Utility Oversight: Survey of State Public Utility Commissions on Utility Commission Authorities and Reporting Responsibilities For Overseeing Utilities Since the Passage of EPAct 2005 (GAO-08-290SP, February 2008), an E-supplement to GAO-08-289

Utility Commission Authorities and Reporting Responsibilities

U.S. Government Accountability Office

Authorities Over Mergers and Corporate Structures

1. Which one of the following best describes your state laws or regulations relating to the formation of utility holding companies?
(Check one.)
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  What describes your state laws or regulations?

2. A merger is the combining of two or more previously unaffiliated corporations. An acquisition is the acquisition of one corporation by another, excluding ownership changes or control over specific assets, such as the purchase of power plants or other assets. Which of the following describes your commission's authority regarding mergers or acquisitions involving a state-regulated utility?
(Check all that apply.)
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  What describes your commission's authority?

3. For a typical merger, (over the last five years, consider the mergers your office examined if applicable), how much staff time in full-time equivalents (FTEs) did you commit to examining the merger? Please consider FTEs on an annual basis, so that if three staff worked for four months on the merger that would equal one FTE. If you do not have direct merger authority consider any time spent monitoring other merger reviews such as FERC or DOJ.
(Check one.)
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4. Over the last 5 years, how many mergers or acquisitions involving a commission regulated utility have been formally brought before your Commission for your approval?
(Check one.)
1. (Click here to skip to question 6.)
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5. Of those mergers you reviewed over the last five years how many did the Commission...
 
  a....prohibit?  
  b....approve without conditions?  
  c.... approve subject to conditions?  
  d.... decision pending?  
  e.... merger withdrawn prior to Commission decision?  
   

6. How important are each of the following factors to your commission's reviews of proposed mergers and acquisitions?
Check one for each row.
    Very Important Somewhat Important Moderately Important Slightly Important Not at all Important No opinion Does not describe Commission's practice when reviewing mergers
  a. Commission staff develop detailed analysis of merger including analysis of effect on competition, as appropriate, effect on rates/prices, effect on regulatory oversight, and other matters
  b. Commission retains outside consultants as necessary, to develop analysis of merger including analysis of effect on competition, as appropriate, effect on rates/prices, effect on regulatory oversight, and other matters
  c. Commission staff examines detailed filings (including detailed analyses of cost and rate impacts on customers, impacts on retail and wholesale markets, and impact on related regulatory matters) provided by companies
  d. Commission staff examines general filings (those without detailed analysis)
  e. Commission staff does an analysis or paper on the effects of a merger or acquisition
  f. Commission staff makes formal recommendation to commission
  g. Commission always holds hearings on proposed merger or acquisitions involving regulated companies
  h. During any hearings that may be held, commission staff testifies as to facts of application
  i. During any hearings that may be held, applicant testifies before commission
  j. During any hearings that may be held, parties opposed to merger or acquisition are provided a formal opportunity to testify
  k. Commission votes on application
 

7. Please identify the importance of each of the following factors as the commission evaluates proposed mergers and acquisitions
Check one for each row.
    Very Great Importance Great Importance Moderate Importance Some Importance Little or No Importance No Opinion Commission does not review mergers
  a. Resulting company size
  b. Impact on shareholders of state-regulated utility
  c. Impact on bondholders of state-regulated utility
  d. Impact on employees of state-regulated utility (e.g. potential for lost jobs)
  e. Whether resulting company will have headquarters located in another state
  f. Impact of merger or acquisition on financial complexity of the resulting company
   

    Very Great Importance Great Importance Moderate Importance Some Importance Little or No Importance No Opinion Commission does not review mergers
  g. Impact of combination on regulated rates (including any negotiated rate reductions, benefits-sharing, or other arrangements)
  h. Impact on retail competition (if relevant in your state)
  i. Impact on retail service quality
  j. Impact on number and types of retail services provided
  k. Impact on other state-regulated utilities
  l. Impact on wholesale market or wholesale competition
  m. Environmental impact
  n. Impact on ease or difficulty of regulation of the resulting company by your commission
  o. Size of non-rate financial concessions utility is willing to provide (e.g. enhanced renewables funding, low-income energy assistance programs, transmission construction, etc.)
 

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