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Federal Restructuring Legislation
                                         


106th Session of the U.S. Congress


House Bills




Bill Number: H. R. 1587
Short Title: Electric Energy Empowerment Act of 1999
Introduced: April 27, 1999
Sponsor: Congressman Cliff Stearns (R-FL)

Purpose: To encourage States to establish competitive retail markets for electricity, to clarify the roles of the Federal Government and the States in retail electricity markets, to remove certain Federal barriers to competition, and for other purposes.

Summary: Amends the Federal Power Act (FPA) to empower the States to order electric utilities within their jurisdiction to provide nondiscriminatory open access through functionally unbundled transmission and local distribution services to retail customers within their borders (retail wheeling). Prescribes implementation guidelines. (Sec. 4) Encourages creation of Independent Transmission System Operators to ensure that all sellers and buyers of electricity in the United States have access to nondiscriminatory transmission services. (Sec. 5) Redefines "public utility" to include electric utility or Federal power marketing agencies not otherwise subject to Federal Energy Regulatory Commission jurisdiction (FERC), (thereby subjecting such entities to FERC open access rules). (Sec. 6) Rescinds the requirement that new electric utility contracts or obligations for the purchase or sale of electric energy or capacity be conducted pursuant to the Public Utility Regulatory Policies Act of 1978 (PURPA). Directs FERC to promulgate and enforce regulations to assure recovery by electric utilities of all costs associated with purchases of electric energy or capacity pursuant to PURPA prescriptions. Repeals the Public Utility Holding Company Act of 1935. (Sec. 7) Mandates Federal and State access to such holding company records as FERC and State commissions deem relevant to costs incurred by such entities, and as appropriate for the protection of consumers with respect to rates. Repeals FPA conflict of jurisdiction prescriptions. (Sec. 8) Grants the consent of Congress for the formation and operation of the Electric Reliability Council (ERC), a body composed of all electricity industry participants, to: (1) provide the best technical electricity industry advice and recommendations to FERC; and (2) submit an annual status report to the President, Congress, and to FERC on the Nation's electric generation, transmission, and distribution systems. Retains State regulatory authority regarding the safety and reliability of electric utility or local distribution company facilities.


Bill Number: H. R. 1828
Short Title: Comprehensive Electricity Competition Act
Introduced: May 17, 1999
Sponsor: Congressman Tom Bliley (R-VA)

Purpose: To provide for a more competitive electric power industry, and for other purposes.

Summary: Title I: Retail Electric Service - Amends the Public Utilities Regulatory Policies Act of 1978 (PURPA) to set a specified date by which each electric energy distribution facility is required to offer consumers open access to its facilities for electric energy sales (retail competition requirement). (Sec. 101) Authorizes a State regulatory authority to direct a distribution utility not to implement the retail competition requirement if it finds that implementation would have a negative impact upon a class of customers that cannot be reasonably mitigated. Authorizes a nonregulated distribution utility on its own to make the same determination. Requires a State regulatory authority or non- regulated distribution utility that: (1) conducts a public proceeding before a distribution utility implements retail competition to consider recovery of retail stranded costs if the utility has taken reasonable steps to mitigate such costs (including assistance for former electric utility workers unemployed as a result of retail competition implementation); and (2) permits a charge to recover retail stranded costs to consider reducing such charge on a consumer who uses electric energy produced on-site when the charge results from the use of certain new on-site generation sources. Authorizes any person to bring an action in State court against either a State regulatory authority, distribution utility, or a nonregulated distribution utility for noncompliance with this Act. (Sec. 102) Authorizes a State regulatory authority to enjoin a distribution utility (and affiliate) located in the United States over which it does not have ratemaking authority from selling electric energy to electric consumers of a distribution facility covered by the notice of retail competition, unless a notice of retail competition has been filed with respect to the other distribution utility (reciprocity requirements). Grants the same authority to a nonregulated distribution utility. (Sec. 103) Permits a group of customers to acquire retail electric energy on an aggregate basis if it is served by distribution utilities for which a State regulatory authority or nonregulated distribution utility has filed a notice of retail competition. Title II: Consumer Protection - Prescribes guidelines for consumer information disclosure by an electric utility and attendant enforcement by State and Federal agencies. (Sec. 202) Requires each State regulatory authority or nonregulated distribution utility filing a notice of retail competition to conduct a proceeding to determine whether to apply specified principles for providing electric service to low-income residential consumers. (Sec. 203) Amends the Federal Trade Commission Act to direct the Federal Trade Commission (FTC) to promulgate rules for: (1) verification of a retail electric customer's selection of a retail electric supplier ("slamming"); and (2) obtaining retail electric customer consent for the purchase of goods and services ("cramming"). Permits complementary State proceedings and remedies. (Sec. 204) Authorizes the Secretary of Energy (The Secretary) to compile a database to provide residential electric consumers with information to compare offers of various retail electric suppliers. Directs the Secretary to develop a model code for: (1) regulation of retail electric suppliers for the protection of electric consumers; and (2) safety standards for electric facility workers. Title III: Facilitating State and Regional Regulation - Amends the Federal Power Act (FPA) to declare it does not preempt or otherwise affect any authority under State or local municipal law to: (1) require unbundled transmission and local distribution services for electric energy delivery directly to an ultimate consumer; or (2) impose a delivery charge on such consumer's receipt of electric energy. Retains the exclusive jurisdiction of the Federal Energy Regulatory Commission (FERC) over unbundled transmission in interstate commerce. (Sec. 301) Authorizes FERC to: (1) require public utilities and transmitting utilities to provide open access transmission services; (2) permit recovery of stranded costs arising from any requirement to provide open access transmission services; and (3) require the transmission of electric energy to an ultimate consumer if a notice of retail competition is in effect with respect to such consumer, or if a distribution utility offers such consumer open access to its delivery facilities. Prescribes guidelines for FERC's exercise of jurisdiction over rates, terms, and conditions for transmission services provided by a non-public transmitting utility. Permits the Secretary of Agriculture to participate or intervene in any FERC proceeding that directly affects an electric utility whose loans are made or guaranteed under the Rural Electrification Act of 1936 (REA). (Sec. 302) Grants the consent of Congress to an interstate compact to establish a regional transmission planning agency subject to specified FERC determinations. (Sec. 303) Cites circumstances under which: (1) a State regulatory authority and specified nonregulated distribution utilities may receive backup authority from FERC to impose a charge upon an ultimate consumer's receipt of electric energy; (2) FERC may order the establishment of an entity to independently operate and control interconnected transmission facilities and generators, and may order a transmitting utility to relinquish operating control over its transmission facilities to such entity; and (4) designated Federal utilities may participate in a regional transmission system operation. Title IV: Public Benefits - Amends PURPA to establish a Joint Board which shall establish a Public Benefits Fund upon petition of States and tribal governments wishing to participate in a Federal program providing: (1) affordable electricity service to low-income customers; (2) implementation of energy conservation, efficiency, and management measures; (3) consumer education; and (4) development of emerging electricity generation technologies. Prescribes implementation guidelines, including mandatory payment of a public benefits charge to a transmitting utility by each owner of an electric generating facility whose capacity exceeds one megawatt. (Sec. 402) Sets a deadline by which a retail electric supplier shall submit Renewable Energy Credits to the Secretary equal to the required annual percentage of total electric energy sold by such supplier to electric consumers in the calendar year (determined by the Secretary). Prescribes implementation guidelines. (Sec. 403) Requires each retail electric supplier to make net metering service available upon request to a retail electric consumer served or solicited by such supplier. Authorizes State imposition of: (1) additional requirements; and (2) a cap limiting the amount of net metering available in the State. Retains State authority to require a retail electric supplier to make net metering service available to a retail electric consumer. (Sec. 404) Amends PURPA to repeal the requirement that an electric utility enter into a new contract or obligation to purchase electric energy from cogeneration and small power production facilities. (Sec. 405) Mandates that a distribution utility allow interconnection with a facility if the facility owner is located in such utility's service territory and complies with a final Federal ruling governing such interconnection. (Sec. 406) Amends the REA to authorize grants for the purpose of increasing energy efficiency, lowering or stabilizing electric rates to end users, or providing or modernizing electric facilities for certain local governmental or Indian tribal units. Authorizes appropriations. (Sec. 407) Amends the Energy Policy Act of 1992 to direct the Secretary to establish an Indian tribal assistance program to meet electricity needs. Authorizes appropriations. (Sec. 408) Amends the Department of Energy Organization Act (DOE Organization Act) to authorize the Secretary to establish an Office of Indian Energy Policy and Programs. (Sec. 409) Authorizes appropriations to DOE for financial assistance to the State of Alaska to ensure the availability of adequate electrical power to the greater Ketchikan area, including the construction of an intertie. Title V: Regulation of Mergers and Corporate Structure - Repeals the Public Utility Holding Company Act of 1935. Public Utility Holding Company Act of 1999- Prescribes procedural guidelines for both FERC and State access to records of a holding company (including subsidiaries, associates and affiliates) of a public utility or natural gas company. (Sec. 501) Precludes such State access to any person that is a holding company solely by reason of ownership of one or more qualifying facilities under PURPA. Instructs FERC to promulgate a final rule to exempt specified holding companies from such access requirements. Requires FERC to exempt any person or transaction from such access requirements if it finds that regulation of such person or transaction is irrelevant to the jurisdictional rates of a public utility or natural gas company. Retains the jurisdiction of FERC and State commissions to determine whether a public utility company or natural gas company may recover in rates any costs of affiliate transactions. Declares this Act inapplicable to: (1) the Government of the United States; (2) a State or local government; and (3) a foreign governmental authority not operating in the United States. Grants FERC certain FPA enforcement powers. Transfers from the Securities and Exchange Commission (SEC) to FERC all books and records that relate primarily to the functions vested in FERC by this Act. Authorizes appropriations. Amends the FPA to repeal its conflict of jurisdiction guidelines. (Sec. 502) Conditions electric company mergers and acquisitions upon prior FERC authorization. Subjects generation facilities to FERC jurisdiction (excluding entities with existing loans made or guaranteed under the REA of 1936). (Sec. 503) Requires FERC to order a public utility to submit a remedial action plan to remedy market power if: (1) FERC determines that there are markets in which a utility that owns or controls generation facilities has market power in electric energy sales for resale in interstate commerce; or (2), pursuant to State request for such an order, FERC determines that a generation facility-owning or -controlling electric utility has market power in retail electric energy sales in that State. Prescribes procedural guidelines. Title VI: Electric Reliability - Amends the FPA to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants FERC jurisdiction over: (1) the electric reliability organization; (2) all Affiliated Regional Reliability Entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all system operators, and all users of the bulk-power system for purposes of approving and enforcing compliance with standards in the United States. Provides that, prior to the establishment of the Electric Reliability Organization (Organization), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) may file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable.(Sec. 601) Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) Organization standards. Requires all users of the bulk-power system to comply with such standards. Mandates that: (1) the Organization take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the governments of Canada and Mexico to effectuate compliance with Organization standards, and to provide for the effectiveness of the Organization's mission. Requires every system operator to be a member of the electric reliability organization, and of any Affiliated Regional Reliability Entity operating under an agreement applicable to the region in which the system operator operates or is responsible for the operation of a bulk-power system facility. Mandates compliance with the legal obligations of: (1) the Federal power systems; (2) the TVA; (3) the Bureau of Reclamation and the Corps of Engineers; and (4) Nuclear Regulatory Commission requirements. Empowers the Organization to take disciplinary and enforcement action. Directs the Organization to assess periodically the reliability and adequacy of the inter-connected bulk-power system in North America, and to report its findings and recommendations annually to FERC and to the Secretary. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each Affiliated Regional Reliability Entity, respectively. (Sec. 602) Amends the DOE Organization Act to direct the Secretary to establish an Electricity Outage Investigation Board to investigate and report to the Secretary on a major bulk-power system failure in the United States to determine its causes, and to recommend actions to minimize the possibility of such future failures. (Sec. 603) Amends PURPA to authorize the Secretary to call and chair a meeting of State representatives to discuss provision of additional transmission capacity and related regional concerns. Title VII: Environmental Protection - Instructs the Administrator of the Environmental Protection Agency, in specified circumstances, to establish and administer an oxide of nitrogen (NOx) allowance cap and trade program in all States in which an NOx emission source is located. Prescribes program implementation guidelines. Title VIII: Federal Power Systems - Subtitle A: Tennessee Valley Authority - Amends the FPA to encompass within its jurisdiction the transmission facilities and transmission of electric energy and necessary associated services of: (1) the Tennessee Valley Authority; (2) the Bonneville Power Administration; (3) the Western Area Power Administration; and (4) the Southwestern Power Administration. (Sec. 803) Amends the Tennessee Valley Authority Act to: (1) subject the TVA to Federal antitrust laws; (2) authorize TVA wholesale sales of electric power to any person; (3) proscribe specified TVA retail sales; and (4) mandate renegotiation of long-term TVA power contracts with distributors. (Sec. 806) Amends the FPA to instruct FERC to promulgate certain regulations governing TVA's recovery of stranded costs resulting from wholesale or retail competition. Amends the TVA Authority Act to mandate that amounts recovered as stranded cost recovery charges be used to pay down TVA debt; but prohibits payments for additions to TVA generating capacity. Subtitle B: Bonneville Power Administration - Amends the FPA to prescribe procedural guidelines under which FERC shall provide for the imposition of surcharges for transmission services over the Bonneville Transmission System in order for the Bonneville Administrator to meet certain statutory cost recovery requirements. Subtitle C: Western Area Power Administration and Southwestern Area Power Administration - Prescribes procedural guidelines under which FERC shall provide for the imposition of surcharges for transmission services over the Transmission System of the Western Area Power Administration, and Southwestern Area Power Administration, respectively, in order for such Administrations to meet certain statutory cost recovery requirements. Title IX: Other Regulatory Provisions - Amends Federal bankruptcy law to: (1) grant priority status to obligations to comply with, and claims resulting from compliance with, Nuclear Regulatory Commission (NRC) regulations or orders governing the decontamination and decommissioning of licensed nuclear power reactors; and (2) prohibit discharge of such obligations and claims under State or Federal bankruptcy law. (Sec. 902) Amends the DOE Organization Act to instruct the Administrator of the Energy Information Administration to collect and publish information regarding the impact of wholesale and retail competition upon the electric power industry. (Sec. 904) Eliminates the mandate for antitrust review by the NRC with respect to license applications to construct or operate a commercial utilization or production facility. (Sec. 906) Amends the DOE Organization Act to direct the Secretary to issue a report comparing the impact of wholesale and retail competition on the efficiency of new and existing electric generating facilities.


Bill Number: H.R. 2050
Short Title: Ratepayer Protection Act of 1999, Public Utility Holding Company Act of 1999, and Electric Consumers' Power To Choose Act of 1999
Introduced: June 8, 1999
Sponsor: Congressman Steve Largent (R-OK)

Purpose: To provide consumers with a reliable source of electricity and a choice of electric providers, and for other purposes.

Summary: Title I: Consumer Choice and Competition for Electric Utilities - Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to set forth statutory parameters for retail electric competition. (Sec. 101) Sets a deadline by which each State may elect to require retail electric competition in accordance with prescriptions under this Act for every regulated and nonregulated local distribution company providing local distribution service. Prescribes implementation guidelines. Exempts regulated and nonregulated companies that have: (1) adopted a plan providing open access to local distribution facilities for retail electric suppliers seeking to make retail sales to all classes of retail customers; and (2) have notified the Federal Energy Regulatory Commission (FERC)accordingly. Cites circumstances under which a State (and a nonregulated electric utility) may prohibit a distribution facility from selling to retail electric consumers energy that is generated by non-competitive facilities in another State (i.e. no retail reciprocity). Permits acquisition of retail electric energy on an aggregate basis by an entity acting on behalf of a group of customers if notice of retail competition has been filed. Denies Federal courts jurisdiction for actions regarding retail competition (except for Supreme Court review). Declares the retail reciprocity provisions applicable to: (1) any foreign person or electric utility which is a citizen of a signatory to the North American Free Trade Agreement; and (2) electric energy imports. Prescribes privacy guidelines governing consumer proprietary information. (Sec.102) Amends the Federal Power Act (FPA) to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants FERC, for purposes of approving and enforcing compliance with such standards, jurisdiction over: (1) the Electric Reliability Organization; (2) all affiliated regional reliability entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all system operators; and (4) all users of the bulk-power system. Provides that, prior to the establishment of the Electric Reliability Organization (Organization), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) may file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable. Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) Organization standards. Requires all users of the bulk-power system to comply with such standards. Mandates that: (1) the Organization take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the governments of Canada and Mexico to effectuate compliance with Organization standards, and to provide for the effectiveness of the Organization's mission. Requires every system operator to be a member of the Electric Reliability Organization, and of any affiliated regional reliability entity operating under an agreement applicable to the region in which the system operator operates or is responsible for the operation of a bulk-power system facility. Empowers the Organization to take disciplinary and enforcement action. Directs the Organization to assess periodically the reliability and adequacy of the interconnected bulk-power system in North America, and to report its findings and recommendations annually to FERC and to the Secretary of Energy. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each affiliated regional reliability entity, respectively. Presumes to be in compliance with Federal anti-trust laws those activities undertaken by the Organization, an affiliated regional reliability entity, or members of those entities pursuant to this Act. (Sec. 103) Mandates that a local distribution utility allow interconnection with a facility if the facility owner is an electric customer which is provided local distribution service and complies with a final Federal ruling governing such interconnection. (Sec. 104) Requires the Federal Trade Commission (FTC) to promulgate, in consultation with selected Federal agencies, mandatory electric supplier information disclosures governing any electric supplier with a capacity in excess of five megawatts that sells electric energy. Prescribes mandatory disclosures. Prescribes guidelines governing FERC mitigation of electric utility market power domination resulting in electric energy prices that exceed the prices that would be charged in a fully competitive market. Authorizes the States to prescribe additional requirements. Directs the FTC to establish and enforce rules governing unfair trade practices with respect to: (1) selection by a retail electric customer of a retail electric supplier ("slamming"); and (2) express consent by a retail electric customer for the purchase of goods and services ("cramming"). (Sec. 107) Amends the FPA to declare it does not preempt or otherwise affect any authority under State or local municipal law to: (1) require unbundled transmission and local distribution services for electric energy delivery directly to an ultimate consumer; or (2) impose a delivery charge on such consumer's receipt of electric energy. Retains the exclusive jurisdiction of FERC over unbundled transmission in interstate commerce. Authorizes FERC to: (1) require public utilities and transmitting utilities to provide open access transmission services; (2) permit recovery of stranded costs arising from any requirement to provide open access transmission services; and (3) require the transmission of electric energy to an ultimate consumer if a notice of retail competition is in effect with respect to such consumer, or if a distribution utility offers such consumer open access to its delivery facilities. Requires FERC to issue an order requiring the transmission of electric energy upon application of either an Indian tribe, or a Department of Defense military base facility, regardless of whether a notice of retail competition has been filed. Authorizes a State regulatory authority, a transmitting utility; or a local distribution company to apply to FERC for a determination whether a particular facility used for the transportation of electric energy located in the State is: (1) a local distribution facility subject the State regulatory authority; or (2) a transmission facility subject to FERC. (Sec. 108) Cites circumstances under which: (1) FERC may order the establishment of an entity to independently operate and control interconnected transmission facilities and generators, and may order a transmitting utility to relinquish operating control over its transmission facilities to such entity; and (2) designated Federal utilities may participate in a regional transmission system operation. (Sec. 109) Repeals FPA wheeling provisions pertaining to: (1) the Columbia River Transmission System; and (2)the Electric Reliability Council of Texas (ERCOT). (Sec. 110) Conditions electric company mergers and acquisitions upon prior FERC authorization. Subjects generation facilities to FERC jurisdiction. (Sec. 111) Grants the consent of Congress to an interstate compact to establish a regional transmission planning agency subject to specified FERC determinations. (Sec. 112) Expresses the sense of Congress that: (1) every consumer should have access to electric energy at reasonable, affordable rates; and (2) FERC and the States should ensure that competition does not result in the loss of service to rural, residential, or low-income consumers. (Sec. 114) Directs FERC to study and report to Congress on the extent to which retail electric customers of certain local distribution companies benefit from adoption of retail electric competition. Title II: Provisions Respecting the Public Utility Holding Company Act of 1935 - Public Utility Holding Company Act of 1999 - Repeals the Public Utility Holding Company Act of 1935, except with respect to a holding company system whose subsidiary public-utility company provides retail electric or gas service in two or more States whose regulatory authority has not: (1) provided notice of retail competition in accordance with statutory guidelines; or (2) required distribution utilities to provide open access service over their distribution facilities. (Sec. 204) Prescribes procedural guidelines for both FERC and State access to records of a public utility or natural gas holding company (including subsidiaries, associates and affiliates). (Sec. 205) Precludes such State access to any person that is a holding company solely by reason of ownership of one or more qualifying facilities under PURPA. (Sec. 206) Instructs FERC to promulgate a final rule to exempt specified holding companies from such access requirements. Requires FERC to exempt any person or transaction from such access requirements if it finds that regulation of such person or transaction is irrelevant to the jurisdictional rates of a public utility or natural gas company. (Sec. 207) Retains the jurisdiction of FERC and State commissions to determine whether a public utility company or natural gas company may recover in rates any costs of affiliate transactions. (Sec. 208) Declares this Act inapplicable to: (1) the United States; (2) a State or its political subdivision; and (3) a foreign governmental authority not operating in the United States. (Sec. 210) Grants FERC certain FPA enforcement powers. (Sec. 213) Transfers from the Securities and Exchange Commission to FERC all books and records that relate primarily to the functions vested in FERC by this Act. (Sec. 214) Authorizes appropriations. (Sec. 215) Amends the FPA to repeal its conflict of jurisdiction guidelines. Title III: Provisions Respecting the Public Utility Regulatory Policies Act of 1978 - Ratepayer Protection Act of 1999 - Amends the Public Utility Regulatory Policies Act of 1978 to declare that after enactment of this Act, no electric utility shall be required to enter into a new contract or obligation to purchase or sell electric energy or capacity pursuant to PURPA provisions governing cogeneration and small power production. (Sec. 304) Directs FERC to promulgate and enforce regulations to assure that no utility shall be required to absorb the costs (thus allowing a utility to recover all costs) associated with electric energy or capacity purchases from a qualifying facility executed before enactment of this Act, to the extent that the utility cannot otherwise reasonably mitigate such costs. Provides that such regulations shall be treated as a rule enforceable under the FPA. Title IV: Federal Power Marketing Administrations and Tennessee Valley Authority - Subtitle A: Tennessee Valley Authority - Repeals FPA provisions relating to: (1) interconnection or wheeling orders that result in sales or delivery outside the Tennessee Valley Region; and (2) equitability within territory restricted electric systems. (Sec. 402) Amends the Tennessee Valley Authority Act of 1933 to repeal restrictions placed upon the Tennessee Valley Authority (TVA) to sell or deliver power beyond the area for which it was the primary source of power on July 1, 1957. (Sec. 403) Prohibits TVA sales of electric energy to an end use or retail customer that did not have a purchase contract for services to specific facilities on the date of enactment of this Act. Sets forth prerequisites under which sales of TVA wholesale electric energy and services for use outside the Tennessee Valley Region are: (1) restricted to excess electric energy; and (2) subject to FPA and FERC rules and regulations. (Sec. 404) Prohibits TVA acquisition of any new major generating resource: (1) unless financial arrangements have been made to ensure that the customer on whose behalf such acquisition has been made has committed to pay the full costs of the resource; and (2) that it reasonably expects will necessitate use of its authority to recover certain nonrecoverable costs. (Sec. 405) Mandates that TVA and its distributors renegotiate existing long-term contracts with respect to: (1) remaining term; (2) length of termination notice; (3) amount of electric energy that distributors may purchase from non-TVA suppliers, including access to the TVA transmission system; and (4) stranded costs recovery. (Sec. 406) Subjects TVA electric energy transmission and local distribution to the jurisdiction of FERC and the FPA. Mandates FERC approval as a prerequisite to any significant TVA transmission plant investment. Permits any municipality or cooperative organization that is a customer of TVA electric energy to: (1) avoid TVA regulatory authority regarding the rates or terms of its resales of electric energy for profit; and (2) replace TVA oversight authority with that of its own governing body. Amends PURPA to redefine "State regulatory authority" so as to remove TVA as a State agency with ratemaking authority over sales of electric energy by any electric utility (thus terminating TVA jurisdiction under PURPA). (Sec. 408) Directs FERC to promulgate regulations governing recovery of stranded costs imposed on TVA by either a departing power customer, or by a departing transmission customer. Mandates that such regulations shield customers that did not impose stranded costs upon TVA from liability for paying them on behalf of other customers. Conditions TVA recovery of stranded costs upon FERC approval. Precludes FERC from imposing stranded cost recovery charges after FY 2007, without the consent of the person against whom such charges are assessed. Mandates that any TVA stranded costs recovery charges be unbundled from other rates and stated separately on the customer's bill. (Sec. 409) Proscribes TVA participation in a FERC-regulated regional transmission planning agency that would require it, or combined users of TVA's transmission system, to pay a disproportionate share of agency costs. (Sec. 410) Places TVA within Federal antitrust purview. (Sec. 411) Mandates that TVA offer its local distribution facilities for sale pursuant to FERC prescriptions. Permits TVA customers to elect retention of such facilities, but precludes inclusion of the costs of such facilities in TVA transmission rates. Proscribes TVA construction of facilities designed to operate at less than 35 kilovolts. Subtitle B: Bonneville Power Administration - Amends the FPA to prescribe procedural guidelines under which FERC shall provide for the imposition of surcharges for transmission services over the Bonneville Transmission System in order for the Bonneville Administrator to meet certain statutory cost recovery requirements. (Sec. 426) Subjects the Bonneville Power Administration to Federal antitrust jurisdiction. Subtitle C: Other Power Marketing Administrations - Instructs the Secretary of Energy to promulgate procedural guidelines governing the accounting principles and requirements of the Western, Southwestern, and Southeastern Power Administrations, including compliance and administrative reconciliation. (Sec. 433) Sets parameters for participation by the Federal power marketing administrations in a FERC-approved and regulated regional transmission planning agency. Subjects such administrations to Federal antitrust jurisdiction. Title V: Renewable Energy - Amends PURPA to set a deadline by which the Administrator of the Energy Information Administration in the Department of Energy shall publicize the estimated percentage of total domestic electric energy generation to be supplied by renewable energy during calendar year 2004. (Sec. 501) Sets a deadline by which a retail electric supplier shall submit to the Secretary Renewable Energy Credits equal to a certain annual percentage of total electric energy sold to electric consumers in the calendar year. Prescribes implementation guidelines. (Sec. 502) Requires each retail electric supplier to make net metering service available upon request to a retail electric consumer served or solicited by such supplier. Authorizes State imposition of: (1) additional requirements; and (2) a cap limiting the amount of net metering available in the State. Retains State authority to require a retail electric supplier to make net metering service available to a retail electric consumer. Title VI: Provisions Relating to the Internal Revenue Code - Amends the Internal Revenue Code to extend for five years the tax credit for producing electricity from renewable resources. (Sec. 602) Allows a credit against tax for: (1) certain qualified energy efficiency improvements; (2) construction of new energy efficient homes; and (3) combined heat and power system property. (Sec. 605) Redefines "private business use" to exclude open access transactions with respect to an electric output facility owned by a governmental unit. Permits certain bond issuers to make an irrevocable election to terminate certain tax-exempt financing for electric output facilities.


Bill Number: H.R. 2602
Short Title: National Electricity Interstate Transmission Reliability Act
Introduced: July 22, 1999

Sponsor: Congressman Albert Wynn (D-MD)

Purpose: To amend the Federal Power Act with respect to electric reliability and oversight, and for other purposes.

Summary: Amends the Federal Power Act to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants the Federal Energy Regulatory Commission (FERC) jurisdiction, for purposes of approving and enforcing compliance with standards in the United States, over: (1) the electric reliability organization; (2) all Affiliated Regional Reliability Entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all system operators; and (4) all users of the bulk-power system. Provides that, prior to the establishment of the Electric Reliability Organization (Organization), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) may file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable. Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) Organization standards. Requires all users of the bulk-power system to comply with such standards. Mandates that: (1) the Organization take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the Governments of Canada and Mexico to effectuate compliance with Organization standards and to provide for the effectiveness of the Organization's mission. Requires every system operator to be a member of the electric reliability organization and of any Affiliated Regional Reliability Entity operating under an agreement applicable to the region in which the system operator operates or is responsible for the operation of a bulk-power system facility. Empowers the Organization to take disciplinary and enforcement action. Directs the Organization to assess periodically the reliability and adequacy of the inter-connected bulk-power system in North America, and to report its findings and recommendations annually to FERC and to the Secretary. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each Affiliated Regional Reliability Entity.


Bill Number: H.R. 2734
Short Title: Community Choice for Electricity Act of 1999
Introduced: August 5, 1999
Sponsor: Congressman Sherrod Brown (D-OH)

Purpose: To allow local government entities to serve as nonprofit aggregators of electricity services on behalf of their citizens.

Summary: Permits a customer group, or any entity (including a unit of State or local government) acting on behalf of such group, to acquire retail electric energy on an aggregate basis if the customer group is served by one or more local distribution companies subject to retail competition. Amends the Public Utility Regulatory Policies Act of 1978 to declare that any State that permits a retail electric consumers group to choose among competing electric energy suppliers shall also permit any general purpose local government unit (or group of such units acting together) to offer to act as purchasing agent for consumers' group purchasers in order to purchase electric energy on an aggregate basis (community choice aggregation). Prescribes implementation guidelines. Requires any State that has deregulated retail sales of electricity to permit local governments to exercise local franchise powers. Excludes from the purview of this Act: (1) non-participating municipal electric utilities and non-participating rural electric cooperatives; and (2) States that have adopted retail competition prior to the date of enactment of this Act. Allows subsequent regulations implementing any State law adopting retail competition to pertain to an opt-out aggregation plan as it may be undertaken by a general purpose local government unit.


Bill Number: H.R. 2944
Short Title: Electricity Competition and Reliability Act
Introduced: September 24, 1999
Sponsor: Congressman Joe Barton (R-TX)

Purpose: To promote competition in electricity markets and to provide consumers with a reliable source of electricity, and for other purposes.

Summary: Title I: Open Transmission Access - Amends the Federal Power Act (FPA) to declare that Federal regulation of electric energy transmission and sales: (1) does not affect State or municipality authority to require either retail electric competition or unbundled transmission and local distribution service for the delivery of electric energy directly to a retail electric consumer; (2) includes the unbundled transmission of electric energy sold at retail; and (3) does not extend to bundled retail sale of electric energy, the local distribution service component of any unbundled retail electric energy sale, or any retail sale component of unbundled retail electric energy sales which are each subject to State regulation. (Sec. 102) Authorizes the Federal Energy Regulatory Commission (FERC) to: (1) require transmitting utilities to provide transmission services on a nondiscriminatory basis; (2) authorize recovery of stranded costs arising from such requirement; and (3) mandate electric energy transmission directly to retail electric consumers served by local distribution facilities that are subject to open access. Repeals State regulatory authority over the wholesale transmission or sale of certain electric energy that crosses international borders but is not subsequently transmitted into other States. (Sec. 103) Sets a deadline by which each transmitting utility shall either establish or join a regional transmission organization. Permits the Federal transmitting utilities (Tennessee Valley Authority, Bonneville Power Administration, Southwestern Power Administration, and Western Area Power Administration) to participate in such an organization. Prescribes standards and other requirements for such organizations. Directs FERC to encourage incentive transmission pricing policies for approved organizations. (Sec. 104) Grants the consent of Congress to compacts among the States to establish regional transmission siting agencies. (Sec. 105) Permits FERC to mandate that a transmitting utility expand or improve its facilities for electric energy transmission in interstate commerce, subject to the National Environmental Policy Act of 1969 and all other applicable State and Federal laws. Title II: Electric Reliability - Grants FERC regulatory jurisdiction over the electric reliability organization (organized pursuant to this Act), all affiliated regional reliability entities, all system operators, and all users of the bulk-power system for purposes of enforcing compliance with this Act. Sets forth procedural guidelines for establishment of a FERC- approved electric reliability organization (ERO) whose function shall be to develop and enforce standards for an adequate level of reliability of the bulk-power system. Prescribes implementation guidelines. (Sec. 201) Requires the ERO to take all appropriate steps to gain recognition in Canada and Mexico. Requires the United States to use its best efforts to enter into an agreement with such countries to provide for effective compliance with organization standards. Mandates system operator membership in such electric reliability organization, and in the appropriate affiliated regional reliability entity. Mandates annual ERO status reports regarding system reliability and adequacy. Empowers the ERO to take disciplinary and enforcement action. Title III: Consumer Protection - Directs the Federal Trade Commission (FTC) to promulgate rules governing: (1) mandatory disclosure by any retail or wholesale electric vendor to either electric consumers or purchasers; (2) retail electric energy consumer privacy; and (3) unfair trade practices in connection with retail consumer selection of a retail electric supplier ("slamming") and consent for the purchase of goods and services ("cramming"). (Sec. 304) Expresses the sense of Congress that: (1) every retail electric consumer should have access to electric energy at reasonable and affordable rates; and (2) the States should ensure that retail electric competition does not result in the loss of service to rural, residential, or low-income consumers. Title IV: Mergers - Amends the FPA to subject to FERC approval electric company mergers and disposition of properties (including a holding company in a holding company system that includes an electric utility company). (Sec. 402) Amends the Atomic Energy Act of 1954 to repeal the requirement that the Nuclear Regulatory Commission forward license applications for certain utilization or production facilities to the Attorney General for antitrust review. Title V: Promoting Competition - Subtitle A: Retail Reciprocity - Amends the Federal Power Act to declare that sales by retail electric energy suppliers (including suppliers located in a foreign country that is a signatory to the North American Free Trade Agreement) are subject to open access (retail reciprocity). Subtitle B: Public Utility Holding Company Act of 1935 - Repeals the Public Utility Holding Company Act of 1935. (Sec. 513) Prescribes procedural guidelines for both FERC and State access to records of a public utility or natural gas holding company (including associates and affiliates). (Sec. 515) Instructs FERC to promulgate a final rule to exempt specified holding companies from such access requirements. Requires FERC to exempt any person or transaction from such access requirements if it finds that regulation of such person or transaction is irrelevant to the jurisdictional rates of a public utility or natural gas company. (Sec. 516) Retains the jurisdiction of FERC and State commissions to determine whether a public utility company or natural gas company may recover in rates certain costs of an associate company. (Sec. 517) Declares this Act inapplicable to: (1) the United States; (2) a State or its political subdivision; and (3) a foreign governmental authority not operating in the United States. (Sec. 519) Grants FERC certain FPA enforcement powers. (Sec. 522) Transfers from the Securities and Exchange Commission to FERC all books and records that relate primarily to the functions vested in FERC by this Act. (Sec. 524) Amends the FPA to repeal its conflict of jurisdiction guidelines. Subtitle C: Public Utility Regulatory Policies Act of 1978 - Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to declare that, upon enactment of this Act, no electric utility shall be required to enter into a new contract or obligation to purchase or sell electric energy or capacity pursuant to PURPA provisions governing cogeneration and small power production. (Sec. 532) Directs FERC to promulgate and enforce regulations to assure that no utility shall be required to absorb the costs associated with electric energy or capacity purchases from a qualifying facility executed prior to enactment of this Act (thus assuring such utilities recovery of all costs associated with such purchases). Provides that such regulations shall be treated as a rule enforceable under the FPA. Subtitle D: Additional Provisions Promoting Competition - Permits acquisition of retail electric energy on an aggregate basis by a group of retail electric consumers, or any entity acting on behalf of such group, if the group is served by local distribution companies whose facilities are subject to open access. (Sec. 542) Requires a local distribution company to allow its retail electric consumers who are certain small-sized power generation facilities to interconnect with its facilities. Title VI: Federal Electric Utilities - Subtitle A: Tennessee Valley Authority - Amends the FPA to repeal: (1) hearing, notice and review procedures relating to interconnection or wheeling orders that result in electric power sales or delivery outside the Tennessee Valley Region; and (2) guidelines governing equitability within territory restricted electric systems (transmission within the Tennessee Valley Region). (Sec. 602) Amends the Tennessee Valley Authority Act of 1933 to repeal restrictions placed upon the Tennessee Valley Authority (TVA) to sell or deliver power beyond the area for which it was the primary source of power on July 1, 1957. (Sec. 603) Specifies circumstances under which TVA may: (1) sell electric power at retail; and (2) sell excess electric power at wholesale for use outside the Tennessee Valley Region. (Sec. 605) Mandates that TVA and its distributors renegotiate existing long-term contracts with respect to: (1) remaining term; (2) length of termination notice; (3) amount of electric energy that distributors may purchase from non-TVA suppliers, including access to the TVA transmission system; and (4) stranded costs recovery. (Sec. 606) Subjects TVA transmission and local distribution of electric power to FPA jurisdiction to the same extent as a public utility transmission of electric power in interstate commerce is subject to such jurisdiction. (Sec. 607) Permits a distributor to elect to avoid certain TVA regulatory authority regarding certain future wholesale sales of electric power by the TVA. Amends PURPA to redefine "State regulatory authority" so as to remove TVA as a State agency with ratemaking authority over sales of electric energy by any electric utility. Replaces TVA regulatory authority over distributors with that of the distributor's own governing body. (Sec. 608) Prescribes procedural guidelines for FERC approval of TVA plans for recovery of its stranded costs. Bars TVA use of such recovered proceeds to pay for additions to TVA's generating capacity. Mandates that the annual TVA management report to Congress include: (1) long-range financial plans; (2) source of funds used for TVA capacity additions; and (3) reduction of publicly-held TVA debt. (Sec. 609) Subjects the TVA to Federal antitrust jurisdiction. Subtitle B: Bonneville Power Administration - Subjects to the regulatory purview of the FPA the Bonneville Transmission System (the System), including the transmission of electric energy and the provision of necessary associated services over such System. (Sec. 623) Prescribes procedural guidelines for FERC approval of proposals initiated by the Bonneville Administrator (Administrator) to place a surcharge on transmission rates to meet certain statutory cost recovery requirements. (Sec. 624) Bars the Bonneville Power Administration (BPA) from selling electric energy or capacity to any retail electric consumer that was not under contract for the purchase of electric energy on October 1, 1998. (Sec. 625) Amends the Pacific Northwest Electric Power Planning and Conservation Act to restrict the acquisition of new major BPA generating resources to: (1) FERC determination of customer payment-in-full for such resources; and (2) BPA determination that no surcharge will be required in connection with such acquisition. (Sec. 626) Subjects the BPA to Federal antitrust jurisdiction. Subtitle C: Other Power Marketing Administrations - Mandates that rates and charges made by each Federal power marketing administration (PMA) shall be the lowest possible that will recover all costs incurred by the United States for the production of electric energy sold by such PMAs. Defines PMAs, under this subtitle, to mean the Western Area Power Administration, the Southwestern Power Administration, and the Southeastern Power Administration. Grants FERC modification powers with respect to proposed rates submitted by any PMA, including terms and conditions of sale. (Sec. 633) Subjects PMA transmission of electric energy to FPA regulatory jurisdiction. (Sec. 634) Directs FERC to promulgate guidelines governing the accounting principles and requirements of the PMAs, including compliance and administrative reconciliation. (Sec. 635) Subjects each PMA to Federal antitrust laws with respect to sales of electric energy and capacity and the operation of its transmission system. Title VII: Environmental Provisions - Amends the Energy Policy Act of 1992 to direct the Secretary of Energy to make incentive payments to the owner or operator of a qualified renewable energy facility for electric energy generated and sold. Prescribes implementation guidelines. (Sec. 702) Requires each retail electric supplier to make net metering service available upon request to a retail electric consumer served or solicited by such supplier. Authorizes State imposition of: (1) additional requirements; and (2) a cap limiting the amount of net metering available in the State. Retains State authority to require a retail electric supplier to make net metering service available to a retail electric consumer. Title VIII: Provisions Relating to Internal Revenue Code - Amends the Internal Revenue Code (IRC) to include among the sources of allowable income received or accrued by tax-exempt mutual or cooperative electric companies any revenues received from non-members for qualified open access activities. (Sec. 802) Amends the IRC, with respect to tax-exempt bond financing of certain electric facilities, to define "private business use" to exclude open access transactions with respect to an electric output facility owned by a governmental unit. Permits certain bond issuers to make an irrevocable election to terminate certain tax-exempt financing for electric output facilities. (Sec. 803) Revises IRC rules for nuclear decommissioning costs to increase the amount permitted to be paid into the Nuclear Decommissioning Reserve Fund. (Sec. 804) Revises prescriptions governing renewable energy tax credits to: (1) expand the definition of qualified facility to include a facility using wind to produce electricity; and (2) deny a credit against tax for electricity sold to utilities under certain contracts. Title IX: Miscellaneous Provision - Instructs the Secretary of Energy to report to Congress on the extent to which actions taken by the States have removed regulatory and statutory barriers to interstate commerce in electric energy.


Bill Number: H.R. 4881
Short Title: Electric Reliability 2000 Act
Introduced: July 18, 2000
Sponsor: Congressman Adam Smith (D-WA)

Purpose: To benefit electricity consumers by promoting the reliability of the bulk-power system.

Summary: Amends the Federal Power Act to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants the Federal Energy Regulatory Corporation (FERC) jurisdiction, for purposes of approving and enforcing compliance with standards in the United States, over: (1) the electric reliability organization; (2) all Affiliated Regional Reliability Entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all system operators; and (4) all users of the bulk-power system. Provides that, prior to the establishment of the Electric Reliability Organization (Organization), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) may file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable. Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) Organization standards. Requires all users of the bulk-power system to comply with such standards. Mandates that: (1) the Organization take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the governments of Canada and Mexico to effectuate compliance with Organization standards, and to provide for the effectiveness of the Organization's mission. Requires every system operator to be a member of the Organization and of any Affiliated Regional Reliability Entity operating under an agreement applicable to the region in which the system operator operates or is responsible for the operation of a bulk-power system facility. Empowers the Organization to take disciplinary and enforcement action. Directs the Organization to assess periodically the reliability and adequacy of the inter-connected bulk-power system in North America, and to report its findings and recommendations annually to FERC and to the Secretary. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each Affiliated Regional Reliability Entity, respectively. Sets forth antitrust defenses for activities undertaken by the Organization, its members, or members of an affiliated regional reliability entity. Instructs FERC to establish a regional advisory body on the petition of the Governors of at least two-thirds of the States within a region that have more than one-half of their electrical loads served within the region. Restricts such body to the 48 contiguous States.


Bill Number: H.R. 4941
Short Title: National Electric Reliability Act
Introduced: July 24, 2000
Sponsor: Congressman Albert Wynn (D-MD)

Purpose: To amend the Federal Power Act to provide for the reliability of the electric power transmission system in the United States, and for other purposes.

Summary: Amends the Federal Power Act to provide for the establishment and enforcement of mandatory reliability standards to ensure the reliable operation of the bulk-power system. Grants the Federal Energy Regulatory Corporation (FERC) jurisdiction, for purposes of approving and enforcing domestic compliance with standards controlling: (1) the electric reliability organization; (2) all Affiliated Regional Reliability Entities (entities to which authority has been delegated to enforce compliance with reliability standards); (3) all system operators; and (4) all users of the bulk-power system. Provides that, prior to the establishment of the Electric Reliability Organization (Organization), any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) may file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable. Prescribes procedural guidelines for FERC approval of: (1) applications competing for status as the Electric Reliability Council; and (2) Organization standards. Requires all users of the bulk-power system to comply with such standards. Mandates that: (1) the Organization take all appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into international agreements with the governments of Canada and Mexico to effectuate compliance with Organization standards, and to provide for the effectiveness of the Organization's mission. Requires every system operator to be a member of the electric reliability organization, and of any Affiliated Regional Reliability Entity operating under an agreement applicable to the region in which the system operator operates or is responsible for the operation of a bulk-power system facility. Empowers the Organization to take disciplinary and enforcement action. Directs the Organization to assess periodically the reliability and adequacy of the inter-connected bulk-power system in North America, and to report its findings and recommendations annually to FERC and to the Secretary. Provides for the assessment and recovery of implementation and enforcement costs incurred by the Organization and each Affiliated Regional Reliability Entity, respectively. Directs the Commission to establish a regional advisory body on the petition of at least two-thirds of the States within a region that have more than one-half of their electric loan served within the region. Authorizes a regional advisory body to provide advice to the electric reliability organization, an affiliated regional reliability entity, or the Commission on: (1) the governance of an existing or proposed affiliated regional reliability entity; and (2) whether an organization standard, entity rule, variance, or assessment fees proposed to apply within the region is just, reasonable, not unduly discriminatory or preferential, and in the public interest.