“To amend the Federal Power Act to exempt consumer-regulated electric utilities from Federal regulation, and for other purposes.”
No CRS summary available for this bill.
This section establishes definitions for terms used in the Act. Specifically, it defines (1) "bulk-power system," "Electric Reliability Organization," and "reliability standard," each with the meaning given in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)); (2) "consumer-regulated electric utility" or "CREU," meaning an electric generation and supply system established after enactment exclusively to serve new electric loads not previously served by any retail electricity supplier, which may own, construct, and operate generation, storage, transmission, distribution, and retail supply facilities but must operate physically islanded from regulated utilities, the bulk-power system, and the Bulk Electric System (as defined by the Electric Reliability Organization), with no connection for primary or backup supply and independently of any public utility; and (3) "eligible CREU customer," meaning any entity that purchases electricity at retail exclusively from a CREU through its facilities and is located within premises physically islanded from regulated utilities, the bulk-power system, and the Bulk Electric System.
This section exempts consumer-regulated electric utilities from regulation under the Federal Power Act, including with respect to (A) rate regulation; (B) corporate or financial oversight; (C) transmission or distribution regulation; (D) reliability standards; (E) interconnection requirements; (F) participation in regional transmission planning or cost allocation; and (G) merger, consolidation, acquisition, or disposition approvals. Such utilities are not considered public utilities under the act, are not part of the bulk-power system or Bulk Electric System (as defined by the Electric Reliability Organization), and are not required to register with or comply with reliability standards of the Electric Reliability Organization unless they voluntarily elect to connect to the bulk-power system.
This section exempts consumer-regulated electric utilities (CREUs) that begin operations on or after the date of enactment from all Federal Energy Regulatory Commission (FERC) and Department of Energy (DOE) regulation, including reliability standards under section 215 of the Federal Power Act and all other standards, rules, regulations, or requirements under that Act or any other federal law. A CREU begins operations on the date it first generates, transmits, distributes, or sells electricity. The exemption terminates immediately if the CREU connects to the bulk-power system or any other electric transmission or distribution system for primary or backup supply, subjecting it to all applicable federal regulation.
This section exempts consumer-regulated electric utilities (as defined in section 2 of the DATA Act of 2026) from all requirements of Section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA). Section 210 of PURPA requires electric utilities to interconnect with, purchase power from, and sell power to qualifying cogeneration facilities and small power production facilities (e.g., certain renewable energy projects) at the utility's avoided cost rates. (Thus, exempted utilities face no such obligations.)
This section expands exemptions under the Public Utility Holding Company Act of 2005 (PUHCA) by providing that no provision of the act applies to any holding company solely by reason of its ownership or control of a consumer-regulated electric utility (as defined in section 2 of the DATA Act of 2026). (PUHCA regulates electric utility holding companies, requiring Federal Energy Regulatory Commission oversight of mergers, securities issuances, and affiliate transactions to protect utility ratepayers.)
This section authorizes consumer-regulated electric utilities to construct and operate facilities within existing public rights-of-way, subject to the same permitting, restoration, and public-safety requirements applicable to public utilities under the Federal Power Act. It limits review of such applications exclusively to the adequacy of (1) right-of-way restoration and (2) storm-response planning.