Page:United States Statutes at Large Volume 49 Part 1.djvu/871

 826 74TH CONG RESS. SESS. I. CH. 687. AUGUST 26, 1935. or o rder sh all pres cribe a s neces sary or appropr iate in the pub lic interest or for the protection of investors or consumers and to insure th at such contrac ts are performe d econo mically and eff iciently for the benefit of such associate companies at cost, fairly and equitably Exemptions . allocated among such companies. This provision shall not apply to such transactions as the Commission by rules and regulations or order may conditionally or unconditionally exempt as being neces- sary or appropriate in the public interest or for the protection of investors or consumers, if such transactions (1) are with any asso- ciate company which does not derive, directly or indirectly, any material part of its income from sources within the United States and which is not a public-utility company operating within the United States, or (2) involve special or unusual circumstances or are not in the ordinary course of business. Administrative au- (c) The rules and regulations and orders of the Commission under thority of Commission. this section may prescribe, among other things, such terms and con- ditions regarding the determination of costs and the allocation thereof among specified classes of companies and for specified classes of service, sales, and construction contracts, the duration of such contracts, the making and keeping of accounts and cost-accounting procedures, the filing of annual and other periodic and special reports, the maintenance of competitive conditions, the disclosure of interests, and similar matters, as the Commission deems necessary or ap propriate in the public i nterest or for the protect ion of investors or c onsumers. Mutual se rvi ce corn- (d) The rules and regulations and orders of the Commission under panics ; rules, etc ., re- specting. this section shall prescribe, among other things, such terms and con- Applications for ap- ditions regarding the manner in which application may be made for proval . approval as a mutual service company and the granting and continu- Agreements of. ance of such approval, the nature and enforcement of agreements for th e shari ng of ex penses and dist ributin g of rev enues a mong mem ber companies, and matters relating to such agreements, the nature and ty pes of business es and transact ions in which m utual s ervice c om- Tr ansac tions of. pani es may engage, and the manner of engaging th erein and the relations and transactions with member companies and affiliates, as the Commission deems necessary or appropriate in the public interest Approval of applica- or for the protection of investors or consumers. The Commission tions by Commission. shall not approve, or continue the approval of, any company as a mutual service company unless the Commission finds such company is so org anized a s to ow nership, costs, revenue s, and the shar ing thereof as reasonably to insure the efficient and economical perform- ance of service, sales, or construction contracts by such company for member companies, at cost fairly and equitably allocated among such member companies, at a reasonable saving to member companies ov er the cost to such co mpanies of comp arable c ontract s perfor med or der requi ring real- b y i nde pend ent pe rso ns. The Commissio n, upon its own motion or location or reapportion- ment of costs among at the request of a member company or a State commission, may, member companies. Notice and hearing. after notice and opportunity for hearing, by order require a realloca- tion or reapportionment of costs among member companies of a mutual service company if it finds the existing allocation inequitable and may require the elimination of a service or services to a member company which d oes not bear it s fair proporti on of c osts or which, by reason of its size or other circumstances, does not require such prova do;notceandhear- service or services. The Commission, after notice and opportunity ing. for hearing, by order shall revoke, suspend, or modify the approval given any mutual service company if it finds that such company has persistently violated any provision of this section or any rule, regulation, or order thereunder.