Electric Utilities Rates Reform Act

Electric Utilities Rate Reform Act - Sets forth Congressional findings and purposes, and defines the terms used in the Act.

Directs State and local electric utility regulatory authorities to implement and maintain rate schedules which distribute costs to customer classes in accordance with the costs these classes impose on utilities by their consumption patterns.

Provides that no regulatory authority, for ratemaking purposes, may allow recoupment of promotional and advertising expenses, unless such expenses finance efforts encouraging the conservation of electricity or the shifting of the consumption of electricity from peak load periods to off-peakload periods.

Provides that no regulatory authority may allow or otherwise make lawful, as part of any rate schedule, a fuel adjustment clause permitting monthly changes in the utility's lawful rate equal to the changes in the cost to the utility of generating fuels, including all applicable taxes, tariffs, or similar charges without: (1) requiring prior notice of the changed cost of fuel and the adjusted rate before any rate change can be implemented; (2) public proceedings to establish that the utility continually manages fuel purchases, uses, and generating facilities prudently and efficiently; (3) such rate adjustments distributing fuel costs and charges consistently with the standards established in this Act; and (4) reserving the power to subsequently determine that the adjusted rates or parts thereof are unlawful and subject to refund.

Authorizes the Federal Power Commission to make grants to non-Federal regulatory authorities, in accordance with regulations established by the Commission, in such amounts as are necessary to compensate such authorities for additional costs incurred in complying with the provisions of this Act.

Authorizes to be appropriated such amounts as are necessary to make such grants.