[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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