[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 287 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 287

 To direct the Federal Energy Regulatory Commission to impose cost-of-
service based rates on sales by public utilities of electric energy at 
                wholesale in the western energy market.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 8, 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 direct the Federal Energy Regulatory Commission to impose cost-of-
service based rates on sales by public utilities of electric energy at 
                wholesale in the western energy market.

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

SECTION 1. COST-OF-SERVICE BASED ELECTRIC ENERGY RATES.

    (a) Findings.--Congress finds that--
            (1) prices in the spot market for electric energy have 
        consistently stayed at rates that are multiples of the prices 
        that prevailed last year and the year before;
            (2) the price increases began in California and spread 
        throughout the western energy market;
            (3) the Federal Energy Regulatory Commission, in an order 
        issued November 1, 2000, found that prices in California and 
        the western energy market are unjust and unreasonable; and
            (4) the high and volatile prices for natural gas are 
        reflected in the costs of producing electricity.
    (b) 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 reasonable return on invested capital.
            (3) Public utility.--The term ``public utility'' means a 
        person that owns or operates a facility that is subject to the 
        jurisdiction of the Commission under the Federal Power Act (16 
        U.S.C. 791a et seq.).
            (4) Western energy market.--The term ``western energy 
        market'' means the States of Arizona, California, Colorado, 
        Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, 
        and Wyoming.
    (c) Cost-of-Service Based Electric Energy Rates.--Not later than 60 
days after the date of enactment of this Act, the Commission shall 
impose cost-of-service based rates on sales by public utilities of 
electric energy at wholesale in the western energy market.
    (d) Duration.--A cost-of-service based electric energy rate imposed 
under this Act shall remain in effect until such time as the market for 
electric energy in the western energy market reflects just and 
reasonable rates, as determined by the Commission.
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