S. 3034 — Reliable Power Act

This section revises subsection (g) of Section 215 of the Federal Power Act to require the Electric Reliability Organization (ERO)—certified by the Federal Energy Regulatory Commission (Commission) to establish and enforce reliability standards for the bulk-power system (i.e., the interconnected transmission network and supporting generation)—to include in its assessments an annual long-term assessment analyzing (1) the bulk-power system's ability to supply sufficient electric energy for reliability, considering generation resource mix, transmission development, and demand trends; (2) risks of future supply shortfalls under normal and extreme weather conditions by region; and (3) whether additional generation resources are necessary; directs the ERO to publicly notify the Commission of any generation inadequacy (i.e., risk of insufficient generation for reliability); and authorizes the ERO to collect relevant data from bulk-power system users, owners, and operators. (Thus, these requirements supplement the ERO's existing state-of-reliability assessments.) The section also redesignates subsections (h) through (k) as (i) through (l), respectively, and inserts a new subsection (h) establishing a Commission review process for "covered agency actions" (i.e., regulations by Cabinet-level federal agencies, such as the Department of Energy or Environmental Protection Agency, relating to or affecting bulk-power system generation resources that are under development or consideration) upon an ERO generation inadequacy notice. Under the new process, the Commission notifies relevant agencies; agencies submit covered actions for Commission review by specified dates tied to Office of Management and Budget clearance, Federal Register publication, or 60-90 days post-notification; the Commission provides comments (in consultation with the ERO and transmission organizations) assessing effects on Commission-jurisdictional rates, terms, and conditions and recommending modifications to avoid reliability impacts; agencies may not finalize such actions without a written response to Commission comments and a Commission determination of no significant negative reliability impact; and all comments, recommendations, and responses must be publicly disclosed. (Thus, the process enables Commission oversight to protect bulk-power system reliability from potentially adverse federal regulations during generation inadequacy.)