I
105TH CONGRESS
2D SESSION
H. R. 4183
To protect the Nation’s electricity ratepayers by amending the Public Utility
Regulatory Policies Act of 1978 to ensure that rates charged by qualify-
ing small power producers and qualifying cogenerators do not exceed
the incremental cost to the purchasing utility of alternative electric en-
ergy at the time of delivery, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 25, 1998
Mr. SOLOMON (for himself, Mr. HOUGHTON, and Mr. TOWNS) introduced the
following bill; which was referred to the Committee on Commerce
A BILL
To protect the Nation’s electricity ratepayers by amending
the Public Utility Regulatory Policies Act of 1978 to
ensure that rates charged by qualifying small power pro-
ducers and qualifying cogenerators do not exceed the
incremental cost to the purchasing utility of alternative
electric energy at the time of delivery, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘State Electric and
Consumer Empowerment Act of 1998’’.
SEC. 2. FINDINGS.
Congress finds that:
(1) Certain courts have found that States are
preempted under the Public Utility Regulatory Poli-
cies Act of 1978 (‘‘PURPA’’) from engaging in cer-
tain ratepayer protection activities critical to ensur-
ing reasonable rates for in-State ratepayers.
(2) These courts have found that, although
States have the authority initially to establish rates
charged by qualifying small power producers and
qualifying cogenerators (collectively, ‘‘QFs’’) to local
electric utilities, that such States thereafter are pre-
empted by PURPA from ensuring over time that
rates charged by QFs (A) are just and reasonable to
the retail electric consumers of purchasing electric
utilities and are in the public interest; and (B) do
not exceed the incremental cost to such purchasing
electric utilities of alternative electric energy at the
time of delivery.
(3) Other courts have found that States are
preempted from monitoring effectively the operating
and efficiency performance of in-State cogeneration
and small power production facilities for the purpose
of determining whether such facilities meet Federal
Energy Regulatory Commission standards for QFs.
(4) PURPA should be amended to clarify Con-
gress’ intent that States have the authority—
(A) to ensure that rates charged by QFs to
purchasing electric utilities (i) are just and rea-
sonable to the electric consumers of such pur-
chasing electric utilities and in the public inter-
est; and (ii) do not exceed the incremental cost
to such purchasing electric utilities of alter-
native electric energy at the time of delivery;
and
(B) to establish effective programs for
monitoring the operating and efficiency per-
formance of in-State cogeneration and small
power production facilities for the purpose of
determining whether such facilities meet Fed-
eral Energy Regulatory Commission standards
for QFs.
SEC. 3. AMENDMENT OF PURPA.
Section 210(f)(1) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 824a–3(f)(1)) is amended
by adding the following at the end: ‘‘Notwithstanding any
other provision of this section, each State regulatory au-
thority may ensure that rates charged by qualifying small
power producers and qualifying cogenerators (A) are just
and reasonable to the electric consumers of the purchasing
electric utility and in the public interest; and (B) do not
exceed the incremental cost at the time of delivery to the
purchasing utility of alternative electric energy and capac-
ity. Each State regulatory authority may also establish
programs for monitoring the operating and efficiency per-
formance of in-State cogeneration and small power pro-
duction facilities for the purpose of determining whether
such facilities meet Federal Energy Regulatory Commis-
sion standards for qualifying facilities. Each State regu-
latory authority may require that any contract entered
into before the date of the enactment of the preceding sen-
tence be amended to conform to the requirements set forth
in subparagraphs (A) and (B).’’.
SEC. 4. COST RECOVERY.
Section 210 of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 824a–3) is amended by adding
the following new subsection after subsection (l):
‘‘(m) COST RECOVERY.—Nothing in this Act or any
other provision of law, shall prohibit a State or the Com-
mission from ensuring that all costs associated with the
purchase of electric energy from qualifying cogenerators
or qualifying small power producers pursuant to this Act
are recovered by the purchaser.’’.
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