[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4183 Introduced in House (IH)]







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 
  qualifying small power producers 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.


_______________________________________________________________________


                    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 producers 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 Representatives 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 Policies Act of 1978 
        (``PURPA'') from engaging in certain ratepayer protection 
        activities critical to ensuring 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 preempted 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 Congress' intent 
        that States have the authority--
                    (A) to ensure that rates charged by QFs to 
                purchasing electric utilities (i) are just and 
                reasonable to the electric consumers of such purchasing 
                electric utilities and in the public interest; and (ii) 
                do not exceed the incremental cost to such purchasing 
                electric utilities of alternative electric energy at 
                the time of delivery; and
                    (B) to establish effective programs for monitoring 
                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.

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 authority 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 capacity. Each State regulatory authority may also establish 
programs for monitoring 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 qualifying facilities. Each State 
regulatory authority may require that any contract entered into before 
the date of the enactment of the preceding sentence 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 Commission 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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