‘‘(E) CERTAIN
TRANSACTIONS
WITH
A 
UTILITY SPECIAL ENTITY.— 
‘‘(i) Transactions in utility operations- 
related swaps shall be reported pursuant to 
section 4r. 
‘‘(ii) In making a determination to ex-
empt pursuant to subparagraph (D), the 
Commission shall treat a utility operations- 
related swap entered into with a utility 
special entity, as defined in section 
4s(h)(2)(D), as if it were entered into with 
an entity that is not a special entity, as de-
fined in section 4s(h)(2)(C).’’. 
SEC. 3. UTILITY SPECIAL ENTITY DEFINED. 
Section 4s(h)(2) of the Commodity Exchange Act (7 
U.S.C. 6s(h)(2)) is amended by adding at the end the fol-
lowing: 
‘‘(D) UTILITY SPECIAL ENTITY.—For pur-
poses of this Act, the term ‘utility special enti-
ty’ means a special entity, or any instrumen-
tality, department, or corporation of or estab-
lished by a State or political subdivision of a 
State, that— 
‘‘(i) owns or operates, or anticipates 
owning or operating, an electric or natural 
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gas facility or an electric or natural gas 
operation; 
‘‘(ii) supplies, or anticipates sup-
plying, natural gas or electric energy to an-
other utility special entity; 
‘‘(iii) has, or anticipates having, pub-
lic service obligations under Federal, State, 
or local law or regulation to deliver electric 
energy or natural gas service to customers; 
or 
‘‘(iv) is a Federal power marketing 
agency, as defined in section 3 of the Fed-
eral Power Act.’’. 
SEC. 4. UTILITY OPERATIONS-RELATED SWAP. 
(a) 
SWAP
FURTHER
DEFINED.—Section 
1a(47)(A)(iii) of the Commodity Exchange Act (7 U.S.C. 
1a(47)(A)(iii)) is amended— 
(1) by striking ‘‘and’’ at the end of subclause 
(XXI); 
(2) by adding ‘‘and’’ at the end of subclause 
(XXII); and 
(3) by adding at the end the following: 
‘‘(XXIII) a utility operations-re-
lated swap;’’. 
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(b) UTILITY
OPERATIONS-RELATED
SWAP
DE-
FINED.—Section 1a of such Act (7 U.S.C. 1a) is amended 
by adding at the end the following: 
‘‘(52) UTILITY OPERATIONS-RELATED SWAP.— 
The term ‘utility operations-related swap’ means a 
swap that— 
‘‘(A) is entered into to hedge or mitigate a 
commercial risk; 
‘‘(B) is not a contract, agreement, or 
transaction based on, derived on, or ref-
erencing— 
‘‘(i) an interest rate, credit, equity, or 
currency asset class; 
‘‘(ii) except as used as fuel for electric 
energy generation, a metal, agricultural 
commodity, or crude oil or gasoline com-
modity of any grade; or 
‘‘(iii) any other commodity or category 
of commodities identified for this purpose 
in a rule or order adopted by the Commis-
sion in consultation with the appropriate 
Federal and State regulatory commissions; 
and 
‘‘(C) is associated with— 
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‘‘(i) the generation, production, pur-
chase, or sale of natural gas or electric en-
ergy, the supply of natural gas or electric 
energy to a utility, or the delivery of nat-
ural gas or electric energy service to utility 
customers; 
‘‘(ii) fuel supply for the facilities or 
operations of a utility; 
‘‘(iii) compliance with an electric sys-
tem reliability obligation; 
‘‘(iv) compliance with an energy, en-
ergy efficiency, conservation, or renewable 
energy or environmental statute, regula-
tion, or government order applicable to a 
utility; or 
‘‘(v) any other electric energy or nat-
ural gas swap to which a utility is a 
party.’’. 
Æ 
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