I 
114TH CONGRESS 
1ST SESSION H. R. 4232 
To amend the Public Utility Regulatory Policies Act of 1978 to provide 
for the consideration by State regulatory authorities and nonregulated 
electric utilities of whether subsidies should be provided for the deploy-
ment, construction, maintenance, or operation of a customer-side tech-
nology. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 10, 2015 
Mr. POMPEO introduced the following bill; which was referred to the 
Committee on Energy and Commerce 
A BILL 
To amend the Public Utility Regulatory Policies Act of 1978 
to provide for the consideration by State regulatory au-
thorities and nonregulated electric utilities of whether 
subsidies should be provided for the deployment, con-
struction, maintenance, or operation of a customer-side 
technology. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Ratepayer Fairness 
Act of 2015’’. 
VerDate Sep 11 2014 
04:48 Dec 12, 2015
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4232.IH
H4232
emcdonald on DSK67QTVN1PROD with BILLS
SEC. 2. CROSS-SUBSIDIZATION OF CUSTOMER-SIDE TECH-
NOLOGY. 
(a) CONSIDERATION OF IMPACT FROM CROSS-SUB-
SIDIZATION OF CUSTOMER-SIDE TECHNOLOGY.—Section 
111(d) of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2621(d)) is amended by adding at the 
end the following: 
‘‘(20) 
CONSIDERATION
OF
IMPACT
FROM 
CROSS-SUBSIDIZATION
OF
CUSTOMER-SIDE
TECH-
NOLOGY.— 
‘‘(A) 
DEFINITION
OF
CUSTOMER-SIDE 
TECHNOLOGY.—In this paragraph, the term 
‘customer-side technology’ means a device con-
nected to the electricity distribution system— 
‘‘(i) at, or on the customer side of, the 
meter; or 
‘‘(ii) that, if owned or operated by, or 
on behalf of, an electric utility, would oth-
erwise be at, or on the customer side of, 
the meter. 
‘‘(B) CONSIDERATION.—Each State regu-
latory authority (with respect to each electric 
utility for which it has ratemaking authority) 
and each nonregulated electric utility shall con-
sider, to the extent a State regulatory authority 
or nonregulated electric utility allows rates 
VerDate Sep 11 2014 
04:48 Dec 12, 2015
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4232.IH
H4232
emcdonald on DSK67QTVN1PROD with BILLS
charged by any electric utility to include any 
cost, fee, or charge that directly or indirectly 
subsidizes the deployment, construction, main-
tenance, or operation of customer-side tech-
nology, whether subsidizing the deployment, 
construction, maintenance, or operation of a 
customer-side technology would— 
‘‘(i) result in benefits predominately 
enjoyed by only the users of the customer- 
side technology; 
‘‘(ii) shift costs of a customer-side 
technology to electricity consumers that do 
not use the customer-side technology, par-
ticularly in cases in which disparate eco-
nomic or resource conditions exist among 
the electricity consumers cross-subsidizing 
the customer-side technology; 
‘‘(iii) negatively affect resource utiliza-
tion, fuel diversity, grid reliability, or grid 
security; 
‘‘(iv) provide any unfair competitive 
advantage to market the customer-side 
technology, including an analysis of wheth-
er the State regulatory authority or other 
State authority has uncovered any fraudu-
VerDate Sep 11 2014 
04:48 Dec 12, 2015
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4232.IH
H4232
emcdonald on DSK67QTVN1PROD with BILLS
lent customer-side technology marketing 
practices within the State; and 
‘‘(v) be necessary to fulfill an obliga-
tion to serve electric consumers. 
‘‘(C) PUBLIC NOTICE.—At least 90 days 
before the date on which a State regulatory au-
thority or nonregulated electric utility holds a 
proceeding that would consider the cross-sub-
sidization of a customer-side technology, the 
State regulatory authority or nonregulated elec-
tric utility shall make available to the public the 
results of the evaluation conducted under sub-
paragraph (B).’’. 
(b) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112(b) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2622(b)) is amended by adding at the end 
the following: 
‘‘(7)(A) Not later than 1 year after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which it has ratemaking authority), and each non-
regulated electric utility shall, with respect to the 
standard established by paragraph (20) of section 
111(d)— 
VerDate Sep 11 2014 
04:48 Dec 12, 2015
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4232.IH
H4232
emcdonald on DSK67QTVN1PROD with BILLS
‘‘(i) commence the consideration referred 
to in section 111; or 
‘‘(ii) set a hearing date for the consider-
ation. 
‘‘(B) Not later than 2 years after the date of 
enactment of this paragraph, each State regulatory 
authority (with respect to each electric utility for 
which it has ratemaking authority), and each non-
regulated electric utility, shall— 
‘‘(i) complete the consideration required 
under subparagraph (A); and 
‘‘(ii) make the determination referred to in 
section 111 with respect to the standard estab-
lished by paragraph (20) of section 111(d).’’. 
(2) FAILURE TO COMPLY.—Section 112(c) of 
the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2622(c)) is amended by adding at the 
end the following: ‘‘In the case of the standard es-
tablished by paragraph (20) of section 111(d), the 
reference contained in this subsection to the date of 
enactment of this Act shall be deemed to be a ref-
erence to the date of enactment of that paragraph.’’. 
Æ 
VerDate Sep 11 2014 
04:48 Dec 12, 2015
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H4232.IH
H4232
emcdonald on DSK67QTVN1PROD with BILLS