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(with respect to each electric utility for which it has rate-
making authority), and each nonregulated electric utility,
shall complete the consideration, and shall make the deter-
mination, referred to in section 111 with respect to each
standard established by paragraphs (11) through (13) 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 each standard established by paragraphs
(11) through (13) of section 111(d), the reference con-
tained in this subsection to the date of enactment of this
Act shall be deemed to be a reference to the date of enact-
ment of such paragraphs (11) through (13).’’.
(3) PRIOR STATE ACTIONS.—
(A) IN
GENERAL.—Section 112 of the
Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2622) is amended by adding at the
end the following:
‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and
(c) of this section shall not apply to the standards estab-
lished by paragraphs (11) through (13) of section 111(d)
in the case of any electric utility in a State if, before the
enactment of this subsection—
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‘‘(1) the State has implemented for such utility
the standard concerned (or a comparable standard);
‘‘(2) the State regulatory authority for such
State or relevant nonregulated electric utility has
conducted a proceeding to consider implementation
of the standard concerned (or a comparable stand-
ard) for such utility; or
‘‘(3) the State legislature has voted on the im-
plementation of such standard (or a comparable
standard) for such utility.’’.
(B) CROSS REFERENCE.—Section 124 of
such Act (16 U.S.C. 2634) is amended by add-
ing the following at the end thereof: ‘‘In the
case of each standard established by paragraphs
(11) through (13) of section 111(d), the ref-
erence contained in this subsection to the date
of enactment of this Act shall be deemed to be
a reference to the date of enactment of such
paragraphs (11) through (13).’’.
SEC. 1252. SMART METERING.
(a) IN GENERAL.—Section 111(d) of the Public Util-
ity Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))
is amended by adding at the end the following:
‘‘(14) TIME-BASED
METERING
AND
COMMU-
NICATIONS.—
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‘‘(A) Not later than 18 months after the
date of enactment of this paragraph, each elec-
tric utility shall offer each of its customer class-
es, and provide individual customers upon cus-
tomer request, a time-based rate schedule under
which the rate charged by the electric utility
varies during different time periods and reflects
the variance, if any, in the utility’s costs of gen-
erating and purchasing electricity at the whole-
sale level. The time-based rate schedule shall
enable the electric consumer to manage energy
use and cost through advanced metering and
communications technology.
‘‘(B) The types of time-based rate sched-
ules that may be offered under the schedule re-
ferred to in subparagraph (A) include, among
others—
‘‘(i) time-of-use pricing whereby elec-
tricity prices are set for a specific time pe-
riod on an advance or forward basis, typi-
cally not changing more often than twice a
year, based on the utility’s cost of gener-
ating and/or purchasing such electricity at
the wholesale level for the benefit of the
consumer. Prices paid for energy consumed
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during these periods shall be pre-estab-
lished and known to consumers in advance
of such consumption, allowing them to
vary their demand and usage in response
to such prices and manage their energy
costs by shifting usage to a lower cost pe-
riod or reducing their consumption overall;
‘‘(ii) critical peak pricing whereby
time-of-use prices are in effect except for
certain peak days, when prices may reflect
the costs of generating and/or purchasing
electricity at the wholesale level and when
consumers may receive additional discounts
for reducing peak period energy consump-
tion;
‘‘(iii) real-time pricing whereby elec-
tricity prices are set for a specific time pe-
riod on an advanced or forward basis, re-
flecting the utility’s cost of generating and/
or purchasing electricity at the wholesale
level, and may change as often as hourly;
and
‘‘(iv) credits for consumers with large
loads who enter into pre-established peak
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load reduction agreements that reduce a
utility’s planned capacity obligations.
‘‘(C) Each electric utility subject to sub-
paragraph (A) shall provide each customer re-
questing a time-based rate with a time-based
meter capable of enabling the utility and cus-
tomer to offer and receive such rate, respec-
tively.
‘‘(D) For purposes of implementing this
paragraph, any reference contained in this sec-
tion to the date of enactment of the Public Util-
ity Regulatory Policies Act of 1978 shall be
deemed to be a reference to the date of enact-
ment of this paragraph.
‘‘(E) In a State that permits third-party
marketers to sell electric energy to retail elec-
tric consumers, such consumers shall be entitled
to receive the same time-based metering and
communications device and service as a retail
electric consumer of the electric utility.
‘‘(F) Notwithstanding subsections (b) and
(c) of section 112, each State regulatory au-
thority shall, not later than 18 months after the
date of enactment of this paragraph conduct an
investigation in accordance with section 115(i)