I
113th CONGRESS
2d Session
H. R. 5722
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.
Short title
This Act may be cited as the
Providing Opportunities to Work for Energy Reliability Act
or the
POWER Act
.
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:
Review of decisions of North American Electric Reliability Corporation affecting cost allocation under system support resources agreements
Definitions
In this subsection:
System support resources agreement
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—
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;
the payments to be made to the owner of the system support resources unit for the continued operation; and
the manner in which the costs for the continued operation will be recovered.
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).
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—
an application to the transmission organization by the owner of the unit to retire or suspend operation of the unit; and
a determination by the transmission organization that the operation of the unit is necessary to operate the transmission system consistent with applicable reliability standards.
Transmission organization
The term transmission organization has the meaning given the term in section 215(a).
Review by commission
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.
Suspension of effectiveness
The new balancing authority described in subparagraph (A) shall not take effect until approved by the Commission.
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.
Decision by commission
In general
The Commission shall—
review a decision of the North American Electric Reliability Corporation described in paragraph (2)(A); and
issue a decision that approves, disapproves, or modifies the decision of the North American Electric Reliability Corporation.
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.
.
