To amend the Federal Power Act to authorize the Federal Energy Regulatory Commission to disallow recovery of certain costs incurred by public utilities pursuant to transactions authorized under section 13(b) of the Public Utility Holding Company Act of 1935, and for other purposes.

Amends the Federal Power Act to authorize the Federal Energy Regulatory Commission to disallow recovery in jurisdictional rates of certain costs incurred by a public utility if it determines that recovery of such costs would be inconsistent with the requirements of the Federal Power Act.

Declares that in any Commission proceeding to consider recovery of such costs there shall be a rebuttable presumption that the costs are just, reasonable, and neither unduly discriminatory nor preferential.