POWER Act

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. Short title This Act may be cited as the Providing Opportunities to Work for Energy Reliability Act POWER Act 2. Review of decisions of North American Electric Reliability Corporation affecting cost allocation under system support resources agreements Section 205 of the Federal Power Act ( 16 U.S.C. 824d (g) Review of decisions of North American Electric Reliability Corporation affecting cost allocation under system support resources agreements (1) Definitions In this subsection: (A) System support resources agreement (i) In general The term system support resources agreement (I) operation of the system support resources unit for a period past the date on which the owner of the system support resources unit proposes to suspend the operation of, or retire, the system support resources unit; (II) the payments to be made to the owner of the system support resources unit for the continued operation; and (III) the manner in which the costs for the continued operation will be recovered. (ii) Inclusions The term system support resources agreement (B) System support resources unit The term system support resources unit (i) an application to the transmission organization by the owner of the unit to retire or suspend operation of the unit; and (ii) a determination by the transmission organization that the operation of the unit is necessary to operate the transmission system consistent with applicable reliability standards. (C) Transmission organization The term transmission organization (2) Review by commission (A) In general The Commission shall review any decision by the North American Electric Reliability Corporation to approve a new balancing authority that would alter cost allocations under an existing system support resources agreement. (B) Suspension of effectiveness The new balancing authority described in subparagraph (A) shall not take effect until approved by the Commission. (3) Cost-benefit analysis Prior to issuing a decision under paragraph (4), the Commission shall publish a cost-benefit analysis of the proposed decision described in paragraph (2)(A), including the likely financial impact of the decision on ratepayers. (4) Decision by commission (A) In general The Commission shall— (i) review a decision of the North American Electric Reliability Corporation described in paragraph (2)(A); and (ii) issue a decision that approves, disapproves, or modifies the decision of the North American Electric Reliability Corporation. (B) Disapproval The Commission shall disapprove a decision of the North American Electric Reliability Corporation described in paragraph (2)(A) if the Commission determines that the decision would result in unjust, unreasonable, unduly discriminatory, or otherwise unlawful rates for ratepayers. .

Summary: Providing Opportunities to Work for Energy Reliability Act or the POWER Act - Amends the Federal Power Act to direct the Federal Energy Regulatory Commission (FERC) to review any decision by the North American Electric Reliability Corporation (NAERC) to approve a new balancing authority that would alter cost allocations under an existing system support resources agreement. Precludes such new balancing authority from taking effect until approved by FERC. Requires FERC to publish a cost-benefit analysis of the proposed NAERC decision, including its likely financial impact upon ratepayers, before issuing a decision to approve, disapprove, or modify the NAERC decision.