Exemption of Acquisition by Registered Public-Utility Holding Companies of Securities of Nonutility Companies Engaged in Certain Energy-Related and Gas-Related Activities; Exemption of Capital Contributions and Advances to Such Companies

The Commission is adopting new rule 58 and conforming amendments to rules 45(b) and 52(b) under the Public Utility Holding Company Act of 1935 ("Holding Company Act' or "Act'). Rule 58 exempts from the requirement of prior Commission approval a direct or indirect acquisition by a registered holding company or its subsidiary of an interest in an "energy-related company,' as defined in the rule, subject to certain limitations and reporting requirements; and by a gas registered holding company or its subsidiary of an interest in a "gas-related company,' as defined in the rule, subject to certain reporting requirements. The rule and related rule amendments eliminate unnecessary regulatory limitations on investments in certain businesses that are closely related to the core utility business of the registered system while establishing disclosure and reporting requirements that promote the public interest and serve to protect consumers and investors.