I

106TH CONGRESS

1ST SESSION H. R. 1138

To prospectively repeal section 210 of the Public Utility Regulatory Policies

Act of 1978.

IN THE HOUSE OF REPRESENTATIVES

MARCH 16, 1999

Mr. STEARNS (for himself, Mr. TOWNS, Mr. HOUGHTON, Mr. ENGLISH, Mr.

MURTHA, Mr. BILBRAY, Mr. PETERSON of Pennsylvania, Mr. BOEHLERT,

Ms. DUNN, Mr. PACKARD, Mr. BOYD, Mr. LEWIS of California, Mr.

MICA, and Mrs. THURMAN) introduced the following bill; which was referred to the Committee on Commerce

A BILL

To prospectively repeal section 210 of the Public Utility

Regulatory Policies Act of 1978.

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 ‘‘Ratepayer Protection

5 Act’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—

8 (1) implementation of section 210 of the Public

9 Utility Regulatory Policies Act of 1978 (16 U.S.C.
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1 824a–3) resulted in many consumers paying exces2 sive rates for electricity;

3 (2) the Energy Policy Act of 1992 gives non4 regulated producers of electricity additional access to

5 the wholesale electric market through transmission

6 access and exemption from the Public Utility Hold7 ing Company Act of 1935; and

8 (3) in light of the competitive wholesale electric

9 marketplace brought about by the Energy Policy Act

10 of 1992, section 210 of the Public Utility Regulatory

11 Policies Act of 1978 need no longer exist.

12 SEC. 3. PROSPECTIVE REPEAL.

13 (a) NEW CONTRACTS.—After the date of enactment

14 of this Act, no electric utility shall be required to enter

15 into a new contract or obligation to purchase or to sell

16 electric energy or capacity pursuant to section 210 of the

17 Public Utility Regulatory Policies Act of 1978.

18 (b) EXISTING RIGHTS AND REMEDIES NOT AF19 FECTED.—Nothing in this section affects the rights or

20 remedies of any party with respect to the purchase or sale

21 of electric energy or capacity from or to a facility deter22 mined to be a qualifying small power production facility

23 or a qualifying cogeneration facility under section 210 of

24 the Public Utility Regulatory Policies Act of 1978 pursu25 ant to any contract or obligation to purchase or to sell
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1 electric energy or capacity in effect on January 6, 1999,

2 including the right to recover the costs of purchasing such

3 electric energy or capacity.

4 (c) INTERPRETATIONS AND ACTIONS TAKEN.—Noth5 ing in this Act may be deemed or construed as implying

6 congressional ratification of any interpretation of, or any

7 action taken pursuant to, the Public Utility Regulatory

8 Policies Act of 1978.

9 SEC. 4. RECOVERY OF COSTS.

10 In order to assure recovery by electric utilities pur11 chasing electric energy or capacity from a qualifying facil12 ity pursuant to any legally enforceable obligation entered

13 into or imposed pursuant to section 210 of the Public Util14 ity Regulatory Policies Act of 1978 prior to the date of

15 enactment of this Act of all costs associated with such pur16 chases, the Commission shall promulgate and enforce such

17 regulations as may be required to assure that no utility

18 shall be required directly or indirectly to absorb the costs

19 associated with such purchases from a qualifying facility.

20 Such regulations shall be treated as a rule enforceable

21 under the Federal Power Act (16 U.S.C. 791a–825r).

22 SEC. 5. DEFINITIONS.

23 For purposes of this Act—

24 (1) the term ‘‘Commission’’ means the Federal

25 Energy Regulatory Commission;
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1 (2) the term ‘‘electric utility’’ means any per2 son, State agency, or Federal agency, which sells

3 electric energy;

4 (3) the term ‘‘qualifying small power production

5 facility’’ has the same meaning as provided in sec6 tion 3(17)(C) of the Federal Power Act;

7 (4) the term ‘‘qualifying cogeneration facility’’

8 has the same meaning as provided in section

9 3(18)(A) of the Federal Power Act; and

10 (5) the term ‘‘qualifying facility’’ means either

11 a small power production facility or a qualifying co12 generation facility.

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