69–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 115–167 

TO AMEND SECTION 203 OF THE FEDERAL POWER ACT 

JUNE 12, 2017.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. WALDEN, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 1109] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 1109) to amend section 203 of the Federal Power Act, 

having considered the same, report favorably thereon without 

amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 1 

Committee Action .................................................................................................... 2 

Committee Votes ...................................................................................................... 2 

Oversight Findings and Recommendations ........................................................... 2 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 2 

Congressional Budget Office Estimate ................................................................... 2 

Federal Mandates Statement ................................................................................. 2 

Statement of General Performance Goals and Objectives .................................... 2 

Duplication of Federal Programs ............................................................................ 3 

Committee Cost Estimate ....................................................................................... 3 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 3 

Disclosure of Directed Rule Makings ..................................................................... 3 

Advisory Committee Statement .............................................................................. 3 

Applicability to Legislative Branch ........................................................................ 3 

Section-by-Section Analysis of the Legislation ...................................................... 4 

Section 1. Clarification of Facility Merger Authorization .................................... 4 

Changes in Existing Law Made by the Bill, as Reported ..................................... 4 

PURPOSE AND SUMMARY

Under current law, public utilities are prohibited from merging 

or consolidating facilities with those of any other person without 

first having secured an order of the Federal Energy Regulatory 

Commission (FERC) authorizing them to do so. H.R. 1109 would 

amend the Federal Power Act to exempt facilities of a value of 

$10,000,000 or less from this prohibition. The bill also directs the 

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FERC to issue a rule requiring certain public utilities seeking to 

merge or consolidate to notify FERC of the transaction within 30 

days of the completion of the merger or consolidation. 

COMMITTEE ACTION

The Committee on Energy and Commerce has not held hearings 

on the legislation. 

On June 7, 2017, the full Committee on Energy and Commerce 

met in open markup session and ordered H.R. 1109, without 

amendment, favorably reported to the House by unanimous consent. 

COMMITTEE VOTES

Clause 3(b) of rule XIII requires the Committee to list the record 

votes on the motion to report legislation and amendments thereto. 

There were no record votes taken in connection with ordering H.R. 

1109 reported. 

OVERSIGHT FINDINGS AND RECOMMENDATIONS

Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of rule 

XIII, the Committee has not held hearings on this legislation. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

Pursuant to clause 3(c)(2) of rule XIII, the Committee finds that 

H.R. 1109 would result in no new or increased budget authority, 

entitlement authority, or tax expenditures or revenues. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII, at the time this report 

was filed, the cost estimate prepared by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974 was not available. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII, the general performance 

goal or objective of this legislation is to exempt public utility mergers and consolidations of facilities valued at $10,000,000 or less 

from first having to secure an order from the FERC authorizing it 

to do so; and to direct the FERC to promulgate a rule requiring a 

public utility to notify the FERC of a merger or consolidation of facilities valued in excess of $1,000,000 and not required to secure an 

order of the Commission within 30 days after the transaction is 

completed. 

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DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3(c)(5) of rule XIII, no provision of H.R. 1109 

is known to be duplicative of another Federal program, including 

any program that was included in a report to Congress pursuant 

to section 21 of Public Law 111–139 or the most recent Catalog of 

Federal Domestic Assistance. 

COMMITTEE COST ESTIMATE

Pursuant to clause 3(d)(1) of rule XIII, the Committee adopts as 

its own the cost estimate prepared by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional 

Budget Act of 1974. At the time this report was filed, the estimate 

was not available. 

EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the Committee 

finds that H.R. 1109 contains no earmarks, limited tax benefits, or 

limited tariff benefits. 

DISCLOSURE OF DIRECTED RULE MAKINGS

Pursuant to section 3(i) of H.Res. 5, the following directed rule 

making is contained in H.R. 1109: 

(7)(A) Not later than 180 days after the date of enactment of this paragraph, the Commission shall promulgate 

a rule requiring any public utility that is seeking to merge 

or consolidate, directly or indirectly, its facilities subject to 

the jurisdiction of the Commission, or any part thereof, 

with those of any other person, to notify the Commission 

of such transaction not later than 30 days after the date 

on which the transaction is consummated if—(i) such facilities, or any part thereof, are of a value in excess of 

$1,000,000; and (ii) such public utility is not required to 

secure an order of the Commission under paragraph (1)(B). 

(B) In establishing any notification requirement under subparagraph (A), the Commission shall, to the maximum extent practicable, minimize the paperwork burden resulting 

from the collection of information. (Section 2. Notification 

for Certain Transactions.) 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

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SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Clarification of facility merger authorization 

Section 1 would amend the Federal Power Act to exempt facilities, or any part thereof, of a value of $10,000,000 or less from the 

Federal Power Act requirement that no public utility shall, without 

first having secured an order of the FERC authorizing it to do so, 

merge or consolidate, directly or indirectly, such facilities or any 

part thereof with those of any other person, by any means whatsoever. 

Section 2. Notification for certain transactions 

Section 2 would direct the FERC to promulgate within 180 days 

of enactment of the Act a rule requiring public utilities seeking to 

merge or consolidate to notify FERC of the transaction within 30 

days after the completion of the merger or consolidation. The notification requirement would only apply if such facilities, or any part 

thereof, are of a value in excess of $1,000,000 and such public utility is not required to secure a pre-merger or pre-consolidation order 

from the Commission. In establishing a notification requirement 

under this section, FERC shall, to the maximum extent practicable, 

minimize the paperwork burden resulting from the collection of information. 

Section 3. Effective date 

Section 3 provides that the amendment made by section 1 shall 

take effect 180 days after the date of enactment of this Act. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

FEDERAL POWER ACT 

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PART II—REGULATION OF ELECTRIC UTILITY COMPANIES 

ENGAGED IN INTERSTATE COMMERCE 

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DISPOSITION OF PROPERTY; CONSOLIDATION; PURCHASE OF

SECURITIES

SEC. 203. (a)(1) No public utility shall, without first having secured an order of the Commission authorizing it to do so— 

(A) sell, lease, or otherwise dispose of the whole of its facilities subject to the jurisdiction of the Commission, or 

any part thereof of a value in excess of $10,000,000; 

(B) merge or consolidate, directly or indirectly, øsuch facilities or any part thereof¿ such facilities, or any part 

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thereof, of a value in excess of $10,000,000 with those of 

any other person, by any means whatsoever; 

(C) purchase, acquire, or take any security with a value in excess of $10,000,000 of any other public utility; or 

(D) purchase, lease, or otherwise acquire an existing 

generation facility— (i) that has a value in excess of $10,000,000; and 

(ii) that is used for interstate wholesale sales and 

over which the Commission has jurisdiction for ratemaking purposes. 

(2) No holding company in a holding company system that 

includes a transmitting utility or an electric utility shall purchase, acquire, or take any security with a value in excess of 

$10,000,000 of, or, by any means whatsoever, directly or indirectly, merge or consolidate with, a transmitting utility, an 

electric utility company, or a holding company in a holding 

company system that includes a transmitting utility, or an 

electric utility company, with a value in excess of $10,000,000 

without first having secured an order of the Commission authorizing it to do so. 

(3) Upon receipt of an application for such approval the Commission shall give reasonable notice in writing to the Governor 

and State commission of each of the States in which the physical property affected, or any part thereof, is situated, and to 

such other persons as it may deem advisable. 

(4) After notice and opportunity for hearing, the Commission 

shall approve the proposed disposition, consolidation, acquisition, or change in control, if it finds that the proposed transaction will be consistent with the public interest, and will not 

result in cross-subsidization of a non-utility associate company 

or the pledge or encumbrance of utility assets for the benefit 

of an associate company, unless the Commission determines 

that the cross-subsidization, pledge, or encumbrance will be 

consistent with the public interest. 

(5) The Commission shall, by rule, adopt procedures for the 

expeditious consideration of applications for the approval of 

dispositions, consolidations, or acquisitions, under this section. 

Such rules shall identify classes of transactions, or specify criteria for transactions, that normally meet the standards established in paragraph (4). The Commission shall provide expedited review for such transactions. The Commission shall grant 

or deny any other application for approval of a transaction not 

later than 180 days after the application is filed. If the Commission does not act within 180 days, such application shall be 

deemed granted unless the Commission finds, based on good 

cause, that further consideration is required to determine 

whether the proposed transaction meets the standards of paragraph (4) and issues an order tolling the time for acting on the 

application for not more than 180 days, at the end of which additional period the Commission shall grant or deny the application. 

(6) For purposes of this subsection, the terms ‘‘associate company’’, ‘‘holding company’’, and ‘‘holding company system’’ have 

the meaning given those terms in the Public Utility Holding 

Company Act of 2005. 

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(7)(A) Not later than 180 days after the date of enactment of 

this paragraph, the Commission shall promulgate a rule requiring any public utility that is seeking to merge or consolidate, directly or indirectly, its facilities subject to the jurisdiction of the 

Commission, or any part thereof, with those of any other person, to notify the Commission of such transaction not later than 

30 days after the date on which the transaction is consummated 

if— 

(i) such facilities, or any part thereof, are of a value in excess of $1,000,000; and 

(ii) such public utility is not required to secure an order 

of the Commission under paragraph (1)(B). 

(B) In establishing any notification requirement under subparagraph (A), the Commission shall, to the maximum extent 

practicable, minimize the paperwork burden resulting from the 

collection of information. 

(b) The Commission may grant any application for an order 

under this section in whole or in part and upon such terms and 

conditions as it finds necessary or appropriate to secure the maintenance of adequate service and the coordination in the public interest of facilities subject to the jurisdiction of the Commission. The 

Commission may from time to time for good cause shown make 

such orders supplemental to any order made under this section as 

it may find necessary or appropriate. 

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