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Appendix C

Pending Federal Restructuring Legislation

(As of May 1, 2000)


106th Congress House of Representatives Bills

H.R. 341

Environmental Priorities Act of 1999

Introduced on January 19, 1999 by Representative Robert Andrew (D-NJ).

  • Gives the Environmental Protection Agency (EPA) the authority to establish a National Environmental Priorities Board, and requires the EPA Administrator to promulgate a final rule containing the rules and procedures of the Board. The Board is to support State environmental projects, and may include loans, loan guarantees, grants, capitalization grants, and other assistance.


  • Mandates that retail electric service providers must contribute 10 percent of the total consumer savings to the Environmental Priorities Board once retail electric service choice has been established.

H.R. 667

The Power Bill

Introduced by Representative Richard Burr (R-NC) on February 10, 1999.

  • Clarifies States' authority to order retail wheeling and imposes reciprocity requirements with respect to sales of electricity by out-of-state entities.


  • Grants cooperatively owned sellers or distributors of electricity the right to engage in any activity or provide any service lawfully carried out by any other seller or distributor of electricity in the State.


  • Authorizes a State or State regulatory authority to impose charges upon purchases of retail electric energy services, including fees: (1) to recover costs incurred by an electric utility that become unrecoverable due to the availability of retail electric service choice; (2) to pay all reasonable costs associated with governmental requirements regarding decommissioning of nuclear generating units; and (3) to fund public benefit programs.


  • Declares that, as of January 1, 1999, new electric utility contracts for purchase or sale shall no longer be subject to cost provisions of Section 210 of the Public Utility Regulatory Policies Act of 1978. Additionally, authorizes recovery of all costs associated with prior contracts involving purchases of electric energy or capacity from a cogeneration and small power production facility by electric utilities.


  • Repeals the Public Utility Holding Company Act of 1935. Prescribes guidelines for Federal and State access to books and records of electric utility holding companies and their affiliates to ensure consumer rate protection.


  • Requires State laws or regulations for the recovery of stranded costs to be filed with FERC as a prerequisite to State receipt of Federal energy assistance. Precludes any modification or repeal of such laws or regulations for 7 years after such filing date.


  • Instructs the Secretary of Energy to present a status report (2 years after enactment of proposed legislation) to the Congress on the extent to which State actions have removed regulatory and statutory barriers to interstate commerce in electricity.

H.R. 721

Bond Fairness and Protection Act of 1999

Introduced by Representative J.D. Hayworth (R-AZ) on February 11, 1999.

  • Amends the Internal Revenue Code of 1986 (with respect to tax-exempt bond financing of certain electric facilities) to exclude a permitted open access transaction (as defined by this Act) from the definition of private business use.


  • Grants public power utilities the option of grandfathering outstanding tax-exempt debt subject to abrogating issuing tax-exempt bonds to finance new facilities in the future. Alternatively, they may continue to issue tax-exempt bonds subject to current private use limitations in the tax code.


H.R. 971

Electric Power Consumer Rate Relief Act of 1999

Introduced by Representative James Walsh (R-NY) on March 3, 1999.

  • Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to provide that a State regulatory authority may ensure that rates charged by qualifying small power producers and qualifying cogenerators to purchasing utilities are (1) just and reasonable to consumers of the purchasing utility and (2) do not exceed the incremental cost to the purchasing utility of alternative electric energy and capacity at the time of delivery.


  • Grants States the ability to establish programs for monitoring the operating and efficiency performance of in-state cogeneration and small power production facilities to determine whether such facilities meet FERC standards for qualifying cogenerators.


  • Allows a State regulatory authority to require that any contract entered into before the enactment date of proposed legislation be amended to conform to the requirements governing rates to retail customers.

H.R. 1138

Ratepayer Protection Act

Introduced by Representative Cliff Stearns (R-FL) on March 16, 1999.

  • Mandates that the Public Utility Regulatory Policies Act of 1978 (PURPA) requirement that electric utilities enter into contracts to purchase electricity from certain cogeneration and small power production facilities shall expire after January 6, 1999.


  • Mandates that all power purchase contracts which were in effect up to January 6, 1999 be honored.


  • Directs the Federal Energy Regulatory Commission (FERC) to ensure that utilities are not required to absorb costs associated with electric energy or capacity purchases executed prior to the enactment of proposed legislation.

H.R. 1253

A Bill to Amend the Internal Revenue Code of 1986 to Restrict the Use of Tax-Exempt Financing by Governmentally Owned Electric Utilities and to Subject Certain Activities of Such Utilities to Income Tax

Introduced by Representative Phillip English (R-PA) on March 24, 1999.

  • Narrows the Internal Revenue Tax Code definition of circumstances under which governmentally owned electric utilities may finance utility facilities with tax-exempt bonds.


  • Subjects utility-related income of governmental entities to Federal income tax in situations where the income is derived from sources outside their specified service area.

H.R. 1486

Power Marketing Administration Reform Act of 1999

Introduced by Representative Bob Franks (R-NJ) on April 20, 1999.

  • Requires the Secretary of Energy to develop and implement procedures to ensure that the Federal Power Marketing Administrations (FPMAs) utilize the same accounting principles and requirements as the Federal Energy Regulatory Commission (FERC).


  • Requires each FPMA and the Tennessee Valley Authority (TVA) to submit periodically, for FERC review, rates for the sale or disposition of Federal energy that will ensure recovery of all their costs in generating and marketing such energy.


  • Prescribes rate mechanism and pricing guidelines.


  • Establishes a fund within the Department of the Interior to (1) mitigate damage to environmental resources attributable to power generation and sales facilities, and (2) restore the health of such resources, including fish and wildlife. Mandates project-specific mitigation plans for each power generation project.


  • Establishes a fund within the Department of Energy for renewable resources. Prescribes expenditure guidelines.


  • Mandates that public bodies and cooperatives be given a preference for future power allocations or reallocations of Federal power through a right of first refusal at market prices.


  • Instructs the Secretary of Energy to require each FPMA to (1) assign personnel and incur expenses solely for authorized power marketing, reclamation, and flood control activities, and not for diversification into ancillary activities; and (2) make annual public disclosures of its activities, including the full costs of power projects and marketing.


  • Precludes an FPMA from entering into or renewing any power marketing contract for a term exceeding 5 years.


  • Requires provision of FPMA transmission services on an open access basis, and at FERC-approved rates in the same manner as provided by any public utility under FERC jurisdiction.


  • Grants FERC rate-making approval authority until a full transition is made to market-based rates, for (1) rate schedules recommended by the Secretary of Energy; and (2) rate schedules for FPMA power sales.


  • Amends: (1) the Department of Energy Organization Act to reflect the changes made by this Act; and (2) specified Federal law to repeal the prohibition against the use of appropriated funds for purposes relating to the possibility of changing from an "at cost" to a "market rate" or any other noncost-based method for pricing Federal hydroelectric power.

H.R. 1587

Electric Energy Empowerment Act of 1999

Introduced by Representative Cliff Stearns (R-FL) on April 27, 1999.

  • 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. Prescribes implementation guidelines.


  • Allows States or State regulatory authorities to impose charges for recovery of stranded costs to ensure reliability and availability of electric supply, to support low-income residential programs, to retrain electric employees, to fund environmental programs, and to provide payment for reasonable costs associated with nuclear decommissioning.


  • Amends FPA by placing the State in charge of regulation of bundled electric retail sales and unbundled local distribution service.


  • Authorizes FERC to distinguish, after consulting with appropriate State regulatory authorities, between facilities used for transmission and delivery that are subject to FERC approval and those subject to State jurisdiction.


  • Encourages creation of Independent Transmission System Operators to ensure that all sellers and buyers of electricity have access to nondiscriminatory transmission services.


  • Requires public power utilities to conform to open access requirements currently applied to private power utilities.


  • Repeals mandatory power purchase contract requirements set forth in the Public Utility Regulatory Policies Act of 1978 and allows for recovery of stranded costs.


  • Repeals the Public Utility Holding Company Act of 1935.


  • Authorizes Federal and State authorities access to books and records of all companies in a holding company system and for Federal oversight of affiliate transactions for the purpose of protecting consumers with respect to rates.


  • Advocates the formation and operation of an Electric Reliability Council to ensure that competitive restructuring of the electricity industry does not lessen reliability of the electric supply. Prescribes guidelines for formation, membership, funding, and governance.


H.R. 1828

Comprehensive Electricity Competition Act

Introduced by Representative Tom Bliley (R-VA) on May 17, 1999.

  • Provides a flexible mandate for States to require open access to the distribution facilities of regulated and non-regulated electric utilities. AllowsState-regulated and non-regulated utilities to "opt out" of retail competition if, after a hearing before the State regulatory authority, it is determined that retail competition will have a negative impact on certain customer classes.


  • Grants to any person the ability to bring an action, in the appropriate State court, against a State regulatory authority or distribution utility for failure to comply with open access requirements.


  • Eliminates private use limitations on outstanding bonds for publicly owned facilities used in connection with retail competition or open access transmission. Ends the issuance of new tax-exempt bonds for generation or transmission. Continues availability of tax exempt bonds for distribution facilities under current law.


  • Allows States and non-regulated utilities to determine the amount of recoverable stranded costs. Grants FERC authority to establish stranded cost recovery in the absence of State authority.


  • Grants FERC authority to oversee creation of Independent Regional System Operators (IRSOs) and to compel utilities to turn over control of their transmission facilities to such organizations.


  • Encourages regional agreements that facilitate coordination among States with regard to siting and planning of transmission and generation facilities; calls for FERC approval of such agreements.


  • Creates a renewable portfolio system mandating that power sellers use a percentage of non-hydro electric renewable technology. Sets forth requirements of sale and purchase of renewable energy credits and stipulates use of revenue from such sales.


  • Authorizes FERC, upon petition by a State, to require generators to submit a plan mitigating market power which FERC can accept or modify. Clarifies FERC merger review over generation-only companies and holding companies.
  • Requires FERC to approve and oversee an organization that prescribes and enforces mandatory reliability standards.


  • Clarifies the authority of the Environmental Protection Agency to require an interstate trading system for the purpose of reducing nitrogen oxide pollution.


  • Creates a Public Benefits Fund for low-income assistance, energy efficiency programs, consumer education, and development of emerging technologies. Stipulates funding mechanisms and sets forth guidelines of operation.


  • Repeals the Public Utility Holding Company Act of 1935 (PUHCA) 18 months after enactment of proposed legislation. Grants FERC and States access to utility books and records.


  • Eliminates obligatory power purchase contracts mandated in the Public Utility Regulatory Policies Act of 1978 on the date of enactment of proposed legislation.


  • Places Tennessee Valley Authority (TVA) transmission under FERC jurisdiction. Subjects power wheeled through TVA to open access requirements and allows wholesale electric power sales by TVA outside of their traditional service area. Calls for the renegotiation of long-term contracts and authorizes FERC to intervene if conflict arises. Authorizes TVA to join an Independent System Operator.


  • Authorizes FERC to determine transmission rates for the Bonneville Power Administration, Western Area Power Administration, and the Southwestern Power Administration, and allows these Federal Power Administrations to impose a surcharge on sales to recover costs of environmental programs and to join IRSOs.


  • Provides States that have implemented retail competition with the authority to preclude an out-of-state utility with a retail monopoly from selling within the State unless that out-of-state utility permits customer choice.


  • Requires States electing retail competition to establish terms and conditions to protect consumers, including rates that are just and reasonable, measures to ensure privacy of consumer information and that prohibit discriminatory practices by electric utilities. Allows States to impose non-bypassable fees to fund such programs. Authorizes creation of a publicly accessible database that will provide information to consumers on electric utilities which participate in retail competition.


  • Amends PURPA by allowing net metering for renewable energy and granting tax credits for production of energy from renewable resources and production of energy efficient buildings.


  • Grants customers the ability to acquire retail electric energy on an aggregate basis if the group of customers is served by one or more local distribution companies which sell electricity on a competitive basis.


  • Authorizes the provision of grant money for assistance purposes to tribal Indians, Southeast Alaska, and rural and remote communities.


  • Eliminates antitrust review by the Nuclear Regulatory Commission and amends the Internal Revenue Code relating to deductions to a qualified nuclear decommissioning fund.

H.R. 2050

Electric Consumers' Power to Choose Act of 1999

Introduced by Representative Steve Largent (R-OK) on June 8, 1999.

  • Accords States a flexible mandate in terms of retail competition. States may choose to implement retail electric competition for their regulated distribution systems, or choose to opt out if retail competition would negatively impact customers. Nonregulated local distribution companies are also provided with a similar flexible mandate to establish or opt out of retail competition.


  • Grandfathers State plans already underway or on the books and provides a reciprocity provision to keep out companies whose territories are not open to competition. Similar plans adopted by nonregulated local distribution companies will also be grandfathered.


  • Amends tax laws to permit public power and municipal utilities to participate in open access plans without forfeiting the tax-exempt status of their outstanding bonds.


  • Permits States and nonregulated utilities to bar those who have not elected retail choice from selling to electric customers in their State or utility service regions.


  • Allows a group of electric customers to buy retail electricity on an aggregate basis if they are served by one or more electric utilities in consumer choice regions.


  • Provides that States will have jurisdiction over disputes arising from States' or nonregulated utilities' actions in electing to move to retail competition.


  • Directs the Federal Trade Commission to establish rules and penalties to protect consumers from unfair trade practices by electricity suppliers.


  • Amends the Federal Power Act (FPA) to require that electric suppliers and transmitting utilities join an Electric Reliability Organization subject to FERC approval and oversight. Protects such organizations from the provisions of anti-trust laws.


  • Allows small-scale power generators to interconnect with local distribution utilities to facilitate supplies that are closer to end-use requirements.


  • Directs FERC to determine the exercise of market power by an electric utility and to initiate mitigation measures where necessary.


  • Extends FERC's authority over transmission facilities of electric utilities to include facilities of State and municipal utilities, rural electric cooperatives, and facilities that qualify under the Public Utility Regulatory Policies Act of 1978, thus enabling the Commission to set transmission rates for all utilities in the country.


  • Clarifies State and Federal authority over bundled and unbundled retail electric sales by granting FERC exclusive regulatory authority over the transmission component of an unbundled retail sale.


  • Provides FERC with the authority to establish Regional Transmission Organizations (RTOs) by requiring that all transmitting utilities transfer operational control or ownership of their transmission facilities to such an organization.


  • Authorizes FERC to order the BPA and the Electric Reliability Council of Texas to wheel power.


  • Requires FERC to review mergers and property dispositions involving generation-only companies and holding companies.


  • Encourages regional agreements that facilitate coordination among States with regard to siting and planning of transmission and generating facilities subject to approval by FERC of such agreements.


  • Requires States electing retail competition to establish terms and conditions to protect consumers, including rates that are just and reasonable, measures to ensure privacy of consumer infor-mation and that prohibit discriminatory practices of electric utilities. Allows States to impose non-bypassable fees to fund such programs.


  • Exempts holding companies from limitations of the Public Utility Holding Company Act of 1935 eighteen months after enactment of proposed legislation unless they provide retail service in two or more States that do not provide open access. Grants FERC and States access to utilities' books and records to assist regulatory authorities in carrying out their functional responsibilities.


  • Prospectively repeals the Public Utility Regulatory Policies Act of 1978 and eliminates obligatory power purchase contracts. Allows for recovery of stranded costs with respect to purchases from outstanding contracts.


  • Places TVA transmission under FERC jurisdiction. Subjects power wheeled through TVA to open access requirements and sets limitations on electric power sales by TVA. Prohibits the acquisition of new generating resources and calls for the renegotiation of long-term contracts. Repeals TVA's jurisdiction to regulate municipality or cooperative organization distributors and removes TVA's PURPA ratemaking authority. Allows for imposition of charges for the purpose of stranded cost recovery.


  • Subjects BPA to relevant provisions of the FPA for purposes of BPA's transmission systems, but provides that any determination by FERC would be subject to a list of conditions, including a requirement that the rates and charges are sufficient to recover existing and future Federal investment in the Bonneville Transmission System. Requires FERC to establish a rate recovery mechanism to meet BPA's cost recovery requirements.


  • Subjects Power Marketing Administrations (PMAs) to the same accounting principles used by other public utilities and applicable antitrust laws and authorizes PMAs to participate in FERC-approved RTOs.


  • Mandates a renewable portfolio generation minimum standard of 3 percent of total generation and sets forth enforcement procedures for noncompliance. Directs the Secretary of Energy to establish a program to issue, monitor the sale and exchange of, and track Renewable Energy Credits.


  • Amends the Public Utility Regulatory Policies Act of 1978 by allowing net metering for renewable energy, and granting tax credits for production of energy from renewable resources and production of energy efficient buildings.

H.R. 2363

Public Utility Holding Company Act of 1999

Introduced by Representative W.J. (Billy) Tauzin (R-LA) on June 25, 1999.

  • Repeals the Public Utility Holding Company Act of 1935.


  • Enacts the Public Utility Holding Company Act of 1999 to support the continuing need for limited Federal and State regulation and to supplement the work of State commissions for the continued rate protection of utility customers.

H.R. 2569

Fair Energy Competition Act of 1999

Introduced by Representative Frank Pallone, Jr. (D-NJ) on July 20, 1999.

  • Aims that older and more polluting power generating units internalize pollution costs on par with newer and less polluting generation units.


  • Requires FERC to (1) calculate generation performance standards for nitrogen oxides, carbon dioxide, mercury, sulfate fine particulate matter, and any other significant air pollutant released in significant quantities by electric generating units from covered generating units, (2) set forth schedules of statutory tonnage caps for electric generation emissions of nitrogen oxides, carbon dioxide, mercury, and sulfate fine particulate matter, and (3) promulgate, by rule, a national limit on total annual emissions of any other pollutant from electric generating units.


  • Prescribes rules for allocation and trading of allowances  and sets penalties for excess emissions.


  • Mandates that, during periods when National Ambient Air Quality Standards for ozone are exceeded, certain generating units shall be required to "adjust (their) reported actual emissions."


  • Amends the Federal Power Act to require the Commission to provide estimates of electricity generation from covered electric generation units with projections of demand growth for regions and time periods specified in the legislation.


  • Directs the Secretary of Energy to establish a National Electric System Public Benefits Board authorized to collect wires charges to fund public purpose programs including renewable sources, universal/affordable electric service, energy conservation and efficiency programs, research and development programs, and assistance to low-income families.


  • Creates a renewable energy portfolio (to become effective upon the enactment of proposed legislation) that mandates renewable electricity generation to increase from 2.5 percent in 2000 to 7.5 percent in 2010. Authorizes FERC to sell renewable energy credits (that equal the number of megawatthours of electricity from renewables) and to utilize proceeds to fund research and development of renewables and cleaner burning fuels.


  • Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to net metering to producers of renewable electricity and sets guidelines for interconnection to the grid. Also, stipulates disclosure requirements of emissions and generation data with respect to sales of electricity to consumers.


  • Eliminates obligatory power purchase contracts mandated in PURPA on the date of enactment of proposed legislation without invalidating the sanctity of existing contracts.


  • Sets forth terms and conditions to protect consumers (including privacy and non-discriminatory measures) and sets penalties for violations.

H.R. 2602

National Electricity Interstate Transmission Reliability Act

Introduced by Representative Albert Wynn (D-MD) on July 22, 1999.

  • Amends the Federal Power Act to accord FERC jurisdiction over an electric reliability organization (ERO), affiliated regional reliability entities, system operators, and users of the bulk-power system for enforcing compliance with respect to transmission reliability standards.


  • Prescribes procedures that enable FERC to approve reliability standards (subject to the requirement that the standards are nondiscriminatory and in the public interest) for the bulk-power system and to approve an entity's application to function as an ERO contingent on its capability to meet criteria listed in the proposed legislation.


  • Authorizes FERC to take disciplinary action against those violating organizational reliability standards.

H.R. 2645

Electricity Consumer, Worker, and Environmental Protection Act of 1998

Introduced by Representative Dennis Kucinich (D-OH) on July 29, 1999.

  • Prescribes standards for electricity services at the State and Federal levels.


  • Provides protections for electric utility workers whose companies are undergoing transfer of ownership as a result of restructuring.


  • Ensures consumers' right to privacy with respect to billing, payments, usage, and dispute resolution.


  • Mandates that each State create a not-for-profit membership corporation to represent and promote the interests of States' residential electricity consumers.


  • Requires each provider of distribution services and supplies to submit monthly reports to monitor performance and reliability to help protect consumers.


  • Establishes within the Federal Energy Regulatory Commission an office of the Consumer Council to represent energy consumers.


  • Prohibits State or Federal authorities from imposing a stranded cost recovery burden on existing consumers.


  • Sets limits with respect to affiliate ownership on State-regulated investor-owned utilities.


  • Directs that utilities set aside adequate financial resources to meet the costs of nuclear decommissioning and waste disposal activities.


  • Reinforces FERC's authority to review electric utility mergers.


  • Requires the Environmental Protection Agency to promulgate regulations establishing nationwide pollution standards together with pollutant mon-itoring procedures.


  • Establishes a National Electric Public Benefit Board to provide funds (gathered through the imposition of a wires charge) to States for low-income assistance programs.


  • Establishes renewable energy portfolio standards for electricity generation to reach 8 percent in the year 2010 (increasing by 1 percent annually thereafter) by requiring the Secretary of Energy to implement the standards in accordance with the provisions of the proposed legislation.


  • Amends the Public Utility Regulatory Policies Act of 1978 to provide net-metering and interconnection facilities for renewable energy, where necessary.


  • Sets deadlines for States to comply with the requirements of this Act subsequent to their dereg-ulating retail electricity sales.


  • Directs States not to permit customer classes to be charged rates for transmission and distribution in excess of their proportional responsibility for providing these services.


  • Requires that utilities transfer their transmission and distribution assets to regulated counterparts/affiliates after deregulation of electricity sales at the retail level. Also, provides detailed guidelines to prevent affiliate abuse and cross-subsidization.


  • Limits utilities' ownership of power plants to prevent exercise of market power in electricity generation.


  • Sets forth post-deregulation requirements for compliance in areas such as the provision of basic services, aggregation of customers, worker protection, and rules for electricity suppliers and distribution companies.


  • Prohibits unfair business practices and stipulates norms to protect the consumers in billing, metering, and in securing credit. Remedies for violation are also provided.

H.R. 2756

Fair Competition in Tax-Exempt Financing Act of 1999

Introduced by Representative Ralph Hall (D-TX) on August 5, 1999.

  • Amends the Internal Revenue Code of 1986 by eliminating the issuance of tax-exempt bonds to finance public projects to prevent governmental entities from using tax-exempt financing to engage in unfair competition against private sector facilities.

H.R. 2786

Interstate Transmission Act

Introduced by Representative Thomas Sawyer (D-OH) on August 5, 1999.

  • Expands the definition of interstate commerce in electricity to include unbundled transmission of electricity sold at the retail level under FERC's jurisdiction (in addition to transmission at the wholesale level) and directs FERC to determine which facilities used in interstate commerce will be subject to FERC's jurisdiction and which facilities will be subject to the State's jurisdiction.


  • Authorizes FERC to permit a transmitting utility to recover all costs incurred in connection with the transmission and associated services including the costs of expansion of transmission networks.


  • Directs FERC to establish just and non-discriminatory rates that promote efficient transmission and network expansion to avoid cost shifting among customer classes.


  • Directs FERC to promote and approve the voluntary formation of regional transmission organizations.


  • Entrusts FERC with the responsibility to ensure that transmitting utilities and their customers comply with reliability standards adopted by electric reliability organizations.

H.R. 2944

Electricity Competition and Reliability Act

Introduced by Representative Joseph Barton (R-TX) on September 24, 1999.

  • Gives priority to State laws that are passed up to 3 years after enactment of proposed legislation that address concerns proffered by proposed legislation.


  • Amends the Federal Power Act (FPA) to clarify States' authority to require retail competition and to clarify State and Federal jurisdiction. Gives States the authority to impose fees to fund public purpose programs.


  • Amends the FPA to require open access for all transmitting utilities and to provide transmission service at nondiscriminatory prices. Grants FERC authority over the transmission systems at the State, municipal and rural cooperative level, and allows FERC to review transmission rates.


  • Grants FERC the power to determine which transmission facilities compose the bulk power system (and fall under FERC's jurisdiction) and which are exempt from FERC regulations.


  • Allows FERC to recover wholesale stranded costs where necessary.


  • Amends the FPA to permit FERC to order domestic transmission service to be used for a foreign country.


  • Encourages the formation of RTOs. Provides standards that RTOs must meet and authorizes FERC to approve RTOs. Allows Federal transmitting utilities to participate in RTOs with Congressional consent. Protects RTOs formed prior to enactment of legislation from mandatory modifications directed by FERC.


  • Amends the FPA to grant Congressional consent to regional transmission siting to ameliorate problems encountered by States in planning for future transmission. Authorizes FERC to review compacts to protect the public's interest.


  • Authorizes FERC to order a transmitting utility to expand its transmission facilities (if it would not unreasonably harm the services provided by the utility), but retains State and local authority over transmission siting.


  • Amends the FPA by allowing transmission utilities to recover costs incurred to encourage additional investment in transmission. Directs FERC to approve transmission rates that are high enough to ensure the expansion of transmission networks.


  • Directs FERC to encourage transmission pricing policies that encourage RTO formation, reduce pancaking of rates, minimize cost shifting among customer classes, encourage reliability of the transmission system, and encourage investment in the transmission system. Authorizes FERC to approve transmission rates and requires FERC to submit a report to Congress on these issues.


  • Amends the FPA to allow FERC to impose civil penalties for non-compliance with FPA regulations. Permits Federal agencies to file complaints with FERC and seek rehearing of FERC orders.


  • Amends the FPA to allow FERC jurisdiction over an ERO, affiliated regional reliability entities, and bulk power system users and operators to ensure reliability. Calls for FERC review of ERO standards and provides guidelines for the ERO's operation.


  • Provides consumer protection measures that address information disclosure issues, consumer privacy practices, unfair trade practices, and express the consensus that electric services should be universal and affordable.


  • Expands FERC merger review authority to include all electric utilities and transmitting utilities. Eliminates antitrust review by the Nuclear Regulatory Commission for production facilities.


  • Repeals the Public Utility Holding Company Act of 1935. Allows FERC and the State access to records of holding and associate companies to identify costs and to protect utility consumers' rates.


  • Prospectively repeals the Public Utility Regulatory Policies Act of 1978 and allows for cost recovery of purchases made prior to enactment of proposed legislation.


  • Allows retail customers to designate an entity to aggregate purchases of electric energy.


  • Amends the FPA to require local distribution companies to interconnect distributed generation facilities with the local distribution facilities. Grants FERC the ability to order interconnection and establish safety standards.


  • Prohibits TVA from selling electric power at the retail level with certain exceptions. Allows TVA to only sell excess electric power and limits TVA's contract offerings to new customers. Places TVA under the same standards for wholesale sales in interstate commerce as public utilities. Authorizes TVA to build or acquire additional generation facilities, if needed, and directs TVA to renegotiate existing all-requirements power contracts. Allows stranded cost recovery by TVA.


  • Provides that FERC determine transmission rates, terms, and conditions to assure BPA adequately recovers costs, protects customers from cost shifting, and provides transmission access.


  • Grants FERC statutory authority to approve and modify Power Marketing Administration (PMA) wholesale rates to guarantee full cost recovery. Applies provisions of the FPA to the transmission of electric energy by PMAs, and subjects PMAs to antitrust laws


  • Reauthorizes and expands the Renewable Energy Production Incentive program established by the Energy Policy Act of 1992. Requires retail electric suppliers to provide net metering services. Maintains States' authority to set Renewable Energy Portfolio standards.


  • Directs the Department of Energy to present a report to Congress on interstate commerce in electric energy and identify regulatory and statutory barriers. Directs FERC to study State regulation of transmission sales and report the results to Congress.

H.R. 2947

Home Energy Generation Act

Introduced by Representative Jay Inslee (D-WA) on September 24, 1999.

  • Amends the Federal Power Act to allow for net metering. Requires retail electric suppliers to make electric energy meters available (if necessary) to consumers who have installed an energy generating unit capable of net metering.


  • Protects against discrepancies in rates and contract terms between net metering customers and customers who do not participate in net metering.
  • Attributes energy generated through net metering that is entitled to receive credits under a Federal minimum energy portfolio to the retail electric supplier and allows the retail supplier to count these credits towards requirements for renewable resources.


  • Prescribes guidelines and procedures for the calculation of net metering and for the purposes of monitoring, billing, and providing consumer protection.


  • Places limits on the amount of allowable net metering that a local distribution company retail electric supplier is required to provide.


  • Calls for open public documentation of total generating capacity, type of unit, and energy source(s) of consumer-owned generating units.


  • Provides consumer protection measures and sets performance and safety standards for use in net-metering and interconnection to the electrical grid.

106th Congress Senate Bills

S. 161

Power Marketing Administration Reform Act of 1999

Introduced by Senator Daniel Moynihan (D-NY) on January 19, 1999.

  • Directs the Secretary of Energy to develop and implement cost accounting procedures to ensure that the Federal Power Marketing Administrations (FPMAs) and TVA use the same accounting principles and requirements that FERC applies to the electric operations of public electric utilities.


  • Mandates that the FPMAs and TVA implement rate-adjusting procedures to allow for full cost recovery of power they sell while transitioning to market-based rates set by an open market.


  • Requires FPMAs and TVA to develop and submit to FERC, once every 5 years, proposed rates that ensure recovery of all costs of generation and marketing of power (including fish and wildlife related costs) for approval and/or modification.


  • Empowers the Secretary of Energy to establish procedures enabling FPMAs and the TVA to implement market-based pricing 2 years after the enactment of legislation using bid and auction procedures.
  • Prescribes specifics regarding use of revenue col-lected through market-based pricing including, among others, environmental mitigation and restoration, renewable resource development, and utilization of potential surpluses to reduce the budgetary deficit.


  • Precludes an FPMA or TVA from entering into or renewing any power marketing contract for a term exceeding 5 years from the date of enactment of proposed legislation.


  • Directs that FPMAs and the TVA provide transmission service on an open access basis at just and reasonable rates approved by FERC.

S. 282

Transition to Competition in the Electric Industry Act

Jointly introduced by Senators Connie Mack (R-FL) and Bob Graham (D-FL) on January 21, 1999.

  • Prospectively repeals mandatory power purchase requirements (from cogenerators and small power producers) by the electric utilities as required by Section 210 of the Public Utility Regulatory Policies Act of 1978.


  • Ensures recovery of power purchase contract costs incurred by electric utilities prior to the enactment of proposed legislation.

S. 313

Public Utility Holding Company Act of 1999

Introduced by Senator Richard Shelby (R-AL) on January 27, 1999.

  • Repeals the Public Utility Holding Company Act (PURPA) of 1935.


  • Ensures rate protection of utility customers by empowering State and Federal regulatory authorities with tools which permit access to the books and records of holding companies for the purpose of jurisdictional rate-setting activities.


  • Grants the Federal Energy Regulatory Commission additional enforcement authority under the Federal Power Act to permit implementation of provisions of proposed legislation.

S. 386

Bond Fairness and Protection Act of 1999

Introduced by Senator Slade Gorton (R-WA) on February 6, 1999.

  • Amends the Internal Revenue Code by eliminating restrictions placed on public utilities which prevent the reciprocal provision of open access transmission and ancillary services required by FERC Order 888.


  • Grants public power utilities the option of grand-fathering outstanding tax-exempt debt subject to abrogating issuing tax-exempt bonds in the future to finance new facilities. Alternatively, they may continue to issue tax-exempt bonds subject to current private use limitations in the tax code.

S. 516

Electric Utility Restructuring Empowerment and Competitiveness Act of 1999

Introduced by Senator Craig Thomas (R-WY) on March 3, 1999.

  • Empowers States to regulate intrastate retail electric supply or distribution service, establish and enforce reliability standards, determine just and reasonable fees where appropriate, and to enforce open transmission and provision of universal service.


  • Grants FERC jurisdiction over wholesale electricity transmission services, but removes sales of wholesale electricity from the scope of FERC regulation.


  • Amends PURPA to exempt electric utilities from obligatory contracts with cogenerating facilities or small power producers.


  • Repeals PUHCA.


  • Allows FERC and the States access to and disclosure of holding company management and affiliate rate recovery records. Authorizes appropriations and calls on FERC to promulgate final rules of exemption from PUHCA.

S. 1047

Comprehensive Electricity Competition Act

Introduced by Senator Frank Murkowski (R-AK) on May 13, 1999.

  • Amends PURPA to require each distribution utility to permit all of its retail customers to purchase power from the supplier of their choice by January 1, 2003, but provides a flexible mandate for States to require open access to the distribution facilities of regulated and non-regulated electric utilities. Allows State-regulated and non-regulatedutilities to "opt out" of retail competition if, after a hearing before the State regulatory authority, it is determined that retail competition will have a negative impact on certain customer classes.


  • Allows States and non-regulated utilities to determine the amount of recoverable stranded costs. Grants FERC authority to establish stranded cost recovery in the absence of State authority.


  • Amends PURPA to permit a State that has chosen to implement retail competition to prohibit a distribution utility that is not under the ratemaking authority of the State and that has not elected to institute retail competition from selling electricity to the consumers of the State that has chosen retail competition. Grants non-regulated utilities similar requirements of reciprocity.


  • Allows electricity customers and entities acting on their behalf to acquire retail electric energy on an aggregate basis if they are served by one or more distribution utilities for which a notice of retail competition has been filed.


  • Requires States electing retail competition to establish terms and conditions to protect consumers, including rates that are just and reasonable, measures to ensure privacy of consumer information and that prohibit discriminatory practices by electric utilities. Allows States to impose non-bypassable fees to fund such programs. Authorizes the creation of a publicly accessible database that will provide consumers information on electric utilities that participate in retail competition.


  • Clarifies State and Federal authority over retail transmission services. Expands FERC's jurisdiction to include authority over unbundled retail transmission and municipal and publicly owned utilities and cooperatives. Reinforces FERC's authority to require public utilities to provide open access transmission services and permit recovery of stranded costs.


  • Grants FERC authority to oversee creation of IRSOs and to compel utilities to turn over control of their transmission facilities to such organizations.


  • Creates a Public Benefits Fund for low-income assistance, energy efficiency programs, consumer education, and development of emerging technologies. Stipulates funding mechanisms and sets forth guidelines for operation.


  • Creates a renewable portfolio system mandating that sellers use, as a generation source, a percentage of non-hydro electric renewable technology. Sets forth requirements of sale and purchase of renewable energy credits and stipulates use of revenue from such sales.


  • Amends PURPA by allowing net metering for renewable energy, and granting tax credits for production of energy from renewable resources and production of energy efficient buildings.


  • Eliminates obligatory power purchase contracts mandated in the Public Utility Holding Company Act of 1935 (PUHCA) on the date of enactment of proposed legislation.


  • Amends PURPA to require a distribution utility to allow a heat and power or a distributed power facility to interconnect with it if the facility is located within the distribution utility's service territory and complies with rules issued by the Secretary of Energy and related safety and power quality standards.


  • Authorizes the provision of grant money for assistance purposes to tribal Indians, Southeast Alaska, and rural and remote communities.


  • Repeals PUHCA 18 months after enactment of proposed legislation. Grants FERC and States access to utilities' books and records.


  • Authorizes FERC, upon petition by a State, to require generators to submit a plan mitigating market power that FERC can accept or modify. Clarifies FERC merger review over generation-only companies and holding companies.


  • Allows FERC to approve and oversee an ERO to prescribe and enforce mandatory reliability standards.


  • Clarifies the authority of the Environmental Protection Agency to require a nitrogen oxide (NOx) allowance cap and trading program in all States in which a NOx emission source is located.


  • Places TVA transmission under FERC jurisdiction. Subjects power wheeled through TVA to open access requirements and allows wholesale electric power sales by TVA outside of their traditional service area. Calls for the renegotiation of long-term contracts and authorizes FERC to intervene if conflict arises. Authorizes TVA to join an Independent System Operator.


  • Authorizes FERC to determine transmission rates for the BPA, Western Area Power Administration (WAPA), and the Southwestern Power Administration (SWPA) and allows these Federal Power Administrations to impose a surcharge on sales to recover costs of environmental programs and to join IRSOs.


  • Eliminates antitrust review by the Nuclear Regulatory Commission and amends the Internal Revenue Code relating to deductions to a qualified nuclear decommissioning fund.

S. 1048

Comprehensive Electricity Competition Tax Act

Introduced by Senator Frank Murkowski (R-AK) on May 13, 1999.

  • Amends the Internal Revenue Code with respect to tax-exempt private activity bonds to declare that the determination whether any electric output facility bond issued before enactment of this Act (pre-effective date electric output facility bond) is a private activity bond shall be made without regard to any specified permissible competitive action taken by the issuer. Requires such a bond not to be a private activity bond or industrial development bond as of the date of enactment of this Act. Makes this Act inapplicable to any qualified refunding bond meeting certain criteria which is issued to refund a pre-effective date electric output facility bond if the net proceeds of the refunding bond are used within 90 days of issuance to redeem the refunded bond.


  • Qualifies for tax exemption private activity bonds for electric output facilities issued after enactment of this Act, excluding any part of an issue for distribution property that operates at 69 kilovolts or less.


  • Modifies special rules for nuclear decommissioning costs to eliminate cost-of-service as the maximum which a taxpayer may pay into a Nuclear Decommissioning Fund.


  • Includes any distributed power property within 15-year depreciation property.


  • Establishes an 8-percent investment credit for combined heat and power (CHP) systems property placed in service in calendar years 2000 through 2002. Precludes any carryback of the energy credit prior to the effective date of this Act, except for solar and geothermal energy property.

S. 1273

Federal Power Act Amendments of 1999

Introduced by Senator Jeffrey Bingaman (D-NM) on June 24, 1999.

  • Expands the jurisdiction of FERC to order retail wheeling to facilitate transition to competition in power generation.


  • Preserves authority of States (and of their regulatory commissions) to require that jurisdictional utilities provide unbundled local distribution service on a nondiscriminatory basis to customers within the State.


  • Sustains States' authority to impose charges on retail electricity distribution and power generation.


  • Directs FERC to establish and enforce reliability standards for transmission purposes and grants FERC the authority to set up the required infrastructure.


  • Empowers FERC to order a transmitting utility to enlarge, extend, or improve its transmission facilities.


  • Authorizes FERC to order the formation of regional transmission systems and regional independent system operators to ensure nondiscriminatory transmission availability within a region by securing the participation of all transmitting utilities within regions so formed.


  • Protects existing wholesale power purchase contracts and preempts any State action that would bar recovery of associated costs by electric utilities.

S. 1284

Electric Consumer Choice Act

Introduced by Senator Don Nickles (R-OK) on June 24, 1999.

  • Amends the Federal Power Act to ensure that no State may establish, maintain, or enforce on behalf of any electric utility an exclusive right to sell electric energy or otherwise unduly discriminate against any consumer who seeks to purchase electric energy in interstate commerce from any supplier.


  • Stipulates that no electricity suppliers shall be denied access to transmission and local distri-bution facilities or be precluded from participating in retail sales on grounds that such denial may be permissible under existing State laws.


  • Authorizes the State to prohibit retail electric sales by an electric utility or its affiliates if the utility or affiliates fail to comply with State requirements of reciprocity.


  • Repeals the Public Utility Holding Company Act of 1935 from the date of enactment of proposed legislation.


  • Prospectively repeals mandatory power purchase provisions required by the Public Utility Regula-tory Policies Act of 1978.


  • Recognizes the authority of a State to regulate retail sales and local distribution of electric energy.


S. 1369

Clean Energy Act of 1999

Introduced by Senator James Jeffords (R-VT) on July 14, 1999.

  • Directs EPA to promulgate final regulations that establish a schedule of limits on the quantity of each pollutant that all covered generation facilities, (i.e., all non-nuclear facilities with a nameplate capacity of 15 megawatts or greater that use a combustion device to generate power) in the aggregate, shall be permitted to emit in each calendar year beginning in 2002.


  • Sets maximum limits for nationwide emissions of carbon dioxide, mercury, nitrogen oxide, and sulfur dioxide for the calendar year 2005 and each year thereafter.


  • Requires that EPA perform an annual determination of generation performance standards for carbon dioxide, mercury, nitrogen oxide, and sulfur dioxide emissions per megawatthour of electric production by covered generation facilities.


  • Establishes guidelines for earning emission credits for covered generation facilities and prescribes penalties for noncompliance with the emission credit system.


  • Prohibits a generating plant from emitting specified pollutants if the EPA determines, upon review, that an emissions rate of specified pollutants in excess of the generation performance standard can be reasonably anticipated to cause or contribute to significant adverse local impacts. Establishes civil penalties for noncompliance.


  • Directs the Secretary of Energy to establish a National Electric System Public Benefits Board to fund States for supporting renewable energy sources, universal electric service, energy conservation, and other public purposes. Prescribes funding for the Board by establishing a nonbypassable wires charge of up to 2 mills per kilowatthour.


  • Establishes Renewable Energy Portfolio Standards and prescribes minimum requirements for electricity generation from renewable sources to gradually increase from 2.5 percent in 2000 to 20 percent in 2020 (as a share of total electric sales).


  • Requires FERC to establish standards and procedures for issuing renewable energy credits to facilities generating electricity from renewable sources.


  • Amends PURPA to repeal its mandatory power purchase provisions, but retains the validity of contracts entered under such provisions prior to the enactment of proposed legislation.


  • Requires electric companies to allow a retail electric customer to interconnect and employ a net metering system. Sets procedures and guidelines for net metering, and sets safety and performance standards.


  • Directs the Secretary of Energy to establish a system of disclosure that enables retail consumers to knowledgeably compare retail electric services offerings, including comparisons based on generation source portfolios, emissions data, and price terms.

S. 1949

Clean Power Plant and Modernization Act of 1999

Introduced by Senator Patrick Leahy (D-VT) on November 17, 1999.

  • Sets combustion heat rate efficiency levels for operational and future fossil fuel-fired generating plants, and requires each generating unit to obtain a permit.


  • Directs the Department of Energy (DOE) and EPA to promulgate methods of measuring compliance levels. Allows EPA to grant waivers for heat rate efficiency standards.


  • Requires all fossil fuel-fired generating units to comply with the air emissions standards put forth in the Clean Air Act not later than 10 years after the date of enactment of proposed legislation. Sets emission rates for certain particulates and requires each generating unit to obtain a permit within the same timeframe. Requires the DOE and EPA to promulgate methods for determining compliance.


  • Directs the Administrator of EPA to promulgate fuel sampling and monitoring techniques, reporting requirements, and disposal procedures for certain pollutants.


  • Amends the Internal Revenue Code of 1986 by (1) extending Renewable Energy Production Credits, (2) imposing a tax on fossil fuel-fired generating units, (3) reviewing and adjusting tax rates on a biannual basis, and (4) creating a Clean Air Trust Fund.


  • Provides grants to publicly owned generating units that make capital expenditures for compliance purposes.


  • Grants monies to fund research and development programs focused on generating electric power from renewable resources, clean coal technologies, gas turbine technologies, and combined heat and power technologies.


  • Requires DOE, the Federal Energy Regulatory Commission, and the EPA to submit a report to Congress within 2 years of enactment of proposed legislation to evaluate the implementation of proposed legislation.


  • Provides dislocation and worker adjustment funds for coal industry workers who are terminated from employment and communities that are adversely affected due to downsizing of the coal industry.


  • Appropriates money for the development and implementation of carbon sequestration strategies.

S. 2071

Electric Reliability 2000 Act

Introduced by Senator Slade Gorton (R-WA) on February 10, 2000.

  • Provides that FERC shall have jurisdiction over the electric reliability organization, all affiliated regional reliability entities, all system operators, and all bulk power system users.


  • Allows any person, including the North American Electric Reliability Council and its member Regional Reliability Councils, to submit to FERC, before designation of an electric reliability organization, any reliability standard, guidance, practice, or amendment to a reliability standard, guidance, or practice that the person proposes to be made mandatory and enforceable.
  • Directs FERC to (1) propose regulations specifying procedures and requirements for an entity to apply for designation as the electric reliability organization not later than 90 days after the date of enactment, (2) provide notice and opportunity for comment on the proposed regulations, and (3) promulgate final regulations not later than 180 days after the date of enactment.


  • Mandates that the electric reliability organization submit to FERC (1) proposals for any new or modified organization standards, and (2) any proposed change in a procedure, governance, or funding provision relating to delegated functions.


  • Requires the electric reliability organization, at the request of an entity, to enter into an agreement with the entity for the delegation of authority to implement and enforce compliance with organization standards in a specified geographic area if the electric reliability organization finds that the entity satisfies certain requirements and the delegation would promote the effective and efficient implementation and administration of bulk power system reliability.


  • Requires each system operator to be a member of the electric reliability organization and 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 transmission facility.


  • Allows the electric reliability organization to impose a penalty, limitation on activities, functions, or operations, or other disciplinary action against a bulk-power system user if the electric reliability organization, after notice and an opportunity for interested  parties  to be heard, issues a finding in writing that the bulk power system user has violated an organization standard.


  • Directs the electric reliability organization to conduct periodic assessments of the reliability and adequacy of the interconnected bulk power system and report annually to the Secretary of Energy and the Commission its findings and recommendations for monitoring or improving system reliability and adequacy.


  • Prescribes all appropriate steps that the electric reliability organization shall take to gain recognition in Canada and Mexico.

S. 2098

Electric Power Market Competition and Reliability Act

Introduced by Senator Frank Murkowski (R-AK) on February 24, 2000.

Title I: Amendments to the Federal Power Act

  • Amends the Federal Power Act to (1) place within the ambit of Federal regulation unbundled interstate transmission of electric energy sold at retail, and (2) place within the jurisdiction of the State within which the energy is consumed the bundled retail sale of electric energy, unbundled local distribution service, and unbundled retail sale of electric energy and attendant facilities.

Title II: Repeal of PURPA Mandatory Purchase Requirement

  • Directs that, with respect to new contracts, no electric utility shall be required to enter into a new contract or obligation to purchase or sell electricity or capacity under the Public Utility Regulatory Policies Act of 1978.


  • Preserves existing contract rights and remedies under such Act.

Title III: Electric Reliability

  • 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 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, before establishment of the Electric Reliability Organization, any person (including the North American Electric Reliability Council and its member Regional Reliability Councils) shall file a proposed reliability standard, guidance, or practice which, subject to FERC approval, shall be mandatory and enforceable.

Title IV: Repeal of the Public Utility Holding Company Act of 1935 and Enactment of the Public Utility Holding Company Act of 1999

  • Repeals the Public Utility Holding Company Act of 1935 effective 1 year after enactment of this title.


  • Prescribes procedural guidelines for (1) FERC access to records of a public utility or natural gas holding company, and (2) State access to records of a public utility in a holding company system.


  • Instructs FERC to promulgate a final rule to exempt for such Federal access requirements any holding company with respect to one or more (1) qualifying facilities under PURPA, (2) exempt wholesale generators, or (3) foreign utility companies.


  • 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; grants FERC certain FPA enforcement powers; and 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.

Title V: Nuclear Decommissioning

  • Permits a nuclear power facility licensee to petition the Nuclear Regulatory Commission for a deter- mination of whether (1) adequate amounts are deposited in its nuclear decommissioning trust fund, and (2) future funding for any nuclear power plant is assured for any nuclear power plant owned in whole or in part by such licensee.