H.R. 10738: Affordable Power for Host Communities Act

This bill would add a new federal policy under the Public Utility Regulatory Policies Act that encourages states and certain utilities to consider lower electricity rates for customers in “host counties”—counties where certain power generation facilities are located.

What counts as a host county

A host county is a county that contains a covered generation facility. To qualify, the facility must:

• generate electricity that is delivered to local distribution facilities and sold;
• have at least 5 megawatts of nameplate capacity; and
• create operational, environmental, or infrastructure burdens on the county, such as land-use restrictions, water-management constraints, wildfire risk tied to transmission infrastructure, or environmental compliance obligations.

The bill says this category includes hydroelectric, geothermal, biomass, solar, and wind facilities, along with related federal or state-owned infrastructure.

What the rate change would be

The bill would require that electricity rates charged by a utility for a given class of customers be 20% lower for customers in that class who are located in a host county than for similar customers outside a host county.

What states and utilities would have to do

Within 1 year after enactment, each state regulatory authority and each nonregulated electric utility would have to begin considering the new standard, or schedule a hearing to consider it. Within 2 years, they would have to finish that review and make a decision.

Effect on existing state actions

The bill includes rules that may limit the requirement in places where a state has already acted. The new federal standard would not apply to an electric utility in a state if, before enactment of this bill:

• the state already implemented a similar standard for that utility;
• the state regulatory authority or utility already held a proceeding to consider such a standard; or
• the state legislature voted on implementing a similar standard within the prior 3 years.

How it fits into existing law

The bill amends existing federal energy law so that this new discount-rate standard is treated like other PURPA standards that state regulators and utilities must consider. It also adjusts timing rules so that pending and future proceedings are measured from the date this new standard is enacted.

Relevant Companies

None found.