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TITLE 16
> CHAPTER
12 > SUBCHAPTER
II > § 824b

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§ 824b. Disposition of property; consolidations;
purchase of securities

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Current is This?

(a) Authorization

(1) No public utility shall, without first having secured an order of
the Commission authorizing it to do so—

(A) sell, lease, or otherwise dispose of the whole of its facilities
subject to the jurisdiction of the Commission, or any part thereof of a value in
excess of $10,000,000;

(B) merge or consolidate, directly or indirectly, such facilities or
any part thereof with those of any other person, by any means whatsoever;

(C) purchase, acquire, or take any security with a value in excess of
$10,000,000 of any other public utility; or

(D) purchase, lease, or otherwise acquire an existing generation
facility—

(i) that has a value in excess of $10,000,000; and

(ii)
that is used for interstate wholesale sales and over which
the Commission has jurisdiction for ratemaking purposes.

(2) No holding company in a holding company system that includes a
transmitting utility or an electric utility shall purchase, acquire, or take any
security with a value in excess of $10,000,000 of, or, by any means whatsoever,
directly or indirectly, merge or consolidate with, a transmitting utility, an
electric utility company, or a holding company in a holding company system that
includes a transmitting utility, or an electric utility company, with a value in
excess of $10,000,000 without first having secured an order of the Commission
authorizing it to do so.

(3) Upon receipt of an application for such approval the Commission
shall give reasonable notice in writing to the Governor and State commission of
each of the States in which the physical property affected, or any part thereof,
is situated, and to such other persons as it may deem advisable.

(4) After notice and opportunity for hearing, the Commission shall
approve the proposed disposition, consolidation, acquisition, or change in
control, if it finds that the proposed transaction will be consistent with the
public interest, and will not result in cross-subsidization of a non-utility
associate company or the pledge or encumbrance of utility assets for the benefit
of an associate company, unless the Commission determines that the
cross-subsidization, pledge, or encumbrance will be consistent with the public
interest.

(5) The Commission shall, by rule, adopt procedures for the
expeditious consideration of applications for the approval of dispositions,
consolidations, or acquisitions, under this section. Such rules shall identify
classes of transactions, or specify criteria for transactions, that normally
meet the standards established in paragraph (4). The Commission shall provide
expedited review for such transactions. The Commission shall grant or deny any
other application for approval of a transaction not later than 180 days after
the application is filed. If the Commission does not act within 180 days, such
application shall be deemed granted unless the Commission finds, based on good
cause, that further consideration is required to determine whether the proposed
transaction meets the standards of paragraph (4) and issues an order tolling the
time for acting on the application for not more than 180 days, at the end of
which additional period the Commission shall grant or deny the application.

(6) For purposes of this subsection, the terms “associate company”,
“holding company”, and “holding company system” have the meaning given those
terms in the Public Utility Holding Company Act of 2005 [42
U.S.C. 16451
et seq.].

(b) Orders of Commission

The Commission may grant any application for an order under
this section in whole or in part and upon such terms and conditions as it finds
necessary or appropriate to secure the maintenance of adequate service and the
coordination in the public interest of facilities subject to the jurisdiction of
the Commission. The Commission may from time to time for good cause shown make
such orders supplemental to any order made under this section as it may find
necessary or appropriate.

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Notes

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Update(s)
Parallel
authorities (CFR)
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