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Subtitle I—Definitions 
SEC. 1295. DEFINITIONS. 
(a) ELECTRIC UTILITY.—Section 3(22) of the Federal 
Power Act (16 U.S.C. 796(22)) is amended to read as fol-
lows: 
‘‘(22) ELECTRIC
UTILITY.—The term ‘electric 
utility’ means any person or Federal or State agency 
(including any entity described in section 201(f)) that 
sells electric energy; such term includes the Tennessee 
Valley Authority and each Federal power marketing 
administration.’’. 
(b) TRANSMITTING UTILITY.—Section 3(23) of the 
Federal Power Act (16 U.S.C. 796(23)) is amended to read 
as follows: 
‘‘(23) TRANSMITTING UTILITY.—The term ‘trans-
mitting utility’ means an entity, including any enti-
ty described in section 201(f), that owns, operates, or 
controls facilities used for the transmission of electric 
energy— 
‘‘(A) in interstate commerce; or 
‘‘(B) for the sale of electric energy at whole-
sale.’’. 
(c) ADDITIONAL DEFINITIONS.—Section 3 of the Fed-
eral Power Act (16 U.S.C. 796) is amended by adding at 
the end the following:
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‘‘(26) ELECTRIC COOPERATIVE.—The term ‘elec-
tric cooperative’ means a cooperatively owned electric 
utility. 
‘‘(27) RTO.—The term ‘Regional Transmission 
Organization’ or ‘RTO’ means an entity of sufficient 
regional scope approved by the Commission to exer-
cise operational or functional control of facilities used 
for the transmission of electric energy in interstate 
commerce and to ensure nondiscriminatory access to 
such facilities. 
‘‘(28) ISO.—The term ‘Independent System Op-
erator’ or ‘ISO’ means an entity approved by the 
Commission to exercise operational or functional con-
trol of facilities used for the transmission of electric 
energy in interstate commerce and to ensure non-
discriminatory access to such facilities.’’. 
(d) COMMISSION.—For the purposes of this title, the 
term ‘‘Commission’’ means the Federal Energy Regulatory 
Commission. 
(e) APPLICABILITY.—Section 201(f) of the Federal 
Power Act (16 U.S.C. 824(f)) is amended by adding after 
‘‘political subdivision of a state,’’ the following: ‘‘an electric 
cooperative that has financing under the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 901 et seq.) or that sells less 
than 4,000,000 megawatt hours of electricity per year,’’.
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Subtitle J—Technical and 
Conforming Amendments 
SEC. 1297. CONFORMING AMENDMENTS. 
The Federal Power Act is amended as follows: 
(1) Section 201(b)(2) of such Act (16 U.S.C. 
824(b)(2)) is amended as follows: 
(A) In the first sentence by striking ‘‘210, 
211, and 212’’ and inserting ‘‘203(a)(2), 206(e), 
210, 211, 211A, 212, 215, 216, 217, 218, 219, 
220, 221, and 222’’. 
(B) In the second sentence by striking ‘‘210 
or 211’’ and inserting ‘‘203(a)(2), 206(e), 210, 
211, 211A, 212, 215, 216, 217, 218, 219, 220, 
221, and 222’’. 
(C) Section 201(b)(2) of such Act is amend-
ed by striking ‘‘The’’ in the first place it appears 
and inserting ‘‘Notwithstanding section 201(f), 
the’’ and in the second sentence after ‘‘any 
order’’ by inserting ‘‘or rule’’. 
(2) Section 201(e) of such Act is amended by 
striking ‘‘210, 211, or 212’’ and inserting ‘‘206(e), 
206(f), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 
220, 221, and 222’’. 
(3) Section 206 of such Act (16 U.S.C. 824e) is 
amended as follows:
514 
(A) In subsection (b), in the seventh sen-
tence, by striking ‘‘the public utility to make’’. 
(B) In the first sentence of subsection (a), 
by striking ‘‘hearing had’’ and inserting ‘‘hear-
ing held’’. 
(4) Section 211(c) of such Act (16 U.S.C. 
824j(c)) is amended by— 
(A) striking ‘‘(2)’’; 
(B) striking ‘‘(A)’’ and inserting ‘‘(1)’’ 
(C) striking ‘‘(B)’’ and inserting ‘‘(2)’’; and 
(D) striking ‘‘termination of modification’’ 
and inserting ‘‘termination or modification’’. 
(5) Section 211(d)(1) of such Act (16 U.S.C. 
824j(d)(1)) is amended by striking ‘‘electric utility’’ 
the second time it appears and inserting ‘‘transmit-
ting utility’’. 
(6) Section 315 (c) of such Act (16 U.S.C. 
825n(c)) is amended by striking ‘‘subsection’’ and in-
serting ‘‘section’’. 
Subtitle K—Economic Dispatch 
SEC. 1298. ECONOMIC DISPATCH. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding at the end the following:
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‘‘SEC. 223. JOINT BOARD ON ECONOMIC DISPATCH. 
‘‘(a) IN GENERAL.—The Commission shall convene a 
joint board pursuant to section 209 of this Act to study 
the issue of security constrained economic dispatch for a 
market region. 
‘‘(b) MEMBERSHIP.—The Commission shall request 
each State to nominate a representative for such joint 
board. 
‘‘(c) POWERS.—The board’s sole authority shall be to 
consider issues relevant to what constitutes ‘security con-
strained economic dispatch’ and how such a mode of oper-
ating an electric energy system affects or enhances the reli-
ability and affordability of service to customers. 
‘‘(d) REPORT TO THE CONGRESS.—The board shall 
issue a report on these matters within one year of enactment 
of this section, including any consensus recommendations 
for statutory or regulatory reform.’’. 
TITLE XIV—MISCELLANEOUS 
Subtitle C—Other Provisions 
SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY 
ORDER. 
Department of Energy Order No. 202–03–2, issued by 
the Secretary of Energy on August 28, 2003, shall remain 
in effect unless rescinded by Federal statute.