Providing Opportunities to Work for Energy Reliability Act or the POWER Act - Amends the Federal Power Act to direct the Federal Energy Regulatory Commission (FERC) to review any decision by the North American Electric Reliability Corporation (NAERC) to approve a new balancing authority that would alter cost allocations under an existing system support resources agreement.
Precludes such new balancing authority from taking effect until approved by FERC.
Requires FERC to publish a cost-benefit analysis of the proposed NAERC decision, including its likely financial impact upon ratepayers, before issuing a decision to approve, disapprove, or modify the NAERC decision.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5722 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5722
To amend the Federal Power Act to require the Federal Energy Regulatory
Commission to review the decisions of the North American Electric
Reliability Corporation affecting cost allocation under system support
resources agreements.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 17, 2014
Mr. Benishek (for himself and Mr. Peters of Michigan) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
A BILL
To amend the Federal Power Act to require the Federal Energy Regulatory
Commission to review the decisions of the North American Electric
Reliability Corporation affecting cost allocation under system support
resources agreements.
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 ``Providing Opportunities to Work for
Energy Reliability Act'' or the ``POWER Act''.
SEC. 2. REVIEW OF DECISIONS OF NORTH AMERICAN ELECTRIC RELIABILITY
CORPORATION AFFECTING COST ALLOCATION UNDER SYSTEM
SUPPORT RESOURCES AGREEMENTS.
Section 205 of the Federal Power Act (16 U.S.C. 824d) is amended by
adding at the end the following:
``(g) Review of Decisions of North American Electric Reliability
Corporation Affecting Cost Allocation Under System Support Resources
Agreements.--
``(1) Definitions.--In this subsection:
``(A) System support resources agreement.--
``(i) In general.--The term `system support
resources agreement' means an agreement between
the owner of a system support resources unit
and a transmission organization that provides
for--
``(I) operation of the system
support resources unit for a period
past the date on which the owner of the
system support resources unit proposes
to suspend the operation of, or retire,
the system support resources unit;
``(II) the payments to be made to
the owner of the system support
resources unit for the continued
operation; and
``(III) the manner in which the
costs for the continued operation will
be recovered.
``(ii) Inclusions.--The term `system
support resources agreement' includes the
associated rate schedule, or any other
allocation of costs, for an agreement described
in clause (i).
``(B) System support resources unit.--The term
`system support resources unit' means a generating unit
that has been designated by a transmission organization
as a system support resources unit on--
``(i) an application to the transmission
organization by the owner of the unit to retire
or suspend operation of the unit; and
``(ii) a determination by the transmission
organization that the operation of the unit is
necessary to operate the transmission system
consistent with applicable reliability
standards.
``(C) Transmission organization.--The term
`transmission organization' has the meaning given the
term in section 215(a).
``(2) Review by commission.--
``(A) In general.--The Commission shall review any
decision by the North American Electric Reliability
Corporation to approve a new balancing authority that
would alter cost allocations under an existing system
support resources agreement.
``(B) Suspension of effectiveness.--The new
balancing authority described in subparagraph (A) shall
not take effect until approved by the Commission.
``(3) Cost-benefit analysis.--Prior to issuing a decision
under paragraph (4), the Commission shall publish a cost-
benefit analysis of the proposed decision described in
paragraph (2)(A), including the likely financial impact of the
decision on ratepayers.
``(4) Decision by commission.--
``(A) In general.--The Commission shall--
``(i) review a decision of the North
American Electric Reliability Corporation
described in paragraph (2)(A); and
``(ii) issue a decision that approves,
disapproves, or modifies the decision of the
North American Electric Reliability
Corporation.
``(B) Disapproval.--The Commission shall disapprove
a decision of the North American Electric Reliability
Corporation described in paragraph (2)(A) if the
Commission determines that the decision would result in
unjust, unreasonable, unduly discriminatory, or
otherwise unlawful rates for ratepayers.''.
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Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Referred to the Subcommittee on Energy and Power.
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