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This entry was published on 2014-09-22
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SECTION 110
Control of holding companies and of transactions between affiliated interests
Public Service (PBS) CHAPTER 48, ARTICLE 6
§ 110. Control of holding companies and of transactions between
affiliated interests. 1. The public service commission shall have
jurisdiction over holders of the voting capital stock of all public
utility companies under the jurisdiction of the commission to such
extent as may be necessary to enable the commission to require the
disclosure of the identity in respective interests of every owner of any
substantial interest in such voting capital stocks. One per centum or
more is a substantial interest, within the meaning of this subdivision.

2. The commission shall have jurisdiction over affiliated interests
having transactions, other than ownership of stock and receipt of
dividends thereon, with utility corporations and other utility companies
under the jurisdiction of the commission, to the extent of access to all
accounts and records of such affiliated interests relating to such
transactions, including access to accounts and records of joint or
general expenses, any portion of which may be applicable to such
transactions; and to the extent of authority to require such reports to
be submitted by such affiliated interests, as the commission may
prescribe. For the purposes of this section only, "affiliated interests"
include the following:

a. Every corporation and person owning or holding directly or
indirectly five per centum or more of the voting capital stock of such
utility corporation.

b. Every corporation and person in any chain of successive ownership
of five per centum or more of voting capital stock.

c. Every corporation five per centum or more of whose voting capital
stock is owned by any person or corporation owning five per centum or
more of the voting capital stock of such utility corporation or by any
person or corporation in any such chain of successive ownership of five
per centum or more of voting capital stock.

d. Every person who is an officer or director of such utility
corporation or of any corporation in any chain of successive ownership
of five per centum or more of voting capital stock.

e. Every corporation which has one or more officers or one or more
directors in common with such utility corporation.

f. Every corporation or person which the commission may determine as a
matter of fact after investigation and hearing is actually exercising
any substantial influence over the policies and actions of such utility
corporation even though such influence is not based upon stockholding,
stockholders, directors or officers to the extent specified in this
section.

g. Every person or corporation who or which the commission may
determine as a matter of fact after investigation and hearing is
actually exercising such substantial influence over the policies and
actions of such utility corporation in conjunction with one or more
other corporations and/or persons with which or whom they are related by
ownership and/or blood relationship or by action in concert that
together they are affiliated with such utility corporation within the
meaning of this section even though no one of them alone is so
affiliated. The word "corporation," when used in this subdivision and
for the purpose thereof, includes a trustee or trustees under any trust
agreement, including a voting trust agreement.

3. No management, construction, engineering or similar contract,
hereafter made, with any affiliated interest, as hereinbefore defined,
shall be effective unless it shall first have been filed with the
commission, and no charge for any such management, construction,
engineering or similar service, whether made pursuant to contract or
otherwise, shall exceed the reasonable cost of performing such service.
In any proceeding to determine the reasonable cost of such charge or
service the burden of proof shall be on the company. If it be found that
any such contract is not in the public interest, the commission, after
investigation and a hearing, is hereby authorized to disapprove such
contract.

4. All written contracts and all arrangements, hereafter made,
effected through corporate resolutions or otherwise, and verified
summaries of all unwritten contracts and arrangements, including such
contracts and arrangements with any affiliated interest as hereinbefore
defined, for the purchase of electric energy, gas (natural or
manufactured or a mixture of both), and/or water before the same shall
be effective, shall first be filed with the commission, and no charge
for such electric energy, gas, and/or water whether made pursuant to
contract or otherwise, shall exceed the just and reasonable charge for
such electric energy, gas and/or water. In any proceeding to determine
the reasonable cost of any such electricity, gas or water so sold and
delivered or to be delivered to such purchaser the burden of proof shall
be on the utility company purchasing the same. If it be found that any
such contract or arrangement is not in the public interest, the
commission, after investigation and hearing, is hereby authorized to
disapprove such contract or arrangement.