sion, when establishing rates for any type of electric serv-
ice or natural gas subject to the jurisdiction of such State
commission or the Commission, from disallowing any costs
unreasonably incurred, or imputing any revenues unrea-
sonably foregone, including costs incurred or revenues
foregone as a result of an interaffiliate transaction. The
previous sentence shall not apply to any cost incurred and
recovered in rates or charges or revenues foregone prior
to July 11, 1996, whether or not subject to refund or ad-
justment.
(d) AMENDMENT OF SECTION 318.—Section 318 of
the Federal Power Act is amended as follows:
(1) By striking ‘‘shall apply to such person’’
and inserting ‘‘shall not apply to such person’’.
(2) By striking ‘‘not be subject to the require-
ment of this Act, or of’’ and inserting ‘‘be subject
to the requirement of this Act and of’’.
(3) By striking ‘‘, unless the Securities’’ and all
that follows down to the period at the end thereof.
SEC. 114. ENFORCEMENT.
Section 314 of the Federal Power Act is amended by
inserting ‘‘or subtitle B of title I of the Electric Power
Competition and Consumer Choice Act of 1997’’ after
‘‘this Act’’ in each place it appears in subsections (a) and
(b).
SEC. 115. ANTITRUST LAWS NOT AFFECTED.
Nothing in this Act shall be construed to modify or
supersede the application of the antitrust laws to any ac-
tivity to which the provisions of this Act apply or to any
public utility company, electric utility, or to any other per-
son or entity to whom the provisions of this Act apply.
As used in this section the term ‘‘antitrust laws’’—
(1) has the meaning given it in subsection (a)
of the first section of the Clayton Act (15 U.S.C.
12(a)), except that such term includes section 5 of
the Federal Trade Commission Act (15 U.S.C. 45)
to the extent such section 5 applies to unfair meth-
ods of competition; and
(2) includes any State law similar to the laws
referred to in paragraph (1).
Subtitle C—Electric Energy Trans-
mission and Distribution Poli-
cies
SEC. 121. TRANSMISSION ACCESS AND FACILITATION OF
RETAIL COMPETITION.
(a) TRANSMISSION ACCESS.—Section 211 of the Fed-
eral Power Act is amended by adding the following at the
end thereof:
‘‘(f) TRANSMISSION ACCESS.—Within 12 months
after the date of enactment of this subsection, the Com-
mission shall promulgate rules to establish tariffs applica-
ble in the largest region or regions feasible to carry out
each of the following:
‘‘(1) Ensure development and efficient oper-
ation of competitive electricity markets, while en-
couraging the economical and efficient use of exist-
ing generating facilities, and the economical location
and use of future generating facilities.
‘‘(2) Ensure the full recovery by owners of
transmission facilities of all prudent transmission
costs.
‘‘(3) Prevent multiple charges for transmission
service based on the number of transmission owners.
‘‘(4) Prevent any person engaged in the sale of
energy from gaining any advantage over competitors
by reason of such person’s ownership or control of
electric power transmission or distribution facili-
ties.’’.
(b) FACILITATION OF RETAIL COMPETITION.—Sec-
tion 212(h) of such Act is amended to read as follows:
‘‘(h) ORDERS TO FACILITATE RETAIL COMPETI-
TION.—Notwithstanding any other provision of law, any
order under this Act requiring a transmitting utility to
provide wholesale transmission service shall also apply to
retail transmission service provided by such utility or any
other electric utility to the extent necessary to permit the
provision of retail competition in accordance with subtitle
F of title I of the Public Utility Regulatory Policies Act
of 1978.’’.
SEC. 122. APPLICATION OF FERC OPEN ACCESS RULES TO
NONJURISDICTIONAL UTILITIES.
Effective on the date one year after the date of enact-
ment of this Act, all rules adopted by the Commission
under section 201, 205, or 206 of the Federal Power Act
that are applicable to wholesale or retail open access trans-
mission services of public utilities shall apply to any such
services provided by any transmitting utility (as defined
in section 3(23) of such Act) that is not a public utility
(as defined in section 201(e) of such Act) and to any Fed-
eral Power Marketing Agency in the same manner and
to the same extent as such rules apply to public utilities
(as so defined), except that the Commission may exempt
any such transmitting utility from such rules, or modify
the application of such rules to any such transmitting util-
ity if the Commission finds that such action is in the pub-
lic interest.
SEC. 123. ACCESS TO BOOKS AND RECORDS.
(a) STATE COMMISSIONS.—Section 201(g)(1) of the
Federal Power Act is amended by adding the following at
the end thereof: ‘‘A public utility, and each affiliate or as-
sociate thereof, shall produce for examination such person-
nel, books, accounts, memoranda, contracts, records, and
any other materials upon an order of any State commis-
sion finding that production of such materials will assist
the State commission in carrying out its responsibilities.
The cost of any audit ordered by a State commission
under either this section or under State law, shall be borne
by the public utility and its affiliates.’’.
(b) FERC.—Section 301 is amended by adding the
following at the end thereof:
‘‘(d) A public utility, and each affiliate or associate
thereof, shall produce for examination such personnel,
books, accounts, memoranda, contracts, records, and any
other materials upon an order of the Commission finding
that production of such materials will assist the Commis-
sion in carrying out its responsibilities. The cost of any
audit ordered by the Commission under this section, shall
be borne by the public utility and its affiliates.’’.
SEC. 124. ADDITIONAL AMENDMENTS TO PURPA.
Title II of the Public Utility Regulatory Policies Act
of 1978 is amended by adding the following after section
215:
‘‘SEC. 216. ENCOURAGEMENT OF PARTICULAR GENERA-
TION TECHNOLOGIES.
‘‘Nothing in this Act, the Federal Power Act, or any
other provision of Federal law prevents a State regulatory
authority, in making a determination for purposes of sec-
tion 210 of the incremental cost to a purchasing electric
utility of alternative electric energy, from establishing
such incremental costs at levels which reflect avoided envi-
ronmental costs that are not included in market rates.
Where a State regulatory authority determines that an
electric utility’s incremental cost of alternative electric en-
ergy shall be determined by competitive bidding, the State
regulatory authority may segment the bid by generation
technology or by groups of generation technologies.’’.
SEC. 125. CONSUMER INFORMATION.
The Fair Packaging and Labeling Act (15 U.S.C.
1451 and following) is amended by inserting the following
new sections after section 12:
‘‘SEC. 13. CONSUMER INFORMATION DISCLOSURE.
‘‘(a) DISCLOSURE RULES.—Not later than January
1, 1999, the Federal Trade Commission, in consultation
with the Administrator of the Environmental Protection
Agency and the Secretary of Energy, shall issue rules pre-
scribing the time, form, content, and frequency of supplier
disclosure as required under subsections (b) and (c) of this
section.
‘‘(b) DISCLOSURE TO ELECTRIC CONSUMERS.—In
order to assist electric consumers in making informed pur-
chasing decisions, each person that sells or offers to sell
electric energy to electric consumers in a State that has
adopted the retail competition standard under subtitle F,
shall provide to the electric consumer the following infor-
mation in accordance with rules under subsection (a):
‘‘(1) Historic and projected generating source
data.
‘‘(2) Historic and projected air and water emis-
sions data.
‘‘(3) The following price information:
‘‘(A) The price of electric energy expressed
in terms of the charge per billing unit.
‘‘(B) The definition of the billing unit.
‘‘(C) A description of any variable charges
and a statement identifying the factors that
would cause the charge per billing unit to vary.
The supplier shall provide support for any rep-
resentation made regarding the likelihood or
frequency of changes in the charge per billing
unit.
‘‘(D) A description of all other charges or
costs that are associated with the service being
offered including, but not limited to, access
charges, exit charges, back-up service charges,
stranded benefits, and stranded cost recovery
charges and customer service charges.
‘‘(4) Historic and projected reliability data.
‘‘(5) A notice of any orders or other legal ac-
tions pending against such person for noncompliance
with Federal, State, and local environmental and nu-
clear safety laws.
‘‘(c) GENERATING SOURCE INFORMATION WHOLE-
SALE TRANSACTIONS.—In every contract for the sale of
electric energy for resale, the seller of electric energy shall
provide to the purchaser of such generation source data
and emissions data as may be required by rules under sub-
section (a).
‘‘(d) 
AUTHORITY
TO
OBTAIN
BOOKS
AND
RECORDS.—The Federal Trade Commission may use the
authority of sections 3, 6, 9, and 20 of the Federal Trade
Commission Act (15 U.S.C. 41 and following) to obtain
any information necessary to carry out its duties under
this section, without regard to the limitations contained
in section 21(b) (15 U.S.C. 57b–2(b)).
‘‘(e) EXEMPT INFORMATION.—The Commission may,
by rule, exempt from subsection (b) any information that
the Commission determines is not technologically or eco-
nomically feasible to provide or that is not likely to assist
consumers in purchasing decisions.
‘‘(f) PROHIBITED ACTS AND ENFORCEMENT.—(1) It
shall be unlawful for any person to fail to provide any of
the information required by this section or under the rules
issued under subsection (a).
‘‘(2) Any person who fails to provide information re-
quired under the rules issued under subsection (a) of this
section or who provides false or misleading information
under subsection (a) of this section shall be subject to a
civil penalty of not more than $1,000,000 for each viola-
tion.
‘‘(3) Any person against whom a civil penalty is as-
sessed under paragraph (2), above may, within 60 cal-
endar days after the date of the order of the Commission
assessing such penalty, institute an action in the United
States Court of Appeals for the appropriate judicial circuit
for judicial review of such order in accordance with chap-
ter 7 of title 5, United States Code (5 U.S.C. 701 et seq.).
The court shall have jurisdiction to enter a judgment af-
firming, modifying, or setting aside in whole or in part,
the order of the Commission, or the court may remand
the proceeding to the Commission for such further action
as the court may direct.
‘‘(4) Any violation of a rule under this section shall
be treated as a violation of a rule respecting unfair or de-
ceptive acts or practices in or affecting commerce (within
the meaning of section 5(a)(1) of the Federal Trade Com-
mission Act (15 U.S.C. 45(a)(1)) and as a violation of
section 18 of such Act (15 U.S.C. 57a).
‘‘(g) STATE AUTHORITY.—A State regulatory au-
thority may prescribe disclosure requirements in addition
to those provided under this section.
‘‘(h) ENFORCEMENT BY STATES.—
‘‘(1) IN GENERAL.—Whenever an attorney gen-
eral of any State has reason to believe that the in-
terests of the residents of that State have been or
are being threatened or adversely affected because
any person is violating or has violated any rule of
the Commission under this section, the State, as
parens patriae, may bring a civil action on behalf of
its residents in an appropriate district court of the
United States to enjoin such violating, to enforce
compliance with such rule of the Commission, to ob-
tain damages, restitution, or other compensation on
behalf of residents of such State, or to obtain such
further and other relief as the court may deem ap-
propriate.
‘‘(2) NOTICE.—The State shall serve prior writ-
ten notice of any civil action under this subsection
upon the Commission and provide the Commission
with a copy of its complaint, except that if it is not
feasible for the State to provide such prior notice,
the State shall serve such notice immediately upon
instituting such action. Upon receiving a notice re-
specting a civil action, the Commission shall have
the right (A) to intervene in such action, (B) upon
so intervening, to be heard on all matters arising
therein, and (C) to file petitions for appeal.
‘‘(3) CONSTRUCTION.—For purposes of bring-
ing any civil action under this subsection, nothing in
this section shall prevent an attorney general from
exercising the powers conferred on the attorney gen-
eral by the laws of such State to conduct investiga-
tions or to administer oaths or affirmations or to
compel the attendance of witnesses or the production
of documentary and other evidence.
‘‘(4) ACTIONS
BY
COMMISSION.—Whenever a
civil action has been instituted by or on behalf of the
Commission for violation of any rule under this sec-
tion, no State may, during the pendency of such ac-
tion instituted by or on behalf of the Commission,
institute a civil action under this subsection against
any defendant named in the complaint in such ac-
tion for violation of any rule as alleged in such com-
plaint.
‘‘(5) VENUE; SERVICE OF PROCESS.—Any civil
action brought under this subsection in a district
court of the United States may be brought in the
district in which the defendant is found, is an inhab-
itant, or transacts business or wherever venue is
proper under section 1391 of title 28. Process in
such an action may be served in any district in
which the defendant is an inhabitant or in which the
defendant may be found.
‘‘(6) ACTIONS BY OTHER STATE OFFICIALS.—
(A) Nothing contained in this section shall prohibit
an authorized State official from proceeding in State
court on the basis of an alleged violation of any civil
or criminal statute of such State.
‘‘(B) In addition to actions brought by an attor-
ney general of a State under this subsection, such
an action may be brought by officers of such State
who are authorized by the State to bring actions in
such State on behalf of its residents.
‘‘(i) DEFINITIONS.—For purposes of this section:
‘‘(1) GENERATION
SOURCE
DATA.—The term
‘generation source data’ for a sale of electric energy
means the fuel or source of energy for the facility
or facilities generating the electric energy, calculated
in such manner as the Commission, in consultation
with the Secretary shall, prescribe by rule.
‘‘(2) EMISSIONS
DATA.—The term ‘emissions
data’ for a sale of electric energy means the emis-
sions of criteria air pollutants, carbon dioxide, and
any other air or water pollutant specified by the
Commission, in consultation with the Administrator
and the Secretary, by rule associated with a facility
or facilities generating such energy calculated in
such manner as the Administrator, in consultation
with the Secretary, may prescribe by rule.
‘‘(3) CRITERIA
AIR
POLLUTANT.—The term
‘criteria air pollutant’ means an air pollutant for
which an ambient air quality standard has been pre-
scribed under section 109 of the Clean Air Act.
‘‘SEC. 14. PRIVACY OF CONSUMER PROPRIETARY INFORMA-
TION.
‘‘(a) PRIVACY REQUIREMENTS.—Except as required
by law or with the prior written affirmative approval of
the consumer, any person that receives or obtains cus-
tomer information by virtue of its provision of a retail elec-
tric service or metering and billing service shall only use,
disclose, or permit access to individually identifiable
consumer information in its provision of (1) a retail elec-
tric service or metering and billing service from which such
information is derived, or (2) services necessary to, or used
in, the provision of such service.
consumer identities and characteristics have been re-
moved.’’.
SEC. 126. FEDERAL RENEWABLES POLICY.
(a) MINIMUM RENEWABLE GENERATION REQUIRE-
MENT.—Every person who generates, and sells to any
other person, electric energy shall submit to the Secretary
of Energy renewable energy credits (computed in kilowatt-
hours) in an amount equal to a specified percentage of
its total of such sales in the preceding calendar year. The
specified percentage shall be 3 percent for calendar year
1998. The Secretary shall annually establish a gradually
increasing specified percentage for each calendar year
after calendar year 1998 according to a sliding scale such
that the specified percentage for the calendar year 2010
and thereafter is 10 percent. Nothing in this section shall
be construed to prohibit any State from requiring addi-
tional renewable energy generation in that State under
any program adopted by the State.
(b) SUBMISSION OF CREDITS.—A person generating
electric energy may satisfy the requirements of subsection
(a) through the submission of—
(1) renewable energy credits issued by the Sec-
retary of Energy under this section for renewable
energy generated by such person in such calendar
year;
(2) renewable energy credits issued by the Sec-
retary of Energy under this section to any other per-
son for renewable energy generated in such calendar
year by such other person and acquired by such per-
son; and
(3) any combination of the foregoing.
(c) ISSUANCE OF RENEWABLE ENERGY CREDITS.—
(1) IN
GENERAL.—The Secretary of Energy
shall establish, by rule after notice and opportunity
for hearing but not later than 120 days after the en-
actment of this Act, a program to issue renewable
energy credits to generators of renewable energy.
Renewable energy credits shall be identified by type
of generation and facility location (State). Under
such program, the Secretary of Energy shall issue
one renewable energy credit to any person who gen-
erates in any State one unit of electric energy
through the use of renewable energy.
(2) FEES.—The Secretary of Energy shall im-
pose and collect a fee on recipients of renewable en-
ergy credits in an amount equal to the administra-
tive costs of issuing, recording, monitoring the sale
or exchange, and tracking of such credits. The fail-
ure or refusal of any person to pay such fee shall
be subject to a civil penalty equal to 21⁄2 times the
amount of the unpaid fees. The Secretary of Energy
shall bring an action in the appropriate United
States district court to collect any unpaid fees and
to impose a civil penalty on any person who fails or
refuses to pay such fee imposed under this section.
(3) PURPA CONTRACTS.—To the extent pur-
chases are made by an electric utility from a genera-
tor pursuant to section 210 of the Public Utility
Regulatory Policies Act of 1978, the electric utility
shall be treated for purposes of this section as the
generator of such energy unless such generator and
utility agree to terminate such contract prior to the
expiration date set forth in the contract.
(d) SALE OR EXCHANGE.—Renewable energy credits
may be sold or exchanged by the person to whom issued
or by any other person who acquires the credit. A renew-
able energy credit for any year that is not used to satisfy
the minimum renewable generation requirement of sub-
section (a) for that year may not be carried forward for
use in another year. The Secretary of Energy shall pro-
mulgate regulations to provide for the issuance, recording,
monitoring the sale or exchange, and tracking of such
credits and ensuring public disclosure of price information.
The Secretary of Energy shall maintain records of all sales
and exchanges of credits. No such sale or exchange shall
be valid unless recorded by the Secretary of Energy.
(e) ENFORCEMENT.—The Secretary of Energy shall
bring an action in the appropriate United States district
court to impose a civil penalty on any person who fails
or refuses to comply with subsection (a). The failure or
refusal of any person to submit any required quantity of
renewable energy credits shall be subject to a civil penalty
of not more than 21⁄2 times the estimated national average
market value (as determined by the Secretary of Energy)
for the calendar year concerned of such quantity of renew-
able energy credits.
(f) RULES.—The Secretary of Energy shall promul-
gate such rules as may be necessary to carry out this sec-
tion, including such rules requiring the submission of such
information as may be necessary to verify the annual elec-
tric energy generation and renewable energy generation of
any person applying for renewable energy credits under
this section or to verify and audit the validity of renewable
energy credits submitted by any person to the Secretary
of Energy.
SEC. 127. UNIVERSAL SERVICE.
(a) PROCEDURES TO REVIEW UNIVERSAL SERVICE
REQUIREMENTS.—
(1) FEDERAL-STATE JOINT BOARD ON UNIVER-
SAL SERVICE.—Within one month after the date of
enactment of the this Act, the Commission shall es-
tablish a Federal-State Joint Board and institute
and refer to the Joint Board a proceeding to rec-
ommend uniform universal service support mecha-
nisms.
(2) STATE ACTION.—In order to support the
public benefit certification requirements of section
152(b), each State shall consider the recommenda-
tions from the Joint Board required by paragraph
(1) prior to making the certification of competition
under subtitle F of the Public Utility Regulatory
Polcies Act of 1978. Thereafter, the States should
complete any proceeding to implement subsequent
recommendations from any Joint Board on universal
service within one year after receiving such rec-
ommendations.
(b) UNIVERSAL SERVICE PRINCIPLES.—The Joint
Board and the States should base policies for the preserva-
tion and advancement of universal service on the following
principles:
(1) QUALITY
AND
RATES.—Quality services
should be available at just, reasonable, and afford-
able rates.
(2) ACCESS TO ADVANCED SERVICES.—Access
to advanced electric services should be provided in
all regions of the Nation.
(3) ACCESS
IN
RURAL
AND
HIGH
COST
AREAS.—Consumers in all regions of the Nation, in-
cluding low-income consumers and those in rural, in-
sular, and high cost areas, should have access to
electric services, including advanced services, that
are reasonably comparable to those services provided
in urban areas within the same region and that are
available at rates that are reasonably comparable to
rates charged for similar services in such urban
areas. Nothing in this paragraph shall result in any
preference for centralized generation or for the ex-
tension of existing retail distribution facilities.
(4) EQUITABLE AND NONDISCRIMINATORY CON-
TRIBUTIONS.—All providers of electric services
should make an equitable and nondiscriminatory
contribution to the preservation and advancement of
universal service.
(5) SPECIFIC
AND
PREDICTABLE
SUPPORT
MECHANISMS.—There should be specific, predictable
and sufficient mechanisms to preserve and advance
universal service.