H. R. 6—371
classes, and provide individual customers upon customer 
request, a time-based rate schedule under which the rate 
charged by the electric utility varies during different time 
periods and reflects the variance, if any, in the utility’s costs 
of generating and purchasing electricity at the wholesale level. 
The time-based rate schedule shall enable the electric consumer 
to manage energy use and cost through advanced metering 
and communications technology. 
‘‘(B) The types of time-based rate schedules that may be 
offered under the schedule referred to in subparagraph (A) 
include, among others— 
‘‘(i) time-of-use pricing whereby electricity prices are 
set for a specific time period on an advance or forward 
basis, typically not changing more often than twice a year, 
based on the utility’s cost of generating and/or purchasing 
such electricity at the wholesale level for the benefit of 
the consumer. Prices paid for energy consumed during 
these periods shall be pre-established and known to con-
sumers in advance of such consumption, allowing them 
to vary their demand and usage in response to such prices 
and manage their energy costs by shifting usage to a lower 
cost period or reducing their consumption overall; 
‘‘(ii) critical peak pricing whereby time-of-use prices 
are in effect except for certain peak days, when prices 
may reflect the costs of generating and/or purchasing elec-
tricity at the wholesale level and when consumers may 
receive additional discounts for reducing peak period energy 
consumption; 
‘‘(iii) real-time pricing whereby electricity prices are 
set for a specific time period on an advanced or forward 
basis, reflecting the utility’s cost of generating and/or pur-
chasing electricity at the wholesale level, and may change 
as often as hourly; and 
‘‘(iv) credits for consumers with large loads who enter 
into pre-established peak load reduction agreements that 
reduce a utility’s planned capacity obligations. 
‘‘(C) Each electric utility subject to subparagraph (A) shall 
provide each customer requesting a time-based rate with a 
time-based meter capable of enabling the utility and customer 
to offer and receive such rate, respectively. 
‘‘(D) For purposes of implementing this paragraph, any 
reference contained in this section to the date of enactment 
of the Public Utility Regulatory Policies Act of 1978 shall be 
deemed to be a reference to the date of enactment of this 
paragraph. 
‘‘(E) In a State that permits third-party marketers to sell 
electric energy to retail electric consumers, such consumers 
shall be entitled to receive the same time-based metering and 
communications device and service as a retail electric consumer 
of the electric utility. 
‘‘(F) Notwithstanding subsections (b) and (c) of section 112, 
each State regulatory authority shall, not later than 18 months 
after the date of enactment of this paragraph conduct an inves-
tigation in accordance with section 115(i) and issue a decision 
whether it is appropriate to implement the standards set out 
in subparagraphs (A) and (C).’’.
H. R. 6—372
(b) STATE INVESTIGATION
OF DEMAND RESPONSE
AND TIME-
BASED METERING.—Section 115 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows: 
(1) By inserting in subsection (b) after the phrase ‘‘the 
standard for time-of-day rates established by section 111(d)(3)’’ 
the following: ‘‘and the standard for time-based metering and 
communications established by section 111(d)(14)’’. 
(2) By inserting in subsection (b) after the phrase ‘‘are 
likely to exceed the metering’’ the following: ‘‘and communica-
tions’’. 
(3) By adding at the end the following: 
‘‘(i) TIME-BASED METERING AND COMMUNICATIONS.—In making 
a determination with respect to the standard established by section 
111(d)(14), the investigation requirement of section 111(d)(14)(F) 
shall be as follows: Each State regulatory authority shall conduct 
an investigation and issue a decision whether or not it is appropriate 
for electric utilities to provide and install time-based meters and 
communications devices for each of their customers which enable 
such customers to participate in time-based pricing rate schedules 
and other demand response programs.’’. 
(c) FEDERAL
ASSISTANCE
ON
DEMAND
RESPONSE.—Section 
132(a) of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 2642(a)) is amended by striking ‘‘and’’ at the end of para-
graph (3), striking the period at the end of paragraph (4) and 
inserting ‘‘; and’’, and by adding the following at the end thereof: 
‘‘(5) technologies, techniques, and rate-making methods 
related to advanced metering and communications and the 
use of these technologies, techniques and methods in demand 
response programs.’’. 
(d) FEDERAL GUIDANCE.—Section 132 of the Public Utility Regu-
latory Policies Act of 1978 (16 U.S.C. 2642) is amended by adding 
the following at the end thereof: 
‘‘(d) DEMAND RESPONSE.—The Secretary shall be responsible 
for— 
‘‘(1) educating consumers on the availability, advantages, 
and benefits of advanced metering and communications tech-
nologies, including the funding of demonstration or pilot 
projects; 
‘‘(2) working with States, utilities, other energy providers 
and advanced metering and communications experts to identify 
and address barriers to the adoption of demand response pro-
grams; and 
‘‘(3) not later than 180 days after the date of enactment 
of the Energy Policy Act of 2005, providing Congress with 
a report that identifies and quantifies the national benefits 
of demand response and makes a recommendation on achieving 
specific levels of such benefits by January 1, 2007.’’. 
(e) DEMAND RESPONSE AND REGIONAL COORDINATION.— 
(1) IN
GENERAL.—It is the policy of the United States 
to encourage States to coordinate, on a regional basis, State 
energy policies to provide reliable and affordable demand 
response services to the public. 
(2) TECHNICAL ASSISTANCE.—The Secretary shall provide 
technical assistance to States and regional organizations formed 
by two or more States to assist them in— 
(A) identifying the areas with the greatest demand 
response potential;