[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1111 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1111
To provide equal treatment for utility special entities using utility
operations-related swaps, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 28, 2015
Mr. Donnelly (for himself and Mr. Inhofe) introduced the following
bill; which was read twice and referred to the Committee on
Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To provide equal treatment for utility special entities using utility
operations-related swaps, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Public Power Risk Management Act of
2015''.
SEC. 2. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES.
Section 1a(49) of the Commodity Exchange Act (7 U.S.C. 1a(49)) is
amended by adding at the end the following:
``(E) Certain transactions with a utility special
entity.--
``(i) Transactions in utility operations-
related swaps shall be reported pursuant to
section 4r.
``(ii) In making a determination to exempt
pursuant to subparagraph (D), the Commission
shall treat a utility operations-related swap
entered into with a utility special entity, as
defined in section 4s(h)(2)(D), as if it were
entered into with an entity that is not a
special entity, as defined in section
4s(h)(2)(C).''.
SEC. 3. UTILITY SPECIAL ENTITY DEFINED.
Section 4s(h)(2) of the Commodity Exchange Act (7 U.S.C. 6s(h)(2))
is amended by adding at the end the following:
``(D) Utility special entity.--For purposes of this
Act, the term `utility special entity' means a special
entity, or any instrumentality, department, or
corporation of or established by a State or political
subdivision of a State, that--
``(i) owns or operates, or anticipates
owning or operating, an electric or natural gas
facility or an electric or natural gas
operation;
``(ii) supplies, or anticipates supplying,
natural gas or electric energy to another
utility special entity;
``(iii) has, or anticipates having, public
service obligations under Federal, State, or
local law or regulation to deliver electric
energy or natural gas service to customers; or
``(iv) is a Federal power marketing agency,
as defined in section 3 of the Federal Power
Act.''.
SEC. 4. UTILITY OPERATIONS-RELATED SWAP.
(a) Swap Further Defined.--Section 1a(47)(A)(iii) of the Commodity
Exchange Act (7 U.S.C. 1a(47)(A)(iii)) is amended--
(1) by striking ``and'' at the end of subclause (XXI);
(2) by adding ``and'' at the end of subclause (XXII); and
(3) by adding at the end the following:
``(XXIII) a utility operations-
related swap;''.
(b) Utility Operations-Related Swap Defined.--Section 1a of such
Act (7 U.S.C. 1a) is amended by adding at the end the following:
``(52) Utility operations-related swap.--The term `utility
operations-related swap' means a swap that--
``(A) is entered into to hedge or mitigate a
commercial risk;
``(B) is not a contract, agreement, or transaction
based on, derived on, or referencing--
``(i) an interest rate, credit, equity, or
currency asset class;
``(ii) except as used as fuel for electric
energy generation, a metal, agricultural
commodity, or crude oil or gasoline commodity
of any grade; or
``(iii) any other commodity or category of
commodities identified for this purpose in a
rule or order adopted by the Commission in
consultation with the appropriate Federal and
State regulatory commissions; and
``(C) is associated with--
``(i) the generation, production, purchase,
or sale of natural gas or electric energy, the
supply of natural gas or electric energy to a
utility, or the delivery of natural gas or
electric energy service to utility customers;
``(ii) fuel supply for the facilities or
operations of a utility;
``(iii) compliance with an electric system
reliability obligation;
``(iv) compliance with an energy, energy
efficiency, conservation, or renewable energy
or environmental statute, regulation, or
government order applicable to a utility; or
``(v) any other electric energy or natural
gas swap to which a utility is a party.''.
<all>