Bill Text: IN HB1407 | 2013 | Regular Session | Introduced
Bill Title: Utility company mergers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Utilities and Energy [HB1407 Detail]
Download: Indiana-2013-HB1407-Introduced.html
Citations Affected: IC 8-1-2-83.
Synopsis: Utility company mergers. Requires the approval of the
utility regulatory commission before a public utility may sell stock,
enter into certain contracts, effect a reorganization, or acquire control
of another public utility.
Effective: July 1, 2003.
January 22, 2013, read first time and referred to Committee on Utilities and Energy.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
(1) a corporation organized or operating under IC 8-1-13; or
(2) a corporation organized under IC 23-17, some of the members of which are local district corporations (as defined in IC 8-1-13-23(b)).
(b) 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 from holding an official position or corporate office with the public utility, utility company, or holding company. Control is presumed to exist if a person, directly or indirectly, owns, controls, has the power to vote, or has the
power to vote proxies that constitute at least ten percent (10%) 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 company 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 the definition of "public utility" under 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 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 a public utility,
utility company, or 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
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 the approval
of the commission after a hearing.
(j) A public utility, except temporarily or in case of emergency and
for a period of not exceeding thirty (30) days, shall may not make any
special contract at rates other than those prescribed in its schedule of
rates theretofore filed with the commission, and in force, with any other
utility for rendering any service to or procuring any service from such
other utility, without the approval of the commission. It shall be lawful,
however, for any utility to make a contract for service to or from
another utility at rates previously filed with and approved by the
commission and in force.
(b) (k) The approval of the commission of the sale, assignment,
transfer, lease, or encumbrance of a franchise or any part thereof under
this section shall not revive or validate any lapsed or invalid franchise,
or enlarge or add to the powers and privileges contained in the grant of
any franchise or waive any forfeiture. No such A public utility shall
may not directly or indirectly purchase, acquire, or become the owner
of any of the property, stock, or bonds of any other public utility
authorized to engage or engaged in the same or a similar business, or
operating or purporting to operate under a franchise from the same or
any other municipality or under an indeterminate permit unless
authorized so to do by the commission.
(c) (l) Nothing contained in this section shall prevent the holding of
stock lawfully acquired before May 1, 1913, or prohibit, upon the
surrender or exchange of said stock pursuant to a reorganization plan,
the purchase, acquisition, taking, or holding by the owner of a
proportionate amount of the stock of any new corporation organized to
take over at foreclosure or other sale, the property of the corporation
whose stock has been thus surrendered or exchanged.
(d) Every (m) A contract by any a public utility for the purchase,
acquisition, assignment, or transfer to it of any of the stock of any other
public utility by or through any person, partnership, limited liability
company, or corporation without the approval of the commission shall
be void and of no effect, and no such transfer or assignment of such
stock upon the books of the corporation pursuant to any such contract
shall be effective for any purpose.
