S.2570 - A bill to provide for the fair and equitable treatment of the Tennessee Valley Authority and its ratepayers in the event of restructuring of the electric utility industry.106th Congress (1999-2000)
|Sponsor:||Sen. Frist, William H. [R-TN] (Introduced 05/16/2000)|
|Committees:||Senate - Environment and Public Works|
|Latest Action:||Senate - 05/16/2000 Read twice and referred to the Committee on Environment and Public Works. (text of measure as introduced: CR S4021-4023) (All Actions)|
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Summary: S.2570 — 106th Congress (1999-2000)All Information (Except Text)
Amends the Federal Power Act (FPA) to repeal: (1) hearing, notice and review requirements relating to interconnection or wheeling orders to determine whether they would result in illegal electric power sales or delivery outside the Tennessee Valley Region; and (2) certain requirements for equitability within territory restricted electric systems (transmission within the Tennessee Valley Region).
Introduced in Senate (05/16/2000)
(Sec. 2) Amends the Tennessee Valley Authority Act of 1933 to repeal restrictions placed upon the Tennessee Valley Authority (TVA) to sell or deliver power beyond the area for which it was the primary source of power on July 1, 1957.
(Sec. 3) Authorizes TVA to sell electric power at retail to electric consumers that either already have a contract with TVA or consume the electric power within a distributor service area in which a non-TVA regulatory authority permits other suppliers to sell electric power to retail consumers. Waives application of certain requirements to any TVA sale of excess electric power for use outside the Tennessee Valley Region.
(Sec. 4) Requires TVA to furnish distributors with detailed information on plans and projections for the potential acquisition of new electric generating facilities and to grant them notice and opportunity to comment.
(Sec. 5) Directs TVA and its distributors make good faith efforts to renegotiate existing long-term contracts. Prescribes guidelines for a distributor, in the event negotiations fail, to: (1) terminate the existing contract to purchase wholsesale electric energy from TVA; or (2) reduce the quantity of wholesale power requirements under the existing contract by up to ten percent. Prohibits TVA from discriminating unduly against a distributor for exercising such rights or for being a partial requirements customer.
(Sec. 6) Subjects TVA transmission and local distribution of electric power to FPA jurisdiction to the same extent as a public utility transmission of electric power in interstate commerce is subject to such jurisdiction.
(Sec. 7) Permits a distributor to elect to avoid certain TVA regulatory authority regarding certain future TVA wholesale electric power sales.
Replaces TVA regulatory authority over distributors with that of the distributor's own governing body.
Amends the Public Utilities Regulatory Policies Act to redefine "State regulatory authority" so as to remove TVA as a State agency with ratemaking authority over sales of electric energy by any electric utility.
(Sec. 8) Prescribes procedural guidelines for Federal Energy Regulatory Commission (FERC) approval of TVA plans for recovery of its stranded costs. Authorizes TVA to recover wholesale stranded costs that may arise from renegotiation of power contracts with distributors to the extent authorized by FERC. Prohibits recovery of any such costs related to loss of sales revenues. Bars TVA use of such recovered proceeds to pay for additions to TVA generating capacity. Requires TVA stranded cost recovery charges to be stated separately on customer billing.
Mandates that the annual TVA management report to Congress include: (1) long-range financial plans; (2) source of funds used for TVA capacity additions; and (3) reduction of publicly-held TVA debt.
(Sec. 9) Subjects TVA to Federal antitrust jurisdiction with respect to its electric power and transmission systems.