Consumer Protection and Cost Accountability Act - Amends the Federal Power Act to require the Federal Energy Regulatory Commission (FERC) to consider whether a rate or charge made, demanded, or received by a Transmission Organization (TO) would enable the TO to provide or facilitate reliable service to consumers at the lowest reasonable cost.
Instructs FERC, in determining whether a TO filing to establish or change a rate or charge is consistent with specified requirements, to consider whether the rate or charge would: (1) provide consumer benefits that outweigh any anticipated costs to consumers as demonstrated by a cost-benefit analysis submitted by the TO; or (2) have only a de minimis impact upon the total delivered costs to the consumer.
Directs FERC to ensure that each TO is subject to biennial, independent audits.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5547 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 5547
To amend the Federal Power Act to ensure that the mission and functions
of Regional Transmission Organizations and Independent System Operators
include keeping energy costs as low as reasonably possible for
consumers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 6, 2008
Mr. Allen (for himself, Mr. Delahunt, Mr. McGovern, and Mr. Michaud)
introduced the following bill; which was referred to the Committee on
Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Federal Power Act to ensure that the mission and functions
of Regional Transmission Organizations and Independent System Operators
include keeping energy costs as low as reasonably possible for
consumers, and for other purposes.
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 ``Consumer Protection and Cost
Accountability Act''.
SEC. 2. REQUIREMENTS RELATING TO TRANSMISSION ORGANIZATIONS.
(a) Definitions.--In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Lowest reasonable cost.--The term ``lowest reasonable
cost'' means the lowest total delivered cost to consumers
consistent with the provision of reliable service.
(3) Transmission organization.--The term ``Transmission
Organization'' has the meaning given the term in section 3 of
the Federal Power Act (16 U.S.C. 796).
(b) Rate and Charges; Schedules; Suspension of New Rates.--Section
205 of the Federal Power Act (16 U.S.C. 824d) is amended by adding at
the end the following:
``(g) Requirements Relating to Transmission Organizations.--
``(1) Definition of lowest reasonable cost.--In this
subsection, the term `lowest reasonable cost' means the lowest
total delivered cost to consumers consistent with the provision
of reliable service.
``(2) Consideration of transmission organization rates.--
With respect to determining whether a rate or charge made,
demanded, or received (including any rule or regulation
promulgated by a Transmission Organization relating to a rate
or charge made, demanded, or received) is consistent with each
requirement described in subsection (a) or section 206, as
applicable, the Commission shall consider whether the rate or
charge (including each rule or regulation relating to the rate
or charge) would enable the Transmission Organization to
provide, or facilitate the provision of, reliable service to
consumers at the lowest reasonable cost.
``(3) Consideration of transmission organization rate
changes.--In determining whether any filing by a Transmission
Organization to establish or change a rate or charge made,
demanded, or received (including any rule or regulation
promulgated by a Transmission Organization relating to a rate
or charge made, demanded, or received) is consistent with each
requirement described in subsection (a), the Commission shall
consider whether the rate or charge (including each rule or
regulation relating to the rate or charge) would--
``(A) provide consumer benefits that outweigh any
anticipated direct or indirect costs to consumers, as
demonstrated by a cost-benefit analysis to be submitted
by the Transmission Organization to the Commission; or
``(B) have only a de minimus impact on the total
delivered costs to consumer.
``(4) Biennial audits.--The Commission shall ensure that
each Transmission Organization is subject to biennial,
independent audits that--
``(A) include--
``(i) an assessment of the performance of
the Transmission Organization; and
``(ii) recommendations to lower the costs
and improve the performance of the Transmission
Organization; and
``(B) are made available to the public.''.
(c) Annual Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Commission shall
submit to the appropriate committees of Congress a report describing
each determination of the Commission with respect to whether each
Transmission Organization provides, or facilitates the provision of,
reliable service at the lowest reasonable cost to consumers.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Energy and Air Quality.
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