[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.''.
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