[Code of Federal Regulations]
[Title 17, Volume 3]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR250.52]

[Page 655-656]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
       CHAPTER II--SECURITIES AND EXCHANGE COMMISSION (CONTINUED)
 
PART 250_GENERAL RULES AND REGULATIONS, PUBLIC UTILITY HOLDING COMPANY 
ACT OF 1935--Table of Contents
 
Sec.  250.52  Exemption of issue and sale of certain securities.

    (a) Any registered holding-company subsidiary which is itself a 
public-utility company shall be exempt from section 6(a) of the Act (15 
U.S.C. 79f(a)) and rules thereunder with respect to the issue and sale 
of any security, of which it is the issuer if:
    (1) The issue and sale of the security are solely for the purpose of 
financing the business of the public-utility subsidiary company;
    (2) The issue and sale of the security have been expressly 
authorized by the state commission of the state in which the subsidiary 
company is organized and doing business; and
    (3) The interest rates and maturity dates of any debt security 
issued to an

[[Page 656]]

associate company are designed to parallel the effective cost of capital 
of that associate company.
    (b) Any subsidiary of a registered holding company which is not a 
holding company, a public-utility company, an investment company, or a 
fiscal or financing agency of a holding company, a public-utility 
company or an investment company shall be exempt from section 6(a) of 
the Act (15 U.S.C. 79f(a)) and related rules with respect to the issue 
and sale of any security of which it is the issuer if:
    (1) The issue and sale of the security are solely for the purpose of 
financing the existing business of the subsidiary company; and
    (2) The interest rates and maturity dates of any debt security 
issued to an associate company are designed to parallel the effective 
cost of capital of that associate company; Provided, That any security 
issued to an associate company by any energy-related company subsidiary, 
as defined in Sec.  250.58, shall not be exempt under these provisions 
unless, after giving effect to the issue of the security, the aggregate 
investment by a registered holding company or its subsidiary in the 
energy-related company subsidiary and all other energy-related company 
subsidiaries does not exceed the limitation in Sec.  250.58(a)(1).
    (c) Within ten days after the issue or sale of any security exempt 
under this section, the issuer or seller shall file with the Commission 
a Certificate of Notification on Form U-6B-2 (17 CFR 259.206) containing 
the information prescribed by that form. However, with respect to exempt 
financing transactions between associate companies which involve the 
repetitive issue or sale of securities or are part of an intrasystem 
financing program involving the issuance and sale of securities not 
exempted by this section, the filing of information on Form U-6B-2 may 
be done on a calendar quarterly basis.
    (d) The acquisition by a company in a registered holding company 
system of any security issued and sold by any associate company, 
pursuant to this section, is exempt from the requirements of section 
9(a) of the Act (15 U.S.C. 79i(a)); provided that the exemption granted 
by this paragraph (d) shall not apply to any transaction involving the 
issue and sale of securities to form a new subsidiary company of a 
registered holding company.
    (e) A copy of any Certificate of Notification on Form U-6B-2 (Sec.  
259.206) that is filed with this Commission under this section with 
respect to any security issued by a subsidiary of a registered holding 
company under paragraph (b) of this section and acquired by a public-
utility company that is an associate company of the issuer, shall be 
submitted concurrently to each state commission having jurisdiction over 
the retail rates of the public-utility company.

[60 FR 33639, June 28, 1995, as amended at 62 FR 7915, Feb. 20, 1997; 63 
FR 9741, Feb. 26, 1998]