Electricity Restructuring and the Constitutionality of Retail Reciprocity Requirements (CRS Report for Congress)
| Release Date |
March 9, 2000 |
| Report Number |
RS20491 |
| Report Type |
Report |
| Authors |
Jon O. Shimabukuro, American Law Division |
| Source Agency |
Congressional Research Service |
Summary:
Retail reciprocity requirements have been included in the electricity restructuring legislation of
at
least four states. These requirements mandate generally that out-of-state utilities which operate in
a state "closed" to retail competition cannot market power to retail consumers in the "open" state.
Because state reciprocity requirements enacted without congressional authorization are probably
unconstitutional under the Commerce Clause of the U.S. Constitution, Congress would have to
include a reciprocity provision in federal electricity restructuring legislation if it wants to support the
view that such a provision will increase competition. This report reviews the treatment of state
reciprocity requirements by the U.S. Supreme Court and discusses Congress' power under the
Commerce Clause.
Seven of the eight comprehensive electricity restructuring bills introduced during the 106th
Congress include reciprocity provisions. The Power Bill, H.R. 667 , introduced by
Representative Burr, the Electric Utility Restructuring Empowerment and Competitiveness Act of
1999, S. 516 , introduced by Senator Thomas, the Electric Energy Empowerment Act
of 1999, H.R. 1587 , introduced by Representative Stearns, the Comprehensive
Electricity Competition Act, H.R. 1828 , introduced by Representatives Bliley and
Dingell, the Electric Consumers' Power to Choose Act of 1999, H.R. 2050 , introduced
by Representative Largent, the Electric Consumer Choice Act, S. 1284 , introduced by
Senator Nickles, and the Electric Power Market Competition and Reliability Act, S. 2098 , introduced by Senator Murkowski, each include reciprocity provisions. The Electricity
Competition and Reliability Act, H.R. 2944 , introduced by Representative Barton, does
not include such a provision.
This report will not be updated.
