The repeal of Public Utility Holding Company Act (PUHCA) in the Energy Act will facilitate mergers and acquisitions (M&A) in the electric utility industry. More companies will soon propose to combine with other utilities, in addition to three such proposals currently under consideration. Strong European companies and nontraditional investors may use this opportunity to purchase or co-invest in U.S. utilities. The U.S. Security and Exchange Commission's (SEC) traditional role in reviewing such proposals is gone, as is the requirement for utility combinations to be contiguous or interconnected. However, M&A approval or success is not assured, as state approval for M&A will still be required, and both the states and the U.S. Federal Energy Regulatory Commission (FERC) are granted additional authority to review utilities’ books and records to ensure financial integrity and nonabuse of market power. How that authority is implemented will be critical.