709 
tion that the Commission determines to be relevant and 
to add value for purchasers of wholesale power or those 
utilizing interstate transmission. The Tennessee Valley 
Authority, Bonneville Power Administration, and Federal 
power administrations shall, within 90 days of the adop-
tion of a final rule by the Commission, adopt it for their 
own sales or transmission of electricity. 
SEC. 9117. STATE CONSIDERATION OF INCENTIVES FOR 
SMART GRID. 
(a) CONSIDERATION OF ADDITIONAL STANDARDS.— 
Section 111(d) of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2621(d)) is amended by adding 
at the end: 
‘‘(16) UTILITY INVESTMENT IN SMART GRID IN-
VESTMENTS.—Each electric utility shall prior to un-
dertaking investments in non-advanced grid tech-
nologies demonstrate that alternative investments in 
advanced grid technologies have been considered, in-
cluding from a standpoint of cost-effectiveness, 
where such cost-effectiveness considers costs and 
benefits on a life-cycle basis. 
‘‘(17) UTILITY COST OF SMART GRID INVEST-
MENTS.—Each electric utility shall be permitted 
to— 
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‘‘(A) recover from ratepayers the capital 
and operating expenditures and other costs of 
the utility for qualified smart grid system, in-
cluding a reasonable rate of return on the cap-
ital expenditures of the utility for a qualified 
smart grid system, and 
‘‘(B) recover in a timely manner the re-
maining book-value costs of equipment rendered 
obsolete by the deployment of a qualified smart 
grid system, based on the remaining depreciable 
life of the obsolete equipment. 
‘‘(18) RATE DESIGN MODIFICATIONS TO PRO-
MOTE ENERGY EFFICIENCY INVESTMENTS.— 
‘‘(A) IN GENERAL.—The rates allowed to 
be charged by any electric utility shall— 
‘‘(i) align utility incentives with the 
delivery of cost-effective energy efficiency; 
and 
‘‘(ii) promote energy efficiency invest-
ments. 
‘‘(B) POLICY OPTIONS.—In complying with 
subparagraph (A), each State regulatory au-
thority and each nonregulated utility shall con-
sider— 
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‘‘(i) removing the throughput incen-
tive and other regulatory and management 
disincentives to energy efficiency; 
‘‘(ii) providing utility incentives for 
the successful management of energy effi-
ciency programs; 
‘‘(iii) including the impact on adoption 
of energy efficiency as 1 of the goals of re-
tail rate design, recognizing that energy ef-
ficiency must be balanced with other objec-
tives; 
‘‘(iv) adopting rate designs that en-
courage energy efficiency for each cus-
tomer class; and 
‘‘(v) allowing timely recovery of en-
ergy efficiency-related costs. 
‘‘(19) SMART GRID INFORMATION.— 
‘‘(A) 
STANDARD.—All 
electricity 
pur-
chasers shall be provided direct access, both in 
written and electronic machine-readable form, 
to information from their electricity provider as 
provided in subparagraph (B). 
‘‘(B) 
INFORMATION.—Information 
pro-
vided under this section shall conform to the 
standardized rules issued by the Commission on 
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712 
Grid Modernization under section 9116(b) of 
the Smart Grid Facilitation Act of 2007 and 
shall include: 
‘‘(i) PRICES.—Purchasers and other 
interested persons shall be provided with 
information on: 
‘‘(I) Time-based electricity prices 
in the wholesale electricity market; 
and 
‘‘(II) Time-based electricity retail 
prices or rates that are available to 
the purchasers. 
‘‘(ii) USAGE.—Purchasers shall be 
provided with the number of electricity 
units, expressed in kwh, purchased by 
them 
‘‘(iii) 
INTERVALS
AND
PROJEC-
TIONS.—Updates of information on prices 
and usage shall be offered on not less than 
a daily basis, shall include hourly price and 
use information, where available, and shall 
include a day-ahead projection of such 
price information to the extent available. 
‘‘(iv) 
SOURCES.—Purchasers 
and 
other interested person shall be provided 
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with written information on the sources of 
the power provided by the utility, to the 
extent it can be determined, by type of 
generation, including greenhouse gas emis-
sions and criteria pollutants associated 
each type of generation, for intervals dur-
ing which such information is available on 
a cost-effective basis, but not less than 
monthly. 
‘‘(C) ACCESS.—Purchasers shall be able to 
access their own information at any time 
through the internet and on other means of 
communication elected by that utility for Smart 
Grid applications. Other interested persons 
shall be able to access information not specific 
to any purchaser through the Internet. Infor-
mation specific to any purchaser shall be pro-
vided solely to that purchaser.’’. 
(b) RECONSIDERATION OF CERTAIN STANDARDS.— 
Section 112 of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2622) is amended by adding the fol-
lowing at the end thereof: 
‘‘(g) RECONSIDERATION
OF PRIOR TIME-OF-DAY 
AND COMMUNICATION STANDARDS.—Not later than 1 
year after the enactment of this subsection, each State 
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regulatory authority (with respect to each electric utility 
for which it has ratemaking authority) and each nonregu-
lated utility shall commence a reconsideration under sec-
tion 111, or set a hearing date for reconsideration, with 
respect to the standards established by paragraphs (3) 
and (14) of section 111(d) to take into account Smart 
Grid technologies. Not later than 2 years after the date 
of the enactment of this subsection, each State regulatory 
authority (with respect to each electric utility for which 
it has ratemaking authority), and each nonregulated elec-
tric utility, shall complete the reconsideration, and shall 
make the determination, referred to in section 111 with 
respect to the standards established by paragraphs (3) 
and (14) of section 111(d).’’. 
(c) COMPLIANCE.— 
(1) TIME LIMITATIONS.—Section 112(b) of the 
Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2622(b)) is amended by adding the following 
at the end thereof: 
‘‘(6)(A) Not later than 1 year after the enactment 
of this paragraph, but not less than 3 years after the con-
clusion of any prior review of such standards, each State 
regulatory authority (with respect to each electric utility 
for which it has ratemaking authority) and each nonregu-
lated utility shall commence the consideration referred to 
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