Ratepayer Protection Act

Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

A rate charged, or entered into, by an electric utility for providing electric service to a large-load customer shall be designed to recover from the large-load customer the full, incremental cost of any generation, transmission, or distribution upgrade necessary to serve the load of such large-load customer, including in the event of such large-load customer terminating a contract or other agreement with the electric utility pertaining to the sale of electric energy, or otherwise ceasing the purchase of electric energy from the electric utility.

Before making any generation, transmission, or distribution upgrade that is necessary to serve the load of a large-load customer, an electric utility shall require the large-load customer provide to the electric utility financial assurances or contributions to cover the cost of such upgrade.

In this paragraph, the term large-load customer means a non-residential electric consumer that, on or after the date of the enactment of this paragraph, requests to enter into, or enters into, a contract or other agreement pertaining to the sale of electric energy for one or more facilities that have, in the aggregate, a peak electric demand of 100 megawatts or more at a single site or campus.

Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended—

(A) in subsection (b), by adding at the end the following:

(A) Not later than 1 year after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall commence consideration under section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (22) of section 111(d).

(B) Not later than 2 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall complete the consideration and make the determination under section 111 with respect to the standard established by paragraph (22) of section 111(d).;

(B) in subsection (c)—

(i) by striking subsection (b)(2) and inserting subsection (b); and

(ii) by inserting In the case of the standard established by paragraph (22) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (22). after paragraph (21).; and

(C) by adding at the end the following:

Subsections (b) and (c) shall not apply to the standard established by paragraph (22) of section 111(d) in the case of any electric utility in a State if, before the date of enactment of this subsection—

(1) the State has implemented for the electric utility the standard (or a comparable standard);

(2) the State regulatory authority for the State or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the electric utility; or

(3) the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility.

Section 124 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended by adding at the end the following: In the case of the standard established by paragraph (22) of section 111(d), the reference contained in this section to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (22)..