewed by the following Topic Editor:
Cutler J. ClevelandThe Public Utility Holding Company Act (PUHCA) of 1935 was enacted to discourage dishonest business practices of large-scale utility holding companies throughout the 1920s and 30s. These large holding companies had only a few investors who controlled the shares of several subordinate utility companies. Therefore, having only a few holding companies with the means to control half of the utility industry brought about various problems in the industry. Although utilities are traditionally natural monopolies, they are still regulated by state and federal governments that protect consumers by ensuring low electricity prices and efficient operation; PUHCA enables governments to have such authority. Governments can regulate business practices that would weaken the stability of the utility company, increase consumer rates, or harm the environment. PUHCA also prevents utility holding companies from funding unregulated business activities with profits acquired by regulated business activities.
Further Reading
Are you absolutely sure you want to delete this article? This process cannot be undone and is permanent.
Yes, Delete This Article
Are you absolutely sure you want to remove this article? This process cannot be undone and is permanent.
Yes, Remove This Article
Citation
Alejandra Roman (Lead Author);Cutler J. Cleveland (Topic Editor) "Public Utility Holding Company Act (PUHCA) of 1935, United States". In: Encyclopedia of Earth. Eds. Cutler J. Cleveland (Washington, D.C.: Environmental Information Coalition, National Council for Science and the Environment). [First published in the Encyclopedia of Earth September 4, 2008; Last revised Date September 4, 2008; Retrieved May 23, 2013 <http://www.eoearth.org/article/Public_Utility_Holding_Company_Act_(PUHCA)_of_1935,_United_States>
The Author
Editorial Assistant
The Encyclopedia of Earth
Alejandra Roman graduated in May 2006 from Boston University with a double B.A. in Environmental Policy and Analysis and Hispanic Language and Literature. While studying, she worked as a research assistant for Cutler Cleveland at Boston University's Center for Energy and Environmental Studies, mainly assisting in the development of the Earth Portal and Encyclopedia of Earth. After graduation, she moved to Washingto ... (Full Bio)
The Public Utility Holding Company Act (PUHCA) of 1935 was enacted to discourage dishonest business practices of large-scale utility holding companies throughout the 1920s and 30s. These large holding companies had only a few investors who controlled the shares of several subordinate utility companies. Therefore, having only a few holding companies with the means to control half of the utility industry brought about various problems in the industry. Although utilities are traditionally natural monopolies, they are still regulated by state and federal governments that protect consumers by ensuring low electricity prices and efficient operation; PUHCA enables governments to have such authority. Governments can regulate business practices that would weaken the stability of the utility company, increase consumer rates, or harm the environment. PUHCA also prevents utility holding companies from funding unregulated business activities with profits acquired by regulated business activities.
Further Reading
Are you absolutely sure you want to delete this article? This process cannot be undone and is permanent.
Yes, Delete This Article
Are you absolutely sure you want to remove this article? This process cannot be undone and is permanent.
Yes, Remove This Article
Site Options
0 Comments
Add Comment