17 Cfr 250.57

Securities and Exchange Commission

§ 250.58

from the average for the previous four
quarterly periods and the aggregate investment in exempt wholesale generators and foreign utility companies exceeds two percent of total capital invested in utility operations; provided,
this restriction will cease to apply once
consolidated retained earnings have returned to their pre-loss level; or
(3) In the previous fiscal year, the
registered holding company reported
operating losses attributable to its direct or indirect investments in exempt
wholesale generators and foreign utility companies, and such losses exceed
an amount equal to 5% of consolidated
retained earnings.
(c) An applicant that is unable to satisfy the requirements of paragraphs (a)
and (b) of this section must affirmatively demonstrate that the proposed
issue and sale of a security to finance
the acquisition of an exempt wholesale
generator, or the guarantee of a security of an exempt wholesale generator:
(1) Will not have a substantial adverse impact upon the financial integrity of the registered holding company
system; and
(2) Will not have an adverse impact
on any utility subsidiary of the registered holding company, or its customers, or on the ability of State commissions to protect such subsidiary or
customers.
(d) The Commission shall issue an
order with respect to a proposed transaction under section 32(h)(3) of the Act
within 120 days of completion of the
record concerning such issue, sale or
guarantee.

WReier-Aviles on DSKGBLS3C1PROD with CFR

[58 FR 51504, Oct. 1, 1993]

§ 250.54 Effect of exempt wholesale
generators on other transactions.
In determining whether to approve
the issue or sale of a security by a registered holding company for purposes
other than the acquisition of an exempt wholesale generator or a foreign
utility company, or other transactions
by such registered holding company or
its subsidiaries other than with respect
to exempt wholesale generators or foreign utility companies, the Commission shall not consider the effect of the
capitalization or earnings of any subsidiary which is an exempt wholesale
generator or a foreign utility company

upon the registered holding company
system if § 250.53 (a), (b) and (c) are satisfied.
[58 FR 51505, Oct. 1, 1993]

§ 250.57 Notices and reports to be filed
under section 33.
(a) Notification of Status as Foreign
Utility Company. Form U–57 (§ 259.207 of
this chapter), notification of status as
a foreign utility company, may be filed
by, or on behalf of, an entity that seeks
to become a foreign utility company. If
the criteria of section 33 of the Act are
otherwise met, the entity shall be
deemed to be a foreign utility company
upon the filing of such form.
(b) Reporting Requirement for Associate
Public-Utility Companies. A United
States public-utility company that is
an associate company of a foreign utility company shall file with the Commission a report on Form U–33–S
(§ 259.405 of this chapter) on or before
May 1 of each year. This requirement
shall not apply to public-utility companies that are subsidiaries of a registered holding company or of a holding company that is exempt from registration under section 3(a) (1) or (2) of
the Act, pursuant to section 250.2. In
addition, a holding company that is exempt from registration by Commission
order may file a single Form U–33–S on
behalf of all of its public-utility subsidiaries.
[58 FR 51505, Oct. 1, 1993]

§ 250.58 Exemption of investments in
certain nonutility companies.
(a) Exemption from Section 9(a). Section 9(a) of the Act (15 U.S.C. 79i(a))
shall not apply to:
(1) The acquisition by a registered
holding company, or a subsidiary company thereof, of the securities of an energy-related company; Provided, That,
after giving effect to any such acquisition, the aggregate investment by such
registered holding company and subsidiaries in all such companies does not
exceed the greater of:
(i) $50 million; or
(ii) 15% of the consolidated capitalization of such registered holding company, as reported in the registered
holding company’s most recent Annual

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