I
106TH CONGRESS
2D SESSION
H. R. 4881
To benefit electricity consumers by promoting the reliability of the bulk-
power system.
IN THE HOUSE OF REPRESENTATIVES
JULY 18, 2000
Mr. SMITH of Washington introduced the following bill; which was referred to
the Committee on Commerce
A BILL
To benefit electricity consumers by promoting the reliability
of the bulk-power system.
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 ‘‘Electric Reliability
2000 Act’’.
SEC. 2. ELECTRIC RELIABILITY ORGANIZATION.
(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. ELECTRIC RELIABILITY ORGANIZATION.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) AFFILIATED REGIONAL RELIABILITY ENTI-
TY.—The term ‘affiliated regional reliability entity’
means an entity delegated authority under sub-
section (h).
‘‘(2) BULK-POWER SYSTEM.—
‘‘(A) IN GENERAL.—The term ‘bulk-power
system’ means all facilities and control systems
necessary for operating an interconnected elec-
tric power transmission grid or any portion of
an interconnected transmission grid.
‘‘(B) INCLUSIONS.—The term ‘bulk-power
system’ includes—
‘‘(i) high voltage transmission lines,
substations, control centers, communica-
tions, data, and operations planning facili-
ties necessary for the operation of all or
any part of the interconnected trans-
mission grid; and
‘‘(ii) the output of generating units
necessary to maintain the reliability of the
transmission grid.
‘‘(3) BULK-POWER
SYSTEM
USER.—The term
‘bulk-power system user’ means an entity that—
‘‘(A) sells, purchases, or transmits electric
energy over a bulk-power system; or
‘‘(B) owns, operates, or maintains facilities
or control systems that are part of a bulk-power
system; or
‘‘(C) is a system operator.
‘‘(4) ELECTRIC RELIABILITY ORGANIZATION.—
The term ‘electric reliability organization’ means the
organization designated by the Commission under
subsection (d).
‘‘(5) ENTITY
RULE.—The term ‘entity rule’
means a rule adopted by an affiliated regional reli-
ability entity for a specific region and designed to
implement or enforce 1 or more organization stand-
ards.
‘‘(6) 
INDEPENDENT
DIRECTOR.—The 
term
‘independent director’ means a person that—
‘‘(A) is not an officer or employee of an
entity that would reasonably be perceived as
having a direct financial interest in the outcome
of a decision by the board of directors of the
electric reliability organization; and
‘‘(B) does not have a relationship that
would interfere with the exercise of independent
judgment in carrying out the responsibilities of
a director of the electric reliability organization.
‘‘(7) INDUSTRY SECTOR.—The term ‘industry
sector’ means a group of bulk-power system users
with substantially similar commercial interests, as
determined by the board of directors of the electric
reliability organization.
‘‘(8) INTERCONNECTION.—The term ‘inter-
connection’ means a geographic area in which the
operation of bulk-power system components is syn-
chronized so that the failure of 1 or more of the
components may adversely affect the ability of the
operators of other components within the inter-
connection to maintain safe and reliable operation of
the facilities within their control.
‘‘(9) ORGANIZATION STANDARD.—
‘‘(A) IN GENERAL.—The term ‘organiza-
tion standard’ means a policy or standard
adopted by the electric reliability organization
to provide for the reliable operation of a bulk-
power system.
‘‘(B) INCLUSIONS.—The term ‘organiza-
tion standard’ includes—
‘‘(i) an entity rule approved by the
electric reliability organization; and
‘‘(ii) a variance approved by the elec-
tric reliability organization.
‘‘(10) PUBLIC INTEREST GROUP.—
‘‘(A) IN GENERAL.—The term ‘public in-
terest group’ means a nonprofit private or pub-
lic organization that has an interest in the ac-
tivities of the electric reliability organization.
‘‘(B) INCLUSIONS.—The term ‘public in-
terest group’ includes—
‘‘(i) a ratepayer advocate;
‘‘(ii) an environmental group; and
‘‘(iii) a State or local government or-
ganization that regulates participants in,
and promulgates government policy with
respect to, the market for electric energy.
‘‘(11) SYSTEM OPERATOR.—
‘‘(A) IN GENERAL.—The term ‘system op-
erator’ means an entity that operates or is re-
sponsible for the operation of a bulk-power sys-
tem.
‘‘(B) INCLUSIONS.—The term ‘bulk-power
system’ includes—
‘‘(i) high voltage transmission lines,
substations, control centers, communica-
tions, data, and operations planning facili-
ties necessary for the operation of all or
any part of the interconnected trans-
mission grid; and
‘‘(ii) the output of generating units
necessary to maintain the reliability of the
transmission grid.
‘‘(3) BULK-POWER
SYSTEM
USER.—The term
‘bulk-power system user’ means an entity that—
‘‘(A) sells, purchases, or transmits electric
energy over a bulk-power system; or
‘‘(B) owns, operates, or maintains facilities
or control systems that are part of a bulk-power
system; or
‘‘(C) is a system operator.
‘‘(4) ELECTRIC RELIABILITY ORGANIZATION.—
The term ‘electric reliability organization’ means the
organization designated by the Commission under
subsection (d).
‘‘(5) ENTITY
RULE.—The term ‘entity rule’
means a rule adopted by an affiliated regional reli-
ability entity for a specific region and designed to
implement or enforce 1 or more organization stand-
ards.
‘‘(6) 
INDEPENDENT
DIRECTOR.—The 
term
‘independent director’ means a person that—
‘‘(A) is not an officer or employee of an
entity that would reasonably be perceived as
having a direct financial interest in the outcome
of a decision by the board of directors of the
electric reliability organization; and
‘‘(B) does not have a relationship that
would interfere with the exercise of independent
judgment in carrying out the responsibilities of
a director of the electric reliability organization.
‘‘(7) INDUSTRY SECTOR.—The term ‘industry
sector’ means a group of bulk-power system users
with substantially similar commercial interests, as
determined by the board of directors of the electric
reliability organization.
‘‘(8) INTERCONNECTION.—The term ‘inter-
connection’ means a geographic area in which the
operation of bulk-power system components is syn-
chronized so that the failure of 1 or more of the
components may adversely affect the ability of the
operators of other components within the inter-
connection to maintain safe and reliable operation of
the facilities within their control.
‘‘(9) ORGANIZATION STANDARD.—
‘‘(A) IN GENERAL.—The term ‘organiza-
tion standard’ means a policy or standard