A. The Corporation Commission shall approve any merger or other acquisition of control referred to in Section 191.2 of this title upon such terms and conditions as it deems necessary or appropriate in the public interest unless, after a public hearing thereon, it finds that one or more of the following conditions exist or will exist if such merger or other acquisition of control is consummated, in which event it shall disapprove such merger or acquisition of control and the same shall not be consummated:
1. The acquisition of control would adversely affect the contractual obligations of the domestic public utility or of any person controlling such domestic public utility, or its ability or commitment to continue to render the same level of service to its customers that the domestic public utility is currently rendering;
2. The effect of the merger or other acquisition of control would be substantially to lessen competition in the furnishing of public utility service in this state;
3. The financial condition of any acquiring party is such as might jeopardize the financial stability of the domestic public utility or any person controlling such domestic public utility or otherwise prejudice the interest of the domestic public utility's customers;
4. The plans or proposals which an acquiring party has to liquidate the public utility or any such controlling person, sell its assets, or a substantial part thereof, or consolidate or merge it with any person, or to make any other material change in its investment policy, business or corporate structure or management, would be detrimental to the customers of the domestic public utility and not in the public interest;
5. The competence, experience and integrity of those persons who would control the operation of the domestic public utility are such that it would not be in the interest of its customers and the public to permit the merger or other acquisition of control;
6. After giving effect to the merger or other acquisition of control of a domestic public utility whose utility service includes the furnishing of electric current, such domestic public utility would not be operated, in the judgment of the Commission, on an integrated basis with the domestic public utilities and foreign public utilities affiliated with the acquiring party and, if the acquiring party is a domestic public utility or foreign public utility, with the acquiring party; or
7. Prior to giving effect to the merger or other acquisition of control of a domestic public utility whose utility service includes the furnishing of electric current, the acquiring party is not substantially engaged in the business of providing utility service. Provided that, in the discretion of the Commission, the condition shall not apply to an acquiring party that on the effective date of this act, directly or indirectly, through one or more of its affiliates:
Further provided that this exception to this condition shall apply only to an acquiring party that on the effective date of this act, directly or indirectly through one or more of its affiliates, meets the requirements of subparagraphs a and b of this paragraph and shall not apply to any third party that after the effective date of this act acquires directly or indirectly such acquiring party or all or part of the generating facility described in subparagraphs a and b of this paragraph.
B. The public hearing referred to in subsection A of this section shall be commenced within sixty (60) days after the statement required by Section 191.2 of this title is filed. The place, date and time for such public hearing shall be set by the Commission and notice thereof shall be given by the Commission to the person filing the statement and to the domestic public utility at least twenty (20) days prior to the date of the public hearing. Notice of the public hearing shall be given by the person filing the statement to such other persons and in such manner as may be directed by the Commission at least fifteen (15) days prior to such public hearing. The domestic public utility shall give notice to its customers as provided in Section 191.6 of this title. The public hearing referred to in subsection A of this section shall be concluded within sixty (60) days after the commencement of such hearing unless it is necessary, for good cause shown or in the judgment of the Commission, to continue such hearing for sixty (60) days. The Commission shall make a determination on the factors specified in subsection A of this section within sixty (60) days after the conclusion of such hearing, and any merger or other acquisition of control within the purview of this section shall be deemed approved as filed unless the Commission has, within sixty (60) days after the conclusion of such hearing, entered its order approving the merger or other acquisition upon such terms and conditions as it deems necessary or appropriate in the public interest or disapproving the merger or other acquisition of control.
C. In determining whether a domestic public utility whose utility service includes furnishing electric current would be operated on an integrated basis under paragraph 6 of subsection A of this section, the Commission shall consider such factors as physical interconnection to the acquiring party or its affiliates and the ability to be economically operated with the acquiring party and its affiliates as a single coordinated system not so large as to impair the advantages of localized management, efficient operation and the effectiveness of regulation.
D. In determining whether an acquiring party is or is not substantially engaged in providing utility service under paragraph 7 of subsection A of this section, an acquiring party shall be deemed to not be substantially engaged in the business of providing utility service if, based on the information included in the schedule filed pursuant to paragraph 10 of subsection A of Section 191.3 of this title, the amount of the total nonutility assets of the acquiring party exceeds the amount of the total utility assets of the acquiring party.
Added by Laws 1983, c. 292, § 5, eff. Nov. 1, 1983. Amended by Laws 2004, c. 196, § 4, emerg. eff. May 4, 2004.