TVA Reform and Consumer Protection Act

To amend the Federal Power Act and the Tennessee Valley Authority Act of 1933 to reform the Tennessee Valley Authority’s ratemaking authorities, and for other purposes. 1. Short title This Act may be cited as the TVA Reform and Consumer Protection Act 2. Tennessee Valley Authority reforms (a) Federal Power Act amendments (1) Applicability of part Section 201(f) of the Federal Power Act ( 16 U.S.C. 824(f) (other than the Tennessee Valley Authority) instrumentality (2) Certain wheeling authority Section 211 of the Federal Power Act ( 16 U.S.C. 824j (f) Transfer of control of transmitting facilities Nothing in this section authorizes the Commission to require the Tennessee Valley Authority to transfer control or operational control of its transmitting facilities to a Transmission Organization that is designated to provide nondiscriminatory transmission access. . (3) Provisions regarding certain orders requiring interconnection or wheeling Section 212(j) of the Federal Power Act ( 16 U.S.C. 824k(j) (b) Tennessee Valley Authority Act of 1933 amendments (1) Duties of the board of directors Section 2(g)(1)(L) of the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. 831a(g)(1)(L) , subject to approval by the Federal Energy Regulatory Commission (2) Sale of surplus power Section 10 of the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. 831i (A) by striking for a term not exceeding twenty years (B) by striking all contracts made with private companies or individuals for the sale of power, which power is to be resold for a profit, shall contain a provision authorizing the Board to cancel said contract upon five years' notice in writing, if the Board needs said power to supply the demands of States, counties, or municipalities. In order in order (C) by striking at reasonable rates and to make such rules and regulations governing such sale and distribution of such electric power as in its judgment may be just and equitable at just and reasonable rates, and to make rules and regulations governing such sale and distribution of such electric power that are just and reasonable, subject to approval by the Federal Energy Regulatory Commission (D) by striking and in case the purchaser shall fail to comply with any such terms and conditions, or violate any such rules and regulations, said contract may provide that it shall be voidable at the election of the Board subject to approval by the Federal Energy Regulatory Commission (3) Rates when sold for resale at profit Section 12 of the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. 831k as reasonable, just, and fair; and in case of any such sale, if an amount is charged the ultimate consumer which is in excess of the price so deemed to be just, reasonable, and fair by the Board, the contract for such sale between the Board and such distributor of electricity shall be voidable at the election of the Board as just and reasonable, subject to approval by the Federal Energy Regulatory Commission (4) Restriction on contracts for sale or delivery of power Section 15d(a) of the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. 831n–4(a) (A) by striking Unless otherwise specifically authorized by Act of Congress the Corporation shall make no contracts for the sale or delivery of power which would have the effect of making the Corporation or its distributors, directly or indirectly, a source of power supply outside the area for which the Corporation or its distributors were the primary source of power supply on July 1, 1957, and such additional area extending not more than five miles around the periphery of such area as may be necessary to care for the growth of the Corporation and its distributors within said area: Provided, however, 1/2 And provided further, (B) by striking Nothing in this subsection shall prevent the Corporation or its distributors from supplying electric power to any customer within any area in which the Corporation or its distributors had generally established electric service on July 1, 1957, and to which electric service was not being supplied from any other source on the effective date of this Act. (C) by striking Nothing in this subsection shall prevent the Corporation, when economically feasible, from making exchange power arrangements with other power-generating organizations with which the Corporation had such arrangements on July 1, 1957 Nothing in this Act shall prevent the Corporation or its distributors from supplying electric power to any customer within any area, nor prevent the Corporation, when economically feasible, from making exchange power arrangements with other power-generating organizations

Summary: TVA Reform and Consumer Protection Act This bill makes various changes related to the regulation and operation of the Tennessee Valley Authority (TVA), which provides low-cost electricity in seven southeastern states. For example, the bill (1) eliminates certain restrictions on the sale of power into and out of the Tennessee Valley, and (2) expands the Federal Energy Regulatory Commission's oversight of rates and other aspects of the TVA's operations.