113TH CONGRESS 

1ST SESSION H. R. 1038 

AN ACT 

To provide equal treatment for utility special entities using 

utility operations-related swaps, 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, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Public Power Risk 

3 Management Act of 2013’’. 

4 SEC. 2. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES. 

5 Section 1a(49) of the Commodity Exchange Act (7 

6 U.S.C. 1a(49)) is amended by adding at the end the fol7 lowing: 

8 ‘‘(E) CERTAIN TRANSACTIONS WITH A

9 UTILITY SPECIAL ENTITY.— 

10 ‘‘(i) Transactions in utility operations11 related swaps shall be reported pursuant to 

12 section 4r. 

13 ‘‘(ii) In making a determination to ex14 empt pursuant to subparagraph (D), the 

15 Commission shall treat a utility operations16 related swap entered into with a utility 

17 special entity, as defined in section 

18 4s(h)(2)(D), as if it were entered into with 

19 an entity that is not a special entity, as de20 fined in section 4s(h)(2)(C).’’. 

21 SEC. 3. UTILITY SPECIAL ENTITY DEFINED. 

22 Section 4s(h)(2) of the Commodity Exchange Act (7 

23 U.S.C. 6s(h)(2)) is amended by adding at the end the fol24 lowing: 

25 ‘‘(D) UTILITY SPECIAL ENTITY.—For pur26 poses of this Act, the term ‘utility special enti-
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1 ty’ means a special entity, or any instrumen2 tality, department, or corporation of or estab3 lished by a State or political subdivision of a 

4 State, that— 

5 ‘‘(i) owns or operates an electric or 

6 natural gas facility or an electric or nat7 ural gas operation; 

8 ‘‘(ii) supplies natural gas and or elec9 tric energy to another utility special entity; 

10 ‘‘(iii) has public service obligations 

11 under Federal, State, or local law or regu12 lation to deliver electric energy or natural 

13 gas service to customers; or 

14 ‘‘(iv) is a Federal power marketing 

15 agency, as defined in section 3 of the Fed16 eral Power Act.’’. 

17 SEC. 4. UTILITY OPERATIONS-RELATED SWAP. 

18 (a) SWAP FURTHER DEFINED.—Section 

19 1a(47)(A)(iii) of the Commodity Exchange Act (7 U.S.C. 

20 1a(47)(A)(iii)) is amended— 

21 (1) by striking ‘‘and’’ at the end of subclause 

22 (XXI); 

23 (2) by adding ‘‘and’’ at the end of subclause 

24 (XXII); and 

25 (3) by adding at the end the following: 
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1 ‘‘(XXIII) a utility operations-re2 lated swap;’’. 

3 (b) UTILITY OPERATIONS-RELATED SWAP DE4 FINED.—Section 1a of such Act (7 U.S.C. 1a) is amended 

5 by adding at the end the following: 

6 ‘‘(52) UTILITY OPERATIONS-RELATED SWAP.— 

7 The term ‘utility operations-related swap’ means a 

8 swap that— 

9 ‘‘(A) is entered into to hedge or mitigate a 

10 commercial risk; 

11 ‘‘(B) is not a contract, agreement, or 

12 transaction based on, derived on, or ref13 erencing— 

14 ‘‘(i) an interest rate, credit, equity, or 

15 currency asset class; or 

16 ‘‘(ii) a metal, agricultural commodity, 

17 or crude oil or gasoline commodity of any 

18 grade, except as used as fuel for electric 

19 energy generation; and 

20 ‘‘(C) is associated with— 

21 ‘‘(i) the generation, production, pur22 chase, or sale of natural gas or electric en23 ergy, the supply of natural gas or electric 

24 energy to a utility, or the delivery of nat-
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1 ural gas or electric energy service to utility 

2 customers; 

3 ‘‘(ii) all fuel supply for the facilities or 

4 operations of a utility; 

5 ‘‘(iii) compliance with an electric sys6 tem reliability obligation; 

7 ‘‘(iv) compliance with an energy, en8 ergy efficiency, conservation, or renewable 

9 energy or environmental statute, regula10 tion, or government order applicable to a 

11 utility; or 

12 ‘‘(v) any other electric energy or nat13 ural gas swap to which a utility is a 

14 party.’’. 

15 SEC. 5. EFFECTIVE DATE. 

16 The amendments made by this Act take effect as if 

17 enacted on July 21, 2010. 

Passed the House of Representatives June 12, 2013. 

Attest: 

Clerk. 
113TH CONGRESS 

1ST SESSION H. R. 1038 

AN ACT 

To provide equal treatment for utility special entifor other purposes. ties using utility operations-related swaps, and