HR 2645 IH

To provide for the restructuring of the electric power industry.

July 29, 1999

Mr. KUCINICH (for himself, Mr. GUTIERREZ, Ms. SCHAKOWSKY, and Ms. BALDWIN) introduced the following bill; which was referred to the Committee on Commerce

To provide for the restructuring of the electric power industry.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited the `Electricity Consumer, Worker, and Environmental Protection Act of 1999'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Findings.

Sec. 3. Definitions.

Sec. 4. Severability.

Sec. 5. Enforcement.

TITLE I--FEDERAL STANDARDS FOR ELECTRICITY SERVICE

Sec. 101. Worker protections.

Sec. 102. Consumer privacy.

Sec. 103. Payment plans.

Sec. 104. Bills.

Sec. 105. Dispute resolution.

Sec. 106. Distribution service and supply service quality standards.

Sec. 107. Citizen utility boards.

Sec. 108. Office of Consumer Counsel.

Sec. 109. Prohibition of power plant bailouts.

Sec. 110. Prohibition of affiliate abuses and cross-subsidies.

Sec. 111. Mergers.

Sec. 112. Pollution standards.

Sec. 113. National Electric Public Benefit Board.

Sec. 114. National Electric Public Benefit Fund.

Sec. 115. Renewable energy portfolio standards.

Sec. 116. Net-metering and interconnection standards.

Sec. 117. Civil liability.

TITLE II--STATE STANDARDS FOR ELECTRICITY SERVICE

Sec. 201. State certification for retail deregulation.

Sec. 202. Prohibition of cost shifting.

Sec. 203. Prohibition of affiliate abuses and cross-subsidies.

Sec. 204. Prohibition of excessive generation market power.

Sec. 205. Basic service.

Sec. 206. Aggregation of consumers.

Sec. 207. Worker protections.

Sec. 208. Licensing and disclosure requirements for retail suppliers.

Sec. 209. Regulation of distribution companies.

Sec. 210. Change of supplier.

Sec. 211. Distribution service disconnections and supply terminations.

Sec. 212. Credit and collection practices.

Sec. 213. Unfair trade practices.

Sec. 214. Meters.

Sec. 215. Exemption rescinded from Equal Credit Opportunity Act.

Sec. 216. Consumer remedies.

SEC. 2. FINDINGS.

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SEC. 3. DEFINITIONS.

For purposes of this Act:

(1) The term `Administrator' means the Administrator of the Environmental Protection Agency.

(2) The term `affiliate' of a specific company means any company 5 percent or more of whose outstanding voting securities are owned, controlled, or held with power to vote, directly or indirectly, by such specific company.

(3) The term `aggregator' means any person that purchases or acquires retail electricity on behalf of two or more consumers.

(4) The term `ancillary services' shall have the same meaning assigned to it by the Commission.

(5) The term `antitrust law' includes `an Act to protect Trade and Commerce against unlawful restraint and monopolies approved July 2, 1890' (The Sherman Act, 15 U.S.C. 1-7); sections seventy-three to seventy-seven, inclusive of an Act entitled `An Act to reduce taxation, to provide revenue for the Government and for other purposes of August 27, 1894' (The Wilson Tariff Act, 15 U.S.C. 8-11; section 77 of The Wilson Tariff Act was not codified); an Act to supplement existing laws against unlawful restraint and monopolies, and for other purposes, approved October 15, 1914 (The Clayton Act, 15 U.S.C. 12-22 and 27, and 29 U.S.C. 52 and 53); and an Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes approved September 26, 1914 (The Federal Trade Commission Act, 15 U.S.C. 41 et seq.)

(6) The term `associate company' of a company means any company in the same holding company system with such company.

(7) The term `basic service' means the supply and delivery of electricity to a consumer in instances where the consumer is unable or unwilling to choose a supplier in States that have deregulated retail sales of electricity.

(8) The term `Board' means the National Electric Public Benefit Board established under section 113.

(9) The term `class' or `customer class' means a group of customers with similar characteristics (e.g., residential, commercial, industrial, etc.), identified for the purpose of setting a rate for electric service.

(10) The term `commercial customer' means a company that has traditionally received a commercial rate for electricity, as opposed to a residential or industrial rate. `Small commercial customers' are commercial customers with a monthly peak demand less than 1,000 kW, and `large commercial customers' include all other commercial customers.

(11) The term `Commission' means the Federal Energy Regulatory Commission.

(12) The term `company' means a corporation, not-for-profit organization, joint stock company, partnership, association, business trust, organized group of persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing.

(13) The terms `consumer' and `customer' mean a person, government, corporation, or a company that purchases retail electricity for ultimate consumption.

(14) The term `corporation' means any corporation, not-for-profit organization, joint-stock company, partnership, association, rural electric cooperative, municipal utility, business trust, organized group of persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing.

(15) The term `distribution company' means any company that owns or operates facilities used to deliver retail electricity for ultimate consumption.

(16) The term `distribution facilities' means facilities used to provide retail electricity for ultimate consumption.

(17) The term `distributor' means a retail electricity distributor.

(18) The term `electric generator' means a person generating electricity.

(19) The term `electric utility company' means any company that owns or operates facilities used for the generation, transmission, or distribution of electricity for sale.

(20) The term `end-use consumer' means a person that purchases electricity based on metered use but does not resell electricity based on metered use.

(21) The term `Fund' means the National Electric Public Benefit Fund established by section 113.

(22) The term `gas utility company' means any company that owns or operates facilities used for distribution at retail (other than the distribution only in enclosed portable containers) of natural or manufactured gas for heat, light, or power.

(23) The term `high-level nuclear waste' means nuclear fuel that has undergone nuclear fission, or any nuclear fuel contaminated by nuclear fuel that has undergone nuclear fission.

(24) The term `holding company system' means a holding company together with its subsidiary companies.

(25) The term `investor-owned company' means any company whose shares are owned by private individuals or companies.

(26) The term `large hydroelectric facility' means a facility which has a power production capacity which, together with any other facilities located at the same site, is greater than 80 megawatts.

(27) The term `load pocket' means a portion of the generation, transmission, and distribution network in which most of the electricity consumed by electric loads is supplied by generating plants located close to the loads, because transmission constraints limit the amount of electricity available from more distant generating plants.

(28) The term `low-level nuclear waste' means radioactive waste not classified as high-level radioactive waste, transuranic waste, spent nuclear fuel, or byproduct materials as defined in section 11e(2) of the Atomic Energy Act of 1954 (42 U.S.C. 2021). This definition shall apply notwithstanding any declaration by the Federal Government or any State that any radioactive material is exempt from any regulatory control.

(29) The term `municipal utility' means a city, county, irrigation district, drainage district, public utility district, or other political subdivision or agency of a State competent under the laws thereof to carry on the business of a retail electricity distributor and/or a retail electricity supplier.

(30) The term `person' means an individual or corporation.

(31) The term `public utility company' means an electric utility company or gas utility company but does not mean a qualifying facility as defined in the Public Utility Regulatory Policies Act, or an exempt wholesale generator or a foreign utility company defined in the Energy Policy Act of 1992.

(32) The term `public utility holding company' means--

(A) any company that directly or indirectly owns, controls, or holds with power to vote, 10 percent or more of the outstanding voting securities of a public utility company or of a holding company of any public utility company; and

(B) any person, determined by the Securities and Exchange Commission, after notice and opportunity for hearing, to exercise directly or indirectly (either alone or pursuant to an arrangement or understanding with one or more persons) such a controlling influence over the management or policies of any public utility or holding company as to make it necessary or appropriate for the protection of consumers with respect to rates that such person be subject to the obligations, duties, and liabilities imposed in this title upon holding companies.

(33) The term `regulated service' means a wholesale or retail service of which the price or rate is regulated by a Federal, State, or local agency or board.

(34) The term `renewable energy' means electricity generated from organic waste biomass (excluding incinerated municipal solid waste or black liquor), dedicated biomass energy crops, landfill gas, geothermal, solar, or wind resources.

(35) The term `renewable energy credit' means a tradable certificate of proof that one kilowatt-hour of renewable energy was generated by any person.

(36) The term `retail deregulation' means any action taken by a State, with respect to retail electricity service, that reduces the public control and oversight of business practices that affect the public interest.

(37) The term `retail electricity' means electricity and ancillary services sold for ultimate consumption.

(38) The term `retail electricity distributor' means any person who delivers retail electricity to consumers regardless of whether the consumers purchase such electricity from the distributor or an alternative supplier. A retail electricity distributor may also be a retail electricity supplier.

(39) The term `retail electricity service' means the production, generation, retail transmission, distribution, aggregation, retail marketing, retail brokering, retail selling, or other retail supplying of electricity, but does not mean transmission in interstate commerce.

(40) The term `retail electricity supplier' means any person that sells retail electricity to consumers, including without limitation regulated utility companies or affiliates or associates of such companies, companies unaffiliated or not associated with regulated utility companies, municipal utilities, cooperative utilities, local governments, and special districts.

(41) The term `rural electric cooperative' means an enterprise or organization owned by and operated for the benefit of those receiving retail electricity (usually distribution and supply) and other services from the cooperative, many of which have received loans from the Administrator of the Rural Electrification Administration or the Rural Utilities Service under the Rural Electrification Act of 1936.

(42) The term `Secretary' means the Secretary of Energy.

(43) The term `seller' means a retail electricity distributor or a retail electricity supplier.

(44) The term `State' means any State, admitted to the union, the District of Columbia, and any organized territory of the United States.

(45) The term `State regulatory authority' means the regulatory body of a State or municipality having sole jurisdiction to regulate rates and charges for the distribution of electricity to consumers within the State or municipality.

(46) The term `subsidiary company' of a holding company means--

(A) any company 10 percent or more of the outstanding voting securities of which are directly or indirectly owned, controlled, or held with power to vote, by such holding company; and

(B) any person the management or policies of which the Securities and Exchange Commission, after notice and opportunity for hearing, determines to be subject to a controlling influence, directly or indirectly, by such holding company (either alone or pursuant to an arrangement or understanding with one or more other persons) so as to make it necessary for the protection of consumers that such person be subject to the obligations, duties, and liabilities imposed upon subsidiary companies of public utility holding companies.

(47) The term `supplier' means a retail electricity supplier.

(48) The term `transmission company' means any company that owns or operates facilities used to transmit electricity, but does not include distribution facilities as determined by the Commission.

(49) The term `transmission system' means all facilities, including federally owned facilities, transmitting electricity in interstate commerce in a particular region, including all facilities transmitting electricity in the State of Texas and those providing international interconnections, but does not include local distribution facilities as determined by the Commission.

(50) The term `universal service' means any State or Federal program that ensures safe, affordable, and reliable access to retail electricity services by any consumer regardless of age, race, creed, color, national origin, ancestry, sex, marital status, sexual orientation, lawful source of income, amount of income, disability, or familial status or location of domicile or business, or whether the consumer is located in an economically distressed geographic area.

(51) The term `wholesale electricity' means electricity and ancillary services sold for resale.

(52) The term `wholesale electricity supplier' means any person that sells wholesale electricity.

(53) The term `voting security' means any security presently entitling the owner or holder thereof to vote in the direction or management of the affairs of a company.

SEC. 4. SEVERABILITY.

If any provision of this Act, or the application of such provision to any person or circumstance, shall be held invalid, the remainder of the Act, and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

SEC. 5. ENFORCEMENT.

(a) IN GENERAL- If any individual or corporation or any other retail electricity distributor or supplier fails to comply with the requirements of this Act, any aggrieved person may bring an action against such entity to enforce the requirements of this Act in the appropriate Federal district court.

(b) COURT ACTION- Notwithstanding any other provision of law, any person seeking redress from an order, rule, or other action taken pursuant to the Act by the Commission, or any other Federal agency, or a regulatory board created by this Act may file a petition for review of such order, rule, or other action within 30 days in the United States Court of Appeals where such person resides or in the United States Court of Appeals for the District of Columbia circuit.

(c) STATE LAW- Notwithstanding any other provision of law, any person seeking redress from an order, rule, or other action taken pursuant to the Act by a State agency may appeal the order, rule, or other action in accordance with State law.

TITLE I--FEDERAL STANDARDS FOR ELECTRICITY SERVICE

SEC. 101. WORKER PROTECTIONS.

(a) IN GENERAL- Workers of companies that install, operate, and maintain generation, transmission, or distribution facilities, or any person or company that enters into a contract to perform these functions, shall have the requisite knowledge, skills, and competence to perform these functions in a safe and responsible manner in order to provide safe and reliable service. Given the critical necessity for trained and qualified personnel to operate all segments of the electric utility industry, the provisions of the 1994 National Skills Standards Act and title V of the Goals 2000: Educate America Act shall take effect for all electric utility workers within 180 days after the effective date of this Act.

(b) GENERATING PLANTS- All generating plants shall be subject to State and Federal general industry requirements as established by the Occupational Safety and Health Administration and shall undergo periodic government inspection.

(c) TRANSFER OF OWNERSHIP- (1) In the event of a sale, purchase, or any other transfer of ownership of one or more divisions or business units, generating stations, and/or generating units of an electric utility, the

electric utility's contract and/or agreements with the acquiring entity or persons shall require that the entity or persons hire a sufficient number of nonsupervisory employees to operate and maintain the station, division or unit by initially making offers of employment to the nonsupervisory workforce of the electric utility's division, business unit, generating station or generating unit at no less than the wage rates, and substantially equivalent fringe benefits and terms and conditions of employment, that are in effect at the time of transfer of ownership of said division, business unit, generating station and/or generating units; and said wage rates and substantially equivalent fringe benefits and terms and conditions of employment shall continue for at least 30 months from the time of said transfer of ownership unless the parties mutually agree to different terms and conditions of employment within that 30-month period. If there is litigation concerning the sale, or other transfer of ownership of the electric utility's divisions, business units, generating station, or generating units, the 30-month period will begin on the date the acquiring entity or persons take control or management of the divisions, business units, generating station or generating units of the electric utility.

(2) If a utility transfers ownership of one or more divisions, business units, generating stations, and/or generating units of an electric utility to a majority-owned subsidiary, that subsidiary shall continue to employ the utility's employees who were employed by the utility at such division, business unit, or generating station at the time of the transfer under the same terms and conditions of employment as those employees enjoyed at the time of the transfer.

(3) If ownership of the subsidiary is subsequently sold or transferred to a third party, the transition provisions of paragraph (1) shall apply.

(4) An electric utility company shall offer a transition plan to those employees who are not offered jobs by the acquiring entity if that entity has a need for fewer workers.

SEC. 102. CONSUMER PRIVACY.

(a) IN GENERAL- A consumer shall have a right to the privacy of billing, payment, and specific usage and appliance information that is obtained by the seller in the normal course of business.

(b) CUSTOMER-SPECIFIC INFORMATION- A seller shall obtain the permission of the consumer in writing before releasing customer-specific information. A customer's permission cannot be provided with a clause in a contract for the sale of electricity. Permission can only be obtained in writing on a separate document. Any form provided to the consumer to grant permission for the release of customer-specific information must clearly specify the type of recipient, the category of information proposed to be released, and how the consumer can rescind this permission at any time.

(c) RESCISSION- A consumer may rescind previously-granted permission at any time in writing to the person who solicited the permission. A rescission is effective no later than three business days after the consumer deposits it in the United States mail.

(d) GENERAL INFORMATION- A seller may at any time release generic information about a customer class or its customers in general, such as load and usage data, appliance penetration, demographic information, and payment experience. Generic customer information shall not be released without permission of the affected customers when the information concerns a customer class or group of customers that is small enough to reveal the probable usage, billing, or payment behavior of individual members of the customer group or class. There shall be a rebuttable presumption that a customer class or group with three or fewer members meets this criteria. Furthermore, no seller shall sell or release information within its possession that would, if used as a basis to grant credit, result in a credit decision on a prohibited basis set forth in the Federal Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.).

(e) CUSTOMER NAMES AND ADDRESSES- A distributor shall make available a list of its current customer names and mailing addresses to any supplier upon request and for a reasonable fee. The revenues received by a distributor for the sale of this information shall be included in the determination of the distributor's revenue requirement. The State regulatory authority may impute revenues to the distributor to reflect the market value of the information sold or provided to any supplier.

(f) LAW ENFORCEMENT- Federal or State authorities or any law enforcement agency may have access to individual customer records without the permission of the customer as necessary to conduct its regulatory duties and supervise sellers for compliance with Federal and State law and this Act. Federal or State authorities or any law enforcement agency shall retain any such records in its files as confidential and such records shall not be considered available to the public under any `right to know' or disclosure law without the written consent of the customer.

(g) CREDIT HISTORY- A seller may release a customer's credit history to a third party in an attempt to collect an unpaid debt or to report on the customer's payment history to a credit reporting agency under the terms of applicable State and Federal law.

SEC. 103. PAYMENT PLANS.

All distributors and suppliers shall make available deferred payment plans and equal monthly budget billing plans.

SEC. 104. BILLS.

(a) IN GENERAL- A bill issued by a retail electricity distributor or supplier shall contain the following information in a format understandable by the average customer:

(1) The identity of the person issuing the bill, and if the bill is issued by a retail electricity distributor under contract with a supplier, the identity of the supplier, respective addresses, and telephone numbers where the customer can call or write with inquiries.

(2) The type of meter in use by the customer, the meter reading from the last bill, the current meter reading, and the total kilowatt-hours used by the customer for the billing period.

(3) If the bill is based on an estimated reading, a conspicuous disclosure of this fact.

(4) Any additional services or products provided since the issuance of the last bill.

(5) The nature of the service being offered, including information about interruptibility or curtailment of service.

(6) The variable price (in dollars per kilowatt-hour, as appropriate) and the fixed price (in dollars, as appropriate) of electricity, transmission services, distribution services, taxes; any charges, fees or penalties, and the price for other products or services bought by or provided to the customer, all stated in a manner that allows the customer to recalculate the entire bill amount.

(7) A clear and understandable description of all charges associated with the service being offered, including access charges, back-up service charges, and customer service charges, except that all distributors shall not itemize any program or charge included in the rates for services provided by or included in the rates of the distributor other than those specifically authorized by the State authority that regulates a distributor's terms and conditions. This itemization shall not include the costs of any public benefit program authorized by any Federal or State authority.

(8) Every supplier shall, on at least a monthly basis, provide in billing inserts the following information, in a clearly legible manner.

(A) A breakdown, on a percentage basis, of the known sources of electricity sold or otherwise supplied to the consumer. This breakdown shall provide percentages of biomass power, coal-fired power, hydropower, natural gas fired power, nuclear power, oil-fired power, solar power, wind power, power from municipal waste incinerators, other resources, and unknown resources purchased from other companies respectively. When a supplier has obtained electricity from a power pool, this fact shall be disclosed, and the supplier shall disclose the generic categories (with percentages where applicable) of power dispatched by the pool during the previous billing cycle--

(i) the percentage used shall be rounded to the nearest whole number; and

(ii) any source of electricity in paragraph (8)(A) that is not used shall be listed in the table and depicted as `0 percent'.

(B) A pie-chart, which graphically depicts the information in paragraph (8)(A), shall also be provided--

(i) any source of electricity in paragraph (8)(A) that is not used shall be listed next to the pie-chart; and

(ii) each segment in the pie-chart shall be depicted in the following colors: biomass power--light brown; coal-fired power--black; hydropower--blue; natural gas-fired power--grey; nuclear power--red; oil-fired power--dark brown; power from municipal waste incinerators--orange; solar power--yellow; wind power--green; and other resources--white.

(C) A table shall be provided which depicts the actual emissions of particulate matter between 10 micrometers and 2.5 micrometers in diameter, particulate matter 2.5 micrometers or less in diameter, carbon dioxide, nitrogen oxides, sulfur dioxide, mercury, and high-level and low-level nuclear waste attributable to the sources of electricity identified in paragraph (8)(A). The table shall also show the theoretical emissions of such pollutants attributable to the sources of electricity identified in paragraph (8)(A), based on application of the Generation Pollution Standards defined in subsection 112(c). The table shall also show the word `Good' if the actual emissions of such pollutants are less than or equal to the theoretical emissions, and the word `Bad' if the actual emissions of such pollutants are greater than the theoretical emissions--

(i) the particulate matter emissions, carbon dioxide emissions, nitrogen oxides emissions, and sulfur dioxide emissions shall be stated in pounds;

(ii) the high-level nuclear waste shall be stated in pounds and curies; and

(iii) the low-level nuclear waste shall be stated in cubic feet and curies.

(9) A disclosure of the customer's annual and monthly usage for each of the previous 12 months (or a shorter period for a customer who does not have a 12-month history with the supplier). A distributor and supplier may coordinate this disclosure to avoid duplication and enhance customer understanding.

(b) SERVICES OR PRODUCTS- A seller may include services or products on the customer's bill other than for the transmission, distribution and retail sale of electricity, but any such service or product shall be clearly identified and totaled separately from the sales of electricity.

(c) PENALTY- The failure of a seller to accurately disclose information as required by this section shall be treated as a deceptive act in commerce under section 5 of the Federal Trade Commission Act (15 U.S.C. 45).

SEC. 105. DISPUTE RESOLUTION.

(a) IN GENERAL- Each seller shall maintain a written policy to govern the receipt, investigation, and resolution of customer inquiries and complaints. This policy shall be available to any customer upon request, including requests that occur by a consumer on a walk-in basis during normal business hours. Each distributor shall maintain and make publicly available on a walk-in basis during normal business hours the written policies of each seller that in any way uses the distribution facilities of the distribution. At a minimum this policy must include a method to track complaints by category and the retention of complaint records for a period of at least one year.

(b) COMPLAINTS- A consumer may initiate complaints against the distributor or against any seller that in any way uses the distribution facilities of the distributor

through a filing at the distributor's offices, or at the offices of the seller, or at the offices of the State regulatory authority. A consumer must be able to file a complaint on a walk-in basis during normal business hours, in addition to any other complaint process established by the seller or the State regulatory authority. If a seller has provided a good faith response to the customer and the customer remains dissatisfied, the seller shall refer the customer to the State regulatory authority's toll-free number for customer complaints. For a three-business-day period after the referral, the seller shall not take any adverse action with respect to the customer's complaint. Upon receipt of any complaint from a customer who has attempted to resolve the matter with the seller, the State authority with jurisdiction shall promptly notify the seller who shall take no further adverse action with respect to the disputed amount prior to the State authority's decision on the complaint. The State authority may investigate and take whatever action it deems appropriate to resolve the complaint, including setting the terms for application for service, payment arrangement, billing error or dispute, allegation of violation of these rules or other matters within the jurisdiction of the State authority.

(c) DISCONNECTIONS- There shall be no disconnections from service (distribution or supply) while a complaint is pending.

(d) ARBITRATION- There shall be no mandatory arbitration of complaints.

(e) RIGHT TO DISPUTE RESOLUTION- No customer can be forced to pay a disputed bill in order to assert a customer's right to dispute resolution.

SEC. 106. DISTRIBUTION SERVICE AND SUPPLY SERVICE QUALITY STANDARDS.

(a) REPORTS- On a monthly basis each seller shall submit reports to the appropriate State regulatory authority and to the Energy Information Administration that describe, document, and measure the quantity, quality, and prices for distribution service and supply service.

(b) INDEX- The data reported in subsection (a) shall be used to create an index that shall track the performance of sellers in selected performance areas on an annual basis. The index shall be designed to conform to the following minimum requirements:

(1) The index shall track a distributor's and supplier's performance in a range of service quality and reliability services for electricity consumers, including without limitation, rates and prices for electricity service for all customers, variable charges, access charges, back-up service charges, customer service charges, customer satisfaction surveys, business office and phone center performance, repair and installation of new service, connection and disconnection of service, delivery of State or federally mandated programs, duration and frequency of outages, storm response, customer complaint ratio, accuracy of meter readings and bills, as well as compliance with specific service quality and credit and collection rules applicable to both residential and business customers.

(2) In addition to items specifically mentioned in this Act, the National Association of State Utility Consumer Advocates, the National Association of Regulatory Utility Commissioners, and the Energy Information Administration shall determine the specific items to be measured and reported by distributors and suppliers, with input by other government and nongovernment organizations as needed.

(3) The index shall specify the source and reporting format of the data to be used by the distributors and suppliers in their filings with State regulatory authorities and the Energy Information Administration, and the State regulatory authorities or the Energy Information Administration may audit the data provided by the distributors or suppliers at the expense of the distributor or the supplier.

(4) The index shall track the performance of the sellers in selected performance areas on an annual basis in comparison to a baseline performance level that shall be set to reflect either recent historical performance of the seller, taking into account a reasonable margin of error, or at a higher performance level if a State regulatory authority determines that the seller's recent historical performance is not adequate. If the seller has not maintained historical data sufficient to establish a baseline for a particular performance area and a State regulatory authority determines that the performance area should be measured, the State regulatory authority may authorize the use of recent data from comparable sellers.

(5) Each item in the index shall be worth an equal number of points. Performance for one item shall not offset performance in any other item in the index. If the seller's annual performance is equal to or better than the baseline performance level, the maximum number of points for that item shall be awarded. If the seller's performance is below the level established as the baseline, a percentage of the maximum points shall be awarded equal to the percentage deterioration in performance reported by the seller. In other words, if the seller performs at 80 percent of the baseline performance level, 80 percent of the maximum points will be awarded for that item.

(6) A specific measurement shall be adopted to assure the seller fulfills its Universal Service obligations. A distributor shall annually survey the ability of its customers to afford electric service. The survey shall specifically target customers with annual household income of 150 percent of Federal poverty guidelines or less but may also target higher income households as well. The survey shall obtain data on the affordability of electric service by measuring the impact of low, average, and high use customers at 0-50 percent, 51-100 percent, and 101-150 percent of Federal poverty guidelines, using the average price charged for basic service during the 12-month period prior to the survey. The distributor shall report the results of this survey to the State regulatory authority and to the Energy Information Administration, both of which will make them available for free to the general public. When the results of the survey indicate that one or more groups of customers with income of 150 percent of Federal poverty guidelines or less pay, on average, over ten percent of their annual income for electricity (15 percent if the household uses electricity as the primary heating source), the distributor shall expand or initiate programs to assist the affected customer classes in the payment of their electric bill, to reduce the amount of the bill with energy efficiency programs, or both.

(c) PENALTY- A penalty shall be established for distributors that fail to achieve the baseline performance level in any year with a dollar amount specified for each point in the index that is below the baseline performance level. The maximum penalty shall be determined by the State regulatory authority after taking into account the recent history of the distributor in achieving reasonable service quality and reliability. The dollar amount of penalty in any one year may vary with the degree of deterioration of performance by the distributor, but the entire penalty shall be assessed if the distributor's performance in any one year shows a 30 percent deterioration in performance in the overall index. A distributor shall not be awarded increased earnings for performance above the baseline level in any item.

(d) CREDIT OR REBATE- Any penalties incurred under the index may be returned to all customers in the form of a one-time credit or rebate or paid to customers affected by the degradation of service, such as a failure to install new service on time, or both. In either case, in any year in which penalties are triggered, the distributor shall inform its customers of its failure to achieve the baseline level of service quality in a manner approved by the State regulatory authority.

(e) REPORT- Annually the Energy Information Administration shall make publicly available for free a report (including all supporting documentation) showing the scores of each retail electricity distributor and each retail electricity supplier for every item measured by the index. The report and all supporting data and documentation must be posted on the Internet for free downloading in a form usable with off-the-shelf spreadsheet and database software.

SEC. 107. CITIZEN UTILITY BOARDS.

(a) ESTABLISHMENT- Unless already in existence, each State shall create a not-for-profit membership corporation to be known as the `Citizens' Utility Board, Inc.' herein referred to as the State CUB. An existing not-for-profit membership corporation located in a State may become the State CUB provided it meets all the requirements of this section.

(b) MEMBERSHIP- The membership of the State CUB shall consist of all residential consumers of electricity or natural gas 16 years of age or older who have contributed to the State CUB an annual membership fee, provided, that any person may resign from membership.

(c) DUTIES, RIGHTS, AND POWERS OF THE STATE CUB- (1) The State CUB shall--

(A) represent and promote the interests of a State's residential consumers of electricity or natural gas. All actions by the State CUB under this section shall be directed toward such duty;

(B) inform, insofar as possible, all residential consumers of electricity or natural gas about the State CUB including the procedure for obtaining membership in the State CUB;

(C) establish an annual membership fee which shall be set at a level that provides sufficient funding for the State CUB to effectively perform its powers and duties, and is affordable for as many electricity or natural gas consumers as is possible, but nevertheless is not less than five dollars; and

(D) have all rights and powers accorded generally to, and be subject to all duties imposed generally upon, not-for-profit membership corporations under the laws of a State.

(2) In addition, the State CUB shall have the following rights and powers:

(A) To solicit and accept gifts, loans, grants or other aid in order to support activities concerning the interests of residential consumers of electricity or natural gas, except that the State CUB may not accept gifts, loans or other aid from any person or company that generates, transmits, distributes, or supplies electricity or natural gas, or from any director, employee or agent or member of the immediate family of a director, employee or agent of any company that generates, transmits, distributes, or supplies electricity or natural gas.

(B) To seek tax-exempt status under State and Federal law.

(C) To conduct, support, and assist research, surveys, investigations, planning activities, conferences, demonstration projects, and public information activities concerning the interests of residential consumers of electricity or natural gas. The State CUB may accept grants, contributions, and legislative appropriations for such activities.

(D) To contract for services which cannot reasonably be performed by its employees.

(E) To represent the interests of residential consumers of electricity or natural gas before regulatory agencies, legislative bodies and other public bodies.

(F) To initiate, to intervene as a party, to maintain, or to otherwise participate on behalf of residential consumers of electricity or natural gas in any proceeding that affects the interests of residential consumers of electricity or natural gas.

(G) To support or oppose ballot propositions concerning matters that it determines may affect the interests of residential consumers of electricity or natural gas.

(3) The State CUB shall have, in addition to the rights and powers enumerated in this section, such other incidental rights and powers as are reasonably necessary for the effective representation and protection of the interests of residential consumers of electricity or natural gas.

(4) The State CUB shall not sponsor, endorse, or otherwise support, nor shall it oppose, any political party or the candidacy of any person for public office.

(d) STATE-ASSISTED FUNDRAISING BY THE STATE CUB- (1) The State CUB shall have the authority to prepare and furnish to any State agency an enclosure that the State agency shall include within any mailing designated by the State CUB. The State CUB shall provide the agency with any such enclosure at a time reasonably in advance of the mailing. The State CUB may not require any State agency to mail an enclosure more than four times in any calendar year.

(2) Enclosures furnished by the State CUB under this section shall be limited to soliciting information and money from consumers and explaining--

(A) the purpose, history, nature, activities, and achievements of the State CUB;

(B) that the State CUB is open to membership by residential consumers;

(C) that the State CUB is not connected to any utility company or governmental agency;

(D) that the State CUB is a not-for-profit corporation directed by its consumer members;

(E) the procedure for contributing to or becoming a member of the State CUB; and

(F) the yearly membership fee.

(3) Prior to furnishing an enclosure to a State agency for mailing, the State CUB shall seek and obtain the approval of the appropriate State authority of the content

of the enclosure. The State authority shall approve the enclosure if it determines that the enclosure--

(A) is not false or misleading, and

(B) contains and is limited to the information permitted by this section. The State authority shall be deemed to have approved the enclosure unless it disapproves the enclosure within fourteen days of receipt.

(4) The State CUB shall reimburse each State agency for all reasonable incremental costs incurred by the State agency in complying with this section above the agency's normal mailing and handling costs, provided that--

(A) the State agency shall first furnish the State CUB with an itemized accounting of such additional costs; and

(B) the State CUB shall not be required to reimburse the State agency for postage costs if the weight of the State CUB's enclosure does not increase the cost of the State agency mailing. If the State CUB's enclosure increases the cost of the State agency mailing, then it will be required to reimburse the State agency for postage cost over and above what the agency's postage cost would have been without the State CUB's enclosure.

SEC. 108. OFFICE OF CONSUMER COUNSEL.

The Federal Power Act is hereby amended by adding the following new section after section 320:

`SEC. 320A. OFFICE OF CONSUMER COUNSEL.

`(a) ESTABLISHMENT- There is hereby established within the Federal Energy Regulatory Commission an Office of the Consumer Counsel. The Office shall be under the direction and supervision of the Consumer Counsel. The Consumer Counsel shall be appointed by the Commission for a term of not less than 5 years, which term may be renewed at the discretion of the Commission.

`(b) FINDINGS- There is authorized to be appropriated in each fiscal year to the Office of Consumer Counsel $10,000,000, adjusted for inflation.

`(c) STAFFING- Staffing for the Office of Consumer Counsel may include attorneys, economists, utility analysts, engineers, human services experts, and other staff, professional and nonprofessional, and may include consultants to provide advice, analysis, testimony, and representation of the Consumer Counsel before the Commission.

`(d) DUTIES- The Consumer Counsel shall represent the energy using and consuming public in proceedings before the Commission that may affect wholesale or retail electric or gas service, prices, and practices. The Consumer Counsel may intervene in any proceeding under this Act.

`(e) REPORTS- The Consumer Counsel shall annually report to the Commission and the Congress on the impact of wholesale and retail deregulation in the electricity and gas industries on the using and consuming public, and on affordable access to such services, and shall make recommendations for policies to address such problems in these areas as the Consumer Counsel shall identify.

`(f) REMOVAL- The Consumer Counsel may be removed by the Commission for cause, after a hearing on any allegations giving rise to such cause.'.

SEC. 109. PROHIBITION OF POWER PLANT BAILOUTS.

(a) PROHIBITION- It shall be unlawful for any Federal or State authority to require consumers to subsidize, directly or indirectly, the costs of owning or operating any power plant owned by an investor-owned company.

(b) EXEMPTION- Subsection (a) shall not apply to any facility or power plant that qualifies for support from the National Electric Public Benefit Fund or that produces renewable energy credits.

(c) SAVINGS CLAUSE- Nothing in this section affects the rights and remedies of any party with respect to the purchase of electricity or capacity from or to a facility determined to be a qualifying small power production facility or a qualifying cogeneration facility under section 210 of the Public Utility Regulatory Policies Act of 1978 pursuant to any contract or obligation to purchase or to sell electricity or capacity, including the right to recover the costs of purchasing such electricity or capacity.

(d) ESCROW- On the effective date of this Act, every investor-owned company that holds a license to operate a nuclear reactor shall place in escrow $1,000,000,000 per reactor to cover costs for nuclear reactor decommissioning, $500,000,000 per reactor for low-level radioactive waste disposal, and $500,000,000 per reactor for high-level radioactive waste disposal.

SEC. 110. PROHIBITION OF AFFILIATE ABUSES AND CROSS-SUBSIDIES.

It shall be unlawful for any State-regulated investor-owned electric utility company, or associated holding company or any subsidiary thereof, to own directly or indirectly any voting security of any company that provides a nonregulated service, or that provides any type of service outside the United States, or to provide any nonregulated service.

SEC. 111. MERGERS.

(a) IN GENERAL- No transactions subject to section 203 of the Federal Power Act shall be deemed to be consistent with the public interest within the meaning of section 203 if the Commission finds that the transaction may create or maintain a situation inconsistent with the antitrust laws in any product and geographic market in which electricity or capacity is offered for sale to wholesale or retail customers in the form of--

(1) generation capacity;

(2) transmission capacity; or

(3) electricity.

(b) PROBABLE EFFICIENCIES- Probable efficiencies, including savings and benefits resulting from a merger, will not be weighed against the effects of a merger that may substantially lessen competition in any geographic market for electricity if such efficiencies could be achieved by means other than the merger.

(c) PLAN- Any claim by applicants that a merger will produce probable efficiencies, including benefits and savings, must be supported by a plan accounting for such efficiencies, and explaining how they will be allocated among the merging utilities wholesale, retail, and transmission customers.

(d) OPEN ACCESS- No merger of transmission-owning public utilities or disposition of transmission facilities shall be deemed to be consistent with the public interest within the meaning of section 203 of the Federal Power Act, unless the applicants agree to offer comparable open access transmission with single system pricing.

(e) REDUCTION OF TRANSMISSION CAPACITY- No transaction subject to section 203 of the Federal Power Act shall be deemed to be consistent with the public interest within the meaning of section 203 if it would result in a reduction of transmission capacity presently available for use by transmission customers.

(f) AUTHORIZATION- Section 203(a) of the Federal Power Act is amended by inserting after the first sentence the following: `It shall be unlawful for a holding company in a holding company system that includes an electric utility company to directly or indirectly purchase, acquire, or take any security of any electric utility company or of a holding company in a holding company system that includes an electric utility company, without first having secured an order of the Commission authorizing it to do so.'

SEC. 112. POLLUTION STANDARDS.

(a) DEFINITIONS- For purposes of this section:

(1) COVERED GENERATION FACILITY- The term `covered generation facility' means an electric generation facility with a nameplate capacity of 15 megawatts or greater that uses a combustion device or nuclear reactor to generate electricity for sale.

(2) COGENERATION- The term `cogeneration' means a process of simultaneously generating electricity and thermal energy in which a portion of the energy value of fuel consumed is recovered as heat that is used to meet heating or cooling loads outside the generation facility.

(3) POLLUTANT- The term `pollutant' means--

(A) nitrogen oxides;

(B) sulfur dioxide;

(C) carbon dioxide;

(D) mercury;

(E) high-level nuclear waste;

(F) low-level nuclear waste; or

(G) any other substance that the Administrator may identify by regulation as a substance the emission of which from a combustion device or nuclear reactor used in the generation of electricity endangers public health or welfare.

(b) NATIONWIDE POLLUTION STANDARDS-

(1) SCHEDULE- Not later than July 1, 2001, the Administrator shall promulgate a final regulation that establishes a schedule of limits on the amount of each pollutant that all covered generation facilities in the aggregate nationwide shall be permitted to pollute in each calendar year beginning in calendar year 2002.

(2) LIMIT- The nationwide pollution standard for calendar year 2005 and each year thereafter, unless otherwise specified, established under paragraph (1) shall be not greater than the following:

(A) For nitrogen oxides, 1,660,000 tons (which represents a 79 percent decrease from 1990 emissions of 7,500,000 tons, and is intended to result in an emission rate of 0.15 pounds of nitrogen oxides per million British thermal units of primary energy consumed to produce electricity).

(B) For sulfur dioxide, 3,580,000 tons (which represents a 77 percent decrease from 1990 emissions of 15,800,000 tons, and is intended to result in an emission rate of 0.30 pounds of sulfur dioxide per million British thermal units of primary energy consumed to produce electricity).

(C) For carbon dioxide, 1,710,000,000 tons (which represents a 10 percent decrease from 1990 emissions of 1,920,000,000 tons), decreasing each year after 2005 in equal increments to 1,425,000 tons by 2010 (which represents a 25 percent decrease from 1990 emissions), decreasing each year after 2010 in equal increments to 380,000,000 tons by 2030 (which represents an 80 percent decrease from 1990 emissions).

(D) For mercury, the Administrator shall determine a standard that allows for the elimination of mercury emissions by 2010.

(E) For high-level waste, the Administrator shall determine a standard that allows for the reduction of the production of radiation (in curies) by 5 percent from levels in 2000, and 2 percent for each year after 2005.

(F) For low-level nuclear waste, the Administrator shall determine a standard that allows for the reduction of the production of radiation (in curies) by 25 percent from levels in 2000, and 5 percent for each year after 2005.

(3) ADJUSTMENT- The Administrator may adjust the schedule established under paragraph (1), within the limits established by paragraph (2), if the Administrator determines that an adjustment would be in the best interests of the public health and welfare.

(c) GENERATION POLLUTION STANDARD-

(1) ANNUAL DETERMINATION-

(A) IN GENERAL- Not later than October 1 of each year, the Administrator, in consultation with the Commission, shall determine the generation pollution standard for nitrogen oxides, sulfur dioxide, carbon dioxide, and mercury pollution in pounds per kilowatt-hour of electric production by covered generation facilities for the next calendar year; and high-level nuclear waste in pounds per kilowatt-hour and curies per kilowatt-hour and low-level nuclear waste in cubic feet per kilowatt-hour and curies per kilowatt-hour of electric production by covered generation facilities for the next calendar year.

(B) METHOD- The Administrator shall determine by regulation the method to be used in determining an estimate under subparagraph (A).

(2) FORMULA- The generation pollution standard shall be determined by dividing the annual nationwide pollution standard as established under subsection (b) by the Administrator's estimate of the nationwide kilowatt-hour production for the next calendar year by all covered generation facilities.

(d) GENERATING PLANTS-

(1) IN GENERAL- The average rate of pollutants at any covered generation facility over any 30-day period shall not exceed the generation performance standard established under subsection (c).

(2) PENALTY- The owner or operator of a covered generation facility that emits in excess of the maximum emission rate established under this section shall be subject to a penalty of $100,000 per day for each day in which the average emission rate over any 30-day period exceeds the maximum emission rate.

(e) MONITORING-

(1) ESTABLISHMENT OF SYSTEM- The Administrator shall establish a system for the accurate monitoring of the amount of each pollutant that a covered generation facility emits during a year.

(2) REQUIREMENTS- The monitoring system under paragraph (1) shall require--

(A) installation on each covered generation facility of a continuous monitoring system for each pollutant; or

(B) use of an alternative mechanism that the Administrator determines will provide data with precision, reliability, accessibility, and timeliness that are equal to or greater than those that would be achieved by a continuous emissions monitoring system.

(f) POWERS- The Administrator may promulgate such regulations, conduct such investigations, and take such other actions as are necessary to appropriate to implement and obtain compliance with this section and regulations promulgated under this section.

SEC. 113. NATIONAL ELECTRIC PUBLIC BENEFIT BOARD.

(a) ESTABLISHMENT- The Secretary shall establish a National Electric Public Benefit Board to carry out the functions and responsibilities described in this section and in section 114.

(b) MEMBERSHIP- The Board shall be composed of--

(1) 1 representative of the Commission appointed by the Commission;

(2) 1 representative of the Secretary appointed by the Secretary;

(3) 1 representative appointed by the Secretary of the Department of Health and Human Services;

(4) 1 representative appointed by the Administrator of the Rural Utilities Service of the Department of Agriculture;

(5) 1 representative appointed by the Secretary of the Department of Housing and Urban Development;

(6) 1 representative appointed by the Secretary of the Department of Labor.

(7) 1 person nominated by the national organization representing State regulatory commissioners and appointed by the Secretary;

(8) 1 person nominated by the national organization representing State utility consumer advocates and appointed by the Secretary;

(9) 1 person nominated by the national organization representing State energy offices and appointed by the Secretary;

(10) 1 person nominated by the national organization representing energy assistance directors and appointed by the Secretary; and

(11) 1 representative of the Environmental Protection Agency appointed by the Administrator.

(c) CHAIRPERSON- The Secretary shall select a member of the Board to serve as Chairperson of the Board.

(d) MANAGER-

(1) APPOINTMENT- The Board shall by contract appoint a public benefits manager for a term of not more than 3 years, which term may be renewed by the Board.

(2) COMPENSATION- The compensation and other terms and conditions of employment of the manager shall be determined by a contract between the Board and the individual or the other entity appointed as manager.

(3) FUNCTIONS- The manager shall--

(A) monitor the amounts in the Fund;

(B) receive, review, and make recommendations to the Board regarding applications from States under subsection 5(b); and

(C) perform such other functions as the Board may require to assist the Board in carrying out its duties under this Act.

SEC. 114. NATIONAL ELECTRIC PUBLIC BENEFIT FUND.

(a) ESTABLISHMENT-

(1) IN GENERAL- The Board shall establish an account or accounts at 1 or more financial institutions, which account or accounts shall be known as the `National Electric Public Benefit Fund', consisting of amounts deposited in the fund under subsection (c).

(2) STATUS OF FUND- The wires charges collected under subsection (c) and deposited in the Fund--

(A) shall constitute electric system revenues and shall not constitute funds of the United States;

(B) shall be held in trust by the manager of the Fund solely for the purposes stated in subsection (b); and

(C) shall not be available to meet any obligations of the United States.

(b) USE OF FUND-

(1) FUNDING OF UNIVERSAL ELECTRIC SERVICE- One-third of the amount in the Fund shall be used by the Board to provide funds to States for the support of affordable electric service for low and moderate income residential customers.

(2) FUNDING OF OTHER PUBLIC PURPOSE PROGRAMS- The balance of the amounts in the Fund shall be used by the Board to provide matching funds to States for the support of State public purpose programs relating to--

(A) the impacts on employees and their communities of any necessary reductions in the utility workforce directly caused by electricity

deregulation. These impacts shall be mitigated to the extent practicable through such means as offers of voluntary severance, job retraining, early retirement, continued health care, outplacement and related benefits;

(B) renewable energy sources;

(C) energy conservation and efficiency; or

(D) research and development in areas described in subparagraphs (B) and (C).

(3) DISTRIBUTION-

(A) IN GENERAL- Except for amounts needed to pay costs of the Board in carrying out its duties under this section, the Board shall instruct the manager of the Fund to distribute all amounts in the Fund to States to fund public purpose programs under paragraphs (1) and (2).

(B) FUND SHARE; UNIVERSAL ELECTRIC SERVICE PROGRAMS- Funds for public purpose programs funded under paragraph (1) shall be distributed to the States in proportion to the State's relative share of the Nation's aggregate annual consumption of electricity by low- and moderate-income households.

(C) FUND SHARE; OTHER PUBLIC PURPOSE PROGRAMS-

(i) IN GENERAL- Subject to clause (iii), the Fund share of a public purpose program funded under paragraph (2) shall be 50 percent.

(ii) PROPORTIONATE REDUCTION- To the extent that the amount of matching funds requested by States for public purpose programs funded under paragraph (2) exceeds two-thirds of the maximum projected revenues of the Fund, the matching funds distributed to the States shall be reduced by an amount that is proportionate to each State's annual consumption of electricity compared to the Nation's aggregate annual consumption of electricity.

(iii) ADDITIONAL STATE FUNDING- A State may apply funds to public purpose programs funded under paragraph (2) in addition to the amount of funds applied for the purpose of matching the Fund share.

(4) PROGRAM CRITERIA; UNIVERSAL ELECTRIC SERVICE PROGRAMS-

(A) ADVANCE FUNDING FOR CERTIFIED PROGRAMS- States that implement programs conforming to the standards set forth in this section shall be eligible for advance funding of such programs. The Board shall annually certify to the Secretary the compliance of State programs with this section. The Secretary shall provide a mechanism to ensure that universal electric service is provided to qualifying low-income consumers in States that do not have a State program or whose State program does not qualify for funds under this section.

(B) UNIVERSAL ELECTRIC SERVICE PROGRAM CRITERIA- To be certified under this section, State programs must contain the following provisions:

(i) Be designed and implemented to reduce the basic electricity cost burden of a State's low-income households to no more than twice the burden of a national average of non-low-income households.

(ii) Target benefits to the most vulnerable households.

(iii) Be available to all households with annual incomes at or below 150 percent of the Federal poverty guidelines, or 60 percent of the median State income, but States may determine a higher income level as the cutoff for eligibility.

(iv) Set aside up to 30 percent of annual program funding for energy conservation and education programs providing direct efficiency services to qualifying low-income households.

(v) Reach the maximum eligible population, using the most cost-effective outreach and intake techniques.

(vi) Encourage, rather than discourage, energy conservation, and the prompt payment of bills.

(vii) Spend no more than 10 percent of program funds on administration of the program.

(viii) The program shall be coordinated with the delivery of low-income energy assistance and weatherization programs administered and/or funded by Federal, State, and local agencies, making use, to the fullest extent practicable, of existing community-based organizations who administer one or more fuel assistance and energy efficiency programs.

(ix) On an annual basis hold a public hearing on the design and implementation of such Universal Electric Service program.

(x) Provide intervenor funding to allow low-income consumers the opportunity to participate in State or Federal administrative proceedings establishing, monitoring, and overseeing the State restructuring plan.

(5) PROGRAM CRITERIA; OTHER PUBLIC PURPOSE PROGRAMS- The Board shall recommend eligibility criteria for public benefit programs funded under paragraph (2) for approval by the Secretary.

(6) APPLICATION- Not later than August 1 of each year, a State seeking funds under paragraph (1) or matching funds under paragraph (2) for the following year shall file with the Board, in such form as the Board may require, an application--

(A) certifying that the funds will be used for an eligible public purpose program; and specifying what funds are requested and for programs under which paragraph; and

(B) stating the amount of State funds earmarked for the programs, and to be used for any required matching.

(c) WIRES CHARGE-

(1) DETERMINATION OF NEEDED FUNDING- Not later than August 1 of each year, the Board shall determine and inform the Commission of the aggregate amount of wires charges that it will be necessary to have paid into the Fund to pay matching funds to States and pay the operating costs of the Board in the following year.

(2) IMPOSITION OF WIRES CHARGE-

(A) IN GENERAL- Not later than December 15 of each year, the Commission shall impose a nonbypassable wires charge to be paid directly into the Fund by the operator of the wire on electricity carried through the wire, this electricity to be measured as it exits the busbar at a generation facility, and which impacts on interstate commerce.

(B) AMOUNT- The wires charge shall be set at a rate equal to the greater of--

(i) 7 mills per kilowatt-hour; or

(ii) a rate that is estimated to result in the collection of an amount of wires charges that is as nearly as possible equal to the amount of needed funding determined under paragraph (1).

(3) DEPOSIT IN THE FUND- The wires charge shall be paid by the operator of the wire directly into the Fund at the end of each month during the calendar year for distribution by the public benefit manager.

(4) PENALTIES- The Commission shall assess against a wire operator that fails to pay a wires charge as required by this subsection a civil penalty in an amount equal to triple the amount of the unpaid wires charge.

(d) AUDITING-

(1) IN GENERAL- The Fund shall be audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards.

(2) ACCESS TO RECORDS- Representatives of the Secretary and the Commission shall have access to all books, accounts, reports, files, and other records pertaining to the Fund as necessary to facilitate and verify the audit.

(3) REPORTS-

(A) IN GENERAL- A report on each audit shall be submitted to the Secretary, the Commission, and the Secretary of the Treasury, who shall submit the report to the President and Congress not later than 180 days after the close of the fiscal year.

(B) REQUIREMENTS- An audit report shall--

(i) set forth the scope of the audit; and

(ii) include--

(I) a statement of assets and liabilities, capital, and surplus or deficit;

(II) a statement of surplus or deficit analysis;

(III) a statement of income and expenses;

(IV) any other information that may be considered necessary to keep the President and Congress informed of the operations and financial condition of the Fund; and

(V) any recommendations with respect to the Fund that the Secretary or the Commission may have.

SEC. 115. RENEWABLE ENERGY PORTFOLIO STANDARDS.

(a) MINIMUM RENEWABLE GENERATION REQUIREMENT- (1) By March 22 of each calendar year after 2000, each retail electricity supplier shall submit to the Secretary renewable energy credits in an amount equal to the required annual percentage of the supplier's total kilowatt-hour sales to end-use customers in the preceding calendar year.

(2) Nothing in this section shall be construed to prohibit any State from requiring additional renewable energy generation in that State under any program adopted by the State. A State may limit the benefits of any State renewable energy program to renewable energy generators located within the State's boundaries.

(b) REQUIRED ANNUAL PERCENTAGE- For end-use customer sales in calendar year 2000, the required annual percentage for each retail electricity supplier shall be set equal to the amount of renewable energy in the United States as of December 1997, and shall be known as the `baseline.' The Secretary shall establish this baseline by rule based on an advance registration process for renewable energy credits or by conducting a survey of renewable energy generation plants. Such baseline shall be established after notice and opportunity for hearing but not later than 180 days after the enactment of this Act. Thereafter the required annual percentage for each such supplier shall increase as set forth in the following table:

Minimum Percentage Increase (cumulative):

baseline plus 0.50%

baseline plus 1.00%

baseline plus 1.50%

baseline plus 2.00%

baseline plus 3.00%

baseline plus 4.00%

baseline plus 5.00%

baseline plus 6.00%

baseline plus 7.00%

baseline plus 8.00%

1.00% additional to the previous year

(c) SUBMISSION OF CREDITS- An electric generator may satisfy the requirements of subsection (a) through the submission, by March 22 of the year following each calendar year, of renewable energy credits issued by the Secretary under this section for renewable energy generated in such calendar year or the previous calendar year. A renewable energy credit that is submitted to the Secretary may not be used for any other purposes thereafter.

(d) ISSUANCE OF RENEWABLE ENERGY CREDITS-

(1) IN GENERAL- The Secretary shall establish, by rule after notice and opportunity for hearing but not later than 120 days after the enactment of this Act, a program to issue renewable energy credits to renewable energy electric generators that sell electricity to any other person. Renewable energy credits shall be identified by type of generation and State where the generator is located. Under such program, the Secretary shall issue one renewable energy credit to any person who generates and sells to any other person one kilowatt-hour of renewable energy net of any on-site consumption.

(2) FEES- The Secretary shall impose and collect a fee on electric generators awarded renewable energy credits in an amount equal to the reasonable costs of administering the Renewables Portfolio Standard program established under this section which shall be due at the time such credits are issued.

(3) PURPA CONTRACTS- In the case of renewable energy sold by the renewable energy electric generator at above-market rates to a State regulated electric utility under a contract entered into before the date of enactment of this Act that is subject to section 210 of the Public Utility Regulatory Policies Act of 1978, for the duration of such contract, the utility shall be treated for purposes of the other provisions of this section as the generator of such energy unless such generator and utility agree to terminate such contract prior to the expiration date set forth in the contract. The Secretary shall settle any disputes regarding the calculation of above-market rates as it pertains to this section.

(e) SALE OR EXCHANGE- Renewable energy credits may be sold or exchanged by the person to whom issued or by any other person who acquires the credit. A renewable energy credit generated in any year that is not used to satisfy the minimum renewable generation requirement of subsection (a) for that year may be carried forward for use in the following year, but may not be carried forward for use in any subsequent year.

(f) RULES AND REGULATIONS- (1) The Secretary shall promulgate such rules and regulations as may be necessary to carry out this section, including but not limited to such rules and regulations requiring the submission of such information as may be necessary to verify renewable energy generation by persons applying for renewable energy credits under subsection (d), total end-use customer sales of any person submitting renewable energy credits for compliance under subsection (a), and to validate the renewable energy credits submitted by any person to the Secretary.

(2) At the request of any State, the Secretary shall develop administrative procedures and promulgate additional rules and regulations as necessary to facilitate joint implementation of the national renewables portfolio standard and any renewables portfolio standard adopted by any State pursuant to subsection (a)(2).

(g) ANNUAL REPORTS- The Secretary shall gather available data and devise measures to gauge compliance with the requirements of this section and the success of the Renewables Portfolio Standard program established under this section. On an annual basis not later than May 31 of each year, the Secretary shall publish a report for the previous year that includes compliance data, program results, and steps taken to improve the program results.

(h) SUNSET- The requirements of this section shall cease to apply 90 days after the Secretary certifies in the annual report under subsection (g) that for the preceding year the market value of renewable energy credits or the number of credits traded or both has declined to such nominal levels that the administrative cost to implement the program is no longer justified.

(i) ENFORCEMENT- (1) The failure or refusal of any person to submit any required quantity of renewable energy credits shall be subject to a civil penalty of 3 times the estimated national average market value (as determined by the Secretary) for the calendar year concerned of such quantity of renewable energy credits. Any such penalty shall be due and payable without demand to the Secretary as provided in regulations to be issued by the Secretary pursuant to subsection (f). Any such payment shall be deposited in the United States Treasury pursuant to the Miscellaneous Receipts Act. Any penalty due and payable under this section shall not diminish the liability of the unit's owner or operator for any fine, penalty or assessment against the unit for the same violation under any other section of this Act.

(2) The Secretary shall bring an action in the appropriate United States district court to impose a civil penalty on any person who fails or refuses to comply with subsection (a) or who fails to pay such penalty.

SEC. 116. NET-METERING AND INTERCONNECTION STANDARDS.

The Public Utility Regulatory Policies Act of 1978 is amended by adding the following new section after section 604:

`SEC. 605. NET-METERING FOR RENEWABLE ENERGY.

`(a) DEFINITIONS- For purposes of this section:

`(1) The term `eligible on-site generating facility' means a facility on the site of an electric consumer with a peak generating capacity of 2 megawatts or less that is fueled solely by a renewable energy resource.

`(2) The term `renewable energy resource' means organic waste biomass (not including municipal solid waste of black liquor), dedicated biomass energy crops, landfill gas, geothermal, solar, or wind resources.

`(3) The term `net-metering service' means a service to an electricity consumer under which electricity generated by that consumer from an eligible on-site generating facility and delivered to the distribution system through the same meter through which purchased electricity is received may be used to offset electricity provided by the retail electricity supplier to the consumer during the applicable billing period so that a consumer is billed only for the net electricity consumed during the billing period. If the net electricity consumed is less than zero, then the consumer shall be paid during the next billing period the average spot market price for the electricity generated.

`(b) REQUIREMENT TO PROVIDE NET METERING SERVICE- Each retail electricity supplier shall make available upon request net metering service to any retail consumer whom the supplier currently serves or solicits for service.

`(c) REQUIREMENT TO PROVIDE INTERCONNECTION- A retail electricity distributor shall permit the interconnection to its distribution system of an on-site generating facility if the facility meets the safety and power quality standards established by the Commission.

`(d) RULES- The Commission shall prescribe safety and power quality standards and rules necessary to carry out this section. These standards and rules apply to any interconnections of an on-site generating facility with a distribution system, regardless of the size of the facility or the type of fuel used by the facility.'.

SEC. 117. CIVIL LIABILITY.

(a) LIABILITY- A person who fails to abide by the requirements of this Act with respect to any person is liable to such person in the amount of--

(1) any actual damage sustained by such person as a result of such failure;

(2) an amount not less than $100 nor more than $1,000 per violation; and

(3) in the case of any action to enforce this section, the costs of the action, together with reasonable attorneys fees as determined by the court.

(b) COURT ACTION- Any action under this section may be brought in any United States District Court, or in any other court of competent jurisdiction, within three years from the date of violation.

(c) ACTIONS TO ENFORCE- An action to enforce this Act may also be brought by any State Attorney General of any other agency responsible for its enforcement.

TITLE II--STATE STANDARDS FOR ELECTRICITY SERVICE

SEC. 201. RETAIL DEREGULATION.

(a) PRIOR DEREGULATION- If a State has enacted laws or regulations to deregulate retail sales of electricity prior to the effective date of this Act, a State shall meet the requirements of this title within 2 years after the effective date of this Act.

(b) FUTURE DEREGULATION- For States that continue to regulate retail sales of electricity for some or all retail customers after the effective date of this Act, a State shall meet the requirements of this title before enacting laws or regulations that deregulate retail sales of electricity for all retail customers.

SEC. 202. PROHIBITION OF COST SHIFTING.

(a) RATES- No class of consumers in a State shall be charged rates for transmission or distribution service (or other regulated services) in excess of the class's proportional responsibility for the costs of providing these services.

(b) RATE DIFFERENTIAL- On an annual basis, each State regulatory authority shall compute the rate differential for retail electric service between residential and industrial customers by comparing the total average residential rate and the total average industrial rate, based on monthly reports by suppliers to the State regulatory authority and the Energy Information Administration. As used in this subsection, `total average residential rate' means the total residential revenues divided by the total residential kilowatt-hour sales; `total average industrial rate' means the total industrial revenues divided by total industrial kilowatt-hour sales; and `rate differential' means the difference between the total average residential rate and the total average industrial rate, divided by the total average residential rate.

(c) THREE PERCENT DIFFERENTIAL- If the State regulatory authority determines that the rate differential for electric service between residential and industrial customers has increased by three percentage points or more from the rate differential that existed on the day before the State enacted laws or regulations to deregulate retail sales of electricity, the State regulatory authority shall order each distributor to increase the access charge per kilowatt-hour to all industrial customers, and to reduce the access charge per kilowatt-hour to all residential customers, so that the rate differential remains within three percentage points or less of the rate differential that existed on the day before the State enacted laws or regulations to deregulate retail sales of electricity.

SEC. 203. PROHIBITION OF AFFILIATE ABUSES AND CROSS-SUBSIDIES.

(a) TRANSFER OF ASSETS- A State's investor-owned utilities shall--

(1) transfer transmission assets to a regulated transmission company; and

(2) transfer the distribution assets to a regulated distribution company.

(b) DEFINITIONS- For the purposes of this section, the terms `transmission company' and `distribution company' mean transmission companies and distribution companies created to comply with subsection (a).

(c) PROHIBITION- It shall be unlawful for any person who owns directly or indirectly any voting security of any company that owns, operates, or leases generation facilities, or for any person who owns directly or indirectly any voting security of any company that sells electricity in wholesale or retail markets, to own directly or indirectly any portion of a transmission company or a distribution company.

(d) OFFICERS, DIRECTORS, EMPLOYEES- It shall be unlawful for any officer, director, or employee of a transmission company or a distribution company to have any affiliation with, or to own any security of any company, or any associated company thereof, that owns, operates, or leases generation facilities, or that sells electricity in wholesale or retail markets.

(e) OWNERSHIP OF SECURITIES- It shall be unlawful for any transmission company or any distribution company to own directly or indirectly any security of any other company.

(f) LOANS- It shall be unlawful for any transmission company or any distribution company to borrow from any company, or any associated or affiliated company thereof, that owns, operates, or leases generation facilities, or that sells electricity in wholesale or retail markets.

(g) LOANS FROM TRANSMISSION OR DISTRIBUTION COMPANIES- It shall be unlawful for any person to borrow from any transmission company or any distribution company.

(h) SERVICE, SALES, OR CONSTRUCTION CONTRACTS- It shall be unlawful for any transmission company or any distribution company to enter into any service, sales, or construction contract with any company, or any associated or affiliated company thereof, that owns, operates, or leases generation facilities, except for the provision of generation services that allow for the safe, reliable, and economical operation of a transmission system or a distribution system as determined through the use of the principles of distributed resources.

(i) USE OF NAMES, ETC- It shall be unlawful for any transmission company or any distribution company to use, or to resemble in anyway, the name, logo, service mark, trademark, or trade name of any company, or any associated company thereof, that owns, operates, or leases generation facilities, or that sells electricity in wholesale or retail markets.

(j) ADDITIONAL PROHIBITIONS- An investor-owned electric utility, a transmission company, and a distribution company--

(1) may not discriminate against any other person or company in the provision of goods, services, facilities, and information, or in the establishment of standards;

(2) shall provide all goods, services, facilities, or information, including marketing leads, to all other persons on reasonable and nondiscriminatory terms and conditions; and

(3) shall not provide, transfer, or permit the use of, or access to, tangible or intangible assets of the investor-owned electric utility, transmission company, or distribution company.

SEC. 204. PROHIBITION OF EXCESSIVE GENERATION MARKET POWER.

(a) IN GENERAL- It shall be unlawful for any investor-owned generation company, or associated holding company or subsidiary thereof, or an affiliated company, to own, operate, lease, or otherwise control more than 20 percent of the State's power plants within the following categories:

(1) Baseload power plants, defined as power plants with a capacity factor greater than or equal to 50 percent.

(2) Peaking power plants; defined as power plants with a capacity factor less than 50 percent.

(3) Power plants that primarily provide ancillary services, including without limitation, load-following, spinning reserve, replacement reserves, frequency regulation, and voltage regulation.

(b) LOAD POCKETS- If transmission constraints create load pockets within a State, then subsection (a) applies to the ownership, operation, or leasing of power plants located within each load pocket.

SEC. 205. BASIC SERVICE.

(a) IN GENERAL- A distributor shall arrange for the provision of basic service to any residential and small commercial customer who has not chosen a supplier after having been notified of their opportunity to do so, and those whose supplier has failed or refused to provide further service to the customer. A distributor may arrange for the provision of basic service to any other customer upon request and upon mutually agreeable terms. The distributor shall automatically provide basic service to any customer whose supplier has failed or refused to provide service to that customer unless the customer has given instructions to either disconnect service or switch to a different supplier.

(b) BIDS- The distributor shall annually solicit competitive bids for the provision of basic service from all suppliers licensed to do business in the State. If three or more suppliers submit proposals that meet the minimum terms contained in the bid document, the distributor shall accept the bid that best meets the terms of the bid requirements and offers the lowest price for electricity. If there are less than three suppliers submitting proposals meeting minimum terms, the State regulatory authority shall approve the price for basic service prior to the award of any bid by the distributor.

(c) TERMS- The distributor shall include the following terms in the solicitation for proposals for provision of basic service:

(1) The supplier shall provide customers with a choice between a price for electricity which does not vary by time of day or season and a price that varies by time of day and season.

(2) There shall be no administrative fee or extra charge for a customer to obtain basic service. There shall be no fee charged for any customer when the service is provided as a result of a supplier's failure or refusal to serve a customer.

(3) The current rules in effect governing credit and collection activities, deposits, disconnection, late fees, reconnection fees, winter disconnection rules or other restrictions on disconnection for vulnerable customers, payment arrangements, medical emergencies and other customer protections shall be applicable to basic service.

(4) The distributor shall bill and collect for basic service charges, and the supplier shall reimburse the distributor an agreed-upon amount to reflect the costs avoided by the supplier due to this arrangement. The costs of basic service in excess of the revenues received, including any costs incurred to collect overdue amounts, shall be included in the rates charged by the distributor to all its customers.

SEC. 206. AGGREGATION OF CONSUMERS.

(a) POWERS OF CONSUMERS- (1) A State shall allow consumers to establish options for nonprofit public aggregation. A State shall allow consumers to utilize a traditional public process at the local level to authorize public aggregation in the form of new municipal electric systems; franchise contracts; community choice aggregation; cooperative buying clubs in unincorporated areas.

(2) A State shall not diminish, restrict, or otherwise render ineffective the process or ability of consumers to establish or conduct public aggregation options. State agencies are to work cooperatively with local governments to enhance the process for carrying out the provisions of subsections (b), (c), (d), (e), (f), (g), and (h) below.

(b) MUNICIPALIZATION- A State shall facilitate the opportunities for consumers to establish new nonprofit municipal electric systems. Such facilitation shall include an arbitration process for asset valuation at original cost minus depreciation. Existing municipal electric systems

and existing rural electric cooperative systems, as self-regulated by consumers, are to be exempted from all provisions of this section.

(c) FRANCHISE CONTRACT- A State shall facilitate the ability of consumers to utilize local franchise powers. A State shall allow municipalities or counties that have granted franchises to utilities at a prior time, whether the term of such franchise has expired or remains in effect, to offer such franchise for competitive bidding and contract award, provided such measures are authorized by consumers in a public process. Such franchises may contain terms to address combined distribution and power supply, or any segment of operations for retail electricity service.

(d) COMMUNITY CHOICE AGGREGATION- A State shall allow consumers the option to establish nonfranchise aggregation of all consumers through their local government. Municipalities or counties shall be allowed to pass ordinances to undertake public aggregation of all classes of consumers, provided such measures are authorized by consumers in a public process. To accommodate those who may not wish to participate, at local discretion, the aggregation structure may include a process for individual consumers to `opt-out' during a defined time period. Community choice aggregation may address competitive bidding and contract award for power supply only, or additional services related to electric supply.

(e) BUYING COOPERATIVES IN UNINCORPORATED AREAS- Consumers in unincorporated areas without the benefit of organized local governments shall be allowed to combine their buying power in cooperative organizations; provided such organizations are nonprofit and nondiscriminatory.

(f) ENERGY EFFICIENCY FUNDS- If a State authorizes or mandates collection of funds for energy efficiency programs, consumers who establish aggregation through a public process can recover and utilize funds collected from consumers within the aggregated jurisdiction. A plan for utilization of such funds is to be prepared and subject to approval at the local level, then submitted to the appropriate State agency for review of consistency with State energy goals.

(g) RENEWABLE ENERGY FUNDS- If a State authorizes or mandates collection of funds for renewable energy education, support, or development, consumers who establish aggregation through a public process can recover and utilize funds collected from consumers within the aggregated jurisdiction. A plan for utilization of such funds is to be prepared and subject to approval at the local level, then submitted to the appropriate State agency for review of consistency with State energy goals.

(h) CONVERGENCE OF UTILITY SERVICES- If a State authorizes retail marketing of combined `wires' or energy services such as cable television, Internet, natural gas, electricity, telephone, and other related technologies, an entity established by consumers through a public process shall be allowed to combine any and all services deemed appropriate for provision to the aggregated consumers.

(i) FEDERAL POWER ACT JURISDICTION- No local government that aggregates electric load as described in subsection (d) shall be considered a utility engaging in the wholesale purchase and resale of electricity for purposes of the Federal Power Act. Supplying electricity to aggregated customers within the boundaries of a local government shall not be considered a wholesale transaction subject to the jurisdiction of the Federal Regulatory Commission under the Federal Power Act.

SEC. 207. WORKER PROTECTIONS.

(a) RECOVERY OF COSTS- Electric utilities shall be allowed to recover reasonable employee-related transition costs incurred and projected for programs that provide for offers of voluntary severance, job retraining, early retirement, continued health care, outplacement and related benefits. However, there shall be no recovery for employee-related transition costs associated with officers and senior supervisory employees performing predominantly regulatory functions.

(b) UNEMPLOYMENT BENEFITS- States should consider extended unemployment benefits to any employee of an electric utility company who is terminated through no fault of his own as a result of electricity deregulation and is otherwise eligible for unemployment benefits. No such employee shall be denied or be determined to be ineligible for any such benefits if the employer has provided notice of the cessation of employment.

(c) PLAN- Before any such reduction in the workforce, an electric utility shall present to its employees and their representatives a workforce reduction plan outlining the means by which the electric utility intends to mitigate the impact of such workforce reduction on its employees.

SEC. 208. LICENSING AND DISCLOSURE REQUIREMENTS FOR RETAIL SUPPLIERS.

(a) PURPOSE- The purpose of this section is to establish the jurisdiction of the State regulatory authority over retail electricity suppliers and to set forth the conditions under which such suppliers may obtain a license to sell retail electricity in a State.

(b) LICENSE- No retail electricity supplier shall engage in the business of the sale, marketing, brokering, or aggregating for the sale of electricity in a State without a valid license from the State regulatory authority. All retail electric suppliers who seek to do business in a State shall file an application with the State regulatory authority that includes the following information:

(1) Legal name.

(2) Business address.

(3) That State where incorporated; date or organization; copy of the articles of incorporation, association or other form of organization.

(4) Names and business address of all officers and directors, partners; or other similar officials.

(5) Name, title, and telephone number of customer service contact person.

(6) Name, title, and telephone number of regulatory contact person.

(7) Name, title, and address of registered agent in this State for service of process.

(8) Description of the nature of the business to be conducted, a map showing the geographic area of the supplier's intended marketing area, and a list of any restrictions on the type or number of customers the supplier will seek to serve.

(9) Evidence of the supplier's right, title, or interest in generation supplies sufficient to meet the existing and projected demands of its customers.

(10) A copy of the standard contract proposed to be used by the supplier for residential and small commercial customers.

(11) Whether the applicant or any member of its board of directors or officers have been or are the subject of State or Federal investigation, license revocation or lawsuit, and, if so, the identification of such States and proceedings.

(12) Proof of holding a bond or other evidence of insurance approved by the State regulatory authority in the amount reflecting number of customers served and the amount of electricity sold. The bond must be updated annually on the anniversary of the approval of the license, based on the supplier's average number of customers and the amount of electricity sold. The bond shall carry an endorsement that shall allow the issuer of the bond or insurer to pay such amounts and in such a manner as ordered by the State regulatory authority upon a finding of fraudulent conduct toward consumers, actions which cause the electricity supply system to become unreliable, revocation of the supplier's license, abandonment by the supplier, or, upon complaint, a failure to comply with the settlement's contract with the distributor. The State regulatory authority may order the bond proceeds to be paid to customers as restitution for fraudulent conduct, violation of State law or State regulatory authority rule, or to other individuals adversely affected by the supplier's conduct.

(c) APPROVAL- The application shall be deemed approved after 90 days, unless the State regulatory authority initiates an adjudicatory proceeding by public notice that states the reason(s) why there is reason to believe that the application should be denied. The applicant shall have an opportunity to correct any deficiency noted by the State regulatory authority in writing or request a public hearing. A failure to comply with the application requirements or evidence that indicates a pattern of violation of State or Federal consumer protection laws and rules, including antitrust laws and securities rules, shall be sufficient to deny an application. A license shall remain valid for a period of five years unless sooner revoked.

(d) CHARGES- After a license is issued, a retail electricity supplier must inform the State regulatory authority in writing of any substantial change in the information submitted to obtain a license from the State regulatory authority within ten days of the event. The failure to provide such information in a timely manner shall be grounds for revocation of the license.

(e) REVOCATION- The State regulatory authority may revoke a license for the retail sale of electricity for cause after opportunity for public hearing. The State regulatory authority may issue an order that prevents a supplier from marketing or signing up new customers during the pendency of an investigation or revocation proceedings when it finds that there is probable cause to believe that consumers will be harmed or that the reliability of the electricity supply of a State will be harmed by the actions of the supplier.

(f) OBLIGATIONS TO DISTRIBUTION COMPANIES- A retail electricity supplier shall enter into a contract with each distributor that services its customers. The contract shall describe the billing arrangements between the distributor and the supplier, how information concerning customer status will be transmitted between the two entities, whether and under what conditions upstream metering will occur to facilitate settlements of nonhourly metered customers and other settlement issues. The contract shall be filed with the State regulatory authority by the retail electric supplier prior to the commencement of business by the supplier in this State.

(g) DISCLOSURE OF UNIVERSAL SERVICE PROGRAMS- A retail electric supplier shall inform every prospective customer of the availability of universal service programs for qualified customers and how customers can apply for such programs. A summary of such programs shall be provided in writing within ten days of commencement of service for residential customers.

(h) STATE REGULATORY AUTHORITY ACCESS TO BOOKS AND RECORDS; INVESTIGATIONS; FINES- The State regulatory authority shall have access to a retail electric supplier's books and records concerning its business within this State upon reasonable notice in order to investigate, upon reasonable cause, any alleged violation of this Act. The supplier shall make such books and records available to the State regulatory authority within this State at a location convenient to both parties. Upon reasonable cause, the State regulatory authority may initiate an investigation of the supplier's business in this State for the purpose of determining compliance with any provision of this Act. Upon initiating such investigation, the State regulatory authority shall notify the supplier and other interested parties and take such steps as are necessary and proper to protect the confidentiality of information obtained from suppliers that would unfairly impact the supplier's ability to attract future sales of electricity in this State. The State regulatory authority shall offer the supplier an opportunity to respond and request a public hearing. Upon a finding that the supplier has violated one or more provisions of this Act, the State regulatory authority may issue such orders as necessary, pursue a revocation of the supplier's license, order restitution to specific customers, and assess fines according to section 216 of this Act.

SEC. 209. REGULATION OF DISTRIBUTION COMPANIES.

(a) DISTRIBUTION SYSTEM- The distributor shall be required to retain its monopoly role with respect to the construction and maintenance of the distribution system for all customers, installation of service and meter reading, billing of customers for distribution and transmission services, and provision of optional billing services under contract with retail electricity suppliers. The distributor shall provide access to the electric grid in a nondiscriminatory manner to customers, be subjected to regulation of the State regulatory authority for prices and the quality of its customer service, and undertake such additional obligations with respect to energy efficiency and universal access services as determined by the State regulatory authority. The purpose of this subsection is to supplement existing law and, where appropriate, substitute rights and

obligations for distribution companies in an electricity market characterized by retail deregulation.

(b) UNBUNDLED RATES- A distributor shall unbundle or separate its charges for distribution and transmission services into the following components:

(1) Transmission services.

(2) Distribution services, which shall include the costs associated with universal service programs and energy efficiency programs or expenses authorized by the State regulatory authority, bad debt and other expenses associated with consumer protection provisions.

(3) Charges for electricity supplied by a retail electricity supplier or basic service arranged by the distributor.

(c) CUSTOMER RIGHT OF ACCESS; DUTY OF DISTRIBUTOR- A distributor shall provide access to the electric grid in a nondiscriminatory manner to any person upon request. Any condition imposed by the distributor prior to providing access shall be contained in the company's terms and conditions subject to review by the State regulatory authority. The procedures adopted by the distributor to provide access to retail electric suppliers shall include the following requirements:

(1) A distributor must offer to enter into an agreement to govern metering, meter reading, transmittal of billing information or billing services, and settlement of accounts with any retail electric supplier licensed by the State regulatory authority. The retail supplier shall provide at least two weeks notice to the distributor of its intent to do business in the service territory of the distributor. The agreement between the distributor and the retail electric supplier must incorporate the provisions relating to the funding and delivery of basic service programs; implementation of the State regulatory authority's requirements relating to credit and collection; bill notification and disclosure requirements; and notification between customers, suppliers, and the distributor of intent to change suppliers or obtain reconnection and disconnection services. A copy of the agreement shall be filed with the State regulatory authority but shall not require State regulatory authority approval.

(2) No distributor shall discriminate against or show favor toward any retail electric suppliers in its communications or in its course of conduct with customers or retail electric suppliers.

SEC. 210. CHANGE OF SUPPLIER.

(a) IN GENERAL- A customer may change his or her electric supplier at any time, subject to any penalty set forth in the contract with the supplier. The distributor may charge a reasonable fee to make a change in the customer's supplier to reflect the actual cost to read the customer's meter and make changes in its billing records, except that every customer may seek to obtain basic service as described in section 205 without charge. When a fee is applicable, the distributor shall offer the customer the option to self-read the meter or provide a timely meter reading at a lower cost.

(b) NOTIFICATION- Except for the automatic provision of basic service, a distributor shall not change the identity of the customer's supplier if there is any reason to believe that the notification procedures of section 213 have been violated. Instead, the distributor shall take immediate steps to attempt to communicate directly with the customer.

(c) NOTICE PERIOD- A distributor may adopt a reasonable notice period to effectuate a customer's change of supplier, but this notice period shall not be greater than three business days. The distributor shall read the customer's meter or obtain a self-reading from the customer prior to recording a change in the customer's supplier.

(d) METER- Any change in the customer's supplier shall take effect at the time of the meter reading by the distributor, or, if an actual meter reading is not possible after reasonable efforts to obtain an actual or customer-supplied reading by the distributor, on midnight of the day that the change is implemented by the distributor in its records.

SEC. 211. DISTRIBUTION SERVICE DISCONNECTIONS AND SUPPLY TERMINATIONS.

(a) DISCONNECTION- All customers shall be protected from unreasonable distribution service disconnections and unreasonable supply terminations.

(b) DEFINITION- Unreasonable distribution service disconnection includes, without limitation, disconnection from access--

(1) for failure to pay a seller other than the seller of basic service; or

(2) in the case of qualified low-income households receiving basic service, before they--

(A) have been referred to social service agencies that can provide them with assistance; and

(B) have failed to pay under an extended payment agreement; or

(3) when such disconnection would be dangerous to the health or safety of a member of the household, including during the presence of infants, elders, disabled persons, and during risk of extreme weather conditions. For the purposes of this section, the term `infant' means any child under six years of age, the term `elder' means any person 60 years of age or older, and the term `disabled person' has the same meaning as provided in the Americans with Disabilities Act; or

(4) without contacting a third party designated by such household to receive notice of proposed service disconnection.

(c) PROHIBITION- A seller shall not disconnect or threaten to disconnect the customer's electric service or to terminate the customer's electricity supply for failure to pay for products or services other than electricity.

(d) PROTECTION- All customers shall be protected from unreasonable supply termination, including without limitation--

(1) termination before adequate notice is provided of the supplier's intent to terminate, and of the right to continue service via another supplier provider or through basic service; or

(2) when used as a mechanism for bill collection or during the pendency of a dispute regarding bill amount.

(e) NOTICE- A supplier may discontinue services to a customer who fails to pay or make a reasonable payment arrangement for an overdue amount in excess of $50 by giving notice to both the customer and the distributor. The notice shall be in writing and conspicuously disclose the amount overdue, what the customer must do to avoid discontinuance of service, how the customer can contact the supplier to negotiate terms to avoid disconnection, and how the customer can obtain basic service in place of further service from the supplier. The notice shall be mailed or delivered at least ten weekdays prior to disconnection of service. Once the due date has passed, the supplier may notify the distributor who shall change the customer's supplier upon proper notice from the customer or initiate basic service within three business days. The supplier's obligation to the distributor or network operator shall cease with the disconnection of service by the distributor, the initiation of basic service or the commencement of service to the customer by a different supplier, whichever comes first.

(f) TENANTS- A tenant whose landlord fails to pay for electric service shall not be disconnected from distribution service or from electricity supply. Where metering facilities exist, the tenant shall be offered an opportunity to put service, including basic service, in his or her name. In addition to any other remedy authorized by law, a retail supplier and distributor may file a lien on the property of any owner of a multi-unit, single-metered building for failure to pay for electricity services. This lien shall be filed in the same manner and perfected with the same procedures as those available to towns and cities for the collection of unpaid property taxes and sewer charges.

(g) PHYSICIANS- The distributor shall notify all its customers of the right to have a registered physician declare a medical emergency in the household and avoid disconnection for a period not to exceed 90 days. If a distributor receives such a declaration, it shall promptly notify the customer's supplier. Upon receipt of a declaration of medical emergency, a retail supplier shall not disconnect the customer. During this time period the customer may request basic service or continue with service from his or her retail supplier. During this time period the customer may not be threatened with disconnection and the supplier and distributor shall accept less than payment in full. The customer shall remain liable for all unpaid amounts. At the end of a maximum period of 90 days, the customer shall either resume regular payments or pay the overdue amount in full to avoid disconnection.

SEC. 212. CREDIT AND COLLECTION PRACTICES.

(a) STATE REGULATIONS- A State authority's current credit and collection regulations shall remain in effect to govern the actions of a distributor with regard to basic service and the billing and collection of distribution and transmission services provided by the distributor and other companies.

(b) BILLING AND COLLECTION- The following provisions apply to the billing and collection for the sales of electricity by retail suppliers and the billing and collection for sales of electricity by distributors under contract with suppliers:

(1) A distributor that offers to bill for suppliers shall allocate a customer's partial payment first to services regulated by the State regulatory authority, including without limitation, distribution and transmission services, and then to the unregulated portion of the bill. For purposes of this paragraph, the term `services regulated by the State regulatory authority' includes energy management and efficiency services provided to the customer pursuant to an order of a State regulatory authority and billed by the distributor.

(2) A retail supplier shall not refuse to grant credit to any applicant based on a prohibited basis contained in the Federal Equal Credit Opportunity Act, 15 U.S.C. 1691-1691f.

(3) Any deposit required by a retail supplier shall not exceed the applicant's estimated bill for a two-month period. The State regulatory authority may waive the supplier's right to a deposit in any case in which it finds that the supplier has discriminated in its request for a deposit from an applicant. The State regulatory authority may take into account the supplier's written credit and collection procedures and their application in making this decision. A request for a deposit shall be in writing and inform the applicant of the reason for the request, the source of the information that led to the request, the amount, the applicant's payment options, and how the applicant can have the deposit refunded.

(4) A retail supplier may charge a late fee if a customer's payment is paid after the due date on the customer's bill. The amount of the late fee shall not exceed customary business practice for consumer goods.

SEC. 213. UNFAIR TRADE PRACTICES.

The following specific practices shall be prohibited:

(1) CRAMMING AND SLAMMING- No electric utility, distributor, supplier, or any person, firm, corporation, or governmental entity shall make any change to the number of products or services offered (cramming) or authorize a different supplier for any residential or small commercial customer (slamming) until the change has been confirmed by an independent third-party verification company, as follows:

(A) The third-party verification company shall meet each of the following criteria:

(i) Be independent from the entity that seeks to provide the new service.

(ii) Not be directly or indirectly managed, controlled, directed, or owned, wholly or in part, by an entity that seeks to provide the new service or by any corporation, firm, or person who directly or indirectly manages, controls, or directs or owns more than 5 percent of the entity.

(iii) Operate from facilities physically separate from those of the entity that seeks to provide the new service.

(iv) Not derive commissions or compensation based upon the number of sales confirmed.

(B) The entity seeking to verify the sale shall do so by connecting the customer by telephone to the third-party verification company or by arranging for the third-party verification company to call the customer to confirm the sale.

(C) The third-party verification company shall obtain the resident's oral confirmation regarding the change and shall record that confirmation by obtaining appropriate verification data. The record shall be available to the customer upon request. Information obtained from the customer through confirmation shall not be used for marketing purposes. Any unauthorized release of this information is grounds for a civil suit by the aggrieved customer against the entity or its employees who are responsible for the violation.

(D) Notwithstanding subparagraphs (A), (B), and (C), a supplier shall not be required to comply with these provisions when the customer directly calls the supplier to make changes in products, services, or suppliers. However, a supplier shall not avoid the verification requirements by asking a customer to contact a supplier directly to make any change in products, services, or the supplier. A supplier shall be required to comply with these verification requirements for its own products or services. However, a supplier shall not be required to perform any verification requirements for any changes solicited by another supplier.

(2) GIFTS- A supplier shall not provide a gift or inducement to a residential or small commercial customer with a value in excess of $50 or provide any gift or inducement more than once per 12-month period to the same household or small business.

(3) ADVERTISING- A supplier shall not advertise or disclose the price of electricity in such a manner as to mislead a reasonable person into believing that this portion of the bill will be the total bill amount for the delivery of electricity to the customer's location. When advertising or disclosing the price for electricity, the supplier shall also disclose the distributor's average current charges (including transmission charges) for that customer class as approved by the State regulatory authority.

(4) CANCELLATION- In addition to any other right to revoke an offer, residential and small commercial customers have the right to cancel a contract without fee or penalty for electric service until midnight of the twentieth business day after the day on which the buyer receives a written confirmation of the agreement to purchase such service. Cancellation occurs when the buyer gives written notice of cancellation to the seller at the address specified in the agreement or offer. Notice of cancellation, if given by mail, is effective when deposited in the mail properly addressed with postage prepaid. Notice of cancellation given by the buyer need not take the particular form as provided with the contract or offer to purchase and, however expressed, is effective if it indicates the intention of the buyer not to be bound by the contract.

SEC. 214. METERS.

(a) STANDARD METERS- A distributor shall continue its obligation to furnish a standard meter to any residential and small commercial applicant for service at a previously unserved location without separate charge.

(b) INSTALLATION OF DIFFERENT METERS- A customer may install a different meter if it meets the technical qualifications and installation specifications established by the distributor. The distributor may adopt reasonable procedures to assure compliance with its technical qualifications and installation specifications and shall inform its customers of these requirements promptly upon request.

(c) PRICE VARIATIONS- A supplier may vary the price of electricity based on the type and capacity of the installed meter to record hourly or seasonal prices. A supplier's terms may include a requirement that a customer with a nonhourly meter pay a separate fee or penalty if the customer cancels a contract during certain times of the year or without specified notice to the supplier.

(d) SALE OR LEASE OF DIFFERENT METERS- A supplier may offer to sell or lease a different meter and to bill and collect separately for the meter on the electric bill issued by a supplier or distributor.

(e) LOAD CURVES- As a condition of offering electricity for sale within a territory served by a distributor, a supplier must enter into an agreement with the party responsible for settlement of network operations. These agreements must allow for the use of average load shape curves to bill and pay for the use of electricity by customers without hourly-metered consumption. The average curves shall be calculated at least four times per calendar year for each supplier's customers without hourly meters.

(f) PAYMENT PRIOR TO DELIVERY- It shall be unlawful to use or to require the use of a prepayment meter, service limiter, or other device or program that requires cash payment prior to the delivery of the service.

SEC. 215. EXEMPTION RESCINDED FROM EQUAL CREDIT OPPORTUNITY ACT.

The regulations implementing the Equal Credit Opportunity Act (15 U.S.C sections 1691-1691(f)) exempting regulated utilities from application of certain provisions of that Act, shall not apply to transactions concerning the sale of services in a deregulated market.

SEC. 216. CONSUMER REMEDIES.

(a) IN GENERAL- A consumer damaged by a violation of this section by an entity offering retail electricity service is entitled to recover all of the following:

(1) Actual damages.

(2) The consumer's attorney's fees and court costs.

(3) Exemplary damages, in the amount the court deems proper, for intentional or willful violations.

(4) Equitable relief as the court deems proper.

(b) OTHER RIGHTS- The rights, remedies and penalties established by this section are in addition to the rights, remedies or penalties established under any other law.

END