Bill Summary
The "Power Plant Reliability Act of 2025" amends the Federal Power Act to enhance the reliability of electric service by requiring owners or operators of certain electric generating units to provide advance notice of planned retirements. Key provisions include:
1. **Adequate Service Requirements**: The Act empowers the Federal Energy Regulatory Commission (FERC) to determine and mandate necessary actions to ensure adequate interstate electric service if a complaint is received about its inadequacy. This could involve requiring the continued operation of certain generating units but prohibits forcing utilities to enlarge facilities or sell energy if it would compromise service.
2. **Advance Notice of Retirements**: Operators must notify FERC and relevant state commissions at least five years in advance of plans to retire significant electric generating units (those with a capacity of at least 5 megawatts). This requirement aims to prevent sudden disruptions in service.
3. **Exceptions for Unplanned Retirements**: The notice requirement does not apply to unexpected retirements due to emergencies or disasters.
4. **Public Access to Notices**: The Commission is tasked with making these retirement notices publicly available, enhancing transparency.
5. **Environmental Compliance Protection**: Actions taken to comply with the Commission's orders under this Act will not be deemed violations of environmental laws, shielding operators from liability in such cases.
Overall, the legislation seeks to improve the reliability and planning of the power grid while balancing the operational needs of electric utilities with environmental considerations.
Possible Impacts
The Power Plant Reliability Act of 2025 could affect people in several ways:
1. **Stability of Electricity Supply**: By requiring public utilities to provide advance notice of planned retirements of electric generating units, the legislation aims to prevent sudden disruptions in electricity supply. This ensures that consumers, businesses, and essential services can plan accordingly, reducing the risk of blackouts and ensuring a more stable and reliable electricity grid. For example, if a major power plant plans to retire its operations, utilities will have time to arrange for alternative energy sources or upgrade infrastructure to meet demand.
2. **Economic Impact on Utility Operations**: The Act allows the Commission to mandate that certain generating units continue operation if deemed necessary for providing adequate service. This could affect the financial stability of utility companies and their ability to manage operational costs. For instance, if a utility is forced to keep an older, less efficient plant running, it may incur higher operational costs, which could eventually lead to increased electricity rates for consumers as the costs are passed down.
3. **Environmental Regulatory Flexibility**: The legislation provides certain protections for utilities regarding compliance with environmental laws when following orders from the Commission. This means that if a utility needs to continue operating a generating unit to meet service requirements, they may not face penalties for environmental compliance issues that arise as a result. This could lead to concerns among environmental advocates and local communities about the potential for increased pollution or delayed transitions to cleaner energy sources, impacting public health and local environments.
These examples illustrate how the Power Plant Reliability Act of 2025 could have wide-ranging implications for consumers, utility companies, and environmental considerations.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3632 Referred in Senate (RFS)]
<DOC>
119th CONGRESS
1st Session
H. R. 3632
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 17, 2025
Received; read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
AN ACT
To amend the Federal Power Act to adjust the requirements for orders,
rules, and regulations relating to furnishing adequate service, to
require owners or operators of generating facilities to provide notice
of planned retirements of certain electric generating units, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Power Plant Reliability Act of
2025''.
SEC. 2. FURNISHING OF ADEQUATE SERVICE; ADVANCE NOTICE OF PLANNED
RETIREMENTS.
Section 207 of the Federal Power Act (16 U.S.C. 824f) is amended to
read as follows:
``SEC. 207. FURNISHING OF ADEQUATE SERVICE; ADVANCE NOTICE OF PLANNED
RETIREMENTS.
``(a) Furnishing of Adequate Service.--
``(1) In general.--Whenever the Commission, upon complaint
of a State commission or a Transmission Organization, after
notice to each State commission and public utility affected,
and after opportunity for hearing within 90 days of receipt of
such complaint, finds that any interstate service of any public
utility is inadequate or insufficient, or is likely to become
inadequate or insufficient within 5 years of receiving such
complaint, the Commission shall determine the proper, adequate,
or sufficient service to be furnished, and shall fix the same
by issuing an order, rule, or regulation.
``(2) Requirements.--The Commission, in an order, rule, or
regulation issued under paragraph (1)--
``(A) may not--
``(i) compel the enlargement of generating
facilities; or
``(ii) compel the public utility to sell or
exchange electric energy when to do so would
impair its ability to render proper, adequate,
or sufficient service to its customers;
``(B) may require--
``(i) continuing the operation of an
electric generating unit; and
``(ii) any affected State commission,
Transmission Organization, or public utility to
develop and implement a long-term plan for the
planning, construction, and operation of
interstate transmission facilities that may be
necessary for the public utility to provide
adequate and sufficient interstate service; and
``(C) shall determine--
``(i) any rate or charge necessary to
provide compensation for the additional costs
of the proper, adequate, or sufficient service
to be furnished, including compensation to an
owner or operator of an electric generating
unit that is required to continue to operate
under such order, rule, or regulation; and
``(ii) the cost allocation of any rate or
charge.
``(3) Term length.--Except as provided in paragraph (4), an
order, rule, or regulation issued under paragraph (1) shall
terminate on the date that the Commission determines
appropriate, which may not be later than 5 years after the date
on which the Commission issues such order, rule, or regulation.
``(4) Extension.--
``(A) Request for extension.--Not earlier than the
date that is 180 days prior to the date on which an
order, rule, or regulation terminates, as determined
under paragraph (3), and not later than 60 days prior
to such termination date, any affected State
commission, Transmission Organization, or public
utility may submit to the Commission a request to
extend such order, rule, or regulation.
``(B) Deadline.--With respect to a request
submitted under subparagraph (A), the Commission
shall--
``(i) not later than 14 days after the date
on which the Commission receives the request,
notify each affected State commission,
Transmission Organization, and public utility
of the request;
``(ii) provide an opportunity for a hearing
on the request before accepting or denying the
request under clause (iii); and
``(iii) not later than 60 days after the
date on which the Commission receives the
request--
``(I) accept the request and extend
the applicable order, rule, or
regulation; or
``(II) deny the request.
``(C) Term length.--An order, rule, or regulation
extended under subparagraph (B) shall terminate on the
date that the Commission determines appropriate, which
may not be later than 5 years after the date on which
the Commission extended such order, rule, or
regulation.
``(5) Treatment of certain actions.--To the extent an
omission or action taken by a party, that is necessary to
comply with an order, rule, or regulation issued or extended
under this subsection, including any omission or action taken
to voluntarily comply with such order, rule, or regulation,
results in noncompliance with, or causes such party to not
comply with, any Federal, State, or local environmental law or
regulation, such omission or action shall not be considered a
violation of such environmental law or regulation, or subject
such party to any requirement, civil or criminal liability, or
a citizen suit under such environmental law or regulation.
``(b) Advance Notice of Planned Retirements.--
``(1) In general.--If an owner or operator of a generating
facility plans to retire an electric generating unit that is a
component of such facility, such owner or operator shall submit
to the Commission and any affected State commission or
Transmission Organization a notice of such plan at least 5
years before the date on which such owner or operator plans to
retire such electric generating unit.
``(2) Unplanned retirements.--An owner or operator of a
generating facility that retires an electric generating unit
due to an unplanned catastrophe, emergency, disaster, or
similar event that renders such electric generating unit
inoperable is not subject to the notice requirement described
in paragraph (1).
``(3) Publicly available.--The Commission shall make
publicly available each notice submitted under paragraph (1).
``(c) Definitions.--In this section:
``(1) Bulk-power system.--The term `bulk-power system' has
the meaning given such term in section 215(a).
``(2) Electric generating unit.--The term `electric
generating unit' means an electric energy producing unit that--
``(A) is a component of a generating facility;
``(B) has a power production capacity of not less
than 5 megawatts; and
``(C) is interconnected to the bulk-power system.
``(3) Retire.--The term `retire', with respect to an
electric generating unit, means to, for an indefinite period of
time--
``(A) idle the electric generating unit;
``(B) disconnect the electric generating unit from
the bulk-power system; or
``(C) otherwise make unavailable for sale all
electric energy that is generated by the electric
generating unit.''.
Passed the House of Representatives December 16, 2025.
Attest:
KEVIN F. MCCUMBER,
Clerk.