[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1254 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1254

 To amend the Federal Power Act to provide for market transparency in 
 wholesale sales of electric energy, to prohibit round trip trading of 
                  electricity, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2003

  Mr. Walden of Oregon (for himself, Mr. DeFazio, Mr. Radanovich, and 
  Mrs. Bono) introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
 To amend the Federal Power Act to provide for market transparency in 
 wholesale sales of electric energy, to prohibit round trip trading of 
                  electricity, 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 ``Truth in Electricity Trading Act of 
2003''.

SEC. 2. MARKET TRANSPARENCY RULES.

    Part II of the Federal Power Act is amended by adding the following 
new section at the end thereof:

``SEC. 215. MARKET TRANSPARENCY RULES.

    ``(a) Commission Rules.--Not later than 180 days after the date of 
enactment of this section, the Commission shall issue rules 
establishing an electronic information system to provide the Commission 
and the public with access to such information as is necessary or 
appropriate to facilitate price transparency and participation in 
markets subject to the Commission's jurisdiction. Such systems shall 
provide information about the availability and market price of 
wholesale electric energy and transmission services to the Commission, 
State commissions, buyers and sellers of wholesale electric energy, 
users of transmission services, and the public on a timely basis. The 
Commission shall have authority to obtain such information from any 
person, including any entity described in section 201(f), who sells 
electric energy at wholesale in interstate commerce or provides 
transmission services in interstate commerce.
    ``(b) Exemptions.--The Commission shall exempt from disclosure 
information it determines would, if disclosed--
            ``(1) be detrimental to the operation of an effective 
        market; or
            ``(2) jeopardize system security.
This section shall not apply to an entity described in section 
212(k).''.

SEC. 3. PROHIBITION ON ROUND TRIP TRADING.

    Part II of the Federal Power Act is amended by adding the following 
new section at the end thereof:

``SEC. 216. PROHIBITION ON ROUND TRIP TRADING.

    ``(a) Prohibition.--It shall be a violation of this Act for any 
person, including any entity described in section 201(f), willfully and 
knowingly to enter into any contract or other arrangement to execute a 
round-trip trade for the purchase or sale of electric energy at 
wholesale.
    ``(b) Definition of Round-Trip Trade.--For the purposes of this 
section, the term ``round-trip trade'' means a transaction, or 
combination of transactions, in which a person or other entity--
            ``(1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or other entity 
        electric energy at wholesale;
            ``(2) simultaneously with entering into the contract 
        described in paragraph (1), arranges a financially offsetting 
        trade with such other person or entity for the same quantity of 
        electric energy so that, collectively, the purchase and sale 
        transactions in themselves result in no financial gain or loss; 
        and
            ``(3) has a specific intent to distort reported revenues, 
        trading volumes, or prices.''.

SEC. 4. CONFORMING CHANGES.

    Sections 201(b)(2) and 201(e) of the Federal Power Act are each 
amended by striking ``or 212'' and inserting ``212, 215, and 216''. 
Section 201(b)(2) of such Act is further amended by striking ``and 
212'' and inserting ``, 212, 215, and 216''.

SEC. 5. INCREASED FERC PENALTY AUTHORITY.

    (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended by--
            (1) inserting ``electric utility,'' after ``Any person,''; 
        and
            (2) inserting ``, transmitting utility,'' after 
        ``licensee'' each place it appears.
    (b) Review of Commission Orders.--Section 313(a) of the Federal 
Power Act (16 U.S.C. 8251) is amended by inserting ``electric 
utility,'' after ``person,'' in the first place it appears and by 
striking ``any person unless such person'' and inserting ``any entity 
unless such entity''.
    (c) Criminal Penalties.--Section 316 of the Federal Power Act (16 
U.S.C. 825o) is amended--
            (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting 
        ``five years'';
            (2) in subsection (b), by striking ``$500'' and inserting 
        ``$25,000''; and
            (3) by striking subsection (c).
    (d) Civil Penalties.--Section 316A of the Federal Power Act (16 
U.S.C. 825-1) is amended--
            (1) in subsections (a) and (b), by striking ``or 214'' each 
        place it appears and inserting ``214, 215, or 216''; and
            (2) in subsection (b), by striking ``$10,000'' and 
        inserting ``$1,000,000''.
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