HR 6 EAS1S/PP
(4) cross-subsidization that may occur between
1
regulated and nonregulated activities; and
2
(5) the role of State public utility commissions
3
in regulating competition in the wholesale and retail
4
electric market.
5
(d) C
ONSULTATION
.—In performing the study required
6
by this section, the task force shall consult with and solicit
7
comments from its advisory members, the States, represent-
8
atives of the electric power industry, and the public.
9
SEC. 235. GAO STUDY ON IMPLEMENTATION.
10
(a) S
TUDY
.—The Comptroller General shall conduct a
11
study of the success of the Federal Government and the
12
States during the 18-month period following the effective
13
date of this subtitle in—
14
(1) the prevention of anticompetitive practices
15
and other abuses by public utility holding companies,
16
including cross-subsidization and other market power
17
abuses; and
18
(2) the promotion of competition and efficient
19
energy markets to the benefit of consumers.
20
(b) R
EPORT
TO
C
ONGRESS
.—Not earlier than 18
21
months after the effective date of this subtitle or later than
22
24 months after that effective date, the Comptroller General
23
shall submit a report to the Congress on the results of the
24
study conducted under subsection (a), including probable
25
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causes of its findings and recommendations to the Congress
1
and the States for any necessary legislative changes.
2
SEC. 236. EFFECTIVE DATE.
3
This subtitle shall take effect 18 months after the date
4
of enactment of this subtitle.
5
SEC. 237. AUTHORIZATION OF APPROPRIATIONS.
6
There are authorized to be appropriated such funds as
7
may be necessary to carry out this subtitle.
8
SEC. 238. CONFORMING AMENDMENTS TO THE FEDERAL
9
POWER ACT.
10
(a) C
ONFLICT OF
J
URISDICTION
.—Section 318 of the
11
Federal Power Act (16 U.S.C. 825q) is repealed.
12
(b) D
EFINITIONS
.—(1) Section 201(g) of the Federal
13
Power Act (16 U.S.C. 824(g)) is amended by striking
14
‘‘1935’’ and inserting ‘‘2002’’.
15
(2) Section 214 of the Federal Power Act (16 U.S.C.
16
824m) is amended by striking ‘‘1935’’ and inserting
17
‘‘2002’’.
18
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Subtitle C—Amendments to the
1
Public Utility Regulatory Poli-
2
cies Act of 1978
3
SEC. 241. REAL-TIME PRICING AND TIME-OF-USE METERING
4
STANDARDS.
5
(a) A
DOPTION OF
S
TANDARDS
.—Section 111(d) of the
6
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
7
2621(d)) is amended by adding at the end the following:
8
‘‘(11) R
EAL
-
TIME
PRICING
.—(A) Each electric
9
utility shall, at the request of an electric consumer,
10
provide electric service under a real-time rate sched-
11
ule, under which the rate charged by the electric util-
12
ity varies by the hour (or smaller time interval) ac-
13
cording to changes in the electric utility’s wholesale
14
power cost. The real-time pricing service shall enable
15
the electric consumer to manage energy use and cost
16
through real-time metering and communications tech-
17
nology.
18
‘‘(B) For purposes of implementing this para-
19
graph, any reference contained in this section to the
20
date of enactment of the Public Utility Regulatory
21
Policies Act of 1978 shall be deemed to be a reference
22
to the date of enactment of this paragraph.
23
‘‘(C) Notwithstanding subsections (b) and (c) of
24
section 112, each State regulatory authority shall con-
25
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sider and make a determination concerning whether
1
it is appropriate to implement the standard set out
2
in subparagraph (A) not later than 1 year after the
3
date of enactment of this paragraph.
4
‘‘(12) T
IME
-
OF
-
USE METERING
.—(A) Each elec-
5
tric utility shall, at the request of an electric con-
6
sumer, provide electric service under a time-of-use
7
rate schedule which enables the electric consumer to
8
manage energy use and cost through time-of-use me-
9
tering and technology.
10
‘‘(B) For purposes of implementing this para-
11
graph, any reference contained in this section to the
12
date of enactment of the Public Utility Regulatory
13
Policies Act of 1978 shall be deemed to be a reference
14
to the date of enactment of this paragraph.
15
‘‘(C) Notwithstanding subsections (b) and (c) of
16
section 112, each State regulatory authority shall con-
17
sider and make a determination concerning whether
18
it is appropriate to implement the standards set out
19
in subparagraph (A) not later than 1 year after the
20
date of enactment of this paragraph.’’.
21
(b) S
PECIAL
R
ULES
.—Section 115 of the Public Util-
22
ity Regulatory Policies Act of 1978 (16 U.S.C. 2625) is
23
amended by adding at the end the following:
24
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‘‘(i) R
EAL
-T
IME
P
RICING
.—In a State that permits
1
third-party marketers to sell electric energy to retail electric
2
consumers, the electric consumer shall be entitled to receive
3
the same real-time metering and communication service as
4
a direct retail electric consumer of the electric utility.
5
‘‘(j) T
IME
-
OF
-U
SE
M
ETERING
.—In a State that per-
6
mits third-party marketers to sell electric energy to retail
7
electric consumers, the electric consumer shall be entitled
8
to receive the same time-of-use metering and communica-
9
tion service as a direct retail electric consumer of the elec-
10
tric utility.’’.
11
SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.
12
(a) A
DOPTION OF
S
TANDARDS
.—Section 113(b) of the
13
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
14
2623(b)) is amended by adding at the end the following:
15
‘‘(6) D
ISTRIBUTED GENERATION
.—Each electric
16
utility shall provide distributed generation, combined
17
heat and power, and district heating and cooling sys-
18
tems competitive access to the local distribution grid
19
and competitive pricing of service, and shall use sim-
20
plified standard contracts for the interconnection of
21
generating facilities that have a power production ca-
22
pacity of 250 kilowatts or less.
23
‘‘(7)
D
ISTRIBUTION
INTERCONNECTIONS
.—No
24
electric utility may refuse to interconnect a gener-
25
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HR 6 EAS1S/PP
ating facility with the distribution facilities of the
1
electric utility if the owner or operator of the gener-
2
ating facility complies with technical standards
3
adopted by the State regulatory authority and agrees
4
to pay the costs established by such State regulatory
5
authority.
6
‘‘(8) M
INIMUM FUEL AND TECHNOLOGY DIVER
-
7
SITY STANDARD
.—Each electric utility shall develop a
8
plan to minimize dependence on one fuel source and
9
to ensure that the electric energy it sells to consumers
10
is generated using a diverse range of fuels and tech-
11
nologies, including renewable technologies.
12
‘‘(9) F
OSSIL FUEL EFFICIENCY
.—Each electric
13
utility shall develop and implement a ten-year plan
14
to increase the efficiency of its fossil fuel generation
15
and shall monitor and report to its State regulatory
16
authority excessive greenhouse gas emissions resulting
17
from the inefficient operation of its fossil fuel gener-
18
ating plants.’’.
19
(b) T
IME FOR
A
DOPTING
S
TANDARDS
.—Section 113 of
20
the Public Utility Regulatory Policies Act of 1978 (16
21
U.S.C. 2623) is further amended by adding at the end the
22
following:
23
‘‘(d) S
PECIAL
R
ULE
.—For purposes of implementing
24
paragraphs (6), (7), (8), and (9) of subsection (b), any ref-
25
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erence contained in this section to the date of enactment
1
of the Public Utility Regulatory Policies Act of 1978 shall
2
be deemed to be a reference to the date of enactment of this
3
subsection.’’.
4
SEC. 243. TECHNICAL ASSISTANCE.
5
Section 132(c) of the Public Utility Regulatory Poli-
6
cies Act of 1978 (16 U.S.C. 2642(c)) is amended to read
7
as follows:
8
‘‘(c) T
ECHNICAL
A
SSISTANCE FOR
C
ERTAIN
R
ESPON
-
9
SIBILITIES
.—The Secretary may provide such technical as-
10
sistance as he determines appropriate to assist State regu-
11
latory authorities and electric utilities in carrying out their
12
responsibilities under section 111(d)(11) and paragraphs
13
(6), (7), (8), and (9) of section 113(b).’’.
14
SEC. 244. COGENERATION AND SMALL POWER PRODUCTION
15
PURCHASE AND SALE REQUIREMENTS.
16
(a) T
ERMINATION OF
M
ANDATORY
P
URCHASE AND
17
S
ALE
R
EQUIREMENTS
.—Section 210 of the Public Utility
18
Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is
19
amended by adding at the end the following:
20
‘‘(m) T
ERMINATION OF
M
ANDATORY
P
URCHASE AND
21
S
ALE
R
EQUIREMENTS
.—
22
‘‘(1) O
BLIGATION TO PURCHASE
.— After the date
23
of enactment of this subsection, no electric utility
24
shall be required to enter into a new contract or obli-
25
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HR 6 EAS1S/PP
gation to purchase electric energy from a qualifying
1
cogeneration facility or a qualifying small power pro-
2
duction facility under this section if the Commission
3
finds that the qualifying cogeneration facility or
4
qualifying small power production facility has access
5
to independently administered, auction-based day
6
ahead and real time wholesale markets for the sale of
7
electric energy.
8
‘‘(2) O
BLIGATION TO SELL
.—After the date of en-
9
actment of this subsection, no electric utility shall be
10
required to enter into a new contract or obligation to
11
sell electric energy to a qualifying cogeneration facil-
12
ity or a qualifying small power production facility
13
under this section if competing retail electric sup-
14
pliers are able to provide electric energy to the quali-
15
fying cogeneration facility or qualifying small power
16
production facility.
17
‘‘(3) N
O EFFECT ON EXISTING RIGHTS AND REM
-
18
EDIES
.—Nothing in this subsection affects the rights
19
or remedies of any party under any contract or obli-
20
gation, in effect on the date of enactment of this sub-
21
section, to purchase electric energy or capacity from
22
or to sell electric energy or capacity to a facility
23
under this Act (including the right to recover costs of
24
purchasing electric energy or capacity).
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HR 6 EAS1S/PP
‘‘(4) R
ECOVERY OF COSTS
.—
1
‘‘(A) R
EGULATION
.—To ensure recovery by
2
an electric utility that purchases electric energy
3
or capacity from a qualifying facility pursuant
4
to any legally enforceable obligation entered into
5
or imposed under this section before the date of
6
enactment of this subsection, of all prudently in-
7
curred costs associated with the purchases, the
8
Commission shall issue and enforce such regula-
9
tions as may be required to ensure that the elec-
10
tric utility shall collect the prudently incurred
11
costs associated with such purchases.
12
‘‘(B) E
NFORCEMENT
.—A regulation under
13
subparagraph (A) shall be enforceable in accord-
14
ance with the provisions of law applicable to en-
15
forcement of regulations under the Federal Power
16
Act (16 U.S.C. 791a et seq.).’’.
17
(b) E
LIMINATION OF
O
WNERSHIP
L
IMITATIONS
.—
18
(1) Section 3(17)(C) of the Federal Power Act
19
(16 U.S.C. 796(17)(C)) is amended to read as follows:
20
‘‘(C) ‘qualifying small power production fa-
21
cility’ means a small power production facility
22
that the Commission determines, by rule, meets
23
such requirements (including requirements re-
24
specting minimum size, fuel use, and fuel effi-
25
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HR 6 EAS1S/PP
ciency) as the Commission may, by rule, pre-
1
scribe.’’.
2
(2) Section 3(18)(B) of the Federal Power Act
3
(16 U.S.C. 796(18)(B)) is amended to read as follows:
4
‘‘(B) ‘qualifying cogeneration facility’ means a cogen-
5
eration facility that the Commission determines, by rule,
6
meets such requirements (including requirements respecting
7
minimum size, fuel use, and fuel efficiency) as the Commis-
8
sion may, by rule, prescribe.’’.
9
SEC. 245. NET METERING.
10
(a) A
DOPTION OF
S
TANDARD
.—Section 111(d) of the
11
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
12
2621(d)) is further amended by adding at the end the fol-
13
lowing:
14
‘‘(13) N
ET METERING
.—(A) Each electric utility
15
shall make available upon request net metering serv-
16
ice to any electric consumer that the electric utility
17
serves.
18
‘‘(B) For purposes of implementing this para-
19
graph, any reference contained in this section to the
20
date of enactment of the Public Utility Regulatory
21
Policies Act of 1978 shall be deemed to be a reference
22
to the date of enactment of this paragraph.
23
‘‘(C) Notwithstanding subsections (b) and (c) of
24
section 112, each State regulatory authority shall con-
25
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sider and make a determination concerning whether
1
it is appropriate to implement the standard set out
2
in subparagraph (A) not later than 1 year after the
3
date of enactment of this paragraph.’’.
4
(b) S
PECIAL
R
ULES FOR
N
ET
M
ETERING
.—Section
5
115 of the Public Utility Regulatory Policies Act of 1978
6
(16 U.S.C. 2625) is further amended by adding at the end
7
the following:
8
‘‘(k) N
ET
M
ETERING
.—
9
‘‘(1)
R
ATES
AND
CHARGES
.—An
electric
10
utility—
11
‘‘(A) shall charge the owner or operator of
12
an on-site generating facility rates and charges
13
that are identical to those that would be charged
14
other electric consumers of the electric utility in
15
the same rate class; and
16
‘‘(B) shall not charge the owner or operator
17
of an on-site generating facility any additional
18
standby, capacity, interconnection, or other rate
19
or charge.
20
‘‘(2) M
EASUREMENT
.—An electric utility that
21
sells electric energy to the owner or operator of an on-
22
site generating facility shall measure the quantity of
23
electric energy produced by the on-site facility and the
24
quantity of electric energy consumed by the owner or
25
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