18 Cfr 366.1

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ELECTRONIC CODE OF FEDERAL REGULATIONS
e-CFR data is current as of March 24, 2021
Title 18 → Chapter I → Subchapter U → Part 366 → Subpart A → §366.1
Title 18: Conservation of Power and Water Resources
PART 366—BOOKS AND RECORDS
Subpart A—Definitions and Provisions Under PUHCA 2005, the Federal Power Act
and the Natural Gas Act
§366.1 Definitions.
For purposes of this part:
Affiliate. The term “affiliate” of a company means any company, 5 percent or
more of the outstanding voting securities of which are owned, controlled, or held
with power to vote, directly or indirectly, by such company.
Associate company. The term “associate company” of a company means any
company in the same holding company system with such company.
Commission. The term “Commission” means the Federal Energy Regulatory
Commission.
Company. The term “company” means a corporation, partnership, association,
joint stock company, business trust, or any organized group of persons, whether
incorporated or not, or a receiver, trustee, or other liquidating agent of any of the
foregoing.
Construction. The term “construction” means any construction, extension,
improvement, maintenance, or repair of the facilities or any part thereof of a
company, which is performed for a charge.
Electric utility company. The term “electric utility company” means any company
that owns or operates facilities used for the generation, transmission, or distribution
of electric energy for sale. For the purposes of this subchapter, “electric utility
company” shall not include persons that engage only in marketing of electric energy.
Exempt wholesale generator. The term “exempt wholesale generator” means
any person engaged directly, or indirectly through one or more affiliates as defined
in this subchapter, and exclusively in the business of owning or operating, or both
owning and operating, all or part of one or more eligible facilities and selling electric

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energy at wholesale. For purposes of establishing or determining whether an entity
qualifies for exempt wholesale generator status, sections 32(a)(2) through (4), and
sections 32(b) through (d) of the Public Utility Holding Company Act of 1935 (15
U.S.C. 79z-5a(a)(2)-(4), 79z-5a(b)-(d)) shall apply.
Foreign utility company. The term “foreign utility company” means any company
that owns or operates facilities that are not located in any state and that are used for
the generation, transmission, or distribution of electric energy for sale or the
distribution at retail of natural or manufactured gas for heat, light, or power, if such
company:
(1) Derives no part of its income, directly or indirectly, from the generation,
transmission, or distribution of electric energy for sale or the distribution at retail of
natural or manufactured gas for heat, light, or power, within the United States; and
(2) Neither the company nor any of its subsidiary companies is a public-utility
company operating in the United States.
Gas utility company. The term “gas utility company” means any company that
owns or operates facilities used for distribution at retail (other than the distribution
only in enclosed portable containers or distribution to tenants or employees of the
company operating such facilities for their own use and not for resale) of natural or
manufactured gas for heat, light, or power. For the purposes of this subchapter, “gas
utility company” shall not include entities that engage only in marketing of natural
and manufactured gas.
Goods. The term “goods” means any goods, equipment (including machinery),
materials, supplies, appliances, or similar property (including coal, oil, or steam, but
not including electric energy, natural or manufactured gas, or utility assets) which is
sold, leased, or furnished, for a charge.
Holding company. (1) In general. The term “holding company” means—
(i) Any company that directly or indirectly owns, controls, or holds, with power to
vote, 10 percent or more of the outstanding voting securities of a public-utility
company or of a holding company of any public-utility company; and
(ii) Any person, determined by the Commission, after notice and opportunity for
hearing, to exercise directly or indirectly (either alone or pursuant to an arrangement
or understanding with one or more persons) such a controlling influence over the
management or policies of any public-utility company or holding company as to
make it necessary or appropriate for the rate protection of utility customers with
respect to rates that such person be subject to the obligations, duties, and liabilities
imposed by this subtitle upon holding companies.
(2) Exclusions. The term ”holding company” shall not include—

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(i) A bank, savings association, or trust company, or their operating subsidiaries
that own, control, or hold, with the power to vote, public utility or public utility holding
company securities so long as the securities are—
(A) Held as collateral for a loan;
(B) Held in the ordinary course of business as a fiduciary; or
(C) Acquired solely for purposes of liquidation and in connection with a loan
previously contracted for and owned beneficially for a period of not more than two
years; or
(ii) A broker or dealer that owns, controls, or holds with the power to vote public
utility or public utility holding company securities so long as the securities are—
(A) Not beneficially owned by the broker or dealer and are subject to any voting
instructions which may be given by customers or their assigns; or
(B) Acquired in the ordinary course of business as a broker, dealer, or
underwriter with the bona fide intention of effecting distribution within 12 months of
the specific securities so acquired.
Holding company system. The term “holding company system” means a holding
company, together with its subsidiary companies.
Jurisdictional rates. The term “jurisdictional rates” means rates accepted,
established or permitted by the Commission for the transmission of electric energy
in interstate commerce, the sale of electric energy at wholesale in interstate
commerce, the transportation of natural gas in interstate commerce, and the sale in
interstate commerce of natural gas for resale for ultimate public consumption for
domestic, commercial, industrial, or any other use.
Natural gas company. The term “natural gas company” means a person
engaged in the transportation of natural gas in interstate commerce or the sale of
such gas in interstate commerce for resale.
Person. The term “person” means an individual or company.
Public utility. The term “public utility” means any person who owns or operates
facilities used for transmission of electric energy in interstate commerce or sales of
electric energy at wholesale in interstate commerce.
Public-utility company. The term “public-utility company” means an electric
utility company or a gas utility company. For the purposes of this subchapter, the
owner-lessors and owner participants in lease financing transactions involving utility
assets shall not be treated as “public-utility companies.”

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Service. The term “service” means any managerial, financial, legal, engineering,
purchasing, marketing, auditing, statistical, advertising, publicity, tax, research, or
any other service (including supervision or negotiation of construction or of sales),
information or data, which is sold or furnished for a charge.
Service company. The term “service company” means any associate company
within a holding company system organized specifically for the purpose of providing
non-power goods or services or the sale of goods or construction work to any public
utility or any natural gas company, or both, in the same holding company system.
State commission. The term “state commission” means any commission, board,
agency, or officer, by whatever name designated, of a state, municipality, or other
political subdivision of a state that, under the laws of such state, has jurisdiction to
regulate public-utility companies.
Subsidiary company. The term “subsidiary company” of a holding company
means—
(1) Any company, 10 percent or more of the outstanding voting securities of
which are directly or indirectly owned, controlled, or held with power to vote, by such
holding company; and
(2) Any person, the management or policies of which the Commission, after
notice and opportunity for hearing, determines to be subject to a controlling
influence, directly or indirectly, by such holding company (either alone or pursuant to
an arrangement or understanding with one or more other persons) so as to make it
necessary for the rate protection of utility customers with respect to rates that such
person be subject to the obligations, duties, and liabilities imposed by this subtitle
upon subsidiary companies of holding companies.
Voting security. The term “voting security” means any security presently
entitling the owner or holder thereof to vote in the direction or management of the
affairs of a company. For the purposes of this subchapter, the term “voting security”
shall not include member interests in electric power cooperatives.
[Order 667-A, 71 FR 28457, May 16, 2006, as amended by Order 667-B, 71 FR 42755,
July 28, 2006; Order 731, 74 FR 68529, Dec. 28, 2009]
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