H.R. 3632: Power Plant Reliability Act of 2025

Power Plant Reliability Act of 2025

This bill modifies the process that the Federal Energy Regulatory Commission (FERC) uses to determine, upon a complaint from a state commission, whether a public utility (i.e., power plant) must remain open because the retirement of the power plant will make the bulk power system unreliable, including by allowing transmission organizations to also file complaints with FERC.

If FERC finds that any interstate service of any public utility is inadequate or insufficient, or is likely to become inadequate or insufficient within five years of receiving such complaint, then FERC must determine the proper, adequate, or sufficient service to be furnished through an order, rule, or regulation (order).

The bill specifies that FERC may order a power plant to remain open for up to five years. Any affected state commission, transmission organization, or power plant may request that FERC extend such order.

A FERC order must determine (1) any rate or charge necessary to provide compensation for the additional costs of the service, and (2) the cost allocation of any rate or charge.

A power plant owner or operator must notify FERC and affected state commissions or transmission organizations at least five years before any planned retirement of a unit of an electric generating facility except in the case of an emergency or similar event that renders a unit inoperable.

The bill exempts from federal, state, and local environmental laws and regulations any action taken by a generating facility to comply with such orders.