TVA Reform and Consumer Protection Act
Bill: H.R.9042 | Sponsor: Rep. Cohen, Steve (D-TN)
Policy area: Energy

Summary:
TVA Reform and Consumer Protection Act
This bill makes various changes related to the regulation and operation of the Tennessee Valley Authority (TVA), which provides low-cost electricity in seven southeastern states. For example, the bill (1) eliminates certain restrictions on the sale of power into and out of the Tennessee Valley, and (2) expands the Federal Energy Regulatory Commission's oversight of rates and other aspects of the TVA's operations.

To amend the Federal Power Act and the Tennessee Valley Authority Act 
     of 1933 to reform the Tennessee Valley Authority's ratemaking 
                  authorities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``TVA Reform and Consumer Protection 
Act''.

SEC. 2. TENNESSEE VALLEY AUTHORITY REFORMS.

    (a) Federal Power Act Amendments.--
            (1) Applicability of part.--Section 201(f) of the Federal 
        Power Act (16 U.S.C. 824(f)) is amended by inserting ``(other 
        than the Tennessee Valley Authority)'' after 
        ``instrumentality''.
            (2) Certain wheeling authority.--Section 211 of the Federal 
        Power Act (16 U.S.C. 824j) is amended by adding at the end the 
        following:
    ``(f) Transfer of Control of Transmitting Facilities.--Nothing in 
this section authorizes the Commission to require the Tennessee Valley 
Authority to transfer control or operational control of its 
transmitting facilities to a Transmission Organization that is 
designated to provide nondiscriminatory transmission access.''.
            (3) Provisions regarding certain orders requiring 
        interconnection or wheeling.--Section 212(j) of the Federal 
        Power Act (16 U.S.C. 824k(j)) is repealed.
    (b) Tennessee Valley Authority Act of 1933 Amendments.--
            (1) Duties of the board of directors.--Section 2(g)(1)(L) 
        of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 
        831a(g)(1)(L)) is amended by inserting ``, subject to approval 
        by the Federal Energy Regulatory Commission'' before the 
        semicolon.
            (2) Sale of surplus power.--Section 10 of the Tennessee 
        Valley Authority Act of 1933 (16 U.S.C. 831i) is amended--
                    (A) by striking ``for a term not exceeding twenty 
                years'';
                    (B) by striking ``all contracts made with private 
                companies or individuals for the sale of power, which 
                power is to be resold for a profit, shall contain a 
                provision authorizing the Board to cancel said contract 
                upon five years' notice in writing, if the Board needs 
                said power to supply the demands of States, counties, 
                or municipalities. In order'' and inserting ``in 
                order'';
                    (C) by striking ``at reasonable rates and to make 
                such rules and regulations governing such sale and 
                distribution of such electric power as in its judgment 
                may be just and equitable'' and inserting ``at just and 
                reasonable rates, and to make rules and regulations 
                governing such sale and distribution of such electric 
                power that are just and reasonable, subject to approval 
                by the Federal Energy Regulatory Commission''; and
                    (D) by striking ``and in case the purchaser shall 
                fail to comply with any such terms and conditions, or 
                violate any such rules and regulations, said contract 
                may provide that it shall be voidable at the election 
                of the Board'' and inserting ``subject to approval by 
                the Federal Energy Regulatory Commission''.
            (3) Rates when sold for resale at profit.--Section 12 of 
        the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831k) is 
        amended by striking ``as reasonable, just, and fair; and in 
        case of any such sale, if an amount is charged the ultimate 
        consumer which is in excess of the price so deemed to be just, 
        reasonable, and fair by the Board, the contract for such sale 
        between the Board and such distributor of electricity shall be 
        voidable at the election of the Board'' and inserting ``as just 
        and reasonable, subject to approval by the Federal Energy 
        Regulatory Commission''.
            (4) Restriction on contracts for sale or delivery of 
        power.--Section 15d(a) of the Tennessee Valley Authority Act of 
        1933 (16 U.S.C. 831n-4(a)) is amended--
                    (A) by striking ``Unless otherwise specifically 
                authorized by Act of Congress the Corporation shall 
                make no contracts for the sale or delivery of power 
                which would have the effect of making the Corporation 
                or its distributors, directly or indirectly, a source 
                of power supply outside the area for which the 
                Corporation or its distributors were the primary source 
                of power supply on July 1, 1957, and such additional 
                area extending not more than five miles around the 
                periphery of such area as may be necessary to care for 
                the growth of the Corporation and its distributors 
                within said area: Provided, however, That such 
                additional area shall not in any event increase by more 
                than 2\1/2\ per centum (or two thousand square miles, 
                whichever is the lesser) the area for which the 
                Corporation and its distributors were the primary 
                source of power supply on July 1, 1957: And provided 
                further, That no part of such additional area may be in 
                a State not now served by the Corporation or its 
                distributors or in a municipality receiving electric 
                service from another source on or after July 1, 1957, 
                and no more than five hundred square miles of such 
                additional area may be in any one State now served by 
                the Corporation or its distributors.'';
                    (B) by striking ``Nothing in this subsection shall 
                prevent the Corporation or its distributors from 
                supplying electric power to any customer within any 
                area in which the Corporation or its distributors had 
                generally established electric service on July 1, 1957, 
                and to which electric service was not being supplied 
                from any other source on the effective date of this 
                Act.''; and
                    (C) by striking ``Nothing in this subsection shall 
                prevent the Corporation, when economically feasible, 
                from making exchange power arrangements with other 
                power-generating organizations with which the 
                Corporation had such arrangements on July 1, 1957'' and 
                inserting ``Nothing in this Act shall prevent the 
                Corporation or its distributors from supplying electric 
                power to any customer within any area, nor prevent the 
                Corporation, when economically feasible, from making 
                exchange power arrangements with other power-generating 
                organizations''.
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