Citations Affected:
IC 8-1-2-83.
Synopsis: Jurisdiction over utility mergers. Prohibits certain corporate
transactions involving public utilities unless approved by the utility
regulatory commission.
Effective: July 1, 2003.
January 7, 2003, read first time and referred to Committee on Utility and Regulatory
Affairs.
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
SECTION 1.
IC 8-1-2-83
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 83. (a) No As used in this section,
"control" means the power to direct the management and policies
of a public utility, utility company, or holding company through:
(1) the ownership of voting securities or stock;
(2) the terms of a contract; or
(3) other means.
The term does not include power derived from holding an official
position or a corporate office with the public utility, utility
company, or holding company.
(b) For purposes of this section, control is presumed to exist if
a person, directly or indirectly:
(1) owns;
(2) controls;
(3) has the power to vote; or
(4) has the power to vote proxies that constitute;
at least twenty percent (20%) of the total voting power of the
public utility, utility company, or holding company.
(c) As used in this section, unless otherwise indicated, "holding
company" means a person that has control over one (1) or more:
(1) public utilities; or
(2) utility companies.
(d) As used in this section, "person" means an individual, a
firm, a corporation, a company, a partnership, a limited liability
company, an association, a trustee, a lessee, or a receiver.
(e) As used in this section, "reorganization" means a transaction
that, regardless of the means by which it is accomplished, results
in:
(1) a change in the ownership of a majority of the voting
capital stock of a public utility;
(2) a change in the ownership or control of an entity that owns
or controls a majority of the voting capital stock of a public
utility;
(3) the merger of two (2) public utilities; or
(4) the acquisition by one (1) public utility of substantially all
assets of another public utility.
(f) As used in this section, "utility company" has the same
meaning as is set forth in the definition of public utility in section
1 of this chapter, except that a utility company owns, operates,
manages, or controls a plant or equipment located outside Indiana.
(g) A public utility, as defined in section 1 of this chapter, shall may
not do any of the following without receiving the approval of the
commission after a hearing:
(1) Sell, assign, transfer, lease, or encumber its stock, franchise,
works, or system to any other person, partnership, limited liability
company, or corporation. or
(2) Contract for the operation of any part of its works or system by
any other person. partnership, limited liability company, or
corporation without the approval of the commission after hearing.
And no such
(3) Contract for or effect a reorganization of the public utility.
(4) Acquire control, directly or indirectly, of another public
utility, a utility company, or a holding company.
(h) A person may not acquire control, directly or indirectly, of
a public utility or the holding company of a public utility without
receiving the approval of the commission after a hearing.
(i) A holding company that controls at least one (1) public utility
may not acquire control of a utility company without receiving the
approval of the commission after a hearing.