§ 110 — Control of holding companies and of transactions between affiliated interests

New York § 110

• Jurisdiction: New York
• Law PBS: Public Service
• Art. 6: Provisions Affecting Two or More Kinds of the Public Service and the Persons and Corporations Furnishing Such Service

Text

§ 110. Control of holding companies and of transactions between\naffiliated interests. 1. The public service commission shall have\njurisdiction over holders of the voting capital stock of all public\nutility companies under the jurisdiction of the commission to such\nextent as may be necessary to enable the commission to require the\ndisclosure of the identity in respective interests of every owner of any\nsubstantial interest in such voting capital stocks. One per centum or\nmore is a substantial interest, within the meaning of this subdivision.\n 2. The commission shall have jurisdiction over affiliated interests\nhaving transactions, other than ownership of stock and receipt of\ndividends thereon, with utility corporations and other utility companies\nunder the jurisdiction of the commission, to the extent of access to all\naccounts and records of such affiliated interests relating to such\ntransactions, including access to accounts and records of joint or\ngeneral expenses, any portion of which may be applicable to such\ntransactions; and to the extent of authority to require such reports to\nbe submitted by such affiliated interests, as the commission may\nprescribe. For the purposes of this section only, "affiliated interests"\ninclude the following:\n a. Every corporation and person owning or holding directly or\nindirectly five per centum or more of the voting capital stock of such\nutility corporation.\n b. Every corporation and person in any chain of successive ownership\nof five per centum or more of voting capital stock.\n c. Every corporation five per centum or more of whose voting capital\nstock is owned by any person or corporation owning five per centum or\nmore of the voting capital stock of such utility corporation or by any\nperson or corporation in any such chain of successive ownership of five\nper centum or more of voting capital stock.\n d. Every person who is an officer or director of such utility\ncorporation or of any corporation in any chain of successive ownership\nof five per centum or more of voting capital stock.\n e. Every corporation which has one or more officers or one or more\ndirectors in common with such utility corporation.\n f. Every corporation or person which the commission may determine as a\nmatter of fact after investigation and hearing is actually exercising\nany substantial influence over the policies and actions of such utility\ncorporation even though such influence is not based upon stockholding,\nstockholders, directors or officers to the extent specified in this\nsection.\n g. Every person or corporation who or which the commission may\ndetermine as a matter of fact after investigation and hearing is\nactually exercising such substantial influence over the policies and\nactions of such utility corporation in conjunction with one or more\nother corporations and/or persons with which or whom they are related by\nownership and/or blood relationship or by action in concert that\ntogether they are affiliated with such utility corporation within the\nmeaning of this section even though no one of them alone is so\naffiliated. The word "corporation," when used in this subdivision and\nfor the purpose thereof, includes a trustee or trustees under any trust\nagreement, including a voting trust agreement.\n 3. No management, construction, engineering or similar contract,\nhereafter made, with any affiliated interest, as hereinbefore defined,\nshall be effective unless it shall first have been filed with the\ncommission, and no charge for any such management, construction,\nengineering or similar service, whether made pursuant to contract or\notherwise, shall exceed the reasonable cost of performing such service.\nIn any proceeding to determine the reasonable cost of such charge or\nservice the burden of proof shall be on the company. If it be found that\nany such contract is not in the public interest, the commission, after\ninvestigation and a hearing, is hereby authorized to disapprove such\ncontract.\n 4. All written contracts and all arrangements, hereafter made,\neffected through corporate resolutions or otherwise, and verified\nsummaries of all unwritten contracts and arrangements, including such\ncontracts and arrangements with any affiliated interest as hereinbefore\ndefined, for the purchase of electric energy, gas (natural or\nmanufactured or a mixture of both), and/or water before the same shall\nbe effective, shall first be filed with the commission, and no charge\nfor such electric energy, gas, and/or water whether made pursuant to\ncontract or otherwise, shall exceed the just and reasonable charge for\nsuch electric energy, gas and/or water. In any proceeding to determine\nthe reasonable cost of any such electricity, gas or water so sold and\ndelivered or to be delivered to such purchaser the burden of proof shall\nbe on the utility company purchasing the same. If it be found that any\nsuch contract or arrangement is not in the public interest, the\ncommission, after investigation and hearing, is hereby authorized to\ndisapprove such contract or arrangement.\n