Public Power Risk Management Act of 2013 - Amends the Commodity Exchange Act to direct the Commodity Futures Trading Commission (CFTC), when it determines whether to provide an exemption to designation as a swap dealer, to treat a utility operations-related swap entered into with a utility special entity as if such swap were entered into with an entity that is not a special entity. (Thus exempts an entity entering into a utility operations-related swap with a utility special entity from mandatory registration as a swap dealer.)
Requires transactions in utility operations-related swaps to be reported according to requirements for the reporting of uncleared swaps.
Defines "utility special entity" as a special entity, or any instrumentality, department, or corporation of or established by a state or local government, that: (1) owns or operates an electric or natural gas facility or an electric or natural gas operation; (2) supplies natural gas or electric energy to another utility special entity; (3) has public service obligations under federal, state, or local law or regulation to deliver electric energy or natural gas service to customers; or (4) is a federal power marketing agency.
Redefines swap to include a utility operations-related swap.
Defines "utility operations-related swap" as one that: (1) is entered into to hedge or mitigate commercial risk; (2) is associated with specified transactions in electric energy or natural gas; and (3) is not a contract, agreement, or transaction based on, derived on, or referencing
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1802 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1802
To provide equal treatment for utility special entities using utility
operations-related swaps, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 11, 2013
Mr. Donnelly (for himself, Mr. Inhofe, Mr. Leahy, Mr. Whitehouse, Ms.
Heitkamp, Mr. Coats, Ms. Collins, and Mr. Blunt) introduced the
following bill; which was read twice and referred to the Committee on
Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To provide equal treatment for utility special entities using utility
operations-related swaps, 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 ``Public Power Risk Management Act of
2013''.
SEC. 2. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES.
Section 1a(49) of the Commodity Exchange Act (7 U.S.C. 1a(49)) is
amended by adding at the end the following:
``(E) Certain transactions with a utility special
entity.--
``(i) Transactions in utility operations-
related swaps shall be reported pursuant to
section 4r.
``(ii) In making a determination to exempt
pursuant to subparagraph (D), the Commission
shall treat a utility operations-related swap
entered into with a utility special entity, as
defined in section 4s(h)(2)(D), as if it were
entered into with an entity that is not a
special entity, as defined in section
4s(h)(2)(C).''.
SEC. 3. UTILITY SPECIAL ENTITY DEFINED.
Section 4s(h)(2) of the Commodity Exchange Act (7 U.S.C. 6s(h)(2))
is amended by adding at the end the following:
``(D) Utility special entity.--For purposes of this
Act, the term `utility special entity' means a special
entity, or any instrumentality, department, or
corporation of or established by a State or political
subdivision of a State, that--
``(i) owns or operates an electric or
natural gas facility or an electric or natural
gas operation;
``(ii) supplies natural gas and or electric
energy to another utility special entity;
``(iii) has public service obligations
under Federal, State, or local law or
regulation to deliver electric energy or
natural gas service to customers; or
``(iv) is a Federal power marketing agency,
as defined in section 3 of the Federal Power
Act.''.
SEC. 4. UTILITY OPERATIONS-RELATED SWAP.
(a) Swap Further Defined.--Section 1a(47)(A)(iii) of the Commodity
Exchange Act (7 U.S.C. 1a(47)(A)(iii)) is amended--
(1) by striking ``and'' at the end of subclause (XXI);
(2) by adding ``and'' at the end of subclause (XXII); and
(3) by adding at the end the following:
``(XXIII) a utility operations-
related swap;''.
(b) Utility Operations-Related Swap Defined.--Section 1a of such
Act (7 U.S.C. 1a) is amended by adding at the end the following:
``(52) Utility operations-related swap.--The term `utility
operations-related swap' means a swap that--
``(A) is entered into to hedge or mitigate a
commercial risk;
``(B) is not a contract, agreement, or transaction
based on, derived on, or referencing--
``(i) an interest rate, credit, equity, or
currency asset class; or
``(ii) a metal, agricultural commodity, or
crude oil or gasoline commodity of any grade,
except as used as fuel for electric energy
generation; and
``(C) is associated with--
``(i) the generation, production, purchase,
or sale of natural gas or electric energy, the
supply of natural gas or electric energy to a
utility, or the delivery of natural gas or
electric energy service to utility customers;
``(ii) all fuel supply for the facilities
or operations of a utility;
``(iii) compliance with an electric system
reliability obligation;
``(iv) compliance with an energy, energy
efficiency, conservation, or renewable energy
or environmental statute, regulation, or
government order applicable to a utility; or
``(v) any other electric energy or natural
gas swap to which a utility is a party.''.
SEC. 5. EFFECTIVE DATE.
The amendments made by this Act take effect as if enacted on July
21, 2010.
<all>
Introduced in Senate
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
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