HB330: relative to public utilities mergers and acquisitions.

HB 330 - AS INTRODUCED

2003 SESSION

03-0067

03/09

HOUSE BILL 330

AN ACT relative to public utilities mergers and acquisitions.

SPONSORS: Rep. McHugh, Hills 61; Rep. Crane, Hills 59; Rep. Gibson, Hills 58; Rep. Sorg, Graf 11

COMMITTEE: Science, Technology and Energy

ANALYSIS

This bill:

I. Requires that a utility initiating a merger or acquisition proceeding before the public utilities commission send notice to customers, shareholders, and municipalities.

II. Changes the standard for public utilities commission review of utility mergers and acquisitions.

III. Requires notice to municipalities if the directors of a public utility vote to sell the utility.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0067

03/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to public utilities mergers and acquisitions.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Proceedings Before the Public Utilities Commission; Notice. Amend RSA 365 by inserting after section 10-a the following new section:

365:10-b Notice by Utility. If a utility initiates any merger or acquisition proceeding before the commission, the utility shall send notice by mail to the customers and shareholders of the utility and to all municipalities where customers of the utility are located. The notice shall be mailed on the same date that the utility initiates the proceeding, and shall include a description of the nature of the proceeding, a description of the action, relief, or approval sought, the anticipated effect of the merger or acquisition on customers, shareholders, and municipalities, how recipients of the notice may participate in the proceeding, and the dates of any applicable hearings and deadlines. If the dates of hearings and deadlines are not known at the time the proceeding is initiated, the utility shall send an additional notice when such dates are established.

2 Public Utilities Stock and Securities; Corporate Merger or Acquisition. Amend RSA 369:8, II(b) to read as follows:

(b)(1) To the extent that the approval of the commission is required by any other statute for any corporate merger or acquisition involving parent companies of a public utility whose rates, terms, and conditions of service are regulated by the commission, the approval of the commission shall not be required if the public utility files with the commission a detailed written representation no less than [60] 180 days prior to the anticipated completion of the transaction that the transaction will not [have an adverse effect on rates, terms, service, or operation of the public utility within the state] be contrary to the public interest.

(2) If the commission does not issue an order within 60 days of the completed filing, the transaction shall be considered approved as filed.

(3) If the commission within 30 days, and after an opportunity for a public hearing, issues a preliminary written determination that such a merger or acquisition will [have an adverse effect on rates, terms, service, or operation of the public utility in the state] be contrary to the public interest, the commission shall allow the utility at least 30 days to amend its filing in order to address the commission's preliminary determination.

(4) The commission may extend making its preliminary determination of [adverse effect on rates, terms, service, or operation of the public utility in the state] public interest for 30 days.

(5) Should the commission find within 30 days after receiving the amended filing, the proposed merger or acquisition [has an adverse effect] is contrary to the public interest, the commission shall review the transaction under the statute which would have otherwise applied but for this section, and, after an opportunity for a public hearing, issue a ruling based upon the other applicable statute or statutes within 60 days of its determination of [adverse effect] contrary to the public interest.

3 New Subparagraph; Public Utilities Stock and Securities; Notice of Vote to Sell. Amend RSA 369:8, II by inserting after subparagraph (b) the following new subparagraph:

(c) If the directors of a public utility vote to sell the utility, the utility shall give notice of the vote to the 3 municipalities where the utility has the most customers, and the municipalities shall have the right of first refusal.

4 Effective Date. This act shall take effect 60 days after its passage.