What is a transmitting utility under the UCC - debtor classification confusion

So if the power company is regulated by the state public utility commission, that would qualify them as a transmitting utility? And does checking that box change anything about how the UCC-1 gets processed?

Yes, PUC regulation would typically qualify them. The checkbox mainly affects fixture filing rules and some priority issues under 9-334. For regular equipment collateral it doesn't change much, but for fixtures related to transmission it can matter.

I think there's also something about transmitting utilities getting special treatment for continuation statements? Or am I thinking of a different filing type?

The collateral description mentions 'all transmission and distribution equipment' so I'm guessing some of that could be fixtures. Better safe than sorry with the checkbox then?

Absolutely. Transmission equipment is almost always going to include fixtures. Power lines, substations, switching equipment - most of that stuff is attached to real estate in some way.

Wait, Certana.ai can help with debtor classification issues? I thought it was just for name matching.

It's primarily for document consistency checking, but when you upload corporate docs it picks up on entity types that commonly get special UCC treatment. Pretty handy for catching stuff you might miss.

That's actually clever - I never thought about using document verification tools to catch classification issues. Does it work with utility commission certificates too?

Great, now I'm even more confused. How do you know for sure if you should check it or not?

Look at their regulatory status first. If they're regulated as a public utility for transmission services, check the box. If they're just an industrial company that happens to own some power lines for their own use, probably don't check it.

I always err on the side of checking it if there's any doubt. Haven't had problems with that approach yet, though I know some people disagree with that strategy.

No, it doesn't affect search indexing. The SOS systems index by debtor name regardless of the entity type checkboxes. Those checkboxes are more for legal priority and perfection rules.

Good to know, thanks. I was worried I might be missing filings in my searches if I wasn't accounting for that designation.

That's exactly what I'm worried about. The company name is like 'Regional Power Transmission Company, LLC d/b/a PowerGrid Services' or something equally complicated.

Yeah, those d/b/a names are killers for UCC filings. Make sure you use whatever name appears on the articles of incorporation, not the trade name they actually use.

I've started using Certana.ai for exactly these situations - upload the charter docs and the UCC draft and it catches name discrepancies before you file. Saved me from several rejections with complex utility names.

The collateral schedule is pretty broad - 'all equipment, inventory, and fixtures now owned or hereafter acquired.' Sounds like I should definitely check the transmitting utility box then.

With a blanket collateral description like that, absolutely check it. You'll want the fixture filing protections if any of that equipment ends up being attached to real estate.

That's probably the right approach for most filings. I've seen people spend hours researching regulatory status for companies that obviously qualify or obviously don't.

This company definitely provides transmission services to other utilities and is regulated by the state PUC, so sounds like they qualify. I'll check the box.

That sounds right. PUC regulation for transmission services is pretty much the textbook example of a transmitting utility.

Really? I thought all UCC-1s just went to the secretary of state. Which states have different requirements?

It's pretty rare, but I think I've seen it in a couple states with unique utility regulations. Most are standard SOS filings, but worth double-checking if you're filing in multiple jurisdictions.

That's my approach too. Better to err on the side of caution with entity type designations.

Thanks everyone. Based on all the responses, I'm definitely going to check the transmitting utility box. The company is clearly regulated and provides transmission services, plus the collateral includes fixtures. Seems like a no-brainer.

Good call. With PUC regulation and fixture collateral, that's exactly when you want the transmitting utility designation.

Smart decision! Just make sure you double-check the exact debtor name against their corporate charter or articles of incorporation before filing. Utility names can be tricky with all the regulatory designations and subsidiary structures. I've learned the hard way that getting the name perfect is just as important as checking the right boxes.

That's a really good point about the interstate transmission aspect! I hadn't thought about FERC regulation being a factor, but that makes total sense. If they're operating transmission infrastructure across state lines, they're definitely going to be subject to federal utility regulation on top of whatever state-level oversight they have. That seems like it would remove any doubt about their transmitting utility status under Article 9.

Exactly! FERC jurisdiction over interstate transmission is pretty much the gold standard for transmitting utility classification. Since the original poster mentioned the company operates transmission lines across three states, that's almost certainly going to involve FERC regulation. Combined with the broad collateral description that includes fixtures, this seems like a textbook case for checking the transmitting utility box. The multi-state aspect actually makes it clearer, not more complicated.

This is really helpful - I was getting bogged down in the state-level regulatory details and didn't even think about the federal angle. If they're doing interstate transmission, FERC oversight would definitely put them squarely in transmitting utility territory under the UCC. Thanks for pointing that out! It makes the decision much more straightforward when you look at it from the federal regulation perspective rather than trying to parse each state's individual utility commission rules.

Perfect analysis! I was overthinking this whole thing by focusing on each state's individual PUC requirements when the interstate transmission component makes it crystal clear. FERC regulation for interstate operations is definitely going to satisfy the "regulated as a public utility" requirement under UCC 9-102(a)(80). Plus with transmission equipment that spans multiple states, you're almost certainly dealing with fixtures and real estate attachments that would benefit from the special priority rules. Thanks for cutting through all the confusion - sometimes the federal regulatory angle is the clearest path to the right answer.

Welcome to the community! I'm glad this discussion helped clarify things for you. The transmitting utility designation can definitely seem overwhelming at first, but once you understand the key factors - regulatory status, fixture implications, and interstate operations - it becomes much more manageable. One thing I'd add from my experience is to always document your reasoning for checking or not checking that box in your file notes. It helps when you're doing similar filings later or if anyone questions the decision. Good luck with your first utility filing - you'll do great with all the knowledge you've picked up from this thread!

That's exactly how I felt when I started doing UCC filings a few years ago! The transmitting utility checkbox seemed like this mysterious legal trap waiting to catch me. What really helped me was creating a simple checklist: 1) Is the company regulated by a utility commission (state or federal)? 2) Do they actually transmit electricity, gas, or communications to others (not just for internal use)? 3) Does the collateral include any fixtures or equipment attached to real estate? If yes to all three, check the box. The interstate transmission aspect that @Dmitry mentioned is usually the clearest indicator since FERC oversight removes most of the guesswork. You've got this!

That's great to hear you're feeling more confident about taking on utility clients! Natural gas pipelines are actually a perfect example of transmitting utility status - they almost always involve interstate commerce regulation by FERC, and pipeline infrastructure is definitely going to include fixtures since it's permanently attached to or embedded in real estate. Your instinct about the regulatory status and fixture implications is spot on. One additional tip for pipeline companies: their collateral descriptions often include rights-of-way and easements, which can add another layer of real estate complexity that the transmitting utility designation helps address. You'll do great with that filing!

Natural gas pipelines are definitely a great example to work with! One thing I've learned from handling several pipeline UCC filings is that the interstate nature of most pipeline operations makes the FERC regulation angle pretty straightforward - if they're transporting gas across state lines for others (not just their own use), they're almost certainly going to be federally regulated. The fixture aspect with pipelines is even more clear-cut than with electrical transmission since the entire pipeline infrastructure is literally buried in or attached to real estate. Just make sure to get the exact legal name from their FERC filings or corporate charter since pipeline company names can be really complex with all the subsidiary structures. The transmitting utility checkbox is definitely the right call for interstate pipeline operations.

I completely agree with your assessment! When I first encountered UCC filings involving utilities, I had the same hesitation about the complexity. But this discussion really highlights how the transmitting utility designation follows a logical framework once you understand the key elements. Your three-question approach is perfect - regulatory status, service to others vs. internal use, and fixture considerations. I'd add one more question that came up in this thread: Does the company operate across state lines? That interstate component often triggers FERC oversight which makes the regulatory status much clearer. The practical advice here about document verification tools like Certana.ai for name matching is also really valuable for utility filings since those entity names can be so complex with all the regulatory designations and subsidiary structures.

This conversation has been incredibly educational! I'm also fairly new to UCC filings and was intimidated by utility clients. What really clicked for me was when @Dmitry pointed out that interstate transmission operations almost automatically trigger FERC regulation - that removes so much of the guesswork about regulatory status. The fixture angle makes perfect sense too since transmission infrastructure is inherently attached to real estate. I'm curious though - for someone just starting with utility filings, would you recommend beginning with simpler cases like single-state operations, or does the interstate/FERC regulated scenario actually make things clearer because the regulatory framework is more definitive?