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Electric Utility Policy: Comparison of House-Passed H.R. 6 and S.Amdt. 1412 (CRS Report for Congress)

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Release Date Aug. 26, 2003
Report Number RL32041
Report Type Report
Authors Amy Abel, Resources, Science, and Industry Division
Source Agency Congressional Research Service
Summary:

Electric utility provisions are included in comprehensive energy legislation that has passed both the House and Senate. The House passed H.R. 6 on April 11, 2003. On July 31, 2003, the Senate suspended debate on S. 14 , the comprehensive energy bill that had been reported by the Energy and Natural Resources Committee. It then passed H.R. 6 with the text of the Senate-passed version of H.R. 4 from the 107th Congress. For a comparison of the House- and Senate-passed versions of the bill, see CRS Report RL32033, Omnibus Energy Legislation: Side-by-Side Comparison of Non-Tax Provisions . Before debate on S. 14 was suspended, Senator Domenici proposed S.Amdt. 1412 on July 29, 2003, to completely replace the electricity title of S. 14 as introduced in the Senate. The proposed amendment was withdrawn on July 31, 2003. Although S.Amdt. 1412 is not included in the Senate-passed bill that will be considered in conference, there are indications that provisions of the amendment might be brought up. Both the House-passed electricity provisions in H.R. 6 and those in S.Amdt. 1412 would give limited rate authority to the Federal Energy Regulatory Commission (FERC) over municipal and cooperative transmission systems; create an electric reliability organization; repeal the Public Utility Holding Company Act (PUHCA) and give FERC and state public utility commissions access to books and records; prospectively repeal the mandatory purchase requirement of the Public Utility Regulatory Policies Act (PURPA); explicitly prohibit round-trip trading; establish market transparency rules; protect native load consumers (existing customers); and increase criminal penalties under the Federal Power Act. Title VI of the House-passed bill would, in part, provide for incentive-based transmission rates, allow transmission owners in certain instances to exercise the right of eminent domain to site new transmission lines, create an electric reliability organization, and clarify the right of transmission owners to serve existing customers (native load). Unlike the House-passed bill, S.Amdt. 1412 does not contain provisions that would allow transmission owners to exercise the right of eminent domain to site new transmission lines. S.Amdt. 1412 contains provisions that are not included in the House-passed H.R. 6 . These include provisions that prohibit FERC from requiring utilities to transfer operational control of transmission facilities to a regional transmission organization (RTO), give authority to power marketing administrations and the Tennessee Valley Authority (TVA) to join RTOs, remand the FERC Standard Market Design (SMD) notice of proposed rulemaking, and strengthen FERC's merger review authority. This report will not be updated.