I
107TH CONGRESS
1ST SESSION
H. R. 238
To amend the Department of Energy Authorization Act to authorize the
Secretary of Energy to impose interim limitations on the cost of electric
energy to protect consumers from unjust and unreasonable prices in
the electric energy market.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 20, 2001
Mr. HUNTER (for himself, Ms. ESHOO, Mr. CUNNINGHAM, Mr. ISSA, Mrs.
CAPPS, and Ms. LEE) introduced the following bill; which was referred
to the Committee on Energy and Commerce
A BILL
To amend the Department of Energy Authorization Act to
authorize the Secretary of Energy to impose interim
limitations on the cost of electric energy to protect con-
sumers from unjust and unreasonable prices in the elec-
tric energy market.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. INTERIM REGIONAL LIMITATIONS.
Title IV of the Department of Energy Organization
Act (42 U.S.C. 7171 et seq.) is amended by adding at
the end the following:
‘‘SEC. 408. INTERIM REGIONAL LIMITATIONS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) COMMISSION.—The term ‘Commission’
means the Federal Energy Regulatory Commission.
‘‘(2) COST-OF-SERVICE
BASED
RATE.—The
term ‘cost-of-service based rate’ means a rate,
charge, or classification for the sale of electric en-
ergy that is equal to—
‘‘(A) all the variable and fixed costs for
producing the electric energy; and
‘‘(B) a return on and of any invested cap-
ital.
‘‘(3) INTERIM REGIONAL PRICE LIMITATION.—
The term ‘interim regional price limitation’ means a
price limitation on the rates charged for the provi-
sion of electric energy that—
‘‘(A) includes a region-wide wholesale elec-
tric energy price limitation for a region com-
prising the Western Systems Coordinating
Council; and
‘‘(B) reflects load differentiated demand.
‘‘(4) LOAD DIFFERENTIATED.—The term ‘load
differentiated’ means the difference between price
limitations by season, time of day, and other rel-
evant usage patterns.
‘‘(5) SECRETARY.—The term ‘Secretary’ means
the Secretary of Energy.
‘‘(b) AUTHORITY TO IMPOSE LIMITATIONS.—The
Secretary shall impose, in any region of the United States,
an interim regional price limitation, or cost-of-service
based rate, on any sale of electric energy at wholesale in
interstate commerce subject to the jurisdiction of the
Commission under part II of the Federal Power Act
whenever—
‘‘(1) the Commission has determined that the
rate, charge, or classification otherwise applicable to
such sale is unjust, unreasonable, or unduly pref-
erential or the Secretary determines that the rate,
charge, or classification otherwise applicable to such
sale exceeds the marginal cost of producing the elec-
tric energy by a significant amount or for a signifi-
cant length of time; and
‘‘(2) the Secretary determines that—
‘‘(A) the continued existence of such rate,
charge, or classification threatens public health
and safety or the economy of any State or re-
gion; and
‘‘(B) the Commission has otherwise failed
to act to improve the situation.
For purposes of carrying out this section, the Secretary
may exercise any authority vested in the Commission
under the Federal Power Act for the fixing and enforcing
of rates, charges, and classifications that are just and rea-
sonable under Part II of that Act.
‘‘(c) DURATION.—A regional price limitation or cost-
of-service based rate imposed under subsection (b) shall
remain in effect until such time as the market reflects just
and reasonable rates, as determined by the Secretary.
‘‘(d) AUTHORITY TO OPT OUT.—
‘‘(1) IN GENERAL.—The Governor of any State
within a region in which a regional price limitation
or cost-of-service based rate is imposed under sub-
section (b) may waive the application of such limita-
tion or rate to sales of electric energy to purchasers
in that State by notifying the Secretary in writing
at any time after imposition of the price limitation
or cost-of-service based rate.
‘‘(2) EFFECTIVE
DATE.—Not later than 30
days after receiving a letter from a Governor of any
State under paragraph (1), the Secretary shall waive
the application of the price limitation or cost-of-serv-
ice based rate to sales of electric energy to pur-
chasers in that State.
‘‘(e) PURPA FACILITIES NOT COVERED.—The au-
thority of subsection (b) shall not apply to any sale of elec-
tric energy generated by a qualifying small power produc-
tion facility or qualifying cogeneration facility (as defined
in section 3 of the Federal Power Act) that is exempt in
whole or in part from the Federal Power Act as provided
in section 210(e) of the Public Utility Regulatory Policies
Act of 1978.
‘‘(f) EFFECT ON OTHER LAW.—Nothing in this sec-
tion affects any authority of the Commission under the
Federal Power Act (16 U.S.C. 791a et seq.) with respect
to sales of electric energy for which no determination has
been made under subsection (b).
‘‘(g) EFFECTIVE DATE.—This section shall apply to
contracts for the sale of electric energy entered into or
renewed after the enactment of this section.’’.
Æ