article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Federal Power Asset Privatization Act of 1995''. SEC. 2. FINDINGS. The Congress finds that: (1) the Federal Power Marketing Administrations, over the years, have served to help bring electricity to many areas in the Nation; (2) they have done so with the investment of the American taxpayer; (3) the necessity of federally owned power generation and transmission facilities has passed and halting this practice is in the best national interest of the United States; (4) in fairness to the longtime consumers of Federal Power Marketing Administrations, any process of sale should be open to them; (5) the taxpayers, through investing in the construction and operation, have established equity in the facilities; and (6) this equity entitles the American taxpayer to expect the highest possible return in the sale process. SEC. 3. SALE OF ASSETS. (a) Sale of Assets.--The Secretary of Energy (hereinafter referred to as ``the Secretary'') is authorized and directed to take such steps as necessary to sell all electric power generation facilities and transmission facilities, that are currently owned and operated by Federal departments and agencies under the supervision of, or coordination with, the Federal Power Marketing Administrations. No foreign person or corporation may purchase any such facilities; such facilities may be sold only to a United States citizen or to a corporation or partnership organized under the laws of a State. After such sales are completed the Secretary shall terminate the operations of the Federal Power Marketing Administrations. The heads of other affected Federal departments and agencies shall assist the Secretary of Energy in implementing the sales authorized by this section. (b) Price; Structure of Sale.-- (1) Price.--The Secretary shall obtain the highest possible price for such facilities. In determining the highest possible price, the value of future tax revenues shall be included. (2) Retention of financial advisor.--In order to conduct the sales authorized by this section in such manner as will produce the highest possible price for the facilities to be sold consistent with this Act, within 30 days of enactment of this section, the Secretary shall, through a competitive bidding process, retain an experienced private sector firm to serve as financial advisor to the Secretary with respect to such sales. (3) Financial advisor's report.--Within 90 days of being retained by the Secretary, the financial advisor shall provide to the Secretary a report containing-- (A) a description of those assets described in subsection (a) which, in the opinion of the financial advisor, can be successfully transferred to private sector ownership or operation; (B) the value of each such asset, calculated on the basis of the valuation method or methods which the financial advisor deems most appropriate to a particular asset; (C) the appropriate alternative transactional methods for transferring each such asset to private sector ownership or operation; (D) the amount of proceeds which the financial advisor estimates would be paid to the United States Government as a result of such transaction, including the present value of future revenue from taxes and any other future payments to be made to the United States Government; and (E) an estimate of the average market rate for wholesale electric power sales within each region served by a Federal Power Marketing Administration. (c) Time of Sale.--Sales of facilities under this section shall be conducted in accordance with the time of sale schedule set forth in section 4. At least one year before the date of any sale specified in such schedule, the Secretary, in consultation with the Secretary of the Army and the Secretary of the Interior, and based on the recommendations of the financial advisor, shall select the facilities or groups of facilities to be sold and establish the terms and conditions of the sale. (d) Former Employees of PMAS.--It is the sense of the Congress that the purchaser of any such facilities should offer to employ, where possible, former employees of the Federal Power Marketing Administrations in connection with the operation of the facilities following their purchase. (e) Proceeds.--The Secretary of Energy shall deposit sale proceeds in the Treasury of the United States to the credit of miscellaneous receipts. (f) Preparation.--The Secretary of Energy is authorized to use funds appropriated to the Department of Energy for the Federal Power Marketing Administrations and funds otherwise appropriated to other Federal agencies for power generation and related activities in order to prepare these assets for sale and conveyance. Such preparation shall provide sufficient title to ensure the beneficial use, enjoyment, and occupancy to the purchasers of the assets to be sold and shall include identification of all associated laws and regulations to be amended for the purpose of these sales. The Secretary of Energy shall undertake a study of the effect of sales of facilities under this Act on existing contracts for the sale of electric power generated at such facilities. (g) Reporting of Sales.--Not later than one year after the sale of the assets of each Federal Power Marketing Administration in accordance with this Act, the Secretary of Energy shall-- (1) complete the business of, and close out, such administration; and (2) prepare and submit to Congress a report documenting the sales. (h) Treatment of Sales For Purposes of Certain Laws.--The sales of assets under this Act shall not be considered a disposal of Federal surplus property under the following provisions of law: (1) Section 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484). (2) Section 13 of the Surplus Property Act of 1944 (50 U.S.C. App. 1622). SEC. 4. TIME OF SALES. (a) Schedule.--During the next 5 years, the Secretary of Energy shall complete the sale of the electric power generation and transmission assets referred to in section 3 in accordance with the following schedule: ------------------------------------------------------------------------ Power Administration Sale Completion Date ------------------------------------------------------------------------ Alaska Before September 30, 1996 Southeastern Before September 30, 1997 Southwestern Before September 30, 1998 Western Area Before September 30, 1999 Bonneville Before September 30, 2000 ------------------------------------------------------------------------ (b) Unexpended Balances.--Following the sale of the assets of each of the Federal Power Marketing Administrations and their associated power generation facilities, the Secretary of Energy shall return the unexpended balances of funds appropriated for that administration to the Treasury of the United States. SEC. 5. RATE STABILIZATION FOR AFFECTED CONSUMERS. So that the affected consumers of each Federal Power Marketing Administration are not impacted by severe rate increases, each purchaser of electric power generation facilities providing electric power to customers within any region shall be required, as part of the agreement to purchase such facilities, to insure that the price at which electric power is sold to such consumers does not increase above the baseline price at a rate greater than 10 percent annually. For purposes of this section, the term ``baseline price'' means the price for the sale of electric power to a consumer that is in effect on the date of the sale of the facility. The preceding sentence shall cease to apply when the price at which electric power is sold to a consumer is at least equal to the average market rate for wholesale electric power sales within the region concerned, as determined by the Financial Advisor. SEC. 6. LICENSING OF PROJECTS TO PRESERVE CURRENT OPERATING CONDITIONS. (a) Original License.--Simultaneously with the sale of hydroelectric generation facility under this Act, the Federal Energy Regulatory Commission shall issue an original license under part 1 of the Federal Power Act (16 U.S.C. 791a-823b) to the purchaser for the construction, operation, and maintenance of such facility. Such license shall expire on the date 10 years after the date of the sale facility and shall contain standard terms and conditions for hydroelectric power licenses issued under part 1 of such Act for facilities installed at Federal water projects, together with such additional terms and conditions as the Commission deems necessary, in consultation with the department or agency which operates such water project, to further the project purposes and insure that the project will continue operations in the same manner and subject to the same procedures, contracts, and other requirements as were applicable prior to the sale. The Commission shall publish such license terms and conditions for each facility to be sold under this Act as promptly as practicable after the date of the enactment of this Act but not later than one year prior to the date established for the sale of the facility. (b) License Required.--Notwithstanding any other provision of law, the Federal Energy Regulatory Commission shall have jursidiction under part 1 of the Federal Power Act over any hydroelectric generation facility sold under this Act. SEC. 7. ENABLING FEDERAL STUDIES. Section 505 of the Energy and Water Development Appropriations Act of 1993 (Public Law 102-377) is hereby repealed. SEC. 8. DEFINITION OF POWER GENERATION FACILITY. For purposes of this Act, the term ``power generation facility'' means a facility used for the generation of electric energy. If any portion of a structure or other facility is used for flood control, water supply or other purposes in addition to the generation of electric energy, such term refers only to that portion of the structure or facility used exclusively for the generation of electric energy, including turbines, generators, controls, substations, and primary lines used for transmitting electric energy therefrom to the point of juncture with the interconnected primary transmission system. Such term shall not include any portion of a facility used for navigation, flood control, irrigation, water supply, or recreation.
summary: Federal Power Asset Privatization Act of 1995 - Directs the Secretary of Energy to sell, at the highest possible price, all Federal electric power generation and transmission facilities supervised by, or coordinated with, the Federal Power Marketing Administrations. Restricts such sales to domestic entities or U.S. citizens. Requires the Secretary to terminate Federal Power Marketing Administration operations upon completion of the sales. Directs the Secretary to retain a private sector firm through a competitive bidding process to serve as financial advisor with respect to such sales. Expresses the sense of the Congress that the purchaser of any such facilities should offer to employ former Federal Power Marketing Administration personnel. Mandates that sale proceeds be deposited into the Treasury. Sets forth a sales completion deadline for each Power Marketing Administration. Mandates that the pertinent sales agreements require each purchaser providing electric power to customers within any region to insure that the price of electric power does not increase above the baseline price at a rate greater than ten percent annually. Directs the Federal Energy Regulatory Commission (FERC) to issue to the purchaser of a hydroelectric generation facility a ten-year original license under the Federal Power Act to insure that the project will continue operations under the same conditions as were applicable prior to the sale. Grants FERC Federal Power Act jurisdiction over any such facility sold. Amends the Energy and Water Development Appropriations Act of 1993 to repeal the proscription against the use of appropriated funds for studies regarding a changeover from an "at cost" to a "market rate" or other noncost-based methodology for pricing hydroelectric power.