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H.R.4
Energy Policy Act of 2002 (Engrossed Amendment as Agreed to by
Senate)
Subtitle C--Amendments to the Public Utility Regulatory Policies Act
of 1978
SEC. 241. REAL-TIME PRICING AND TIME-OF-USE METERING
STANDARDS.
(a) ADOPTION OF STANDARDS- Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at
the end the following:
`(11) REAL-TIME PRICING- (A) Each electric utility shall, at the
request of an electric consumer, provide electric service under a real-time
rate schedule, under which the rate charged by the electric utility varies
by the hour (or smaller time interval) according to changes in the electric
utility's wholesale power cost. The real-time pricing service shall enable
the electric consumer to manage energy use and cost through real-time
metering and communications technology.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standard set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.
`(12) TIME-OF-USE METERING- (A) Each electric utility shall, at the
request of an electric consumer, provide electric service under a
time-of-use rate schedule which enables the electric consumer to manage
energy use and cost through time-of-use metering and technology.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standards set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.'.
(b) SPECIAL RULES- Section 115 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end the
following:
`(i) REAL-TIME PRICING- In a State that permits third-party marketers
to sell electric energy to retail electric consumers, the electric consumer
shall be entitled to receive the same real-time metering and communication
service as a direct retail electric consumer of the electric utility.
`(j) TIME-OF-USE METERING- In a State that permits third-party
marketers to sell electric energy to retail electric consumers, the electric
consumer shall be entitled to receive the same time-of-use metering and
communication service as a direct retail electric consumer of the electric
utility.'.
SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.
(a) ADOPTION OF STANDARDS- Section 113(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by adding at
the end the following:
`(6) DISTRIBUTED GENERATION- Each electric utility shall provide
distributed generation, combined heat and power, and district heating and
cooling systems competitive access to the local distribution grid and
competitive pricing of service, and shall use simplified standard contracts
for the interconnection of generating facilities that have a power
production capacity of 250 kilowatts or less.
`(7) DISTRIBUTION INTERCONNECTIONS- No electric utility may refuse
to interconnect a generating facility with the distribution facilities of
the electric utility if the owner or operator of the generating facility
complies with technical standards adopted by the State regulatory authority
and agrees to pay the costs established by such State regulatory
authority.
`(8) MINIMUM FUEL AND TECHNOLOGY DIVERSITY STANDARD- Each electric
utility shall develop a plan to minimize dependence on one fuel source and
to ensure that the electric energy it sells to consumers is generated using
a diverse range of fuels and technologies, including renewable
technologies.
`(9) FOSSIL FUEL EFFICIENCY- Each electric utility shall develop and
implement a ten-year plan to increase the efficiency of its fossil fuel
generation and shall monitor and report to its State regulatory authority
excessive greenhouse gas emissions resulting from the inefficient operation
of its fossil fuel generating plants.'.
(b) TIME FOR ADOPTING STANDARDS- Section 113 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by adding
at the end the following:
`(d) SPECIAL RULE- For purposes of implementing paragraphs (6), (7),
(8), and (9) of subsection (b), any reference contained in this section to the
date of enactment of the Public Utility Regulatory Policies Act of 1978 shall
be deemed to be a reference to the date of enactment of this
subsection.'.
SEC. 243. TECHNICAL ASSISTANCE.
Section 132(c) of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2642(c)) is amended to read as follows:
`(c) TECHNICAL ASSISTANCE FOR CERTAIN RESPONSIBILITIES- The Secretary
may provide such technical assistance as he determines appropriate to assist
State regulatory authorities and electric utilities in carrying out their
responsibilities under section 111(d)(11) and paragraphs (6), (7), (8), and
(9) of section 113(b).'.
SEC. 244. COGENERATION AND
SMALL POWER PRODUCTION PURCHASE AND SALE REQUIREMENTS.
(a) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS- Section
210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a-3)
is amended by adding at the end the following:
`(m) TERMINATION OF MANDATORY PURCHASE AND SALE REQUIREMENTS-
`(1) OBLIGATION TO PURCHASE- After the date of enactment of this
subsection, no electric utility shall be required to enter into a new
contract or obligation to purchase electric energy from a qualifying cogeneration facility or a
qualifying small power production facility under this section if the
Commission finds that the qualifying cogeneration facility or qualifying
small power production facility has access to independently administered,
auction-based day ahead and real time wholesale markets for the sale of
electric energy.
`(2) OBLIGATION TO SELL- After the date of enactment of this
subsection, no electric utility shall be required to enter into a new
contract or obligation to sell electric energy to a qualifying cogeneration facility or a
qualifying small power production facility under this section if competing
retail electric suppliers are able to provide electric energy to the
qualifying cogeneration
facility or qualifying small power production facility.
`(3) NO EFFECT ON EXISTING RIGHTS AND REMEDIES- Nothing in this
subsection affects the rights or remedies of any party under any contract or
obligation, in effect on the date of enactment of this subsection, to
purchase electric energy or capacity from or to sell electric energy or
capacity to a facility under this Act (including the right to recover costs
of purchasing electric energy or capacity).
`(A) REGULATION - To
ensure recovery by an electric utility that purchases electric energy or
capacity from a qualifying facility pursuant to any legally enforceable
obligation entered into or imposed under this section before the date of
enactment of this subsection, of all prudently incurred costs associated
with the purchases, the Commission shall issue and enforce such
regulations as may be required to ensure that the electric utility shall
collect the prudently incurred costs associated with such
purchases.
`(B) ENFORCEMENT- A regulation under subparagraph (A)
shall be enforceable in accordance with the provisions of law applicable
to enforcement of regulations under the Federal Power Act (16 U.S.C. 791a
et seq.).'.
(b) ELIMINATION OF OWNERSHIP LIMITATIONS-
(1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 796(17)(C))
is amended to read as follows:
`(C) `qualifying small power production facility' means a small
power production facility that the Commission determines, by rule, meets
such requirements (including requirements respecting minimum size, fuel
use, and fuel efficiency) as the Commission may, by rule,
prescribe.'.
(2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 796(18)(B))
is amended to read as follows:
`(B) `qualifying cogeneration facility' means a cogeneration facility that the
Commission determines, by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and fuel efficiency) as the
Commission may, by rule, prescribe.'.
SEC. 245. NET METERING.
(a) ADOPTION OF STANDARD- Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is further amended by
adding at the end the following:
`(13) NET METERING- (A) Each electric utility shall make available
upon request net metering service to any electric consumer that the electric
utility serves.
`(B) For purposes of implementing this paragraph, any reference
contained in this section to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a reference to the
date of enactment of this paragraph.
`(C) Notwithstanding subsections (b) and (c) of section 112, each
State regulatory authority shall consider and make a determination
concerning whether it is appropriate to implement the standard set out in
subparagraph (A) not later than 1 year after the date of enactment of this
paragraph.'.
(b) SPECIAL RULES FOR NET METERING- Section 115 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2625) is further amended by adding
at the end the following:
`(1) RATES AND CHARGES- An electric utility--
`(A) shall charge the owner or operator of an on-site generating
facility rates and charges that are identical to those that would be
charged other electric consumers of the electric utility in the same rate
class; and
`(B) shall not charge the owner or operator of an on-site
generating facility any additional standby, capacity, interconnection, or
other rate or charge.
`(2) MEASUREMENT- An electric utility that sells electric energy to
the owner or operator of an on-site generating facility shall measure the
quantity of electric energy produced by the on-site facility and the
quantity of electric energy consumed by the owner or operator of an on-site
generating facility during a billing period in accordance with normal
metering practices.
`(3) ELECTRIC ENERGY SUPPLIED EXCEEDING ELECTRIC ENERGY GENERATED-
If the quantity of electric energy sold by the electric utility to an
on-site generating facility exceeds the quantity of electric energy supplied
by the on-site generating facility to the electric utility during the
billing period, the electric utility may bill the owner or operator for the
net quantity of electric energy sold, in accordance with normal metering
practices.
`(4) ELECTRIC ENERGY GENERATED EXCEEDING ELECTRIC ENERGY SUPPLIED-
If the quantity of electric energy supplied by the on-site generating
facility to the electric utility exceeds the quantity of electric energy
sold by the electric utility to the on-site generating facility during the
billing period--
`(A) the electric utility may bill the owner or operator of the
on-site generating facility for the appropriate charges for the billing
period in accordance with paragraph (2); and
`(B) the owner or operator of the on-site generating facility
shall be credited for the excess kilowatt-hours generated during the
billing period, with the kilowatt-hour credit appearing on the bill for
the following billing period.
`(5) SAFETY AND PERFORMANCE STANDARDS- An eligible on-site
generating facility and net metering system used by an electric consumer
shall meet all applicable safety, performance, reliability, and
interconnection standards established by the National Electrical Code, the
Institute of Electrical and Electronics Engineers, and Underwriters
Laboratories.
`(6) ADDITIONAL CONTROL AND TESTING REQUIREMENTS- The Commission,
after consultation with State regulatory authorities and nonregulated
electric utilities and after notice and opportunity for comment, may adopt,
by rule, additional control and testing requirements for on-site generating
facilities and net metering systems that the Commission determines are
necessary to protect public safety and system reliability.
`(7) DEFINITIONS- For purposes of this subsection:
`(A) The term `eligible on-site generating facility'
means--
`(i) a facility on the site of a residential electric consumer
with a maximum generating capacity of 10 kilowatts or less that is
fueled by solar energy, wind energy, or fuel cells; or
`(ii) a facility on the site of a commercial electric consumer
with a maximum generating capacity of 500 kilowatts or less that is
fueled solely by a renewable energy resource, landfill gas, or a high
efficiency system.
`(B) The term `renewable energy resource' means solar, wind,
biomass, or geothermal energy.
`(C) The term `high efficiency system' means fuel cells or
combined heat and power.
`(D) The term `net metering service' means service to an electric
consumer under which electric energy generated by that electric consumer
from an eligible on-site generating facility and delivered to the local
distribution facilities may be used to offset electric energy provided by
the electric utility to the electric consumer during the applicable
billing period.'.
Subtitle D--Consumer Protections
SEC. 251. INFORMATION DISCLOSURE.
(a) OFFERS AND SOLICITATIONS- The Federal Trade Commission shall issue
rules requiring each electric utility that makes an offer to sell electric
energy, or solicits electric consumers to purchase electric energy to provide
the electric consumer a statement containing the following
information--
(1) the nature of the service being offered, including information
about interruptibility of service;
(2) the price of the electric energy, including a description of any
variable charges;
(3) a description of all other charges associated with the service
being offered, including access charges, exit charges, back-up service
charges, stranded cost recovery charges, and customer service charges;
and
(4) information the Federal Trade Commission determines is
technologically and economically feasible to provide, is of assistance to
electric consumers in making purchasing decisions, and concerns--
(A) the product or its price;
(B) the share of electric energy that is generated by each fuel
type; and
(C) the environmental emissions produced in generating the
electric energy.
(b) PERIODIC BILLINGS- The Federal Trade Commission shall issue rules
requiring any electric utility that sells electric energy to transmit to each
of its electric consumers, in addition to the information transmitted pursuant
to section 115(f) of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2625(f)), a clear and concise statement containing the information
described in subsection (a)(4) for each billing period (unless such
information is not reasonably ascertainable by the electric utility).
SEC. 252. CONSUMER PRIVACY.
(a) PROHIBITION- The Federal Trade Commission shall issue rules
prohibiting any electric utility that obtains consumer information in
connection with the sale or delivery of electric energy to an electric
consumer from using, disclosing, or permitting access to such information
unless the electric consumer to whom such information relates provides prior
written approval.
(b) PERMITTED USE- The rules issued under this section shall not
prohibit any electric utility from using, disclosing, or permitting access to
consumer information referred to in subsection (a) for any of the following
purposes--
(1) to facilitate an electric consumer's change in selection of an
electric utility under procedures approved by the State or State regulatory
authority;
(2) to initiate, render, bill, or collect for the sale or delivery
of electric energy to electric consumers or for related services;
(3) to protect the rights or property of the person obtaining such
information;
(4) to protect retail electric consumers from fraud, abuse, and
unlawful subscription in the sale or delivery of electric energy to such
consumers;
(5) for law enforcement purposes; or
(6) for purposes of compliance with any Federal, State, or local law
or regulation authorizing
disclosure of information to a Federal, State, or local agency.
(c) AGGREGATE CONSUMER INFORMATION- The rules issued under this
subsection may permit a person to use, disclose, and permit access to
aggregate consumer information and may require an electric utility to make
such information available to other electric utilities upon request and
payment of a reasonable fee.
(d) DEFINITIONS- As used in this section:
(1) The term `aggregate consumer information' means collective data
that relates to a group or category of retail electric consumers, from which
individual consumer identities and characteristics have been
removed.
(2) The term `consumer information' means information that relates
to the quantity, technical configuration, type, destination, or amount of
use of electric energy delivered to any retail electric consumer.
SEC. 253. OFFICE OF CONSUMER ADVOCACY.
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