II 110th CONGRESS 1st Session S. 864 IN THE SENATE OF THE UNITED STATES March 13, 2007 Mr. Bunning (for himself and Mr. McConnell) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To amend the Federal Power Act to clarify the jurisdiction of the Federal Energy Regulatory Commission, and for other purposes.

1.

Short title

This Act may be cited as the Access to Competitive Power Act of 2007.

2.

Establishment of equal access and treatment with respect to Federal power resources

Section 212(i) of the Federal Power Act (16 U.S.C. 824k(i)) is amended— (1)by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively; (2)by striking the subsection designation and heading and all that follows through the end of paragraph (1) and inserting the following: (i)

Establishment of equal access and treatment with respect to Federal power resources

(1)

Definition of generator

In this subsection, the term generator means— (A)the Bonneville Power Administration; (B)the Southeastern Power Administration; (C)the Western Area Power Administration; (D)the Southwestern Power Administration; and (E)the Tennessee Valley Authority. (2)

Authority and duties of Commission

(A)

In general

Pursuant to sections 210, 211, and 213, the Commission— (i)may order the administrator or board of directors, as applicable, of any generator to provide transmission service, including by establishing the terms and conditions of the service; and (ii)shall ensure that— (I)the provisions of otherwise applicable Federal laws shall continue in full force and effect and shall continue to be applicable to the system; (II)the rates for the transmission of electric power on the system of each Federal power marketing agency— (aa)are administered in accordance with applicable Federal law, other than sections 210, 211, and 213; and (bb)are not unjust, unreasonable, or unduly discriminatory or preferential, as determined by the Commission. (B)

Tennessee Valley Authority rates

(i)

In general

Notwithstanding any other provision of law, the Commission shall have jurisdiction over the rates, terms, and conditions of the provision of transmission service in interstate commerce by the Tennessee Valley Authority. (ii)

Tariff

Notwithstanding any other provision of law, pursuant to sections 205 and 206, the Board of Directors of the Tennessee Valley Authority shall have on file with the Commission an open access transmission tariff that contains just, reasonable, and not unduly preferential or discriminatory rates, terms, and conditions for the provision of transmission service in interstate commerce by the Tennessee Valley Authority. ; (3)in paragraph (3) (as redesignated by paragraph (1))— (A)by striking (3) Notwithstanding and inserting the following: (3)

Procedure for determinations

Notwithstanding ; (B)in the matter preceding subparagraph (A), by inserting of a Federal power marketing agency after service; and (C)in subparagraph (A)— (i)by striking when the Administrator of the Bonneville Power Administration either and inserting if the Administrator of any Federal power marketing agency; and (ii)by striking on the Federal Columbia River Transmission System; (4)in paragraph (4) (as redesignated by paragraph (1))— (A)by striking (4) Notwithstanding and inserting the following: (4)

Judicial review

Notwithstanding ; (B)by striking the Administrator of the Bonneville Power Administration and inserting the Administrator of a Federal power marketing agency; and (C)by striking United States Court of Appeals and all that follows through the end of the paragraph and inserting United States court of appeals of jurisdiction of the Federal power marketing agency.; (5)in paragraph (5) (as redesignated by paragraph (1)), by striking (5) To the extent the Administrator of the Bonneville Power Administration and inserting the following: (5)

Exception

To the extent that an Administrator of a Federal power marketing agency ; (6)in paragraph (6) (as redesignated by paragraph (1))— (A)by striking (6) The Commission and inserting the following: (6)

Prohibition

The Commission ; and (B)by striking the Administrator of the Bonneville Power Administration and inserting the Administrator of a Federal power marketing agency.

3.

Equitability within territory restricted electric systems

Section 212(j) of the Federal Power Act (16 U.S.C. 824k(j)) is amended— (1)by striking With respect to and inserting the following: (1)

In general

Except as provided in paragraph (2), with respect to ; (2)by striking electric utility: and all that follows through electric utility. and inserting electric utility.; and (3)by adding at the end the following: (2)

Exception

Paragraph (1) and subsection (f) shall not apply to any area served at retail by a distributor that— (A)on October 24, 1992, served as a distributor for an electric utility described in paragraph (1); and (B)before December 31, 2006, provided to the Commission a notice of termination of the power supply contract between the distributor and the electric utility, regardless of whether the notice was later withdrawn or rescinded. (3)

Stranded costs

An electric utility described in paragraph (1) that provides transmission service pursuant to an order of the Commission or a contract may not recover any stranded cost associated with the provision of transmission services to a distributor. (4)

Rights of distributors

(A)

Notice not provided

A distributor described in paragraph (2) that did not provide a notice described in paragraph (2)(B) by December 31, 2006, may— (i)construct, own, and operate any generation facility, individually or jointly with another distributor; and (ii)receive from any electric utility described in paragraph (1) partial requirements services, unless the cumulative quantity of energy provided by the electric utility exceeds a ratable limit that is equal to a proxy for load growth on the electric utility, based on— (I)the total quantity of energy sold by each affected agency, corporation, or unit of the electric utility during calendar year 2006; and (II)a 3-percent compounded annual growth rate. (B)

Notice provided

(i)

In general

A distributor described in paragraph (2) that provided a notice described in paragraph (2)(B) by December 31, 2006, may— (I)construct, own, and operate any generation facility, individually or jointly with another distributor; (II)receive from any electric utility described in paragraph (1) partial requirements services; (III)receive from any electric utility described in paragraph (1) transmission services that are sufficient to meet all electric energy requirements of the distributor, regardless of whether an applicable contract, or any portion of such a contract, has been terminated under this section; and (IV)not later than 180 days after the date of enactment of this paragraph, elect to rescind the notice of termination of the distributor without the imposition of a reintegration fee or any similar fee. (ii)

Treatment

On an election by a distributor under clause (i)(IV), the distributor shall be entitled to all rights and benefits of a distributor described in subparagraph (A). (5)

Right to retain access to services

(A)

Definitions

In this paragraph: (i)

Affected distributor

The term affected distributor means a distributor that receives any electric service or power from at least 2 generators. (ii)

Generator

The term generator means an entity referred to in any of subparagraphs (A) through (E) of subsection (i)(1). (B)

Retention of services

An affected distributor may elect to retain any electric service or power provided by a generator, regardless of whether an applicable contract, or any portion of such a contract, has been terminated under this section. (C)

Effect of notice of termination

(i)

In general

The provision or execution by an affected distributor of a notice of termination described in paragraph (2)(B) with 1 generator shall not affect the quantity of electric service or power provided to the affected distributor by another generator. (ii)

Price

The price of electric services or power provided to an affected distributor described in clause (i) shall be equal to the price charged by the applicable generator for the provision of similar services or power to a distributor that did not provide a notice described in paragraph (2)(B). (D)

Transmission service

On an election by an affected distributor under subparagraph (B) to retain an electric service or power, the affected distributor shall be entitled to receive from a generator transmission service to 1 or more delivery points of the affected distributor, as determined by the affected distributor, regardless of whether an applicable contract, or any portion of such a contract, has been terminated under this section. .

4.

Study of privatization of Tennessee Valley Authority

(a)

Study

The Comptroller General of the United States shall conduct a study of the costs, benefits, and other effects of privatizing the Tennessee Valley Authority. (b)

Report

Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that describes the results of the study conducted under this section.

5.

Study of debt level of Tennessee Valley Authority

(a)

Study

The Comptroller General of the United States shall conduct a study of the financial structure of, and the amount of debt held by, the Tennessee Valley Authority, which (as of February 1, 2007) is approximately $25,000,000,000. (b)

Report

Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that describes the results of the study conducted under this section.