[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR2.26]

[Page 29]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 2_GENERAL POLICY AND INTERPRETATIONS--Table of Contents
 
Sec. 2.26  Policies concerning review of applications under section 203.

    (a) The Commission has adopted a Policy Statement on its policies 
for reviewing transactions subject to section 203. That Policy Statement 
can be found at 77 FERC ] 61,263 (1996). The Policy Statement is a 
complete description of the relevant guidelines. Paragraphs (b)-(e) of 
this section are only a brief summary of the Policy Statement.
    (b) Factors Commission will generally consider. In determining 
whether a proposed transaction subject to section 203 is consistent with 
the public interest, the Commission will generally consider the 
following factors; it may also consider other factors:
    (1) The effect on competition;
    (2) The effect on rates; and
    (3) The effect on regulation.
    (c) Effect on competition. Applicants should provide data adequate 
to allow analysis under the Department of Justice/Federal Trade 
Commission Merger Guidelines, as described in the Policy Statement and 
Appendix A to the Policy Statement.
    (d) Effect on rates. Applicants should propose mechanisms to protect 
customers from costs due to the merger. If the proposal raises 
substantial issues of relevant fact, the Commission may set this issue 
for hearing.
    (e) Effect on regulation. (1) Where the merged entity would be part 
of a registered public utility holding company, if applicants do not 
commit in their application to abide by this Commission's policies with 
regard to affiliate transactions, the Commission will set the issue for 
a trial-type hearing.
    (2) Where the affected state commissions have authority to act on 
the transaction, the Commission will not set for hearing whether the 
transaction would impair effective regulation by the state commission. 
The application should state whether the state commissions have this 
authority.
    (3) Where the affected state commissions do not have authority to 
act on the transaction, the Commission may set for hearing the issue of 
whether the transaction would impair effective state regulation.

[Order 592, 61 FR 68606, Dec. 30, 1996]

 Statements of General Policy and Interpretations Under the Natural Gas 
                                   Act