	Introduction

Conferees on the House and Senate energy bills ( H.R. 6 ) met on November 17,2003 and approved a conference report ( H.Rept. On November 18, 2003, the Houseapproved the Conference report to H.R. 6 by a vote of 246-180. On November 21,2003, a cloture motion to limit debate on H.R. 6 failed in the Senate by a vote of 57-40. This reportsummarizes the electricity title of H.R. 6 , Title XII. This section would require the Federal Energy Regulatory Commission (FERC) to promulgate ruleswithin 180 days of enactment to create a FERC-certified electric reliability organization (ERO). TheERO would develop and enforce reliability standards for the bulk-power system. All ERO standardswould be approved by FERC. Under this title, the ERO could impose penalties on a user, owner,or operator of the bulk-power system that violates any FERC-approved reliability standard. Based on the findings, the Secretary of Energy coulddesignate a geographic area as being congested. 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. Federal Utility Participation inRegional Transmission Organizations. FERC'sproposed rulemaking on standard market design would be remanded to FERC for reconsideration. The Public Utility Holding Company Act of 1935 (PUHCA) wouldbe repealed. 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. The Securitiesand Exchange Commission would be required to transfer all applicable books and records to FERC. 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. Within 180 days of enactment, the Secretary of Energy would be required totransmit to Congress a study on whether FERC's merger review authority is duplicative with otheragencies' authority and that would include recommendations for eliminating any unnecessaryduplication. TheFederal Power Act would be amended to give FERC review authority for transfer of assets valuedin excess of $10 million.
Conferees on the House and Senate energy bills ( H.R. 6 ) met on November 17,2003 and approved a conference report. On November 18, 2003, the House approved the Conferencereport to H.R. 6 by a vote of 246-180. On November 21, 2003, a cloture motion to limitdebate on H.R. 6 in the Senate failed by a vote of 57-40.
This report describes Title XII of the conference report on H.R. 6 which dealswith electric power issues. In part, this Title would create an electric reliability organization (ERO)that would enforce mandatory reliability standards for the bulk-power system. All ERO standardswould be approved by the Federal Energy Regulatory Commission (FERC). Under this Title, theERO could impose penalties on a user, owner, or operator of the bulk-power system that violates anyFERC-approved reliability standard. This Title also addresses transmission infrastructure issues. The Secretary of Energy would be able to certify congestion on the transmission lines and issuepermits to transmission owners. Permit holders would be able to petition in U.S. District Court toacquire rights-of-way for the construction of transmission lines through the exercise of the right ofeminent domain.
The Standard Market Design notice of proposed rulemaking would be remanded to theFederal Energy Regulatory Commission. The Conference report would clarify native load serviceobligation. 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 would 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 Secretary of Energy would be required to transmit to Congress a study on whetherFERC's merger review authority is duplicative with other agencies' authority. The Federal Power Actwould be amended to give FERC review authority for transfer of assets valued in excess of $10million.
This report will be updated as events warrant.