	Title XII -- Electricity

Section 1201. This title may be citedas the "Electric Reliability Act of 2005." Under this section, the ERO would develop and enforce reliability standards for the bulk-powersystem, including cybersecurity protection. All ERO standards would be approved by FERC. Underthis title, the ERO could impose penalties on a user, owner, or operator of the bulk-power systemthat violates any FERC-approved reliability standard. H.R. H.R. Similar provisions were included in the conference report of H.R. FERC would be ultimately responsible for reliability issues. New FPA Section 216(e) would allow permit holders to petition in U.S. District Court toacquire rights-of-way through the exercise of the right of eminent domain. The project would be required to be consistent with the needs identifiedby the appropriate Regional Transmission Organization or Independent System Operator. Within six months of enactment, the Secretary of Energy and the Federal Energy RegulatoryCommission would be required to complete a study and report to Congress on what would berequired to create and implement a transmission monitoring system for the Eastern and Westerninterconnections. Federal Utility Participation in RegionalTransmission Organizations. FERC'sproposed rulemaking on standard market design would be remanded to FERC for reconsideration. On July 31, 2002, FERC issued a Notice of Proposed Rulemaking (NOPR) on standardmarket design (SMD). Native Load Service Obligation. This section contains language not included in the conference report on H.R. Repeal of the mandatory purchase requirement was included in the conference report of H.R. The provision to repeal PUHCA was included in the conference report of H.R. The Public Utility Holding Company Act and the Federal Power Act (FPA) of 1935 (TitleI and Title II of the Public Utility Act) established a regime of regulating electric utilities that gavespecific and separate powers to the states and the federal government. 6 in the 108thCongress. Within 180 days after enactment, FERC would be required to issue rules to establish an electronicsystem that provides information about the availability and price of wholesale electric energy andtransmission services. Criminal and civil penalties under the FederalPower Act would be increased. Section206(b) of the Federal Power Act would be amended to allow the effective date for refunds to beginat the time of the filing of a complaint with FERC but not later than five months after such a filing. TheFederal Power Act would be amended to give FERC review authority for transfer of assets valuedin excess of $10 million. Other Electric Provisions

Section 504. On August 28, 2003, the Secretary of Energy issued Order No.
Electric utility provisions were included in comprehensive energy legislation( H.R. 6 ) that passed the House on April 21, 2005. For an analysis of all provisions ofHouse-passed H.R. 6, see CRS Report RL32936 , Omnibus Energy Legislation, 109thCongress: Assessment of H.R. 6 as passed by the House . The Senate Passed its versionof H.R. 6 on June 28, 2005. Conferees on H.R. 6, the Energy Policy Act of 2005, agreed on a finalbill July 26, 2005 ( H.Rept. 109-190 ). On July 28, the House approved the conference report(275-156). Senate approval (74-26) of the conference report followed the next day. The bill wassigned into law by President Bush on August 8, 2005.
This report describes Title XII of the House-passed H.R. 6 in the 109th Congressand other sections that deal with electric power issues. In part, Title XII would create an electricreliability organization (ERO) that would enforce mandatory reliability standards for the bulk-powersystem. All ERO standards would be approved by the Federal Energy Regulatory Commission(FERC). Under this title, the ERO could impose penalties on a user, owner, or operator of thebulk-power system that violates any FERC-approved reliability standard. This title also addressestransmission infrastructure issues. The Secretary of Energy would be able to certify congestion onthe transmission lines and issue permits to transmission owners. Permit holders would be able topetition in U.S. district court to acquire rights-of-way for the construction of transmission linesthrough the exercise of the right of eminent domain. A provision that would have required FERCto approve participant funding for new transmission lines was removed in markup by the HouseCommittee on Energy and Commerce.
The Standard Market Design notice of proposed rulemaking would be remanded to theFederal Energy Regulatory Commission. This provision clarifies native load service obligation. Federal utilities would be allowed to participate in regional transmission organizations.
The electricity title would repeal the mandatory purchase requirements under the PublicUtility Regulatory Policy Act. The Public Utility Holding Company Act of 1935 (PUHCA) wouldbe repealed. The Federal Energy Regulatory Commission and state regulatory bodies would be givenaccess to utility books and records.
FERC would be required to issue rules to establish an electronic system that providesinformation about the availability and price of wholesale electric energy and transmission services. For electric rates that the Federal Energy Regulatory Commission finds to be unjust, unreasonable,or unduly discriminatory, the effective date for refunds could begin at the time of the filing of acomplaint with FERC but not later than five months after filing of a complaint. Criminal and civilpenalties would be increased. The Federal Power Act would be amended to give FERC reviewauthority for transfer of assets valued in excess of $10 million.
This report will not be updated.