Electric Power Competition Act of 1996

TABLE OF CONTENTS: Title I: Suspension of Public Utility Regulatory Policies Act Provisions Title II: Standards of Competition for Electric Utilities Title III: Antitrust Laws Electric Power Competition Act of 1996 - Title I: Suspension of Public Utility Regulatory Policies Act Provisions - Amends the Public Utility Regulatory Policies Act of 1978 to provide that if an electric utility has received a Certification of Completion from a State regulatory authority: (1) provisions requiring utilities to offer to purchase electric energy from qualifying cogeneration facilities and qualifying small power production facilities shall be suspended; and (2) for the duration of power purchase arrangements entered into during the period of any such suspension, the rates for such purchase shall not be dependent on the incremental cost to the utility of alternative energy. Specifies that nothing in: (1) the Act authorizes the Federal Energy Regulatory Commission (FERC), a State regulatory authority, or any utility to reopen, alter, force the renegotiation of, or interfere with the enforcement of any power purchase arrangements between a qualifying cogeneration facility or qualifying small power production facilities and a utility purchaser; and (2) the Act, the Federal Power Act, or other Federal law prevents a State authority from favoring or disfavoring particular types of generation in its determination of the incremental cost to a purchasing utility of alternative electric energy. Title II: Standards of Competition for Electric Utilities - Authorizes a State regulatory authority to voluntarily elect to issue a State certification of compliance with standards and requirements of competition to a State regulated utility for which it has ratemaking authority. Directs FERC, after notice and opportunity for hearing, to establish criteria for the certification by a State regulatory authority that a State regulated utility for which it has ratemaking authority has met: (1) the minimum certification requirements under the Act; (2) either the Federal retail competition standard, or the Federal divestiture standard (established by this Act); and (3) such other requirements as FERC shall prescribe consistent with the public interest and the purposes of the Act. Specifies that a State regulated utility meets the retail competition standard if the State regulatory authority which has ratemaking authority over such utility determines, in accordance with specified criteria and procedures, that: (1) the utility permits competition in retail sales of electric energy to all consumers within its service territory; (2) the opportunity to build, own, and operate all new generating capacity approved by a State regulatory authority is open to competition by all sources; and (3) the utility does not gain any advantage over other competitors by virtue of its status as a regulated buyer and seller of electricity in its service territory. Requires that such certification be withdrawn if the State regulatory authority finds that: (1) a utility affiliate is competing unfairly by using assets, goods, or services obtained from the utility at a price below the market value; or (2) the utility or its affiliate has discriminatory access to any asset, service, or information which would be helpful to a competitor where the access is attributable to the utility's status as a regulated integrated monopoly or the asset or information is an essential facility that is not economically duplicable by a competitor. Specifies that a State regulated utility that is an integrated utility that owns or controls a monopoly distribution franchise, monopoly transmission facilities, or both, meets the divestiture standard of competition if the State regulatory authority which has ratemaking authority over such utility determines, in accordance with specified criteria and procedures, that the utility has: (1) divested itself of all existing generation facilities and is prohibited under State law from acquiring ownership or control of any generation facilities for as long as it owns or controls a monopoly distribution franchise or transmission facilities; and (2) in the case of a utility that owns or controls transmission facilities, adopted open access transmission tariffs that have been approved as just, reasonable, and not unduly preferential. Prohibits a State regulatory authority from issuing any such certification of competition to a utility unless the authority has determined that: (1) all suppliers of energy services to the utility or to electricity consumers in its service territory have the incentive and opportunity to provide energy-efficiency and renewable energy resources that are less costly on a life-cycle basis than displaced generation; (2) non-bypassable charges on use of, or access to, the local distribution services or facilities of the utility are in effect and adequate to ensure sustained and equitable allocation of costs associated with low-income services and other investments; (3) any systems of retail competition among electric-service suppliers are structured to protect customers from price discrimination or undue price increases and to ensure that no customer class can avoid its equitable share of the electric utility's legitimate and verifiable stranded costs; and (4) under applicable State laws and regulations, any recovery of sunk costs associated with existing generation assets is not contingent on continued operation of the generation assets for which recovery is approved. Title III: Antitrust Laws - Bars utilities exercising monopoly functions under State regulation from using the "State action" doctrine as a defense against charges of anticompetitive behavior in unregulated generation markets.