[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4798 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4798

    To provide for the restructuring of the electric power industry.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 10, 1998

 Mr. Kucinich introduced the following bill; which was referred to the 
                         Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
    To provide for the restructuring of the electric power industry.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited the ``Electricity Consumer, 
Worker, and Environmental Protection Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Severability.
Sec. 5. Enforcement.
           TITLE I--FEDERAL STANDARDS FOR ELECTRICITY SERVICE

Sec. 101. Worker protections.
Sec. 102. Consumer privacy.
Sec. 103. Payment plans.
Sec. 104. Bills.
Sec. 105. Dispute resolution.
Sec. 106. Distribution service and supply service quality standards.
Sec. 107. Citizen utility boards.
Sec. 108. Office of Consumer Counsel.
Sec. 109. Prohibition of power plant bailouts.
Sec. 110. Prohibition of affiliate abuses and cross-subsidies.
Sec. 111. Mergers.
Sec. 112. Pollution standards.
Sec. 113. National Electric Public Benefit Board.
Sec. 114. National Electric Public Benefit Fund.
Sec. 115. Renewable energy portfolio standards.
Sec. 116. Net-metering and interconnection standards.
Sec. 117. Civil liability.
           TITLE II--STATE STANDARDS FOR ELECTRICITY SERVICE

Sec. 201. State certification for retail deregulation.
Sec. 202. Prohibition of cost shifting.
Sec. 203. Prohibition of affiliate abuses and cross-subsidies.
Sec. 204. Prohibition of excessive generation market power.
Sec. 205. Basic service.
Sec. 206. Aggregation of consumers.
Sec. 207. Worker protections.
Sec. 208. Licensing and disclosure requirements for retail suppliers.
Sec. 209. Regulation of distribution companies.
Sec. 210. Change of supplier.
Sec. 211. Distribution service disconnections and supply terminations.
Sec. 212. Credit and collection practices.
Sec. 213. Unfair trade practices.
Sec. 214. Meters.
Sec. 215. Exemption rescinded from Equal Credit Opportunity Act.
Sec. 216. Consumer remedies.

SEC. 2. FINDINGS.

    [To be supplied]

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency.
            (2) The term ``affiliate'' of a specific company means any 
        company 5 percent or more of whose outstanding voting 
        securities are owned, controlled, or held with power to vote, 
        directly or indirectly, by such specific company.
            (3) The term ``aggregator'' means any person that purchases 
        or acquires retail electricity on behalf of two or more 
        consumers.
            (4) The term ``ancillary services'' shall have the same 
        meaning assigned to it by the Commission.
            (5) The term ``antitrust law'' includes ``an Act to protect 
        Trade and Commerce against unlawful restraint and monopolies 
        approved July 2, 1890'' (The Sherman Act, 15 U.S.C. 1-7); 
        sections seventy-three to seventy-seven, inclusive of an Act 
        entitled ``An Act to reduce taxation, to provide revenue for 
        the Government and for other purposes of August 27, 1894'' (The 
        Wilson Tariff Act, 15 U.S.C. 8-11; section 77 of The Wilson 
        Tariff Act was not codified); an Act to supplement existing 
        laws against unlawful restraint and monopolies, and for other 
        purposes, approved October 15, 1914 (The Clayton Act, 15 U.S.C. 
        12-22 and 27, and 29 U.S.C. 52 and 53); and an Act to create a 
        Federal Trade Commission, to define its powers and duties, and 
        for other purposes approved September 26, 1914 (The Federal 
        Trade Commission Act, 15 U.S.C. 41 et seq.)
            (6) The term ``associate company'' of a company means any 
        company in the same holding company system with such company.
            (7) The term ``basic service'' means the supply and 
        delivery of electricity to a consumer in instances where the 
        consumer is unable or unwilling to choose a supplier in States 
        that have deregulated retail sales of electricity.
            (8) The term ``Board'' means the National Electric Public 
        Benefit Board established under section 113.
            (9) The term ``class'' or ``customer class'' means a group 
        of customers with similar characteristics (e.g., residential, 
        commercial, industrial, etc.), identified for the purpose of 
        setting a rate for electric service.
            (10) The term ``commercial customer'' means a company that 
        has traditionally receives a commercial rate for electricity, 
        as opposed to a residential or industrial rate. ``Small 
        commercial customers'' are commercial customers with a monthly 
        peak demand less than 1,000 kW, and ``large commercial 
        customers'' include all other commercial customers.
            (11) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
            (12) The term ``company'' means a corporation, not-for-
        profit organization, joint stock company, partnership, 
        association, business trust, organized group of persons, 
        whether incorporated or not, or a receiver or receivers, 
        trustee or trustees of any of the foregoing.
            (13) The terms ``consumer'' and ``customer'' mean a person, 
        government, corporation, or a company that purchases retail 
        electricity for ultimate consumption.
            (14) The term ``corporation'' means any corporation, not-
        for-profit organization, joint-stock company, partnership, 
        association, rural electric cooperative, municipal utility, 
        business trust, organized group of persons, whether 
        incorporated or not, or a receiver or receivers, trustee or 
        trustees of any of the foregoing.
            (15) The term ``distribution company'' means any company 
        that owns or operates facilities used to deliver retail 
        electricity for ultimate consumption.
            (16) The term ``distribution facilities'' means facilities 
        used to provide retail electricity for ultimate consumption.
            (17) The term ``distributor'' means a retail electricity 
        distributor.
            (18) The term ``electric generator'' means a person 
        generating electricity.
            (19) The term ``electric utility company'' means any 
        company that owns or operates facilities used for the 
        generation, transmission, or distribution of electricity for 
        sale.
            (20) The term ``end-use consumer'' means a person that 
        purchases electricity based on metered use but does not resell 
        electricity based on metered use.
            (21) The term ``Fund'' means the National Electric Public 
        Benefit Fund established by section 113.
            (22) The term ``gas utility company'' means any company 
        that owns or operates facilities used for distribution at 
        retail (other than the distribution only in enclosed portable 
        containers) of natural or manufactured gas for heat, light, or 
        power.
            (23) The term ``high-level nuclear waste'' means nuclear 
        fuel that has undergone nuclear fission, or any nuclear fuel 
        contaminated by nuclear fuel that has undergone nuclear 
        fission.
            (24) The term ``holding company system'' means a holding 
        company together with its subsidiary companies.
            (25) The term ``investor-owned company'' means any company 
        whose shares are owned by private individuals or companies.
            (26) The term ``large hydroelectric facility'' means a 
        facility which has a power production capacity which, together 
        with any other facilities located at the same site, is greater 
        than 80 megawatts.
            (27) The term ``load pocket'' means a portion of the 
        generation, transmission, and distribution network in which 
        most of the electricity consumed by electric loads is supplied 
        by generating plants located close to the loads, because 
        transmission constraints limit the amount of electricity 
        available from more distant generating plants.
            (28) The term ``low-level nuclear waste'' means radioactive 
        waste not classified as high-level radioactive waste, 
        transuranic waste, spent nuclear fuel, or byproduct materials 
        as defined in section 11e(2) of the Atomic Energy Act of 1954 
        (42 U.S.C. 2021). This definition shall apply notwithstanding 
        any declaration by the Federal Government or any State that any 
        radioactive material is exempt from any regulatory control.
            (29) The term ``municipal utility'' means a city, county, 
        irrigation district, drainage district, public utility 
        district, or other political subdivision or agency of a State 
        competent under the laws thereof to carry on the business of a 
        retail electricity distributor and/or a retail electricity 
        supplier.
            (30) The term ``person'' means an individual or 
        corporation.
            (31) The term ``public utility company'' means an electric 
        utility company or gas utility company but does not mean a 
        qualifying facility as defined in the Public Utility Regulatory 
        Policies Act, or an exempt wholesale generator or a foreign 
        utility company defined in the Energy Policy Act of 1992.
            (32) The term ``public utility holding company'' means--
                    (A) any company that directly or indirectly owns, 
                controls, or holds with power to vote, 10 percent or 
                more of the outstanding voting securities of a public 
                utility company or of a holding company of any public 
                utility company; and
                    (B) any person, determined by the Securities and 
                Exchange Commission, after notice and opportunity for 
                hearing, to exercise directly or indirectly (either 
                alone or pursuant to an arrangement or understanding 
                with one or more persons) such a controlling influence 
                over the management or policies of any public utility 
                or holding company as to make it necessary or 
                appropriate for the protection of consumers with 
                respect to rates that such person be subject to the 
                obligations, duties, and liabilities imposed in this 
                title upon holding companies.
            (33) The term ``regulated service'' means a wholesale or 
        retail service of which the price or rate is regulated by a 
        Federal, State, or local agency or board.
            (34) The term ``renewable energy'' means electricity 
        generated from organic waste biomass (not including municipal 
        solid waste or black liquor), dedicated biomass energy crops, 
        landfill gas, geothermal, solar, or wind resources.
            (35) The term ``renewable energy credit'' means a tradable 
        certificate of proof that one kilowatt-hour of renewable energy 
        was generated by any person.
            (36) The term ``retail deregulation'' means any action 
        taken by a State, with respect to retail electricity service, 
        that reduces the public control and oversight of business 
practices that affect the public interest.
            (37) The term ``retail electricity'' means electricity and 
        ancillary services sold for ultimate consumption.
            (38) The term ``retail electricity distributor'' means any 
        person who delivers retail electricity to consumers regardless 
        of whether the consumers purchase such electricity from the 
        distributor or an alternative supplier. A retail electricity 
        distributor may also be a retail electricity supplier.
            (39) The term ``retail electricity service'' means the 
        production, generation, retail transmission, distribution, 
        aggregation, retail marketing, retail brokering, retail 
        selling, or other retail supplying of electricity, but does not 
        mean transmission in interstate commerce.
            (40) The term ``retail electricity supplier'' means any 
        person that sells retail electricity to consumers, including 
        without limitation regulated utility companies or affiliates or 
        associates of such companies, companies unaffiliated or not 
        associated with regulated utility companies, municipal 
        utilities, cooperative utilities, local governments, and 
        special districts.
            (41) The term ``rural electric cooperative'' means an 
        enterprise or organization owned by and operated for the 
        benefit of those receiving retail electricity (usually 
        distribution and supply) and other services from the 
        cooperative, many of which have received loans from the 
        Administrator of the Rural Electrification Administration or 
        the Rural Utilities Service under the Rural Electrification Act 
        of 1936.
            (42) The term ``Secretary'' means the Secretary of Energy.
            (43) The term ``seller'' means a retail electricity 
        distributor or a retail electricity supplier.
            (44) The term ``State'' means any State, admitted to the 
        union, the District of Columbia, and any organized territory of 
        the United States.
            (45) The term ``State regulatory authority'' means the 
        regulatory body of a State or municipality having sole 
        jurisdiction to regulate rates and charges for the distribution 
        of electricity to consumers within the State or municipality.
            (46) The term ``subsidiary company'' of a holding company 
        means--
                    (A) any company 10 percent or more of the 
                outstanding voting securities of which are directly or 
                indirectly owned, controlled, or held with power to 
                vote, by such holding company; and
                    (B) any person the management or policies of which 
                the Securities and Exchange Commission, after notice 
                and opportunity for hearing, determines to be subject 
                to a controlling influence, directly or indirectly, by 
                such holding company (either alone or pursuant to an 
                arrangement or understanding with one or more other 
                persons) so as to make it necessary for the protection 
                of consumers that such person be subject to the 
                obligations, duties, and liabilities imposed upon 
                subsidiary companies of public utility holding 
                companies.
            (47) The term ``supplier'' means a retail electricity 
        supplier.
            (48) The term ``transmission company'' means any company 
        that owns or operates facilities used to transmit electricity, 
        but does not include distribution facilities as determined by 
        the Commission.
            (49) The term ``transmission system'' means all facilities, 
        including federally owned facilities, transmitting electricity 
        in interstate commerce in a particular region, including all 
        facilities transmitting electricity in the State of Texas and 
        those providing international interconnections, but does not 
        include local distribution facilities as determined by the 
        Commission.
            (50) The term ``universal service'' means any State or 
        Federal program that ensures safe, affordable, and reliable 
        access to retail electricity services by any consumer 
        regardless of age, race, creed, color, national origin, 
        ancestry, sex, marital status, sexual orientation, lawful 
        source of income, amount of income, disability, or familial 
        status or location of domicile or business, or whether the 
        consumer is located in an economically distressed geographic 
        area.
            (51) The term ``wholesale electricity'' means electricity 
        and ancillary services sold for resale.
            (52) The term ``wholesale electricity supplier'' means any 
        person that sells wholesale electricity.
            (53) The term ``voting security'' means any security 
        presently entitling the owner or holder thereof to vote in the 
        direction or management of the affairs of a company.

SEC. 4. SEVERABILITY.

    If any provision of this Act, or the application of such provision 
to any person or circumstance, shall be held invalid, the remainder of 
the Act, and the application of such provision to persons or 
circumstances other than those as to which it is held invalid, shall 
not be affected thereby.

SEC. 5. ENFORCEMENT.

    (a) In General.--If any individual or corporation or any other 
retail electricity distributor or supplier fails to comply with the 
requirements of this Act, any aggrieved person may bring an action 
against such entity to enforce the requirements of this Act in the 
appropriate Federal district court.
    (b) Court Action.--Notwithstanding any other provision of law, any 
person seeking redress from an order, rule, or other action taken 
pursuant to the Act by the Commission, or any other Federal agency, or 
a regulatory board created by this Act may file a petition for review 
of such order, rule, or other action within 30 days in the United 
States Court of Appeals where such person resides or in the United 
States Court of Appeals for the District of Columbia circuit.
    (c) State Law.--Notwithstanding any other provision of law, any 
person seeking redress from an order, rule, or other action taken 
pursuant to the Act by a State agency may appeal the order, rule, or 
other action in accordance with State law.

           TITLE I--FEDERAL STANDARDS FOR ELECTRICITY SERVICE

SEC. 101. WORKER PROTECTIONS.

    (a) In General.--Workers of companies that install, operate, and 
maintain generation, transmission, or distribution facilities, or any 
person or company that enters into a contract to perform these 
functions, shall have the requisite knowledge, skills, and competence 
to perform these functions in a safe and responsible manner in order to 
provide safe and reliable service. Given the critical necessity for 
trained and qualified personnel to operate all segments of the electric 
utility industry, the provisions of the 1994 National Skills Standards 
Act and title V of the Goals 2000: Educate America Act shall take 
effect for all electric utility workers within 180 days after the 
effective date of this Act.
    (b) Generating Plants.--All generating plants shall be subject to 
State and Federal general industry requirements as established by the 
Occupational Safety and Health Administration and shall undergo 
periodic government inspection.
    (c) Transfer of Ownership.--(1) In the event of a sale, purchase, 
or any other transfer of ownership of one or more divisions or business 
units, generating stations, and/or generating units of an electric 
utility, the electric utility's contract and/or agreements with the 
acquiring entity or persons shall require that the entity or persons 
hire a sufficient number of nonsupervisory employees to operate and 
maintain the station, division or unit by initially making offers of 
employment to the nonsupervisory workforce of the electric utility's 
division, business unit, generating station or generating unit at no 
less than the wage rates, and substantially equivalent fringe benefits 
and terms and conditions of employment, that are in effect at the time 
of transfer of ownership of said division, business unit, generating 
station and/or generating units; and said wage rates and substantially 
equivalent fringe benefits and terms and conditions of employment shall 
continue for at least 30 months from the time of said transfer of 
ownership unless the parties mutually agree to different terms and 
conditions of employment within that 30-month period. If there is 
litigation concerning the sale, or other transfer of ownership of the 
electric utility's divisions, business units, generating station, or 
generating units, the 30-month period will begin on the date the 
acquiring entity or persons take control or management of the 
divisions, business units, generating station or generating units of 
the electric utility.
    (2) If a utility transfers ownership of one or more divisions, 
business units, generating stations, and/or generating units of an 
electric utility to a majority-owned subsidiary, that subsidiary shall 
continue to employ the utility's employees who were employed by the 
utility at such division, business unit, or generating station at the 
time of the transfer under the same terms and conditions of employment 
as those employees enjoyed at the time of the transfer.
    (3) If ownership of the subsidiary is subsequently sold or 
transferred to a third party, the transition provisions of paragraph 
(1) shall apply.
    (4) An electric utility company shall offer a transition plan to 
those employees who are not offered jobs by the acquiring entity if 
that entity has a need for fewer workers.

SEC. 102. CONSUMER PRIVACY.

    (a) In General.--A consumer shall have a right to the privacy of 
billing, payment, and specific usage and appliance information that is 
obtained by the seller in the normal course of business.
    (b) Customer-Specific Information.--A seller shall obtain the 
permission of the consumer in writing before releasing customer-
specific information. A customer's permission cannot be provided with a 
clause in a contract for the sale of electricity. Permission can only 
be obtained in writing on a separate document. Any form provided to the 
consumer to grant permission for the release of customer-specific 
information must clearly specify the type of recipient, the category of 
information proposed to be released, and how the consumer can rescind 
this permission at any time.
    (c) Rescission.--A consumer may rescind previously-granted 
permission at any time in writing to the person who solicited the 
permission. A rescission is effective no later than three business days 
after the consumer deposits it in the United States mail.
    (d) General Information.--A seller may at any time release generic 
information about a customer class or its customers in general, such as 
load and usage data, appliance penetration, demographic information, 
and payment experience. Generic customer information shall not be 
released without permission of the affected customers when the 
information concerns a customer class or group of customers that is 
small enough to reveal the probable usage, billing, or payment behavior 
of individual members of the customer group or class. There shall be a 
rebuttable presumption that a customer class or group with three or 
fewer members meets this criteria. Furthermore, no seller shall sell or 
release information within its possession that would, if used as a 
basis to grant credit, result in a credit decision on a prohibited 
basis set forth in the Federal Equal Credit Opportunity Act (15 U.S.C. 
1691 et seq.).
    (e) Customer Names and Addresses.--A distributor shall make 
available a list of its current customer names and mailing addresses to 
any supplier upon request and for a reasonable fee. The revenues 
received by a distributor for the sale of this information shall be 
included in the determination of the distributor's revenue requirement. 
The State regulatory authority may impute revenues to the distributor 
to reflect the market value of the information sold or provided to any 
supplier.
    (f) Law Enforcement.--Federal or State authorities or any law 
enforcement agency may have access to individual customer records 
without the permission of the customer as necessary to conduct its 
regulatory duties and supervise sellers for compliance with Federal and 
State law and this Act. Federal or State authorities or any law 
enforcement agency shall retain any such records in its files as 
confidential and such records shall not be considered available to the 
public under any ``right to know'' or disclosure law without the 
written consent of the customer.
    (g) Credit History.--A seller may release a customer's credit 
history to a third party in an attempt to collect an unpaid debt or to 
report on the customer's payment history to a credit reporting agency 
under the terms of applicable State and Federal law.

SEC. 103. PAYMENT PLANS.

    All distributors and suppliers shall make available deferred 
payment plans and equal monthly budget billing plans.

SEC. 104. BILLS.

    (a) In General.--A bill issued by a retail electricity distributor 
or supplier shall contain the following information in a format 
understandable by the average customer:
            (1) The identity of the person issuing the bill, and if the 
        bill is issued by a retail electricity distributor under 
        contract with a supplier, the identity of the supplier, 
        respective addresses, and telephone numbers where the customer 
        can call or write with inquiries.
            (2) The type of meter in use by the customer, the meter 
        reading from the last bill, the current meter reading, and the 
        total kilowatt-hours used by the customer for the billing 
        period.
            (3) If the bill is based on an estimated reading, a 
        conspicuous disclosure of this fact.
            (4) Any additional services or products provided since the 
        issuance of the last bill.
            (5) The nature of the service being offered, including 
        information about interruptibility or curtailment of service.
            (6) The variable price (in dollars per kilowatt-hour, as 
        appropriate) and the fixed price (in dollars, as appropriate) 
        of electricity, transmission services, distribution services, 
        taxes; any charges, fees or penalties, and the price for other 
        products or services bought by or provided to the customer, all 
        stated in a manner that allows the customer to recalculate the 
        entire bill amount.
            (7) A clear and understandable description of all charges 
        associated with the service being offered, including access 
        charges, back-up service charges, and customer service charges, 
        except that all distributors shall not itemize any program or 
        charge included in the rates for services provided by or 
        included in the rates of the distributor other than those 
        specifically authorized by the State authority that regulates a 
        distributor's terms and conditions. This itemization shall not 
        include the costs of any public benefit program authorized by 
        any Federal or State authority.
            (8) Every supplier shall, on at least a monthly basis, 
        provide in billing inserts the following information, in a 
        clearly legible manner.
                    (A) a breakdown, on a percentage basis, of the 
                known sources of electricity sold or otherwise supplied 
                to the consumer. This breakdown shall provide 
                percentages of biomass power, coal-fired power, 
                hydropower, natural gas fired power, nuclear power, 
                oil-fired power, solar power, wind power, power from 
                municipal waste incinerators, other resources, and 
                unknown resources purchased from other companies 
                respectively. When a supplier has obtained electricity 
                from a power poor, this fact shall be disclosed, and 
                the supplier shall disclose the generic categories 
                (with percentages where applicable) of power dispatched 
                by the pool during the previous billing cycle--
                            (i) the percentage used shall be rounded to 
                        the nearest whole number; and
                            (ii) any source of electricity in paragraph 
                        (8)(A) that is not used shall be listed in the 
                        table and depicted as ``0 percent''.
                    (B) A pie-chart, which graphically depicts the 
                information in paragraph (8)(A), shall also be 
                provided--
                            (i) any source of electricity in paragraph 
                        (8)(A) that is not used shall be listed next to 
                        the pie-chart; and
                            (ii) each segment in the pie-chart shall be 
                        depicted in the following colors: biomass 
                        power--light brown; coal-fired power--black; 
                        hydropower--blue; natural gas-fired power--
                        grey; nuclear power--red; oil-fired power--dark 
                        brown; power from municipal waste 
                        incinerators--orange; solar power--yellow; wind 
                        power--green; and other resources--white.
                    (C) A table shall be provided which depicts the 
                actual emissions of particulate matter between 10 
                micrometers and 2.5 micrometers in diameter, 
                particulate matter 2.5 micrometers or less in diameter, 
                carbon dioxide, nitrogen oxides, sulfur dioxide, 
                mercury, and high-level and low-level nuclear waste 
                attributable to the sources of electricity identified 
                in paragraph (8)(A). The table shall also show the 
                theoretical emissions of such pollutants attributable 
                to the sources of electricity identified in paragraph 
                (8)(A), based on application of the Generation 
                Pollution Standards defined in subsection 112(c). The 
                table shall also show the word ``Good'' if the actual 
                emissions of such pollutants are less than or equal to 
                the theoretical emissions, and the word ``Bad'' if the 
                actual emissions of such pollutants are greater than 
                the theoretical emissions--
                            (i) the particulate matter emissions, 
                        carbon dioxide emissions, nitrogen oxides 
                        emissions, and sulfur dioxide emissions shall 
                        be stated in pounds;
                            (ii) the high-level nuclear waste shall be 
                        stated in pounds and curies; and
                            (iii) the low-level nuclear waste shall be 
                        stated in cubic feet and curies.
            (9) A disclosure of the customer's annual and monthly usage 
        for each of the previous 12 months (or a shorter period for a 
        customer who does not have a 12-month history with the 
        supplier). A distributor and supplier may coordinate this 
        disclosure to avoid duplication and enhance customer 
        understanding.
    (b) Services or Products.--A seller may include services or 
products on the customer's bill other than for the transmission, 
distribution and retail sale of electricity, but any such service or 
product shall be clearly identified and totaled separately from the 
sales of electricity.
    (c) Penalty.--The failure of a seller to accurately disclose 
information as required by this section shall be treated as a deceptive 
act in commerce under section 5 of the Federal Trade Commission Act (15 
U.S.C. 45).

SEC. 105. DISPUTE RESOLUTION.

    (a) In General.--Each seller shall maintain a written policy to 
govern the receipt, investigation, and resolution of customer inquiries 
and complaints. This policy shall be available to any customer upon 
request, including requests that occur by a consumer on a walk-in basis 
during normal business hours. Each distributor shall maintain and make 
publicly available on a walk-in basis during normal business hours the 
written policies of each seller that in any way uses the distribution 
facilities of the distribution. At a minimum this policy must include a 
method to track complaints by category and the retention of complaint 
records for a period of at least one year.
    (b) Complaints.--A consumer may initiate complaints against the 
distributor or against any seller that in any way uses the distribution 
facilities of the distributor through a filing at the distributor's 
offices, or at the offices of the seller, or at the offices of the 
State regulatory authority. A consumer must be able to file a complaint 
on a walk-in basis during normal business hours, in addition to any 
other complaint process established by the seller or the State 
regulatory authority. If a seller has provided a good faith response to 
the customer and the customer remains dissatisfied, the seller shall 
refer the customer to the State regulatory authority's toll-free number 
for customer complaints. For a three-business-day period after the 
referral, the seller shall not take any adverse action with respect to 
the customer's complaint. Upon receipt of any complaint from a customer 
who has attempted to resolve the matter with the seller, the State 
authority with jurisdiction shall promptly notify the seller who shall 
take no further adverse action with respect to the disputed amount 
prior to the State authority's decision on the complaint. The State 
authority may investigate and take whatever action it deems appropriate 
to resolve the complaint, including setting the terms for application 
for service, payment arrangement, billing error or dispute, allegation 
of violation of these rules or other matters within the jurisdiction of 
the State authority.
    (c) Disconnections.--There shall be no disconnections from service 
(distribution or supply) while a complaint is pending.
    (d) Arbitration.--There shall be no mandatory arbitration of 
complaints.
    (e) Right to Dispute Resolution.--No customer can be forced to pay 
a disputed bill in order to assert a customer's right to dispute 
resolution.

SEC. 106. DISTRIBUTION SERVICE AND SUPPLY SERVICE QUALITY STANDARDS.

    (a) Reports.--On a monthly basis each seller shall submit reports 
to the appropriate State regulatory authority and to the Energy 
Information Administration that describe, document, and measure the 
quantity, quality, and prices for distribution service and supply 
service.
    (b) Index.--The data reported in subsection (a) shall be used to 
create an index that shall track the performance of sellers in selected 
performance areas on an annual basis. The index shall be designed to 
conform to the following minimum requirements:
            (1) The index shall track a distributor's and supplier's 
        performance in a range of service quality and reliability 
        services for electricity consumers, including without 
        limitation, rates and prices for electricity service for all 
        customers, variable charges, access charges, back-up service 
        charges, customer service charges, customer satisfaction 
        surveys, business office and phone center performance, repair 
        and installation of new service, connection and disconnection 
        of service, delivery of State or federally mandated programs, 
        duration and frequency of outages, storm response, customer 
        complaint ratio, accuracy of meter readings and bills, as well 
        as compliance with specific service quality and credit and 
        collection rules applicable to both residential and business 
        customers.
            (2) In addition to items specifically mentioned in this 
        Act, the National Association of State Utility Consumer 
        Advocates, the National Association of Regulatory Utility 
        Commissioners, and the Energy Information Administration shall 
        determine the specific items to be measured and reported by 
        distributors and suppliers, with input by other government and 
        nongovernment organizations as needed.
            (3) The index shall specify the source and reporting format 
        of the data to be used by the distributors and suppliers in 
        their filings with State regulatory authorities and the Energy 
        Information Administration, and the State regulatory 
        authorities or the Energy Information Administration may audit 
        the data provided by the distributors or suppliers at the 
        expense of the distributor or the supplier.
            (4) The index shall track the performance of the sellers in 
        selected performance areas on an annual basis in comparison to 
        a baseline performance level that shall be set to reflect 
        either recent historical performance of the seller, taking into 
        account a reasonable margin of error, or at a higher 
        performance level if a State regulatory authority determines 
        that the seller's recent historical performance is not 
        adequate. If the seller has not maintained historical data 
        sufficient to establish a baseline for a particular performance 
        area and a State regulatory authority determines that the 
        performance area should be measured, the State regulatory 
        authority may authorize the use of recent data from comparable 
        sellers.
            (5) Each item in the index shall be worth an equal number 
        of points. Performance for one item shall not offset 
        performance in any other item in the index. If the seller's 
        annual performance is equal to or better than the baseline 
        performance level, the maximum number of points for that item 
        shall be awarded. If the seller's performance is below the 
        level established as the baseline, a percentage of the maximum 
        points shall be awarded equal to the percentage deterioration 
        in performance reported by the seller. In other words, if the 
        seller performs at 80 percent of the baseline performance 
        level, 80 percent of the maximum points will be awarded for 
        that item.
            (6) A specific measurement shall be adopted to assure the 
        seller fulfills its Universal Service obligations. A 
        distributor shall annually survey the ability of its customers 
        to afford electric service. The survey shall specifically 
        target customers with annual household income of 150 percent of 
        Federal poverty guidelines or less but may also target higher 
        income households as well. The survey shall obtain data on the 
        affordability of electric service by measuring the impact of 
        low, average, and high use customers at 0-50 percent, 51-100 
        percent, and 101-150 percent of Federal poverty guidelines, 
        using the average price charged for basic service during the 
        12-month period prior to the survey. The distributor shall 
        report the results of this survey to the State regulatory 
        authority and to the Energy Information Administration, both of 
        which will make them available for free to the general public. 
        When the results of the survey indicate that one or more groups 
        of customers with income of 150 percent of Federal poverty 
        guidelines or less pay, on average, over ten percent of their 
        annual income for electricity (15 percent if the household uses 
        electricity as the primary heating source), the distributor 
        shall expand or initiate programs to assist the affected 
        customer classes in the payment of their electric bill, to 
        reduce the amount of the bill with energy efficiency programs, 
        or both.
    (c) Penalty.--A penalty shall be established for distributors that 
fail to achieve the baseline performance level in any year with a 
dollar amount specified for each point in the index that is below the 
baseline performance level. The maximum penalty shall be determined by 
the State regulatory authority after taking into account the recent 
history of the distributor in achieving reasonable service quality and 
reliability. The dollar amount of penalty in any one year may vary with 
the degree of deterioration of performance by the distributor, but the 
entire penalty shall be assessed if the distributor's performance in 
any one year shows a 30 percent deterioration in performance in the 
overall index. A distributor shall not be awarded increased earnings 
for performance above the baseline level in any item.
    (d) Credit or Rebate.--Any penalties incurred under the index may 
be returned to all customers in the form of a one-time credit or rebate 
or paid to customers affected by the degradation of service, such as a 
failure to install new service on time, or both. In either case, in any 
year in which penalties are triggered, the distributor shall inform its 
customers of its failure to achieve the baseline level of service 
quality in a manner approved by the State regulatory authority.
    (e) Report.--Annually the Energy Information Administration shall 
make publicly available for free a report (including all supporting 
documentation) showing the scores of each retail electricity 
distributor and each retail electricity supplier for every item 
measured by the index. The report and all supporting data and 
documentation must be posted on the Internet for free downloading in a 
form usable with off-the-shelf spreadsheet and database software.

SEC. 107. CITIZEN UTILITY BOARDS.

    (a) Establishment.--Unless already in existence, each State shall 
create a not-for-profit membership corporation to be known as the 
``Citizens' Utility Board, Inc.'' herein referred to as the State CUB. 
An existing not-for-profit membership corporation located in a State 
may become the State CUB provided it meets all the requirements of this 
section.
    (b) Membership.--The membership of the State CUB shall consist of 
all residential consumers of electricity or natural gas 16 years of age 
or older who have contributed to the State CUB an annual membership 
fee, provided, that any person may resign from membership.
    (c) Duties, Rights and Powers of the State CUB.--(1) The State CUB 
shall--
            (A) represent and promote the interests of a State's 
        residential consumers of electricity or natural gas. All 
        actions by the State CUB under this section shall be directed 
        toward such duty;
            (B) inform, insofar as possible, all residential consumers 
        of electricity or natural gas about the State CUB including the 
        procedure for obtaining membership in the State CUB;
            (C) establish an annual membership fee which shall be set 
        at a level that provides sufficient funding for the State CUB 
        to effectively perform its powers and duties, and is affordable 
        for as many electricity or natural gas consumers as is 
        possible, but nevertheless is not less than five dollars; and
            (D) have all rights and powers accorded generally to, and 
        be subject to all duties imposed generally upon, not-for-profit 
        membership corporations under the laws of a State.
    (2) In addition, the State CUB shall have the following rights and 
powers:
            (A) To solicit and accept gifts, loans, grants or other aid 
        in order to support activities concerning the interests of 
        residential consumers of electricity or natural gas, except 
        that the State CUB may not accept gifts, loans or other aid 
        from any person or company that generates, transmits, 
        distributes, or supplies electricity or natural gas, or from 
        any director, employee or agent or member of the immediate 
        family of a director, employee or agent of any company that 
        generates, transmits, distributes, or supplies electricity or 
        natural gas.
            (B) To seek tax-exempt status under State and Federal law.
            (C) To conduct, support, and assist research, surveys, 
        investigations, planning activities, conferences, demonstration 
        projects, and public information activities concerning the 
        interests of residential consumers of electricity or natural 
        gas. The State CUB may accept grants, contributions, and 
        legislative appropriations for such activities.
            (D) To contract for services which cannot reasonably be 
        performed by its employees.
            (E) To represent the interests of residential consumers of 
        electricity or natural gas before regulatory agencies, 
        legislative bodies and other public bodies.
            (F) To initiate, to intervene as a party, to maintain, or 
        to otherwise participate on behalf of residential consumers of 
        electricity or natural gas in any proceeding that affects the 
        interests of residential consumers of electricity or natural 
        gas.
            (G) To support or oppose ballot propositions concerning 
        matters that it determines may affect the interests of 
        residential consumers of electricity or natural gas.
    (3) The State CUB shall have, in addition to the rights and powers 
enumerated in this section, such other incidental rights and powers as 
are reasonably necessary for the effective representation and 
protection of the interests of residential consumers of electricity or 
natural gas.
    (4) The State CUB shall not sponsor, endorse, or otherwise support, 
nor shall it oppose, any political party or the candidacy of any person 
for public office.
    (d) State-Assisted Fundraising by the State CUB.--(1) The State CUB 
shall have the authority to prepare and furnish to any State agency an 
enclosure that the State agency shall include within any mailing 
designated by the State CUB. The State CUB shall provide the agency 
with any such enclosure at a time reasonably in advance of the mailing. 
The State CUB may not require any State agency to mail an enclosure 
more than four times in any calendar year.
    (2) Enclosures furnished by the State CUB under this section shall 
be limited to soliciting information and money from consumers and 
explaining--
            (A) the purpose, history, nature, activities, and 
        achievements of the State CUB;
            (B) that the State CUB is open to membership by residential 
        consumers;
            (C) that the State CUB is not connected to any utility 
        company or governmental agency;
            (D) that the State CUB is a not-for-profit corporation 
        directed by its consumer members;
            (E) the procedure for contributing to or becoming a member 
        of the State CUB; and
            (F) the yearly membership fee.
    (3) Prior to furnishing an enclosure to a State agency for mailing, 
the State CUB shall seek and obtain the approval of the appropriate 
State authority of the content of the enclosure. The State authority 
shall approve the enclosure if it determines that the enclosure--
            (A) is not false or misleading, and
            (B) contains and is limited to the information permitted by 
        this section. The State authority shall be deemed to have 
        approved the enclosure unless it disapproves the enclosure 
        within fourteen days of receipt.
    (4) The State CUB shall reimburse each State agency for all 
reasonable incremental costs incurred by the State agency in complying 
with this section above the agency's normal mailing and handling costs, 
provided that--
            (A) the State agency shall first furnish the State CUB with 
        an itemized accounting of such additional costs; and
            (B) the State CUB shall not be required to reimburse the 
        State agency for postage costs if the weight of the State CUB's 
        enclosure does not increase the cost of the State agency 
        mailing. If the State CUB's enclosure increases the cost of the 
        State agency mailing, then it will be required to reimburse the 
        State agency for postage cost over and above what the agency's 
        postage cost would have been without the State CUB's enclosure.

SEC. 108. OFFICE OF CONSUMER COUNSEL.

    The Federal Power Act is hereby amended by adding the following new 
section after section 320:

``SEC. 320A. OFFICE OF CONSUMER COUNSEL.

    ``(a) Establishment.--There is hereby established within the 
Federal Energy Regulatory Commission an Office of the Consumer Counsel. 
The Office shall be under the direction and supervision of the Consumer 
Counsel. The Consumer Counsel shall be appointed by the Commission for 
a term of not less than 5 years, which term may be renewed at the 
discretion of the Commission.
    ``(b) Findings.--There is authorized to be appropriated in each 
fiscal year to the Office of Consumer Counsel $10,000,000, adjusted for 
inflation.
    ``(c) Staffing.--Staffing for the Office of Consumer Counsel may 
include attorneys, economists, utility analysts, engineers, human 
services experts, and other staff, professional and nonprofessional, 
and may include consultants to provide advice, analysis, testimony, and 
representation of the Consumer Counsel before the Commission.
    ``(d) Duties.--The Consumer Counsel shall represent the energy 
using and consuming public in proceedings before the Commission that 
may affect wholesale or retail electric or gas service, prices, and 
practices. The Consumer Counsel may intervene in any proceeding under 
this Act.
    ``(e) Reports.--The Consumer Counsel shall annually report to the 
Commission and the Congress on the impact of wholesale and retail 
deregulation in the electricity and gas industries on the using and 
consuming public, and on affordable access to such services, and shall 
make recommendations for policies to address such problems in these 
areas as the Consumer Counsel shall identify.
    ``(f) Removal.--The Consumer Counsel may be removed by the 
Commission for cause, after a hearing on any allegations giving rise to 
such cause.''.

SEC. 109. PROHIBITION OF POWER PLANT BAILOUTS.

    (a) Prohibition.--It shall be unlawful for any Federal or State 
authority to require consumers to subsidize, directly or indirectly, 
the costs of owning or operating any power plant owned by an investor-
owned company.
    (b) Exemption.--Subsection (a) shall not apply to any facility or 
power plant that qualifies for support from the National Electric 
Public Benefit Fund or that produces renewable energy credits.
    (c) Savings Clause.--Nothing in this section affects the rights and 
remedies of any party with respect to the purchase of electricity or 
capacity from or to a facility determined to be a qualifying small 
power production facility or a qualifying cogeneration facility under 
section 210 of the Public Utility Regulatory Policies Act of 1978 
pursuant to any contract or obligation to purchase or to sell 
electricity or capacity, including the right to recover the costs of 
purchasing such electricity or capacity.
    (d) Escrow.--On the effective date of this Act, every investor-
owned company that holds a license to operate a nuclear reactor shall 
place in escrow $1,000,000,000 per reactor to cover costs for nuclear 
reactor decommissioning, $500,000,000 per reactor for low-level 
radioactive waste disposal, and $500,000,000 per reactor for high-level 
radioactive waste disposal.

SEC. 110. PROHIBITION OF AFFILIATE ABUSES AND CROSS-SUBSIDIES.

    It shall be unlawful for any State-regulated investor-owned 
electric utility company, or associated holding company or any 
subsidiary thereof, to own directly or indirectly any voting security 
of any company that provides a nonregulated service, or that provides 
any type of service outside the United States, or to provide any 
nonregulated service.

SEC. 111. MERGERS.

    (a) In General.--No transactions subject to section 203 of the 
Federal Power Act shall be deemed to be consistent with the public 
interest within the meaning of section 203 if the Commission finds that 
the transaction may create or maintain a situation inconsistent with 
the antitrust laws in any product and geographic market in which 
electricity or capacity is offered for sale to wholesale or retail 
customers in the form of--
            (1) generation capacity;
            (2) transmission capacity; or
            (3) electricity.
    (b) Probable Efficiencies.--Probable efficiencies, including 
savings and benefits resulting from a merger, will not be weighed 
against the effects of a merger that may substantially lessen 
competition in any geographic market for electricity if such 
efficiencies could be achieved by means other than the merger.
    (c) Plan.--Any claim by applicants that a merger will produce 
probable efficiencies, including benefits and savings, must be 
supported by a plan accounting for such efficiencies, and explaining 
how they will be allocated among the merging utilities wholesale, 
retail, and transmission customers.
    (d) Open Access.--No merger of transmission-owning public utilities 
or disposition of transmission facilities shall be deemed to be 
consistent with the public interest within the meaning of section 203 
of the Federal Power Act, unless the applicants agree to offer 
comparable open access transmission with single system pricing.
    (e) Reduction of Transmission Capacity.--No transaction subject to 
section 203 of the Federal Power Act shall be deemed to be consistent 
with the public interest within the meaning of section 203 if it would 
result in a reduction of transmission capacity presently available for 
use by transmission customers.
    (f) Authorization.--Section 203(a) of the Federal Power Act is 
amended by inserting after the first sentence the following: ``It shall 
be unlawful for a holding company in a holding company system that 
includes an electric utility company to directly or indirectly 
purchase, acquire, or take any security of any electric utility company 
or of a holding company in a holding company system that includes an 
electric utility company, without first having secured an order of the 
Commission authorizing it to do so.''

SEC. 112. POLLUTION STANDARDS.

    (a) Definitions.--For purposes of this section:
            (1) Covered generation facility.--The term ``covered 
        generation facility'' means an electric generation facility 
        with a nameplate capacity of 15 megawatts or greater that uses 
        a combustion device or nuclear reactor to generate electricity 
        for sale.
            (2) Cogeneration.--The term ``cogeneration'' means a 
        process of simultaneously generating electricity and thermal 
        energy in which a portion of the energy value of fuel consumed 
        is recovered as heat that is used to meet heating or cooling 
        loads outside the generation facility.
            (3) Pollutant.--The term ``pollutant'' means--
                    (A) nitrogen oxides;
                    (B) sulfur dioxide;
                    (C) carbon dioxide;
                    (D) mercury;
                    (E) high-level nuclear waste;
                    (F) low-level nuclear waste; or
                    (G) any other substance that the Administrator may 
                identify by regulation as a substance the emission of 
                which into the air from a combustion device or nuclear 
                reactor used in the generation of electricity endangers 
                public health or welfare.
    (b) Nationwide Pollution Standards.--
            (1) Schedule.--Not later than July 1, 1999, the 
        Administrator shall promulgate a final regulation that 
        establishes a schedule of limits on the amount of each 
        pollutant that all covered generation facilities in the 
        aggregate nationwide shall be permitted to pollute in each 
        calendar year beginning in calendar year 2000.
            (2) Limit.--The nationwide pollution standard for calendar 
        year 2005 and each year thereafter, unless otherwise specified, 
        established under paragraph (1) shall be not greater than the 
        following:
                    (A) For nitrogen oxides, 1,660,000 tons.
                    (B) For sulfur dioxide, 3,580,000 tons.
                    (C) For carbon dioxide, 1,710,000,000 tons, 
                decreasing each year after 2005 in equal increments to 
                1,425,000,000 tons by 2010, decreasing each year after 
                2010 in equal increments to 380,000,000 tons by 2030.
                    (D) For mercury, the Administrator shall determine 
                a standard that allows for the elimination of mercury 
                emissions by 2010.
                    (E) For high-level waste, the Administrator shall 
                determine a standard that allows for the reduction of 
                the production of radiation (in curies) by 5 percent 
                from levels in 2000, and 2 percent for each year after 
                2005 radiation.
                    (F) For low-level nuclear waste, the Administrator 
                shall determine a standard that allows for the 
                reduction of the production of radiation (in curies) by 
                25 percent from levels in 2000, and 5 percent for each 
                year after 2005.
            (3) Adjustment.--The Administrator may adjust the schedule 
        established under paragraph (1), within the limits established 
        by paragraph (2), if the Administrator determines that an 
        adjustment would be in the best interests of the public health 
        and welfare.
    (c) Generation Pollution Standard.--
            (1) Annual determination.--
                    (A) In general.--Not later than October 1 of each 
                year, the Administrator, in consultation with the 
                Commission, shall determine the generation pollution 
                standard for nitrogen oxides, sulfur dioxide, carbon 
                dioxide, and mercury pollution in pounds per kilowatt-
                hour of electric production by covered generation 
                facilities for the next calendar year; and high-level 
                nuclear waste in pounds per kilowatt-hour and curies 
                per kilowatt-hour and low-level nuclear waste in cubic 
                feet per kilowatt-hour and curies per kilowatt-hour of 
                electric production by covered generation facilities 
                for the next calendar year.
                    (B) Method.--The Administrator shall determine by 
                regulation the method to be used in determining an 
                estimate under subparagraph (A).
            (2) Formula.--The generation pollution standard shall be 
        determined by dividing the annual nationwide pollution standard 
        as established under subsection (b) by the Administrator's 
        estimate of the nationwide kilowatt-hour production for the 
        next calendar year by all covered generation facilities.
    (d) Individual Pollution Allocation.--Only covered generation 
facilities that emit a pollutant shall receive an allocation for that 
pollutant, and such allocation shall be equal to--
            (1) the facility's annual generation of kilowatt-hours of 
        electricity multiplied by the generation pollution standard as 
        established in subsection (c); plus
            (2) the facility's annual generation of thermal energy used 
        to meet heating and cooling loads resulting from the 
        cogeneration process, which shall be expressed by the 
        Administrator in units of measurement that provide a reasonable 
        comparison between energy generated in the form of electricity 
        and energy generated in the form of thermal energy and then 
        multiplied by the generation pollution standard as established 
        under subsection (c).
    (f) Monitoring.--
            (1) Establishment of system.--The Administrator shall 
        establish a system for the accurate monitoring of the amount of 
        each pollutant that a covered generation facility emits during 
        a year.
            (2) Requirements.--The monitoring system under paragraph 
        (1) shall require--
                    (A) installation on each combustion device of a 
                continuous monitoring system for each pollutant; or
                    (B) use of an alternative mechanism that the 
                Administrator determines will provide data with 
                precision, reliability, accessibility, and timeliness 
                that are equal to or greater than those that would be 
                achieved by a continuous emissions monitoring system.
    (g) Powers.--The Administrator may promulgate such regulations, 
conduct such investigations, and take such other actions as are 
necessary to appropriate to implement and obtain compliance with this 
section and regulations promulgated under this section.

SEC. 113. NATIONAL ELECTRIC PUBLIC BENEFIT BOARD.

    (a) Establishment.--The Secretary shall establish a National 
Electric Public Benefit Board to carry out the functions and 
responsibilities described in this section and in section 114.
    (b) Membership.--The Board shall be composed of--
            (1) 1 representative of the Commission appointed by the 
        Commission;
            (2) 1 representative of the Secretary appointed by the 
        Secretary;
            (3) 1 representative appointed by the Secretary of the 
        Department of Health and Human Services;
            (4) 1 representative appointed by the Administrator of the 
        Rural Utilities Service of the Department of Agriculture;
            (5) 1 representative appointed by the Secretary of the 
        Department of Housing and Urban Development;
            (6) 1 representative appointed by the Secretary of the 
        Department of Labor.
            (7) 1 person nominated by the national organization 
        representing State regulatory commissioners and appointed by 
        the Secretary;
            (8) 1 person nominated by the national organization 
        representing State utility consumer advocates and appointed by 
        the Secretary;
            (9) 1 person nominated by the national organization 
        representing State energy offices and appointed by the 
        Secretary;
            (10) 1 person nominated by the national organization 
        representing energy assistance directors and appointed by the 
        Secretary; and
            (11) 1 representative of the Environmental Protection 
        Agency appointed by the Administrator.
    (c) Chairperson.--The Secretary shall select a member of the Board 
to serve as Chairperson of the Board.
    (d) Manager.--
            (1) Appointment.--The Board shall by contract appoint a 
        public benefits manager for a term of not more than 3 years, 
        which term may be renewed by the Board.
            (2) Compensation.--The compensation and other terms and 
        conditions of employment of the manager shall be determined by 
        a contract between the Board and the individual or the other 
        entity appointed as manager.
            (3) Functions.--The manager shall--
                    (A) monitor the amounts in the Fund;
                    (B) receive, review, and make recommendations to 
                the Board regarding applications from States under 
                subsection 5(b); and
                    (C) perform such other functions as the Board may 
                require to assist the Board in carrying out its duties 
                under this Act.

SEC. 114. NATIONAL ELECTRIC PUBLIC BENEFIT FUND.

    (a) Establishment.--
            (1) In general.--The Board shall establish an account or 
        accounts at 1 or more financial institutions, which account or 
        accounts shall be known as the ``National Electric Public 
        Benefit Fund'', consisting of amounts deposited in the fund 
        under subsection (c).
            (2) Status of fund.--The wires charges collected under 
        subsection (c) and deposited in the Fund--
                    (A) shall constitute electric system revenues and 
                shall not constitute funds of the United States;
                    (B) shall be held in trust by the manager of the 
                Fund solely for the purposes stated in subsection (b); 
                and
                    (C) shall not be available to meet any obligations 
                of the United States.
    (b) Use of Fund.--
            (1) Funding of universal electric service.--One third of 
        the amount in the Fund shall be used by the Board to provide 
funds to States for the support of affordable electric service for low 
and moderate income residential customers.
            (2) Funding of other public purpose programs.--The balance 
        of the amounts in the Fund shall be used by the Board to 
        provide matching funds to States for the support of State 
        public purpose programs relating to--
                    (A) the impacts on employees and their communities 
                of any necessary reductions in the utility workforce 
                directly caused by electricity deregulation. These 
                impacts shall be mitigated to the extent practicable 
                through such means as offers of voluntary severance, 
                job retraining, early retirement, continued health 
                care, outplacement and related benefits;
                    (B) renewable energy sources;
                    (C) energy conservation and efficiency; or
                    (D) research and development in areas described in 
                subparagraphs (B) and (C).
            (3) Distribution.--
                    (A) In general.--Except for amounts needed to pay 
                costs of the Board in carrying out its duties under 
                this section, the Board shall instruct the manager of 
                the Fund to distribute all amounts in the Fund to 
                States to fund public purpose programs under paragraphs 
                (1) and (2).
                    (B) Fund share; universal electric service 
                programs.--Funds for public purpose programs funded 
                under paragraph (1) shall be distributed to the States 
                in proportion to the State's relative share of the 
                Nation's aggregate annual consumption of electricity by 
                low- and moderate-income households.
                    (C) Fund share; other public purpose programs.--
                            (i) In general.--Subject to clause (iii), 
                        the Fund share of a public purpose program 
                        funded under paragraph (2) shall be 50 percent.
                            (ii) Proportionate reduction.--To the 
                        extent that the amount of matching funds 
                        requested by States for public purpose programs 
                        funded under paragraph (2) exceeds two-thirds 
                        of the maximum projected revenues of the Fund, 
                        the matching funds distributed to the States 
                        shall be reduced by an amount that is 
                        proportionate to each State's annual 
                        consumption of electricity compared to the 
                        Nation's aggregate annual consumption of 
                        electricity.
                            (iii) Additional state funding.--A State 
                        may apply funds to public purpose programs 
                        funded under paragraph (2) in addition to the 
                        amount of funds applied for the purpose of 
                        matching the Fund share.
            (4) Program criteria; universal electric service 
        programs.--
                    (A) Advance funding for certified programs.--States 
                that implement programs conforming to the standards set 
                forth in this section shall be eligible for advance 
                funding of such programs. The Board shall annually 
                certify to the Secretary the compliance of State 
                programs with this section. The Secretary shall provide 
                a mechanism to ensure that universal electric service 
                is provided to qualifying low-income consumers in 
                States that do not have a State program or whose State 
                program does not qualify for funds under this section.
                    (B) Universal electric service program criteria.--
                To be certified under this section, State programs must 
                contain the following provisions:
                            (i) Be designed and implemented to reduce 
                        the basic electricity cost burden of a State's 
                        low-income households to no more than twice the 
                        burden of a national average of non-low-income 
                        households.
                            (ii) Target benefits to the most vulnerable 
                        households.
                            (iii) Be available to all households with 
                        annual incomes at or below 150 percent of the 
                        Federal poverty guidelines, or 60 percent of 
                        the median State income, but States may 
                        determine a higher income level as the cutoff 
                        for eligibility.
                            (iv) Set aside no less than 30 percent of 
                        annual program funding for energy conservation 
                        and education programs providing direct 
                        efficiency services to qualifying low-income 
                        households.
                            (v) Reach the maximum eligible population, 
                        using the most cost-effective outreach and 
                        intake techniques.
                            (vi) Encourage, rather than discourage, 
                        energy conservation, and the prompt payment of 
                        bills.
                            (vii) Spend no more than 10 percent of 
                        program funds on administration of the program.
                            (viii) The program shall be coordinated 
                        with the delivery of low-income energy 
                        assistance and weatherization programs 
                        administered by State and local agencies, 
                        making use, to the fullest extent practicable, 
                        of existing community-based organizations who 
                        administer one or more fuel assistance and 
                        energy efficiency programs.
                            (ix) On an annual basis hold a public 
                        hearing on the design and implementation of 
                        such Universal Electric Service program.
                            (x) Provide intervenor funding to allow 
                        low-income consumers the opportunity to 
                        participate in State or Federal administrative 
                        proceedings establishing, monitoring, and 
                        overseeing the State restructuring plan.
            (5) Program criteria; other public purpose programs.--The 
        Board shall recommend eligibility criteria for public benefit 
        programs funded under paragraph (2) for approval by the 
        Secretary.
            (6) Application.--Not later than August 1 of each year 
        beginning in 1999, a State seeking funds under paragraph (1) or 
        matching funds under paragraph (2) for the following year shall 
        file with the Board, in such form as the Board may require, an 
        application--
                    (A) certifying that the funds will be used for an 
                eligible public purpose program; and specifying what 
                funds are requested and for programs under which 
                paragraph; and
                    (B) stating the amount of State funds earmarked for 
                the programs, and to be used for any required matching.
    (c) Wires Charge.--
            (1) Determination of needed funding.--Not later than August 
        1 of each year, the Board shall determine and inform the 
        Commission of the aggregate amount of wires charges that it 
        will be necessary to have paid into the Fund to pay matching 
        funds to States and pay the operating costs of the Board in the 
        following year.
            (2) Imposition of wires charge.--
                    (A) In general.--Not later than December 15 of each 
                year, the Commission shall impose a nonbypassable wires 
                charge to be paid directly into the Fund by the 
                operator of the wire on electricity carried through the 
                wire, this electricity to be measured as it exits the 
                busbar at a generation facility, and which impacts on 
                interstate commerce.
                    (B) Amount.--The wires charge shall be set at a 
                rate equal to the greater of--
                            (i) 7 mills per kilowatt-hour; or
                            (ii) a rate that is estimated to result in 
                        the collection of an amount of wires charges 
                        that is as nearly as possible equal to the 
                        amount of needed funding determined under 
                        paragraph (1).
            (3) Deposit in the fund.--The wires charge shall be paid by 
        the operator of the wire directly into the Fund at the end of 
        each month during the calendar year for distribution by the 
        public benefit manager.
            (4) Penalties.--The Commission shall assess against a wire 
        operator that fails to pay a wires charge as required by this 
        subsection a civil penalty in an amount equal to triple the 
        amount of the unpaid wires charge.
    (d) Auditing.--
            (1) In general.--The Fund shall be audited annually by a 
        firm of independent certified public accountants in accordance 
        with generally accepted auditing standards.
            (2) Access to records.--Representatives of the Secretary 
        and the Commission shall have access to all books, accounts, 
        reports, files, and other records pertaining to the Fund as 
        necessary to facilitate and verify the audit.
            (3) Reports.--
                    (A) In general.--A report on each audit shall be 
                submitted to the Secretary, the Commission, and the 
                Secretary of the Treasury, who shall submit the report 
                to the President and Congress not later than 180 days 
                after the close of the fiscal year.
                    (B) Requirements.--An audit report shall--
                            (i) set forth the scope of the audit; and
                            (ii) include--
                                    (I) a statement of assets and 
                                liabilities, capital, and surplus or 
                                deficit;
                                    (II) a statement of surplus or 
                                deficit analysis;
                                    (III) a statement of income and 
                                expenses;
                                    (IV) any other information that may 
                                be considered necessary to keep the 
                                President and Congress informed of the 
                                operations and financial condition of 
                                the Fund; and
                                    (V) any recommendations with 
                                respect to the Fund that the Secretary 
                                or the Commission may have.

SEC. 115. RENEWABLE ENERGY PORTFOLIO STANDARDS.

    (a) Minimum Renewable Generation Requirement.--(1) By March 22 of 
each calendar year after 2000, each retail electricity supplier shall 
submit to the Secretary renewable energy credits in an amount equal to 
the required annual percentage of the supplier's total kilowatt-hour 
sales to end-use customers in the preceding calendar year.
    (2) Nothing in this section shall be construed to prohibit any 
State from requiring additional renewable energy generation in that 
State under any program adopted by the State. A State may limit the 
benefits of any State renewable energy program to renewable energy 
generators located within the State's boundaries.
    (b) Required Annual Percentage.--For end-use customer sales in 
calendar year 2000, the required annual percentage for each retail 
electricity supplier shall be set equal to the amount of renewable 
energy in the United States as of December 1997, and shall be known as 
the ``baseline.'' The Secretary shall establish this baseline by rule 
based on an advance registration process for renewable energy credits 
or by conducting a survey of renewable energy generation plants. Such 
baseline shall be established after notice and opportunity for hearing 
but not later than 180 days after the enactment of this Act. Thereafter 
the required annual percentage for each such supplier shall increase as 
set forth in the following table:

Calendar year:                      Minimum Percentage Increase 
                                            (cumulative):
    2001..........................................  baseline plus 0.50%
    2002..........................................  baseline plus 1.00%
    2003..........................................  baseline plus 1.50%
    2004..........................................  baseline plus 2.00%
    2005..........................................  baseline plus 3.00%
    2006..........................................  baseline plus 4.00%
    2007..........................................  baseline plus 5.00%
    2008..........................................  baseline plus 6.00%
    2009..........................................  baseline plus 7.00%
    2010..........................................  baseline plus 8.00%
    2011 and beyond...............1.00% additional to the previous year
    (c) Submission of Credits.--An electric generator may satisfy the 
requirements of subsection (a) through the submission, by March 22 of 
the year following each calendar year, of renewable energy credits 
issued by the Secretary under this section for renewable energy 
generated in such calendar year or the previous calendar year. A 
renewable energy credit that is submitted to the Secretary may not be 
used for any other purposes thereafter.
    (d) Issuance of Renewable Energy Credits.--
            (1) In general.--The Secretary shall establish, by rule 
        after notice and opportunity for hearing but not later than 120 
        days after the enactment of this Act, a program to issue 
        renewable energy credits to renewable energy electric 
        generators that sell electricity to any other person. Renewable 
        energy credits shall be identified by type of generation and 
        State where the generator is located. Under such program, the 
        Secretary shall issue one renewable energy credit to any person 
        who generates and sells to any other person one kilowatt-hour 
        of renewable energy net of any on-site consumption.
            (2) Fees.--The Secretary shall impose and collect a fee on 
        electric generators awarded renewable energy credits in an 
        amount equal to the reasonable costs of administering the 
        Renewables Portfolio Standard program established under this 
        section which shall be due at the time such credits are issued.
            (3) PURPA contracts.--In the case of renewable energy sold 
        by the renewable energy electric generator at above-market 
        rates to a State regulated electric utility under a contract 
        entered into before the date of enactment of this Act that is 
        subject to section 210 of the Public Utility Regulatory 
        Policies Act of 1978, for the duration of such contract, the 
        utility shall be treated for purposes of the other provisions 
        of this section as the generator of such energy unless such 
        generator and utility agree to terminate such contract prior to 
        the expiration date set forth in the contract. The Secretary 
        shall settle any disputes regarding the calculation of above-
        market rates as it pertains to this section.
    (e) Sale or Exchange.--Renewable energy credits may be sold or 
exchanged by the person to whom issued or by any other person who 
acquires the credit. A renewable energy credit generated in any year 
that is not used to satisfy the minimum renewable generation 
requirement of subsection (a) for that year may be carried forward for 
use in the following year, but may not be carried forward for use in 
any subsequent year.
    (f) Rules and Regulations.--(1) The Secretary shall promulgate such 
rules and regulations as may be necessary to carry out this section, 
including but not limited to such rules and regulations requiring the 
submission of such information as may be necessary to verify renewable 
energy generation by persons applying for renewable energy credits 
under subsection (d), total end-use customer sales of any person 
submitting renewable energy credits for compliance under subsection 
(a), and to validate the renewable energy credits submitted by any 
person to the Secretary.
    (2) At the request of any State, the Secretary shall develop 
administrative procedures and promulgate additional rules and 
regulations as necessary to facilitate joint implementation of the 
national renewables portfolio standard and any renewables portfolio 
standard adopted by any State pursuant to subsection (a)(2).
    (g) Annual Reports.--The Secretary shall gather available data and 
devise measures to gauge compliance with the requirements of this 
section and the success of the Renewables Portfolio Standard program 
established under this section. On an annual basis not later than May 
31 of each year, the Secretary shall publish a report for the previous 
year that includes compliance data, program results, and steps taken to 
improve the program results.
    (h) Sunset.--The requirements of this section shall cease to apply 
90 days after the Secretary certifies in the annual report under 
subsection (g) that for the preceding year the market value of 
renewable energy credits or the number of credits traded or both has 
declined to such nominal levels that the administrative cost to 
implement the program is no longer justified.
    (i) Enforcement.--(1) The failure or refusal of any person to 
submit any required quantity of renewable energy credits shall be 
subject to a civil penalty of 3 times the estimated national average 
market value (as determined by the Secretary) for the calendar year 
concerned of such quantity of renewable energy credits. Any such 
penalty shall be due and payable without demand to the Secretary as 
provided in regulations to be issued by the Secretary pursuant to 
subsection (f). Any such payment shall be deposited in the United 
States Treasury pursuant to the Miscellaneous Receipts Act. Any penalty 
due and payable under this section shall not diminish the liability of 
the unit's owner or operator for any fine, penalty or assessment 
against the unit for the same violation under any other section of this 
Act.
    (2) The Secretary shall bring an action in the appropriate United 
States district court to impose a civil penalty on any person who fails 
or refuses to comply with subsection (a) or who fails to pay such 
penalty.

SEC. 116. NET-METERING AND INTERCONNECTION STANDARDS.

    The Public Utility Regulatory Policies Act of 1978 is amended by 
adding the following new section after section 604:

``SEC. 605. NET-METERING FOR RENEWABLE ENERGY.

    ``(a) Definitions.--For purposes of this section:
            ``(1) The term `eligible on-site generating facility' means 
        a facility on the site of an electric consumer with a peak 
        generating capacity of 2 megawatts or less that is fueled 
        solely by a renewable energy resource.
            ``(2) The term `renewable energy resource' means organic 
        waste biomass (not including municipal solid waste of black 
        liquor), dedicated biomass energy crops, landfill gas, 
        geothermal, solar, or wind resources.
            ``(3) The term `net-metering service' means a service to an 
        electricity consumer under which electricity generated by that 
        consumer from an eligible on-site generating facility and 
        delivered to the distribution system through the same meter 
        through which purchased electricity is received may be used to 
        offset electricity provided by the retail electricity supplier 
        to the consumer during the applicable billing period so that a 
        consumer is billed only for the net electricity consumed during 
        the billing period. If the net electricity consumed is less 
        than zero, then the consumer shall be paid during the next 
        billing period the average spot market price for the 
        electricity generated.
    ``(b) Requirement To Provide Net Metering Service.--Each retail 
electricity supplier shall make available upon request net metering 
service to any retail consumer whom the supplier currently serves or 
solicits for service.
    ``(c) Requirement To Provide Interconnection.--A retail electricity 
distributor shall permit the interconnection to its distribution system 
of an on-site generating facility if the facility meets the safety and 
power quality standards established by the Commission.
    ``(d) Rules.--The Commission shall prescribe safety and power 
quality standards and rules necessary to carry out this section. These 
standards and rules apply to any interconnections of an on-site 
generating facility with a distribution system, regardless of the size 
of the facility or the type of fuel used by the facility.''.

SEC. 117. CIVIL LIABILITY.

    (a) Liability.--A person who fails to abide by the requirements of 
this Act with respect to any person is liable to such person in the 
amount of--
            (1) any actual damage sustained by such person as a result 
        of such failure;
            (2) an amount not less than $100 nor more than $1,000 per 
        violation; and
            (3) in the case of any action to enforce this section, the 
        costs of the action, together with reasonable attorneys fees as 
        determined by the court.
    (b) Court Action.--Any action under this section may be brought in 
any United States District Court, or in any other court of competent 
jurisdiction, within three years from the date of violation.
    (c) Actions To Enforce.--An action to enforce this Act may also be 
brought by any State Attorney General of any other agency responsible 
for its enforcement.

           TITLE II--STATE STANDARDS FOR ELECTRICITY SERVICE

SEC. 201. RETAIL DEREGULATION.

    (a) Prior Deregulation.--If a State has enacted laws or regulations 
to deregulate retail sales of electricity prior to the effective date 
of this Act, a State shall meet the requirements of sections 202 and 
205 through 216 inclusive within 2 years after the effective date of 
this Act.
    (b) Future Deregulation.--For States that continue to regulate 
retail sales of electricity after the effective date of this Act, a 
State shall meet the requirements of sections 202 and 205 through 216 
inclusive before enacting laws or regulations that deregulate retail 
sales of electricity.

SEC. 202. PROHIBITION OF COST SHIFTING.

    (a) Rates.--No class of consumers in a State shall be charged rates 
for transmission or distribution service (or other regulated services) 
in excess of the class's proportional responsibility for the costs of 
providing these services.
    (b) Rate Differential.--On an annual basis, each State regulatory 
authority shall compute the rate differential for retail electric 
service between residential and industrial customers by comparing the 
total average residential rate and the total average industrial rate, 
based on monthly reports by suppliers to the State regulatory authority 
and the Energy Information Administration. As used in this subsection, 
``total average residential rate'' means the total residential revenues 
divided by the total residential kilowatt-hour sales; ``total average 
industrial rate'' means the total industrial revenues divided by total 
industrial kilowatt-hour sales; and ``rate differential'' means the 
difference between the total average residential rate and the total 
average industrial rate, divided by the total average residential rate.
    (c) Three Percent Differential.--If the State regulatory authority 
determines that the rate differential for electric service between 
residential and industrial customers has increased by three percentage 
points or more from the rate differential that existed on the day 
before the State enacted laws or regulations to deregulate retail sales 
of electricity, the State regulatory authority shall order each 
distributor to increase the access charge per kilowatt-hour to all 
industrial customers, and to reduce the access charge per kilowatt-hour 
to all residential customers, so that the rate differential remains 
within three percentage points or less of the rate differential that 
existed on the day before the State enacted laws or regulations to 
deregulate retail sales of electricity.

SEC. 203. PROHIBITION OF AFFILIATE ABUSES AND CROSS-SUBSIDIES.

    (a) Transfer of Assets.--Within 1 year after a State has enacted 
laws or regulations to deregulate retail sales of electricity, the 
State's investor-owned utilities shall--
            (1) transfer transmission assets to a regulated 
        transmission company; and
            (2) transfer the distribution assets to a regulated 
        distribution company.
    (b) Definitions.--For the purposes of this section, the terms 
``transmission company'' and ``distribution company'' mean transmission 
companies and distribution companies created to comply with subsection 
(a).
    (c) Prohibition.--It shall be unlawful for any person who owns 
directly or indirectly any voting security of any company that owns, 
operates, or leases generation facilities, or for any person who owns 
directly or indirectly any voting security of any company that sells 
electricity in wholesale or retail markets, to own directly or 
indirectly any portion of a transmission company or a distribution 
company.
    (d) Officers, Directors, Employees.--It shall be unlawful for any 
officer, director, or employee of a transmission company or a 
distribution company to have any affiliation with, or to own any 
security of any company, or any associated company thereof, that owns, 
operates, or leases generation facilities, or that sells electricity in 
wholesale or retail markets.
    (e) Ownership of Securities.--It shall be unlawful for any 
transmission company or any distribution company to own directly or 
indirectly any security of any other company.
    (f) Loans.--It shall be unlawful for any transmission company or 
any distribution company to borrow from any company, or any associated 
or affiliated company thereof, that owns, operates, or leases 
generation facilities, or that sells electricity in wholesale or retail 
markets.
    (g) Loans From Transmission or Distribution Companies.--It shall be 
unlawful for any person to borrow from any transmission company or any 
distribution company.
    (h) Service, Sales, or Construction Contracts.--It shall be 
unlawful for any transmission company or any distribution company to 
enter into any service, sales, or construction contract with any 
company, or any associated or affiliated company thereof, that owns, 
operates, or leases generation facilities, except for the provision of 
generation services that allow for the safe, reliable, and economical 
operation of a transmission system or a distribution system as 
determined through the use of the principles of distributed resources.
    (i) Use of Names, Etc.--It shall be unlawful for any transmission 
company or any distribution company to use, or to resemble in anyway, 
the name, logo, service mark, trademark, or trade name of any company, 
or any associated company thereof, that owns, operates, or leases 
generation facilities, or that sells electricity in wholesale or retail 
markets.
    (j) Additional Prohibitions.--An investor-owned electric utility, a 
transmission company, and a distribution company--
            (1) may not discriminate against any other person or 
        company in the provision of goods, services, facilities, and 
        information, or in the establishment of standards;
            (2) shall provide all goods, services, facilities, or 
        information, including marketing leads, to all other persons on 
        reasonable and nondiscriminatory terms and conditions; and
            (3) shall not provide, transfer, or permit the use of, or 
        access to, tangible or intangible assets of the investor-owned 
        electric utility, transmission company, or distribution 
        company.

SEC. 204. PROHIBITION OF EXCESSIVE GENERATION MARKET POWER.

    (a) In General.--Within 1 year after a State has enacted laws or 
regulations to deregulate retail sales of electricity, it shall be 
unlawful for any investor-owned generation company, or associated 
holding company or subsidiary thereof, or an affiliated company, to 
own, operate, lease, or otherwise control more than 20 percent of the 
State's power plants within the following categories:
            (1) Baseload power plants, defined as power plants with a 
        capacity factor greater than or equal to 50 percent.
            (2) Peaking power plants; defined as power plants with a 
        capacity factor less than 50 percent.
            (3) Power plants that primarily provide ancillary services, 
        including without limitation, load-following, spinning reserve, 
        replacement reserves, frequency regulation, and voltage 
        regulation.
    (b) Load Pockets.--If transmission constraints create load pockets 
within a State, then subsection (a) applies to the ownership, 
operation, or leasing of power plants located within each load pocket.

SEC. 205. BASIC SERVICE.

    (a) In General.--A distributor shall arrange for the provision of 
basic service to any residential and small commercial customer who has 
not chosen a supplier after having been notified of their opportunity 
to do so, and those whose supplier has failed or refused to provide 
further service to the customer. A distributor may arrange for the 
provision of basic service to any other customer upon request and upon 
mutually agreeable terms. The distributor shall automatically provide 
basic service to any customer whose supplier has failed or refused to 
provide service to that customer unless the customer has given 
instructions to either disconnect service or switch to a different 
supplier.
    (b) Bids.--The distributor shall annually solicit competitive bids 
for the provision of basic service from all suppliers licensed to do 
business in the State. If three or more suppliers submit proposals that 
meet the minimum terms contained in the bid document, the distributor 
shall accept the bid that best meets the terms of the bid requirements 
and offers the lowest price for electricity. If there are less than 
three suppliers submitting proposals meeting minimum terms, the State 
regulatory authority shall approve the price for basic service prior to 
the award of any bid by the distributor.
    (c) Terms.--The distributor shall include the following terms in 
the solicitation for proposals for provision of basic service:
            (1) The supplier shall provide customers with a choice 
        between a price for electricity which does not vary by time of 
        day or season and a price that varies by time of day and 
        season.
            (2) There shall be no administrative fee or extra charge 
        for a customer to obtain basic service. There shall be no fee 
        charged for any customer when the service is provided as a 
        result of a supplier's failure or refusal to serve a customer.
            (3) The current rules in effect governing credit and 
        collection activities, deposits, disconnection, late fees, 
        reconnection fees, winter disconnection rules or other 
        restrictions on disconnection for vulnerable customers, payment 
        arrangements, medical emergencies and other customer 
        protections shall be applicable to basic service.
            (4) The distributor shall bill and collect for basic 
        service charges, and the supplier shall reimburse the 
        distributor an agreed-upon amount to reflect the costs avoided 
        by the supplier due to this arrangement. The costs of basic 
        service in excess of the revenues received, including any costs 
        incurred to collect overdue amounts, shall be included in the 
        rates charged by the distributor to all its customers.

SEC. 206. AGGREGATION OF CONSUMERS.

    (a) Powers of Consumers.--(1) A State shall allow consumers to 
establish options for nonprofit public aggregation. A State shall allow 
consumers to utilize a traditional public process at the local level to 
authorize public aggregation in the form of new municipal electric 
systems; franchise contracts; community choice aggregation; cooperative 
buying clubs in unincorporated areas.
    (2) A State shall not diminish, restrict, or otherwise render 
ineffective the process or ability of consumers to establish or conduct 
public aggregation options. State regulatory bodies are to work 
cooperatively with local governments to enhance the process for 
carrying out the provisions of subsections (b), (c), (d), (e), (f), 
(g), and (h) below.
    (b) Municipalization.--A State shall facilitate the opportunities 
for consumers to establish new nonprofit municipal electric systems. 
Such facilitation shall include an arbitration process for asset 
valuation at original cost minus depreciation. Existing municipal 
electric systems and existing rural electric cooperative systems, as 
self-regulated by consumers, are to be exempted from all provisions of 
this section.
    (c) Franchise Contract.--A State shall facilitate the ability of 
consumers to utilize local franchise powers. A State shall allow 
municipalities or counties that have granted franchises to utilities at 
a prior time, whether the term of such franchise has expired or remains 
in effect, to offer such franchise for competitive bidding and contract 
award, provided such measures are authorized by consumers in a public 
process. Such franchises may contain terms to address combined 
distribution and power supply, or any segment of operations for retail 
electricity service.
    (d) Community Choice Aggregation.--A State shall allow consumers 
the option to establish nonfranchise aggregation of all consumers 
through their local government. Municipalities or counties shall be 
allowed to pass ordinances to undertake public aggregation of all 
classes of consumers, provided such measures are authorized by 
consumers in a public process. To accommodate those who may not wish to 
participate, at local discretion, the aggregation structure may include 
a process for individual consumers to ``opt-out'' during a defined time 
period. Community choice aggregation may address competitive bidding 
and contract award for power supply only, or additional services 
related to electric supply.
    (e) Buying Cooperatives in Unincorporated Areas.--Consumers in 
unincorporated areas without the benefit of organized local governments 
shall be allowed to combine their buying power in cooperative 
organizations; provided such organizations are nonprofit and 
nondiscriminatory.
    (f) Energy Efficiency Funds.--If a State authorizes or mandates 
collection of funds for energy efficiency programs, consumers who 
establish aggregation through a public process can recover and utilize 
funds collected from consumers within the aggregated jurisdiction. A 
plan for utilization of such funds is to be prepared and subject to 
approval at the local level, then submitted to State regulators for 
review of consistency with State energy goals.
    (g) Renewable Energy Funds.--If a State authorizes or mandates 
collection of funds for renewable energy education, support, or 
development, consumers who establish aggregation through a public 
process can recover and utilize funds collected from consumers within 
the aggregated jurisdiction. A plan for utilization of such funds is to 
be prepared and subject to approval at the local level, then submitted 
to State regulators for review of consistency with State energy goals.
    (h) Convergence of Utility Services.--If a State authorizes retail 
marketing of combined ``wires'' or energy services such as cable 
television, Internet, natural gas, electricity, telephone, and other 
related technologies, an entity established by consumers through a 
public process shall be allowed to combine any and all services deemed 
appropriate for provision to the aggregated consumers.

SEC. 207. WORKER PROTECTIONS.

    (a) Recovery of Costs.--Electric utilities shall be allowed to 
recover reasonable employee-related transition costs incurred and 
projected for programs that provide for offers of voluntary severance, 
job retraining, early retirement, continued health care, outplacement 
and related benefits. However, there shall be no recovery for employee-
related transition costs associated with officers and senior 
supervisory employees performing predominantly regulatory functions.
    (b) Unemployment Benefits.--States should consider extended 
unemployment benefits to any employee of an electric utility company 
who is terminated through no fault of his own as a result of 
electricity deregulation and is otherwise eligible for unemployment 
benefits. No such employee shall be denied or be determined to be 
ineligible for any such benefits if the employer has provided notice of 
the cessation of employment.
    (c) Plan.--Before any such reduction in the workforce, an electric 
utility shall present to its employees and their representatives a 
workforce reduction plan outlining the means by which the electric 
utility intends to mitigate the impact of such workforce reduction on 
its employees.

SEC. 208. LICENSING AND DISCLOSURE REQUIREMENTS FOR RETAIL SUPPLIERS.

    (a) Purpose.--The purpose of this section is to establish the 
jurisdiction of the State regulatory authority over retail electricity 
suppliers and to set forth the conditions under which such suppliers 
may obtain a license to sell retail electricity in a State.
    (b) License.--No retail electricity supplier shall engage in the 
business of the sale, marketing, brokering, or aggregating for the sale 
of electricity in a State without a valid license from the State 
regulatory authority. All retail electric suppliers who seek to do 
business in a State shall file an application with the State regulatory 
authority that includes the following information:
            (1) Legal name.
            (2) Business address.
            (3) That State where incorporated; date or organization; 
        copy of the articles of incorporation, association or other 
        form of organization.
            (4) Names and business address of all officers and 
        directors, partners; or other similar officials.
            (5) Name, title, and telephone number of customer service 
        contact person.
            (6) Name, title, and telephone number of regulatory contact 
        person.
            (7) Name, title, and address of registered agent in this 
        State for service of process.
            (8) Description of the nature of the business to be 
        conducted, a map showing the geographic area of the supplier's 
        intended marketing area, and a list of any restrictions on the 
        type or number of customers the supplier will seek to serve.
            (9) Evidence of the supplier's right, title, or interest in 
        generation supplies sufficient to meet the existing and 
        projected demands of its customers.
            (10) A copy of the standard contract proposed to be used by 
        the supplier for residential and small commercial customers.
            (11) Whether the applicant or any member of its board of 
        directors or officers have been or are the subject of State or 
        Federal investigation, license revocation or lawsuit, and, if 
        so, the identification of such States and proceedings.
            (12) Proof of holding a bond or other evidence of insurance 
        approved by the State regulatory authority in the amount 
        reflecting number of customers served and the amount of 
        electricity sold. The bond must be updated annually on the 
        anniversary of the approval of the license, based on the 
        supplier's average number of customers and the amount of 
        electricity sold. The bond shall carry an endorsement that 
        shall allow the issuer of the bond or insurer to pay such 
        amounts and in such a manner as ordered by the State regulatory 
        authority upon a finding of fraudulent conduct toward 
        consumers, actions which cause the electricity supply system to 
        become unreliable, revocation of the supplier's license, 
        abandonment by the supplier, or, upon complaint, a failure to 
        comply with the settlement's contract with the distributor. The 
        State regulatory authority may order the bond proceeds to be 
        paid to customers as restitution for fraudulent conduct, 
        violation of State law or State regulatory authority rule, or 
        to other individuals adversely affected by the supplier's 
        conduct.
    (c) Approval.--The application shall be deemed approved after 90 
days, unless the State regulatory authority initiates an adjudicatory 
proceeding by public notice that states the reason(s) why there is 
reason to believe that the application should be denied. The applicant 
shall have an opportunity to correct any deficiency noted by the State 
regulatory authority in writing or request a public hearing. A failure 
to comply with the application requirements or evidence that indicates 
a pattern of violation of State or Federal consumer protection laws and 
rules, including antitrust laws and securities rules, shall be 
sufficient to deny an application. A license shall remain valid for a 
period of five years unless sooner revoked.
    (d) Charges.--After a license is issued, a retail electricity 
supplier must inform the State regulatory authority in writing of any 
substantial change in the information submitted to obtain a license 
from the State regulatory authority within ten days of the event. The 
failure to provide such information in a timely manner shall be grounds 
for revocation of the license.
    (e) Revocation.--The State regulatory authority may revoke a 
license for the retail sale of electricity for cause after opportunity 
for public hearing. The State regulatory authority may issue an order 
that prevents a supplier from marketing or signing up new customers 
during the pendency of an investigation or revocation proceedings when 
it finds that there is probable cause to believe that consumers will be 
harmed or that the reliability of the electricity supply of a State 
will be harmed by the actions of the supplier.
    (f) Obligations to Distribution Companies.--A retail electricity 
supplier shall enter into a contract with each distributor that 
services its customers. The contract shall describe the billing 
arrangements between the distributor and the supplier, how information 
concerning customer status will be transmitted between the two 
entities, whether and under what conditions upstream metering will 
occur to facilitate settlements of nonhourly metered customers and 
other settlement issues. The contract shall be filed with the State 
regulatory authority by the retail electric supplier prior to the 
commencement of business by the supplier in this State.
    (g) Disclosure of Universal Service Programs.--A retail electric 
supplier shall inform every prospective customer of the availability of 
universal service programs for qualified customers and how customers 
can apply for such programs. A summary of such programs shall be 
provided in writing within ten days of commencement of service for 
residential customers.
    (h) State Regulatory Authority Access to Books and Records; 
Investigations; Fines.--The State regulatory authority shall have 
access to a retail electric supplier's books and records concerning its 
business within this State upon reasonable notice in order to 
investigate, upon reasonable cause, any alleged violation of this Act. 
The supplier shall make such books and records available to the State 
regulatory authority within this State at a location convenient to both 
parties. Upon reasonable cause, the State regulatory authority may 
initiate an investigation of the supplier's business in this State for 
the purpose of determining compliance with any provision of this Act. 
Upon initiating such investigation, the State regulatory authority 
shall notify the supplier and other interested parties and take such 
steps as are necessary and proper to protect the confidentiality of 
information obtained from suppliers that would unfairly impact the 
supplier's ability to attract future sales of electricity in this 
State. The State regulatory authority shall offer the supplier an 
opportunity to respond and request a public hearing. Upon a finding 
that the supplier has violated one or more provisions of this Act, the 
State regulatory authority may issue such orders as necessary, pursue a 
revocation of the supplier's license, order restitution to specific 
customers, and assess fines according to section 216 of this Act.

SEC. 209. REGULATION OF DISTRIBUTION COMPANIES.

    (a) Distribution System.--The distributor shall be required to 
retain its monopoly role with respect to the construction and 
maintenance of the distribution system for all customers, installation 
of service and meter reading, billing of customers for distribution and 
transmission services, and provision of optional billing services under 
contract with retail electricity suppliers. The distributor shall 
provide access to the electric grid in a nondiscriminatory manner to 
customers, be subjected to regulation of the State regulatory authority 
for prices and the quality of its customer service, and undertake such 
additional obligations with respect to energy efficiency and universal 
access services as determined by the State regulatory authority. The 
purpose of this subsection is to supplement existing law and, where 
appropriate, substitute rights and obligations for distribution 
companies in an electricity market characterized by retail 
deregulation.
    (b) Unbundled Rates.--A distributor shall unbundle or separate its 
charges for distribution and transmission services into the following 
components:
            (1) Transmission services.
            (2) Distribution services, which shall include the costs 
        associated with universal service programs and energy 
        efficiency programs or expenses authorized by the State 
        regulatory authority, bad debt and other expenses associated 
        with consumer protection provisions.
            (3) Charges for electricity supplied by a retail 
        electricity supplier or basic service arranged by the 
        distributor.
    (c) Customer Right of Access; Duty of Distributor.--A distributor 
shall provide access to the electric grid in a nondiscriminatory manner 
to any person upon request. Any condition imposed by the distributor 
prior to providing access shall be contained in the company's terms and 
conditions subject to review by the State regulatory authority. The 
procedures adopted by the distributor to provide access to retail 
electric suppliers shall include the following requirements:
            (1) A distributor must offer to enter into an agreement to 
        govern metering, meter reading, transmittal of billing 
        information or billing services, and settlement of accounts 
        with any retail electric supplier licensed by the State 
        regulatory authority. The retail supplier shall provide at 
        least two weeks notice to the distributor of its intent to do 
        business in the service territory of the distributor. The 
        agreement between the distributor and the retail electric 
        supplier must incorporate the provisions relating to the 
        funding and delivery of basic service programs; implementation 
        of the State regulatory authority's requirements relating to 
        credit and collection; bill notification and disclosure 
        requirements; and notification between customers, suppliers, 
        and the distributor of intent to change suppliers or obtain 
        reconnection and disconnection services. A copy of the 
        agreement shall be filed with the State regulatory authority 
        but shall not require State regulatory authority approval.
            (2) No distributor shall discriminate against or show favor 
        toward any retail electric suppliers in its communications or 
        in its course of conduct with customers or retail electric 
        suppliers.

SEC. 210. CHANGE OF SUPPLIER.

    (a) In General.--A customer may change his or her electric supplier 
at any time, subject to any penalty set forth in the contract with the 
supplier. The distributor may charge a reasonable fee to make a change 
in the customer's supplier to reflect the actual cost to read the 
customer's meter and make changes in its billing records, except that 
every customer may seek to obtain basic service as described in section 
205 without charge. When a fee is applicable, the distributor shall 
offer the customer the option to self-read the meter or provide a 
timely meter reading at a lower cost.
    (b) Notification.--Except for the automatic provision of basic 
service, a distributor shall not change the identity of the customer's 
supplier if there is any reason to believe that the notification 
procedures of section 213 have been violated. Instead, the distributor 
shall take immediate steps to attempt to communicate directly with the 
customer.
    (c) Notice Period.--A distributor may adopt a reasonable notice 
period to effectuate a customer's change of supplier, but this notice 
period shall not be greater than three business days. The distributor 
shall read the customer's meter or obtain a self-reading from the 
customer prior to recording a change in the customer's supplier.
    (d) Meter.--Any change in the customer's supplier shall take effect 
at the time of the meter reading by the distributor, or, if an actual 
meter reading is not possible after reasonable efforts to obtain an 
actual or customer-supplied reading by the distributor, on midnight of 
the day that the change is implemented by the distributor in its 
records.

SEC. 211. DISTRIBUTION SERVICE DISCONNECTIONS AND SUPPLY TERMINATIONS.

    (a) Disconnection.--All customers shall be protected from 
unreasonable distribution service disconnections and unreasonable 
supply terminations.
    (b) Definition.--Unreasonable distribution service disconnection 
includes, without limitation, disconnection from access--
            (1) for failure to pay a seller other than the seller of 
        basic service; or
            (2) in the case of qualified low-income households 
        receiving basic service, before they--
                    (A) have been referred to social service agencies 
                that can provide them with assistance; and
                    (B) have failed to pay under an extended payment 
                agreement; or
            (3) when such disconnection would be dangerous to the 
        health or safety of a member of the household, including during 
        the presence of infants, elders, disabled persons, and during 
        risk of extreme weather conditions. For the purposes of this 
        section, the term ``infant'' means any child under six years of 
        age, the term ``elder'' means any person 60 years of age or 
        older, and the term ``disabled person'' has the same meaning as 
        provided in the Americans with Disabilities Act; or
            (4) without contacting a third party designated by such 
        household to receive notice of proposed service disconnection.
    (c) Prohibition.--A seller shall not disconnect or threaten to 
disconnect the customer's electric service or to terminate the 
customer's electricity supply for failure to pay for products or 
services other than electricity.
    (d) Protection.--All customers shall be protected from unreasonable 
supply termination, including without limitation--
            (1) termination before adequate notice is provided of the 
        supplier's intent to terminate, and of the right to continue 
        service via another supplier provider or through basic service; 
        or
            (2) when used as a mechanism for bill collection or during 
        the pendency of a dispute regarding bill amount.
    (e) Notice.--A supplier may discontinue services to a customer who 
fails to pay or make a reasonable payment arrangement for an overdue 
amount in excess of $50 by giving notice to both the customer and the 
distributor. The notice shall be in writing and conspicuously disclose 
the amount overdue, what the customer must do to avoid discontinuance 
of service, how the customer can contact the supplier to negotiate 
terms to avoid disconnection, and how the customer can obtain basic 
service in place of further service from the supplier. The notice shall 
be mailed or delivered at least ten weekdays prior to disconnection of 
service. Once the due date has passed, the supplier may notify the 
distributor who shall change the customer's supplier upon proper notice 
from the customer or initiate basic service within three business days. 
The supplier's obligation to the distributor or network operator shall 
cease with the disconnection of service by the distributor, the 
initiation of basic service or the commencement of service to the 
customer by a different supplier, whichever comes first.
    (f) Tenants.--A tenant whose landlord fails to pay for electric 
service shall not be disconnected from distribution service or from 
electricity supply. Where metering facilities exist, the tenant shall 
be offered an opportunity to put service, including basic service, in 
his or her name. In addition to any other remedy authorized by law, a 
retail supplier and distributor may file a lien on the property of any 
owner of a multi-unit, single-metered building for failure to pay for 
electricity services. This lien shall be filed in the same manner and 
perfected with the same procedures as those available to towns and 
cities for the collection of unpaid property taxes and sewer charges.
    (g) Physicians.--The distributor shall notify all its customers of 
the right to have a registered physician declare a medical emergency in 
the household and avoid disconnection for a period not to exceed 90 
days. If a distributor receives such a declaration, it shall promptly 
notify the customer's supplier. Upon receipt of a declaration of 
medical emergency, a retail supplier shall not disconnect the customer. 
During this time period the customer may request basic service or 
continue with service from his or her retail supplier. During this time 
period the customer may not be threatened with disconnection and the 
supplier and distributor shall accept less than payment in full. The 
customer shall remain liable for all unpaid amounts. At the end of a 
maximum period of 90 days, the customer shall either resume regular 
payments or pay the overdue amount in full to avoid disconnection.

SEC. 212. CREDIT AND COLLECTION PRACTICES.

    (a) State Regulations.--A State authority's current credit and 
collection regulations shall remain in effect to govern the actions of 
a distributor with regard to basic service and the billing and 
collection of distribution and transmission services provided by the 
distributor and other companies.
    (b) Billing and Collection.--The following provisions apply to the 
billing and collection for the sales of electricity by retail suppliers 
and the billing and collection for sales of electricity by distributors 
under contract with suppliers:
            (1) A distributor that offers to bill for suppliers shall 
        allocate a customer's partial payment first to services 
        regulated by the State regulatory authority, including without 
        limitation, distribution and transmission services, and then to 
        the unregulated portion of the bill. For purposes of this 
        paragraph, the term ``services regulated by the State 
        regulatory authority'' includes energy management and 
        efficiency services provided to the customer pursuant to an 
        order of a State regulatory authority and billed by the 
        distributor.
            (2) A retail supplier shall not refuse to grant credit to 
        any applicant based on a prohibited basis contained in the 
        Federal Equal Credit Opportunity Act, 15 U.S.C. 1691-1691f.
            (3) Any deposit required by a retail supplier shall not 
        exceed the applicant's estimated bill for a two-month period. 
        The State regulatory authority may waive the supplier's right 
        to a deposit in any case in which it finds that the supplier 
        has discriminated in its request for a deposit from an 
        applicant. The State regulatory authority may take into account 
        the supplier's written credit and collection procedures and 
        their application in making this decision. A request for a 
        deposit shall be in writing and inform the applicant of the 
        reason for the request, the source of the information that led 
        to the request, the amount, the applicant's payment options, 
        and how the applicant can have the deposit refunded.
            (4) A retail supplier may charge a late fee if a customer's 
        payment is paid after the due date on the customer's bill. The 
        amount of the late fee shall not exceed customary business 
practice for consumer goods.

SEC. 213. UNFAIR TRADE PRACTICES.

    The following specific practices shall be prohibited:
            (1) Slamming.--No electric utility, distributor, supplier, 
        or any person, firm, corporation, or governmental entity shall 
        make any change or authorize a different supplier for any 
        residential or small commercial customer until the change has 
        been confirmed by an independent third-party verification 
        company, as follows:
                    (A) The third-party verification company shall meet 
                each of the following criteria:
                            (i) Be independent from the entity that 
                        seeks to provide the new service.
                            (ii) Not be directly or indirectly managed, 
                        controlled, directed, or owned, wholly or in 
                        part, by an entity that seeks to provide the 
                        new service or by any corporation, firm, or 
                        person who directly or indirectly manages, 
                        controls, or directs or owns more than 5 
                        percent of the entity.
                            (iii) Operate from facilities physically 
                        separate from those of the entity that seeks to 
                        provide the new service.
                            (iv) Not derive commissions or compensation 
                        based upon the number of sales confirmed.
                    (B) The entity seeking to verify the sale shall do 
                so by connecting the customer by telephone to the 
                third-party verification company or by arranging for 
                the third-party verification company to call the 
                customer to confirm the sale.
                    (C) The third-party verification company shall 
                obtain the resident's oral confirmation regarding the 
                change and shall record that confirmation by obtaining 
                appropriate verification data. The record shall be 
                available to the customer upon request. Information 
                obtained from the customer through confirmation shall 
                not be used for marketing purposes. Any unauthorized 
                release of this information is grounds for a civil suit 
                by the aggrieved customer against the entity or its 
                employees who are responsible for the violation.
                    (D) Notwithstanding subparagraphs (A), (B), and 
                (C), a supplier shall not be required to comply with 
                these provisions when the customer directly calls the 
                supplier to make changes in suppliers. However, a 
                supplier shall not avoid the verification requirements 
                by asking a customer to contact a supplier directly to 
                make any change in the supplier. A supplier shall be 
                required to comply with these verification requirements 
                for its own services. However, a supplier shall not be 
                required to perform any verification requirements for 
                any changes solicited by another supplier.
            (2) Gifts.--A supplier shall not provide a gift or 
        inducement to a residential or small commercial customer with a 
        value in excess of $50 or provide any gift or inducement more 
        than once per 12-month period to the same household or small 
        business.
            (3) Advertising.--A supplier shall not advertise or 
        disclose the price of electricity in such a manner as to 
        mislead a reasonable person into believing that this portion of 
        the bill will be the total bill amount for the delivery of 
        electricity to the customer's location. When advertising or 
        disclosing the price for electricity, the supplier shall also 
        disclose the distributor's average current charges (including 
        transmission charges) for that customer class as approved by 
        the State regulatory authority.
            (4) Cramming.--A supplier shall not add optional services 
        to a customer's bill without receiving knowledgeable consent 
        from the customer.
            (5) Cancellation.--In addition to any other right to revoke 
        an offer, residential and small commercial customers have the 
        right to cancel a contract without fee or penalty for electric 
        service until midnight of the third business day after the day 
        on which the buyer receives a written confirmation of the 
        agreement to purchase such service. Cancellation occurs when 
        the buyer gives written notice of cancellation to the seller at 
        the address specified in the agreement or offer. Notice of 
        cancellation, if given by mail, is effective when deposited in 
        the mail properly addressed with postage prepaid. Notice of 
        cancellation given by the buyer need not take the particular 
        form as provided with the contract or offer to purchase and, 
        however expressed, is effective if it indicates the intention 
        of the buyer not to be bound by the contract.

SEC. 214. METERS.

    (a) Standard Meters.--A distributor shall continue its obligation 
to furnish a standard meter to any residential and small commercial 
applicant for service at a previously unserved location without 
separate charge.
    (b) Installation of Different Meters.--A customer may install a 
different meter if it meets the technical qualifications and 
installation specifications established by the distributor. The 
distributor may adopt reasonable procedures to assure compliance with 
its technical qualifications and installation specifications and shall 
inform its customers of these requirements promptly upon request.
    (c) Price Variations.--A supplier may vary the price of electricity 
based on the type and capacity of the installed meter to record hourly 
or seasonal prices. A supplier's terms may include a requirement that a 
customer with a nonhourly meter pay a separate fee or penalty if the 
customer cancels a contract during certain times of the year or without 
specified notice to the supplier.
    (d) Sale or Lease of Different Meters.--A supplier may offer to 
sell or lease a different meter and to bill and collect separately for 
the meter on the electric bill issued by a supplier or distributor.
    (e) Load Curves.--As a condition of offering electricity for sale 
within a territory served by a distributor, a supplier must enter into 
an agreement with the party responsible for settlement of network 
operations. These agreements must allow for the use of average load 
shape curves to bill and pay for the use of electricity by customers 
without hourly-metered consumption. The average curves shall be 
calculated at least four times per calendar year for each supplier's 
customers without hourly meters.
    (f) Payment Prior to Delivery.--It shall be unlawful to use or to 
require the use of a prepayment meter, service limiter, or other device 
or program that requires cash payment prior to the delivery of the 
service.

SEC. 215. EXEMPTION RESCINDED FROM EQUAL CREDIT OPPORTUNITY ACT.

    The regulations implementing the Equal Credit Opportunity Act (15 
U.S.C sections 1691-1691(f)) exempting regulated utilities from 
application of certain provisions of that Act, shall not apply to 
transactions concerning the sale of services in a deregulated market.

SEC. 216. CONSUMER REMEDIES.

    (a) In General.--A consumer damaged by a violation of this section 
by an entity offering retail electricity service is entitled to recover 
all of the following:
            (1) Actual damages.
            (2) The consumer's attorney's fees and court costs.
            (3) Exemplary damages, in the amount the court deems 
        proper, for intentional or willful violations.
            (4) Equitable relief as the court deems proper.
    (b) Other Rights.--The rights, remedies and penalties established 
by this section are in addition to the rights, remedies or penalties 
established under any other law.
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