Holding Company Act Release 27582
SECURITIES AND EXCHANGE COMMISSION
(Release No. 35-27582; 70-9675)
Energy East Corporation
Supplemental Order Granting an Extension of Time
October 23, 2002
Energy East Corporation ("Energy East"), Albany, New York, a registered public utility holding company, has filed a post-effective amendment with the Securities and Exchange Commission ("Commission"), to an application previously filed under section 13(b) of the Public Utility Holding Company Act of 1935, as amended ("Act"), and rules 87, 88, 90, and 91 under the Act ("Application"). The Commission issued a notice of the Application on September 1, 2000 (HCAR No. 27226).
By order dated October 13, 2000 (HCAR No. 27248) ("Service Company Order"), the Commission, among other things: (1) designated Energy East Management Corp. ("EE Management") as a subsidiary service company of Energy East in accordance with the provisions of rule 88; (2) authorized the delay, to a date no later than December 31, 2001 ("Transition Period"), of the full implementation of all expected services to be provided by EE Management; (3) authorized the delay of the full implementation of the required service agreements; and (4) authorized through the transitional period, agreements entered into between CIS Service Bureau, LLC and The Union Water-Power Company with other associate utility subsidiaries under an exemption to the at-cost standards of the Act until December 31, 2001 ("Temporary Exemption").1 The Transition Period accommodated Energy East's need to evaluate whether it would be economical and effective for EE Management to provide its associate companies with all of the services listed in the service agreements and whether additional services may also be needed. By Commission order dated December 21, 2001 (HCAR No. 27481) the Commission granted Energy East's request for an extension of the Transition Period to a date no later than November 30, 2002 ("Transition Period Extension"). The Transition Period Extension was intended to accommodate Energy East's need to evaluate and complete its implementation plan after the merger with RGS ("Merger"), which was authorized by Commission order dated June 27, 2002 (HCAR 27546). Because the Merger was completed beyond the date originally anticipated by Energy East when it filed for the Transition Period Extension, it now requests a further extension of the Transition Period to February 28, 2003.
Due notice of the filing of the Application has been given in the manner prescribed in rule 23 under the Act, and no hearing has been requested of or ordered by the Commission. On the basis of the facts in the record, it is found that the applicable standards of the Act and rules under the Act are satisfied, and that no adverse findings are necessary.
IT IS ORDERED under the applicable provisions of the Act and the rules under the Act, that the post-effective amendment to the Application is permitted to become effective immediately, subject to the terms and conditions prescribed in rule 24 under the Act.
For the Commission, by the Division of Investment Management, pursuant to delegated authority.
Margaret H. McFarland
1 The Service Company Order provided that the UWP and CIS agreements subject to the Temporary Exemption would either be terminated prior to December 31, 2001, or alternatively, the terms would be modified to comply with the at-cost pricing standard of section 13 of the Act and rules 90 and 91 under the Act. In accordance with the Service Company Order, prior to December 31, 2001, the UWP agreements were modified to comply with the at-cost standard of section 13 of the Act and rules 90 and 91 under the Act , and CIS agreements were terminated.