[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: 18CFR34.2]

[Page 240]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 34_APPLICATION FOR AUTHORIZATION OF THE ISSUANCE OF SECURITIES OR 
THE ASSUMPTION OF LIABILITIES--Table of Contents
 
Sec. 34.2  Placement of securities.

    (a) Method of issuance. Upon obtaining authorization from the 
Commission, utilities may issue securities by either a competitive bid 
or negotiated placement, provided that:
    (1) Competitive bids are obtained from at least two prospective 
dealers, purchasers or underwriters; or
    (2) Negotiated offers are obtained from at least three prospective 
dealers, purchasers or underwriters; and
    (3) The utility:
    (i) Accepts the bid or offer that provides the utility with the 
lowest cost of money for securities with fixed or variable interest or 
dividend rates, or
    (ii) Accepts the bid or offer that provides the utility with the 
greatest net proceeds for securities with no specified interest or 
dividend rates, or
    (iii) The utility has filed for and obtained authorization from the 
Commission to accept bids or offers other than those specified in 
paragraphs (a)(3)(i) or (a)(3)(ii) of this section.
    (b) Exemptions. The provisions of paragraph (a) of this section do 
not apply where:
    (1) The securities are to be issued to existing holders of 
securities on a pro rata basis;
    (2) The utility receives an unsolicited offer to purchase the 
securities;
    (3) The securities have a maturity of one year or less; or
    (4) The securities are to be issued in support of or to guarantee 
securities issued by governmental or quasi-governmental bodies for the 
benefit of the utility.
    (c) Prohibitions. No securities will be placed with any person who:
    (1) Has performed any service or accepted any fee or compensation 
with respect to the proposed issuance of securities prior to submission 
of bids or entry into negotiations for placement of such securities; or
    (2) Would be in violation of section 305(a) of the Federal Power Act 
with respect to the issuance.

[Order 575, 60 FR 4853, Jan. 25, 1995]