A bill to amend the Federal Power Act and the Public Utility Regulatory Policies Act of 1978 to place electric utilities, including members of registered holding company systems, on the same basis as nonutilities with respect to encouraging their investment in cogeneration and small power production facilities, and for other purposes.

Amends the Federal Power Act to eliminate utility ownership limitations on qualifying small power production facilities and cogeneration facilities.

Amends the Public Utility Regulatory Policies Act of 1978 to require the exemption of investments or interests in small power production facilities or cogeneration facilities from the Federal Power Act, the Public Utility Holding Company Act, or State laws with respect to the rates or the financial or organizational regulation of electric utilities if such exemption is necessary to encourage cogeneration or small power production.