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.
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