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103D CONGRESS

2D SESSION H. R. 3790

To protect rural electric borrowers.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 3, 1994

Ms. LONG (for herself, Mr. SKELTON, and Mr. GUNDERSON) introduced the

following bill; which was referred to the Committee on Agriculture

A BILL

To protect rural electric borrowers.

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 ‘‘Rural Consumer Pro5 tection Act of 1994’’.

6 SEC. 2. PROTECTION OF RURAL ELECTRIC BORROWERS.

7 The Rural Electrification Act of 1936 (7 U.S.C. 901

8 et seq.) is amended by inserting after section 16 the fol9 lowing:
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1 ‘‘SEC. 17. PROHIBITION AGAINST CURTAILMENT OR LIMITA2 TION OF SERVICES OF ELECTRIC BORROW3 ERS.

4 ‘‘(a) IN GENERAL.—Except as provided in subsection

5 (b) of this section, section 306(b) of the Consolidated

6 Farm and Rural Development Act shall apply to a bor7 rower of an electric loan made or guaranteed under this

8 Act in the same manner in which such section applies to

9 an association referred to in such section.

10 ‘‘(b) EXCEPTIONS.—

11 ‘‘(1) WAIVER BY THE BORROWER.—A borrower

12 of an electric loan made or guaranteed under this

13 Act may agree to waive part or all of the protection

14 afforded by subsection (a).

15 ‘‘(2) PUBLIC INTEREST.—

16 ‘‘(A) IMPARTIAL FINDING.—A municipality

17 may curtail or limit the ability of a borrower of

18 a loan made or guaranteed under this Act to

19 provide electric service if an independent third

20 party, pursuant to this paragraph, determines

21 that the curtailment or limitation—

22 ‘‘(i) is in the public interest;

23 ‘‘(ii) will benefit consumers residing in

24 the area in which the curtailment or limi25 tation is to be imposed; and
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1 ‘‘(iii) will not adversely impact con2 sumers residing outside the area.

3 ‘‘(B) USE OF INDEPENDENT THIRD

4 PARTY.—If a borrower of a loan made or guar5 anteed under this Act does not agree to a re6 quest of a municipality to curtail or limit the

7 ability of the borrower to provide electric serv8 ice, the municipality may request the Governor

9 of the State to select an independent third

10 party to make the determination described in

11 subparagraph (A).

12 ‘‘(C) SELECTION OF INDEPENDENT THIRD

13 PARTY.—Upon receipt of a request under sub14 paragraph (B), the Governor shall select as the

15 independent third party—

16 ‘‘(i) the public utility commission of

17 the State if the public utility commission is

18 authorized under State law to make the re19 quested determination; or

20 ‘‘(ii) any entity (including the public

21 utility commission of the State) qualified

22 to make the requested determination if the

23 Governor determines that the public utility

24 commission is not authorized under State

25 law to make the requested determination.
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1 ‘‘(D) DETERMINATION OF INDEPENDENT

2 THIRD PARTY IS BINDING.—Any determination

3 made by an independent third party selected in

4 accordance with subparagraph (C) with respect

5 to a request of a municipality to curtail or limit

6 the ability of a borrower to provide electric

7 service shall be binding upon the borrower and

8 the municipality.

9 ‘‘(c) INTERPRETIVE RULE.—Subsection (a) shall not

10 be construed to prevent a municipality from imposing a

11 usual, customary, and nondiscriminatory fee on a bor12 rower of a loan made or guaranteed under this Act.’’.

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