[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 544 Reported in Senate (RS)]

                                                       Calendar No. 592

103d CONGRESS

  2d Session

                                 S. 544

                          [Report No. 103-351]

_______________________________________________________________________

                                 A BILL

   To amend the Federal Power Act to protect consumers of multistate 
                utility systems, and for other purposes.

_______________________________________________________________________

              August 22 (legislative day, August 18), 1994

                       Reported with an amendment





                                                       Calendar No. 592
103d CONGRESS
  2d Session
                                 S. 544

                          [Report No. 103-351]

   To amend the Federal Power Act to protect consumers of multistate 
                utility systems, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 10 (legislative day, March 3), 1993

  Mr. Bumpers introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

              August 22 (legislative day, August 18), 1994

              Reported by Mr. Johnston, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Power Act to protect consumers of multistate 
                utility systems, and for other purposes.

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

-S-E-C-T-I-O-N -1-. -S-H-O-R-T -T-I-T-L-E-.

    -T-h-i-s -A-c-t -m-a-y -b-e -r-e-f-e-r-r-e-d -t-o -a-s -t-h-e 
-`-`-M-u-l-t-i-s-t-a-t-e -U-t-i-l-i-t-y -C-o-m-p-a-n-y -C-o-n-s-u-m-e-r 
-P-r-o-t-e-c-t-i-o-n -A-c-t -o-f -1-9-9-3-'-'-.

-S-E-C-. -2-. -A-F-F-I-L-I-A-T-E -C-H-A-R-G-E-S-.

    -(-a-) -S-e-c-t-i-o-n -2-0-5-(-a-) -o-f -t-h-e -F-e-d-e-r-a-l 
-P-o-w-e-r -A-c-t -(-1-6 -U-.-S-.-C-. -8-2-4-d-(-a-)-) -i-s 
-a-m-e-n-d-e-d---
            -(-1-) -b-y -i-n-s-e-r-t-i-n-g -`-`-(-1-)-'-' 
        -i-m-m-e-d-i-a-t-e-l-y -a-f-t-e-r -`-`-(-a-)-'-'-; -a-n-d
            -(-2-) -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g-:
    -`-`-(-2-) -N-o-t-w-i-t-h-s-t-a-n-d-i-n-g -a-n-y -p-r-o-v-i-s-i-o-n 
-o-f -t-h-e -P-u-b-l-i-c -U-t-i-l-i-t-y -H-o-l-d-i-n-g -C-o-m-p-a-n-y 
-A-c-t -o-f -1-9-3-5-, -i-f -a -p-u-b-l-i-c -u-t-i-l-i-t-y 
-e-n-g-a-g-e-s -i-n -a -t-r-a-n-s-a-c-t-i-o-n -w-i-t-h -a-n 
-a-f-f-i-l-i-a-t-e-d -c-o-m-p-a-n-y-, -t-h-e -C-o-m-m-i-s-s-i-o-n 
-s-h-a-l-l -h-a-v-e -t-h-e -a-u-t-h-o-r-i-t-y -t-o -r-e-v-i-e-w -a-n-d 
-d-i-s-a-l-l-o-w -t-h-e -c-o-s-t-s -a-s-s-o-c-i-a-t-e-d -w-i-t-h 
-s-u-c-h -t-r-a-n-s-a-c-t-i-o-n -f-o-r -t-h-e -p-u-r-p-o-s-e-s -o-f 
-d-e-t-e-r-m-i-n-i-n-g -a -j-u-s-t -a-n-d -r-e-a-s-o-n-a-b-l-e -r-a-t-e 
-u-n-d-e-r -s-u-b-s-e-c-t-i-o-n -(-a-)-(-1-)-.-'-'-.
    -(-b-) -S-e-c-t-i-o-n -2-0-6-(-a-) -o-f -t-h-e -F-e-d-e-r-a-l 
-P-o-w-e-r -A-c-t -(-1-6 -U-.-S-.-C-. -8-2-4-e-(-a-)-) -i-s 
-a-m-e-n-d-e-d---
            -(-1-) -b-y -i-n-s-e-r-t-i-n-g -`-`-(-1-)-'-' 
        -i-m-m-e-d-i-a-t-e-l-y -a-f-t-e-r -`-`-(-a-)-'-'-; -a-n-d
            -(-2-) -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g-:
    -`-`-(-2-) -N-o-t-w-i-t-h-s-t-a-n-d-i-n-g -a-n-y -p-r-o-v-i-s-i-o-n 
-o-f -t-h-e -P-u-b-l-i-c -U-t-i-l-i-t-y -H-o-l-d-i-n-g -C-o-m-p-a-n-y 
-A-c-t -o-f -1-9-3-5-, -i-f -a -p-u-b-l-i-c -u-t-i-l-i-t-y 
-e-n-g-a-g-e-s -i-n -a -t-r-a-n-s-a-c-t-i-o-n -w-i-t-h -a-n 
-a-f-f-i-l-i-a-t-e-d -c-o-m-p-a-n-y-, -t-h-e -C-o-m-m-i-s-s-i-o-n 
-s-h-a-l-l -h-a-v-e -t-h-e -a-u-t-h-o-r-i-t-y -t-o -r-e-v-i-e-w -a-n-d 
-d-i-s-a-l-l-o-w -t-h-e -c-o-s-t-s -a-s-s-o-c-i-a-t-e-d -w-i-t-h 
-s-u-c-h -t-r-a-n-s-a-c-t-i-o-n -f-o-r -t-h-e -p-u-r-p-o-s-e-s -o-f 
-d-e-t-e-r-m-i-n-i-n-g -a -j-u-s-t -a-n-d -r-e-a-s-o-n-a-b-l-e -r-a-t-e 
-u-n-d-e-r -s-u-b-s-e-c-t-i-o-n -(-a-)-(-1-)-.-'-'-.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multistate Utility Consumer 
Protection Act of 1994''.

SEC. 2. AUTHORITY TO DISALLOW RECOVERY OF CERTAIN COSTS UNDER FEDERAL 
              POWER ACT.

    Section 318 of the Federal Power Act is amended--
            (1) by inserting ``(a)'' after ``Sec. 318.''; and
            (2) by adding at the end thereof the following new 
        subsections:
    ``(b)(1) The Commission shall have the authority to disallow 
recovery in jurisdictional rates of any costs incurred by a public 
utility pursuant to a transaction that has been authorized under 
section 13(b) of the Public Utility Holding Company Act of 1935, 
including costs allocated to such public utility in accordance with 
subsection (d), if the Commission determines that the recovery of such 
costs is unjust, unreasonable, or unduly preferential or discriminatory 
under sections 205 or 206 of this Act.
    ``(2) Nothing in the Public Utility Holding Company Act of 1935, or 
any actions taken thereunder, shall prevent a State commission from 
exercising its jurisdiction to the extent otherwise authorized under 
applicable law with respect to the recovery by a public utility in its 
retail rates of costs incurred by such public utility pursuant to a 
transaction authorized by the Securities and Exchange Commission under 
section 13(b) between an associate company and such public utility, 
including costs allocated to such public utility in accordance with 
subsection (d).
    ``(c) In any proceeding of the Commission to consider the recovery 
of costs described in subsection (b)(1), there shall be a rebuttable 
presumption that such costs are just, reasonable, and not unduly 
discriminatory or preferential within the meaning of this Act.
    ``(d)(1) In any proceeding of the Commission to consider the 
recovery of costs, the Commission shall give substantial deference to 
an allocation of charges for services, construction work or goods among 
associate companies under section 13 of the Public Utility Holding 
Company Act of 1935, whether made by rule, regulation, or order of the 
Securities and Exchange Commission prior to or following the enactment 
of this subsection.
    ``(2) If the Commission pursuant to subsection (d)(1) establishes 
an allocation of charges that differs from an allocation established by 
the Securities and Exchange Commission with respect to the same 
charges, the allocation established by the Federal Energy Regulatory 
Commission shall be effective twelve months from the date of the order 
of the Federal Energy Regulatory Commission establishing such 
allocation, and binding on the Securities and Exchange Commission as of 
that date.
    ``(e) An allocation of charges for services, construction work, or 
goods among associate companies under section 13 of the Public Utility 
Holding Company Act of 1935, whether made by rule, regulation, or order 
of the Securities and Exchange Commission prior to or following 
enactment of this subsection, shall prevent a State commission from 
using a different allocation with respect to the assignment of costs to 
any associate company.
    ``(f) Subsection (b) shall not apply to--
            ``(1) any cost incurred and recovered prior to July 15, 
        1994, whether or not subject to refund or adjustment; or
            ``(2) any uncontested settlement approved by the Commission 
        or a State commission prior to the date of enactment of the 
        Multistate Utility Consumer Protection Act of 1994.
    ``(g) Impact on Other Matters.--The enactment of the Multistate 
Utility Consumer Protection Act of 1994 shall in no way affect FERC 
Docket No. FA89-28.
    ``(h) Savings Provision.--Section 318(b) of the Federal Power Act 
shall not apply to any cost incurred and recovered prior to the date of 
enactment of the Multistate Utility Consumer Protection Act of 1994 
pursuant to a contract or other arrangement for the sale of fuel from 
Windsor Coal Company or Central Ohio Coal Company which has been the 
subject of a determination by the Securities and Exchange Commission 
prior to the date of enactment of the Multistate Utility Consumer 
Protection Act of 1994, or any cost prudently incurred after the date 
of enactment of the Multistate Utility Consumer Protection Act of 1994 
pursuant to such a contract or other such arrangement on or before 
December 31, 2000.''.