summary
Introduced
04/28/2015
04/28/2015
In Committee
05/15/2015
05/15/2015
Crossed Over
Passed
Dead
01/03/2017
01/03/2017
Introduced Session
114th Congress
Bill Summary
Public Power Risk Management Act of 2015 Amends the Commodity Exchange Act to direct the Commodity Futures Trading Commission (CFTC), when it determines whether to provide an exemption to designation as a swap dealer, to treat a utility operations-related swap entered into with a utility special entity as if such swap were entered into with an entity that is not a special entity. (Thus exempts an entity entering into a utility operations-related swap with a utility special entity from mandatory registration as a swap dealer.) Requires transactions in utility operations-related swaps to be reported according to requirements for the reporting of uncleared swaps. Defines "utility special entity" as a special entity, or any instrumentality, department, or corporation of or established by a state or local government, that: (1) owns or operates, or anticipates owning or operating, an electric or natural gas facility or an electric or natural gas operation; (2) supplies or anticipates supplying natural gas or electric energy to another utility special entity; (3) has or anticipates having public service obligations under federal, state, or local law or regulation to deliver electric energy or natural gas service to customers; or (4) is a federal power marketing agency. Redefines swap to include a utility operations-related swap. Defines "utility operations-related swap" as one that: (1) is entered into to hedge or mitigate commercial risk; (2) is associated with specified transactions in electric energy or natural gas; and (3) is not a contract, agreement, or transaction based on, derived on, or referencing: an interest rate, credit, equity, or currency asset class; a metal, agricultural commodity, or crude oil or gasoline commodity of any grade, except as used as fuel for electric energy generation; and any other commodity or category of commodities identified for this purpose in a CFTC rule or order adopted in consultation with federal and state regulatory commissions.
AI Summary
This bill, the Public Power Risk Management Act of 2015, aims to provide specific treatment for certain financial contracts known as "swaps" when they are used by entities involved in public power operations. A "swap" is generally an agreement between two parties to exchange financial cash flows or liabilities from two different financial instruments, and in this context, a "utility operations-related swap" is defined as a swap used to manage commercial risks associated with the generation, purchase, sale, or supply of electricity or natural gas, or related to fuel for power generation or compliance with energy regulations. The bill clarifies that a "utility special entity" includes government-owned or operated electric or natural gas facilities, entities supplying energy to other such entities, those with public service obligations, or federal power marketing agencies. The key provision is that when a "utility special entity" enters into a "utility operations-related swap," the Commodity Futures Trading Commission (CFTC), the regulatory body overseeing these markets, will not require the entity to register as a "swap dealer," which is an entity that regularly enters into swaps. This exemption is granted by treating the swap as if it were with an entity that is not a "special entity," thereby easing regulatory burdens for these public power entities. Additionally, transactions involving these utility operations-related swaps will be reported according to the rules for uncleared swaps.
Committee Categories
Agriculture and Natural Resources, Budget and Finance
Sponsors (4)
Last Action
Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit. (on 05/15/2015)
Official Document
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