Electric Consumer Protection Act of 1986

(Conference report filed in House, H. Rept. 99-934)

Electric Consumers Protection Act of 1986 - Amends the Federal Power Act to require the Federal Energy Regulatory Commission (the Commission) to give preference to State and municipal applicants when issuing original licenses for hydroelectric projects.

Directs the Commission, when issuing such licenses, to give equal consideration to: (1) energy conservation; (2) fish and wildlife protection; (3) recreational opportunities; and (4) environmental quality. Requires that licenses be granted upon the condition that the project adopted shall, in the judgment of the Commission, be the one best adapted to a comprehensive plan which encompasses: (1) fish and wildlife protection (including spawning grounds and habitat); and (2) irrigation, flood control and water supply. Requires the Commission to consider when making such judgment: (1) the extent to which a project is consistent with a comprehensive plan for waterways; (2) the recommendations of governmental agencies; (3) the recommendations of Indian tribes affected by the project; and (4) the electricity consumption efficiency improvement program of specified applicants. Requires the Commission to solicit recommendations from such agencies and Indian tribes upon the receipt of a license application.

Requires such licenses to include conditions for the protection and enhancement of fish and wildlife based upon recommendations received from certain fish and wildlife agencies.

Prescribes the criteria governing the relicensing process, and directs the Commission to: (1) ensure that insignificant differences betweeen competing applicants shall be neither determinative nor result in the transfer of a project; (2) consider the long and short term needs of the applicant for the electricity to serve its customers; and (3) take into consideration the effect of the transfer of a project on the direct providers (and their immediate customers) of alternative or replacement power. Prohibits the Commission, when issuing a new license to an applicant which is not the existing licensee, from: (1) compelling an existing licensee to acquire new facilities as a condition of providing transmission services, unless such acquisition constitutes a reasonable improvement of existing facilities controlled by the existing licensee; (2) causing any reasonably quantifiable increase in the jurisdictional rates of the existing licensee; or (3) ordering any entity other than the existing licensee to provide transmission or other services.

Repeals the requirement that the Commission entertain new license applications no earlier than five years before the expiration of an existing license.

Requires the Commission to review all provisions of the Federal Power Act requiring an action within a 30-day period and (as the Commission deems appropriate) to require such period to mean working days rather than calendar days.

States that new licenses must be issued for a minimum term of 30 years, and for a maximum term of 50 years.

Prohibits any significant modification of licensed projects unless such modification is authorized in accordance with an issued license or exemption and the requirements of the Federal Power Act.

Prohibits the Commission from granting any exemptions from the Federal Power Act to State or local governments operating a conduit hydroelectric facility exceeding 40 megawatts solely for municipal water supply purposes.

Directs the Commission to establish license application fees which are adequate to reimburse fish and wildlife agencies for their costs in implementing the compliance provisions of this Act.

Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to preclude a facility requiring a natural watercourse diversion by means of a new dam or diversion from being treated as a qualifying small power production facility unless: (1) its contract terms protect fish and wildlife; (2) the Commission finds such facility will not have a substantial adverse effect upon the environment; and (3) the Commission determines its location is not upon a State or national wild and scenic river system, or any otherwise unique watercourse which a State has determined would be adversely affected by hydroelectric development. States that such fish and wildlife and other environmental requirements will not apply if the license or exemption application was filed before the enactment of this Act and accepted for filing by the Commission within three years after such enactment. States that the fish and wildlife requirements shall not apply for projects where the license or exemption application was filed after enactment of this Act if the applicant demonstrates the commitment of substantial monetary resources directly related to the project, and to the timely completion of all filing requirements acceptable to the Commission prior to the date of enactment of this Act.

Requires the Commission to conduct a study to determine whether the benefits relating to cogeneration and small power production plants should be applied to small power production facilities using new dams or water diversion systems. Requires the submittal of such study to specified congressional committees.

Establishes a moratorium period (beginning on the date of enactment of this Act and ending at the expiration of the first full session of Congress after the session during which such study has been submitted) during which PURPA shall not apply to cogeneration or small power projects, with specified exceptions, for which a license or exemption is issued after the enactment of this Act if such projects utilize a new dam or diversion.

Prescribes the charges to be paid by licensees for the use of Federal dams and related structures.

Lists those relicensing procedures initiated prior to October 1983 which are subject to the provisions of this Act. Outlines the election and negotiation procedures for contested hydroelectric projects subject to litigation.

Exempts from the provisions of this Act certain proceedings relating to the Merwin Dam in Washington State.

Directs the Commission to monitor and investigate applicant compliance with the terms granted under a license or exemption, and authorizes the Commission to issue revocations and to assess civil penalties for violations.

Requires the inclusion of antitrust provisions in any licenses issued by the Commission under this Act.

Requires license applicants to timely notify certain persons who have an interest or are affected by the property within the bounds of the project.

Prohibits the Commission from issuing any license or exemption for any hydroelectric power project located at Lake Tuscaloosa (Alabama), unless the Commission is authorized to do so by law enacted after the enactment of this Act.

Authorizes the Commission to extend the time limitations for construction and for the acquisition of real property for specified projects. Terminates such authorization three years after enactment of this Act.

Prohibits the Commission, with specified exceptions, from issuing any license or exemption for any project proposed for the Henry's Fork of the Snake River (Idaho), unless authorized by law enacted after the enactment of this Act.