I
106TH CONGRESS
1ST SESSION
H. R. 2887
To amend the Federal Power Act to ensure that certain Federal power
customers are provided protection by the Federal Energy Regulatory
Commission, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 21, 1999
Mr. BAKER introduced the following bill; which was referred to the Committee
on Commerce, and in addition to the Committee on Transportation and
Infrastructure, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To amend the Federal Power Act to ensure that certain
Federal power customers are provided protection by the
Federal Energy Regulatory Commission, and for other
purposes.
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 ‘‘TVA Customer Protec-
tion Act of 1999’’.
SEC. 2. INCLUSION IN DEFINITION OF PUBLIC UTILITY.
(a) IN GENERAL.—Section 201(e) of the Federal
Power Act (16 U.S.C. 824(e)) is amended by inserting be-
fore the period at the end the following: ‘‘, and includes
the Tennessee Valley Authority’’.
(b) CONFORMING AMENDMENT.—Section 201(f) of
the Federal Power Act (16 U.S.C. 824(f)) is amended by
striking ‘‘foregoing, or any corporation’’ and inserting
‘‘foregoing (other than the Tennessee Valley Authority) or
any corporation’’.
SEC. 3. DISPOSITION OF PROPERTY.
Section 203 of the Federal Power Act (16 U.S.C.
824b) is amended by adding at the end the following:
‘‘(c) TVA EXCEPTION.—This section does not apply
to a disposition of the whole or any part of the facilities
of the Tennessee Valley Authority if—
‘‘(1) the Tennessee Valley Authority discloses to
the Commission (on a form, and to the extent, that
the Commission shall prescribe by regulation) the
sale, lease, or other disposition of any part of its fa-
cilities that—
‘‘(A) is subject to the jurisdiction of the
Commission under this Part; and
‘‘(B) has a value of more than $50,000;
and
‘‘(2) all proceeds of the sale, lease, or other dis-
position under paragraph (1) are applied by the
Tennessee Valley Authority to the reduction of debt
of the Tennessee Valley Authority.’’.
SEC. 4. FOREIGN OPERATIONS; PROTECTIONS.
Section 208 of the Federal Power Act (16 U.S.C.
824g) is amended by adding at the end the following:
‘‘(c) TENNESSEE VALLEY AUTHORITY.—
‘‘(1) LIMIT ON CHARGES.—
‘‘(A) NO
AUTHORIZATION
OR
PERMIT.—
The Commission shall issue no order under this
Act that has the effect of authorizing or permit-
ting the Tennessee Valley Authority to make,
demand, or receive any rate or charge, or im-
pose any rule or regulation pertaining to a rate
or charge, that includes any costs incurred by
or for the Tennessee Valley Authority in the
conduct of any activities or operations outside
the United States.
‘‘(B) UNLAWFUL RATE.—
‘‘(i) IN GENERAL.—Any rate, charge,
rule, or regulation described in subpara-
graph (A) shall be deemed for the purposes
of this Act to be unjust, unreasonable, and
unlawful.
‘‘(ii) NO
LIMITATION
ON
AUTHOR-
ITY.—Clause (i) does not limit the author-
ity of the Commission under any other pro-
vision of law to regulate and establish just
and reasonable rates and charges for the
Tennessee Valley Authority.
‘‘(2) ANNUAL REPORT.—The Tennessee Valley
Authority shall annually—
‘‘(A) prepare and file with the Commission,
in a form that the Commission shall prescribe
by regulation, a report setting forth in detail
any activities or operations engaged in outside
the United States by or on behalf of the Ten-
nessee Valley Authority; and
‘‘(B) certify to the Commission that the
Tennessee Valley Authority has neither recov-
ered nor sought to recover the costs of activities
or operations engaged in outside the United
States by or on behalf of the Tennessee Valley
Authority in any rate, charge, rule, or regula-
tion on file with the Commission.’’.
SEC. 5. TVA POWER SALES AND PROPERTY VALUATION.
(a) IN GENERAL.—Part II of the Federal Power Act
(16 U.S.C. 824 et seq.) is amended by adding at the end
the following:
‘‘SEC. 215. TVA POWER SALES.
‘‘(a) IN GENERAL.—The Tennessee Valley Authority
shall not sell electric power to a retail customer that will
consume the power within the area that, on the date of
enactment of this section, is assigned by law as the dis-
tributor service area, unless—
‘‘(1) the customer (or predecessor in interest to
the customer) was purchasing electric power directly
from the Tennessee Valley Authority as a retail cus-
tomer on that date;
‘‘(2) the distributor is purchasing firm power
from the Tennessee Valley Authority in an amount
that is equal to not more than 50 percent of the
total retail sales of the distributor; or
‘‘(3) the distributor agrees that the Tennessee
Valley Authority may sell power to the customer.
‘‘(b) RETAIL SALES.—Notwithstanding any other
provision of law, the rates, terms, and conditions of retail
sales of electric power by the Tennessee Valley Authority
that are not prohibited by subsection (a) shall be subject
to regulation under State law applicable to public utilities
in the manner and to the extent that a State commission
or other regulatory authority determines to be appro-
priate.
‘‘(c) ASSURANCE OF ADEQUATE ELECTRIC GENERA-
TION CAPACITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, after the date of enactment of this
section, the Tennessee Valley Authority shall not
construct or acquire by any means electric genera-
tion capacity, or sell the output of electric generation
capacity constructed or acquired after that date, un-
less the Commission has issued to the Tennessee
Valley Authority a certificate of public convenience
and necessity authorizing the construction or acqui-
sition of electric generation capacity.
‘‘(2) CRITERIA
FOR
ISSUANCE
OF
CERTIFI-
CATE.—The Commission shall issue a certificate of
public convenience and necessity under paragraph
(1) only if the Commission finds, after affording an
opportunity for an evidentiary hearing, that—
‘‘(A) the reserve power margin of the Ten-
nessee Valley Authority for the area within
which the Tennessee Valley Authority is per-
mitted by law to be a source of supply—
‘‘(i) is less than 15 percent; and
‘‘(ii) is expected to remain less than
15 percent for a period of at least 1 year
unless new capacity is constructed or ac-
quired;
‘‘(B) the Energy Information Administra-
tion has submitted to the Commission, with re-
spect to issuance of the certificate of public con-
venience and necessity, a determination that—
‘‘(i) there is no commercially reason-
able option for the purchase of power from
the wholesale power market to meet the
needs of the area within which the Ten-
nessee Valley Authority is permitted by law
to be a source of supply; and
‘‘(ii) the proposed construction or ac-
quisition is the only commercially reason-
able means to meet the firm contractual
obligations of the Tennessee Valley Au-
thority with respect to the area within
which the Tennessee Valley Authority is
permitted by law to be a source of supply;
‘‘(C) the electric generation capacity or the
output of the capacity proposed to be author-
ized will not make the Tennessee Valley Au-
thority a direct or indirect source of supply in
any area with respect to which the Authority is
prohibited by law from being, directly or indi-
rectly, a source of supply; and
‘‘(D) the electric generation capacity pro-
posed to be authorized is completely subscribed
in advance for use by customers only within the
area for which the Tennessee Valley Authority
or distributors of the Authority were the pri-
mary source of power supply on July 1, 1957.
‘‘SEC. 216. VALUATION OF CERTAIN TVA PROPERTY.
‘‘(a) EVIDENTIARY HEARING.—Not later than 120
days after the date of enactment of this section, notwith-
standing any other provision of law, the Commission shall
commence a hearing on the record for the purpose of de-
termining the value of the property owned by the Ten-
nessee Valley Authority—
‘‘(1) that is used and useful; and
‘‘(2) the cost of which was prudently incurred
in providing electric service, as of July 1, 1999, to—
‘‘(A) the distributors of the Authority; and
‘‘(B) the customers that directly purchased
power from the Authority.
‘‘(b) PROCEDURES AND STANDARDS.—In making the
determination under subsection (a), the Commission shall
use, to the maximum extent practicable, the procedures
and standards that the Commission uses in making simi-
lar determinations with respect to public utilities.
‘‘(c) TIMING OF FINAL ORDER.—The Commission
shall issue a final order with respect to the determination
under subsection (a)—
‘‘(1) not later than 1 year after the date of
commencement of the hearing under subsection (a);
or
‘‘(2) not later than a date determined by the
Commission by an order supported by the record.
‘‘(d) TIMING OF ORDER AWARDING RECOVERY OF
STRANDED COSTS.—The Commission may issue an order
awarding recovery to the Tennessee Valley Authority of
costs rendered uneconomic by competition not earlier than
the date on which the Commission issues a final order with
respect to the determination under subsection (a).’’.
(b) TRANSITION.—Not later than 180 days after the
date of enactment of this Act, the Tennessee Valley Au-
thority shall file all rates and charges for the transmission
or sale of electric energy and the classifications, practices,
and regulations affecting those rates and charges, together
with all contracts that in any manner affect or relate to
contracts that are required to be filed under Part II of
the Federal Power Act (16 U.S.C. 824 et seq.) (as amend-
ed by subsection (a)) and that are in effect as of the date
of enactment of this Act.
SEC. 6. FILING AND FULL DISCLOSURE OF TVA DOCU-
MENTS.
Part III of the Federal Power Act (16 U.S.C. 825
et seq.) is amended—
(1) by redesignating sections 319 through 321
as sections 320 through 322, respectively; and
(2) by inserting after section 318 the following:
‘‘SEC. 319. FILING AND FULL DISCLOSURE OF TVA DOCU-
MENTS.
‘‘(a) IN GENERAL.—The Tennessee Valley Authority
shall file and disclose the same documents and other infor-
mation that other public utilities are required to file under
this Act, as the Commission shall require by regulation.
‘‘(b) REGULATION.—
‘‘(1) TIMING.—The regulation under subsection
(a) shall be promulgated not later than 1 year after
the date of enactment of this section.
‘‘(2) CONSIDERATIONS.—In promulgating the
regulation under subsection (a), the Commission
shall take into consideration the practices of the
Commission with respect to public utilities other
than the Tennessee Valley Authority.’’.
SEC. 7. APPLICABILITY OF THE ANTITRUST LAWS.
The Tennessee Valley Authority Act of 1933 (16
U.S.C. 831 et seq.) is amended by inserting after section
16 the following:
‘‘SEC. 17. APPLICABILITY OF THE ANTITRUST LAWS.
‘‘(a) DEFINITION OF ANTITRUST LAWS.—In this sec-
tion, the term ‘antitrust laws’ means—
‘‘(1) an antitrust law (within the meaning of
section (1) of the Clayton Act (15 U.S.C. 12));
‘‘(2) the Act of June 19, 1936 (commonly
known as the ‘Robinson Patman Act’) (49 Stat.
1526, chapter 323; 15 U.S.C. 13 et seq.); and
‘‘(3) section 5 of the Federal Trade Commis-
sion Act (15 U.S.C. 45), to the extent that the sec-
tion relates to unfair methods of competition.
‘‘(b) APPLICABILITY.—Nothing in this Act modifies,
impairs, or supersedes the antitrust laws.
‘‘(c) ANTITRUST LAWS.—
‘‘(1) TVA DEEMED A PERSON.—The Tennessee
Valley Authority shall be deemed to be a person, and
not government, for purposes of the antitrust laws.
‘‘(2) 
APPLICABILITY.—Notwithstanding 
any
other provision of law, the antitrust laws (including
the availability of any remedy for a violation of an
antitrust law) shall apply to the Tennessee Valley
Authority notwithstanding any determination that
the Tennessee Valley Authority is a corporate agen-
cy or instrumentality of the United States or is oth-
erwise engaged in governmental functions.’’.
SEC. 8. SAVINGS PROVISION.
(a) DEFINITION OF TVA DISTRIBUTOR.—In this sec-
tion, the term ‘‘TVA distributor’’ means a cooperative or-
ganization or publicly owned electric power system that,
on January 2, 1998, purchased electric power at wholesale
from the Tennessee Valley Authority under an all-require-
ments power contract.
(b) EFFECT OF ACT.—Nothing in this Act or any
amendment made by this Act—
(1) subjects any TVA distributor to regulation
by the Federal Energy Regulatory Commission; or
(2) abrogates or affects any law in effect on the
date of enactment of this Act that applies to a TVA
distributor.
SEC. 9. PROVISION OF CONSTRUCTION EQUIPMENT, CON-
TRACTING, AND ENGINEERING SERVICES.
Section 4 of the Tennessee Valley Authority Act of
1933 (16 U.S.C. 831c) is amended by adding at the end
the following:
‘‘(m) PROVISION
OF CONSTRUCTION EQUIPMENT,
CONTRACTING, AND ENGINEERING SERVICES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this Act, except as provided in this sub-
section, the Corporation shall not have power to—
‘‘(A) rent or sell construction equipment;
‘‘(B) provide a construction equipment
maintenance or repair service;
‘‘(C) perform contract construction work;
or
‘‘(D) provide a construction engineering
service;
to any private or public entity.
‘‘(2) ELECTRICAL
CONTRACTORS.—The Cor-
poration may provide equipment or a service de-
scribed in subparagraph (1) to a private contractor
that is engaged in electrical utility work on an elec-
trical utility project of the Corporation.
‘‘(3) CUSTOMERS, DISTRIBUTORS, AND GOVERN-
MENTAL ENTITIES.—The Corporation may provide
equipment or a service described in subparagraph
(1) to—
‘‘(A) a power customer served directly by
the Corporation;
‘‘(B) a distributor of Corporation power; or
‘‘(C) a Federal, State, or local government
entity;
that is engaged in work specifically related to an
electrical utility project of the Corporation.
‘‘(4) USED CONSTRUCTION EQUIPMENT.—
‘‘(A) DEFINITION OF USED CONSTRUCTION
EQUIPMENT.—In this paragraph, the term
‘used construction equipment’ means construc-
tion equipment that has been in service for
more than 2,500 hours.
‘‘(B) DISPOSITION.—The Corporation may
dispose of used construction equipment by
means of a public auction conducted by a pri-
vate entity that is independent of the Corpora-
tion.
‘‘(C) DEBT REDUCTION.—The Corporation
shall apply all proceeds of a disposition of used
construction equipment under subparagraph
(B) to the reduction of debt of the Corpora-
tion.’’.
SEC. 10. MISCELLANEOUS AMENDMENTS TO TENNESSEE
VALLEY AUTHORITY ACT TO PROVIDE COM-
PETITIVE EQUALITY.
(a) Section 15d(a) the first paragraph of the TVA
Act (16 U.S.C. 831n–4), is hereby repealed and replaced
as follows:
‘‘Bonds for Financing Power Program
‘‘(a) AUTHORIZATION; AMOUNT, USE OF PROCEEDS;
RESTRICTION ON CONTRACTS FOR SALE OR DELIVERY OF
POWER; EXCHANGE POWER ARRANGEMENTS; PAYMENT
OF PRINCIPAL AND INTEREST; BOND CONTRACTS.—The
Corporation is authorized to issue and sell bonds, notes,
and other evidences of indebtedness (hereinafter collec-
tively referred to as ‘‘bonds’’) in an amount not exceeding
$27,000,000,000 outstanding as of January 1, 2001, to
assist in financing its power program and to refund such
bonds: Provided, That such authorization shall be reduced
in annual increments of $1,000,000,000, such that TVA
shall be authorized to issue and sell bonds, in an amount
up to and not exceeding $17,000,000,000 on and after
January 1, 2011: Provided further, That the Corporation
shall certify to the Committee on Transportation and In-
frastructure by January 1 of each year that the Corpora-
tion’s cumulative indebtedness is less than the bond au-
thorization designated herein. The Corporation may, in
performing functions authorized by this chapter, use the
proceeds of such bonds for the operation and maintenance
of any plant or other facility used or to be used for the
generation or transmission of electric power; as may be
required in connection with the lease, lease-purchase, or
any contract for the power output of any such plant or
other facility. 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 ef-
fect 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 pri-
mary 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.’’.
SEC. 11. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Fed-
eral Energy Regulatory Commission such sums as are nec-
essary to carry out this Act and the amendments made
by this Act.
Æ