H.R. 1038: Public Power Risk Management Act of 2013

113th Congress, 2013–2015. Text as of Jun 12, 2013 (Passed the House (Engrossed)).

Status & Summary | PDF | Source: GPO and Cato Institute Deepbills

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113th CONGRESS

1st Session

H. R. 1038

IN THE HOUSE OF REPRESENTATIVES

AN ACT

To provide equal treatment for utility special entities using utility operations-related swaps, and for other purposes.

1.

Short title

This Act may be cited as the Public Power Risk Management Act of 2013 .

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).

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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.

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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;

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(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.

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5.

Effective date

The amendments made by this Act take effect as if enacted on July 21, 2010.

Passed the House of Representatives June 12, 2013.

Karen L. Haas,

Clerk.