‘‘(B) With respect to any such proposal that would
apply only to part of an interconnection, the electric reli-
ability organization shall find such proposal valid if the
affiliated regional reliability entity or entities making the
proposal demonstrate that it—
‘‘(i) was developed in a fair and open process
that provided an opportunity for all interested par-
ties to participate;
‘‘(ii) would not have an adverse impact on com-
merce that is not necessary for reliability;
‘‘(iii) provides a level of bulk-power system reli-
ability adequate to protect public health, safety, wel-
fare, and national security, and would not have a
significant adverse impact on reliability; and
‘‘(iv) in the case of a variance, is based on le-
gitimate differences between regions or between sub-
regions within the affiliated regional reliability enti-
ty’s geographic area.
The electric reliability organization shall approve or dis-
approve such proposal within 120 days, or the proposal
shall be deemed approved. Following approval of any such
proposal under this paragraph, the electric reliability orga-
nization shall seek Commission approval pursuant to the
procedures prescribed under subsection (e)(3). Affiliated
regional reliability entities may not make requests for ap-
proval directly to the Commission except pursuant to sub-
section (e)(3)(D).
‘‘(4) If an affiliated regional reliability entity re-
quests, consistent with paragraph (1) of this subsection,
that the electric reliability organization delegate authority
to it, but is unable within 180 days to reach agreement
with the electric reliability organization with respect to
such requested delegation, such entity may seek relief
from the Commission. If, following notice and opportunity
for comment, the Commission determines that a delega-
tion to the entity would meet the requirements of para-
graph (1) above, and that the delegation would be just,
reasonable, not unduly discriminatory or preferential, and
in the public interest, and that the electric reliability orga-
nization has unreasonably withheld such delegation, the
Commission may, by order, direct the electric reliability
organization to make such delegation.
‘‘(5)(A) The Commission may, upon its own motion
or upon complaint, and with notice to the appropriate af-
filiated regional reliability entity or entities, direct the
electric reliability organization to propose a modification
to an agreement entered into under this subsection if the
Commission determines that—
‘‘(i) the affiliated regional reliability entity no
longer has the capacity to carry out effectively or ef-
ficiently its implementation or enforcement respon-
sibilities under that agreement, has failed to meet its
obligations under that agreement, or has violated
any provision of this section;
‘‘(ii) the rules, practices, or procedures of the
affiliated regional reliability entity no longer provide
for fair and impartial discharge of its implementa-
tion or enforcement responsibilities under the agree-
ment;
‘‘(iii) the geographic boundary of a transmission
entity approved by the Commission is not wholly
within the boundary of an affiliated regional reli-
ability entity and such difference is inconsistent with
the effective and efficient implementation and ad-
ministration of bulk-power system reliability; or
‘‘(iv) the agreement is inconsistent with another
delegation agreement as a result of actions taken
under paragraph (4) of this subsection.
‘‘(B) Following an order of the Commission issued
under subparagraph (A), the Commission may suspend
the affected agreement if the electric reliability organiza-
tion or the affiliated regional reliability entity does not
propose an appropriate and timely modification. If the
agreement is suspended, the electric reliability organiza-
tion shall assume the previously delegated responsibilities.
The Commission shall allow the electric reliability organi-
zation and the affiliated regional reliability entity an op-
portunity to appeal the suspension.
‘‘(i) ORGANIZATION MEMBERSHIP.—Every system
operator shall be required to be a member of the electric
reliability organization and shall be required also to be a
member of any affiliated regional reliability entity oper-
ating under an agreement effective pursuant to subsection
(h) applicable to the region in which the system operator
operates or is responsible for the operation of bulk-power
system facilities.
‘‘(j) INJUNCTIONS AND DISCIPLINARY ACTION.—(1)
Consistent with the range of actions approved by the Com-
mission under subsection (d)(4)(H), the electric reliability
organization may impose a penalty, limitation of activities,
functions, operations, or other disciplinary action the elec-
tric reliability organization finds appropriate against a
user of the bulk-power system if the electric reliability or-
ganization, after notice and an opportunity for interested
parties to be heard, issues a finding in writing that the
user of the bulk-power system has violated an organization
standard. The electric reliability organization shall imme-
diately notify the Commission of any disciplinary action
imposed with respect to an act or failure to act of a user
of the bulk-power system that affected or threatened to
affect bulk-power system facilities located in the United
States, and the sanctioned party shall have the right to
seek modification or rescission of such disciplinary action
by the Commission. If the organization finds it necessary
to prevent a serious threat to reliability, the organization
may seek injunctive relief in a Federal court in the district
in which the affected facilities are located.
‘‘(2) A disciplinary action taken under paragraph (1)
may take effect not earlier than the 30th day after the
electric reliability organization files with the Commission
its written finding and record of proceedings before the
electric reliability organization and the Commission posts
its written finding, unless the Commission, on its own mo-
tion or upon application by the user of the bulk-power sys-
tem which is the subject of the action, suspends the action.
The action shall remain in effect or remain suspended un-
less and until the Commission, after notice and oppor-
tunity for hearing, affirms, sets aside, modifies, or rein-
states the action, but the Commission shall conduct such
hearing under procedures established to ensure expedited
consideration of the action taken.
‘‘(3) The Commission, on its own motion, may order
compliance with an organization standard and may impose
a penalty, limitation of activities, functions, or operations,
or take such other disciplinary action as the Commission
finds appropriate, against a user of the bulk-power system
with respect to actions affecting or threatening to affect
bulk-power system facilities located in the United States
if the Commission finds, after notice and opportunity for
a hearing, that the user of the bulk-power system has vio-
lated or threatens to violate an organization standard.
‘‘(4) The Commission may take such action as is nec-
essary against the electric reliability organization or an af-
filiated regional reliability entity to assure compliance with
an organization standard, or any Commission order affect-
ing the electric reliability organization or an affiliated re-
gional reliability entity.
‘‘(k) RELIABILITY REPORTS.—The electric reliability
organization shall conduct periodic assessments of the reli-
ability and adequacy of the interconnected bulk-power sys-
tem in North America and shall report annually to the
Secretary of Energy and the Commission its findings and
recommendations for monitoring or improving system reli-
ability and adequacy.
‘‘(l) ASSESSMENT
AND
RECOVERY
OF
CERTAIN
COSTS.—The reasonable costs of the electric reliability or-
ganization, and the reasonable costs of each affiliated re-
gional reliability entity that are related to implementation
and enforcement of organization standards or other re-
quirements contained in a delegation agreement approved
under subsection (h), shall be assessed by the electric reli-
ability organization and each affiliated regional reliability
entity, respectively, taking into account the relationship of
costs to each region and based on an allocation that re-
flects an equitable sharing of the costs among all endusers.
The Commission shall provide by rule for the review of
such costs and allocations, pursuant to the standards in
this subsection and subsection (d)(4)(F).’’.
(b) ENFORCEMENT.—Sections 316 and 316A of the
Federal Power Act are each amended by striking ‘‘or 214’’
each place it appears and inserting ‘‘214, or 215’’.
SEC. 3. APPLICATION OF ANTITRUST LAWS.
Notwithstanding any other provision of law, each of
the following activities are rebuttably presumed to be in
compliance with the antitrust laws of the United States:
(1) Activities undertaken by the electric reli-
ability organization under section 215 of the Federal
Power Act or affiliated regional reliability entity op-
erating under an agreement in effect under section
215(h) of such Act.
(2) Activities of a member of the electric reli-
ability organization or affiliated regional reliability
entity in pursuit of organization objectives under
section 215 of the Federal Power Act undertaken in
good faith under the rules of the organization.
Primary jurisdiction, and immunities and other affirma-
tive defenses, shall be available to the extent otherwise ap-
plicable.
Æ