Committee on Energy and Natural Resources. Hearings held. Hearings printed: S.Hrg. 114-65.
Congressional Research Service
Official summary
Version 00 · Introduced in Senate · May 6, 2015
Free Market Energy Act of 2015
This bill amends the Federal Power Act to identify the elements of a distributed energy resource, including fuel cells, microgrids, and combined heat and power systems.
Distributed energy resources shall have a general right of interconnection under the Public Utility Regulatory Policies Act of 1978 (PURPA), and all rates and fees for interconnection shall provide for the two-way benefit for the distributed energy resource and the electricity grid.
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Each state regulatory authority shall consider requiring that distributed energy resources be eligible to receive just and reasonable energy and rate treatment for time-of-use pricing and other specified features and values.
A state regulatory authority or nonregulated electric utility acting under state authority must consider specified interconnections standards that include:
setting rates that exceed the incremental cost of alternative electric energy for purchases from any distributed energy resource that is a qualifying facility for electricity generated, demand reduced, or service provided by the qualifying facility interconnected under this Act; and
making any distributed energy resource project exempt from filing requirements with the Federal Energy Regulatory Commission (FERC).
A state regulatory authority must also consider:
designation, through a competitive process, of a regulated utility, other party, or a combination of regulated utilities and other parties to be a smart grid coordinator or distribution system operator for the state; and
nontransmission alternatives when a regulated utility proposes transmission projects.
Source last updated: Sep 8, 2026. Consult Congress.gov for the current record.
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