I
103D CONGRESS
2D SESSION
H. R. 3790
To protect rural electric borrowers.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 3, 1994
Ms. LONG (for herself, Mr. SKELTON, and Mr. GUNDERSON) introduced the
following bill; which was referred to the Committee on Agriculture
A BILL
To protect rural electric borrowers.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Rural Consumer Pro-
tection Act of 1994’’.
SEC. 2. PROTECTION OF RURAL ELECTRIC BORROWERS.
The Rural Electrification Act of 1936 (7 U.S.C. 901
et seq.) is amended by inserting after section 16 the fol-
lowing:
‘‘SEC. 17. PROHIBITION AGAINST CURTAILMENT OR LIMITA-
TION OF SERVICES OF ELECTRIC BORROW-
ERS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b) of this section, section 306(b) of the Consolidated
Farm and Rural Development Act shall apply to a bor-
rower of an electric loan made or guaranteed under this
Act in the same manner in which such section applies to
an association referred to in such section.
‘‘(b) EXCEPTIONS.—
‘‘(1) WAIVER BY THE BORROWER.—A borrower
of an electric loan made or guaranteed under this
Act may agree to waive part or all of the protection
afforded by subsection (a).
‘‘(2) PUBLIC INTEREST.—
‘‘(A) IMPARTIAL FINDING.—A municipality
may curtail or limit the ability of a borrower of
a loan made or guaranteed under this Act to
provide electric service if an independent third
party, pursuant to this paragraph, determines
that the curtailment or limitation—
‘‘(i) is in the public interest;
‘‘(ii) will benefit consumers residing in
the area in which the curtailment or limi-
tation is to be imposed; and
‘‘(iii) will not adversely impact con-
sumers residing outside the area.
‘‘(B) 
USE
OF
INDEPENDENT
THIRD
PARTY.—If a borrower of a loan made or guar-
anteed under this Act does not agree to a re-
quest of a municipality to curtail or limit the
ability of the borrower to provide electric serv-
ice, the municipality may request the Governor
of the State to select an independent third
party to make the determination described in
subparagraph (A).
‘‘(C) SELECTION OF INDEPENDENT THIRD
PARTY.—Upon receipt of a request under sub-
paragraph (B), the Governor shall select as the
independent third party—
‘‘(i) the public utility commission of
the State if the public utility commission is
authorized under State law to make the re-
quested determination; or
‘‘(ii) any entity (including the public
utility commission of the State) qualified
to make the requested determination if the
Governor determines that the public utility
commission is not authorized under State
law to make the requested determination.
‘‘(D) DETERMINATION
OF
INDEPENDENT
THIRD PARTY IS BINDING.—Any determination
made by an independent third party selected in
accordance with subparagraph (C) with respect
to a request of a municipality to curtail or limit
the ability of a borrower to provide electric
service shall be binding upon the borrower and
the municipality.
‘‘(c) INTERPRETIVE RULE.—Subsection (a) shall not
be construed to prevent a municipality from imposing a
usual, customary, and nondiscriminatory fee on a bor-
rower of a loan made or guaranteed under this Act.’’.
Æ