[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 26 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 26

 To amend the Department of Energy Authorization Act to authorize the 
   Secretary of Energy to impose interim limitations on the cost of 
   electric energy to protect consumers from unjust and unreasonable 
                 prices in the electric energy market.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 2001

 Mrs. Feinstein (for herself and Mrs. Boxer) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Department of Energy Authorization Act to authorize the 
   Secretary of Energy to impose interim limitations on the cost of 
   electric energy to protect consumers from unjust and unreasonable 
                 prices in the electric energy market.

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

SECTION 1. INTERIM REGIONAL LIMITATIONS.

    Title IV of the Department of Energy Organization Act (42 U.S.C. 
7171 et seq.) is amended by adding at the end the following:

``SEC. 408. INTERIM REGIONAL LIMITATIONS.

    ``(a) Definitions.--In this section:
            ``(1) Commission.--The term `Commission' means the Federal 
        Energy Regulatory Commission.
            ``(2) Cost-of-service based rate.--The term `cost-of-
        service based rate' means a rate, charge, or classification for 
        the sale of electric energy that is equal to--
                    ``(A) all the variable and fixed costs for 
                producing the electric energy; and
                    ``(B) a return on and of any invested capital.
            ``(3) Interim regional price limitation.--The term `interim 
        regional price limitation' means a price limitation on the 
        rates charged for the provision of electric energy that--
                    ``(A) includes a region-wide wholesale electric 
                energy price limitation for a region comprising the 
                Western Systems Coordinating Council; and
                    ``(B) reflects load differentiated demand.
            ``(4) Load differentiated.--The term `load differentiated' 
        means the difference between price limitations by season, time 
        of day, and other relevant usage patterns.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Energy.
    ``(b) Authority To Impose Limitations.--The Secretary shall impose, 
in any region of the United States, an interim regional price 
limitation, or cost-of-service based rate, on any sale of electric 
energy at wholesale rate in interstate commerce subject to the 
jurisdiction of the Commission under part II of the Federal Power Act 
whenever--
            ``(1) the Commission has determined that the rate, charge, 
        or classification otherwise applicable to such sale is unjust, 
        unreasonable, or unduly preferential or the Secretary 
        determines that the rate, charge, or classification otherwise 
        applicable to such sale exceeds the marginal cost of producing 
        the electric energy by a significant amount or for a 
        significant length of time; and
            ``(2) the Secretary determines that--
                    ``(A) the continued existence of such rate, charge, 
                or classification threatens public health and safety or 
                the economy of any State or region; and
                    ``(B) the Commission has otherwise failed to act to 
                improve the situation.
For purposes of carrying out this section, the Secretary may exercise 
any authority vested in the Commission under the Federal Power Act for 
the fixing and enforcing of rates, charges, and classifications that 
are just and reasonable under Part II of that Act.
    ``(c) Duration.--A regional price limitation or cost-of-service 
based rate imposed under subsection (b) shall remain in effect until 
such time as the market reflects just and reasonable rates, as 
determined by the Secretary.
    ``(d) Authority To Opt Out.--
            ``(1) In general.--The Governor of any State within a 
        region in which a regional price limitation or cost-of-service 
        based rate is imposed under subsection (b) may waive the 
        application of such limitation or rate to sales of electric 
        energy to purchasers in that State by notifying the Secretary 
        in writing at any time after imposition of the price limitation 
        or cost-of-service based rate.
            ``(2) Effective date.--Not later than 30 days after 
        receiving a letter from a Governor of any State under paragraph 
        (1), the Secretary shall waive the application of the price 
        limitation or cost-of-service based rate to sales of electric 
        energy to purchasers in that State.
    ``(e) PURPA Facilities Not Covered.--The authority of subsection 
(b) shall not apply to any sale of electric energy generated by a 
qualifying small power production facility or qualifying cogeneration 
facility (as defined in section 3 of the Federal Power Act) that is 
exempt in whole or in part from the Federal Power Act as provided in 
section 210(e) of the Public Utility Regulatory Policies Act of 1978.
    ``(f) Effect on Other Law.--Nothing in this section affects any 
authority of the Commission under the Federal Power Act (16 U.S.C. 791a 
et seq.) with respect to sales of electric energy forwhich no 
determination has been made under subsection (b).
    ``(g) Effective Date.--This section shall apply to contracts for 
the sale of electric energy entered into or renewed after the enactment 
of this section.''.
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