‘‘(k) RELIABILITY REPORTS.—The electric reliability
organization shall conduct periodic assessments of the reli-
ability and adequacy of the interconnected bulk-power sys-
tem in North America and shall report annually to the
Secretary of Energy and the Commission its findings and
recommendations for monitoring or improving system reli-
ability and adequacy.
‘‘(l) ASSESSMENT
AND
RECOVERY
OF
CERTAIN
COSTS.—The reasonable costs of the electric reliability or-
ganization, and the reasonable costs of each affiliated re-
gional reliability entity that are related to implementation
and enforcement of organization standards or other re-
quirements contained in a delegation agreement approved
under subsection (h), shall be assessed by the electric reli-
ability organization and each affiliated regional reliability
entity, respectively, taking into account the relationship of
costs to each region and based on an allocation that re-
flects an equitable sharing of the costs among all end-
users. The Commission shall provide by rule for the review
of such costs and allocations, pursuant to the standards
in this subsection and subsection (d)(4)(F).
‘‘(m) APPLICATION OF ANTITRUST LAWS.—
‘‘(1) IN GENERAL.—To the extent undertaken
to develop, or implement, or enforce an organization
standard, each of the following activities shall not, in
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any action under the antitrust laws, be deemed ille-
gal per se:
‘‘(A) Activities undertaken by the electric
reliability organization under this section or af-
filiated regional reliability entity operating
under an agreement in effect under subsection
(h).
‘‘(B) Activities of a member of the electric
reliability organization or affiliated regional re-
liability entity in pursuit of organization objec-
tives under this section undertaken in good
faith under the rules of the organization.
Primary jurisdiction, and immunities and other af-
firmative defenses, shall be available to the extent
otherwise applicable.
‘‘(2) RULE OF REASON.—In any action under
the antitrust laws, an activity described in para-
graph (1) shall be judged on the basis of its reason-
ableness, taking into account all relevant factors af-
fecting competition and reliability.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘antitrust laws’ has the meaning
given such term 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
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Commission Act (15 U.S.C. 45) to the extent that
such section 5 applies to unfair methods of competi-
tion.
‘‘(n) SAVINGS CLAUSE.—Nothing in this section shall
be construed to preempt the authority of a State or a po-
litical subdivision of a State to ensure the reliability of
local distribution facilities within the State except where
the exercise of such authority unreasonably impairs the
reliability of the bulk power system.’’.
TITLE III—CONSUMER
PROTECTION
SEC. 301. ELECTRIC SUPPLIER INFORMATION DISCLOSURE.
(a) DISCLOSURE RULES.—Not later than January 1,
2001, the Federal Trade Commission shall promulgate
rules prescribing the form, placement, content, and timing
of the disclosure required under subsections (b) and (c)
of this section. Such rules shall be promulgated in accord-
ance with section 553 of title 5 of the United States Code,
after consultation with the Federal Energy Regulatory
Commission, the Secretary of Energy, and the Adminis-
trator of the Environmental Protection Agency.
(b) DISCLOSURE
TO
RETAIL
ELECTRIC
CON-
SUMERS.—In order to assist retail electric consumers in
making informed purchasing decisions, any retail electric
supplier that sells or makes an offer to sell electric energy,
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or solicits retail electric consumers to purchase electric en-
ergy, shall provide the retail electric consumers, in accord-
ance with rules promulgated under subsection (a), a state-
ment containing the following information:
(1)(A) The nature of the service being offered,
including information about interruptibility of serv-
ice.
(B) The price of electric energy, including a de-
scription of any variable charges.
(C) A description of all other charges that are
associated with the service being offered including,
but not limited to, access charges, exit charges,
back-up service charges, stranded cost recovery
charges, and customer service charges.
(D) Information concerning the product or
price that the Federal Trade Commission determines
is technologically and economically feasible to pro-
vide and is of assistance to retail electric consumers
in making purchasing decisions.
(2)(A) The share of electric energy that is gen-
erated by each type of energy generation resource.
(B) Information concerning generation emis-
sions characteristics that the Federal Trade Com-
mission determines is technologically and economi-
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cally feasible to provide and is of assistance to retail
electric consumers in making purchasing decisions.
(c) DISCLOSURE TO WHOLESALE PURCHASERS.—In
every sale of electric energy for resale, the seller shall pro-
vide to the purchaser such information respecting genera-
tion source and emissions characteristics as may be re-
quired by rules under subsection (a).
(d) 
FEDERAL
TRADE
COMMISSION
ENFORCE-
MENT.—Violation of a rule promulgated under this section
shall be treated as a violation of a rule under section 18
of the Federal Trade Commission Act (15 U.S.C. 57a).
All functions and powers of the Federal Trade Commis-
sion under such Act are available to the Federal Trade
Commission to enforce compliance with this section not-
withstanding any jurisdictional limitations in such Act.
(e) STATE AUTHORITY.—(1) This section does not
preclude a State or State commission from prescribing and
enforcing additional laws, regulations, or procedures re-
garding the practices which are the subject of this section,
so long as such laws, regulations, or procedures are not
inconsistent with the provisions of this section or with any
rule prescribed by the Federal Trade Commission pursu-
ant to it.
(2) The remedies provided by this section are in addi-
tion to any other remedies available by law.
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SEC. 302. CONSUMER PRIVACY.
(a) PROHIBITION.—The Federal Trade Commission
shall promulgate rules prohibiting any person who obtains
consumer information in connection with the sale or deliv-
ery of electric energy to a retail electric consumer from
using, disclosing, or permitting access to such information
unless the consumer to whom such information relates
provides prior written approval. Such rules shall be pro-
mulgated in accordance with section 553 of title 5 of the
United States Code.
(b) PERMITTED USE.—The rules under subsection
(a) shall not prohibit any person from using, disclosing,
or permitting access to consumer information referred to
in subsection (a) for any of the following purposes:
(1) To initiate, render, bill, or collect for the
sale or delivery of electric energy to retail electric
consumers or for related services.
(2) To protect the rights or property of the per-
son obtaining such information.
(3) To protect retail electric consumers from
fraud, abuse, and unlawful subscription in the sale
or delivery of electric energy to such consumers.
(4) For law enforcement purposes.
(5) For purposes of compliance with any Fed-
eral, State, or local law or regulation authorizing
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disclosure of information to a Federal, State, or
local agency.
(c) AGGREGATE
CONSUMER
INFORMATION.—The
rules under subsection (a) shall permit any person to use,
disclose, and permit access to aggregate consumer infor-
mation and shall require local distribution companies to
make such information available to retail electric suppliers
upon request and payment of a reasonable fee.
(d) 
FEDERAL
TRADE
COMMISSION
ENFORCE-
MENT.—Violation of a rule promulgated under this section
shall be treated as a violation of a rule under section 18
of the Federal Trade Commission Act (15 U.S.C. 57a).
All functions and powers of the Federal Trade Commis-
sion under such Act are available to the Federal Trade
Commission to enforce compliance with this section not-
withstanding any jurisdictional limitations in such Act.
(e) STATE AUTHORITY.—(1) This section does not
preclude a State or State commission from prescribing and
enforcing additional laws, regulations, or procedures re-
garding the practices which are the subject of this section,
so long as such laws, regulations, or procedures are not
inconsistent with the provisions of this section or with any
rule prescribed by the Federal Trade Commission pursu-
ant to it.
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(2) The remedies provided by this section are in addi-
tion to any other remedies available by law.
(f) DEFINITIONS.—As used in this section:
(1) AGGREGATE
CONSUMER
INFORMATION.—
The term ‘‘aggregate consumer information’’ means
collective data that relates to a group or category of
retail electric consumers, from which individual con-
sumer identities and characteristics have been re-
moved.
(2) CONSUMER INFORMATION.—The term ‘‘con-
sumer information’’ means information that relates
to the quantity, technical configuration, type, des-
tination, or amount of use of electric energy deliv-
ered to any retail electric consumer.
SEC. 303. ELECTRIC SUPPLY UNFAIR TRADE PRACTICES.
(a) SLAMMING.—(1) The Federal Trade Commission
shall promulgate rules in accordance with section 553 of
title 5 of the United States Code for the submittal and
verification of a retail electric consumer’s selection or
change in selection of a retail electric supplier and for the
assessment of penalties for violation of these rules.
(2) A person shall not submit or change the selection
made by a retail electric consumer except in accordance
with procedures established in paragraph (1).
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(b) CRAMMING.—(1) The Federal Trade Commission
shall promulgate rules in accordance with section 553 of
title 5 of the United States Code for obtaining the consent
of a retail electric consumer for purchase of goods and
services other than those expressly authorized by law or
any agreement for the purchase of electric energy or re-
lated services entered into by the electric consumer and
for the assessment of penalties for violation of these rules.
(2) A person shall not charge a retail electric con-
sumer for a particular good or service except in accordance
with procedures established in paragraph (1).
(c) FEDERAL TRADE COMMISSION ENFORCEMENT.—
Violation of a rule promulgated under this section shall
be treated as a violation of a rule under section 18 of the
Federal Trade Commission Act (15 U.S.C. 57a). All func-
tions and powers of the Federal Trade Commission under
such Act are available to the Federal Trade Commission
to enforce compliance with this section notwithstanding
any jurisdictional limitations in such Act.
(d) STATE AUTHORITY.—(1) This section does not
preclude a State or State commission from prescribing and
enforcing additional laws, regulations, or procedures re-
garding the practices which are the subject of this section,
so long as such laws, regulations, or procedures are not
inconsistent with the provisions of this section or with any
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rule prescribed by the Federal Trade Commission pursu-
ant to it.
(2) The remedies provided by this section are in addi-
tion to any other remedies available by law.
SEC. 304. UNIVERSAL AND AFFORDABLE SERVICE.
It is the sense of the Congress that—
(1) every retail electric consumer should have
access to electric energy at reasonable and afford-
able rates; and
(2) the States should ensure that retail electric
competition does not result in the loss of service to
rural, residential, or low-income consumers.
SEC. 305. DEFINITIONS.
For purposes of this title, each of the terms ‘‘local
distribution company’’, ‘‘retail electric consumer’’, ‘‘retail
electric supplier’’, and ‘‘State commission’’ has the mean-
ing given such term in section 3 of the Federal Power Act.
TITLE IV—MERGERS
SEC. 401. ELECTRIC COMPANY MERGERS AND DISPOSITION
OF PROPERTY.
(a) IN GENERAL.—Section 203(a) of the Federal
Power Act (16 U.S.C. 824b(a)) is amended as follows:
(1) By striking ‘‘public utility’’ each place it ap-
pears and inserting ‘‘electric utility or transmitting
utility’’.
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(2) By striking ‘‘facilities subject to the juris-
diction of the Commission,’’ and inserting ‘‘genera-
tion or transmission facilities,’’.
(3) By inserting the following after the first
sentence: ‘‘Except as the Commission otherwise pro-
vides, a holding company in a holding company sys-
tem that includes an electric utility company shall
not, directly or indirectly, purchase, acquire, or take
any security of an electric utility company or of a
holding company in a holding company system that
includes an electric utility company, without first se-
curing an order of the Commission authorizing it to
do so.’’.
(4) By amending the last sentence to read as
follows: ‘‘After notice and a 60-day opportunity for
oral or written presentation of views, the Commis-
sion shall approve the proposed action if the Com-
mission finds that such action will be consistent with
the public interest. Such finding shall include consid-
eration of the effects on competition in wholesale
and retail markets. The Commission shall approve
or disapprove such action within 90 days after such
60-day period, except that the Commission may ex-
tend such 90-day period for an additional 90 days
for good cause.’’.
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(5) By adding at the end the following: ‘‘For
purposes of this subsection, the terms ‘electric utility
company’, ‘holding company’, and ‘holding company
system’ have the meanings given those terms by sec-
tion 512 of the Electricity Competition and Reli-
ability Act. Notwithstanding sections 201(b)(1) and
201(f), generation and transmission facilities shall
be subject to the jurisdiction of the Commission for
purposes of this section.’’.
(b) DEFINITION
OF ELECTRIC UTILITY.—Section
3(22) of the Federal Power Act (16 U.S.C. 796(22)) is
amended by striking ‘‘, but does not include any’’ and in-
serting ‘‘and each’’.
SEC. 402. ELIMINATION OF REVIEW BY THE NUCLEAR REG-
ULATORY COMMISSION.
Section 105 of the Atomic Energy Act of 1954 (42
U.S.C. 2135) is amended by adding the following after
subsection c.:
‘‘d. Following the date of enactment of this sub-
section, subsection 105 c. shall not apply to any pending
or future application filed for a license to construct or op-
erate a utilization or production facility under sections
103 or 104 b. This subsection shall not affect the Commis-
sion’s authority to enforce conditions included in licenses
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issued under sections 103 or 104 b. before the date of
enactment of this subsection.’’.
TITLE V—PROMOTING
COMPETITION
Subtitle A—Retail Reciprocity
SEC. 501. RETAIL RECIPROCITY.
(a) IN GENERAL.—Part II of the Federal Power Act
(16 U.S.C. 824 and following) is amended by adding at
the end the following section:
‘‘SEC. 218. RETAIL RECIPROCITY.
‘‘(a) IN GENERAL.—A retail electric supplier shall
not sell electric energy to any retail electric consumer
through local distribution facilities owned, controlled, or
operated by another entity unless all local distribution fa-
cilities owned, controlled, or operated by the retail electric
supplier, or any affiliate thereof, are subject to open ac-
cess. The preceding sentence shall not apply to any retail
electric supplier specifically exempted, by State law en-
acted prior to the date of enactment of this section, from
State reciprocity requirements. In the case of local dis-
tribution facilities that are owned, controlled, or operated
by a State regulated electric utility and that are not sub-
ject to open access, for purposes of this subsection such
local distribution facilities shall be deemed to be subject
to open access if the State regulated electric utility has
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filed with the State commission a plan to provide, within
two years after the date of such filing, open access to such
facilities.
‘‘(b) FOREIGN COMMERCE.—A retail electric supplier
located in a foreign country which is a party to the North
American Free Trade Agreement shall not sell electric en-
ergy to retail electric consumers in the United States
through local distribution facilities owned, controlled, or
operated by a local distribution company in the United
States unless all local distribution facilities owned, con-
trolled, or operated by the retail electric supplier, or any
affiliate thereof, and located in such country are subject
to open access.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect one year after the date of
the enactment of this Act.
Subtitle B—Public Utility Holding
Company Act of 1935
SEC. 511. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘affiliate’’ of a company means
any company 5 percent or more of the outstanding
voting securities of which are owned, controlled, or
held with power to vote, directly or indirectly, by
such company.
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(2) The term ‘‘associate company’’ of a com-
pany means any company in the same holding com-
pany system with such company.
(3) The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(4) The term ‘‘company’’ means a corporation,
partnership, association, joint stock company, busi-
ness trust, or any organized group of persons,
whether incorporated or not, or a receiver, trustee,
or other liquidating agent of any of the foregoing.
(5) The term ‘‘electric utility company’’ means
any company that owns or operates facilities used
for the generation, transmission, or distribution of
electric energy for sale.
(6) The terms ‘‘exempt wholesale generator’’
and ‘‘foreign utility company’’ have the same mean-
ings as in sections 32 and 33, respectively, of the
Public Utility Holding Company Act of 1935, as
those sections existed on the day before the effective
date of this subtitle.
(7) The term ‘‘gas utility company’’ means any
company that owns or operates facilities used for
distribution at retail (other than the distribution
only in enclosed portable containers or distribution
to tenants or employees of the company operating
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such facilities for their own use and not for resale)
of natural or manufactured gas for heat, light, or
power.
(8) The term ‘‘holding company’’ means—
(A) any company that directly or indirectly
owns, controls, or holds, with power to vote, 10
percent or more of the outstanding voting secu-
rities of a public utility company or of a holding
company of any public utility company; and
(B) any person, determined by the Com-
mission, after notice and opportunity for hear-
ing, to exercise directly or indirectly (either
alone or pursuant to an arrangement or under-
standing with one or more persons) such a con-
trolling influence over the management or poli-
cies of any public utility company or holding
company as to make it necessary or appropriate
for the protection of utility customers with re-
spect to rates that such person be subject to the
obligations, duties, and liabilities imposed by
this subtitle upon holding companies.
(9) The term ‘‘holding company system’’ means
a holding company, together with its subsidiary com-
panies.
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(10) The term ‘‘jurisdictional rates’’ means
rates established by the Commission for the trans-
mission of electric energy in interstate commerce,
the sale of electric energy at wholesale in interstate
commerce, the transportation of natural gas in inter-
state commerce, and the sale in interstate commerce
of natural gas for resale for ultimate public con-
sumption for domestic, commercial, industrial, or
any other use.
(11) The term ‘‘natural gas company’’ means a
person engaged in the transportation of natural gas
in interstate commerce or the sale of such gas in
interstate commerce for resale.
(12) The term ‘‘person’’ means an individual or
company.
(13) The term ‘‘public utility’’ means any per-
son who owns or operates facilities used for trans-
mission of electric energy in interstate commerce or
sales of electric energy at wholesale in interstate
commerce.
(14) The term ‘‘public utility company’’ means
an electric utility company or a gas utility company.
(15) The term ‘‘State commission’’ means any
commission, board, agency, or officer, by whatever
name designated, of a State, municipality, or other
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political subdivision of a State that, under the laws
of such State, has jurisdiction to regulate public util-
ity companies.
(16) The term ‘‘subsidiary company’’ of a hold-
ing company means—
(A) any company, 10 percent or more of
the outstanding voting securities of which are
directly or indirectly owned, controlled, or held
with power to vote, by such holding company;
and
(B) any person, the management or poli-
cies of which the Commission, after notice and
opportunity for hearing, determines to be sub-
ject to a controlling influence, directly or indi-
rectly, by such holding company (either alone or
pursuant to an arrangement or understanding
with one or more other persons) so as to make
it necessary for the protection of utility cus-
tomers with respect to rates that such person
be subject to the obligations, duties, and liabil-
ities imposed by this subtitle upon subsidiary
companies of holding companies.
(17) The term ‘‘voting security’’ means any se-
curity presently entitling the owner or holder thereof
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to vote in the direction or management of the affairs
of a company.
SEC. 512. REPEAL OF THE PUBLIC UTILITY HOLDING COM-
PANY ACT OF 1935.
The Public Utility Holding Company Act of 1935 (15
U.S.C. 79a and following) is repealed, effective 12 months
after the date of enactment of this Act.
SEC. 513. FEDERAL ACCESS TO BOOKS AND RECORDS.
(a) IN GENERAL.—Each holding company and each
associate company thereof shall maintain, and shall make
available to the Commission, such books, accounts, memo-
randa, and other records as the Commission determines
are necessary to identify costs incurred by a public utility
or natural gas company that is an associate company of
such holding company and necessary or appropriate for
the protection of utility customers with respect to jurisdic-
tional rates.
(b) AFFILIATE COMPANIES.—Each affiliate of a hold-
ing company or of any subsidiary company of a holding
company shall maintain, and make available to the Com-
mission, such books, accounts, memoranda, and other
records with respect to any transaction with another affil-
iate, as the Commission determines are necessary to iden-
tify costs incurred by a public utility or natural gas com-
pany that is an associate company of such holding com-
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pany and necessary or appropriate for the protection of
utility customers with respect to jurisdictional rates.
(c) HOLDING COMPANY SYSTEMS.—The Commission
may examine the books, accounts, memoranda, and other
records of any company in a holding company system, or
any affiliate thereof, as the Commission determines are
necessary to identify costs incurred by a public utility or
natural gas company within such holding company system
and necessary or appropriate for the protection of utility
customers with respect to jurisdictional rates.
(d) CONFIDENTIALITY.—No member, officer, or em-
ployee of the Commission shall divulge any fact or infor-
mation that may come to his or her knowledge during the
course of examination of books, accounts, memoranda, or
other records as provided in this section, except as may
be directed by the Commission or by a court of competent
jurisdiction.
SEC. 514. STATE ACCESS TO BOOKS AND RECORDS.
(a) IN GENERAL.—Upon the written request of a
State commission having jurisdiction to regulate a public
utility company in a holding company system, and subject
to such terms and conditions as may be necessary and ap-
propriate to safeguard against unwarranted disclosure to
the public of any trade secrets or sensitive commercial in-
formation, a holding company or its associate company or
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affiliate thereof, wherever located, shall produce for in-
spection books, accounts, memoranda, and other records
that—
(1) have been identified in reasonable detail in
a proceeding before the State commission;
(2) the State commission determines are nec-
essary to identify costs incurred by such public util-
ity company; and
(3) are necessary for the effective discharge of
the responsibilities of the State commission with re-
spect to such proceeding.
(b) EFFECT ON STATE LAW.—Nothing in this section
shall preempt applicable State law concerning the provi-
sion of books, accounts, memoranda, or other records, or
in any way limit the rights of any State to obtain books,
accounts, memoranda, or other records under Federal law,
contract, or otherwise.
(c) COURT JURISDICTION.—Any United States dis-
trict court located in the State in which the State commis-
sion referred to in subsection (a) is located shall have ju-
risdiction to enforce compliance with this section.
SEC. 515. EXEMPTION AUTHORITY.
(a) RULEMAKING.—Not later than 90 days after the
date of enactment of this Act, the Commission shall pro-
mulgate a final rule to exempt from the requirements of
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section 514 any person that is a holding company, solely
with respect to one or more—
(1) qualifying facilities under the Public Utility
Regulatory Policies Act of 1978;
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) OTHER AUTHORITY.—If, upon application or
upon its own motion, the Commission finds that the books,
accounts, memoranda, and other records of any person are
not relevant to the jurisdictional rates of a public utility
company or natural gas company, or if the Commission
finds that any class of transactions is not relevant to the
jurisdictional rates of a public utility company, the Com-
mission shall exempt such person or transaction from the
requirements of section 514.
SEC. 516. AFFILIATE TRANSACTIONS.
Nothing in this subtitle shall preclude the Commis-
sion or a State commission from exercising its jurisdiction
under otherwise applicable law to determine whether a
public utility company, public utility, or natural gas com-
pany may recover in rates any costs of an activity per-
formed by an associate company, or any costs of goods
or services acquired by such public utility company from
an associate company.
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SEC. 517. APPLICABILITY.
No provision of this subtitle shall apply to, or be
deemed to include—
(1) the United States;
(2) a State or any political subdivision of a
State;
(3) any foreign governmental authority not op-
erating in the United States;
(4) any agency, authority, or instrumentality of
any entity referred to in paragraph (1), (2), or (3);
or
(5) any officer, agent, or employee of any entity
referred to in paragraph (1), (2), or (3) acting as
such in the course of his or her official duty.
SEC. 518. EFFECT ON OTHER REGULATIONS.
Nothing in this subtitle precludes the Commission or
a State commission from exercising its jurisdiction under
otherwise applicable law to protect utility customers.
SEC. 519. ENFORCEMENT.
The Commission shall have the same powers as set
forth in sections 306 through 317 of the Federal Power
Act (16 U.S.C. 825e–825p) to enforce the provisions of
this subtitle.
SEC. 520. SAVINGS PROVISIONS.
(a) IN GENERAL.—Nothing in this subtitle prohibits
a person from engaging in or continuing to engage in ac-
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tivities or transactions in which it is legally engaged or
authorized to engage on the date of enactment of this Act
, if that person continues to comply with the terms of any
such authorization, whether by rule or by order.
(b) EFFECT ON OTHER COMMISSION AUTHORITY.—
Nothing in this subtitle limits the authority of the Com-
mission under the Federal Power Act (16 U.S.C. 791a and
following) (including section 301 of that Act) or the Nat-
ural Gas Act (15 U.S.C. 717 and following) (including sec-
tion 8 of that Act).
SEC. 521. IMPLEMENTATION.
Not later than 12 months after the date of enactment
of this Act, the Commission shall—
(1) promulgate such regulations as may be nec-
essary or appropriate to implement this subtitle; and
(2) submit to the Congress detailed rec-
ommendations on technical and conforming amend-
ments to Federal law necessary to carry out this
subtitle and the amendments made by this subtitle.
SEC. 522. TRANSFER OF RESOURCES.
All books and records that relate primarily to the
functions transferred to the Commission under this sub-
title shall be transferred from the Securities and Exchange
Commission to the Commission.
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SEC. 523. EFFECTIVE DATE.
This subtitle shall take effect 12 months after the
date of enactment of this Act.
SEC. 524. CONFORMING AMENDMENT TO THE FEDERAL
POWER ACT.
Section 318 of the Federal Power Act (16 U.S.C.
825q) is repealed.
Subtitle C—Public Utility
Regulatory Policies Act of 1978
SEC. 531. PROSPECTIVE REPEAL.
(a) NEW CONTRACTS.—After the date of enactment
of this Act, no electric utility shall be required to enter
into a new contract or obligation to purchase or to sell
electric energy or capacity pursuant to section 210 of the
Public Utility Regulatory Policies Act of 1978.
(b) EXISTING RIGHTS
AND REMEDIES NOT AF-
FECTED.—Nothing in this section affects the rights or
remedies of any party with respect to the purchase or sale
of electric energy or capacity from or to a facility deter-
mined to be a qualifying small power production facility
or a qualifying cogeneration facility under section 210 of
the Public Utility Regulatory Policies Act of 1978 pursu-
ant to any contract or obligation to purchase or to sell
electric energy or capacity in effect on the date of the en-
actment of this Act, including the right to recover the
costs of purchasing such electric energy or capacity.
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(c) INTERPRETATIONS AND ACTIONS TAKEN.—Noth-
ing in this subtitle may be deemed or construed as imply-
ing congressional ratification of any interpretation of, or
any action taken pursuant to, the Public Utility Regu-
latory Policies Act of 1978.
SEC. 532. RECOVERY OF COSTS.
In order to assure recovery by electric utilities pur-
chasing electric energy or capacity from a qualifying facil-
ity pursuant to any legally enforceable obligation entered
into or imposed pursuant to section 210 of the Public Util-
ity Regulatory Policies Act of 1978 prior to the date of
enactment of this Act of all costs associated with such pur-
chases, the Federal Energy Regulatory Commission shall
promulgate and enforce such regulations as may be re-
quired to assure that no utility shall be required directly
or indirectly to absorb the costs associated with such pur-
chases from a qualifying facility after the date of the en-
actment of this Act. Such regulations shall be treated as
a rule enforceable under the Federal Power Act (16
U.S.C. 791a–825r).
SEC. 533. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘electric utility’’ means any per-
son, State agency, or Federal agency, which sells
electric energy.
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(2) The term ‘‘qualifying small power produc-
tion facility’’ has the same meaning as provided in
section 3(17)(C) of the Federal Power Act.
(3) The term ‘‘qualifying cogeneration facility’’
has the same meaning as provided in section
3(18)(A) of the Federal Power Act.
(4) The term ‘‘qualifying facility’’ means either
a qualifying small power production facility or a
qualifying cogeneration facility.
Subtitle D—Additional Provisions
Promoting Competition
SEC. 541. AGGREGATION.
Part II of the Federal Power Act (16 U.S.C. 824 and
following) is amended by adding at the end the following
section:
‘‘SEC. 221. PURCHASE OF ELECTRIC ENERGY BY RETAIL
ELECTRIC CONSUMERS.
‘‘Notwithstanding any other provision of Federal or
State law, and subject to not unduly discriminatory or
preferential State requirements imposed on retail electric
suppliers, a group of retail electric consumers or any enti-
ty that aggregates consumers acting on behalf of such
group, including a political subdivision of a State or a
rural electric cooperative, may acquire retail electric en-
ergy on an aggregate basis if the group is served by one
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or more local distribution companies all of whose local dis-
tribution facilities are subject to open access.’’.
SEC. 542. INTERCONNECTION.
(a) DISTRIBUTED GENERATION FACILITIES.—Sec-
tion 210 of the Federal Power Act is amended by adding
the following at the end thereof:
‘‘(f) SPECIAL RULE FOR DISTRIBUTED GENERATION
FACILITIES.—
‘‘(1) DEFINITION.—As used in this subsection
the term ‘distributed generation facility’ means an
electric power generation facility of not more than
50 megawatts capacity that is designed to serve re-
tail electric consumers at the facility.
‘‘(2) INTERCONNECTION.—A local distribution
company shall allow a distributed generation facility
to interconnect with the local distribution facilities of
such company if the distributed generation facility
owner is a retail electric consumer provided local dis-
tribution service by such company and such owner
complies with the final rule promulgated under para-
graph (3).
‘‘(3) RULES.—Within one year from the date of
enactment of this subsection, the Commission shall
promulgate a final rule to establish safety, reli-
ability, and power quality standards relating to dis-
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tributed generation facilities. To the extent feasible,
the Commission shall develop the standards through
a process involving interested parties. For purposes
of developing such standards, the Commission shall
establish an advisory committee composed of quali-
fied experts to make recommendations to the Com-
mission’’.
(b) INTERCONNECTION
OF OTHER FACILITIES.—
Section 210 of the Federal Power Act is amended as fol-
lows:
(1) 
In 
subsection 
(a)(1) 
(16 
U.S.C.
824i(a)(1))—
(A) by inserting ‘‘transmitting utility, local
distribution companies’’ after ‘‘electric utility,’’;
(B) by inserting ‘‘any transmitting utility,’’
after ‘‘small power production facility,’’ in sub-
paragraph (A); and
(C) by inserting ‘‘or distribution’’ after
‘‘transmission’’ in subparagraph (D).
(2) In subsection (b)(2) (16 U.S.C. 824i(b)(2))
by striking ‘‘an evidentiary hearing’’ and inserting
‘‘a hearing’’.
(3) In subsection (c)(2) strike ‘‘or’’ at the end
of subparagraph (B), strike ‘‘and’’ the end of sub-
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paragraph (C) and insert ‘‘or’’, and add the fol-
lowing at the end thereof:
‘‘(D) promote competition in electricity
markets, and’’.
(4) In subsection (d) by deleting the last sen-
tence.
TITLE VI—FEDERAL ELECTRIC
UTILITIES
Subtitle A—Tennessee Valley
Authority
SEC. 601. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(2) The term ‘‘distributor’’ means a municipal
or cooperative organization that owns, controls, or
operates local distribution facilities and which on
January 2, 1998, purchased electric power at whole-
sale from the Tennessee Valley Authority under an
all-requirements contract.
(3) The term ‘‘distributor service area’’ means
the geographic area within which a distributor is au-
thorized by State law to sell electric power to retail
electric consumers on the date of enactment of this
Act.
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(4) The term ‘‘electric utility’’ has the same
meaning as provided by section 3(22) of the Federal
Power Act (16 U.S.C. 796(22)).
(5) The term ‘‘excess electric power’’ means
that portion of the electric power and capacity that
is available to the Tennessee Valley Authority and
which exceeds the Tennessee Valley Authority’s firm
power supply obligations under contracts entered
into in accordance with sections 10, 11, and 12 of
the Tennessee Valley Authority Act of 1933 (16
U.S.C. 831i, 831j, and 831k).
(6) The term ‘‘public utility’’ has the same
meaning as provided by section 201(e)(1) of the
Federal Power Act (16 U.S.C. 824(e)(1)).
(7) The term ‘‘retail electric consumer’’ has the
same meaning as provided by section 3 of the Fed-
eral Power Act (16 U.S.C. 796).
(8) The term ‘‘Tennessee Valley Region’’ means
the geographic area in which the Tennessee Valley
Authority or its distributors were the primary source
of electric power on the date of enactment of this
Act.
SEC. 602. WHOLESALE COMPETITION IN THE TENNESSEE
VALLEY REGION.
(a) AMENDMENTS TO THE FEDERAL POWER ACT.—
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(1) Section 212(f) of the Federal Power Act
(16 U.S.C. 824k(f)), relating to interconnection or
wheeling orders that result in the sale or delivery of
electric power outside the Tennessee Valley Region,
is repealed.
(2) Section 212(j) of the Federal Power Act
(16 U.S.C. 824k(j)), relating to transmission within
the Tennessee Valley Region, is repealed.
(b) AMENDMENTS TO THE TENNESSEE VALLEY AU-
THORITY ACT.—(1) The third sentence of the first para-
graph of section 15d(a) of the Tennessee Valley Authority
Act of 1933 (16 U.S.C. 831n–4(a)), limiting the sale or
delivery of electric power outside the area for which the
Tennessee Valley Authority or its distributors were the
primary source of electric power on July 1, 1957, is re-
pealed.
(2) The second and third paragraphs of section
15d(a) of the Tennessee Valley Authority Act of 1933 (16
U.S.C. 831n–4(a)) are repealed.
SEC. 603. TENNESSEE VALLEY AUTHORITY POWER SALES.
(a) LIMIT ON RETAIL SALES BY TENNESSEE VALLEY
AUTHORITY.—Notwithstanding sections 10, 11, and 12 of
the Tennessee Valley Authority Act (16 U.S.C. 831i), the
Tennessee Valley Authority shall not sell electric power at
retail, except it may sell power to—
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(1) a retail electric consumer (or predecessor in
interest) that had a contract for the purchase of
electric power from the Tennessee Valley Authority
on the date of enactment of this Act; or
(2) a retail electric consumer who consumes
that power within a distributor service area, if—
(A) the distributor’s firm power purchases
from the Tennessee Valley Authority are 50
percent or less of the distributor’s total retail
sales; or
(B) the distributor agrees that the Ten-
nessee Valley Authority can sell electric power
to such retail electric consumer.
(b) REGIONAL
PREFERENCE
FOR
WHOLESALE
POWER SALES.—
(1) REGIONAL PREFERENCE.—Notwithstanding
sections 10, 11, and 12, or any other provision of
the Tennessee Valley Authority Act of 1933 (16
U.S.C. 831 and following), the sale of electric power
at wholesale by the Tennessee Valley Authority for
use outside the Tennessee Valley Region shall be
limited to excess electric power.
(2) SALES OF EXCESS ELECTRIC POWER.—The
Tennessee Valley Authority shall not offer firm ex-
cess power under an agreement with a term of three
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years or longer to a new wholesale customer at
rates, terms, and conditions more favorable than
those offered to any distributor for comparable
power, taking into account such factors as the
amount of power sold, the firmness of such power,
and the length of the contract term unless the dis-
tributor or distributors that are purchasing power
under equivalent firm power contracts agree to the
sale to the new customer.
Nothing in this subsection shall prevent the Tennessee
Valley Authority from making exchange power arrange-
ments with other electric utilities when economically fea-
sible.
(c) REGULATION
OF
TVA WHOLESALE
POWER
SALES.—Notwithstanding section 201(f) of the Federal
Power Act, sections 202(h), 205, 206, 208, and 210
through 213 and sections 301 through 304, 306, 307 (ex-
cept the last sentence of paragraph (c)), 308, 309, 313,
and 317 of the Federal Power Act apply to sales of electric
power at wholesale by the Tennessee Valley Authority for
use outside the Tennessee Valley Region to the same ex-
tent and in the same manner as such provisions apply to
wholesale sales of electric power in interstate commerce
by a public utility otherwise subject to the jurisdiction of
the Commission under part II of such Act.
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(d) APPLICATION OF TENNESSEE VALLEY AUTHOR-
ITY ACT TO SALES OUTSIDE TENNESSEE VALLEY RE-
GION.—The third proviso of section 10 of the Tennessee
Valley Authority Act of 1933 (16 U.S.C. 831i) and the
second and third provisos of section 12 of the Tennessee
Valley Authority Act of 1933 (16 U.S.C. 831k) shall not
apply to any sale of excess electric power by the Tennessee
Valley Authority for use outside the Tennessee Valley Re-
gion.
SEC. 604. TENNESSEE VALLEY AUTHORITY ELECTRIC GEN-
ERATION FACILITIES.
Section 15(d) of the Tennessee Valley Authority Act
of 1933 (16 U.S.C. 831n–4(a)) is amended by striking
the period at the end of the second sentence and inserting
the following: ‘‘, if the Corporation determines the con-
struction, acquisition, enlargement, improvement, or re-
placement of any plant or facility used or to be used for
the generation of electric power that is necessary to supply
the demands of distributors (as defined in section 601 of
the Electricity Competition and Reliability Act) and retail
electric consumers (as defined in such section 601) of the
Corporation.’’.
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SEC. 605. RENEGOTIATION OF ALL-REQUIREMENTS POWER
CONTRACTS.
(a) RENEGOTIATION.—Within one year following the
date of enactment of this Act, the Tennessee Valley Au-
thority and the distributors shall renegotiate their existing
all-requirements power contracts with respect to—
(1) the remaining term;
(2) the length of the termination notice;
(3) the amount of electric power a distributor
may purchase from an electric utility other than the
Tennessee Valley Authority, and access to the Ten-
nessee Valley Authority transmission system for that
electric power; and
(4) stranded cost recovery.
(b) RESOLUTION.—If the parties are unable to reach
agreement with regard to any of the issues under sub-
section (a) within the one-year period set forth in sub-
section (a), the distributor shall have the right to termi-
nate the contract upon not less than three years notice.
SEC. 606. REGULATION OF TENNESSEE VALLEY AUTHORITY
TRANSMISSION SYSTEM.
(a) FEDERAL POWER ACT JURISDICTION.—Notwith-
standing sections 201(b)(1) and 201(f) of the Federal
Power Act, sections 202(h), 205, 206, 208, and 210
through 213 and sections 301 through 304, 306, 307 (ex-
cept the last sentence of paragraph (c)), 308, 309, 313,
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and 317 of the Federal Power Act apply to the trans-
mission and local distribution of electric power by the Ten-
nessee Valley Authority to the same extent and in the
same manner as such provisions apply to the transmission
of electric power in interstate commerce by a public utility
otherwise subject to the jurisdiction of the Commission
under part II of such Act.
(b) RATE PHASE-IN.—If the Commission determines
that the initial application of this subtitle in the develop-
ment of any Tennessee Valley Authority rates for trans-
mission services would result in an excessive increase in
any rate, as determined by the Commission, the Commis-
sion may phase in the effect of the application of this sub-
title to such rate over a reasonable period of time.
SEC. 607. REGULATION OF TENNESSEE VALLEY AUTHORITY
DISTRIBUTORS.
(a) REPEAL
OF TENNESSEE VALLEY AUTHORITY
REGULATION OF DISTRIBUTORS.—Upon the election of a
distributor, the third proviso of section 10 of the Ten-
nessee Valley Authority Act of 1933 (16 U.S.C. 831i) and
the second and third provisos of section 12 of the Ten-
nessee Valley Authority Act of 1933 (16 U.S.C. 831k)
shall not apply to future wholesale sales of electric power
by the Tennessee Valley Authority in the Tennessee Valley
Region, and the Tennessee Valley Authority shall not be
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authorized to regulate, by means of rules, contract provi-
sions, resale rate schedules, contract termination rights,
or any other method, any rates, terms, or conditions im-
posed on the resale of such electric power by such dis-
tributor, or any rates, terms, or conditions for the use of
local distribution facilities. In any contract between the
Tennessee Valley Authority and a distributor for the pur-
chase of at least 70 percent of the distributor’s require-
ments for the sale of electric power, the Tennessee Valley
Authority shall include such terms and conditions as may
be reasonably necessary to assure that the financial bene-
fits of a distributor’s electric system operations are allo-
cated to the distributor’s ratepayers.
(b) REMOVAL OF PURPA RATEMAKING AUTHOR-
ITY.—Section 3(17) of the Public Utility Regulatory Poli-
cies Act of 1978 (16 U.S.C. 2602(17)) is amended by
striking ‘‘, and in the case of an electric utility with re-
spect to which the Tennessee Valley Authority has rate-
making authority, such term means the Tennessee Valley
Authority’’.
(c) AUTHORITY
OF GOVERNING BODIES
OF DIS-
TRIBUTORS.—Any regulatory authority exercised by the
Tennessee Valley Authority over any distributor shall be
exercised by the governing body of such distributor, in ac-
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cordance with the laws of the State in which it is orga-
nized.
SEC. 608. STRANDED COST RECOVERY.
(a) IN GENERAL.—Within six months after the date
of enactment of this Act, or sooner as part of any distribu-
tors renegotiation of its contract under section 605, the
Tennessee Valley Authority shall make a good faith effort
to reach agreement with distributors for recovery of its
stranded costs. The Tennessee Valley Authority and the
distributors shall submit jointly, or if they disagree, sub-
mit separately, a stranded cost recovery plan to the Com-
mission for review. The Commission shall approve, reject,
or modify the plan and issue an order within one year of
the date of enactment of this Act, to provide for recovery
of stranded costs (as determined by the Commission) by
the Tennessee Valley Authority from any departing power
or transmission customer. These regulations shall provide
that customers that did not cause stranded costs to be
incurred by the Tennessee Valley Authority are not obli-
gated to pay such costs on behalf of other customers. The
Tennessee Valley Authority is authorized to recover such
of its stranded costs as are approved by the Commission.
The Commission may not impose a stranded cost recovery
charge after September 30, 2007, unless the person
against whom such charges are assessed agrees otherwise.
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(b) DEBT.—Amounts recovered by the Tennessee
Valley Authority as stranded cost recovery charges shall
be used to pay down Tennessee Valley Authority’s debt
to the extent determined by the Tennessee Valley Author-
ity Board to be consistent with the proper financial man-
agement of the Tennessee Valley Authority power system,
provided that Tennessee Valley Authority may not use
amounts recovered to pay for additions to the Tennessee
Valley Authority’s generating capacity.
(c) UNBUNDLING.—Any stranded cost recovery
charges assessed by the Tennessee Valley Authority on re-
tail or wholesale customers or assessed on retail customers
of distributors shall be unbundled from the otherwise ap-
plicable retail or wholesale rate applicable to that customer
and stated on the customer’s bill as a separate charge.
(d) REPORT.—Beginning in fiscal year 2003, as part
of the annual management report submitted by the Ten-
nessee Valley Authority to Congress, the Tennessee Valley
Authority shall also specifically report:
(A) the status of the Tennessee Valley
Authority’s long-range financial plans and the
progress toward its goal of competitively priced
power, and a general discussion of Tennessee Valley
Authority’s prospects on meeting the objectives of
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the Ten Year Business Outlook issued on July 22,
1997;
(B) any changes in assumptions since the pre-
vious report that may have a material effect on Ten-
nessee Valley Authority’s long-range financial plans;
(C) the source of funds used for any capacity
additions;
(D) the use or other disposition of amounts re-
covered by Tennessee Valley Authority under this
Act;
(E) the amount by which Tennessee Valley
Authority’s publicly-held debt was reduced; and
(F) the projected amount by which Tennessee
Valley Authority’s publicly-held debt will be reduced.
SEC. 609. APPLICATION OF ANTITRUST LAW.
(a) IN GENERAL.—The Tennessee Valley Authority
shall be subject to the antitrust laws of the United States
with respect to the operation of its electric power and
transmission systems. For purposes of this section, the
term ‘‘antitrust laws’’ has the meaning given such term
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 that such section 5 applies to unfair methods
of competition.
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(b) DAMAGES.—No damages, interest on damages,
costs, or attorney’s fees may be recovered under section
4, 4A, or 4C of the Clayton Act (15 U.S.C. 15, 15a, or
15c) from the Tennessee Valley Authority.
SEC. 610. SAVINGS PROVISION.
(a) IN GENERAL.—This subtitle shall be interpreted
and implemented in a manner that does not adversely af-
fect bonds issued by the Tennessee Valley Authority.
(b) TENNESSEE VALLEY AUTHORITY BONDS NOT
OBLIGATIONS OF THE UNITED STATES.—Nothing in this
subtitle shall affect section 15d(b) of the Tennessee Valley
Authority Act of 1933 (16 U.S.C. 831n–4(b)), providing
that bonds issued by the Tennessee Valley Authority shall
not be obligations of, nor shall payment of the principal
thereof or interest thereon be guaranteed by, the United
States.
Subtitle B—Bonneville Power
Administration
SEC. 621. DEFINITIONS.
As used in this subtitle:
(1) The term ‘Bonneville Administrator’ means
the Administrator of the Bonneville Power Adminis-
tration.
(2) The term ‘Bonneville Transmission System’
means transmission facilities owned or leased by the
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United States and operated by the Bonneville Power
Administration or by another entity under section
202(h) of the Federal Power Act.
(3) The terms ‘‘Commission’’, ‘‘electric utility’’,
‘‘retail electric consumer’’, and ‘‘transmitting util-
ity’’ have the same meanings as provided by section
3 of the Federal Power Act (16 U.S.C. 796).
(4) The term ‘‘major resource’’ has the mean-
ing given such term in section 3(12) of the Pacific
Northwest Electric Power Planning and Conserva-
tion Act.
(5) The term ‘Pacific Northwest’ has the mean-
ing given that term in section 3(14) of the Pacific
Northwest Electric Power Planning and Conserva-
tion Act (16 U.S.C. 839a(14)).
SEC. 622. REGULATION OF BONNEVILLE TRANSMISSION
SYSTEM.
(a) IN GENERAL.—After September 30, 2001, not-
withstanding section 201(f) of the Federal Power Act, sec-
tions 202(h), 205, 206, 208, and 210 through 213 and
sections 301 through 304, 306, 307 (except the last sen-
tence of paragraph (c)), 308, 309, 313, and 317 of the
Federal Power Act apply to the Bonneville Transmission
System and transmission of electric energy and provision
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of necessary associated services over the Bonneville Trans-
mission System.
(b) ADDITIONAL RULES.—Any determination by the
Commission of rates, terms, and conditions for the trans-
mission of electric energy under subsection (a) shall be
subject to the following rules:
(1) Phasing in changes in transmission rates or
charges that would cause unreasonable cost shifts
among users of the Bonneville Transmission System
if implemented at once.
(2) Mitigating unreasonable adverse effects on
transmission customers in the Pacific Northwest
that would otherwise result from changes in the
treatment of costs to acquire transmission to serve
customers historically served by General Transfer
Agreements entered into between the Bonneville Ad-
ministrator and other transmitting utilities prior to
the enactment of this Act. This paragraph shall not
apply if the Bonneville Transmission System is oper-
ated by a regional transmission organization ap-
proved by the Commission.
(3) No direct assignment of costs of trans-
mission facilities that were included in the Bonne-
ville Administrator’s transmission rates in effect on
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October 1, 1998, or costs for replacement of such fa-
cilities.
(4) Assuring the Bonneville Power Administra-
tion’s transmission rates and charges are established
sufficient to—
(A) recover Federal investment in the Bon-
neville Transmission System over a reasonable
period of years after first meeting all the Bon-
neville Power Administration’s other trans-
mission costs and expenses; and
(B) produce the revenues necessary to as-
sure timely payment of all transmission related
costs and expenses;
provided that this paragraph shall not be construed
to require any particular methodology for setting
transmission rates.
(5) Rules established by the Commission to—
(A) assure transmission access is provided
over the Bonneville Transmission System for
hydroelectric power that must be generated and
transmitted at a particular time in order to re-
duce levels of dissolved nitrogen gas harmful to
fish, with such access to be provided in a man-
ner that displaces other generation using the
Bonneville Transmission System but does not
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100
impair service to loads, require operations that
may damage generation facilities, or alter com-
mercial relationships between the electric utility
whose generation was displaced and its cus-
tomer; and
(B) provide methods for compensation be-
tween or among the electric utility that gen-
erated the hydroelectric power and the party or
parties affected by the displacement of trans-
mission customers in those circumstances.
(6) Section 623 of this Act (relating to sur-
charge on transmission rates to recover otherwise
nonrecoverable costs).
(c) APPLICABILITY.—Subsection (a) shall not apply
to—
(1) the Bonneville Power Administration’s ac-
tivities other than transmission of electric energy
and provision of necessary associated services over
the Bonneville Transmission System; or
(2) a contract in effect on the date of enact-
ment of this Act, except for rates which are adjust-
able by the Bonneville Administrator under the con-
tract; a treaty of the United States; or a contract
concerning the delivery of electric energy and capac-
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101
ity entered into by entities designated pursuant to
such a treaty.
(d) PRIORITY OF PAYMENTS.—Nothing in this sec-
tion shall alter or be construed to alter the priority of pay-
ments established in section 13(b) of the Federal Colum-
bia River Transmission System Act (16 U.S.C. 838k(b))
or the requirements of section 11 of that Act (16 U.S.C.
838i).
(e) COSTS
AND REVENUES.—Costs and revenues
shall be allocated to the Bonneville Transmission System
in accordance with rules to be promulgated by the Com-
mission.
(f) HEARINGS.—In any proceeding, or part of a pro-
ceeding, that the Commission sets for hearing before an
administrative law judge, with respect to the rates, terms,
or conditions for transmission of electric energy by the
Bonneville Power Administration, all evidentiary hearings
shall be conducted in the Pacific Northwest.
SEC. 623. SURCHARGE ON TRANSMISSION RATES TO RE-
COVER 
OTHERWISE 
NONRECOVERABLE
COSTS.
(a) SURCHARGE AUTHORITY.—By October 1, 2001,
notwithstanding section 201(f) of the Federal Power Act,
the Bonneville Administrator shall propose and the Com-
mission shall, by accepting or modifying the Bonneville
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102
Administrator’s proposal, authorize the Administrator to
place a surcharge on rates or charges for transmission
services over the Bonneville Transmission System when
necessary to recover power costs that cannot be recovered
through power revenues to meet the cost recovery require-
ments of section 7(a)(1) of the Pacific Northwest Electric
Power Planning and Conservation Act (16 U.S.C.
839e(a)(1)).
(b) REQUIREMENTS.—The transmission surcharge
referred to in subsection (a) shall—
(1) recover not more than $600,000,000 in
total and no more than $100,000,000 in any fiscal
year;
(2) be available only between October 1, 2001,
and October 1, 2016;
(3) be implemented by the Bonneville Adminis-
trator only when the Administrator projects that
available financial reserves in the Bonneville Power
Administration Fund attributable to the power func-
tion will fall below $150,000,000;
(4) not be implemented until the Bonneville Ad-
ministrator has undertaken reasonable and prudent
measures to mitigate the need to implement the sur-
charge; and
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103
(5) to the fullest extent possible, be designed
and established to recover the costs from trans-
mission in a manner that does not apply to use of
the Bonneville Transmission System for sales of
electric energy outside the Pacific Northwest.
(c) IMPLEMENTATION.—The Bonneville Adminis-
trator shall have sole discretion to implement the sur-
charge on rates or charges for transmission services au-
thorized by the Commission under subsection (a). Before
implementing the surcharge, the Bonneville Administrator
shall—
(1) make available information concerning the
need for and amount of the surcharge, and its pro-
posed effective date;
(2) conduct a public process of not less than 30
days in the Pacific Northwest to receive comments
on implementation of the surcharge; and
(3) afford the Pacific Northwest Electric Power
and Conservation Planning Council 30 days to make
recommendations to the Bonneville Administrator
concerning cost management options that could miti-
gate the need to implement the surcharge.
If, after taking into consideration those comments and
recommendations and ensuring that reasonable and pru-
dent alternatives to implementation of the surcharge have
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104
been undertaken, the Bonneville Administrator decides to
implement a surcharge, the Administrator may implement
the surcharge by filing the proposed surcharge with the
Commission. The surcharge shall take effect on the Bon-
neville Administrator’s proposed effective date, but no ear-
lier than 60 days following the Administrator’s filing of
the proposed surcharge to the Commission for approval.
(d) COMMISSION REVIEW.—Within 120 days after
the effective date of the surcharge, the Commission shall
accept, reject, or modify the surcharge and communicate
its decision to the Bonneville Administrator. If the Com-
mission rejects or modifies the surcharge, the Commission
may order the Bonneville Power Administration to refund,
with interest, the portion of the surcharge the Commission
found not justified or the Commission may authorize the
Bonneville Power Administration to recover amounts from
customers who underpaid or did not pay the surcharge.
If the Commission orders modification of the surcharge,
such modified charge shall be effective on the date and
for the time period specified by the Commission.
(e) REPAYMENT.—Any amounts recovered through
the transmission surcharge shall be treated as loans to the
Bonneville Power Administration’s power function by the
transmission function. The Bonneville Power Administra-
tion shall repay the loans as soon as possible from power
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105
revenues once the Bonneville Power Administration is able
to meet other power cost recovery and Treasury repay-
ment obligations on an annual basis using power revenues.
To the extent practicable, the Administrator shall refund
all or a portion of the surcharge collected from trans-
mission customers, as directed and determined appro-
priate by the Commission. The borrowed revenues shall
bear interest at a rate determined appropriate by the
Commission.
(f) COST RECOVERY.—For the recovery of costs re-
lating to any generation or conservation resources fi-
nanced by debt issued by a non-Federal party before Octo-
ber 1, 1998 (and any refundings and refinancing thereof),
and secured by an obligation of the Bonneville Power Ad-
ministration to make payments or net bill power and
transmission service that cannot be recovered through
power rates and charges and paid in accordance with the
application of revenues and priority of payments specified
by section 13(b) of the Federal Columbia River Trans-
mission System Act of 1974 (16 U.S.C. 838k(b)), the pro-
visions of this section apply, except for the recovery limita-
tions under subsection (b)(1) and the time limits under
subsection (b)(2), but only to the extent such recovery
would have been allowed under laws applicable to the Bon-
neville Power Administration as of October 1, 1998.
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SEC. 624. LIMIT ON RETAIL SALES BY BONNEVILLE POWER
ADMINISTRATION.
Notwithstanding section 5(a) of the Bonneville
Project Act (16 U.S.C. 832d(a)), the Bonneville Power
Administration shall not sell electric energy or capacity to
any retail electric consumer that did not have a contract
for the purchase of electric energy from the Bonneville
Power Administration for use at specific facilities on Octo-
ber 1, 1998.
SEC. 625. ACQUISITION OF NEW MAJOR GENERATING RE-
SOURCES.
Section 6 of the Pacific Northwest Electric Power
Planning and Conservation Act (16 U.S.C. 839d) is
amended by adding the following new subsection at the
end thereof:
‘‘(n) ACQUISITION OF NEW MAJOR GENERATING RE-
SOURCES.—Notwithstanding any other provision of law,
the Administrator shall not acquire any new major re-
source after the date of enactment of this subsection un-
less the Commission determines that satisfactory contrac-
tual and other financial arrangements have been made to
ensure that the customer or customers on whose behalf
the resource is acquired commit to pay the full cost of
the resource and the Administrator shall not acquire any
new major resource that the Administrator reasonably ex-
pects may require implementation of the surcharge au-
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thorized by section 623 of the Electricity Competition and
Reliability Act.’’.
SEC. 626. APPLICATION OF ANTITRUST LAW.
(a) IN GENERAL.—The Bonneville Power Adminis-
tration shall be subject to the antitrust laws of the United
States with respect to its sale of electric energy and capac-
ity and the operation of its transmission system. For pur-
poses of this section, the term ‘‘antitrust laws’’ has the
meaning given such term in subsection (a) of the first sec-
tion of the Clayton Act (15 U.S.C. 12(a)), except that
such term includes section 5 of the Federal Trade Com-
mission Act (15 U.S.C. 45) to the extent that such section
5 applies to unfair methods of competition.
(b) DAMAGES.—No damages, interest on damages,
costs, or attorney’s fees may be recovered under section
4, 4A, or 4C of the Clayton Act (15 U.S.C. 15, 15a, or
15c) from the Bonneville Power Administration.
SEC. 627. CONFORMING AMENDMENTS.
(a) FEDERAL POWER ACT.—Section 212(i) of the
Federal Power Act (16 U.S.C. 824(i)) is repealed.
(b) FEDERAL COLUMBIA RIVER TRANSMISSION SYS-
TEM ACT.—(1) Section 3(c) of the Federal Columbia
River Transmission System Act (16 U.S.C. 838a(o)) is
amended by inserting ‘‘, and transmission facilities with
an estimated capital cost exceeding $30,000,000 in 1998
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dollars, adjusted using the United States Gross Domestic
Product Implicit Price Deflator Index’’, after ‘‘own facili-
ties’’.
(2) Section 6 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838d) is repealed.
(3) Section 9 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838g) is amended to read
as follows:
‘‘SEC. 9. RATES AND CHARGES.
‘‘Schedules of rates and charges for the sale, includ-
ing dispositions to Federal agencies, of all electric power
made available to the Administrator pursuant to section
8 of this Act or otherwise acquired shall be established—
‘‘(1) with a view to encouraging the widest pos-
sible diversified use of electric power at the lowest
possible rates to consumers consistent with sound
business principles;
‘‘(2) having regard to the recovery (upon the
basis of the application of such rate schedules to the
capacity of the electric facilities of the projects) of
the cost of producing such electric power, including
the amortization of the capital investment allocated
to power over a reasonable period of years and pay-
ments provided for in section 11(b)(9) of this Act;
and
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‘‘(3) at levels to produce such additional power
revenues as may be required, in the aggregate with
all other power revenues of the Administrator, to
pay when due the principal of, premiums, discounts,
and expenses in connection with the issuance of and
interest on all bonds issued and outstanding pursu-
ant to this Act for other than the construction, ac-
quisition, and replacement of the Federal trans-
mission system, and amounts required to establish
and maintain reserve and other funds and accounts
established in connection therewith.
Electric power rates under this section shall be established
by the Administrator in accordance with section 7 of the
Pacific Northwest Electric Power Planning and Conserva-
tion Act.’’.
(4) Section 10 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838h) is repealed.
(c) REGIONAL PREFERENCE ACT.—Section 6 of Pub-
lic Law 88–552 (16 U.S.C. 837e), commonly known as
the ‘‘Regional Preference Act’’, is amended by striking
‘‘Federal energy or’’ in the first sentence and by striking
the second sentence.
(d) NORTHWEST POWER ACT.—(1) Section 7(a)(1)
of the Pacific Northwest Electric Power Planning and
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Conservation Act (16 U.S.C. 839e(a)(1)) is amended to
read as follows:
‘‘(a)(1) The Administrator shall establish, and peri-
odically review and revise, rates for the sale and disposi-
tion of electric power and shall periodically review and,
if necessary, propose revisions to rates for the trans-
mission of electric power. Rates for the sale and disposi-
tion of electric power shall be established and, as appro-
priate, revised to recover, in accordance with sound busi-
ness principles, the costs associated with the acquisition
and conservation of electric power, including the amortiza-
tion of the Federal investment allocable to electric power
rates in the Federal Columbia River Power System (in-
cluding irrigation electric power-related costs required to
be repaid out of electric power revenues) over a reasonable
period of years and the other costs and expenses incurred
by the Administrator pursuant to this Act and other provi-
sions of law. Rates for the sale and disposition of electric
power shall be established in accordance with section 9
of the Federal Columbia River Transmission System Act
(16 U.S.C. 838g), section 5 of the Flood Control Act of
1944 (16 U.S.C. 825s), and this Act.’’.
(2) Section 7(a)(2) of the Pacific Northwest Electric
Power Planning and Conservation Act (16 U.S.C.
839e(a)(2)) is amended—
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(A) by striking ‘‘Rates’’ and inserting ‘‘Power
rates’’;
(B) by inserting ‘‘and’’ after the comma in sub-
paragraph (A);
(C) by striking ‘‘, and’’ and inserting a period
at the end of subparagraph (B); and
(D) by striking subparagraph (C).
(3) Section 7(i) of the Pacific Northwest Electric
Power Planning and Conservation Act (16 U.S.C. 839e(i))
is amended by inserting ‘‘power’’ after ‘‘establishing’’ in
the first sentence.
(4) Section 9(d) of the Pacific Northwest Electric
Power Planning and Conservation Act (16 U.S.C.
839f(d)) is amended by striking ‘‘transmission access,’’
and inserting ‘‘power’’ before ‘‘services’’ in the second sen-
tence.
(5) Section 9(i)(3) of the Pacific Northwest Electric
Power Planning and Conservation Act (16 U.S.C.
839f(i)(3)) is amended by inserting ‘‘power’’ before ‘‘serv-
ices’’ each place it appears, and by striking ‘‘trans-
mission,’’ in the first sentence.
(e) BONNEVILLE PROJECT ACT.—Section 2(e) of the
Bonneville Project Act (16 U.S.C. 832a(e)) is amended
by striking the colon and all that follows and inserting
a period.
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Subtitle C—Other Power
Marketing Administrations
SEC. 631. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘Administrator’’ means the ad-
ministrator of a Federal power marketing adminis-
tration.
(2) The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(3) The term ‘‘Federal power marketing admin-
istrations’’ means the Western Area Power Adminis-
tration, Southwestern Power Administration, and
Southeastern Power Administration.
(4) The term ‘‘power generating agencies’’
means the Bureau of Reclamation, the Army Corps
of Engineers, and the International Boundary and
Water Commission.
(5) The term ‘‘public utility’’ means a public
utility as defined in section 201(e)(1) the Federal
Power Act.
SEC. 632. WHOLESALE POWER SALES BY FEDERAL POWER
MARKETING ADMINISTRATIONS.
(a) RATES, TERMS, AND CONDITIONS.—(1) All rates
and charges made, demanded, or received for the sale of
electric energy and capacity by each Federal power mar-
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keting administration to its electric energy customers shall
be the lowest possible rates and charges that will recover
from such customers over a reasonable period of years,
in accordance with sound business principles, all costs in-
curred by the United States for the production of electric
energy sold by such Federal power marketing administra-
tion, including repayment of the capital investment allo-
cated to power and costs assigned by Acts of Congress
to power for repayment.
(2) The Commission may modify proposed rates sub-
mitted by any Federal power marketing administration
and establish terms and conditions consistent with this
subsection. In its determination of rates, terms, and condi-
tions for the sale of electric energy and capacity by the
Federal power marketing administrations the Commission
shall not review policy judgments and interpretations of
laws and regulations made by the power generating agen-
cies.
(b) EXISTING RATES.—All rates, terms, and condi-
tions for the sale of electric energy and capacity by the
Federal power marketing administrations placed into ef-
fect on a final basis prior to the date of enactment of this
Act shall remain in full force and effect unless the Com-
mission determines, after a hearing held upon its own mo-
tion or upon complaint, that the rates, terms, and condi-
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tions are inconsistent with subsection (a)(1) and estab-
lishes new rates, terms, and conditions.
(c) PERIODIC REVIEW.—The Administrators shall
periodically review the rates and charges made, demanded,
or received by each Federal power marketing administra-
tion for the sale of electric energy and capacity. In the
event the rates and charges made, demanded, or received
by any Federal power marketing administration are incon-
sistent with subsection (a)(1), the Administrator of that
administration shall propose revised rates. Such rates
shall be established in accordance with this section, section
5 of the Flood Control Act of 1944 (16 U.S.C. 825s), sec-
tion 9(c) of the Reclamation Project Act of 1939 (43
U.S.C. 485h(c)), and the Acts specifically applicable to in-
dividual projects of the power systems of the power gener-
ating agencies.
SEC. 633. REGULATION OF FEDERAL POWER MARKETING
ADMINISTRATION TRANSMISSION SYSTEMS.
Notwithstanding section 201(f) of the Federal Power
Act, sections 202(h), 205, 206, 208, and 210 through 213
and sections 301 through 304, 306, 307 (except the last
sentence of paragraph (c)), 308, 309, 313, and 317 of the
Federal Power Act apply to the transmission of electric
energy by the Federal power marketing administrations
to the same extent and in the same manner as such provi-
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sions apply to the transmission of electric energy by a pub-
lic utility otherwise subject to the jurisdiction of the Com-
mission under part II of such Act.
SEC. 634. ACCOUNTING.
Not later than six months after the date of enactment
of this Act, the Commission shall promulgate rules con-
taining each of the following:
(1) ACCOUNTING
PRINCIPLES
AND
REQUIRE-
MENTS.—Procedures to ensure that the Federal
power marketing administrations utilize the same
accounting principles and requirements as are appli-
cable to public utilities pursuant to parts II and III
of the Federal Power Act (16 U.S.C. 792 and fol-
lowing) with respect to accounting for revenue, ex-
penses, investments, and depreciation.
(2) COMPLIANCE.—Procedures for the filing of
complaints with the Commission by interested per-
sons seeking to ensure compliance with the proce-
dures of this section.
(3) ADMINISTRATIVE RECONCILIATION.—Proce-
dures to ensure that the power generating agencies
and the Administrators maintain a consistent set of
books and records for purposes of repayment obliga-
tions.
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SEC. 635. APPLICATION OF ANTITRUST LAW.
(a) IN GENERAL.—Each Federal power marketing
administration shall be subject to the antitrust laws of the
United States with respect to its sale of electric energy
and capacity and the operation of its transmission system.
For purposes of this section, the term ‘‘antitrust laws’’
has the meaning given such term 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 that such
section 5 applies to unfair methods of competition.
(b) DAMAGES.—No damages, interest on damages,
costs, or attorney’s fees may be recovered under section
4, 4A, or 4C of the Clayton Act (15 U.S.C. 15, 15a, or
15c) from a Federal power marketing administration.
TITLE VII—ENVIRONMENTAL
PROVISIONS
SEC. 701. RENEWABLE ENERGY PRODUCTION INCENTIVE.
Section 1212 of the Energy Policy Act of 1992 is
amended to read as follows:
‘‘SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE.
‘‘(a) INCENTIVE PAYMENTS.—For electric energy
generated and sold by a qualified renewable energy facility
during the incentive period, the Secretary of Energy (re-
ferred to in this section as the ‘Secretary’) shall make,
subject to the availability of appropriations, incentive pay-
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ments to the owner or operator of such facility. The
amount of such payment made to any such owner or oper-
ator shall be as determined under subsection (e) of this
section. Payments under this section may only be made
upon receipt by the Secretary of an incentive payment ap-
plication which establishes that the applicant is eligible to
receive such payment and which satisfies such other re-
quirements as the Secretary deems necessary. Such appli-
cation shall be in such form, and shall be submitted at
such time, as the Secretary shall establish.
‘‘(b) QUALIFIED RENEWABLE ENERGY FACILITY.—
For purposes of this section, a ‘qualified renewable energy
facility’ is a facility which is owned by a State or any polit-
ical subdivision of a State (or an agency, authority, or in-
strumentality of a State or a political subdivision), by any
corporation or association which is wholly owned, directly
or indirectly, by one or more of the foregoing, or by a
nonprofit electrical cooperative and which generates elec-
tric energy for sale using solar energy, wind, biomass, or
geothermal.
‘‘(c) ELIGIBILITY WINDOW.—Payments may be made
under this section only for electric energy generated from
a qualified renewable energy facility first used during the
period of 10 fiscal years beginning with the first full fiscal
year occurring after the date of enactment of this Act.
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‘‘(d) INCENTIVE PERIOD.—A qualified renewable en-
ergy facility may receive payments under this section for
a period of 10 fiscal years (referred to in this section as
the ‘incentive period’). Such period shall begin with the
fiscal year in which electric energy generated from the fa-
cility is first eligible for such payments.
‘‘(e) AMOUNT OF PAYMENT.—
‘‘(1) IN
GENERAL.—Payments made by the
Secretary under this section to the owner or oper-
ator of a qualified renewable energy facility shall be
based on the number of kilowatt hours of electric en-
ergy generated by the facility through the use of
solar, wind, biomass, or geothermal energy during
the incentive period. For any facility, the amount of
such payment shall be 1.5 cents per kilowatt hour,
adjusted as provided in paragraph (2).
‘‘(2) ADJUSTMENTS.—The amount of the pay-
ment made to any person under this subsection as
provided in paragraph (1) shall be adjusted for infla-
tion for each fiscal year beginning after calendar
year 1999 in the same manner as provided in the
provisions of section 29(d)(2)(B) of the Internal
Revenue Code of 1986, except that in applying such
provisions the calendar year 1999 shall be sub-
stituted for calendar year 1979.
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‘‘(f) SUNSET.—No payment may be made under this
section to any qualified renewable energy facility after the
expiration of the period of 20 fiscal years beginning with
the first full fiscal year occurring after the date of enact-
ment of this Act, and no payment made be made under
this section to any such facility after a payment has been
made with respect to such facility for a period of 10 fiscal
years.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary to carry
out the purposes of this section such sums as may be nec-
essary for each of the fiscal years 2000 through 2004.’’.
SEC. 702. NET METERING.
(a) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘eligible on-site generating facil-
ity’’ means a facility on the site of a retail electric
consumer with a peak generating capacity of 20 kilo-
watts or less that is fueled solely by solar energy,
wind, geothermal, or biomass.
(2) The term ‘‘net metering service’’ means
service to a retail electric consumer under which
electric energy generated by that consumer from an
eligible on-site generating facility and delivered to
local distribution facilities through the same meter
through which purchased electric energy is received
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may be used to offset electric energy provided by the
retail electric supplier to the retail electric consumer
during the applicable billing period so that a retail
electric consumer is billed only for the net electric
energy consumed during the billing period, but in no
event shall the net be less than zero during the ap-
plicable billing period.
(3) The terms ‘‘retail electric consumer’’ and
‘‘retail electric supplier’’ have the meaning given
such term in section 3 of the Federal Power Act.
(b) REQUIREMENT TO PROVIDE NET METERING
SERVICE.—Each retail electric supplier shall make avail-
able upon request net metering service to any retail elec-
tric consumer that the supplier currently serves or solicits
for service.
(c) STATE AUTHORITY.—This section does not pre-
clude a State from imposing additional requirements con-
sistent with the requirements in this section, including the
imposition of a cap limiting the amount of net metering
available in the State. Nothing in this Act or any other
Federal law preempts or otherwise affects authority under
State law to require a retail electric supplier to make avail-
able net metering service to a retail electric consumer
which the supplier serves or offers to serve.
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TITLE VIII—PROVISIONS RELAT-
ING TO INTERNAL REVENUE
CODE
SEC. 801. BUSINESS ACTIVITIES OF MUTUAL OR COOPERA-
TIVE ELECTRIC COMPANIES.
Section 501(c)(12) of the Internal Revenue Code of
1986 is amended—
(1) in subparagraph (C)—
(A) in clause (i), by striking ‘‘or’’ at the
end;
(B) in clause (ii), by striking the period
and inserting a comma; and
(C) by adding at the end the following
clauses:
‘‘(iii) from the prepayment of a loan under
section 306B of the Rural Electrification Act of
1936 (including amendments made after Janu-
ary 1, 1987), or
‘‘(iv) from revenues received from non-
members for qualified open access activities.’’;
and
(2) by adding at the end the following subpara-
graph:
‘‘(E) For purposes of this paragraph, the term
‘qualified open access activities’, with respect to a
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mutual or cooperative electric company, means any
of the following activities:
‘‘(i) Providing open access transmission
services and ancillary services that meet the re-
quirements of Federal Energy Regulatory Com-
mission open access rules or orders or that are
provided in accordance with a transmission tar-
iff of a regional transmission organization, or
other transmission organization, approved by
the Commission.
‘‘(ii) Delivery on an open access basis of
electric energy sold by other retail electric sup-
pliers to retail electric consumers served by
local distribution facilities owned, controlled, or
operated by the company.
‘‘(iii) The sale of electric energy from elec-
tric output facilities (as defined in section
141(f)(4)) in service on the date of enactment
of this subparagraph to nonmembers, if the
company provides open access to the trans-
mission and local distribution facilities it owns,
controls, or operates.
‘‘(iv) Sales of generation, distribution, or
transmission facilities.’’.
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SEC. 802. TAX-EXEMPT BOND FINANCING OF CERTAIN
ELECTRIC FACILITIES.
(a) PERMITTED OPEN ACCESS TRANSACTIONS NOT
A PRIVATE BUSINESS USE.—Section 141(b)(6) of the In-
ternal Revenue Code of 1986 (defining private business
use) is amended by adding at the end the following:
‘‘(C) PERMITTED
OPEN
ACCESS
TRANS-
ACTIONS NOT A PRIVATE BUSINESS USE.—
‘‘(i) IN
GENERAL.—For purposes of
this subsection, the term ‘private business
use’ shall not include a permitted open ac-
cess transaction.
‘‘(ii) 
PERMITTED
OPEN
ACCESS
TRANSACTION DEFINED.—For purposes of
clause (i), the term ‘permitted open access
transaction’ means any of the following
transactions or activities with respect to an
electric output facility (as defined in sub-
section (f)(4)(A)) owned by a governmental
unit:
‘‘(I) Providing open access trans-
mission services and ancillary services
that meet the requirements of Federal
Energy Regulatory Commission open
access rules or orders, or that are pro-
vided in accordance with a trans-
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mission tariff of a regional trans-
mission organization, or other trans-
mission organization, approved by the
Commission, or that are consistent
with State-administered laws, rules, or
orders providing for open transmission
access.
‘‘(II) 
Providing 
open 
access
transmission services and ancillary
services pursuant to an agreement ap-
proved by the Commission with other
participants in a regional transmission
organization, or another transmission
organization, approved by the Com-
mission (which agreement may include
transferring control of transmission
facilities).
‘‘(III) Delivery on an open access
basis of electric energy sold by other
entities to end-users served by such
governmental unit’s distribution facili-
ties.
‘‘(IV) If open access service is
provided under subclause (I) or (III),
the sale of electric output of electric
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SEC. 803. NUCLEAR DECOMMISSIONING COSTS.
(a) INCREASE IN AMOUNT PERMITTED TO BE PAID
INTO NUCLEAR DECOMMISSIONING RESERVE FUND.—
Subsection (b) of section 468A of the Internal Revenue
Code of 1986 is amended to read as follows:
‘‘(b) LIMITATION ON AMOUNTS PAID INTO FUND.—
‘‘(1) IN GENERAL.—The amount which a tax-
payer may pay into the Fund for any taxable year
during the funding period shall not exceed the level
funding amount determined pursuant to subsection
(d), except—
‘‘(A) where the taxpayer is permitted by
Federal or State law or regulation (including
authorization by a public service commission) to
charge customers a greater amount for nuclear
decommissioning costs, in which case the tax-
payer may pay into the Fund such greater
amount; or
‘‘(B) in connection with the transfer of a
nuclear powerplant, where the transferor or
transferee (or both) is required pursuant to the
terms of the transfer to contribute a greater
amount for nuclear decommissioning costs, in
which case the transferor or transferee (or
both) may pay into the Fund such greater
amount.
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