Power Plant Reliability Act of 2025
Power Plant Reliability Act of 2025
Plain Language Summary
# Power Plant Reliability Act of 2025 - Summary **What the bill does:** This bill changes how the Federal Energy Regulatory Commission (FERC) can keep power plants operating when their closure might threaten the reliability of the electrical grid. Currently, only state utility commissions can ask FERC to keep a plant open. The bill would also allow transmission organizations (companies that manage the power lines connecting different regions) to make this request. If FERC agrees a plant is needed for grid reliability, it can order the plant to stay open for up to five years, with possible extensions. **Who it affects:** Power plant owners, regional transmission organizations, electricity consumers, and state utility commissions.
The bill could potentially keep older or less profitable power plants operating longer than market forces alone would support, which could affect energy prices and grid stability. **Key provisions:** FERC must act if a power plant's closure would make electricity service inadequate within five years. The agency can set whatever rates or charges are necessary to keep the plant running. Both state commissions and transmission organizations can request extensions beyond the initial five-year period. **Status:** The bill has passed the House of Representatives and awaits Senate consideration.
CRS Official Summary
Power Plant Reliability Act of 2025This bill modifies the process that the Federal Energy Regulatory Commission (FERC) uses to determine, upon a complaint from a state commission, whether a public utility (i.e., power plant) must remain open because the retirement of the power plant will make the bulk power system unreliable, including by allowing transmission organizations to also file complaints with FERC.If FERC finds that any interstate service of any public utility is inadequate or insufficient, or is likely to become inadequate or insufficient within five years of receiving such complaint, then FERC must determine the proper, adequate, or sufficient service to be furnished through an order, rule, or regulation (order).The bill specifies that FERC may order a power plant to remain open for up to five years. Any affected state commission, transmission organization, or power plant may request that FERC extend such order.A FERC order must determine (1) any rate or charge necessary to provide compensation for the additional costs of the service, and (2) the cost allocation of any rate or charge.A power plant owner or operator must notify FERC and affected state commissions or transmission organizations at least five years before any planned retirement of a unit of an electric generating facility except in the case of an emergency or similar event that renders a unit inoperable.The bill exempts from federal, state, and local environmental laws and regulations any action taken by a generating facility to comply with such orders.
Latest Action
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.