A bill to authorize the Federal Energy Administration to enter into an agreement with the Tennessee Valley Authority to carry out an experimental rate design project.

Directs the Federal Energy Administrator to contract with the Tennessee Valley Authority for the operation of a pilot project for the purpose of determining: (1) the economic efficiency and energy conservation resulting from peak load pricing; (2) the efficiency and practicability of a lifeline rate as a means of providing subsidized or low-cost power to low-income individuals; and (3) the efficiency, conservation benefits, or practicability of any other methods of rate design which the Tennessee Valley Authority and the Federal Energy Administration find to warrant further study.

Directs the Tennessee Valley Authority to issue a report of the results of such project to Congress, along with recommendations.

Authorizes the appropriation of not in excess of $750,000 to carry out the purposes of this Act.