NEWSReport No. DC 96-87 ACTION IN DOCKET CASE September 12, 1996 COMMISSION ADOPTS SIMPLE PROCEDURE FOR UTILITY COMPANIES TO ENTER INTO THE TELECOMMUNICATIONS INDUSTRY (GC Docket No. 96-101) The Commission adopted today a Report and Order that provides a streamlined procedure for determining "exempt telecommunications company" ("ETC") status. The Commission stated that the new rules, which are generally consistent with the rules proposed in the Notice of Proposed Rulemaking, closely follow Congress's mandate in the 1996 Telecommunications Act to "establish a simple, straight-forward and expeditious mechanism to accelerate the entry of public utilities into telecommunications." Section 103 of the 1996 Act adds a new Section 34 to the Public Utility Holding Company Act (PUHCA) of 1935, which permits registered public utility holding companies to enter the telecommunications industry, without prior Securities and Exchange Commission approval, by acquiring or maintaining an interest in an ETC. Moreover, by permitting exempt public utility holding companies to acquire or maintain an interest in an ETC, Section 103 grants exempt public utility holding companies a "safe harbor" from adverse SEC action for any diversification into telecommunications industries. Under the 1996 Act, the Federal Communications Commission has jurisdiction to determine whether a company warrants ETC status based on specific statutory criteria. The rules require applicants seeking ETC status to file with the Commission a brief description of their planned activities together with a sworn statement attesting to any facts or representations presented to demonstrate ETC status as defined in the 1996 Act. The procedures also provide for public comment on the application, but limit comment to the adequacy or accuracy of the information presented. The Commission stated that ETC determination should not involve an inquiry into the public interest merits of entry by public utility holding companies. The Commission noted that to the extent such concerns exist, Section 103 preserves state and federal jurisdiction to examine these issues in other proceedings. Since the enactment of the 1996 Act on February 8, 1996, the Commission has received 15 applications for a determination of ETC status and has granted 13 such applications. Two of the applications are still pending. - more - Action by the Commission September 12, 1996, by Report and Order (FCC 96-376). Chairman Hundt, Commissioners Quello, Ness, and Chong. - FCC - News Media contact: Rochelle Cohen at (202) 418-0500. Office of General Counsel, Competition Division contacts: James W. Olson or Lawrence Spiwak at (202) 418-1880. EXEMPT TELECOMMUNICATIONS COMPANY APPLICATIONS APPROVED BY OR PENDING BEFORE THE COMMISSION PURSUANT TO THE TELECOMMUNICATIONS ACT OF 1996 APPLICATION ORDER NO. RELEASE DATE CSW COMMUNICATIONS FCC 96-152 4/4/96 ENTERGY TECHNOLOGY COMPANY FCC 96-163 4/12/96 ENTERGY TECHNOLOGY HOLDING CO. FCC 96-162 4/12/96 NU/MODE1 COMMUNICATIONS DA 96-863 5/30/96 SOUTHERN INFORMATION HOLDING CO. DA 96-951 6/14/96 SOUTHERN INFORMATION 1 DA 96-951 6/14/96 SOUTHERN INFORMATION 2 DA 96-951 6/14/96 SOUTHERN TELECOM HOLDING COMPANY DA 96-952 6/14/96 SOUTHERN TELECOM 1 DA 96-952 6/14/96 SOUTHERN TELECOM 2 DA 96-952 6/14/96 ALLEGHENY COMMUNICATIONS CONNECT DA 96-953 6/14/96 AEP COMMUNICATIONS DA 96-1148 7/18/96 COLUMBIA NETWORK SERVICES DA 96-1307 8/15/96 280 SECURITY HOLDINGS Pending NEES COMMUNICATIONS Pending