Federal Power Asset Privatization Act of 1997

Federal Power Asset Privatization Act of 1997 - 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.