Power Plant Reliability Act of 2025
The Power Plant Reliability Act of 2025 would amend the Federal Power Act to (1) tighten and clarify how the Federal Energy Regulatory Commission (the Commission) determines and enforces “adequate service” for interstate electric power, including how costs are recovered, and (2) require owners or operators of generating facilities to give advance notice before retiring certain electric generating units. The changes are aimed at improving planning and transparency to maintain reliable electricity supply, while preserving the Commission’s ability to ensure service without mandating plant enlargements or forcing energy sales that would harm reliability. The bill also creates a defined process for extending Commission orders that guide how service is provided and paid for, subject to hearings and time limits. In short, the bill seeks to improve reliability through enhanced planning, cost recovery, and advance retirements notice, with specific rules for how orders can be issued, extended, and terminated.
Key Points
- 1Advance notice of planned retirements: Owners or operators of generating units must notify the Commission and affected state commissions or Transmission Organizations at least 5 years before retirement. Unplanned retirements due to catastrophes are exempt. Notices must be publicly available.
- 2Adequate service standard and remedies: When the Commission finds interstate service inadequate or likely to be inadequate within 5 years, it must determine the proper level of service and issue an order, rule, or regulation. The order can require continued operation of a unit and the development of long-term plans for necessary interstate transmission, but cannot compel enlarging generating facilities or forcing energy sales if doing so would impair service.
- 3Cost recovery and rate setting: The Commission must determine any rates or charges needed to compensate for the additional costs of providing adequate service, including compensation to owners or operators required to keep units running under the order, and determine how these costs should be allocated.
- 4Time limits and extensions for orders: Normally, an order issued under the “adequate service” provision expires within up to 5 years. Extensions can be requested starting 180 days before expiration and no later than 60 days before expiration. The Commission must notify, hold a hearing if requested, and decide within 60 days whether to extend. Extended orders may also run for up to 5 years beyond the extension.
- 5Environmental compliance protection: Actions necessary to comply with these orders or extensions that could intersect with environmental laws are not considered violations or grounds for liability under those environmental laws.
- 6Definitions: The bill defines “bulk-power system,” “electric generating unit” (at least 5 MW and interconnected to the bulk-power system), and “retire” (idle, disconnect, or otherwise make unavailable for sale energy for an indefinite period).