Federal standard relating to additive generation for large-load customers

Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)), as amended by section 101 of this Title, is further amended by adding at the end the following: (23) Additive generation for large-load customers (A) In general Each electric utility shall consider the establishment of rates, contracts, tariffs, service agreements, or other mechanisms under which service to a large-load customer is encouraged or required to develop, acquire, finance, or contractually dedicate new or incremental generation resources sufficient to serve the projected load of such large-load customer and, where feasible, to provide additional capacity, energy, capacity attributes, or other resource benefits for the benefit of other customers. (B) Additive generation incentive In carrying out subparagraph (A), including as a means of satisfying or supplementing the standard described in paragraph (22), each electric utility shall consider mechanisms under which any capacity, energy, capacity attributes, or other resource benefits in excess of the projected load of such large-load customer may be made available, through long-term contracts or other market-based mechanisms, to load-serving entities serving residential, agricultural, small business, or other existing customers. (C) Flexible implementation A State regulatory authority, with respect to each electric utility for which the State regulatory authority has ratemaking authority, and each nonregulated electric utility may implement the standard under this paragraph through— (i) physical allocation of generating capacity; (ii) long-term power purchase agreements; (iii) contractual or financial arrangements; (iv) market-based mechanisms; (v) tariff conditions or special contracts for large-load customers; or (vi) any other mechanism determined appropriate by the State regulatory authority or nonregulated electric utility. (E) No mandatory resource allocation Nothing in this paragraph shall be construed to require a State regulatory authority or nonregulated electric utility to mandate the physical allocation of generating capacity or to require a uniform percentage set-aside of new or incremental generation resources. (F) Large-load customer defined In this paragraph, the term large-load customer has the meaning given such term in paragraph (22)(C)..