Federal Electricity Restructuring Legislation

Bill Number: S. 172
Short Title: Electric Reliability Act
Introduced: January 24, 2001
Sponsor: Senator Gordon Smith (R-OR)

Purpose: Amends the Federal Power Act to establish mandatory reliability standards for the bulk-power system.

Summary: Amends the Federal Power Act to establish mandatory reliability standards for the bulk-power system. Grants the Federal Energy Regulatory Corporation (FERC) jurisdiction, over: (1) the electric reliability organization (ERO, established by this Act); (2) Affiliated Regional Reliability Entities; (3) system operators; and (4) users of the bulk-power system. Mandates that: (1) ERO take appropriate steps to gain recognition in Canada and Mexico; and (2) the United States use its best efforts to enter into agreements with Canada and Mexico to effectuate compliance with ERO standards. Grants the ERO disciplinary and enforcement powers. Permits recovery of implementation and enforcement costs incurred by the ERO and each Affiliated Regional Reliability Entity, respectively. Instructs FERC to establish a regional advisory body upon the petition of certain State Governors. Limits ERO authority exclusively to bulk-power system reliability standards. Denies the ERO and FERC any authority to set and enforce compliance with adequacy or safety standards governing either electric facilities or services. Declares that nothing in this Act preempts State action that is not inconsistent with ERO standards.