I

105TH CONGRESS

1ST SESSION H. R. 655

To give all American electricity consumers the right to choose among competitive providers of electricity, in order to secure lower electricity rates,

higher quality services, and a more robust United States economy, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 10, 1997

Mr. SCHAEFER introduced the following bill; which was referred to the

Committee on Commerce

A BILL

To give all American electricity consumers the right to choose

among competitive providers of electricity, in order to

secure lower electricity rates, higher quality services, and

a more robust United States economy, 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 AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Electric Consumers’ Power to Choose Act of 1997’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title and table of contents.

Sec. 2. Findings and purpose.
2

•HR 655 IH

Sec. 3. Severability.

TITLE I—COMPETITIVE RETAIL ELECTRIC ENERGY SERVICE

Sec. 101. Definitions.

Sec. 102. Customer choice.

Sec. 103. Retail competition for State regulated electric utilities.

Sec. 104. Retail competition for nonregulated electric utilities.

Sec. 105. Jurisdiction of State courts.

Sec. 106. FERC authority for certain utilities.

Sec. 107. Prior State adoption.

Sec. 108. Antitrust laws.

Sec. 109. FERC authority for transmission.

Sec. 110. Effect on other authorities.

Sec. 111. Barriers to entry.

Sec. 112. Illegal changes in customer selections.

Sec. 113. Renewable energy.

Sec. 114. Jurisdictional determinations of transmission and local distribution

facilities.

TITLE II—PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

Sec. 201. Applicability of title; relationship to Public Utility Holding Company

Act of 1935.

Sec. 202. Definitions.

Sec. 203. Federal access to books and records.

Sec. 204. Exemption authority regarding Federal access.

Sec. 205. State access to books and records.

Sec. 206. Affiliate transactions.

Sec. 207. Application of title.

Sec. 208. Effect on other regulation.

Sec. 209. Enforcement.

Sec. 210. Saving provision.

Sec. 211. Implementation.

Sec. 212. Transfers.

Sec. 213. Conforming change.

TITLE III—PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978

Sec. 301. Application of PURPA provisions.

1 SEC. 2. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—The Congress finds that:

3 (1) Low cost and reliable electricity is integral

4 to the vitality of the United States economy, the

5 competitiveness of domestically made goods and the

6 quality of life of all Americans.
3

•HR 655 IH

1 (2) Americans consume electricity worth more

2 than $200 billion a year, approximately half of

3 which is for residential purposes, making the month4 ly electric utility bill one of the largest expenses for

5 most households.

6 (3) The cost of electricity has a direct effect on

7 the price, profitability, and competitiveness of goods

8 and services produced in the United States.

9 (4) Lower priced electricity can be realized by

10 giving all American consumers the right to choose

11 among suppliers of electricity in a competitive mar12 ket, while maintaining, if not improving, the reliabil13 ity of service those consumers have come to expect.

14 (5) The development of vibrant competition in

15 the retail market for electric energy will—

16 (A) reduce the costs of electric energy to

17 even the smallest consumers of electricity;

18 (B) create jobs as American businesses are

19 able to lower costs and better compete in world

20 markets and against foreign competition here at

21 home; and

22 (C) result in a more efficient utility indus23 try.

24 (6) Monopoly rate-of-return regulation of elec25 tricity has failed. It has stifled competition, resulting
4

•HR 655 IH

1 in high electricity rates for many consumers and few

2 incentives for technological innovation and good cus3 tomer service by electric utilities.

4 (7) High electricity rates are regressive, placing

5 a disproportionate burden on poor ratepayers.

6 (8) High electricity rates divert consumer dol7 lars that would otherwise be spent for purchasing

8 necessary goods and services, savings, or invest9 ments that benefit the economy as a whole.

10 (9) Congress has authority to enact laws, under

11 the Commerce Clause of the United States Constitu12 tion, regarding the generation, transmission, dis13 tribution, and sale of electric energy in interstate

14 commerce at the wholesale and retail levels.

15 (10) Only Congress can ensure that a competi16 tive retail electricity market is established through17 out the United States on an expeditious but orderly

18 basis. Regional and State variations, however, re19 quire that State regulatory authorities should receive

20 deference in implementing competition and consumer

21 choice in retail electricity markets.

22 (11) Customers of all utilities, whether served

23 by regulated or nonregulated electric utilities (such

24 as municipally owned utilities or rural cooperatives)
5

•HR 655 IH

1 should have the same rights to receive the benefits

2 of competition and consumer choice.

3 (12) In a competitive generation market, it is in

4 the national interest to continue to encourage the

5 development of renewable energy technologies in

6 order to ensure energy diversity and security and to

7 protect the environment.

8 (13) A national program is needed to promote

9 renewable energy development that is market driven

10 and encourages competition among different renew11 able technologies. This program should be limited in

12 scope and should be terminated when the goals of

13 the program are achieved.

14 (14) Subjecting renewable energy technologies

15 to the discipline of the free market will better allo16 cate renewable resources and speed the commer17 cialization of renewable technologies than traditional

18 centralized government resource planning.

19 (b) PURPOSE.—The purpose of this Act is to give all

20 American electricity consumers the right to choose among

21 competitive providers of electricity, in order to secure

22 lower electricity rates, higher quality services, and a more

23 robust United States economy.
6

•HR 655 IH

1 SEC. 3. SEVERABILITY.

2 If any provision of this Act, or the application of such

3 provision to any person or circumstance, shall be held in4 valid, the remainder of the Act, and the application of

5 such provision to persons or circumstances other than

6 those as to which it is held invalid, shall not be affected

7 thereby.

8 TITLE I—COMPETITIVE RETAIL

9 ELECTRIC ENERGY SERVICE

10 SEC. 101. DEFINITIONS.

11 For purposes of this title:

12 (1) The term ‘‘Commission’’ means the Federal

13 Energy Regulatory Commission.

14 (2) The terms ‘‘State regulatory authority’’,

15 ‘‘State regulated electric utility’’ and ‘‘nonregulated

16 electric utility’’ have the same meaning as such

17 terms have in the Public Utility Regulatory Policies

18 Act of 1978, as provided by section 3 of that Act.

19 (3) The term ‘‘retail electric energy service’’

20 means each of the following:

21 (A) Electric energy sold for ultimate con22 sumption.

23 (B) Aggregating or marketing electric en24 ergy for sale for ultimate consumption.
7

•HR 655 IH

1 (C) Billing and metering services and

2 equipment for electric energy sold for ultimate

3 consumption.

4 (D) Energy management services and

5 equipment for electric energy sold for ultimate

6 consumption.

7 (E) Any other electric service or equipment

8 for which an alternative to that provided by an

9 electric utility is offered to an electric utility re10 tail customer of such utility by any person

11 other than such utility.

12 (4) The term ‘‘electric utility retail customer’’

13 means a person who purchases retail electric energy

14 services.

15 (5) The term ‘‘regulated electric utility retail

16 customer’’ means an electric utility retail customer

17 who is served by the local distribution system of a

18 State regulated electric utility.

19 (6) The term ‘‘nonregulated electric utility re20 tail customer’’ means an electric utility retail cus21 tomer who is served by the local distribution system

22 of a nonregulated electric utility.

23 (7) The term ‘‘affiliate’’ when used with respect

24 to an electric utility means any person that controls,
8

•HR 655 IH

1 is controlled by, or is under common control with,

2 such utility.

3 (8) The term ‘‘renewable energy’’ means elec4 tricity generated from organic waste, biomass, dedi5 cated energy crops, landfill gas, geothermal, solar,

6 tidal, or wind resources.

7 (9) The term ‘‘Renewable Energy Credit’’

8 means a tradable certificate of proof that one unit

9 (as determined by the Commission) of renewable en10 ergy was generated by any person.

11 (10) The term ‘‘electric generator’’ means a

12 person generating electric energy.

13 (11) The term ‘‘State’’ means any State and

14 the District of Columbia.

15 SEC. 102. CUSTOMER CHOICE.

16 By no later than December 15, 2000, all electric util17 ity retail customers shall have the right to purchase retail

18 electric energy services from any person offering to pro19 vide those services to such customers.

20 SEC. 103. RETAIL COMPETITION FOR STATE REGULATED

21 ELECTRIC UTILITIES.

22 (a) STATE ELECTION.—A State may elect to estab23 lish, by no later than December 15, 2000, retail electric

24 service choice in accordance with this Act for retail cus25 tomers of State regulated electric utilities in such State.
9

•HR 655 IH

1 Such election shall be made through submission by the

2 State regulatory authority exercising ratemaking jurisdic3 tion over such utilities of a notice to the Commission with4 in 6 months after the enactment of this Act. If, within

5 such 6-month period, the State regulatory authority noti6 fies the Commission that additional legislative authority

7 is needed in order for the State regulatory authority to

8 make such an election, the 6 month date shall be extended

9 to a date 2 years after the enactment of this Act. Any

10 State that established retail electric service choice for re11 tail customers of State regulated electric utilities in such

12 State before the enactment of this Act may submit a no13 tice under this section within 6 months after the enact14 ment of this Act.

15 (b) CUSTOMER CHOICE AND NONDISCRIMINATORY

16 ACCESS.—If a State elects to establish retail electric serv17 ice choice for State regulated electric utility customers, the

18 State regulatory authority exercising ratemaking authority

19 over State regulated electric utilities in the State shall es20 tablish such rules as will provide for each of the following:

21 (1) All State regulated electric utility retail cus22 tomers of all State regulated utilities under the rate23 making jurisdiction of the State regulatory authority
10

•HR 655 IH

1 shall be able to purchase retail electric energy serv2 ices from any person offering to provide those serv3 ices to such customers.

4 (2) Any person seeking to provide any retail

5 electric energy service to such customers shall have

6 reasonable and nondiscriminatory access on an

7 unbundled basis, for the purposes of providing such

8 service, to local distribution facilities owned or oper9 ated by such State regulated utilities. Access to local

10 distribution facilities shall be provided under rates,

11 terms, and conditions that are just, reasonable and

12 not unduly discriminatory and that permit the recov13 ery by the facility owner or operator of all costs in14 curred in connection with the local distribution serv15 ice and necessary ancillary services. The local dis16 tribution services provided shall be at least equal in

17 quality to those provided by the utility to itself or

18 to any affiliate of the utility.

19 (3) Services that are not competitive may not

20 be used to subsidize services that are subject to com21 petition.

22 The State regulatory authority shall establish an effective

23 date for the application of the requirements set forth in

24 paragraphs (1) through (3) for all State regulated electric

25 utilities subject to the jurisdiction of such State regulatory
11

•HR 655 IH

1 authority. Such date (hereinafter in this section referred

2 to as the ‘‘effective date for retail electric service choice’’)

3 shall not be later than December 15, 2000.

4 (c) PRICING FLEXIBILITY; INCENTIVE-BASED RATE

5 REGULATION.—Each State regulatory authority that

6 makes an election to establish retail electric service choice

7 for retail customers of a State regulated electric utility

8 subject to the jurisdiction of such State regulatory author9 ity shall implement, on the effective date of retail electric

10 service choice for such customers, appropriate flexible

11 pricing procedures and incentive-based rate regulation for

12 each retail electric energy service provided by such State

13 regulated electric utility. Such procedures shall afford the

14 utility the opportunity to respond fairly to competition.

15 (d) TERMINATION OF PRICE AND CERTAIN OTHER

16 REGULATION.—Each State regulatory authority that

17 makes an election to establish retail electric service choice

18 for retail customers of any State regulated electric utility

19 shall, on the effective date of such establishment, cease

20 to carry out each of the following with respect to any en21 tity that is not providing local distribution services to such

22 customers:

23 (1) Regulation of the prices for retail electric

24 energy services provided by such entity to such cus25 tomers.
12

•HR 655 IH

1 (2) Requiring such entity to file a schedule of

2 charges for retail electric energy services provided by

3 such entity to such customers.

4 (3) Requiring such entity to file cost or revenue

5 projections for retail electric energy services provided

6 by such entity to such customers.

7 (4) Regulation of depreciation charges for facili8 ties used by such entity to provide retail electric en9 ergy services to such customers.

10 Each such State regulatory authority shall also cease to

11 carry out the activities referred to in paragraphs (1)

12 through (4), and cease to implement subsection (c), with

13 respect to any retail electric energy service provided within

14 a geographic area by a State regulated electric utility that

15 is providing local distribution services within such area if

16 the State regulatory authority determines that such serv17 ice is subject to effective competition.

18 (e) CONSIDERATION OF CERTAIN TERMS AND CON19 DITIONS.—Each State regulatory authority that makes an

20 election to establish retail electric service choice for retail

21 customers of a State regulated electric utility shall con22 sider each of the following terms and conditions and make
13

•HR 655 IH

1 a determination concerning whether or not it is appro2 priate to apply such terms and conditions to the local dis3 tribution or sale of retail electric energy services to carry

4 out the purposes of this Act:

5 (1) Terms and conditions intended to insure

6 that adequate electric service is available to all cus7 tomers served by the retail distribution system con8 cerned.

9 (2) Terms and conditions designed to ensure

10 and enhance the reliability of electric service to all

11 electric energy consumers.

12 (3) Terms and conditions allowing any State

13 regulated electric utility subject to the ratemaking

14 jurisdiction of such State regulatory authority to re15 cover costs incurred prior to July 11, 1996, and any

16 costs incurred pursuant to a contract entered into

17 under section 210 of the Public Utility Regulatory

18 Policies Act of 1978.

19 (4) Terms and conditions to promote electric

20 energy efficiency, conservation, and environmental

21 programs.

22 Such terms and conditions may only be imposed on a non23 discriminatory and competitively neutral basis.
14

•HR 655 IH

1 SEC. 104. RETAIL COMPETITION FOR NONREGULATED

2 ELECTRIC UTILITIES.

3 (a) NONREGULATED UTILITY ELECTION.—A non4 regulated electric utility may elect to establish, by no later

5 than December 15, 2000, retail electric service choice for

6 its customers. Such election shall be made through sub7 mission, within 6 months after the enactment of this sec8 tion, of a notice to the State regulatory authority exercis9 ing ratemaking jurisdiction over State regulated utilities

10 in the State in which such nonregulated utility is located.

11 Such notice shall be submitted to the Commission in the

12 case of a State without a State regulatory authority exer13 cising ratemaking jurisdiction over State regulated electric

14 utilities. If, within such 6-month period, the utility notifies

15 the State regulatory authority (or the Commission in the

16 case of a State without a State regulatory authority exer17 cising ratemaking jurisdiction over State regulated electric

18 utilities) that additional legislative authority is needed in

19 order for the utility to make such an election, the 6 month

20 date shall be extended to a date 2 years after the enact21 ment of this section. If a nonregulated electric utility does

22 not elect to establish retail electric service choice for its

23 customers within the required period, such utility shall be

24 subject to the election made under section 103 by the

25 State regulatory authority that has ratemaking authority
15

•HR 655 IH

1 for State regulated electric utilities in the State. Any non2 regulated electric utility that established retail electric

3 service choice for its retail customers before the enactment

4 of this Act may submit a notice under this section within

5 6 months after the enactment of this Act.

6 (b) CUSTOMER CHOICE AND NONDISCRIMINATORY

7 ACCESS.—If a nonregulated electric utility elects to estab8 lish retail electric service choice for its retail electric cus9 tomers, the utility shall establish such rules as will provide

10 for each of the following:

11 (1) All nonregulated electric utility retail cus12 tomers of the utility shall be able to purchase retail

13 electric energy services from any person offering to

14 provide those services to such customers.

15 (2) Any person seeking to provide retail electric

16 energy services to such customers shall have reason17 able and nondiscriminatory access on an unbundled

18 basis, for the purposes of providing such services, to

19 all local distribution facilities owned or operated by

20 the utility. Access to local distribution facilities shall

21 be provided under rates, terms, and conditions that

22 are just, reasonable and not unduly discriminatory

23 and that permit the recovery by the utility of all

24 costs incurred in connection with the local distribu25 tion services and necessary associated services. The
16

•HR 655 IH

1 local distribution services provided shall be at least

2 equal in quality to those provided by the utility to

3 itself or to any affiliate of the utility.

4 (3) Services that are not competitive may not

5 be used to subsidize services that are subject to com6 petition.

7 The nonregulated electric utility shall establish an effec8 tive date for the application of the requirements set forth

9 in paragraphs (1) through (3). Such date (hereinafter in

10 this section referred to as the ‘‘effective date for retail

11 electric service choice’’) shall not be later than December

12 15, 2000.

13 (c) CONSIDERATION OF CERTAIN TERMS AND CONDI14 TIONS.—Each nonregulated electric utility that makes an

15 election to establish retail electric service choice for its

16 customers shall consider each of the following terms and

17 conditions and make a determination concerning whether

18 or not it is appropriate to apply such terms and conditions

19 to the local distribution or sale of retail electric energy

20 services to carry out the purposes of this Act:

21 (1) Terms and conditions intended to insure

22 that adequate electric service is available to all cus23 tomers served by the retail electric distribution sys24 tem concerned.
17

•HR 655 IH

1 (2) Terms and conditions designed to ensure

2 and enhance the reliability of electric service to all

3 retail electric customers of the utility.

4 (3) Terms and conditions allowing the nonregu5 lated electric utility to recover costs incurred prior to

6 July 11, 1996 and any costs incurred pursuant to

7 a contract entered into under section 210 of the

8 Public Utility Regulatory Policies Act of 1978.

9 (4) Terms and conditions to promote electric

10 energy efficiency, conservation, and environmental

11 programs.

12 Such terms and conditions may only be imposed on a non13 discriminatory and competitively neutral basis.

14 (d) PREFERENCE POWER.—No person may resell

15 electric energy purchased by such person pursuant to a

16 long-term firm power contract from any Federal power

17 marketing authority to any other person not directly

18 served by retail distribution facilities owned or operated

19 by such person.

20 SEC. 105. JURISDICTION OF STATE COURTS.

21 In addition to the prohibitions on Federal court juris22 diction set forth in section 1342 of title 28 of the United

23 States Code, notwithstanding any other provision of law,

24 no court of the United States shall have jurisdiction over

25 any action arising under any provision of section 102, 103,
18

•HR 655 IH

1 104, 107, or 111 except for review of any action in the

2 Supreme Court of the United States in accordance with

3 sections 1257 and 1258 of title 28 of the United States

4 Code. Any person may bring an action in the appropriate

5 State court to enforce the requirements of sections 102,

6 103, 104, 107, and 111. Except for Supreme Court re7 view, any appeal, review, or other action in State court

8 shall be pursuant to any applicable State procedures.

9 SEC. 106. FERC AUTHORITY FOR CERTAIN UTILITIES.

10 (a) IN GENERAL.—If a notice under section 103(a)

11 or 104(a) is not submitted by the date applicable under

12 section 103(a) or 104(a) for a State regulated or a non13 regulated electric utility, the Commission shall implement

14 by December 15, 2000, subsections (b) through (e) of sec15 tion 103 and subsections (b) through (d) of section 104

16 for that State or nonregulated electric utility. The exercise

17 of such authorities pursuant to this section shall preempt

18 any State law that is inconsistent with the exercise of such

19 authorities.

20 (b) FEDERAL COURTS.—The provisions of section

21 105 (relating to jurisdiction of State courts) shall not

22 apply to any action arising under this section. Any person

23 aggrieved by any action of the Commission pursuant to

24 this section may bring an action in the appropriate United

25 States district court for appropriate relief.
19

•HR 655 IH

1 SEC. 107. PRIOR STATE ADOPTION.

2 (a) PRIOR ADOPTION OF CUSTOMER CHOICE.—Noth3 ing in this title shall be construed to prohibit any State

4 or State regulatory authority or any nonregulated electric

5 utility from establishing or enforcing any statute, rule, or

6 regulation relating to retail electric service competition

7 prior to December 15, 2000, or to require any State or

8 State regulatory authority or nonregulated electric utility

9 to establish or enforce any statute, rule or regulation relat10 ing to retail electric service competition prior to December

11 15, 2000.

12 (b) PRESERVATION OF PRIOR CUSTOMER CHOICE.—

13 (1) STATE REGULATED ELECTRIC UTILITIES.—

14 For any State that established retail electric service

15 choice for State regulated electric utilities before the

16 enactment of this Act, nothing in this title shall be

17 construed to preempt any State statute, rule, or reg18 ulation relating to retail electric service choice to the

19 extent that such statute, rule, or regulation satisfies

20 the requirements of subsections (b) through (e) of

21 section 103.

22 (2) NONREGULATED ELECTRIC UTILITIES.—

23 For any nonregulated electric utility that established

24 retail electric service choice for its customers before

25 the enactment of this Act, nothing in this title shall

26 be construed to preempt any State or local statute,
20

•HR 655 IH

1 rule, or regulation relating to retail electric service

2 choice for such customers to the extent that such

3 statute, rule, or regulation satisfies the requirements

4 of subsections (b) through (d) of section 104.

5 SEC. 108. ANTITRUST LAWS.

6 Nothing in this title or the amendments made by this

7 title shall be construed to modify, impair, or supersede the

8 applicability of any of the antitrust laws. As used in this

9 section the term ‘‘antitrust laws’’ includes the Sherman

10 Antitrust Act (15 U.S.C. 1 et seq.) and amendments

11 thereto, the Clayton Act (15 U.S.C. 12 et seq.) and

12 amendments thereto, regulations promulgated under such

13 laws, and Federal court decisions interpreting such laws.

14 SEC. 109. FERC AUTHORITY FOR TRANSMISSION.

15 (a) IN GENERAL.—The Commission may, by rule or

16 order, require a transmitting utility (as defined in the

17 Federal Power Act) to provide transmission of electric en18 ergy in interstate commerce (including any enlargement

19 of transmission capacity necessary to provide such service)

20 under such terms and conditions as the Commission finds

21 are necessary and appropriate to ensure that customers

22 have access to transmission services under terms and con23 ditions (including charges) that are comparable to those

24 under which the transmitting utility uses its own system

25 and are otherwise in the public interest.
21

•HR 655 IH

1 (b) LIMITATION.—The Commission may not exercise

2 the authority of subsection (a) to require the transmission

3 of electric energy to any electric utility retail customer

4 prior to the effective date for retail electric choice (as de5 termined under section 103 or 104) for the electric utility

6 that provides local distribution service to such customer.

7 SEC. 110. EFFECT ON OTHER AUTHORITIES.

8 Nothing in this title shall be construed to prohibit

9 the Commission from using any authority of the Commis10 sion under part II of the Federal Power Act in fulfilling

11 the requirements of this title, to the extent that such au12 thority is not exercised in a manner inconsistent with the

13 provisions of this title.

14 SEC. 111. BARRIERS TO ENTRY.

15 (a) NONDISCRIMINATORY ACCESS.—After the effec16 tive date for retail electric service choice (as determined

17 under section 103 or 104) for a State regulated or non18 regulated electric utility, no State or local legal require19 ment (other than a facility siting requirement) may pro20 hibit or have the effect of prohibiting any entity from of21 fering to any electric utility retail customer of such utility

22 any retail electric energy service or from providing any re23 tail electric energy service directly or indirectly to any such

24 customer.
22

•HR 655 IH

1 (b) STATE AND LOCAL REGULATORY AUTHORITY.—

2 A State or local government may, under State law, impose

3 requirements relating to retail electric energy services nec4 essary to ensure that adequate electric service is available

5 to all customers served by the retail distribution system

6 concerned, protect public safety and welfare, ensure the

7 continued quality of electric services and safeguard the

8 rights of consumers to the extent such requirements are

9 imposed on a nondiscriminatory and competitively neutral

10 basis.

11 (c) PARITY OF FRANCHISE AND OTHER CHARGES.—

12 A State or local government, under State law, may impose

13 or collect any franchise, license, permit fee, or equivalent

14 thereof, from any person providing any retail electric en15 ergy service as a condition for operating in the State or

16 locality, only to the extent such charge is imposed on a

17 nondiscriminatory and competitively neutral basis.

18 SEC. 112. ILLEGAL CHANGES IN CUSTOMER SELECTIONS.

19 (a) PROHIBITION.—No person shall submit or exe20 cute a change in the selection made by a regulated utility

21 retail customer or nonregulated utility retail customer of

22 a provider of retail electric energy services except in ac23 cordance with such verification procedures as the Commis24 sion shall prescribe. Nothing in this section shall preclude
23

•HR 655 IH

1 any State regulatory authority from proscribing such addi2 tional procedures regarding changes in customer selection

3 with respect to intrastate retail electric energy services.

4 (b) LIABILITY FOR CHARGES.—Any person who vio5 lates the verification procedures described in subsection

6 (a) and that collects charges from a customer shall be lia7 ble—

8 (1) to the customer in an amount equal to all

9 charges paid by such customer after violation; and

10 (2) to the provider of retail electric energy serv11 ice previously selected by the customer in an amount

12 equal to all charges paid by such customer after vio13 lation.

14 The Commission may prescribe procedures for the recov15 ery of the amounts referred to in paragraphs (1) and (2).

16 The remedies provided by this section are in addition to

17 any other remedies available by law.

18 SEC. 113. RENEWABLE ENERGY.

19 (a) MINIMUM RENEWABLE GENERATION REQUIRE20 MENT.—For calendar years after December 31, 2000,

21 each electric generator that sells electric energy to any

22 other person shall submit to the Commission Renewable

23 Energy Credits in an amount equal to the required annual

24 percentage of the total electric energy generated by such

25 generator in the preceding calendar year. In determining
24

•HR 655 IH

1 the total electric energy generated by any electric genera2 tor, electric energy generated by means of hydroelectric

3 facilities shall not be taken into account. Nothing in this

4 section shall be construed to prohibit any State from re5 quiring additional renewable energy generation in that

6 State under any program adopted by the State.

7 (b) REQUIRED ANNUAL PERCENTAGE.—From cal8 endar year 2001 through calendar year 2004, the required

9 annual percentage for each electric generator in the State

10 shall be 2 percent. Thereafter the required annual percent11 age for each such generator shall be as set forth in the

12 following table:

Minimum

Calendar year: Percentage:

2005 ......................................................................................... 3

2010 ......................................................................................... 4

13 (c) SUBMISSION OF CREDITS.—An electric generator

14 may satisfy the requirements of subsection (a) through the

15 submission of—

16 (1) Renewable Energy Credits issued by the

17 Commission under this section for renewable energy

18 generated by such electric generator in such cal19 endar year.

20 (2) Renewable Energy Credits issued by the

21 Commission under this section to any other electric

22 generator for renewable energy generated in such
25

•HR 655 IH

1 calendar year by such other generator and acquired

2 by such electric generator.

3 (3) Any combination of the foregoing.

4 A Renewable Energy Credit that is submitted to the Com5 mission for any year may not be used for any other pur6 poses thereafter.

7 (d) ISSUANCE OF RENEWABLE ENERGY CREDITS.—

8 (1) IN GENERAL.—The Commission shall estab9 lish, by rule after notice and opportunity for hearing

10 but not later than 120 days after the enactment of

11 this Act, a program to issue Renewable Energy

12 Credits to electric generators that sell electric energy

13 to any other person. Renewable Energy Credits shall

14 be identified by type of generation and facility loca15 tion (State). Under such program, the Commission

16 shall issue one Renewable Energy Credit to any per17 son who generates and sells to any other person one

18 unit of electric energy through the use of renewable

19 energy generation.

20 (2) FEES.—The Commission shall impose and

21 collect a fee on recipients of Renewable Energy

22 Credits in an amount equal to the administrative

23 costs of issuing, recording, monitoring the sale or ex24 change, and tracking of such credits. The failure or

25 refusal of any person to pay such fee shall be subject
26

•HR 655 IH

1 to a civil penalty equal to 2 and one-half times the

2 amount of the unpaid fees. The Commission shall

3 bring an action in the appropriate United States dis4 trict court to collect any unpaid fees and to impose

5 a civil penalty on any person who fails or refuses to

6 pay such fee imposed under this section.

7 (3) PURPA CONTRACTS.—In the case of re8 newable energy sold by the generator to a State reg9 ulated electric utility under a contract (including but

10 not limited to a contract entered into before the date

11 of enactment of this Act) that is subject to section

12 210 of the Public Utility Regulatory Policies Act of

13 1978, for the duration of such contract, the utility

14 shall be treated for purposes of the other provisions

15 of this section as the generator of such energy un16 less such generator and utility agree to terminate

17 such contract prior to the expiration date set forth

18 in the contract.

19 (e) SALE OR EXCHANGE.—Renewable Energy Credits

20 may be sold or exchanged by the person to whom issued

21 or by any other person who acquires the credit. A Renew22 able Energy Credit for any year that is not used to satisfy

23 the minimum renewable generation requirement of sub24 section (a) for that year may be not be carried forward

25 for use in another year. The Commission shall promulgate
27

•HR 655 IH

1 regulations to provide for the issuance, recording, monitor2 ing the sale or exchange, and tracking of such credits. The

3 Commission shall maintain records of all sales and ex4 changes of credits. No such sale or exchange shall be valid

5 unless recorded by the Commission.

6 (f) ENFORCEMENT.—The Commission shall bring an

7 action in the appropriate United States district court to

8 impose a civil penalty on any person who fails or refuses

9 to comply with subsection (a). The failure or refusal of

10 any person to submit any required quantity of Renewable

11 Energy Credits shall be subject to a civil penalty of not

12 more than 2 and one-half times the estimated national av13 erage market value (as determined by the Commission)

14 for the calendar year concerned of such quantity of Re15 newable Energy Credits.

16 (g) RULES AND REGULATIONS.—The Commission

17 shall promulgate such rules and regulations as may be

18 necessary to carry out this section, including such rules

19 and regulations requiring the submission of such informa20 tion as may be necessary to verify the annual electric en21 ergy generation and renewable energy generation of any

22 person applying for Renewable Energy Credits under this

23 section or to verify and audit the validity of Renewable

24 Energy Credits submitted by any person to the Commis25 sion.
28

•HR 655 IH

1 (h) ANNUAL REPORTS.—The Commission shall gath2 er available data and devise measures to gauge compliance

3 with the requirements of this section and the success of

4 the National Renewable Energy Trading Program estab5 lished under this section. On an annual basis not later

6 than May 31 of each year, the Commission shall publish

7 a report for the previous year that includes compliance

8 data, National Renewable Energy Trading Program re9 sults, and steps taken to improve the Program results.

10 (i) SUNSET.—The requirements of this section shall

11 cease to apply 90 days after the Commission certifies in

12 the annual report under subsection (h) that for the preced13 ing year the market value of Renewable Energy Credits

14 or the number of credits traded or both has declined to

15 such nominal levels that the costs incurred by the Com16 mission for issuance, recording, monitoring sale or ex17 change, and tracking of credits is no longer justified.

18 SEC. 114. JURISDICTIONAL DETERMINATIONS OF TRANS19 MISSION AND LOCAL DISTRIBUTION FACILI20 TIES.

21 (a) IN GENERAL.—Section 201(b) of the Federal

22 Power Act is amended by inserting the following new para23 graphs after paragraph (1) and redesignating paragraph

24 (2) as paragraph (7):
29

•HR 655 IH

1 ‘‘(2)(A) Any person that provides unbundled retail

2 transmission or distribution of electric energy in interstate

3 commerce shall obtain a jurisdictional determination from

4 the Commission as to which facilities owned, controlled,

5 or operated by such person are or will be facilities used

6 for retail transmission in interstate commerce and there7 fore subject to Commission jurisdiction, and which facili8 ties are or will be used for local distribution and therefore

9 subject to State jurisdiction.

10 ‘‘(B) A person providing services referred to in sub11 paragraph (A) as of the date of enactment of this para12 graph shall file, within 90 days of the date of enactment

13 of this paragraph, an application for jurisdictional deter14 mination under this paragraph. The Commission, after

15 consultation with representatives of affected State com16 missions, shall make a jurisdictional determination with

17 respect to the facilities of such person no later than 18

18 months after the date the application is filed.

19 ‘‘(C) A person that first provides services referred to

20 in subparagraph (A) after the date of enactment of this

21 paragraph shall file an application for jurisdictional deter22 mination under this paragraph no later than 90 days prior
30

•HR 655 IH

1 to the date that unbundled retail transmission or distribu2 tion service is to commence. The Commission, after con3 sultation with representatives of the affected State com4 missions, shall make a determination with respect to the

5 facilities of such person no later than 1 year after the date

6 the application is filed.

7 ‘‘(3) In making a jurisdictional determination under

8 paragraph (2), the Commission shall consider the follow9 ing nonexclusive list of factors as indicating that facilities

10 constitute local distribution facilities subject to State ju11 risdiction:

12 ‘‘(A) Local distribution facilities normally are in

13 close proximity to retail customers.

14 ‘‘(B) Local distribution facilities are primarily

15 radial in character.

16 ‘‘(C) Power flows into, but rarely out of, local

17 distribution systems.

18 ‘‘(D) When power enters a local distribution

19 system, it is not reconsigned or transported on to

20 some other market.

21 ‘‘(E) Power entering a local distribution system

22 is consumed in a comparatively restricted geographi23 cal area.
31

•HR 655 IH

1 ‘‘(F) Meters are based at the transmission/local

2 distribution interface to measure flows into the local

3 distribution system.

4 ‘‘(G) Local distribution systems will be of re5 duced voltage.

6 The Commission shall also consider the historical uses of

7 facilities used to deliver electric energy to end users and

8 other technical factors that may be relevant to a jurisdic9 tional determination. The Commission shall give deference

10 to State commission recommendations that take into ac11 count the factors described in this subsection and shall

12 take into account other factors identified by a State com13 mission as relevant to a jurisdictional determination with

14 respect to facilities located in such State.

15 ‘‘(4) Once the Commission makes a jurisdictional de16 termination under paragraph (2), such determination may

17 not be modified unless the Commission determines there

18 is a material change in facts or circumstances since the

19 time the prior determination was made, or finds that prior

20 representations or facts were incorrect. The Commission

21 may modify a prior jurisdictional determination only after

22 consultation with representatives of the affected State

23 commission.

24 ‘‘(5) Any person, State, or State commission ag25 grieved by an order making a jurisdictional determination
32

•HR 655 IH

1 under paragraph (2) may obtain a review of such order

2 in the Circuit Court of Appeals of the United States for

3 any circuit wherein the person to which the order relates

4 is located or has its principal place of business or in the

5 United States Court of Appeals for the District of Colum6 bia Circuit, pursuant to section 313.’’

7 (b) BYPASS.—(1) Notwithstanding the Federal

8 Power Act, a State or a State regulatory authority (in car9 rying out its authority to regulate facilities used for the

10 local distribution of electric energy or for the provision of

11 local distribution service) may require, as a condition for

12 the purchase by any person or municipality of retail elec13 tric energy services, the payment of a charge deemed nec14 essary by the State or State regulatory authority for any

15 of the following:

16 (A) To recover costs incurred by an electric

17 utility that become unrecoverable due to the avail18 ability of retail electric service choice.

19 (B) To ensure that adequate electric service is

20 available to all customers served by the retail dis21 tribution system concerned.

22 (C) To ensure and enhance the reliability of re23 tail electric service.

24 (D) To fund assistance to low-income cus25 tomers.
33

•HR 655 IH

1 (E) To encourage environmental, renewable en2 ergy, energy efficiency, conservation programs, or

3 any combination of such programs.

4 (F) to provide for retraining of electric employ5 ees.

6 (G) Any combination of the purposes described

7 in subparagraphs (A) through (F). Notwithstanding

8 the Federal Power Act, a nonregulated electric util9 ity may also require, as a condition for the purchase

10 by any person of retail electric energy services, the

11 payment of a charge deemed necessary by the non12 regulated electric utility for any of such purposes.

13 (2) For purposes of this subsection, the term ‘‘local

14 distribution service’’ includes the receipt of electric energy

15 by an end user whether or not such receipt requires the

16 use of local distribution facilities.

17 TITLE II—PUBLIC UTILITY

18 HOLDING COMPANY ACT OF 1935

19 SEC. 201. APPLICABILITY OF TITLE; RELATIONSHIP TO

20 PUBLIC UTILITY HOLDING COMPANY ACT OF

21 1935.

22 (a) APPLICABILITY OF TITLE.—

23 (1) IN GENERAL.—This section and section 202

24 take effect on the date of the enactment of this Act.
34

•HR 655 IH

1 (2) COMPANY-SPECIFIC APPLICABILITY OF

2 OTHER PROVISIONS.—Section 203 and the subse3 quent sections of this title take effect for a holding

4 company, and for each public utility company of the

5 holding company, on the date on which, pursuant to

6 subsection (b), the Public Utility Holding Company

7 Act of 1935 ceases to apply to the holding company

8 and to each public utility company of the holding

9 company.

10 (b) APPLICABILITY OF PUBLIC UTILITY HOLDING

11 COMPANY ACT OF 1935; COMPANY-SPECIFIC DETER12 MINATIONS BY STATES.—The Public Utility Holding

13 Company Act of 1935 ceases to apply to a holding com14 pany, and to each public utility company of the holding

15 company, on the date on which all of the following condi16 tions are met:

17 (1) In the case of each electric utility company

18 of the holding company, each State in which such

19 utility company provides electric energy at retail

20 makes a determination that the retail customers of

21 the utility company in such State are able to pur22 chase electric energy at retail from any person offer23 ing electric energy to the purchaser on a competi24 tively neutral and nondiscriminatory basis.
35

•HR 655 IH

1 (2) In the case of each gas utility company of

2 the holding company, each State in which such util3 ity company distributes at retail natural or manufac4 tured gas or both (as the case may be) for heat,

5 light, or power makes a determination that the retail

6 customers of the utility company in such State are

7 able to purchase such gas at retail from any person

8 offering such gas to the purchaser on a competitively

9 neutral and nondiscriminatory basis.

10 (3) Each State making a determination under

11 paragraph (1) or (2) notifies the Commission, and

12 the Securities and Exchange Commission, of such

13 determination.

14 SEC. 202. DEFINITIONS.

15 For purposes of this title:

16 (1) The term ‘‘affiliate’’ of a company means

17 (A) any company 5 percent or more of whose out18 standing voting securities are owned, controlled, or

19 held with power to vote, directly or indirectly, by

20 such company; and (B) any person or class of per21 sons that the Commission determines, after appro22 priate notice and opportunity for hearing, to stand

23 in such relation, directly or indirectly, to such com24 pany that there is likely to be such an absence of

25 arm’s length bargaining in transactions between
36

•HR 655 IH

1 them as to make it necessary or appropriate in the

2 public interest or for the protection of consumers

3 that such person be subject to the obligations, du4 ties, and liabilities imposed in this title upon affili5 ates of a company.

6 (2) The term ‘‘associate company’’ of a com7 pany means any company in the same holding com8 pany system with such company.

9 (3) The term ‘‘Commission’’ means the Federal

10 Energy Regulatory Commission.

11 (4) The term ‘‘company’’ means a corporation,

12 a partnership, an association, a joint-stock company,

13 a business trust, or an organized group of persons,

14 whether incorporated or not; or any receiver, trustee,

15 or other liquidating agent of any of the foregoing in

16 his capacity as such.

17 (5) The term ‘‘electric utility company’’ means

18 any company that owns or operates facilities used

19 for the generation, transmission, or distribution of

20 electric energy for sale.

21 (6) The terms ‘‘exempt wholesale generator’’

22 and ‘‘foreign utility company’’ have the same mean23 ings as in sections 32 and 33, respectively, of the

24 Public Utility Holding Company Act of 1935.
37

•HR 655 IH

1 (7) The term ‘‘gas utility company’’ means any

2 company that owns or operates facilities used for the

3 distribution at retail (other than the distribution

4 only in enclosed portable containers) of natural or

5 manufactured gas for heat, light, or power.

6 (8) The term ‘‘holding company’’ means (A)

7 any company that directly or indirectly owns, con8 trols, or holds with power to vote, 10 percent or

9 more of the outstanding voting securities of a public

10 utility company or of a holding company of any pub11 lic utility company; and (B) any person, determined

12 by the Commission, after notice and opportunity for

13 hearing, to exercise directly or indirectly (either

14 alone or pursuant to an arrangement or understand15 ing with 1 or more other persons) such a controlling

16 influence over the management or policies of any

17 public utility company or holding company as to

18 make it necessary or appropriate for the protection

19 of consumers with respect to rates that such person

20 be subject to the obligations, duties, and liabilities

21 imposed in this title upon holding companies.

22 (9) The term ‘‘holding company system’’ means

23 a holding company, together with its subsidiary com24 panies.
38

•HR 655 IH

1 (10) The term ‘‘jurisdictional rates’’ means

2 rates established by the Commission for the trans3 mission of electric energy in interstate commerce,

4 the sale of electric energy at wholesale in interstate

5 commerce, the transportation of natural gas in inter6 state commerce, and the sale in interstate commerce

7 of natural gas for resale for ultimate public con8 sumption for domestic, commercial, industrial, or

9 any other use.

10 (11) The term ‘‘natural gas company’’ means a

11 person engaged in the transportation of natural gas

12 in interstate commerce or the sale of such gas in

13 interstate commerce for resale.

14 (12) The term ‘‘person’’ means an individual or

15 company.

16 (13) The term ‘‘public utility’’ means any per17 son who owns or operates facilities used for trans18 mission of electric energy in interstate commerce or

19 sale of electric energy at wholesale in interstate com20 merce.

21 (14) The term ‘‘public utility company’’ means

22 an electric utility company or a gas utility company.

23 (15) The term ‘‘State commission’’ means any

24 commission, board, agency, or officer, by whatever

25 name designated, of a State, municipality, or other
39

•HR 655 IH

1 political subdivision of a State that under the law of

2 such State has jurisdiction to regulate public utility

3 companies.

4 (16) The term ‘‘subsidiary company’’ of a hold5 ing company means (A) any company 10 percent or

6 more of the outstanding voting securities of which

7 are directly or indirectly owned, controlled, or held

8 with power to vote, by such holding company; and

9 (B) any person the management or policies of which

10 the Commission, after notice and opportunity for

11 hearing, determines to be subject to a controlling in12 fluence, directly or indirectly, by such holding com13 pany (either alone or pursuant to an arrangement

14 or understanding with 1 or more other persons) so

15 as to make it necessary or appropriate for the pro16 tection of consumers with respect to rates that such

17 person be subject to the obligations, duties, and li18 abilities imposed in this title upon subsidiary compa19 nies of holding companies.

20 (17) The term ‘‘voting security’’ means any se21 curity presently entitling the owner or holder thereof

22 to vote in the direction or management of the affairs

23 of a company.
40

•HR 655 IH

1 SEC. 203. FEDERAL ACCESS TO BOOKS AND RECORDS.

2 (a) HOLDING COMPANIES AND SUBSIDIARIES.—

3 Every holding company and associate company thereof

4 shall maintain, and make available to the Commission,

5 such books, accounts, documents, and other records as the

6 Commission deems relevant to costs incurred by a public

7 utility or natural gas company that is an associate com8 pany of such holding company and necessary or appro9 priate for the protection of consumers with respect to ju10 risdictional rates.

11 (b) AFFILIATES AND SUBSIDIARIES.—Every affiliate

12 of a holding company or of any subsidiary company there13 of shall maintain, and make available to the Commission,

14 such books, accounts, documents, and other records with

15 respect to any transaction that is subject to this title, as

16 the Commission deems relevant to costs incurred by a pub17 lic utility or natural gas company that is an associate com18 pany of such holding company and necessary or appro19 priate for the protection of consumers with respect to ju20 risdictional rates.

21 (c) AUTHORITY TO EXAMINE.—The Commission

22 may examine the books, accounts, documents, and other

23 records of any company in a holding company system, or

24 any affiliate thereof, as the Commission deems relevant

25 to costs incurred by a public utility or natural gas com26 pany within such holding company system and necessary
41

•HR 655 IH

1 or appropriate for the protection of consumers with re2 spect to jurisdictional rates.

3 (d) CONFIDENTIALITY.—No member, officer, or em4 ployee of the Commission shall divulge any fact or infor5 mation that may come to his knowledge during the course

6 of examination of books, accounts, documents, and other

7 records as provided in this section, except insofar as he

8 may be directed by the Commission or by a court of com9 petent jurisdiction.

10 SEC. 204. EXEMPTION AUTHORITY REGARDING FEDERAL

11 ACCESS.

12 (a) RULEMAKING.—Not later than 90 days after the

13 enactment of this Act, the Commission shall promulgate

14 a final rule to exempt from the requirements of section

15 203 any person that is a holding company, solely with re16 spect to one or more—

17 (1) qualifying facilities under the Public Utility

18 Regulatory Policies Act of 1978;

19 (2) exempt wholesale generators; or

20 (3) foreign utility companies.

21 (b) OTHER AUTHORITY.—If, upon application or

22 upon its own motion, the Commission finds that the books,

23 accounts, documents, and other records of any person are

24 not relevant to the jurisdictional rates of a public utility

25 or a natural gas company, or if the Commission finds that
42

•HR 655 IH

1 any class of transactions is not relevant to the jurisdic2 tional rates of a public utility or a natural gas company,

3 the Commission shall exempt such person or transaction

4 from the requirements of section 203.

5 SEC. 205. STATE ACCESS TO BOOKS AND RECORDS.

6 (a) AUTHORITY.—Upon the written request of a

7 State commission having jurisdiction to regulate a public

8 utility company in a holding company system, and subject

9 to such terms and conditions as may be necessary and ap10 propriate to safeguard against unwarranted disclosure to

11 the public of any trade secrets or sensitive commercial in12 formation, a holding company or its associate company or

13 affiliate thereof, wherever located, shall produce for in14 spection such books, accounts, documents, and other

15 records that—

16 (1) have been identified in reasonable detail in

17 a proceeding before the State commission;

18 (2) the State commission deems are relevant to

19 costs incurred by such public utility company; and

20 (3) are necessary for the effective discharge of

21 the responsibilities of the State commission with re22 spect to such proceeding.

23 (b) SAVINGS.—Nothing in this section shall preempt

24 applicable State law concerning the provision of books, ac25 counts, documents, and other records, or in any way limit
43

•HR 655 IH

1 the rights of a State to obtain books, accounts, documents,

2 and other records under Federal law, contracts, or other3 wise.

4 (c) COURT JURISDICTION.—Any district court of the

5 United States located in the State in which the State com6 mission referred to in subsection (a) is located shall have

7 jurisdiction to enforce compliance with this section.

8 SEC. 206. AFFILIATE TRANSACTIONS.

9 Nothing in this title shall preclude the Commission

10 or a State commission from exercising its jurisdiction

11 under otherwise applicable law to determine whether a

12 public utility company may recover in rates any costs of

13 an activity performed by an associate company, or any

14 costs of goods or services acquired by such public utility

15 company from an associate company.

16 SEC. 207. APPLICATION OF TITLE.

17 No provision in this title shall apply to, or be deemed

18 to include—

19 (1) the United States;

20 (2) a State or any political subdivision of a

21 State;

22 (3) any foreign governmental authority not op23 erating in the United States;

24 (4) any agency, authority, or instrumentality of

25 any entity referred to in paragraph (1), (2), or (3),
44

•HR 655 IH

1 or of any corporation that is wholly owned, directly

2 or indirectly by 1 or more of such entities; or

3 (5) any officer, agent, or employee of any entity

4 referred to in paragraph (1), (2), (3), or (4) acting

5 as such in the course of his official duty.

6 SEC. 208. EFFECT ON OTHER REGULATION.

7 Nothing in this title shall preclude the Commission

8 or a State commission from exercising its jurisdiction

9 under otherwise applicable law to protect utility consum10 ers.

11 SEC. 209. ENFORCEMENT.

12 The Commission shall have the same powers as set

13 forth in sections 306 through 317 of the Federal Power

14 Act (16 U.S.C. 825e–825p) to enforce the provisions of

15 this title.

16 SEC. 210. SAVING PROVISIONS.

17 (a) IN GENERAL.—Nothing in this title prohibits a

18 person from engaging in or continuing to engage in activi19 ties or transactions in which it is legally engaged or au20 thorized to engage on the date on which the Public Utility

21 Holding Company Act of 1935 ceases to apply to such

22 person pursuant to this title, provided that it complies

23 with the terms of any such authorization, whether by rule

24 or by order.
45

•HR 655 IH

1 (b) EFFECT ON OTHER COMMISSION AUTHORITY.—

2 Nothing in this title limits the authority of the Commis3 sion under the Federal Power Act (including section 301

4 of that Act) or the Natural Gas Act (including section 8

5 of that Act).

6 SEC. 211. IMPLEMENTATION.

7 Not later than 18 months after the date of the enact8 ment of this Act, the Commission shall—

9 (1) promulgate such regulations as may be nec10 essary or appropriate to implement this title; and

11 (2) submit to the Congress detailed rec12 ommendations on technical and conforming amend13 ments to Federal law necessary to carry out this

14 title and the amendments made by this title.

15 SEC. 212. TRANSFERS.

16 All books, accounts, documents, and other records

17 that relate primarily to the functions hereby vested in the

18 Commission under this title shall be transferred from the

19 Securities and Exchange Commission to the Commission.

20 SEC. 213. CONFORMING CHANGE.

21 Section 318 of the Federal Power Act (16 U.S.C.

22 825q) is repealed.
46

•HR 655 IH

1 TITLE III—PUBLIC UTILITY REG2 ULATORY POLICIES ACT OF

3 1978

4 SEC. 301. APPLICATION OF PURPA PROVISIONS.

5 Section 210 of the Public Utility Regulatory Policies

6 Act of 1978 is amended by adding the following new sub7 section at the end thereof:

8 ‘‘(m) UTILITIES SUBJECT TO RETAIL COMPETI9 TION.—

10 ‘‘(1) IN GENERAL.—The preceding provisions of

11 this section requiring electric utilities to offer to pur12 chase electric energy from qualifying cogeneration

13 facilities and qualifying small power production fa14 cilities at the incremental cost to the utility of alter15 native electric energy shall cease to apply to an elec16 tric utility if the State makes a determination that

17 the retail customers of such utility in such State are

18 able to purchase electric energy at retail from any

19 person offering electric energy to the purchaser on

20 a competitively neutral and nondiscriminatory basis

21 and if the State notifies the Commission of such de22 termination.

23 ‘‘(2) RIGHTS AND REMEDIES NOT AFFECTED.—

24 Nothing in the Electric Consumers’ Power to Choose

25 Act of 1997 affects the rights or remedies of any
47

•HR 655 IH

1 party with respect to the purchase or sale of electric

2 energy or capacity from or to a facility determined

3 to be a qualifying small power production facility or

4 a qualifying cogeneration facility pursuant to this

5 Act.’’.

Æ