[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1974 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1974

To amend the Federal Power Act to provide the Federal Energy Regulatory 
 Commission with authority to order certain refunds of electric rates, 
to require the Commission to expand its market mitigation plan, and to 
  provide the Secretary of Energy with authority to revoke the market 
  mitigation plan under certain circumstances, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2001

Mr. Ose (for himself and Mr. Horn) introduced the following bill; which 
          was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Power Act to provide the Federal Energy Regulatory 
 Commission with authority to order certain refunds of electric rates, 
to require the Commission to expand its market mitigation plan, and to 
  provide the Secretary of Energy with authority to revoke the market 
  mitigation plan under certain circumstances, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Western States Energy Consumer 
Protection Act of 2001''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) undue reliance upon the purchase of power from the spot 
        market has resulted in a dysfunctional energy market reflected 
        in high spot market prices;
            (2) the State of California should encourage further use of 
        long-term and bilateral contracts and reduce reliance on the 
        spot market; and
            (3) it is not in the interest of the residents of the State 
        of California for the State to create and operate a statewide 
        power authority.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Public utility.--The term ``public utility'' has the 
        meaning given the term in section 201 of the Federal Power Act 
        (16 U.S.C. 824).
            (3) Wholesale electric utility.--The term ``wholesale 
        electric utility'' means a person or entity (including any 
        Federal, State or local department, agency, or instrumentality) 
        selling electric power at wholesale in the western energy 
        market
            (4) Western energy market.--The term ``western energy 
        market'' means the area within the United States that is 
        encompassed by the Western Systems Coordinating Council 
        (``WSCC'').
            (5) Spot market.--The terms ``spot market'' and ``real time 
        market'' mean the market for electric energy to be delivered 
        within the next 24-hour period, or the spot market as otherwise 
        defined by the Commission.
            (6) Re-marketer.--The term ``re-marketer'' means any person 
        who purchases electric energy at wholesale for resale at 
        wholesale.

SEC. 4. MARKET MONITORING AND MITIGATION PLAN.

    (a) Expansion to WSCC Region.--The Federal Energy Regulatory 
Commission shall issue such orders as may be necessary to apply to all 
public utility sales of electric energy in interstate commerce in the 
western energy market the market monitoring and mitigation plan for the 
California market (as adopted by order issued on April 26, 2001 (95 
FERC 61,115)), that is based not on inflexible price caps, but on the 
use of competitive bids to replicate competitive pricing.
    (b) Scope of Plan.--
            (1) In general.--The orders issued as provided in 
        subsection (a) shall also modify the market monitoring and 
        mitigation plan to remove the limitations in such plan 
        regarding emergencies in California when reserves are 7.5 
        percent or less so that such plan will apply to all sales by 
        public utilities in interstate commerce in the spot market at 
        all times, including sales by re-marketers.
            (2) Certain states excluded.--The market mitigation plan 
        referred to in this section shall not apply to sales of 
        electric energy at wholesale for delivery in a State that, 
        after the enactment of this Act--
                    (A) prohibits the State public utility commission 
                from approving the passing through to retail consumers 
                of the costs of electric power; or
                    (B) imposes a price limit on the sale of electric 
                energy at retail that precludes a public utility (or 
                any entity that is authorized to purchase electricity 
                on behalf of a public utility or a State) from making a 
                payment when due to any entity within the western 
                energy market from which the public utility purchases 
                electric energy for resale at retail within the western 
                energy market.
    (c) Department of Energy Authority.--The Secretary of Energy shall 
have the authority to terminate the market mitigation plan referred to 
in this section at any time that the Secretary determines that such 
plan is resulting in decreased supply or increased demand for electric 
energy in the States covered by the Western States Coordinating 
Council.
    (d) Application to Nonjurisdictional Utilities.--It is the intent 
of Congress that each wholesale electric utility that is not a public 
utility subject to the jurisdiction of the Commission shall voluntarily 
comply with the market monitoring and mitigation plan referred to in 
subsection (a), as modified by the Commission under this section.
    (e) Sunset.--The requirements of this section shall cease to apply 
as of September 30, 2002.

SEC. 5. NATURAL GAS RATES.

    (a) Inapplicability of Waiver of Maximum Rate Ceiling Provision to 
Transportation of Natural Gas Into the State of California.--Effective 
with respect to contracts entered into after the date of enactment of 
this Act, paragraph (i) of section 284.8 of title 18, Code of Federal 
Regulations, shall not apply to the transportation of natural gas into 
the State of California from outside the State.
    (b) Disclosure of Commodity Portion and Transportation Portion of 
Sale Price in Bundled Natural Gas Transactions.--
            (1) Definition of bundled transaction.--In this subsection, 
        the term ``bundled transaction'' means a transaction for the 
        sale of natural gas in which the sale price includes both the 
        cost of the natural gas and the cost of transporting the 
        natural gas.
            (2) Disclosure.--Exercising authority under section 4 of 
        the Natural Gas Act (15 U.S.C. 717c), not later than 60 days 
        after the date of enactment of this Act, the Commission shall 
        publish notice of a proposed rulemaking, and not later than 180 
        days after such date of enactment issue a rule, that requires 
        any person that sells natural gas in a bundled transaction 
        under which the natural gas is to be transported into the State 
        of California from outside the State to file with the 
        Commission, not later than a date specified by the Commission, 
        a statement that discloses--
                    (A) the portion of the sale price that is 
                attributable to the price paid by the seller for the 
                natural gas; and
                    (B) the portion of the sale price that is 
                attributable to the price paid for transportation of 
                the natural gas.

SEC. 6. NO ORDERS TO SELL GAS OR ELECTRICITY WITHOUT A REASONABLE 
              ASSURANCE OF PAYMENT.

    Notwithstanding section 302 of the Natural Gas Policy Act of 1978 
(15 U.S.C. 3362), section 202(c) of the Federal Power Act (16 U.S.C. 
824a(c)), or section 101 of the Defense Production Act of 1950 (50 
U.S.C. App. 2071), neither the Secretary of Energy nor the Commission 
may issue an order that requires a seller of electric energy or natural 
gas to sell, on or after the date of enactment of this Act, electric 
energy or natural gas to a buyer in any State in the western region 
unless there is a reasonable assurance that the Commission determines 
is sufficient to ensure that the seller will be paid--
            (1) the full purchase price when due, as agreed to by the 
        buyer and seller; or
            (2) if the buyer and seller are unable to agree on--
                    (A) a fair and equitable price for natural gas, as 
                determined by the President under section 302 of the 
                Natural Gas Policy Act of 1978 (15 U.S.C. 3362); or
                    (B) a just and reasonable price for electric 
                energy, as determined by the Secretary of Energy or the 
                Commission, as appropriate, under section 202(c) of the 
                Federal Power Act (16 U.S.C. 824a(c)).

SEC. 7. REQUIREMENT TO MEET IN-STATE DEMAND.

    Notwithstanding any other provision of law, a State public utility 
commission in the western energy market may prohibit any utility 
subject to the jurisdiction of the State public utility commission from 
making any sale of electric energy to a purchaser outside the service 
area of the utility at any time at which the State public utility 
commission has reason to believe that delivery of the electric energy 
would impair the ability of the utility to meet, at or after the time 
of the delivery, the demand for electric energy in the service area of 
the utility.

SEC. 8. WHOLESALE RATE REFUND AUTHORITY.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended as follows:
            (1) In the second sentence, strike ``shall not be earlier 
        than the date 60 days after the filing of such complaint nor 
        later than 5 months after the expiration of such 60-day 
        period'' and insert ``shall be the date of the filing of such 
        complaint''.
            (2) In the third sentence, strike ``shall not be earlier 
        than the date 60 days after the publication by the Commission 
        of notice of its intention to initiate such proceeding nor 
        later than 5 months after the expiration of such 60-day 
        period'' and insert ``shall be the date of publication by the 
        Commission of notice of its intention to initiate such 
        proceeding''.
            (3) Beginning in the seventh sentence, strike ``through a 
        date fifteen months after such refund effective date'' and all 
        that follows down through ``prior to the conclusion of the 
        proceeding'' and insert ``through the conclusion of the 
        proceeding''.
            (4) In the last sentence, after ``interest'' insert ``and 
        any penalties the Commission deems appropriate''.

SEC. 9. FERC REPORT ON SCHEDULED OUTAGES.

    Within 180 days after the enactment of this Act, the Commission 
shall undertake a study of the means available to improve Commission 
oversight to investigate and coordinate scheduled outages by electric 
powerplants. The Commission shall submit a report to Congress 
containing the findings of such study.

SEC. 10. EFFECT OF ACT.

    Nothing in this Act--
            (1) affects any energy production that, as of the date of 
        enactment of this Act, is not online and for which an 
        application for a permit to produce electricity has not been 
        filed;
            (2) affects any contract for the purchase of electric 
        energy except a contract for a spot market purchase;
            (3) prohibits a State or other entity from appearing in a 
        Federal court in any instance in which it is alleged that the 
        Commission is not enforcing the Federal Power Act (16 U.S.C. 
        791a et seq.); or
            (4) diminishes or has any other effect on the authority of 
        a State regulatory authority (as defined in section 3 of the 
        Federal Power Act (16 U.S.C. 796)) to regulate rates and 
        charges for the sale of electric energy to consumers, including 
        the authority to determine the manner in which wholesale rates 
        shall be passed through to consumers (including the setting of 
        tiered pricing, real-time pricing, and baseline rates).
                                 <all>