Ratepayer Fairness Act of 2015

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ratepayer Fairness Act of 2015''.

SEC. 2. CROSS-SUBSIDIZATION OF CUSTOMER-SIDE TECHNOLOGY.

    (a) Consideration of Impact From Cross-Subsidization of Customer-
Side Technology.--Section 111(d) of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the 
end the following:
            ``(20) Consideration of impact from cross-subsidization of 
        customer-side technology.--
                    ``(A) Definition of customer-side technology.--In 
                this paragraph, the term `customer-side technology' 
                means a device connected to the electricity 
                distribution system--
                            ``(i) at, or on the customer side of, the 
                        meter; or
                            ``(ii) that, if owned or operated by, or on 
                        behalf of, an electric utility, would otherwise 
                        be at, or on the customer side of, the meter.
                    ``(B) Consideration.--Each State regulatory 
                authority (with respect to each electric utility for 
                which it has ratemaking authority) and each 
                nonregulated electric utility shall consider, to the 
                extent a State regulatory authority or nonregulated 
                electric utility allows rates charged by any electric 
                utility to include any cost, fee, or charge that 
                directly or indirectly subsidizes the deployment, 
                construction, maintenance, or operation of customer-
                side technology, whether subsidizing the deployment, 
                construction, maintenance, or operation of a customer-
                side technology would--
                            ``(i) result in benefits predominately 
                        enjoyed by only the users of the customer-side 
                        technology;
                            ``(ii) shift costs of a customer-side 
                        technology to electricity consumers that do not 
                        use the customer-side technology, particularly 
                        in cases in which disparate economic or 
                        resource conditions exist among the electricity 
                        consumers cross-subsidizing the customer-side 
                        technology;
                            ``(iii) negatively affect resource 
                        utilization, fuel diversity, grid reliability, 
                        or grid security;
                            ``(iv) provide any unfair competitive 
                        advantage to market the customer-side 
                        technology, including an analysis of whether 
                        the State regulatory authority or other State 
                        authority has uncovered any fraudulent 
                        customer-side technology marketing practices 
                        within the State; and
                            ``(v) be necessary to fulfill an obligation 
                        to serve electric consumers.
                    ``(C) Public notice.--At least 90 days before the 
                date on which a State regulatory authority or 
                nonregulated electric utility holds a proceeding that 
                would consider the cross-subsidization of a customer-
                side technology, the State regulatory authority or 
                nonregulated electric utility shall make available to 
                the public the results of the evaluation conducted 
                under subparagraph (B).''.
    (b) Compliance.--
            (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
        by adding at the end the following:
            ``(7)(A) Not later than 1 year after the date of enactment 
        of this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has ratemaking 
        authority), and each nonregulated electric utility shall, with 
        respect to the standard established by paragraph (20) of 
        section 111(d)--
                    ``(i) commence the consideration referred to in 
                section 111; or
                    ``(ii) set a hearing date for the consideration.
            ``(B) Not later than 2 years after the date of enactment of 
        this paragraph, each State regulatory authority (with respect 
        to each electric utility for which it has ratemaking 
        authority), and each nonregulated electric utility, shall--
                    ``(i) complete the consideration required under 
                subparagraph (A); and
                    ``(ii) make the determination referred to in 
                section 111 with respect to the standard established by 
                paragraph (20) of section 111(d).''.
            (2) Failure to comply.--Section 112(c) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is 
        amended by adding at the end the following: ``In the case of 
        the standard established by paragraph (20) of section 111(d), 
        the reference contained in this subsection to the date of 
        enactment of this Act shall be deemed to be a reference to the 
        date of enactment of that paragraph.''.

Summary: Ratepayer Fairness Act of 2015  This bill amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to require a state regulatory authority and a nonregulated electric utility (entities), to the extent that they allow electric utility rates to include charges that subsidize customer-side technology, to consider whether that subsidy would:  result in benefits predominately enjoyed by only the users of the customer-side technology; shift costs of a customer-side technology to electricity consumers that do not use it, particularly in cases in which disparate economic or resource conditions exist among the electricity consumers cross-subsidizing the customer-side technology; negatively affect resource utilization, fuel diversity, grid reliability, or grid security; give any unfair competitive advantage to market the customer-side technology, including an analysis of whether a state regulatory authority has uncovered fraudulent customer-side technology marketing practices; and be necessary to fulfill an obligation to serve electric consumers.   The bill sets deadlines within which the entities must set a hearing date to consider and subsequently determine the subsidization of customer-side technology.