A bill to amend the Federal Power Act to clarify the jurisdiction of the Federal Energy Regulatory Commission, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Access to Competitive Power Act of 
2007''.

SEC. 2. ESTABLISHMENT OF EQUAL ACCESS AND TREATMENT WITH RESPECT TO 
              FEDERAL POWER RESOURCES.

    Section 212(i) of the Federal Power Act (16 U.S.C. 824k(i)) is 
amended--
            (1) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (6), respectively;
            (2) by striking the subsection designation and heading and 
        all that follows through the end of paragraph (1) and inserting 
        the following:
    ``(i) Establishment of Equal Access and Treatment With Respect to 
Federal Power Resources.--
            ``(1) Definition of generator.--In this subsection, the 
        term `generator' means--
                    ``(A) the Bonneville Power Administration;
                    ``(B) the Southeastern Power Administration;
                    ``(C) the Western Area Power Administration;
                    ``(D) the Southwestern Power Administration; and
                    ``(E) the Tennessee Valley Authority.
            ``(2) Authority and duties of commission.--
                    ``(A) In general.--Pursuant to sections 210, 211, 
                and 213, the Commission--
                            ``(i) may order the administrator or board 
                        of directors, as applicable, of any generator 
                        to provide transmission service, including by 
                        establishing the terms and conditions of the 
                        service; and
                            ``(ii) shall ensure that--
                                    ``(I) the provisions of otherwise 
                                applicable Federal laws shall continue 
                                in full force and effect and shall 
                                continue to be applicable to the 
                                system;
                                    ``(II) the rates for the 
                                transmission of electric power on the 
                                system of each Federal power marketing 
                                agency--
                                            ``(aa) are administered in 
                                        accordance with applicable 
                                        Federal law, other than 
                                        sections 210, 211, and 213; and
                                            ``(bb) are not unjust, 
                                        unreasonable, or unduly 
                                        discriminatory or preferential, 
                                        as determined by the 
                                        Commission.
                    ``(B) Tennessee valley authority rates.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, the Commission shall 
                        have jurisdiction over the rates, terms, and 
                        conditions of the provision of transmission 
                        service in interstate commerce by the Tennessee 
                        Valley Authority.
                            ``(ii) Tariff.--Notwithstanding any other 
                        provision of law, pursuant to sections 205 and 
                        206, the Board of Directors of the Tennessee 
                        Valley Authority shall have on file with the 
                        Commission an open access transmission tariff 
                        that contains just, reasonable, and not unduly 
                        preferential or discriminatory rates, terms, 
                        and conditions for the provision of 
                        transmission service in interstate commerce by 
                        the Tennessee Valley Authority.'';
            (3) in paragraph (3) (as redesignated by paragraph (1))--
                    (A) by striking ``(3) Notwithstanding'' and 
                inserting the following:
            ``(3) Procedure for determinations.--Notwithstanding'';
                    (B) in the matter preceding subparagraph (A), by 
                inserting ``of a Federal power marketing agency'' after 
                ``service''; and
                    (C) in subparagraph (A)--
                            (i) by striking ``when the Administrator of 
                        the Bonneville Power Administration either'' 
                        and inserting ``if the Administrator of any 
                        Federal power marketing agency''; and
                            (ii) by striking ``on the Federal Columbia 
                        River Transmission System'';
            (4) in paragraph (4) (as redesignated by paragraph (1))--
                    (A) by striking ``(4) Notwithstanding'' and 
                inserting the following:
            ``(4) Judicial review.--Notwithstanding'';
                    (B) by striking ``the Administrator of the 
                Bonneville Power Administration'' and inserting ``the 
                Administrator of a Federal power marketing agency''; 
                and
                    (C) by striking ``United States Court of Appeals'' 
                and all that follows through the end of the paragraph 
                and inserting ``United States court of appeals of 
                jurisdiction of the Federal power marketing agency.'';
            (5) in paragraph (5) (as redesignated by paragraph (1)), by 
        striking ``(5) To the extent the Administrator of the 
        Bonneville Power Administration'' and inserting the following:
            ``(5) Exception.--To the extent that an Administrator of a 
        Federal power marketing agency'';
            (6) in paragraph (6) (as redesignated by paragraph (1))--
                    (A) by striking ``(6) The Commission'' and 
                inserting the following:
            ``(6) Prohibition.--The Commission''; and
                    (B) by striking ``the Administrator of the 
                Bonneville Power Administration'' and inserting ``the 
                Administrator of a Federal power marketing agency''.

SEC. 3. EQUITABILITY WITHIN TERRITORY RESTRICTED ELECTRIC SYSTEMS.

    Section 212(j) of the Federal Power Act (16 U.S.C. 824k(j)) is 
amended--
            (1) by striking ``With respect to'' and inserting the 
        following:
            ``(1) In general.--Except as provided in paragraph (2), 
        with respect to'';
            (2) by striking ``electric utility:'' and all that follows 
        through ``electric utility.'' and inserting ``electric 
        utility.''; and
            (3) by adding at the end the following:
            ``(2) Exception.--Paragraph (1) and subsection (f) shall 
        not apply to any area served at retail by a distributor that--
                    ``(A) on October 24, 1992, served as a distributor 
                for an electric utility described in paragraph (1); and
                    ``(B) before December 31, 2006, provided to the 
                Commission a notice of termination of the power supply 
                contract between the distributor and the electric 
                utility, regardless of whether the notice was later 
                withdrawn or rescinded.
            ``(3) Stranded costs.--An electric utility described in 
        paragraph (1) that provides transmission service pursuant to an 
        order of the Commission or a contract may not recover any 
        stranded cost associated with the provision of transmission 
        services to a distributor.
            ``(4) Rights of distributors.--
                    ``(A) Notice not provided.--A distributor described 
                in paragraph (2) that did not provide a notice 
                described in paragraph (2)(B) by December 31, 2006, 
                may--
                            ``(i) construct, own, and operate any 
                        generation facility, individually or jointly 
                        with another distributor; and
                            ``(ii) receive from any electric utility 
                        described in paragraph (1) partial requirements 
                        services, unless the cumulative quantity of 
                        energy provided by the electric utility exceeds 
                        a ratable limit that is equal to a proxy for 
                        load growth on the electric utility, based on--
                                    ``(I) the total quantity of energy 
                                sold by each affected agency, 
                                corporation, or unit of the electric 
                                utility during calendar year 2006; and
                                    ``(II) a 3-percent compounded 
                                annual growth rate.
                    ``(B) Notice provided.--
                            ``(i) In general.--A distributor described 
                        in paragraph (2) that provided a notice 
                        described in paragraph (2)(B) by December 31, 
                        2006, may--
                                    ``(I) construct, own, and operate 
                                any generation facility, individually 
                                or jointly with another distributor;
                                    ``(II) receive from any electric 
                                utility described in paragraph (1) 
                                partial requirements services;
                                    ``(III) receive from any electric 
                                utility described in paragraph (1) 
                                transmission services that are 
                                sufficient to meet all electric energy 
                                requirements of the distributor, 
                                regardless of whether an applicable 
                                contract, or any portion of such a 
                                contract, has been terminated under 
                                this section; and
                                    ``(IV) not later than 180 days 
                                after the date of enactment of this 
                                paragraph, elect to rescind the notice 
                                of termination of the distributor 
                                without the imposition of a 
                                reintegration fee or any similar fee.
                            ``(ii) Treatment.--On an election by a 
                        distributor under clause (i)(IV), the 
                        distributor shall be entitled to all rights and 
                        benefits of a distributor described in 
                        subparagraph (A).
            ``(5) Right to retain access to services.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Affected distributor.--The term 
                        `affected distributor' means a distributor that 
                        receives any electric service or power from at 
                        least 2 generators.
                            ``(ii) Generator.--The term `generator' 
                        means an entity referred to in any of 
                        subparagraphs (A) through (E) of subsection 
                        (i)(1).
                    ``(B) Retention of services.--An affected 
                distributor may elect to retain any electric service or 
                power provided by a generator, regardless of whether an 
                applicable contract, or any portion of such a contract, 
                has been terminated under this section.
                    ``(C) Effect of notice of termination.--
                            ``(i) In general.--The provision or 
                        execution by an affected distributor of a 
                        notice of termination described in paragraph 
                        (2)(B) with 1 generator shall not affect the 
                        quantity of electric service or power provided 
                        to the affected distributor by another 
                        generator.
                            ``(ii) Price.--The price of electric 
                        services or power provided to an affected 
                        distributor described in clause (i) shall be 
                        equal to the price charged by the applicable 
                        generator for the provision of similar services 
                        or power to a distributor that did not provide 
                        a notice described in paragraph (2)(B).
                    ``(D) Transmission service.--On an election by an 
                affected distributor under subparagraph (B) to retain 
                an electric service or power, the affected distributor 
                shall be entitled to receive from a generator 
                transmission service to 1 or more delivery points of 
                the affected distributor, as determined by the affected 
                distributor, regardless of whether an applicable 
                contract, or any portion of such a contract, has been 
                terminated under this section.''.

SEC. 4. STUDY OF PRIVATIZATION OF TENNESSEE VALLEY AUTHORITY.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the costs, benefits, and other effects of 
privatizing the Tennessee Valley Authority.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
Congress a report that describes the results of the study conducted 
under this section.

SEC. 5. STUDY OF DEBT LEVEL OF TENNESSEE VALLEY AUTHORITY.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the financial structure of, and the amount of debt 
held by, the Tennessee Valley Authority, which (as of February 1, 2007) 
is approximately $25,000,000,000.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
Congress a report that describes the results of the study conducted 
under this section.

Summary: Access to Competitive Power Act of 2007 - Amends the Federal Power Act to authorize the Federal Energy Regulatory Commission (FERC) to order transmission service by the administrator or board of directors of the Bonneville, Southeastern, Western Area, and Southwestern Power Administrations, and the Tennessee Valley Authority (TVA). Grants FERC jurisdiction over the rates, terms, and conditions of TVA's provision of transmission service in interstate commerce. Requires the TVA Board of Directors to file with FERC an open access transmission tariff containing just, reasonable, and not unduly preferential or discriminatory rates, terms, and conditions. Prohibits certain territory-restricted electric utilities from recovering stranded costs associated with the provision of transmission services to a distributor. Authorizes distributors which, by December 31, 2006, gave notice of termination of a power supply contract with a territory-restricted electric utility to negotiate partial requirements services with such utility, as well as receive sufficient transmission services. Allows such distributors also to elect to rescind a termination notice without imposition of a reintegration or similar fee. Authorizes distributors that did not give a termination notice by such date to receive partial requirements services from any such utility, subject to specified requirements. Allows a distributor receiving any electric service or power from at least two generators to elect to retain it regardless of whether an applicable contract, or portion of it, has been terminated. Directs the Comptroller General to study and report to Congress on: (1) the costs, benefits, and other effects of privatizing the TVA. And (2) the TVA's financial structure, as well as the amount of debt it holds.