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HomePublic Utilities CodeDiv. 1Pt. 1Ch. 4Art. 6§ 852 Public Utility Stock Acquisitions

§ 852 Public Utility Stock Acquisitions

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 852 Public Utility Stock Acquisitions

Key Takeaways

  • •A public utility company (like electricity or water) can't buy shares of another public utility without permission from the commission.
  • •The commission can make rules for small stock purchases that don’t need permission if they won’t hurt the public.
  • •Any deal to buy or sell stocks without following these rules is invalid and won’t be recorded.
  • •If a company already owned stocks before this law, they can keep them.

Example

A big electric company wants to buy shares of a smaller water company.

The electric company must first ask the commission for permission. If they don’t, the deal is canceled, and the stocks won’t be officially transferred.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 852 Public Utility Stock Acquisitions

No public utility, and no subsidiary or affiliate of, or corporation holding a controlling interest in, a public utility, shall purchase or acquire, take or hold, any part of the capital stock of any other public utility, organized or existing under or by virtue of the laws of this state, without having been first authorized to do so by the commission; provided, however, that the commission may establish by order or rule categories of stock acquisitions which it determines will not be harmful to the public interest, and purchases within those categories are exempt from this section. Every assignment, transfer, contract, or agreement for assignment or transfer of any stock by or through any person or corporation to any corporation or otherwise in violation of any of the provisions of this article is void and of no effect, and no such transfer shall be made on the books of any public utility. Nothing in this section prevents the holding of stock previously lawfully acquired. (Amended by Stats. 1989, Ch. 390, Sec. 1.)

Last verified: January 23, 2026

Key Terms

corporationutilityagreementcommissionacquisitioncontractstockassignment

Related Statutes

  • § 819 Commission Securities Approval Authority
  • § 853 Public Utility Regulation Exemptions
  • § 854 Public Utility Mergers Approval
  • § 40123 Public Utility Employee Protections
  • § 767.7 Telecommunications Infrastructure Sharing

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 852.
View Official Source