Thursday, June 9, 2011

Regulator okays public float rules for power firms

Business World Online
Posted on June 09, 2011 11:43:12 PM

DISTRIBUTION UTILITIES and power generators should have a minimum 15% public float by mid-June 2016, the Energy Regulatory Commission (ERC) ruled in an order finalized late last month.

The regulations, which require unlisted privately owned distribution utilities -- including electric cooperatives and generating firms -- to sell at least 15% of common shares of stock either by listing in the bourse or other methods "deemed feasible and desirable by the Board of Investments," seek to implement a provision of the Electric Power Industry Reform Act of 2001 (EPIRA).
Employee stock option plans will not be considered a means of complying with the law, the industry regulator said.
The public float rule should have taken effect in 2006 but was deferred by the ERC to allow for more public consultations. -- E. N. J. David

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