I 

110TH CONGRESS 

2D SESSION H. R. 5547 

To amend the Federal Power Act to ensure that the mission and functions 

of Regional Transmission Organizations and Independent System Operators include keeping energy costs as low as reasonably possible for consumers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 6, 2008 

Mr. ALLEN (for himself, Mr. DELAHUNT, Mr. MCGOVERN, and Mr. 

MICHAUD) introduced the following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To amend the Federal Power Act to ensure that the mission 

and functions of Regional Transmission Organizations 

and Independent System Operators include keeping energy costs as low as reasonably possible for consumers, 

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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Protection 

5 and Cost Accountability Act’’. 

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1 SEC. 2. REQUIREMENTS RELATING TO TRANSMISSION OR2 GANIZATIONS. 

3 (a) DEFINITIONS.—In this Act: 

4 (1) COMMISSION.—The term ‘‘Commission’’ 

5 means the Federal Energy Regulatory Commission. 

6 (2) LOWEST REASONABLE COST.—The term 

7 ‘‘lowest reasonable cost’’ means the lowest total de8 livered cost to consumers consistent with the provi9 sion of reliable service. 

10 (3) TRANSMISSION ORGANIZATION.—The term 

11 ‘‘Transmission Organization’’ has the meaning given 

12 the term in section 3 of the Federal Power Act (16 

13 U.S.C. 796). 

14 (b) RATE AND CHARGES; SCHEDULES; SUSPENSION

15 OF NEW RATES.—Section 205 of the Federal Power Act 

16 (16 U.S.C. 824d) is amended by adding at the end the 

17 following: 

18 ‘‘(g) REQUIREMENTS RELATING TO TRANSMISSION

19 ORGANIZATIONS.— 

20 ‘‘(1) DEFINITION OF LOWEST REASONABLE

21 COST.—In this subsection, the term ‘lowest reason22 able cost’ means the lowest total delivered cost to 

23 consumers consistent with the provision of reliable 

24 service. 

25 ‘‘(2) CONSIDERATION OF TRANSMISSION ORGA26 NIZATION RATES.—With respect to determining 

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1 whether a rate or charge made, demanded, or re2 ceived (including any rule or regulation promulgated 

3 by a Transmission Organization relating to a rate or 

4 charge made, demanded, or received) is consistent 

5 with each requirement described in subsection (a) or 

6 section 206, as applicable, the Commission shall con7 sider whether the rate or charge (including each rule 

8 or regulation relating to the rate or charge) would 

9 enable the Transmission Organization to provide, or 

10 facilitate the provision of, reliable service to con11 sumers at the lowest reasonable cost. 

12 ‘‘(3) CONSIDERATION OF TRANSMISSION ORGA13 NIZATION RATE CHANGES.—In determining whether 

14 any filing by a Transmission Organization to estab15 lish or change a rate or charge made, demanded, or 

16 received (including any rule or regulation promul17 gated by a Transmission Organization relating to a 

18 rate or charge made, demanded, or received) is con19 sistent with each requirement described in sub20 section (a), the Commission shall consider whether 

21 the rate or charge (including each rule or regulation 

22 relating to the rate or charge) would— 

23 ‘‘(A) provide consumer benefits that out24 weigh any anticipated direct or indirect costs to 

25 consumers, as demonstrated by a cost-benefit 

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1 analysis to be submitted by the Transmission 

2 Organization to the Commission; or 

3 ‘‘(B) have only a de minimus impact on 

4 the total delivered costs to consumer. 

5 ‘‘(4) BIENNIAL AUDITS.—The Commission shall 

6 ensure that each Transmission Organization is sub7 ject to biennial, independent audits that— 

8 ‘‘(A) include— 

9 ‘‘(i) an assessment of the performance 

10 of the Transmission Organization; and 

11 ‘‘(ii) recommendations to lower the 

12 costs and improve the performance of the 

13 Transmission Organization; and 

14 ‘‘(B) are made available to the public.’’. 

15 (c) ANNUAL REPORTS.—Not later than 1 year after 

16 the date of enactment of this Act, and annually thereafter, 

17 the Commission shall submit to the appropriate commit18 tees of Congress a report describing each determination 

19 of the Commission with respect to whether each Trans20 mission Organization provides, or facilitates the provision 

21 of, reliable service at the lowest reasonable cost to con22 sumers. 

Æ 

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