It's a law that only a mother could love.
It's tough to write another word about repealing the Public Utility Holding Company Act (PUHCA), or the "35 Act," as it is also...
Of course not. Did it make sense for Entergy to merge with FPL?
Second, I'll grant you that capitalization is important, but many execs today will tell you that credit rating agencies have done more to keep the industry's capital structure in line than PUHCA ever has. And third, Bonbright failed to anticipate that state utility commissions would adopt special rules governing contracts with affiliates. Everyone knows how the Virginia commission only recently stopped Dominion from moving its regulated generation over to its unregulated subsidiary and then establishing a supply contract with the regulated utility. We didn't need PUHCA for that.
If time heals all wounds, then it's high time to repeal PUHCA, a key weakness in a gravely wounded industry.
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