492 
(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), (3), or (4) acting 
as such in the course of his or her official duty. 
SEC. 1269. 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. 1270. 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 sub-
title. 
SEC. 1271. SAVINGS PROVISIONS. 
(a) IN GENERAL.—Nothing in this subtitle, or other-
wise in the Public Utility Holding Company Act of 1935, 
or rules, regulations, or orders thereunder, prohibits a per-
son from engaging in or continuing to engage in activities 
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 (other than an expira-
tion date or termination date) of any such authorization, 
whether by rule or by order.
493 
(b) EFFECT ON OTHER COMMISSION AUTHORITY.— 
Nothing in this subtitle limits the authority of the Commis-
sion under the Federal Power Act (16 U.S.C. 791a et seq.) 
or the Natural Gas Act (15 U.S.C. 717 et seq.). 
SEC. 1272. IMPLEMENTATION. 
Not later than 12 months after the date of enactment 
of this subtitle, the Commission shall— 
(1) issue such regulations as may be necessary or 
appropriate to implement this subtitle (other than 
section 1265, relating to State access to books and 
records); and 
(2) submit to Congress detailed recommendations 
on technical and conforming amendments to Federal 
law necessary to carry out this subtitle and the 
amendments made by this subtitle. 
SEC. 1273. TRANSFER OF RESOURCES. 
All books and records that relate primarily to the func-
tions transferred to the Commission under this subtitle shall 
be transferred from the Securities and Exchange Commis-
sion to the Commission. 
SEC. 1274. EFFECTIVE DATE. 
(a) IN GENERAL.—Except for section 1272 (relating 
to implementation), this subtitle shall take effect 12 months 
after the date of enactment of this subtitle.
494 
(b) COMPLIANCE WITH CERTAIN RULES.—If the Com-
mission approves and makes effective any final rulemaking 
modifying the standards of conduct governing entities that 
own, operate, or control facilities for transmission of elec-
tricity in interstate commerce or transportation of natural 
gas in interstate commerce prior to the effective date of this 
subtitle, any action taken by a public-utility company or 
utility holding company to comply with the requirements 
of such rulemaking shall not subject such public-utility com-
pany or utility holding company to any regulatory require-
ment applicable to a holding company under the Public 
Utility Holding Company Act of 1935 (15 U.S.C. 79 et 
seq.). 
SEC. 1275. SERVICE ALLOCATION. 
(a) FERC REVIEW.—In the case of non-power goods 
or administrative or management services provided by an 
associate company organized specifically for the purpose of 
providing such goods or services to any public utility in 
the same holding company system, at the election of the sys-
tem or a State commission having jurisdiction over the pub-
lic utility, the Commission, after the effective date of this 
subtitle, shall review and authorize the allocation of the 
costs for such goods or services to the extent relevant to that 
associate company in order to assure that each allocation
495 
is appropriate for the protection of investors and consumers 
of such public utility. 
(b) COST ALLOCATION.—Nothing in this section shall 
preclude the Commission or a State commission from exer-
cising its jurisdiction under other applicable law with re-
spect to the review or authorization of any costs allocated 
to a public utility in a holding company system located 
in the affected State as a result of the acquisition of non- 
power goods or administrative and management services by 
such public utility from an associate company organized 
specifically for that purpose. 
(c) RULES.—Not later than 6 months after the date 
of enactment of this Act, the Commission shall issue rules 
(which rules shall be effective no earlier than the effective 
date of this subtitle) to exempt from the requirements of 
this section any company in a holding company system 
whose public utility operations are confined substantially 
to a single State and any other class of transactions that 
the Commission finds is not relevant to the jurisdictional 
rates of a public utility. 
(d) PUBLIC UTILITY.—As used in this section, the term 
‘‘public utility’’ has the meaning given that term in section 
201(e) of the Federal Power Act.
496 
SEC. 1276. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such funds as 
may be necessary to carry out this subtitle. 
SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL 
POWER ACT. 
(a) CONFLICT OF JURISDICTION.—Section 318 of the 
Federal Power Act (16 U.S.C. 825q) is repealed. 
(b) DEFINITIONS.—(1) Section 201(g)(5) of the Fed-
eral Power Act (16 U.S.C. 824(g)(5)) is amended by strik-
ing ‘‘1935’’ and inserting ‘‘2005’’. 
(2) Section 214 of the Federal Power Act (16 U.S.C. 
824m) is amended by striking ‘‘1935’’ and inserting 
‘‘2005’’. 
Subtitle G—Market Transparency, 
Enforcement, 
and 
Consumer 
Protection 
SEC. 1281. MARKET TRANSPARENCY RULES. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 220. MARKET TRANSPARENCY RULES. 
‘‘(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this section, the Commission shall issue 
rules establishing an electronic information system to pro-
vide the Commission and the public with access to such in-
formation as is necessary or appropriate to facilitate price 
transparency and participation in markets subject to the
497 
Commission’s jurisdiction under this Act. Such systems 
shall provide information about the availability and market 
price of wholesale electric energy and transmission services 
to the Commission, State commissions, buyers and sellers 
of wholesale electric energy, users of transmission services, 
and the public on a timely basis. The Commission shall 
have authority to obtain such information from any electric 
utility or transmitting utility, including any entity de-
scribed in section 201(f). 
‘‘(b) EXEMPTIONS.—The Commission shall exempt 
from disclosure information it determines would, if dis-
closed, be detrimental to the operation of an effective market 
or jeopardize system security. This section shall not apply 
to transactions for the purchase or sale of wholesale electric 
energy or transmission services within the area described 
in section 212(k)(2)(A). In determining the information to 
be made available under this section and time to make such 
information available, the Commission shall seek to ensure 
that consumers and competitive markets are protected from 
the adverse effects of potential collusion or other anti-com-
petitive behaviors that can be facilitated by untimely public 
disclosure of transaction-specific information. 
‘‘(c) COMMODITY FUTURES TRADING COMMISSION.— 
This section shall not affect the exclusive jurisdiction of the 
Commodity Futures Trading Commission with respect to
498 
accounts, agreements, contracts, or transactions in commod-
ities under the Commodity Exchange Act (7 U.S.C. 1 et 
seq.). 
‘‘(d) SAVINGS PROVISION.—In exercising its authority 
under this section, the Commission shall not— 
‘‘(1) compete with, or displace from the market 
place, any price publisher; or 
‘‘(2) regulate price publishers or impose any re-
quirements on the publication of information.’’. 
SEC. 1282. MARKET MANIPULATION. 
Part II of the Federal Power Act (16 U.S.C. 824 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 221. PROHIBITION ON FILING FALSE INFORMATION. 
‘‘No person or other entity (including an entity de-
scribed in section 201(f)) shall willfully and knowingly re-
port any information relating to the price of electricity sold 
at wholesale or availability of transmission capacity, which 
information the person or any other entity knew to be false 
at the time of the reporting, to a Federal agency with intent 
to fraudulently affect the data being compiled by such Fed-
eral agency. 
‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRADING. 
‘‘(a) PROHIBITION.—No person or other entity (includ-
ing an entity described in section 201(f)) shall willfully and 
knowingly enter into any contract or other arrangement to
499 
execute a ‘round trip trade’ for the purchase or sale of elec-
tric energy at wholesale. 
‘‘(b) DEFINITION.—For the purposes of this section, the 
term ‘round trip trade’ means a transaction, or combina-
tion of transactions, in which a person or any other enti-
ty— 
‘‘(1) enters into a contract or other arrangement 
to purchase from, or sell to, any other person or other 
entity electric energy at wholesale; 
‘‘(2) simultaneously with entering into the con-
tract or arrangement described in paragraph (1), ar-
ranges a financially offsetting trade with such other 
person or entity for the same such electric energy, at 
the same location, price, quantity and terms so that, 
collectively, the purchase and sale transactions in 
themselves result in no financial gain or loss; and 
‘‘(3) enters into the contract or arrangement 
with a specific intent to fraudulently affect reported 
revenues, trading volumes, or prices.’’. 
SEC. 1283. ENFORCEMENT. 
(a) COMPLAINTS.—Section 306 of the Federal Power 
Act (16 U.S.C. 825e) is amended as follows: 
(1) By inserting ‘‘electric utility,’’ after ‘‘Any 
person,’’.
500 
(2) By inserting ‘‘, transmitting utility,’’ after 
‘‘licensee’’ each place it appears. 
(b) REVIEW OF COMMISSION ORDERS.—Section 313(a) 
of the Federal Power Act (16 U.S.C. 8251) is amended by 
inserting ‘‘electric utility,’’ after ‘‘person,’’ in the first 2 
places it appears and by striking ‘‘any person unless such 
person’’ and inserting ‘‘any entity unless such entity’’. 
(c) INVESTIGATIONS.—Section 307(a) of the Federal 
Power Act (16 U.S.C. 825f(a)) is amended as follows: 
(1) By inserting ‘‘, electric utility, transmitting 
utility, or other entity’’ after ‘‘person’’ each time it 
appears. 
(2) By striking the period at the end of the first 
sentence and inserting the following: ‘‘or in obtaining 
information about the sale of electric energy at whole-
sale in interstate commerce and the transmission of 
electric energy in interstate commerce.’’. 
(d) CRIMINAL PENALTIES.—Section 316 of the Federal 
Power Act (16 U.S.C. 825o) is amended— 
(1) in subsection (a), by striking ‘‘$5,000’’ and 
inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 
and inserting ‘‘5 years’’; 
(2) in subsection (b), by striking ‘‘$500’’ and in-
serting ‘‘$25,000’’; and 
(3) by striking subsection (c).
501 
(e) CIVIL PENALTIES.—Section 316A of the Federal 
Power Act (16 U.S.C. 825o–1) is amended as follows: 
(1) In subsections (a) and (b), by striking ‘‘sec-
tion 211, 212, 213, or 214’’ each place it appears and 
inserting ‘‘Part II’’. 
(2) In subsection (b), by striking ‘‘$10,000’’ and 
inserting ‘‘$1,000,000’’. 
SEC. 1284. REFUND EFFECTIVE DATE. 
Section 206(b) of the Federal Power Act (16 U.S.C. 
824e(b)) is amended as follows: 
(1) By striking ‘‘the date 60 days after the filing 
of such complaint nor later than 5 months after the 
expiration of such 60-day period’’ in the second sen-
tence and inserting ‘‘the date of the filing of such 
complaint nor later than 5 months after the filing of 
such complaint’’. 
(2) By striking ‘‘60 days after’’ in the third sen-
tence and inserting ‘‘of’’. 
(3) By striking ‘‘expiration of such 60-day pe-
riod’’ in the third sentence and inserting ‘‘publication 
date’’. 
(4) By striking the fifth sentence and inserting 
the following: ‘‘If no final decision is rendered by the 
conclusion of the 180-day period commencing upon 
initiation of a proceeding pursuant to this section,
502 
the Commission shall state the reasons why it has 
failed to do so and shall state its best estimate as to 
when it reasonably expects to make such decision.’’. 
SEC. 1285. REFUND AUTHORITY. 
Section 206 of the Federal Power Act (16 U.S.C. 824e) 
is amended by adding the following new subsection at the 
end thereof: 
‘‘(e)(1) Except as provided in paragraph (2), if an en-
tity described in section 201(f) voluntarily makes a short- 
term sale of electric energy and the sale violates Commission 
rules in effect at the time of the sale, such entity shall be 
subject to the Commission’s refund authority under this sec-
tion with respect to such violation. 
‘‘(2) This section shall not apply to— 
‘‘(A) any entity that sells less than 8,000,000 
megawatt hours of electricity per year; or 
‘‘(B) any electric cooperative. 
‘‘(3) For purposes of this subsection, the term ‘short- 
term sale’ means an agreement for the sale of electric energy 
at wholesale in interstate commerce that is for a period of 
31 days or less (excluding monthly contracts subject to auto-
matic renewal). 
‘‘(4) The Commission shall have refund authority 
under subsection (e)(1) with respect to a voluntary short- 
term sale of electric energy by the Bonneville Power Admin-
503 
istration (in this section ‘Bonneville’) only if the sale is 
at an unjust and unreasonable rate and, in that event, may 
order a refund only for short-term sales made by Bonneville 
at rates that are higher than the highest just and reasonable 
rate charged by any other entity for a short-term sale of 
electric energy in the same geographic market for the same, 
or most nearly comparable, period as the sale by Bonneville. 
‘‘(5) With respect to any Federal power marketing 
agency or the Tennessee Valley Authority, the Commission 
shall not assert or exercise any regulatory authority or pow-
ers under subsection (e)(1) other than the ordering of re-
funds to achieve a just and reasonable rate.’’. 
SEC. 1286. SANCTITY OF CONTRACT. 
(a) IN GENERAL.—The Federal Energy Regulatory 
Commission (in this section, ‘‘the Commission’’) shall have 
no authority to abrogate or modify any provision of an exe-
cuted contract or executed contract amendment described in 
subsection (b) that has been entered into or taken effect, ex-
cept upon a finding that failure to take such action would 
be contrary to the public interest. 
(b) LIMITATION.—Except as provided in subsection 
(c), this section shall apply only to a contract or contract 
amendment— 
(1) executed on or after the date of enactment of 
this Act; and