[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 681 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 681

 To provide for the enhanced protection of electricity consumers under 
                         the Federal Power Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 21, 2003

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

_______________________________________________________________________

                                 A BILL


 
 To provide for the enhanced protection of electricity consumers under 
                         the Federal Power Act.

    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 Electricity Market Manipulation 
Prevention Act''.

SEC. 2. MARKET-BASED RATES.

    Section 205 of the Federal Power Act (16 U.S.C. 824d) is amended by 
adding at the end the following:
    ``(g) Market-Based Rates.--
            ``(1) In general.--For each public utility granted the 
        authority by the Commission to sell wholesale electric energy 
        at market-based rates, the Commission shall review, at least 
        annually, the characteristics of each market in which the 
        public utility is authorized to sell wholesale electric energy 
        at market-based rates to determine whether sales by the public 
        utility in that market are subject to effective competition.
            ``(2) No effective competition.--On determining that sales 
        in a market by a public utility are not subject to effective 
        competition, the Commission shall issue an order immediately 
        revoking the authority of the public utility to sell wholesale 
        electric energy at market-based rates in that market.
            ``(3) Condition.--In each authorization to a public utility 
        to sell wholesale electric energy at market-based rates, the 
        Commission shall include a condition requiring the public 
        utility to notify the Commission promptly of any change in any 
        characteristic of the market that the Commission relied on in 
        granting the authority.''.

SEC. 3. REMEDIES.

    Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended by 
adding at the end the following:
    ``(d) Market-Based Rates.--The Commission shall issue an order 
immediately revoking or modifying the authority of a public utility to 
sell electric energy at market-based rates if, after a hearing had upon 
its own motion or upon complaint, the Commission finds that--
            ``(1) a rate charged by the public utility authorized to 
        sell electric energy at market-based rates in a wholesale 
        electric energy market is unjust, unreasonable, unduly 
        discriminatory or preferential;
            ``(2) the public utility has intentionally engaged in an 
        activity in a wholesale electric energy market that violates 
        any rule, tariff, or order of the Commission; or
            ``(3) the public utility has engaged in or attempted to 
        engage in fraudulent, manipulative, or deceptive activity in a 
        wholesale electric energy market.
    ``(e) Fraudulent, Manipulative, or Deceptive Activities.--
Notwithstanding subsection (a), if the Commission finds that a public 
utility has engaged in or attempted to engage in a fraudulent, 
manipulative, or deceptive activity in a wholesale electric energy 
market, the Commission shall--
            ``(1) establish the just and reasonable rate for all 
        prospective sales subject to the jurisdiction of the Commission 
        made by the public utility; and
            ``(2) require the public utility to refund any revenues 
        collected in excess of the average wholesale power cost of 
        service within the regional power market for the period in 
        which the public utility engaged in the activity.
    ``(f) Public Interest Standard.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Commission shall not apply the public interest standard in a 
        proceeding under this section for review of a transaction 
        executed at market-based rates.
            ``(2) No effective competition.--If the public interest 
        standard is explicitly contained in the contract at issue in a 
        proceeding described in paragraph (1), the Commission shall 
        apply the public interest standard in the proceeding unless the 
        Commission finds that the contract was not subject to effective 
        competition.''.
                                 <all>