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106TH CONGRESS

1ST SESSION H. R. 971

To amend the Public Utility Regulatory Policies Act of 1978 to protect

the Nation’s electricity ratepayers by ensuring that rates charged by

qualifying small power producers and qualifying cogenerators do not

exceed the incremental cost to the purchasing utility of alternative electric

energy at the time of delivery, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 3, 1999

Mr. WALSH (for himself, Mr. HOUGHTON, Mr. HINCHEY, Mr. SWEENEY, Mr.

TOWNS, and Mr. BOEHLERT) introduced the following bill; which was referred to the Committee on Commerce

A BILL

To amend the Public Utility Regulatory Policies Act of 1978

to protect the Nation’s electricity ratepayers by ensuring

that rates charged by qualifying small power producers

and qualifying cogenerators do not exceed the incremental cost to the purchasing utility of alternative electric

energy at the time of delivery, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Electric Power Con5 sumer Rate Relief Act of 1999’’.
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1 SEC. 2. FINDINGS.

2 Congress finds that—

3 (1) certain courts have found that States are

4 preempted under the Public Utility Regulatory Poli5 cies Act of 1978 from engaging in certain ratepayer

6 protection activities critical to ensuring reasonable

7 rates for in-State ratepayers;

8 (2) those courts have found that, although

9 States have the authority initially to establish rates

10 charged by qualifying small power producers and

11 qualifying cogenerators to local electric utilities, that

12 such States thereafter are preempted by that Act

13 from ensuring over time that rates—

14 (A) are just and reasonable to the retail

15 electric consumers of purchasing electric utili16 ties and are in the public interest; and

17 (B) do not exceed the incremental cost to

18 such purchasing electric utilities of alternative

19 electric energy at the time of delivery;

20 (3) other courts have found that States are pre21 empted from monitoring effectively the operating

22 and efficiency performance of in-State cogeneration

23 and small power production facilities for the purpose

24 of determining whether such facilities meet Federal

25 Energy Regulatory Commission standards for quali26 fying cogenerators; and
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1 (4) that Act should be amended to clarify the

2 intent of Congress that States have the authority—

3 (A) to ensure that rates charged by quali4 fying small power producers and qualifying co5 generators to purchasing electric utilities—

6 (i) are just and reasonable to the elec7 tric consumers of such purchasing electric

8 utilities and in the public interest; and

9 (ii) do not exceed the incremental cost

10 to such purchasing electric utilities of al11 ternative electric energy at the time of de12 livery; and

13 (B) to establish effective programs for

14 monitoring the operating and efficiency per15 formance of in-State cogeneration and small

16 power production facilities for the purpose of

17 determining whether such facilities meet Fed18 eral Energy Regulatory Commission standards

19 for qualifying cogenerators.

20 SEC. 3. IMPLEMENTATION OF RULES.

21 Section 210(f)(1) of the Public Utility Regulatory

22 Policies Act of 1978 (16 U.S.C. 824a–3(f)(1)) is amended

23 as follows:

24 (1) By striking ‘‘(1) Beginning’’ and inserting

25 the following:
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1 ‘‘(1) BY STATE REGULATORY AUTHORITIES.—

2 ‘‘(A) IN GENERAL.—Beginning’’.

3 (2) By adding at the end the following:

4 ‘‘(B) REQUIREMENTS.—Notwithstanding

5 any other provision of this section, a State reg6 ulatory authority may ensure that rates charged

7 by qualifying small power producers and quali8 fying cogenerators—

9 ‘‘(i) are just and reasonable to the

10 electric consumers of the purchasing elec11 tric utility and in the public interest; and

12 ‘‘(ii) do not exceed the incremental

13 cost at the time of delivery to the purchas14 ing utility of alternative electric energy and

15 capacity.

16 ‘‘(C) MONITORING.—A State regulatory

17 authority may establish programs for monitor18 ing the operating and efficiency performance of

19 in-State cogeneration and small power produc20 tion facilities for the purpose of determining

21 whether the facilities meet standards estab22 lished by the Commission for qualifying facili23 ties.

24 ‘‘(D) AMENDMENT OF CONTRACT.—A

25 State regulatory authority may require that any
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1 contract entered into before the date of enact2 ment of this paragraph be amended to conform

3 to any requirements imposed under subpara4 graph (B).’’.

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