IIB 
113TH CONGRESS 
1ST SESSION H. R. 1038 
IN THE SENATE OF THE UNITED STATES 
JUNE 13, 2013 
Received; read twice and referred to the Committee on Agriculture, Nutrition, 
and Forestry 
AN ACT 
To provide equal treatment for utility special entities using 
utility operations-related swaps, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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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 an electric or 
natural gas facility or an electric or nat-
ural gas operation; 
‘‘(ii) supplies natural gas and or elec-
tric energy to another utility special entity; 
‘‘(iii) has public service obligations 
under Federal, State, or local law or regu-
lation 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: 
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‘‘(XXIII) a utility operations-re-
lated swap;’’. 
(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; or 
‘‘(ii) a metal, agricultural commodity, 
or crude oil or gasoline commodity of any 
grade, except as used as fuel for electric 
energy generation; and 
‘‘(C) is associated with— 
‘‘(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-
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ural gas or electric energy service to utility 
customers; 
‘‘(ii) all 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.’’. 
SEC. 5. EFFECTIVE DATE. 
The amendments made by this Act take effect as if 
enacted on July 21, 2010. 
Passed the House of Representatives June 12, 2013. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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