76 1 electric utility or any qualifying cogenerator (as defined in 2 section 522 (b) (2) of the Public Utility Act of 1977), 3 and after notice to each State commission and electric 4 utility affected and after evidentiary hearing, finds such 5 action necessary or appropriate in the public interest, it 6 shall by order direct an electric utility (other than a 7 Federal agency) – 8 9 10 11 "(A) to establish physical connection of its transmission facilities with the facilities of any other elec tric utility or qualifying cogenerator, or "(B) (i) to sell or deliver energy to, (ii) ex 12 change energy with, (iii) transmit energy for, (iv) 234 13 provide pooling, wheeling, or other transmission serv 14 15 16 17 ices for, or (v) otherwise coordinate with, such utility or cogenerator. "(3) The Commission may prescribe the terms and conditions of the arrangement to be made between the 18 persons affected by any order under this subsection, includ 19 20 21 22 2 2 2 * ing the apportionment of cost between them and the com pensation or reimbursement reasonably due to any of them. "(4) The Commission shall have no authority under this subsection to compel the enlargement of generating 23 facilities for purposes of this subsection, nor to compel an 24 electric utility to sell or exchange energy if to do so would 77 1 unreasonably impair its ability to render adequate service 3 to its customers.". (b) (1) Section 202 (a) of the Federal Power Act is 4 amended by striking the word "voluntary" from the first 5 sentence. 6 (2) The first sentence of section 201 (b) is amended by 7 inserting "(other than 202 (b))" after "Part" and by add8 ing the following at the end thereof: "The provisions of sec9 tion 202 (b) shall apply to the electric utilities and other 10 persons specified therein.". 11 (3) Section 201 (e) is amended by inserting "(other 12 than facilities subject to such jurisdiction solely by reason of 13 section 202 (b))" before the period at the end thereof. 14 15 COGENERATION SEC. 522. (a) Not later than one year after the date of 16 enactment of this Act, the Administrator shall, after con17 sultation with representatives of State regulatory authorities, 18 prescribe rules requiring electric utilities to offer to sell elec19 tric energy to any qualifying cogenerator and to offer to pur20 chase electric energy from such cogenerators. Such rules 21 shall insure that rates for such sales and purchases do not 22 discriminate against such cogenerators, and may, in order 23 to carry out the purposes of this Act, include provisions ex24 empting qualifying cogenerators in whole or part from the 78 1 Federal Power Act, the Public Utility Holding Company 2 Act, and from State laws and regulations respecting electric 3 utility regulation, if the Administrator determines such ex4 emption is necessary to carry out the purposes of this part. (b) For purposes of this section: 5 (1) The term "cogeneration facility" means a fa cility owned by a person not primarily engaged in the generation or sale of electric power, which facility produces (A) electric energy and (B) other forms of useful energy (such as steam or heat) which is, or will be used for industrial, commercial, or space heating pur poses. (2) The term "qualifying cogeneration facility" means a cogeneration facility which the Administrator determines (A) meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the Administrator, by rule, prescribes; and (B) the owner or operator of which offered (at such time and in such manner as the Administrator may prescribe by rule) each electric utility to which such facility is, or will be, directly con nected an opportunity to operate such facility on terms which are agreed upon by the parties. 1 2 3 4 79 (3) The term "qualifying cogenerator" means any person who is, or will be, the owner or operator of a qualifying cogeneration facility. (c) For purposes of enforcement of this section, a rule 5 under this section shall be treated as a rule under the Fed6 eral Power Act; except that, for such purposes, any refer7 ence in sections 309, 314, 315, and 316 of the Federal 8 Power Act to the Commission shall be deemed to be a reference to the Administrator. 9 10 (d) The Administrator may delegate (on such terms 11 and conditions as he determines appropriate) any part of 12 his authority under this section respecting any electric utility 13 (other than a Federal agency) to any State regulatory au14 thority which he determines has the capability of effectively 15 exercising such authority with respect to such utility. Subpart 4-Natural Gas Rate Design Policies DEFINITIONS SEC. 541. (a) As used in this subpart: (1) The term "gas consumer" means any person, State agency, or Federal agency, to which natural gas is sold other than for purposes of resale. (2) The term "gas utility" means any person, Federal agency, or State agency which sells natural gas. (3) The term "natural gas" shall have the same 1 2 3 4 5 6 7 8 9 10 11 80 meaning as such term has under section 2 of the Natural Gas Act. (4) The terms "State regulated gas utility", "nonregulated utility”, "nonregulated public system", "nonregulated cooperative", "rate", "rate schedule", "sale", and "State regulatory authority" shall have the same meaning as such terms have under section 502; except that the term "gas" shall be substituted for "electric" and "electric energy" wherever those terms appear in section 502. COVERAGE 12 SEC. 542. The requirements of this subpart apply only 13 to sales of natural gas by a gas utility for purposes other 14 than resale; except that such requirements shall not apply 15 to a gas utility in any calendar year unless such sales by 16 such utility during the second preceding calendar year (or any prior year after 1975) exceeded ten billion cubic feet 17 18 of gas. 19 NATURAL GAS RATE DESIGN AND REGULATORY POLICIES 20 SEC. 543. (a) Each State regulatory authority which 21 has enforcement responsibility shall take such action as (1) no State regulated gas utility will make sales of natural gas subject to this subpart under a rate schedule under which the rate per thousand cubic feet |