PUBLIC UTILITY REGULATORY POLICIES

ACT OF 1978

An Act

To suspend until the close of June 30, 1980, the duty on certain doxorubicin hydrochloride antibiotics.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

Nov. 9, 1978

[H.R. 4018]

Public Utility
Regulatory
Policies Act of

(a) SHORT TITLE.-This Act may be cited as the "Public Utility 1978. Regulatory Policies Act of 1978".

(b) TABLE OF CONTENTS.

Sec. 1. Short title and table of contents.
Sec. 2. Findings.

Sec. 3. Definitions.

Subtitle B-Standards for Electric Utilities

Sec. 111. Consideration and determination respecting certain ratemaking standards.

Sec. 112. Obligations to consider and determine.

Sec. 113. Adoption of certain standards.

Sec. 114. Lifeline rates.

Sec. 115. Special rules for standards.

Sec. 116. Reports respecting standards.

Sec. 117. Relationship to State law.

16 USC 2601 note.

TITLE II-CERTAIN FEDERAL ENERGY REGULATORY COMMISSION AND DEPARTMENT OF ENERGY AUTHORITIES

Sec. 201. Definitions.

Sec. 202. Interconnection.

Sec. 203. Wheeling.

Sec. 204. General provisions regarding certain interconnection and wheeling

authority.

Sec. 205. Pooling.

Sec. 206. Continuance of service.

Sec. 207. Consideration of proposed rate increases.

Sec. 208. Automatic adjustment clauses.

Sec. 209. Reliability.

Sec. 210. Cogeneration and small power production.

Sec. 211. Interlocking directorates.

Sec. 212. Public participation before Federal Energy Regulatory Commission. Sec. 213. Conduit hydroelectric facilities.

Sec. 214. Prior action; effect on other authorities.

TITLE III-RETAIL POLICIES FOR NATURAL GAS UTILITIES

Sec. 301. Purposes: coverage.

Sec. 302. Definitions.

Sec. 303. Adoption of certain standards.

Sec. 304. Special rules for standards.

Sec. 305. Federal participation.

Sec. 306. Gas utility rate design proposals.

Sec. 307. Judicial review and enforcement.

Sec. 308. Relationship to other applicable law.

Sec. 309. Reports respecting standards.

Sec. 310. Prior and pending proceedings.

Sec. 311. Relationship to other authority.

TITLE IV-SMALL HYDROELECTRIC POWER PROJECTS

Sec. 401. Establishment of program.

Sec. 402. Loans for feasibility studies.

Sec. 403. Loans for project costs.

Sec. 404. Loan rates and repayment.

Sec. 405. Simplified and expeditious licensing procedures.

Sec. 406. New impoundments.

Sec. 407. Authorizations.

Sec. 408. Definitions.

TITLE V-CRUDE OIL TRANSPORTATION SYSTEMS

Sec. 501. Findings.

Sec. 502. Statement of purposes.

Sec. 503. Definitions.

Sec. 504. Applications for approval of proposed crude oil transportation systems. Sec. 505. Review schedule.

Sec. 506. Environmental impact statements.

Sec. 507. Decision of the President.

Sec. 508. Procedures for waiver of Federal law.

Sec. 509. Expedited procedures for issuance of permits: enforcement of rightsof-way.

Sec. 510. Negotiations with the Government of Canada.

Sec. 511. Judicial review.

Sec. 512. Authorization for appropriation.

TITLE VI-MISCELLANEOUS PROVISIONS

Sec. 601. Study concerning electric rates of State utility agencies.

Sec. 602. Seasonal diversity electricity exchange.

Sec. 603. Utility regulatory institute.

Sec. 604. Coal research laboratories.

Sec. 605. Conserved natural gas.

Sec. 606. Voluntary conversion of natural gas users to heavy fuel oil users. Sec. 607. Emergency conversion of utilities and other facilities.

Sec. 608. Natural gas transportation policies.

SEC. 2. FINDINGS.

The Congress finds that the protection of the public health, safety, and welfare, the preservation of national security, and the proper exercise of congressional authority under the Constitution to regulate interstate commerce require

(1) a program providing for increased conservation of electric energy, increased efficiency in the use of facilities and resources by electric utilities, and equitable retail rates for electric consumers, (2) a program to improve the wholesale distribution of electric energy, the reliability of electric service, the procedures concerning consideration of wholesale rate applications before the Federal Energy Regulatory Commission, the participation of the public in matters before the Commission, and to provide other measures with respect to the regulation of the wholesale sale of electric energy,

(3) a program to provide for the expeditious development of hydroelectric potential at existing small dams to provide needed hydroelectric power,

(4) a program for the conservation of natural gas while insuring that rates to natural gas consumers are equitable,

(5) a program to encourage the development of crude oil transportation systems, and

(6) the establishment of certain other authorities as provided in title VI of this Act.

SEC. 3. DEFINITIONS.

As used in this Act, except as otherwise specifically provided

(1) The term "antitrust laws" includes the Sherman Antitrust Ace (15 U.S.C. 1 and following), the Clayton Act (15 U.S.C. 12 and following), the Federal Trade Commission Act (15 U.S.C. 14 and following), the Wilson Tariff Act (15 U.S.C. 8 and 9), and the Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 136, and 21A).

(2) The term "class" means, with respect to electric consumers, any group of such consumers who have similar characteristics of electric energy use.

(3) The term "Commission” means the Federal Energy Regulatory Commission.

(4) The term "electric utility" means any person, State agency, or Federal agency, which sells electric energy.

(5) The term "electric consumer" means any person, State agency, or Federal agency, to which electric energy is sold other than for purposes of resale.

(6) The term "evidentiary hearing" means—

(A) in the case of a State agency, a proceeding which (i) is open to the public, (ii) includes notice to participants and an opportunity for such participants to present direct and rebuttal evidence and to cross-examine witnesses, (iii) includes a written decision, based upon evidence appearing in a written record of the proceeding, and (iv) is subject to judicial review;

(B) in the case of a Federal agency, a proceeding conducted as provided in sections 554, 556, and 557 of title 5, United States Code; and

(C) in the case of a proceeding conducted by any entity other than a State or Federal agency, a proceeding which con

16 USC 2601.

16 USC 2602.

16 USC 2603.

16 USC 791a, 15 USC 717w.

16 USC 2611.

forms, to the extent appropriate, with the requirements of subparagraph (A).

(7) The term "Federal agency" means an executive agency (as defined in section 105 of title 5 of the United States Code).

(8) The term "load management technique" means any technique (other than a time-of-day or seasonal rate) to reduce the maximum kilowatt demand on the electric utility, including ripple or radio control mechanisms, and other types of interruptible electric service, energy storage devices, and load-limiting devices. (9) The term "nonregulated electric utility" means any electric utility other than a State regulated electric utility.

(10) The term "rate" means (A) any price, rate, charge, or classification made, demanded, observed, or received with respect to sale of electric energy by an electric utility to an electric consumer, (B) any rule, regulation, or practice respecting any such rate, charge, or classification, and (C) any contract pertaining to the sale of electric energy to an electric consumer.

(11) The term "ratemaking authority" means authority to fix, modify, approve, or disapprove rates.

(12) The term "rate schedule" means the designation of the rates which an electric utility charges for electric energy.

(13) The term "sale" when used with respect to electric energy includes any exchange of electric energy.

(14) The term "Secretary" means the Secretary of Energy. (15) The term "State" means a State, the District of Columbia, and Puerto Rico.

(16) The term "State agency" means a State, political subdivision thereof, and any agency or instrumentality of either.

(17) The term "State regulatory authority" means any State agency which has ratemaking authority with respect to the sale of electric energy by any electric utility (other than such State agency), and in the case of an electric utility with respect to which the Tennessee Valley Authority has ratemaking authority, such term means the Tennessee Valley Authority.

(18) The term "State regulated electric utility" means any electric utility with respect to which a State regulatory authority has ratemaking authority.

SEC. 4. RELATIONSHIP TO ANTITRUST LAWS.

Nothing in this Act or in any amendment made by this Act affects(1) the applicability of the antitrust laws to any electric utility or gas utility (as defined in section 302), or

(2) any authority of the Secretary or of the Commission under any other provision of law (including the Federal Power Act and the Natural Gas Act) respecting unfair methods of competition or anticompetitive acts or practices.

TITLE I-RETAIL REGULATORY POLICIES
FOR ELECTRIC UTILITIES

Subtitle A-General Provisions

SEC. 101. PURPOSES.

The purposes of this title are to encourage

(1) conservation of energy supplied by electric utilities; (2) the optimization of the efficiency of use of facilities and resources by electric utilities; and

(3) equitable rates to electric consumers.