Energy Markets Fraud Prevention and Consumer Protection Act of 2003

Bill: 108-hr-1272
Sponsor: Rep. Dingell, John D. [D-MI-15]
Introduced: 2003-03-13 in the House
Policy area: Energy
Subjects: Accounting
Administrative procedure
Affiliated corporations
Auditing
Bankruptcy
Bribery
Brokers
Burglary
Business records
Commerce
Computer networks
Conspiracy
Consumer discounts
Consumer protection
Contracts
Counterfeiting
Crime and Law Enforcement
Department of Energy
Electric power
Electric power transmission
Electric utilities
Electric utility rates
Electronic data interchange
Electronic government information
Embezzlement
Energy transportation
Extortion
Federal Energy Regulatory Commission
Finance and Financial Sector
Fines (Penalties)
Forgery
Fraud
Futures trading
Gas companies
Government Operations and Politics
Government paperwork
Holding companies
Independent regulatory commissions
Information disclosure (Securities law)
Injunctions
Interstate commerce
Larceny
Law
Natural gas
Perjury
Postal service
Power marketing administrations
Public utilities
Restrictive trade practices
Science, Technology, Communications
Securities fraud
Securities regulation
Subsidiary corporations
Surety and fidelity
Wholesale trade

Summary:
action_date: 2003-03-13
text: 
Energy Markets Fraud Prevention and Consumer Protection Act of 2003 - Declares unlawful any practices that are fraudulent, manipulative, deceptive, or a contrivance in contravention of Federal Energy Regulatory Commission (FERC) regulations governing: (1) transmission and sales of electric energy; or (2) transportation and sales of natural gas. Subjects such practices to certain Federal Power Act (FPA) sanctions.
 
Amends the FPA to require FERC to promulgate criteria governing waivers and exemptions from requirements regarding: (1) issuance of securities; (2) accounts and recordkeeping; and (3) officials dealing in securities (including any prospective blanket order).
 
Places a moratorium upon such waivers and exemptions until the criteria required for promulgation become effective. Directs FERC to review previously issued waivers. Vitiates such waivers after a specified deadline unless they are found to comply with such criteria.
 
Amends the FPA and the Natural Gas Act to revise reporting requirements for transactions regarding transmission or sales of electric energy and of natural gas.
 
Sets forth prohibitions on the distribution or publication by an electric power or natural gas information processor of quotations and transactions of electric energy and natural gas in contravention of FERC rules.
 
Prohibits any person who owns, controls, or is under the control or ownership of a public utility, a natural gas company, or a public utility holding company from owning, controlling, or operating any electronic computer network or other multilateral trading facility utilized to trade electricity or natural gas.
 
Sets forth civil and criminal penalties for violations of this Act.
 
Requires review by: (1) the Securities and Exchange Commission of certain exemptions granted under the Public Utility Holding Company Act of 1935 to determine if they should continue in force and effect; and (2) the Financial Accounting Standards Board of accounting for contracts in energy trading and risk management activities.
 
Instructs FERC to adopt rules and procedures to protect electric consumers from self-dealing, interaffiliate abuse, and other harmful actions taken by persons owning or controlling public utilities.
 
Mandates annual FERC review of the activities and characteristics of any public utility authorized to sell electric energy at market-based rates to determine whether such rates are just and reasonable. Requires FERC to modify or revoke the authority of such a utility to sell at market-based rates for violations of law or for rates found to be unjust, unreasonable, unduly discriminatory, or preferential.


Legislative actions:
action_date: 2003-03-24
text: Referred to the Subcommittee on Energy and Air Quality.
action_date: 2003-03-13
text: Referred to the House Committee on Energy and Commerce.
action_date: 2003-03-13
text: Introduced in House
action_date: 2003-03-13
text: Introduced in House