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CUB Action Alert!Save PUHCA! Contact Your Senators TodayThe Public Utility Holding Company Act (PUHCA), a little-known law that protects consumers, is in danger of being repealed by Congress. PUHCA is a consumer protection law that is designed to prohibit parent companies of utilities from engaging in high-risk investments that threaten the utility company. PUHCA requires utilities to list all their lobbyists, bans utilities and their executives from donating to federal campaigns, requires companies that own utilities to either incorporate in the state where the utility operates or register with the SEC, and has ensured that profits from utilities were not funneled into high-risk investments that could threaten the stability of the utility. Between 1929 and 1935, 53 utility holding companies went bankrupt; between the passage of PUHCA in 1935 and 2000 there were none. This is a critical law for protecting PGE customers in Oregon. According to Texas Pacific documents, the repeal of PUHCA would allow foreign and other companies currently prohibited from owning PGE to purchase PGE. Texas Pacific profits on its ownership of PGE could increase from around $700 million to more than $1 billion. Of course, the company that purchases PGE from Texas Pacific would expect to recover its purchase price from customers. PUHCA is an example of a federal law that works. Utility customers have benefited greatly from its protections,” said Bob Jenks, CUB Executive Director. You can help stop the repeal of PUHCA and keep customers protected. Contact Senator Smith (R-OR) and Senator Wyden (D-OR) and let them know you think PUHCA should not be repealed. Senator Ron Wyden:
Senator Gordon Smith |
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Citizens' Utility Board of Oregon |
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