This bill adds a new section to the Federal Power Act that stops operators or owners from retiring or changing the fuel source of certain large, dispatchable electric generating units located in areas the Electric Reliability Organization (ERO) says are at "elevated risk" or "high risk" of electricity supply shortfalls. A "covered area" must be served by a Regional Transmission Organization (RTO) or an Independent System Operator (ISO) and be so categorized in the ERO's annual 10-year long-term reliability assessment. A "covered electric generating unit" must be dispatchable, at least 25 megawatts, connected to the bulk-power system, and not primarily powered by intermittent renewables.
The bill allows owners or operators to petition the Federal Energy Regulatory Commission (the Commission) for an exemption. The Commission must decide most petitions within 90 days, or within 180 days for petitions based on unprofitability or sustained losses. The Commission may grant exemptions if the owner shows unprofitability, safety risks, or—after consulting the relevant RTO/ISO—demonstrates the retirement or fuel change will not hurt reliability or that the unit will be replaced by comparable units. If the Commission finds retirement would hurt reliability and the petition is about unprofitability, it must refer the petition to the Energy Secretary, who may provide loans or grants. The Energy Secretary may use unobligated funds from the Infrastructure Investment and Jobs Act or Public Law 117-169 for loans or grants. Loan terms are set by the Secretary; any loan interest payments go to the Treasury general fund for deficit reduction.
The bill also says the Commission may not consider greenhouse gas emissions when making exemption decisions. It requires the ERO to publish, within 60 days of enactment, a standardized probabilistic method and criteria for labeling areas as high, elevated, or normal risk, at least as rigorous as the 2024 methodology. The Commission must report to Congress within one year on oversight and enforcement of the new section. Owners can seek judicial review of Commission decisions in the courts of appeals.
The bill aims to protect electricity reliability in areas the ERO identifies as being at elevated or high risk of supply shortfalls. It prevents retirements or fuel conversions of large dispatchable units in those areas unless an exemption is granted, and it provides a path for temporary financial support from the Energy Department to keep necessary units operating.
No publicly available information.