I 

113TH CONGRESS 

2D SESSION H. R. 5722 

To amend the Federal Power Act to require the Federal Energy Regulatory 

Commission to review the decisions of the North American Electric 

Reliability Corporation affecting cost allocation under system support 

resources agreements. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 17, 2014 

Mr. BENISHEK (for himself and Mr. PETERS of Michigan) introduced the 

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

A BILL 

To amend the Federal Power Act to require the Federal 

Energy Regulatory Commission to review the decisions 

of the North American Electric Reliability Corporation 

affecting cost allocation under system support resources 

agreements. 

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 ‘‘Providing Opportuni5 ties to Work for Energy Reliability Act’’ or the ‘‘POWER 

6 Act’’. 


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1 SEC. 2. REVIEW OF DECISIONS OF NORTH AMERICAN ELEC2 TRIC RELIABILITY CORPORATION AFFECT3 ING COST ALLOCATION UNDER SYSTEM SUP4 PORT RESOURCES AGREEMENTS. 

5 Section 205 of the Federal Power Act (16 U.S.C. 

6 824d) is amended by adding at the end the following: 

7 ‘‘(g) REVIEW OF DECISIONS OF NORTH AMERICAN

8 ELECTRIC RELIABILITY CORPORATION AFFECTING COST

9 ALLOCATION UNDER SYSTEM SUPPORT RESOURCES

10 AGREEMENTS.— 

11 ‘‘(1) DEFINITIONS.—In this subsection: 

12 ‘‘(A) SYSTEM SUPPORT RESOURCES

13 AGREEMENT.— 

14 ‘‘(i) IN GENERAL.—The term ‘system 

15 support resources agreement’ means an 

16 agreement between the owner of a system 

17 support resources unit and a transmission 

18 organization that provides for— 

19 ‘‘(I) operation of the system sup20 port resources unit for a period past 

21 the date on which the owner of the 

22 system support resources unit pro23 poses to suspend the operation of, or 

24 retire, the system support resources 

25 unit; 


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1 ‘‘(II) the payments to be made to 

2 the owner of the system support re3 sources unit for the continued oper4 ation; and 

5 ‘‘(III) the manner in which the 

6 costs for the continued operation will 

7 be recovered. 

8 ‘‘(ii) INCLUSIONS.—The term ‘system 

9 support resources agreement’ includes the 

10 associated rate schedule, or any other allo11 cation of costs, for an agreement described 

12 in clause (i). 

13 ‘‘(B) SYSTEM SUPPORT RESOURCES

14 UNIT.—The term ‘system support resources 

15 unit’ means a generating unit that has been 

16 designated by a transmission organization as a 

17 system support resources unit on— 

18 ‘‘(i) an application to the transmission 

19 organization by the owner of the unit to 

20 retire or suspend operation of the unit; and 

21 ‘‘(ii) a determination by the trans22 mission organization that the operation of 

23 the unit is necessary to operate the trans24 mission system consistent with applicable 

25 reliability standards. 


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1 ‘‘(C) TRANSMISSION ORGANIZATION.—The 

2 term ‘transmission organization’ has the mean3 ing given the term in section 215(a). 

4 ‘‘(2) REVIEW BY COMMISSION.— 

5 ‘‘(A) IN GENERAL.—The Commission shall 

6 review any decision by the North American 

7 Electric Reliability Corporation to approve a 

8 new balancing authority that would alter cost 

9 allocations under an existing system support re10 sources agreement. 

11 ‘‘(B) SUSPENSION OF EFFECTIVENESS.— 

12 The new balancing authority described in sub13 paragraph (A) shall not take effect until ap14 proved by the Commission. 

15 ‘‘(3) COST-BENEFIT ANALYSIS.—Prior to 

16 issuing a decision under paragraph (4), the Commis17 sion shall publish a cost-benefit analysis of the pro18 posed decision described in paragraph (2)(A), includ19 ing the likely financial impact of the decision on 

20 ratepayers. 

21 ‘‘(4) DECISION BY COMMISSION.— 

22 ‘‘(A) IN GENERAL.—The Commission 

23 shall— 


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1 ‘‘(i) review a decision of the North 

2 American Electric Reliability Corporation 

3 described in paragraph (2)(A); and 

4 ‘‘(ii) issue a decision that approves, 

5 disapproves, or modifies the decision of the 

6 North American Electric Reliability Cor7 poration. 

8 ‘‘(B) DISAPPROVAL.—The Commission 

9 shall disapprove a decision of the North Amer10 ican Electric Reliability Corporation described 

11 in paragraph (2)(A) if the Commission deter12 mines that the decision would result in unjust, 

13 unreasonable, unduly discriminatory, or other14 wise unlawful rates for ratepayers.’’. 

Æ 


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