City Council took recommended action at its regular meeting Monday and amended its shareholder agreement with the PUC to limit the utilities's corporate donations.
Single donations from the PUC will now not exceed $10,000, and donations will no longer exceed $50,000 in any single year.
A PUC donation of $100,000 to Algoma University raised many eyebrows in the community last year.
The City's legal department stated that donation was not a conflict of interest, but some questioned if that amount was a good use of City money, as the City of Sault Ste. Marie is PUC Inc.'s sole shareholder.
The PUC was restructured as a corporation in 2000.
Council and the PUC also agreed that PUC meetings be held in public, and that the public is notified in advance of those meetings, as well as minutes of PUC meetings made available for public perusal.