• Mission & Governance
• Services Overview
• How to Get Involved
• Standing Committees
• NCSL Foundation

• Issue Areas: A-Z
• State-Federal Relations
• NCSL Standing Committees
• News from D.C. and the States

• About State Legislatures
• Elections, Campaigns & Redistricting
• NCSL's StateConnect Directory
• Web Sites

• Online Guide to NCSL Services
• Staff Sections and Networks
• Meetings & Professional Development
• Staff Directories

• Meetings Calendar
• Online Registration
• Meetings Home Page
• Legislative Summit

• Bookstore
• State Legislatures Magazine
• NCSL's StateConnect Directory

Energy & Transportation Update

An Information Service of the AFI Energy and Transportation Committee
March 8, 2000

The Electricity Competition and Reliability Act of 1999 (H.R. 2944) Amended
Electric Industry Restructuring which has been adapted by 24 states, is currently being debated at the federal level. The bill was amended last year and passed out of the Energy and Power Subcommittee of the House Commerce Committee and will likely be considered by the full committee this session. NCSL has been asked to submit comments on the bill. The comments will be reported on in an upcoming E&T Update. The following is a list of the changes made to H.R. 2944.

1. Reciprocity
   The Stearns Amendment removed the "hard reciprocity" provision by allowing a utility company within a state, which has not yet restructured, to enter another state retail market that has restructured
2. Open Access
   Allows open access to transmission for state-operated utilities, co-ops and municipalities
3. Stranded Cost
   Standards were set for wholesale stranded costs
4. Renewable Energy
   Created regional advisory bodies
   Made Investor-owned utilities eligible for renewable energy production incentives
   Clarified that states could establish a renewable portfolio standard
5. Federal Energy Regulatory Commission (FERC) Jurisdiction
   Directs FERC to approve mergers within a shortened period
   Eliminates state jurisdiction over transmission and generation
   Bars differences in transmission rates and charges
   Requires separation of transmission and generation
   Authorizes FERC to order transmitting utilities to join Regional Transmission Organizations (RTOS) or divest transmission
   Strikes savings clause preserving state and municipal authorities to ensure reliability of distribution systems and provisions authorizing regional advisory bodies
   Authorizes FERC to order divestiture and transfer of generation and transmission facilities
   Provides for review of all generation and transmission facilities purchases and directs FERC to consider effects on retail markets and extends the time for FERC review of mergers
   Strikes the repeal of the Public Utility Holding Company Act (PUHCA), but would replace it with PUHCA repeal only where retail competition is instituted
   Sets standards for utility transactions with affiliates
   
   Questions should be directed to Eileen Doherty, Committee Director, (202) 624-8687.