CEEL.docx

January 12, 1999
Forrest Ceel, President
IBEW Local 2150
N8W22520-H Johnson Drive
Waukesha, WI 53186
RE: Electric Utility Holding Company
Dear Mr. Ceel:
In your facsimile dated January 8, 1999, you asked several questions concerning electric utilities and the formation of holding companies.  Enclosed with this cover letter are the answers to your survey questions.  In addition, I have enclosed pertinent documents for your review.  I hope you find this information helpful.
Sincerely,
Donald L.  Howell, II
Deputy Attorney General
DLH/vld
Enclosures
cc:Terri Carlock
vld/L:ceel.dh
SURVEY ANSWERS
1.Yes
2.No
3.The PUC exercises authority over the issuance by electric companies of securities and other financial instruments.  Statute attached.  The Commission uses this process to monitor investments for non-utility purposes and the use of utility assets as collateral for non-utility activities.  The PUC routinely advises utilities that approving the issuance of securities does not authorize the recovery of revenue to finance the securities.  In at least one case, the PUC denied the issuance of securities to finalize a non-utility operation.  A copy of that Order is attached.
4.Also attached is a recent Order where our largest electric utility (Idaho Power) was allowed to form a holding company.