Taking ‘Control’: Federal Energy Regulatory Commission Policy on Acquisitions of Electric Utility Securities

Section 203 of the Federal Power Act remains subject to considerable uncertainty. Therefore, it is important to keep several rules in mind. Each potential acquisition must be separately analyzed under Section 203(a)(1) and 203(a)(2) of the Act. A proposed acquisition that is exempt or preapproved under one provision may still require prior FERC approval under the other one.