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To require the Federal Energy Regulatory Commission to order refunds of unjust, unreasonable, unduly discriminatory or preferential rates and charges for electricity, to establish cost-based rates for electricity sold at wholesale in the Western Systems Coordinating Council, and for other purposes.

January 22, 2001

Mrs. BOXER (for herself and Mrs. FEINSTEIN) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

To require the Federal Energy Regulatory Commission to order refunds of unjust, unreasonable, unduly discriminatory or preferential rates and charges for electricity, to establish cost-based rates for electricity sold at wholesale in the Western Systems Coordinating Council, 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 `California Electricity Consumers Relief Act of 2001'.

SEC. 2. ADDITIONAL REFUND AUTHORITY UNDER FEDERAL POWER ACT.

Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended by adding the following at the end thereof:

`(e)(1) The provisions of this subsection shall apply only to refunds of rates and charges in effect pursuant to a rule or order of the Commission providing for market-based rates and charges for a transmission or sale of electric energy subject to the jurisdiction of the Commission. The provisions of subsection (b) concerning refunds shall not apply to such rates and charges.

`(2) When the Commission has found, after notice and opportunity for a hearing, on its own motion or upon complaint, that any rate or charge referred to in paragraph (1) is unjust, unreasonable, unduly discriminatory or preferential, the Commission shall order a refund of the portion of such rate or charge that exceeds the rate or charge that the Commission finds to be just, reasonable and not unduly discriminatory or preferential. Such refund shall include interest from the date on which the rate or charge was paid.

`(3) No order providing for a refund under this subsection may be issued with respect to amounts paid prior to the date 2 years before the date on which the notice referred to in paragraph (2) is published in the Federal Register.'

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall not apply to any complaint filed before August 1, 2000.

(c) SAVINGS PROVISIONS- Nothing in the amendment made by subsection (a) shall affect any authority of the Commission (or of any court) existing before the enactment of this section, including any such authority to issue any rule or order relating to market-based rates, to approve or fix rates and charges, or to order refunds of any rate or charge.

SEC. 3. ESTABLISHMENT OF COST-BASED RATES FOR WHOLESALE SALES OF ELECTRICITY IN THE WESTERN UNITED STATES.

(a) EXERCISE OF AUTHORITY TO ESTABLISH MAXIMUM PRICES-

(1) DETERMINATION ON ITS OWN MOTION- The Federal Energy Regulatory Commission shall issue an order establishing the maximum price for electricity sold at wholesale subject to the jurisdiction of the Commission under the Federal Power Act in the Western Systems Coordinating Council for any period after June 1, 2000, if the Commission determines that any rates charged for such wholesale sales of electricity are unjust, unreasonable, unduly discriminatory or preferential under section 206 of the Federal Power Act. The Commission may make such determination on its own motion at any time. If the Governor of any State within the Western Systems Coordinating Council submits a petition to the Commission to make such determination with respect to any such rates, within 30 days after receipt of the petition, the Commission shall determine if such rates are unjust, unreasonable, unduly discriminatory or preferential under section 206 of the Federal Power Act.

(b) MAXIMUM PRICE- The maximum price established by the Federal Energy Regulatory Commission pursuant to subsection (a) shall be a price based on the seller's costs, including a return of and on invested capital, established in accordance with part II of the Federal Power Act.

(c) REFUNDS OF PRICES PAID IN EXCESS OF MAXIMUM PRICE- Any prices paid in excess of the maximum price established pursuant to this section shall be refunded pursuant to section 206 of the Federal Power Act, as amended by section 2 of this Act.

(d) PENALTIES- Any person who violates any requirement of this section shall be subject to civil penalties equal to 3 times the value of the amount involved in such violation. The Federal Energy Regulatory Commission shall assess such penalties, after notice and opportunity for public hearing, in accordance with the same provisions as are applicable under section 31(d) of the Federal Power Act in the case of civil penalties assessed under such section 31.

(e) SAVINGS PROVISIONS- Nothing in this section shall affect any authority of the Commission existing before the enactment of this section to approve or fix rates and charges, or to order refunds of any rate or charge.

SEC. 4. SEVERABILITY.

If any provision of this Act is found to be unenforceable or invalid, no other provision of this Act shall be invalidated thereby.

END