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‘‘(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
‘‘(C) the agreement promotes effective and effi-
cient administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO
and the Commission shall rebuttably presume that a pro-
posal for delegation to a regional entity organized on an
Interconnection-wide basis promotes effective and efficient
administration of bulk-power system reliability and should
be approved. Such regulation may provide that the Com-
mission may assign the ERO’s authority to enforce reli-
ability standards under paragraph (1) directly to a re-
gional entity consistent with the requirements of this para-
graph.
‘‘(5) The Commission may take such action as is nec-
essary or appropriate against the ERO or a regional entity
to ensure compliance with a reliability standard or any
Commission order affecting the ERO or a regional entity.
‘‘(6) Any penalty imposed under this section shall
bear a reasonable relation to the seriousness of the viola-
tion and shall take into consideration the efforts of such
user, owner, or operator to remedy the violation in a time-
ly manner.
‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZA-
TION RULES.—The Electric Reliability Organization shall
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file with the Commission for approval any proposed rule
or proposed rule change, accompanied by an explanation
of its basis and purpose. The Commission, upon its own
motion or complaint, may propose a change to the rules
of the ERO. A proposed rule or proposed rule change shall
take effect upon a finding by the Commission, after notice
and opportunity for comment, that the change is just, rea-
sonable, not unduly discriminatory or preferential, is in
the public interest, and satisfies the requirements of sub-
section (c).
‘‘(g) RELIABILITY REPORTS.—The ERO shall con-
duct periodic assessments of the reliability and adequacy
of the bulk-power system in North America.
‘‘(h) COORDINATION WITH CANADA AND MEXICO.—
The President is urged to negotiate international agree-
ments with the governments of Canada and Mexico to pro-
vide for effective compliance with reliability standards and
the effectiveness of the ERO in the United States and
Canada or Mexico.
‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have
authority to develop and enforce compliance with reli-
ability standards for only the bulk-power system.
‘‘(2) This section does not authorize the ERO or the
Commission to order the construction of additional gen-
eration or transmission capacity or to set and enforce com-
518
pliance with standards for adequacy or safety of electric
facilities or services.
‘‘(3) Nothing in this section shall be construed to pre-
empt any authority of any State to take action to ensure
the safety, adequacy, and reliability of electric service
within that State, as long as such action is not incon-
sistent with any reliability standard, except that the State
of New York may establish rules that result in greater
reliability within that State, as long as such action does
not result in lesser reliability outside the State than that
provided by the reliability standards.
‘‘(4) Within 90 days of the application of the Electric
Reliability Organization or other affected party, and after
notice and opportunity for comment, the Commission shall
issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into consid-
eration any recommendation of the ERO.
‘‘(5) The Commission, after consultation with the
ERO and the State taking action, may stay the effective-
ness of any State action, pending the Commission’s
issuance of a final order.
‘‘(j) REGIONAL ADVISORY BODIES.—The Commis-
sion shall establish a regional advisory body on the petition
of at least 2⁄3 of the States within a region that have more
than 1⁄2 of their electric load served within the region. A
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regional advisory body shall be composed of 1 member
from each participating State in the region, appointed by
the Governor of each State, and may include representa-
tives of agencies, States, and provinces outside the United
States. A regional advisory body may provide advice to the
Electric Reliability Organization, a regional entity, or the
Commission regarding the governance of an existing or
proposed regional entity within the same region, whether
a standard proposed to apply within the region is just,
reasonable, not unduly discriminatory or preferential, and
in the public interest, whether fees proposed to be assessed
within the region are just, reasonable, not unduly discrimi-
natory or preferential, and in the public interest and any
other responsibilities requested by the Commission. The
Commission may give deference to the advice of any such
regional advisory body if that body is organized on an
Interconnection-wide basis.
‘‘(k) ALASKA AND HAWAII.—The provisions of this
section do not apply to Alaska or Hawaii.’’.
(b) STATUS OF ERO.—The Electric Reliability Orga-
nization certified by the Federal Energy Regulatory Com-
mission under section 215(c) of the Federal Power Act
and any regional entity delegated enforcement authority
pursuant to section 215(e)(4) of that Act are not depart-