H.R. 3632: Power Plant Reliability Act of 2025

The Power Plant Reliability Act of 2025 aims to amend the Federal Power Act to enhance the reliability of electric service by introducing new requirements regarding the operation and retirement of electric generating units. Here is a summary of the bill's main provisions:

1. Purpose and Title

The bill is titled the Power Plant Reliability Act of 2025 and aims to ensure adequate electric service and provide guidelines for the retirement of electric generating units.

2. Requirements for Adequate Service

The bill modifies how the Federal Energy Regulatory Commission (FERC) handles complaints regarding inadequate interstate electric service. Key points include:

• If a complaint is filed by a state commission or transmission organization about insufficient service, FERC must investigate the claim and can issue orders to ensure adequate service.
• FERC cannot require the expansion of generating facilities or mandate electricity sales if it would impair the utility's ability to provide service.
• Utilities may be required to continue operating certain electric generating units if deemed necessary for reliable service.
• FERC will determine appropriate rates or charges to cover the costs of maintaining adequate service, including compensation for utilities that must continue operations.

3. Notification of Planned Retirements

Under the bill, electric generating unit operators must give advance notice for planned retirements:

• Operators intending to retire a generating unit must notify FERC and relevant state commissions or transmission organizations at least 5 years before the intended retirement date.
• For unexpected retirements due to emergencies or disasters, the notification requirement does not apply.
• FERC is responsible for making these notices publicly available.

4. Definitions

The bill provides definitions for key terms, including:

• Bulk-power system: Refers to the interconnected electrical systems that generate and distribute electricity.
• Electric generating unit: A unit that produces electric energy with a capacity of at least 5 megawatts and is connected to the bulk-power system.
• Retirement: The action of idling, disconnecting, or ceasing operation of an electric generating unit.

5. Extensions of Orders and Regulations

FERC can extend any orders or regulations related to adequate service for up to 5 additional years, upon request from affected parties.

6. Compliance with Environmental Laws

The bill states that actions taken to comply with its orders will not be considered violations of environmental laws if they happen to interfere with compliance.

Relevant Companies

• DUK - Duke Energy may be affected due to its various electric generation facilities and potential need to adjust operations based on the communication requirements set forth in this bill.
• NEE - NextEra Energy, being a major utility with significant generating capacity, would likely need to respond to retirement notifications and compliance with orders from FERC.
• EXC - Exelon Corporation may also face direct impacts from the requirement to notify about planned retirements and ensure its operations meet the adequate service standards outlined in the bill.