```

[House Report 115-167]
[From the U.S. Government Publishing Office]

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 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.

                    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.

             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

           *       *       *       *       *       *       *
PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE 
COMMERCE

           *       *       *       *       *       *       *

     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, [such facilities or any part 
                thereof] such facilities, or any part 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.
          (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.

           *       *       *       *       *       *       *

                                  [all]
```