A bill to regulate and restrict the use of fuel adjustment clauses by federally regulated, and State regulated, electric and gas utilities, and for other purposes.

Amends the Federal Power Act to require the Federal Power Commission to hold an evidentiary hearing before approving public utility rate increases due to fuel adjustment clauses.

Requires a showing that the clause effectively provides incentives for the economical purchase and use of fuel. Requires further that the clause is necessary to enable the utility to pay for the added fuel costs which are by nature short-term fluctuations and therefore not capable of determination in proceedings before such costs are incurred.

Sets a one-year limit on approved fuel adjustment clauses and requires an evidentiary hearing before their renewal.

Requires the Commission to examine and, if appropriate, to audit the practices of public utilities using fuel adjustment clauses. Requires relevant utilities to supply information as the Commission may require and makes such information available to the public.

Grants to any purchaser of electric energy produced for resale and subject to a fuel adjustment clause, the right to examine the records of the relevant utility to insure compliance with applicable schedules and Commission rules.

Requires the Commission, after affording the opportunity for an evidentiary hearing, to order the cessation or modification of any practice which does not constitute the most economical purchase and use of fuel.

Amends the National Gas Act to impose similar restrictions on rate increases of natural gas companies pursuant to automatic adjustment clauses.

Prohibits State regulated utilities from making rate increases pursuant to an automatic adjustment clause unless such clause has been determined to effectively provide incentives for the economical purchase and use of the fuel involved. Requires further that such clauses be necessary to enable the utility to pay for short-term fluctuations in fuel costs that are not susceptible to determination in proceedings held prior to such costs being incurred.

Limits automatic adjustment clauses to one-year in duration, and requires an evidentiary hearing before their renewal.

Requires the reviewing authority to examine and, if appropriate, to audit the practices of utilities with respect to fuel adjustment clauses.

Requires that utilities supply such relevant information as is required by the State regulatory body and makes such information available to the public.

Sets procedures for the certification of State regulatory bodies with respect to this Act. Requires the Commission to enforce the Act in the absence of State certification and upon the request of any State regulated utility.

Amends the Federal Power Act to expand the scope of businesses forbidden from having interlocking directorates without Commission approval. Makes such approval no defense to actions under specified provisions of the Clayton Act.

Amends the Natural Gas Act to expand the scope of natural gas companies forbidden from having interlocking directorates without Commission approval. Makes such approval no defense to actions under specified provisions of the Clayton Act.