Electricity Competition Act of 1996

Electricity Competition Act of 1996 - Declares that: (1) the regulatory authority of the Federal Energy Regulatory Commission (FERC) under the Public Utility Regulatory Policies Act of 1978 with respect to cogeneration and small power production shall not apply to any facility which begins commercial operation after the effective date of this Act, except a facility for which a power purchase contract entered into under such authority was in effect on such date); and (2) no electric utility shall be required to enter into a new contract or obligation to purchase from or sell electric energy to qualifying cogeneration and small power facilities. (Sec. 4) Mandates that each State regulatory authority initiate proceedings regarding its regulated retail electric utilities to examine and consider: (1) requirements which establish competitive electricity procurement markets that meet specified statutory requirements; (2) a retail access plan which requires all State regulated retail electric utilities to provide nondiscriminatory and unbundled local distribution services to all their electric consumers so that they may choose among competing electric energy suppliers by a certain deadline; and (3) an alternative plan which meets certain statutory requirements. Sets a deadline by which State regulatory bodies must select and begin implementation of competitive electric options. Requires each nonregulated retail electric utility to examine and consider: (1) procedures for the acquisition of new contract electricity and new generating sources that meet specified statutory requirements; (2) a retail access plan which provides nondiscriminatory and unbundled local distribution services to all their electric consumers so that such consumers may choose among competing electric energy suppliers by a certain deadline; and (3) an alternative plan which meets certain statutory requirements. Sets a deadline by which such utilities must select and begin implementation of competitive electric options. (Sec. 5) Permits the procedures established by a State regulatory authority or nonregulated retail electric utility pursuant to this Act to apply to all or part of the new contract electricity and new generating sources to be procured. Sets forth minimum requirements for such new procedures. (Sec. 6) Mandates that the alternative plans adopted pursuant to this Act ensure: (1) that any State regulated retail electric utility within the State may not unduly discriminate in favor of its own or an affiliate's sources of generation supply, or engage in other forms of self-dealing; and (2) that any above market costs of new renewable electric generation are allocated on a non-discriminatory basis to all electric consumers of regulated retail electric utilities within the State, so that no consumer (or class of consumers) is required, without express consent, to subsidize the costs of such new renewable electric generation to the advantage of other consumers. (Sec. 7) Exempts from the requirements of this Act State regulatory authorities and nonregulated retail electric utilities that have adopted analogous procedures. (Sec. 8) Declares that beginning on January 1, 2010, no retail electric utility shall prohibit any electric consumer from purchasing nondiscriminatory and unbundled local distribution service, or otherwise prohibit consumers from choosing among competing electric energy suppliers. Sets forth review and enforcement mechanisms. (Sec. 11) Amends the Federal Power Act to authorize FERC to order, or condition orders upon, the transmission of electric energy to an ultimate consumer if delivery would be accomplished through the provision of unbundled local distribution services under this Act. Declares that a State regulatory authority is not precluded from requiring an electric utility to provide local distribution service to a consumer. Directs FERC to provide for the recovery of all stranded costs incurred by any utility transmitting or distributing electric energy not sold by it or its affiliates, including customer service costs not fully recovered at the time of distribution or transmission. Directs FERC to permit the recovery of all stranded costs to the extent a State or State regulatory authority requiring the provision of unbundled local distribution service has not permitted the recovery of all such costs in rates or lacks authority under State law to permit such recovery. Authorizes FERC to determine rates for the provision of unbundled local distribution service by a utility solely as necessary to permit recovery of stranded costs. Prohibits any retail electric utility (or affiliate) from selling electric energy to or for the benefit of the ultimate consumer if its delivery will be accomplished through the provision of unbundled local distribution service by another utility, unless such retail electric utility is itself providing unbundled local distribution service under this Act. (Sec. 12) Mandates that FERC and State regulatory authorities authorize and ensure the recovery of all costs associated with Federal and State requirements for the decommissioning of nuclear generating units. (Sec. 13) Amends the Bankruptcy Reform Act of 1978 to recognize as a creditor's administrative expense any costs incurred in complying with Nuclear Regulatory Commission regulations governing decontamination and decommissioning of licensed nuclear power reactors (regardless of whether such costs are reduced to a fixed amount).