Power Plant Reliability Act

Summary#

This bill replaces and expands Section 207 of the Federal Power Act. It directs the Federal Energy Regulatory Commission (the Commission) to act when a State commission or a Transmission Organization files a complaint that interstate electric service is inadequate or likely to become inadequate within five years. After notice and an opportunity for a hearing within 90 days, the Commission must determine what service is needed and may issue orders, rules, or regulations to provide that service.

The Commission may not force a utility to enlarge generating facilities or sell energy if that would harm its ability to serve customers. The Commission may require a specific generating unit to continue operating and may require State commissions, Transmission Organizations, or utilities to make long-term plans for interstate transmission. The Commission must set any compensation rates and decide how costs are allocated. Orders generally end within five years, but affected parties may request one extension under a defined timeline and the Commission must decide on that request within 60 days. The bill also says actions taken to comply with these orders that would otherwise violate environmental laws will not be treated as violations or subject to civil or criminal penalties or citizen suits.

The bill adds a new requirement that owners or operators of generating facilities give the Commission and any affected State commission or Transmission Organization at least five years notice before retiring an electric generating unit that is a component of a facility, except for unplanned retirements caused by catastrophe, emergency, disaster, or similar events. The Commission must make these notices publicly available. The bill defines key terms, including "electric generating unit" (a unit with at least 5 megawatts that is part of a facility and is connected to the bulk-power system) and "retire."

What it means for you#

• Owners or operators of generating facilities must notify the Commission and affected state or regional bodies at least five years before planning to retire any generating unit that is 5 megawatts or larger and tied to the bulk-power system.
• The Commission can order certain units to keep operating to maintain interstate service and must set compensation and cost allocation for that service.
• Orders to ensure adequate service generally last up to five years, but can be extended through a formal request process.
• Notices of planned retirements will be made public.
• Parties that take actions to comply with Commission orders will not be treated as violating environmental laws for those actions, according to the text.

Expenses#

No publicly available information on overall costs or budgetary effects is included in the bill text. The bill requires the Commission to determine compensation rates and cost allocation for continued operation, but it does not specify dollar amounts or budget figures.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.