[House Report 115-167]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-167
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TO AMEND SECTION 203 OF THE FEDERAL POWER ACT
_______
June 12, 2017.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Walden, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 1109]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 1109) to amend section 203 of the Federal Power
Act, having considered the same, report favorably thereon
without amendment and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Committee Action................................................. 2
Committee Votes.................................................. 2
Oversight Findings and Recommendations........................... 2
New Budget Authority, Entitlement Authority, and Tax Expenditures 2
Congressional Budget Office Estimate............................. 2
Federal Mandates Statement....................................... 2
Statement of General Performance Goals and Objectives............ 2
Duplication of Federal Programs.................................. 3
Committee Cost Estimate.......................................... 3
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 3
Disclosure of Directed Rule Makings.............................. 3
Advisory Committee Statement..................................... 3
Applicability to Legislative Branch.............................. 3
Section-by-Section Analysis of the Legislation................... 4
Section 1. Clarification of Facility Merger Authorization........ 4
Changes in Existing Law Made by the Bill, as Reported............ 4
Purpose and Summary
Under current law, public utilities are prohibited from
merging or consolidating facilities with those of any other
person without first having secured an order of the Federal
Energy Regulatory Commission (FERC) authorizing them to do so.
H.R. 1109 would amend the Federal Power Act to exempt
facilities of a value of $10,000,000 or less from this
prohibition. The bill also directs the FERC to issue a rule
requiring certain public utilities seeking to merge or
consolidate to notify FERC of the transaction within 30 days of
the completion of the merger or consolidation.
Committee Action
The Committee on Energy and Commerce has not held hearings
on the legislation.
On June 7, 2017, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 1109, without
amendment, favorably reported to the House by unanimous
consent.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. There were no record votes taken in connection with
ordering H.R. 1109 reported.
Oversight Findings and Recommendations
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee has not held hearings on this
legislation.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 1109 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to exempt
public utility mergers and consolidations of facilities valued
at $10,000,000 or less from first having to secure an order
from the FERC authorizing it to do so; and to direct the FERC
to promulgate a rule requiring a public utility to notify the
FERC of a merger or consolidation of facilities valued in
excess of $1,000,000 and not required to secure an order of the
Commission within 30 days after the transaction is completed.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 1109 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
Committee Cost Estimate
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 1109 contains no earmarks, limited
tax benefits, or limited tariff benefits.
Disclosure of Directed Rule Makings
Pursuant to section 3(i) of H.Res. 5, the following
directed rule making is contained in H.R. 1109:
(7)(A) Not later than 180 days after the date of
enactment of this paragraph, the Commission shall
promulgate a rule requiring any public utility that is
seeking to merge or consolidate, directly or
indirectly, its facilities subject to the jurisdiction
of the Commission, or any part thereof, with those of
any other person, to notify the Commission of such
transaction not later than 30 days after the date on
which the transaction is consummated if--(i) such
facilities, or any part thereof, are of a value in
excess of $1,000,000; and (ii) such public utility is
not required to secure an order of the Commission under
paragraph (1)(B). (B) In establishing any notification
requirement under subparagraph (A), the Commission
shall, to the maximum extent practicable, minimize the
paperwork burden resulting from the collection of
information. (Section 2. Notification for Certain
Transactions.)
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Clarification of facility merger authorization
Section 1 would amend the Federal Power Act to exempt
facilities, or any part thereof, of a value of $10,000,000 or
less from the Federal Power Act requirement that no public
utility shall, without first having secured an order of the
FERC authorizing it to do so, merge or consolidate, directly or
indirectly, such facilities or any part thereof with those of
any other person, by any means whatsoever.
Section 2. Notification for certain transactions
Section 2 would direct the FERC to promulgate within 180
days of enactment of the Act a rule requiring public utilities
seeking to merge or consolidate to notify FERC of the
transaction within 30 days after the completion of the merger
or consolidation. The notification requirement would only apply
if such facilities, or any part thereof, are of a value in
excess of $1,000,000 and such public utility is not required to
secure a pre-merger or pre-consolidation order from the
Commission. In establishing a notification requirement under
this section, FERC shall, to the maximum extent practicable,
minimize the paperwork burden resulting from the collection of
information.
Section 3. Effective date
Section 3 provides that the amendment made by section 1
shall take effect 180 days after the date of enactment of this
Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
FEDERAL POWER ACT
* * * * * * *
PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE
COMMERCE
* * * * * * *
disposition of property; consolidation; purchase of securities
Sec. 203. (a)(1) No public utility shall, without first
having secured an order of the Commission authorizing it to do
so--
(A) sell, lease, or otherwise dispose of the
whole of its facilities subject to the
jurisdiction of the Commission, or any part
thereof of a value in excess of $10,000,000;
(B) merge or consolidate, directly or
indirectly, [such facilities or any part
thereof] such facilities, or any part thereof,
of a value in excess of $10,000,000 with those
of any other person, by any means whatsoever;
(C) purchase, acquire, or take any security
with a value in excess of $10,000,000 of any
other public utility; or
(D) purchase, lease, or otherwise acquire an
existing generation facility--
(i) that has a value in excess of
$10,000,000; and
(ii) that is used for interstate
wholesale sales and over which the
Commission has jurisdiction for
ratemaking purposes.
(2) No holding company in a holding company system
that includes a transmitting utility or an electric
utility shall purchase, acquire, or take any security
with a value in excess of $10,000,000 of, or, by any
means whatsoever, directly or indirectly, merge or
consolidate with, a transmitting utility, an electric
utility company, or a holding company in a holding
company system that includes a transmitting utility, or
an electric utility company, with a value in excess of
$10,000,000 without first having secured an order of
the Commission authorizing it to do so.
(3) Upon receipt of an application for such approval
the Commission shall give reasonable notice in writing
to the Governor and State commission of each of the
States in which the physical property affected, or any
part thereof, is situated, and to such other persons as
it may deem advisable.
(4) After notice and opportunity for hearing, the
Commission shall approve the proposed disposition,
consolidation, acquisition, or change in control, if it
finds that the proposed transaction will be consistent
with the public interest, and will not result in cross-
subsidization of a non-utility associate company or the
pledge or encumbrance of utility assets for the benefit
of an associate company, unless the Commission
determines that the cross-subsidization, pledge, or
encumbrance will be consistent with the public
interest.
(5) The Commission shall, by rule, adopt procedures
for the expeditious consideration of applications for
the approval of dispositions, consolidations, or
acquisitions, under this section. Such rules shall
identify classes of transactions, or specify criteria
for transactions, that normally meet the standards
established in paragraph (4). The Commission shall
provide expedited review for such transactions. The
Commission shall grant or deny any other application
for approval of a transaction not later than 180 days
after the application is filed. If the Commission does
not act within 180 days, such application shall be
deemed granted unless the Commission finds, based on
good cause, that further consideration is required to
determine whether the proposed transaction meets the
standards of paragraph (4) and issues an order tolling
the time for acting on the application for not more
than 180 days, at the end of which additional period
the Commission shall grant or deny the application.
(6) For purposes of this subsection, the terms
``associate company'', ``holding company'', and
``holding company system'' have the meaning given those
terms in the Public Utility Holding Company Act of
2005.
(7)(A) Not later than 180 days after the date of
enactment of this paragraph, the Commission shall
promulgate a rule requiring any public utility that is
seeking to merge or consolidate, directly or
indirectly, its facilities subject to the jurisdiction
of the Commission, or any part thereof, with those of
any other person, to notify the Commission of such
transaction not later than 30 days after the date on
which the transaction is consummated if--
(i) such facilities, or any part thereof, are
of a value in excess of $1,000,000; and
(ii) such public utility is not required to
secure an order of the Commission under
paragraph (1)(B).
(B) In establishing any notification requirement
under subparagraph (A), the Commission shall, to the
maximum extent practicable, minimize the paperwork
burden resulting from the collection of information.
(b) The Commission may grant any application for an order
under this section in whole or in part and upon such terms and
conditions as it finds necessary or appropriate to secure the
maintenance of adequate service and the coordination in the
public interest of facilities subject to the jurisdiction of
the Commission. The Commission may from time to time for good
cause shown make such orders supplemental to any order made
under this section as it may find necessary or appropriate.
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