II. Background
In the 1980's and 1990's, Pacific Gas and Electric Company (PG&E), Southern California Edison Company (Edison), and SDG&E sought the Commission's permission to change their respective corporate structures and become part of holding company systems. The Commission has issued the following decisions approving the formation of PG&E Corporation, Edison International (EIX), Enova Corporation, and Sempra Energy, respectively, as holding companies:
PG&E D.96-11-017, 69 CPUC2d 167 (Nov. 6, 1996) (PG&E Authorization I); D.99-04-068, 194 P.U.R.4th 1 (April 22, 1999) (PG&E Authorization II);
SDG&E D.95-05-021, 59 CPUC2d 697 (May 10, 1995) (SDG&E Authorization I); D.95-12-018, 62 CPUC2d 626 (Dec. 6, 1995) (SDG&E Authorization II); and D.98-03-073, 184 P.U.R.4th 417 (March 26, 1998) (Sempra Merger Authorization); and
Edison D.88-01-063, 27 CPUC2d 347 (Jan. 28, 1988) (Edison Authorization).
Because of the potential for abuse arising from the holding company structure,1 the Commission's authorizations for the formation of respondent holding companies depended on respondents' compliance with a set of carefully considered conditions. The utilities and/or parent companies were required to pass, and file with this Commission, board resolutions agreeing to the conditions as a prerequisite to the Commission's permission to form the holding company structure. The parties executed these agreements as required.
1 See generally, section 1 of the Public Utility Holding Company Act (PUHCA), 15 U.S.C. § 79a (detailing potential abuses); SDG&E Authorization II, D.95-12-018, 62 CPUC2d at 634. The three respondent holding companies presently are exempt under section 3(a)(1), 15 U.S.C. § 79c(a)(1), from most of PUHCA's provisions.
