I 
108TH CONGRESS 
1ST SESSION H. R. 1254
To amend the Federal Power Act to provide for market transparency in 
wholesale sales of electric energy, to prohibit round trip trading of 
electricity, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 12, 2003
Mr. WALDEN of Oregon (for himself, Mr. DEFAZIO, Mr. RADANOVICH, and 
Mrs. BONO) introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce 
A BILL 
To amend the Federal Power Act to provide for market 
transparency in wholesale sales of electric energy, to 
prohibit round trip trading of electricity, 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 ‘‘Truth in Electricity 
Trading Act of 2003’’. 
SEC. 2. MARKET TRANSPARENCY RULES. 
Part II of the Federal Power Act is amended by add-
ing the following new section at the end thereof:
‘‘SEC. 215. MARKET TRANSPARENCY RULES. 
‘‘(a) COMMISSION RULES.—Not later than 180 days 
after the date of enactment of this section, the Commis-
sion shall issue rules establishing an electronic information 
system to provide the Commission and the public with ac-
cess to such information as is necessary or appropriate 
to facilitate price transparency and participation in mar-
kets subject to the Commission’s jurisdiction. Such sys-
tems shall provide information about the availability and 
market price of wholesale electric energy and transmission 
services to the Commission, State commissions, buyers 
and sellers of wholesale electric energy, users of trans-
mission services, and the public on a timely basis. The 
Commission shall have authority to obtain such informa-
tion from any person, including any entity described in 
section 201(f), who sells electric energy at wholesale in 
interstate commerce or provides transmission services in 
interstate commerce. 
‘‘(b) EXEMPTIONS.—The Commission shall exempt 
from disclosure information it determines would, if dis-
closed—
‘‘(1) be detrimental to the operation of an effec-
tive market; or 
‘‘(2) jeopardize system security. 
This section shall not apply to an entity described in sec-
tion 212(k).’’.
SEC. 3. PROHIBITION ON ROUND TRIP TRADING. 
Part II of the Federal Power Act is amended by add-
ing the following new section at the end thereof: 
‘‘SEC. 216. PROHIBITION ON ROUND TRIP TRADING. 
‘‘(a) PROHIBITION.—It shall be a violation of this Act 
for any person, including any entity described in section 
201(f), willfully and knowingly to enter into any contract 
or other arrangement to execute a round-trip trade for the 
purchase or sale of electric energy at wholesale. 
‘‘(b) DEFINITION OF ROUND-TRIP TRADE.—For the 
purposes of this section, the term ‘‘round-trip trade’’ 
means a transaction, or combination of transactions, in 
which a person or other entity—
‘‘(1) enters into a contract or other arrange-
ment to purchase from, or sell to, any other person 
or other entity electric energy at wholesale; 
‘‘(2) simultaneously with entering into the con-
tract described in paragraph (1), arranges a finan-
cially offsetting trade with such other person or enti-
ty for the same quantity of electric energy so that, 
collectively, the purchase and sale transactions in 
themselves result in no financial gain or loss; and 
‘‘(3) has a specific intent to distort reported 
revenues, trading volumes, or prices.’’.
SEC. 4. CONFORMING CHANGES. 
Sections 201(b)(2) and 201(e) of the Federal Power 
Act are each amended by striking ‘‘or 212’’ and inserting 
‘‘212, 215, and 216’’. Section 201(b)(2) of such Act is 
further amended by striking ‘‘and 212’’ and inserting ‘‘, 
212, 215, and 216’’. 
SEC. 5. INCREASED FERC PENALTY AUTHORITY. 
(a) COMPLAINTS.—Section 306 of the Federal Power 
Act (16 U.S.C. 825e) is amended by—
(1) inserting ‘‘electric utility,’’ after ‘‘Any per-
son,’’; and 
(2) inserting ‘‘, transmitting utility,’’ after ‘‘li-
censee’’ each place it appears. 
(b) REVIEW
OF
COMMISSION
ORDERS.—Section 
313(a) of the Federal Power Act (16 U.S.C. 8251) is 
amended by inserting ‘‘electric utility,’’ after ‘‘person,’’ in 
the first place it appears and by striking ‘‘any person un-
less such person’’ and inserting ‘‘any entity unless such 
entity’’. 
(c) CRIMINAL PENALTIES.—Section 316 of the Fed-
eral Power Act (16 U.S.C. 825o) is amended—
(1) in subsection (a), by striking ‘‘$5,000’’ and 
inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 
and inserting ‘‘five years’’; 
(2) in subsection (b), by striking ‘‘$500’’ and 
inserting ‘‘$25,000’’; and
(3) by striking subsection (c). 
(d) CIVIL PENALTIES.—Section 316A of the Federal 
Power Act (16 U.S.C. 825–1) is amended—
(1) in subsections (a) and (b), by striking ‘‘or 
214’’ each place it appears and inserting ‘‘214, 215, 
or 216’’; and 
(2) in subsection (b), by striking ‘‘$10,000’’ 
and inserting ‘‘$1,000,000’’.
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