Public Power Risk Management Act of 2015

To provide equal treatment for utility special entities using utility operations-related swaps, and for other purposes. 1. Short title This Act may be cited as the Public Power Risk Management Act of 2015 2. Transactions with utility special entities Section 1a(49) of the Commodity Exchange Act ( 7 U.S.C. 1a(49) (E) Certain transactions with a utility special entity (i) Transactions in utility operations-related swaps shall be reported pursuant to section 4r. (ii) In making a determination to exempt pursuant to subparagraph (D), the Commission shall treat a utility operations-related swap entered into with a utility special entity, as defined in section 4s(h)(2)(D), as if it were entered into with an entity that is not a special entity, as defined in section 4s(h)(2)(C). . 3. Utility special entity defined Section 4s(h)(2) of the Commodity Exchange Act ( 7 U.S.C. 6s(h)(2) (D) Utility special entity For purposes of this Act, the term utility special entity (i) owns or operates, or anticipates owning or operating, an electric or natural gas facility or an electric or natural gas operation; (ii) supplies, or anticipates supplying, natural gas or electric energy to another utility special entity; (iii) has, or anticipates having, public service obligations under Federal, State, or local law or regulation to deliver electric energy or natural gas service to customers; or (iv) is a Federal power marketing agency, as defined in section 3 of the Federal Power Act. . 4. Utility operations-related swap (a) Swap further defined Section 1a(47)(A)(iii) of the Commodity Exchange Act ( 7 U.S.C. 1a(47)(A)(iii) (1) by striking and (2) by adding and (3) by adding at the end the following: (XXIII) a utility operations-related swap; . (b) Utility operations-Related swap defined Section 1a of such Act ( 7 U.S.C. 1a (52) Utility operations-related swap The term utility operations-related swap (A) is entered into to hedge or mitigate a commercial risk; (B) is not a contract, agreement, or transaction based on, derived on, or referencing— (i) an interest rate, credit, equity, or currency asset class; (ii) except as used as fuel for electric energy generation, a metal, agricultural commodity, or crude oil or gasoline commodity of any grade; or (iii) any other commodity or category of commodities identified for this purpose in a rule or order adopted by the Commission in consultation with the appropriate Federal and State regulatory commissions; and (C) is associated with— (i) the generation, production, purchase, or sale of natural gas or electric energy, the supply of natural gas or electric energy to a utility, or the delivery of natural gas or electric energy service to utility customers; (ii) fuel supply for the facilities or operations of a utility; (iii) compliance with an electric system reliability obligation; (iv) compliance with an energy, energy efficiency, conservation, or renewable energy or environmental statute, regulation, or government order applicable to a utility; or (v) any other electric energy or natural gas swap to which a utility is a party. .

Summary: Public Power Risk Management Act of 2015 Amends the Commodity Exchange Act to direct the Commodity Futures Trading Commission (CFTC), when it determines whether to provide an exemption to designation as a swap dealer, to treat a utility operations-related swap entered into with a utility special entity as if such swap were entered into with an entity that is not a special entity. (Thus exempts an entity entering into a utility operations-related swap with a utility special entity from mandatory registration as a swap dealer.) Requires transactions in utility operations-related swaps to be reported according to requirements for the reporting of uncleared swaps. Defines "utility special entity" as a special entity, or any instrumentality, department, or corporation of or established by a state or local government, that: (1) owns or operates, or anticipates owning or operating, an electric or natural gas facility or an electric or natural gas operation; (2) supplies or anticipates supplying natural gas or electric energy to another utility special entity; (3) has or anticipates having public service obligations under federal, state, or local law or regulation to deliver electric energy or natural gas service to customers; or (4) is a federal power marketing agency. Redefines swap to include a utility operations-related swap. Defines "utility operations-related swap" as one that: (1) is entered into to hedge or mitigate commercial risk; (2) is associated with specified transactions in electric energy or natural gas; and (3) is not a contract, agreement, or transaction based on, derived on, or referencing: an interest rate, credit, equity, or currency asset class; a metal, agricultural commodity, or crude oil or gasoline commodity of any grade, except as used as fuel for electric energy generation; and any other commodity or category of commodities identified for this purpose in a CFTC rule or order adopted in consultation with federal and state regulatory commissions.