Horizon, FERC continue jurisdiction sparring; firm presses 'not utility holding company' case

摘要

Horizon Asset Management continues to insist it owns no stocks or shares in utility companies, but it recently asked the Federal Energy Regulatory Commission again for blanket authority to acquire securities of electric utilities. New York-based Horizon says it is not a utility holding company and wants FERC to disclaim any jurisdiction, telling FERC that it only manages the accounts of investors. "Horizon earns a fee for its management of the account but is, in no sense, the owner of the securities in the account," the company said in its most recent filing to the commission. "In addition, Horizon does not really 'buy' or 'sell' any of the securities - it directs the stock brokerage acting as custodian to do the actual buying or selling." Responding to queries from FERC as to why it did not report its billions of dollars in holdings in electric utilities, Horizon in May asked FERC to disclaim jurisdiction over the company or in the alternative grant blanket authorization of the transactions. FERC staff had written Horizon in March, saying that filings with the Securities and Exchange Commission indicate Horizon has acquired more than 10% of common stock in utility holding company Sierra Pacific Resources, and Reliant Energy. The letter listed other purchases that might be subject to FERC jurisdiction. The Federal Power Act requires FERC approval for utility acquisitions of more than $10 million, the letter said.