Section 1 Short title
This Act may be cited as the “TVA Reform and Consumer Protection Act”.
TVA Reform and Consumer Protection Act
A BILL
To amend the Federal Power Act and the Tennessee Valley Authority Act of 1933 to reform the Tennessee Valley Authority’s ratemaking authorities, and for other purposes.
Sec. 2 Tennessee Valley Authority reforms
Federal Power Act amendments—
Applicability of part— Section 201(f) of the Federal Power Act (16 U.S.C. 824(f)) is amended by inserting “(other than the Tennessee Valley Authority)” after “instrumentality”.
Certain wheeling authority— Section 211 of the Federal Power Act (16 U.S.C. 824j) is amended by adding at the end the following:
“(f) Transfer of control of transmitting facilities—Nothing in this section authorizes the Commission to require the Tennessee Valley Authority to transfer control or operational control of its transmitting facilities to a Transmission Organization that is designated to provide nondiscriminatory transmission access.”
Provisions regarding certain orders requiring interconnection or wheeling— Section 212(j) of the Federal Power Act (16 U.S.C. 824k(j)) is repealed.
Tennessee Valley Authority Act of 1933 amendments—
Duties of the board of directors— Section 2(g)(1)(L) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831a(g)(1)(L)) is amended by inserting “, subject to approval by the Federal Energy Regulatory Commission” before the semicolon.
Sale of surplus power— Section 10 of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831i) is amended—
by striking “for a term not exceeding twenty years”;
by striking “all contracts made with private companies or individuals for the sale of power, which power is to be resold for a profit, shall contain a provision authorizing the Board to cancel said contract upon five years' notice in writing, if the Board needs said power to supply the demands of States, counties, or municipalities. In order” and inserting “in order”;
by striking “at reasonable rates and to make such rules and regulations governing such sale and distribution of such electric power as in its judgment may be just and equitable” and inserting “at just and reasonable rates, and to make rules and regulations governing such sale and distribution of such electric power that are just and reasonable, subject to approval by the Federal Energy Regulatory Commission”; and
by striking “and in case the purchaser shall fail to comply with any such terms and conditions, or violate any such rules and regulations, said contract may provide that it shall be voidable at the election of the Board” and inserting “subject to approval by the Federal Energy Regulatory Commission”.
Rates when sold for resale at profit— Section 12 of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831k) is amended by striking “as reasonable, just, and fair; and in case of any such sale, if an amount is charged the ultimate consumer which is in excess of the price so deemed to be just, reasonable, and fair by the Board, the contract for such sale between the Board and such distributor of electricity shall be voidable at the election of the Board” and inserting “as just and reasonable, subject to approval by the Federal Energy Regulatory Commission”.
Restriction on contracts for sale or delivery of power— Section 15d(a) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831n–4(a)) is amended—
by striking “Unless otherwise specifically authorized by Act of Congress the Corporation shall make no contracts for the sale or delivery of power which would have the effect of making the Corporation or its distributors, directly or indirectly, a source of power supply outside the area for which the Corporation or its distributors were the primary source of power supply on July 1, 1957, and such additional area extending not more than five miles around the periphery of such area as may be necessary to care for the growth of the Corporation and its distributors within said area: Provided, however, That such additional area shall not in any event increase by more than 21/2 per centum (or two thousand square miles, whichever is the lesser) the area for which the Corporation and its distributors were the primary source of power supply on July 1, 1957: And provided further, That no part of such additional area may be in a State not now served by the Corporation or its distributors or in a municipality receiving electric service from another source on or after July 1, 1957, and no more than five hundred square miles of such additional area may be in any one State now served by the Corporation or its distributors.”;
by striking “Nothing in this subsection shall prevent the Corporation or its distributors from supplying electric power to any customer within any area in which the Corporation or its distributors had generally established electric service on July 1, 1957, and to which electric service was not being supplied from any other source on the effective date of this Act.”; and
by striking “Nothing in this subsection shall prevent the Corporation, when economically feasible, from making exchange power arrangements with other power-generating organizations with which the Corporation had such arrangements on July 1, 1957” and inserting “Nothing in this Act shall prevent the Corporation or its distributors from supplying electric power to any customer within any area, nor prevent the Corporation, when economically feasible, from making exchange power arrangements with other power-generating organizations”.