HR3632-119

What This Bill Does

The Power Plant Reliability Act of 2025 expands FERC authority over electric generating units. Upon a complaint by a state commission or transmission organization, and after notice to affected state commissions and public utilities plus a hearing opportunity within 90 days, FERC may find that interstate service is inadequate or insufficient or likely to become so within five years. FERC must then determine adequate service and may issue an order, rule, or regulation requiring continued operation of an electric generating unit. It may require affected state commissions, transmission organizations, or public utilities to develop and implement long-term plans for needed interstate transmission facilities. FERC must determine compensation for additional costs, including compensation to owners or operators required to keep a unit operating, and allocate those costs. Orders can last up to five years and can be extended through a request, notice, hearing, and 60-day decision process. Actions or omissions necessary to comply with a FERC order are not treated as violations of federal, state, or local environmental law and cannot trigger civil or criminal liability or citizen suits. Owners must provide FERC, affected state commissions, and transmission organizations at least five years' notice before planned retirement of covered generating units, with an exception for unplanned catastrophes, emergencies, disasters, or similar events.

Who Benefits and How

Coal plant operators, natural gas plant operators, nuclear plant operators, power plant owners receiving compensation, regional transmission organizations, state utility commissions, grid reliability planners, industrial electricity customers, and consumers concerned about generation shortages benefit because the bill creates a federal mechanism to keep plants online, pay continued-operation costs, plan related transmission, and prevent retirements that FERC finds would undermine adequate interstate service.

Who Bears the Burden and How

Federal Energy Regulatory Commission staff, power plant owners seeking retirement, renewable-energy developers, battery-storage developers, environmental regulators, Environmental Protection Agency enforcement staff, state environmental agencies, local environmental agencies, communities near power plants seeking emission reductions, and ratepayers bear burdens because the bill imposes five-year retirement notices, hearing and extension processes, cost allocation, continued operation orders, reduced environmental-law enforcement exposure during compliance, and possible charges to pay plants that stay open.

Key Provisions

• Authorizes FERC to find interstate electric service inadequate or likely to become inadequate within five years after a complaint and hearing opportunity.
• Allows FERC to require continued operation of electric generating units and long-term transmission planning.
• Requires FERC to set compensation and cost allocation for additional service and continued operation.
• Allows orders of up to five years with extension requests and hearings.
• Shields necessary compliance actions from federal, state, or local environmental-law violations, liability, and citizen suits.
• Requires five years' notice before planned retirement of covered electric generating units.