Section 1 Short title
This Act may be cited as the “Public Power Risk Management Act of 2013”.
Public Power Risk Management Act of 2013
A BILL
To provide equal treatment for utility special entities using utility operations-related swaps, and for other purposes.
Sec. 2 Transactions with utility special entities
Section 1a(49) of the Commodity Exchange Act (7 U.S.C. 1a(49)) is amended by adding at the end the following:
“(E) Certain transactions with a utility special entity
“(i) Transactions in utility operations-related swaps shall be reported pursuant to section 4r.
“(ii) In making a determination to exempt pursuant to subparagraph (D), the Commission shall treat a utility operations-related swap entered into with a utility special entity, as defined in section 4s(h)(2)(D), as if it were entered into with an entity that is not a special entity, as defined in section 4s(h)(2)(C).”
Sec. 3 Utility special entity defined
Section 4s(h)(2) of the Commodity Exchange Act (7 U.S.C. 6s(h)(2)) is amended by adding at the end the following:
“(D) Utility special entity—For purposes of this Act, the term utility special entity means a special entity, or any instrumentality, department, or corporation of or established by a State or political subdivision of a State, that—
“(i) owns or operates an electric or natural gas facility or an electric or natural gas operation;
“(ii) supplies natural gas and or electric energy to another utility special entity;
“(iii) has public service obligations under Federal, State, or local law or regulation to deliver electric energy or natural gas service to customers; or
“(iv) is a Federal power marketing agency, as defined in section 3 of the Federal Power Act.”
Sec. 4 Utility operations-related swap
Swap further defined— Section 1a(47)(A)(iii) of the Commodity Exchange Act (7 U.S.C. 1a(47)(A)(iii)) is amended—
by striking “and” at the end of subclause (XXI);
by adding “and” at the end of subclause (XXII); and
by adding at the end the following:
“(XXIII) a utility operations-related swap;”
Utility operations-Related swap defined— Section 1a of such Act (7 U.S.C. 1a) is amended by adding at the end the following:
“(52) Utility operations-related swap—The term utility operations-related swap means a swap that—
“(A) is entered into to hedge or mitigate a commercial risk;
“(B) is not a contract, agreement, or transaction based on, derived on, or referencing—
“(i) an interest rate, credit, equity, or currency asset class; or
“(ii) a metal, agricultural commodity, or crude oil or gasoline commodity of any grade, except as used as fuel for electric energy generation; and
“(C) is associated with—
“(i) the generation, production, purchase, or sale of natural gas or electric energy, the supply of natural gas or electric energy to a utility, or the delivery of natural gas or electric energy service to utility customers;
“(ii) all fuel supply for the facilities or operations of a utility;
“(iii) compliance with an electric system reliability obligation;
“(iv) compliance with an energy, energy efficiency, conservation, or renewable energy or environmental statute, regulation, or government order applicable to a utility; or
“(v) any other electric energy or natural gas swap to which a utility is a party.”
Sec. 5 Effective date
The amendments made by this Act take effect as if enacted on July 21, 2010.