H.R. 10687: Utility Affordability and Transparency Act

This bill would change how the federal government can use emergency power under section 202(c) of the Federal Power Act to direct electric utilities during emergencies.

What changes in emergency authority

Under current law, the Federal Energy Regulatory Commission (FERC) can issue emergency orders. This bill would shift that authority to the Secretary of Energy. It would also require the Secretary to explain, in each order, why the order and its requirements are necessary to address the emergency and serve the public interest.

Time limits and explanations for orders

If an emergency order lasts 96 hours or less, the Secretary must state the specific hours needed. If an order lasts more than 96 hours, the Secretary must describe the method used to determine how long the order should last.

Environmental-law conflicts and renewals

The bill would allow emergency orders even if they conflict with federal, state, or local environmental laws or regulations, but it adds new reporting and review requirements when an order is renewed or reissued. Before renewing or reissuing an order, the Secretary would have to conduct a “robust study” of other options that could reduce costs.

The Secretary would also have to publicly identify the main federal agency consulted when renewing or reissuing an order.

Public reporting and cost disclosure

Within 30 days after an emergency order is issued, renewed, or reissued, FERC would have to publish a public report about:

• the results of any study of alternatives;
• the causes of the emergency;
• estimated costs for electric utilities and their customers; and
• other expected effects of the order.

Within 60 days, any affected electric utility would have to send customers a written description of the costs it incurred, or expects to incur, because of the order, including relevant information from FERC’s report.

Limits on keeping power plants running

The bill would generally bar emergency orders from being used to:

• prevent or delay the retirement or permanent closure of a power plant; or
• require a retired or permanently closed plant to restart generation.

There is a narrow exception if there is an emergency that cannot be addressed any other way, and the relevant transmission organization asks in writing for the plant’s retirement to be delayed.

Relevant Companies

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