ABSTRACT

Congressional Budget Office Cost Estimate: H.R. 4427: An Act to Amend Section 203 of the Federal Power Act   [open pdf - 95KB]

"Under the Federal Power Act, the Federal Energy Regulatory Commission (FERC)oversees and regulates interstate transmission of electricity, natural gas, oil, and a varietyof other energy-related activities. Under section 203 of that act, public utilities subject to itsprovisions must seek FERC's approval before engaging in certain transactions, includingcorporate mergers and consolidations of facilities. Currently, FERC must review all suchmergers and consolidations. H.R. 4427 would amend that section to specify that onlymergers and consolidations involving facilities valued at more than $10 million wouldrequire FERC's approval.CBO [Congressional Budget Office] estimates that implementing H.R. 4427 would have no significant net effect on thefederal budget. Based on information from FERC about average annual costs to reviewmergers and consolidations under current law, CBO estimates that specifying a minimumthreshold for such reviews would reduce the agency's administrative costs by less than$150,000 annually. However, because FERC recovers 100 percent of its costs through userfees, any change in that agency's costs (which are controlled through annual appropriationacts) would be offset by an equal change in fees that the commission charges, resulting inno net change in federal spending."

Publisher:
Date:
2016-03-21
Copyright:
Public Domain
Retrieved From:
Congressional Budget Office: http://www.cbo.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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