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 ‘‘Energy Markets Fraud 
Prevention and Consumer Protection Act of 2003’’. 
SEC. 2. FRAUDULENT OR MANIPULATIVE PRACTICES. 
(a) UNLAWFUL ACTS.—It shall be unlawful for any 
entity, directly or indirectly, by the use of any means or 
instrumentality of interstate commerce or of the mails to 
use or employ, in the transmission of electric energy in 
interstate commerce, the sale of electric energy at whole-
sale in interstate commerce, the transportation of natural 
gas in interstate commerce, or the sale in interstate com-
merce of natural gas for resale for ultimate public con-
sumption for domestic, commercial, industrial, or any 
other use, any fraudulent, manipulative, or deceptive de-
vice or contrivance in contravention of such rules and reg-
ulations as the Federal Energy Regulatory Commission 
may prescribe as necessary or appropriate in the public 
interest. 
(b) APPLICATION OF FEDERAL POWER ACT TO THIS 
SECTION.—The provisions of section 307 through 309 and 
313 through 317 of the Federal Power Act shall apply 
to violations of this section in the same manner and to
the same extent as such provisions apply to entities sub-
ject to Part II of the Federal Power Act. 
SEC. 3. RULEMAKING ON EXEMPTIONS, WAIVERS, ETC. 
UNDER FEDERAL POWER ACT. 
Part III of the Federal Power Act is amended by in-
serting the following new section after section 319 and by 
redesignating sections 320 and 321 as sections 321 and 
322, respectively: 
‘‘SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, WAIVERS, 
ETC. 
‘‘(a) RULE REQUIRED FOR CERTAIN WAIVERS, EX-
EMPTIONS, ETC.— Not later than 6 months after the en-
actment of this Act, the Commission shall promulgate a 
rule establishing specific criteria for providing an exemp-
tion, waiver, or other reduced or abbreviated form of com-
pliance with the requirements of sections 204, 301, 304, 
and 305 (including any prospective blanket order). Such 
criteria shall be sufficient to insure that any such action 
taken by the Commission will be consistent with the pur-
poses of such requirements and will otherwise protect the 
public interest. 
‘‘(b) MORATORIUM ON CERTAIN WAIVERS, EXEMP-
TIONS, ETC.—After the date of enactment of this section, 
the Commission may not issue, adopt, order, approve, or 
promulgate any exemption, waiver, or other reduced or ab-
breviated form of compliance with the requirements of sec-
tion 204, 301, 304, or 305 (including any prospective 
blanket order) until after the rule promulgated under sub-
section (a) has taken effect. 
‘‘(c) PREVIOUS FERC ACTION.—The Commission 
shall undertake a review, by rule or order, of each exemp-
tion, waiver, or other reduced or abbreviated form of com-
pliance described in subsection (a) that was taken before 
the date of enactment of this section. No such action may 
continue in force and effect after the date 18 months after 
the date of enactment of this section unless the Commis-
sion finds that such action complies with the rule under 
subsection (a). 
‘‘(d) EXEMPTION UNDER 204(f) NOT APPLICA-
BLE.—For purposes of this section, in applying section 
204, the provisions of section 204(f) shall not apply.’’. 
SEC. 4. REPORTING REQUIREMENTS IN ELECTRIC POWER 
SALES AND TRANSMISSION. 
(a) AUDIT TRAILS.—Section 304 of the Federal 
Power Act is amended by adding the following new sub-
section at the end thereof: 
‘‘(c)(1) The Commission shall, by rule or order, re-
quire each person or other entity engaged in the trans-
mission of electric energy in interstate commerce or the 
sale of electric energy at wholesale in interstate commerce,
and each broker, dealer, and power marketer involved in 
any such transmission or sale, to maintain, and periodi-
cally submit to the Commission, such records, in electronic 
form, of each transaction relating to such transmission or 
sale as may be necessary to determine whether any person 
has employed any fraudulent, manipulative, or deceptive 
device or contrivance in contravention of rules promul-
gated by the Commission. 
‘‘(2) Section 201(f) shall not limit the application of 
this subsection.’’. 
(b) NATURAL GAS.—Section 8 of the Natural Gas 
Act is amended by adding the following new subsection 
at the end thereof: 
‘‘(d) The Commission shall, by rule or order, require 
each person or other entity engaged in the transportation 
of natural gas in interstate commerce, or the sale in inter-
state commerce of natural gas for resale for ultimate pub-
lic consumption for domestic, commercial, industrial, or 
any other use, and each broker, dealer, and power mar-
keter involved in any such transportation or sale, to main-
tain, and periodically submit to the Commission, such 
records, in electronic form, of each transaction relating to 
such transmission or sale as may be necessary to deter-
mine whether any person has employed any fraudulent,
manipulative, or deceptive device or contrivance in con-
travention of rules promulgated by the Commission.’’.
SEC. 5. TRANSPARENCY. 
(a) DEFINITION.—As used in this section the term 
‘‘electric power or natural gas information processor’’ 
means any person engaged in the business of—
(1) collecting, processing, or preparing for dis-
tribution or publication, or assisting, participating 
in, or coordinating the distribution or publication of, 
information with respect to transactions in or 
quotations involving the purchase or sale of electric 
power, natural gas, the transmission of electric en-
ergy, or the transportation of natural gas, or 
(2) distributing or publishing (whether by 
means of a ticker tape, a communications network, 
a terminal display device, or otherwise) on a current 
and continuing basis, information with respect to 
such transactions or quotations. 
The term does not include any bona fide newspaper, news 
magazine, or business or financial publication of general 
and regular circulation, any self-regulatory organization, 
any bank, broker, dealer, building and loan, savings and 
loan, or homestead association, or cooperative bank, if 
such bank, broker, dealer, association, or cooperative bank 
would be deemed to be an electric power or natural gas
information processor solely by reason of functions per-
formed by such institutions as part of customary banking, 
brokerage, dealing, association, or cooperative bank activi-
ties, or any common carrier, as defined in section 3 of 
the Communications Act of 1934, subject to the jurisdic-
tion of the Federal Communications Commission or a 
State commission, as defined in section 3 of that Act, un-
less the Commission determines that such carrier is en-
gaged in the business of collecting, processing, or pre-
paring for distribution or publication, information with re-
spect to transactions in or quotations involving the pur-
chase or sale of electric power, natural gas, the trans-
mission of electric energy, or the transportation of natural 
gas. 
(b) PROHIBITION.—No electric power or natural gas 
information processor may make use of the mails or any 
means or instrumentality of interstate commerce—
(1) to collect, process, distribute, publish, or 
prepare for distribution or publication any informa-
tion with respect to quotations for, or transactions 
involving the purchase or sale of electric power, nat-
ural gas, the transmission of electric energy, or the 
transportation of natural gas, or 
(2) to assist, participate in, or coordinate the 
distribution or publication of such information in
contravention of such rules and regulations as the 
Federal Energy Regulatory Commission shall pre-
scribe as necessary or appropriate in the public in-
terest to 
(A) prevent the use, distribution, or publication 
of fraudulent, deceptive, or manipulative information 
with respect to quotations for and transactions in-
volving the purchase or sale of electric power, nat-
ural gas, the transmission of electric energy, or the 
transportation of natural gas; 
(B) assure the prompt, accurate, reliable, and 
fair collection, processing, distribution, and publica-
tion of information with respect to quotations for 
and transactions involving the purchase or sale of 
electric power, natural gas, the transmission of elec-
tric energy, or the transportation of natural gas, and 
the fairness and usefulness of the form and content 
of such information; 
(C) assure that all such information processors 
may, for purposes of distribution and publication, 
obtain on fair and reasonable terms such informa-
tion with respect to quotations for and transactions 
involving the purchase or sale of electric power, nat-
ural gas, the transmission of electric energy, or the 
transportation of natural gas as is collected, proc-
essed, or prepared for distribution or publication by 
any exclusive processor of such information acting in 
such capacity; 
(D) assure that, subject to such limitations as 
the Commission, by rule, may impose as necessary 
or appropriate for the maintenance of fair and or-
derly markets, all persons may obtain on terms 
which are not unreasonably discriminatory such in-
formation with respect to quotations for and trans-
actions involving the purchase or sale of electric 
power, natural gas, the transmission of electric en-
ergy, or the transportation of natural gas as is pub-
lished or distributed by any electric power or natural 
gas information processor; 
(E) assure that all electricity and natural gas 
electronic communication networks transmit and di-
rect orders for the purchase and sale of electricity or 
natural gas in a manner consistent with the estab-
lishment and operation of an efficient, fair, and or-
derly market system for electricity and natural gas; 
and 
(F) assure equal regulation of all markets in-
volving the purchase or sale of electric power, nat-
ural gas, the transmission of electric energy, or the 
transportation of natural gas and all persons effect-
ing transactions involving the purchase or sale of 
electric power, natural gas, the transmission of elec-
tric energy, or the transportation of natural gas. 
(c) RELATED COMMODITIES.—For purposes of this 
section, the phrase ‘‘purchase or sale of electric power, 
natural gas, the transmission of electric energy, or the 
transportation of natural gas’’ includes the purchase or 
sale of any commodity (as defined in the Commodities Ex-
change Act) relating to any such purchase or sale if such 
commodity is excluded from regulation under the Com-
modities Exchange Act pursuant to section 2 of that Act. 
(d) PROHIBITION.—No person who owns, controls, or 
is under the control or ownership of a public utility, a nat-
ural gas company, or a public utility holding company may 
own, control, or operate any electronic computer network 
or other mulitateral trading facility utilized to trade elec-
tricity or natural gas. 
SEC. 6. PENALTIES. 
(a) CRIMINAL PENALTIES.—Section 316 of the Fed-
eral Power Act (16 U.S.C. 825o(c)) is amended as follows: 
(1) By striking ‘‘$5,000’’ in subsection (a) and 
inserting 
‘‘$5,000,000 
for 
an 
individual 
and 
$25,000,000 for any other defendant’’
(2) By striking ‘‘$500’’ in subsection (b) and 
inserting ‘‘$1,000,000’’.
(3) By striking subsection (c).
(b) CIVIL PENALTIES.—Section 316A of the Federal 
Power Act (16 U.S.C. 825o–1) is amended as follows: 
(1) By striking ‘‘section 211, 212, 213, or 214’’ 
each place it appears and inserting ‘‘Part II’’. 
(2) By striking ‘‘$10,000 for each day that 
such violation continues’’ and inserting ‘‘the greater 
of $1,000,000 or three times the profit made or gain 
or loss avoided by reason of such violation’’. 
(3) By adding the following at the end thereof: 
‘‘(c) AUTHORITY OF A COURT TO PROHIBIT PER-
SONS FROM CERTAIN ACTIVITIES.—In any proceeding 
under this section, the court may censure, place limita-
tions on the activities, functions, or operations of, suspend 
or revoke the ability of any entity (without regard to sec-
tion 201(f)) to participate in the transmission of electric 
energy in interstate commerce or the sale of electric en-
ergy at wholesale in interstate commerce if it finds that 
such censure, placing of limitations, suspension, or revoca-
tion is in the public interest and that one or more of the 
following applies to such entity: 
‘‘(1) Such entity has willfully made or caused to 
be made in any application or report required to be 
filed with the Commission or with any other appro-
priate regulatory agency, or in any proceeding before
the Commission, any statement which was at the 
time and in the light of the circumstances under 
which it was made false or misleading with respect 
to any material fact, or has omitted to state in any 
such application or report any material fact which is 
required to be stated therein. 
‘‘(2) Such entity has been convicted of any fel-
ony or misdemeanor or of a substantially equivalent 
crime by a foreign court of competent jurisdiction 
which the court finds—
‘‘(A) involves the purchase or sale of elec-
tricity, the taking of a false oath, the making 
of a false report, bribery, perjury, burglary, any 
substantially equivalent activity however de-
nominated by the laws of the relevant foreign 
government, or conspiracy to commit any such 
offense; 
‘‘(B) arises out of the conduct of the busi-
ness of transmitting electric energy in interstate 
commerce or selling or purchasing electric en-
ergy at wholesale in interstate commerce; 
‘‘(C) involves the larceny, theft, robbery, 
extortion, forgery, counterfeiting, fraudulent 
concealment, embezzlement, fraudulent conver-
sion, or misappropriation of funds, or securities,
or substantially equivalent activity however de-
nominated by the laws of the relevant foreign 
government; or 
‘‘(D) involves the violation of section 152, 
1341, 1342, or 1343 or chapter 25 or 47 of 
title 18, United States Code, or a violation of 
a substantially equivalent foreign statute. 
‘‘(3) Such entity is permanently or temporarily 
enjoined by order, judgment, or decree of any court 
of competent jurisdiction from acting as an invest-
ment adviser, underwriter, broker, dealer, municipal 
securities dealer, government securities broker, gov-
ernment securities dealer, transfer agent, foreign 
person performing a function substantially equiva-
lent to any of the above, or entity or person required 
to be registered under the Commodity Exchange Act 
or any substantially equivalent foreign statute or 
regulation, or as an affiliated person or employee of 
any investment company, bank, insurance company, 
foreign entity substantially equivalent to any of the 
above, or entity or person required to be registered 
under the Commodity Exchange Act or any substan-
tially equivalent foreign statute or regulation, or 
from engaging in or continuing any conduct or prac-
tice in connection with any such activity, or in con-
nection with the purchase or sale of any security. 
‘‘(4) Such entity has willfully violated any pro-
vision of this Act. 
‘‘(5) Such entity has willfully aided, abetted, 
counseled, commanded, induced, or procured the vio-
lation by any other person of any provision of this 
Act, or has failed reasonably to supervise, with a 
view to preventing violations of the provisions of this 
Act, another person who commits such a violation, 
if such other person is subject to his supervision. 
For the purposes of this paragraph no person shall 
be deemed to have failed reasonably to supervise any 
other person, if—
‘‘(A) there have been established proce-
dures, and a system for applying such proce-
dures, which would reasonably be expected to 
prevent and detect, insofar as practicable, any 
such violation by such other person, and 
‘‘(B) such person has reasonably dis-
charged the duties and obligations incumbent 
upon him by reason of such procedures and sys-
tem without reasonable cause to believe that 
such procedures and system were not being 
complied with.
ket or any board of trade, or has been found, 
by a foreign regulatory authority, to have failed 
reasonably to supervise, with a view to pre-
venting violations of such statutory provisions, 
rules, and regulations, another person who com-
mits such a violation, if such other person is 
subject to his supervision. 
‘‘(7) Such entity is subject to any final order of 
a State commission (or any agency or officer per-
forming like functions), State authority that super-
vises or examines banks, savings associations, or 
credit unions, State insurance commission (or any 
agency or office performing like functions), an ap-
propriate Federal banking agency (as defined in sec-
tion 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813(q))), or the National Credit Union Ad-
ministration, that— 
‘‘(A) bars such person from association 
with an entity regulated by such commission, 
authority, agency, or officer, or from engaging 
in the business of securities, insurance, bank-
ing, savings association activities, or credit 
union activities; or
‘‘(B) constitutes a final order based on vio-
lations of any laws or regulations that prohibit 
fraudulent, manipulative, or deceptive conduct. 
‘‘(8) Such entity is subject to statutory dis-
qualification within the meaning of section 3(a)(39) 
of the Securities Exchange Act of 1934.’’. 
(c) NATURAL GAS ACT PENALTIES.—Section 21 of 
the Natural Gas Act is amended by adding the following 
new subsection at the end thereof: 
‘‘(c) AUTHORITY OF A COURT TO PROHIBIT PER-
SONS FROM CERTAIN ACTIVITIES.—In any proceeding 
under this section, the court may censure, place limita-
tions on the activities, functions, or operations of, suspend 
or revoke the ability of any entity (without regard to sec-
tion 201(f)) to participate in the transportation of natural 
gas in interstate commerce, or the sale in interstate com-
merce of natural gas for resale for ultimate public con-
sumption for domestic, commercial, industrial, or any 
other use if it finds that such censure, placing of limita-
tions, suspension, or revocation is in the public interest 
and that one or more of the following applies to such enti-
ty: 
‘‘(1) Such entity has willfully made or caused to 
be made in any application or report required to be 
filed with the Commission or with any other appro-
priate regulatory agency, or in any proceeding before 
the Commission, any statement which was at the 
time and in the light of the circumstances under 
which it was made false or misleading with respect 
to any material fact, or has omitted to state in any 
such application or report any material fact which is 
required to be stated therein. 
‘‘(2) Such entity has been convicted of any fel-
ony or misdemeanor or of a substantially equivalent 
crime by a foreign court of competent jurisdiction 
which the court finds—
‘‘(A) involves the purchase or sale of nat-
ural gas, the taking of a false oath, the making 
of a false report, bribery, perjury, burglary, any 
substantially equivalent activity however de-
nominated by the laws of the relevant foreign 
government, or conspiracy to commit any such 
offense; 
‘‘(B) arises out of the conduct of the busi-
ness of transmitting natural gas in interstate 
commerce, or the selling in interstate commerce 
of natural gas for resale for ultimate public 
consumption for domestic, commercial, indus-
trial, or any other use;
‘‘(C) involves the larceny, theft, robbery, 
extortion, forgery, counterfeiting, fraudulent 
concealment, embezzlement, fraudulent conver-
sion, or misappropriation of funds, or securities, 
or substantially equivalent activity however de-
nominated by the laws of the relevant foreign 
government; or 
‘‘(D) involves the violation of section 152, 
1341, 1342, or 1343 or chapter 25 or 47 of 
title 18, United States Code, or a violation of 
a substantially equivalent foreign statute. 
‘‘(3) Such entity is permanently or temporarily 
enjoined by order, judgment, or decree of any court 
of competent jurisdiction from acting as an invest-
ment adviser, underwriter, broker, dealer, municipal 
securities dealer, government securities broker, gov-
ernment securities dealer, transfer agent, foreign 
person performing a function substantially equiva-
lent to any of the above, or entity or person required 
to be registered under the Commodity Exchange Act 
or any substantially equivalent foreign statute or 
regulation, or as an affiliated person or employee of 
any investment company, bank, insurance company, 
foreign entity substantially equivalent to any of the 
above, or entity or person required to be registered
under the Commodity Exchange Act or any substan-
tially equivalent foreign statute or regulation, or 
from engaging in or continuing any conduct or prac-
tice in connection with any such activity, or in con-
nection with the purchase or sale of any security. 
‘‘(4) Such entity has willfully violated any pro-
vision of this Act. 
‘‘(5) Such entity has willfully aided, abetted, 
counseled, commanded, induced, or procured the vio-
lation by any other person of any provision of this 
Act, or has failed reasonably to supervise, with a 
view to preventing violations of the provisions of this 
Act, another person who commits such a violation, 
if such other person is subject to his supervision. 
For the purposes of this paragraph no person shall 
be deemed to have failed reasonably to supervise any 
other person, if—
‘‘(A) there have been established proce-
dures, and a system for applying such proce-
dures, which would reasonably be expected to 
prevent and detect, insofar as practicable, any 
such violation by such other person, and 
‘‘(B) such person has reasonably dis-
charged the duties and obligations incumbent 
upon him by reason of such procedures and sys-
tem without reasonable cause to believe that 
such procedures and system were not being 
complied with. 
‘‘(6) Such entity has been found by a foreign fi-
nancial or energy regulatory authority to have—
‘‘(A) made or caused to be made in any 
application or report required to be filed with a 
foreign regulatory authority, or in any pro-
ceeding before a foreign financial or energy reg-
ulatory authority, any statement that was at 
the time and in the light of the circumstances 
under which it was made false or misleading 
with respect to any material fact, or has omit-
ted to state in any application or report to the 
foreign regulatory authority any material fact 
that is required to be stated therein; 
‘‘(B) violated any foreign statute or regula-
tion regarding the transmission or sale of elec-
tricity or natural gas; 
‘‘(C) 
aided, 
abetted, 
counseled, 
com-
manded, induced, or procured the violation by 
any person of any provision of any statutory 
provisions enacted by a foreign government, or 
rules or regulations thereunder, empowering a 
foreign regulatory authority regarding trans-
actions in electricity or natural gas, or con-
tracts of sale of electricity or natural gas, trad-
ed on or subject to the rules of a contract mar-
ket or any board of trade, or has been found, 
by a foreign regulatory authority, to have failed 
reasonably to supervise, with a view to pre-
venting violations of such statutory provisions, 
rules, and regulations, another person who com-
mits such a violation, if such other person is 
subject to his supervision. 
‘‘(7) Such entity is subject to any final order of 
a State commission (or any agency or officer per-
forming like functions), State authority that super-
vises or examines banks, savings associations, or 
credit unions, State insurance commission (or any 
agency or office performing like functions), an ap-
propriate Federal banking agency (as defined in sec-
tion 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813(q))), or the National Credit Union Ad-
ministration, that— 
‘‘(A) bars such person from association 
with an entity regulated by such commission, 
authority, agency, or officer, or from engaging 
in the business of securities, insurance, bank-
ing, savings association activities, or credit 
union activities; or 
‘‘(B) constitutes a final order based on vio-
lations of any laws or regulations that prohibit 
fraudulent, manipulative, or deceptive conduct. 
‘‘(8) Such entity is subject to statutory dis-
qualification within the meaning of section 3(a)(39) 
of the Securities Exchange Act of 1934.’’. 
SEC. 7. REVIEW OF PUHCA EXEMPTIONS. 
Not later than 12 months after the enactment of this 
Act the Securities and Exchange Commission shall review 
each exemption granted to any person under section 3(a) 
of the Public Utility Holding Company Act of 1935 and 
shall review the action of persons operating pursuant to 
a claim of exempt status under section 3 to determine if 
such exemptions and claims are consistent with the re-
quirements of such section 3(a) and whether or not such 
exemptions or claims of exemption should continue in 
force and effect. 
SEC. 8. REVIEW OF ACCOUNTING FOR CONTRACTS IN-
VOLVED IN ENERGY TRADING. 
Not later than 12 months after the enactment of this 
Act, the Financial Accounting Standards Board shall sub-
mit to the Congress a report of the results of its review 
of accounting for contracts in energy trading and risk
management activities. The review and report shall in-
clude, among other issues, the use of mark-to-market ac-
counting and when gains and losses should be recognized, 
with a view toward improving the transparency of energy 
trading activities for the benefit of investors, consumers, 
and the integrity of these markets. 
SEC. 9. PROTECTION OF FERC REGULATED SUBSIDIARIES. 
Section 205 of the Federal Power Act is amended by 
adding after subsection (f) the following new subsection: 
‘‘(g) RULES AND PROCEDURES TO PROTECT CON-
SUMERS OF PUBLIC UTILITIES.—Not later than 9 months 
after the date of enactment of this Act, the Commission 
shall adopt rules and procedures for the protection of elec-
tric consumers from self-dealing, interaffiliate abuse, and 
other harmful actions taken by persons owning or control-
ling public utilities. Such rules shall ensure that no asset 
of a public utility company shall be used as collateral for 
indebtedness incurred by the holding company of, and any 
affiliate of, such public utility company, and no public util-
ity shall acquire or own any securities of the holding com-
pany or other affiliates of the holding company unless the 
Commission has determined that such acquisition or own-
ership is consistent with the public interest and the protec-
tion of consumers of such public utility.’’.
SEC. 10. REFUNDS UNDER THE FEDERAL POWER ACT. 
Section 206(b) of the Federal Power Act is amended 
as follows: 
(1) By amending the first sentence to read as 
follows: ‘‘In any proceeding under this section, the 
refund effective date shall be the date of the filing 
of a complaint or the date of the Commission motion 
initiating the proceeding, except that in the case of 
a complaint with regard to market-based rates, the 
Commission may establish an earlier refund effective 
date.’’. 
(2) By striking the second and third sentences. 
(3) By striking out ‘‘the refund effective date or 
by’’ and ‘‘, whichever is earlier,’’ in the fifth sen-
tence. 
(4) In the seventh sentence by striking 
‘‘through a date fifteen months after such refund ef-
fective date’’ and insert ‘‘and prior to the conclusion 
of the proceeding’’ and by striking the proviso. 
SEC. 11. ACCOUNTS AND REPORTS. 
Section 318 of the Federal Power Act is amended by 
adding the following at the end thereof: ‘‘This section shall 
not apply to sections 301 and 304 of this Act.’’. 
SEC. 12. MARKET-BASED RATES. 
Section 205 of the Federal Power Act is amended by 
adding the following new subsection at the end thereof:
‘‘(g) For each public utility granted the authority by 
the Commission to sell electric energy at market-based 
rates, the Commission shall review the activities and char-
acteristics of such utility not less frequently than annually 
to determine whether such rates are just and reasonable. 
Each such utility shall notify the Commission promptly 
of any change in the activities and characteristics relied 
upon by the Commission in granting such public utility 
the authority to sell electric energy at market-based rates. 
If the Commission finds that—
‘‘(1) a rate charged by a public utility author-
ized to sell electric energy at market-based rates is 
unjust, unreasonable, unduly discriminatory or pref-
erential, 
‘‘(2) the public utility has intentionally engaged 
in an activity that violates any other rule, tariff, or 
order of the Commission, or 
‘‘(3) the public utility has violated section 2 of 
the Energy Markets Fraud Prevention and Con-
sumer Protection Act of 2003, 
the Commission shall issue an order immediately modi-
fying or revoking the authority of that public utility to 
sell electric energy at market-based rates.’’.
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