,i #aai? ,,congress #b;d ,session ,h4 ,r4 #ggbi ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #bf1 #bjbf,mr4 ,ca/5 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce ,a ,,bill ,to am5d ! ,f$]al ,p[] ,act to require ! issuance ( rules relat+ to %>$ sav+s frameworks = c]ta9 transmitt+ utilities1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,%>$ ,utility ,rew>ds = ,grid ,effici5cy ,act ( #bjbf or ! ,,surge ,act ( #bjbf4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,sec4 #b4 ,am5dm5ts to ! ,f$]al ,p[] ,act4,sec4 #c4 ,%>$ sav+s framework rule = transmitt+ utilities subject to ,f$]al ,en]gy ,regulatory ,commission jurisdiction4,sec4 #d4 ,guidance = electric utilities n subject to ,f$]al ,en]gy ,regulatory ,commission jurisdiction4,sec4 #e4 ,grant program = ,/ate regulatory au?orities4,sec4 #f4 ,/udies on effects ( c]ta9 rate treatm5ts & alt]native frameworks4,sec4 #g4 ,def9itions4 #b4 ,am5dm5ts to ! ,f$]al ,p[] ,act ,section #bai ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbds7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by /rik+ ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is section1 ! ,commission %all e/abli%1 by rule1 & ins]t+ ,! ,commission %all issue su* rules z may be necess>y to e/abli%2 & 7,b7 by ins]t+ 1 improv+ effici5cy1 aft] ensur+ reliability2 7#b7 9 subsection 7b7-- 7,a7 9 ! matt] prec$+ p>agraph 7#a71 by /rik+ ,! rule %all & ins]t+ ,! rules issu$ "u ?is section %all2 7,b7 9 p>agraph 7#a71 by ins]t+ 1 & op]ational improvem5ts =1 aft] capital inve/m5t 92 7,c7 9 p>agraph 7#b7-- 7i7 by ins]t+ or o!r inc5tive me*anism aft] return on equity2 & 7ii7 by ins]t+ or inc5tivizes improvem5ts t increase ! effici5cy ( ! transmission ( electric en]gy & r$uce co/s = consum]s aft] 7includ+ relat$ transmission te*nologies72 7,d7 9 p>agraph 7#c71 by ins]t+ 1 includ+ p]=mance-bas$ measures1 aft] o!r measures2 & 7,e7 9 p>agraph 7#d7-- 7i7 9 subp>agraph 7,a71 by /rik+ 2 & & ins]t+ a semicolon2 7ii7 9 subp>agraph 7,b71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7iii7 by add+ at ! end ! foll[+ new subp>agraph3 7,c7 am\nts det]m9$ pursuant to %>$ sav+s frameworks or o!r inc5tive me*anisms prescrib$ 9 su* rules4 2 & 7#c7 9 subsection 7c71 by /rik+ ,9 ! rule & ins]t+ ,9 a rule4 #c4 ,rulemak+ on %>$ sav+s framework = transmitt+ utilities subject to ,f$]al ,en]gy ,regulatory ,commission jurisdiction 7a7 ,rule requir$ ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,commission %all issue a f9al rule "u section #bai7;b77#c7 ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbds7b77#c771 z am5d$ by section #b1 t e/abli%es a framework "u :i* a cov]$ transmitt+ utility may recov] a portion ( v]ifi$ co/ sav+s attributable to a qualify+ action ( su* transmitt+ utility z an inc5tive 79 ?is subsection ref]r$ to z ! %>$ sav+s framework74 7b7 ,me?odologies ,! ,commission %all develop & include 9 ! rule "u subsection 7a7 /&>diz$ me?odologies1 applicable across simil>ly situat$ transmission segm5ts1 z foll[s3 7#a7 ,basel9e p]=mance me?odologies ,me?odologies1 develop$ 9 consultation ) ! ,secret>y1 = cov]$ transmitt+ utilities to det]m9e ! annual basel9e p]=mance ( transmission facilities or transmission segm5ts abs5t qualify+ actions-- 7,a7 by measur+ ! basel9e p]=mance ( su* a transmission facility or transmission segm5t-- 7i7 ?r\gh ! actual am\nt ( electrical en]gy ent]+ & leav+ su* facility or segm5t 7commonly ref]r$ to z direct met]+72 or 7ii7 if ! me?od "u clause 7i7 is n feasible1 ?r\gh an e/imation ( su* am\nt consi/5t ) model+ me?odologies prescrib$ by ! ,commission2 & 7,b7 by normaliz+ data to ensure su* basel9e p]=mance acc\nts = v>iability 9 exog5\s factors det]m9$ by ! ,commission1 su* z v>iability 9-- 7i7 wea!r2 7ii7 dem& ov] "t2 7iii7 upgrades1 int]connections1 or op]ational *anges made by o!r utilities1 ,indep5d5t ,sy/em ,op]ators or ,regional ,transmission ,organizations1 or o!r entities det]m9$ relevant by ! ,commission2 or 7iv7 o!r conditions affect+ dem& or g5]ation4 7#b7 ,me?odologies relat+ to co/ sav+s ,me?odologies = cov]$ transmitt+ utilities to e/imate & calculate1 & = indep5d5t evaluators to v]ify1 ! co/ sav+s attributable to qualify+ actions "u ! %>$ sav+s framework1 tak+ into acc\nt-- 7,a7 ! basel9e p]=mance ( any transmission facility or transmission segm5t ) respect to :i* a qualify+ action is conduct$2 & 7,b7 price proxies1 det]m9$ accord+ to a me?odology prescrib$ by ! ,commission1 = ! value ( electric en]gy transmitt$ 7:i* may include1 = a region manag$ by an ,indep5d5t ,sy/em ,op]ator or ,regional ,transmission ,organization1 ! locational m>g9al price correspond+ to ! location on ! electric grid :]e an injection or )drawal ( p[] is model$ 7commonly ref]r$ to z a pric+ node774 7#c7 ,me?odologies relat+ to recov]able p]c5tage & rate recov]y timel9e 7,a7 ,9 g5]al ,me?odologies = cov]$ transmitt+ utilities to det]m9e1 tak+ into acc\nt ! factors describ$ 9 subp>agraph 7,b71 ! foll[+3 7i7 ,! total p]c5tage ( co/ sav+s attributable to a qualify+ action t su* a utility may recov] z an inc5tive "u ! %>$ sav+s framework1 :i* may n be less ?an #aj p]c5t or great] ?an #fj p]c5t ( su* total attributable co/ sav+s 79 ?is section ref]r$ to z ! recov]able p]c5tage ( su* sav+s74 7ii7 ,! p]iod ( "t dur+ :i* su* a utility may recov] am\nts z an inc5tive = su* an action1 :i* may n be %ort] ?an a #b-ye> p]iod or long] ?an a #e-ye> p]iod 79 ?is section ref]r$ to z ! rate recov]y timel9e = su* action74 7,b7 ,factors ,! factors describ$ 9 ?is subp>agraph are ! foll[+3 7i7 ,! ext5t ( f9ancial or op]ational risk to be assum$ by a cov]$ transmitt+ utility 9 conduct+ a qualify+ action4 7ii7 ,! basel9e p]=mance = transmission facilities or transmission segm5ts ) respect to :i* su* action is to be conduct$4 7iii7 ,! replicability or demon/ration value ( su* action4 7iv7 ,! duration ( co/ sav+s pr$ict$ to result f su* action & :e!r su* co/ sav+s w rema9 consi/5t ov] su* duration4 7v7 ,! ext5t to :i* su* action is expect$ to result 9 additional b5efits1 su* z improvem5ts to ! resili5ce or ! reliable op]ation ( ! bulk-p[] sy/em1 r$uctions to transmission conge/ion1 or r$uctions to gre5h\se gas emissions4 7vi7 ,su* o!r factors z ! ,commission may det]m9e relevant to ensure ! inc5tive is p]=mance-bas$1 transp>5t1 & co/-effective4 7c7 ,initial fil+ requir$ ,to be consid]$ = an inc5tive "u ! %>$ sav+s framework = ! conduct ( a qualify+ action1 a cov]$ transmitt+ utility %all submit to ! ,commission an initial fil+1 ! cont5ts ( :i* %all be v]ifi$ by an indep5d5t evaluator det]m9$ appropriate by ! ,commission1 t includes ! foll[+3 7#a7 ,an id5tification ( ! basel9e p]=mance ( any transmission facility or transmission segm5t ) respect to :i* su* action is to be conduct$ = ! "o-ye> p]iod prec$+ ! date on :i* su* conduct is to be comm5c$1 det]m9$ by su* utility pursuant to an applicable me?odology "u subsection 7b77#a7 7includ+ ! data und]ly+ su* calculation74 7#b7 ,a description ( su* action1 includ+ an analysis ( improvem5ts expect$ to result f su* action4 7#c7 ,! rate recov]y timel9e = su* action & ! recov]able p]c5tage ( co/ sav+s attributable to su* action1 det]m9$ pursuant to an applicable me?odology "u subsection 7b77#c74 7#d7 ,an e/imate1 develop$ pursuant to an applicable me?odology "u subsection 7b77#b71 ( ! co/ sav+s to result f su* action =-- 7,a7 ! "o-ye> p]iod beg9n+ on ! date on :i* ! conduct ( su* action comm5ces2 & 7,b7 ! duration ( ! rate recov]y timel9e = su* action4 7#e7 ,a claim = #ej p]c5t ( ! recov]able p]c5tage ( co/ sav+s e/imat$ "u p>agraph 7#d77;,a74 7#f7 ,an agreem5t by su* utility to file ) ! ,commission ! annual reports requir$ "u subsection 7d71 ! cont5ts ( :i* %all be v]ifi$ by an indep5d5t evaluator det]m9$ appropriate by ! ,commission4 7d7 ,annual report+ requir$ ,beg9n+ "o ye> aft] ! date on :i* a cov]$ transmitt+ utility submits an initial fil+ = a qualify+ action "u subsection 7c71 & on an annual basis !reaft] until ! end ( ! rate recov]y timel9e = su* action det]m9$ "u p>agraph 7#c7 ( su* subsection or until su* action no long] results 9 co/ sav+s1 :i*ev] occurs fir/1 su* utility %all file ) ! ,commission a report conta9+1 ) respect to ! qualify+ action ( su* utility1 ! foll[+3 7#a7 ,data on ! p]=mance dur+ ! prec$+ ye> ( any transmission facility or transmission segm5t ) respect to :i* su* action 0 conduct$1 & a comp>ison ( su* p]=mance to ! basel9e p]=mance ( t transmission facility or transmission segm5t det]m9$ pursuant to an applicable me?odology "u subsection 7b77#a7 = su* ye>4 7#b7 ,! actual co/ sav+s attributable to ! qualify+ action = ! prec$+ ye>1 calculat$ pursuant to an applicable me?odology "u subsection 7b77#b74 7#c7 ,if su* utility expects co/ sav+s to result f ! qualify+ action dur+ ! foll[+ ye>1 an e/imate1 develop$ pursuant to an applicable me?odology "u subsection 7b77#b71 ( ! co/ sav+s = su* foll[+ ye>4 7#d7 ,a claim = ! foll[+3 7,a7 ,an am\nt t is ! recov]able p]c5tage ( ! actual co/ sav+s = ! prec$+ ye> calculat$ "u p>agraph 7#b7 m9us any am\nt previ\sly recov]$ bas$ on an e/imate ( co/ sav+s = su* ye> "u subsection 7e77#a7 or subsection 7e77#b77;,b71 z ! case may be4 7,b7 ,if ! report includes an e/imate ( co/ sav+s = ! foll[+ ye> "u p>agraph 7#c71 an am\nt t is #ej p]c5t ( ! recov]able p]c5tage ( su* e/imat$ co/ sav+s4 7#e7 ,if su* utility f9ds t ! total am\nt recov]$ = a ye> "u subsection 7e7 exce$s ! am\nt equal to ! total recov]able p]c5tage ( ! actual co/ sav+s = t ye> "u p>agraph 7#b71 an id5tification ( ! excess am\nt4 7e7 ,recov]y me*anism 7#a7 ,rate adju/m5t bas$ on initial fil+ ,n lat] ?an #fj days aft] receiv+ an initial fil+ ( a cov]$ transmitt+ utility "u subsection 7c71 ! ,commission %all provide to su* utility a rate adju/m5t "u :i* su* utility may recov] ! am\nt claim$ "u subsection 7c77#e74 7#b7 ,rate adju/m5t bas$ on annual reports ,n lat] ?an #fj days aft] receiv+ an annual report ( a cov]$ transmitt+ utility "u subsection 7d71 ! ,commission %all provide to su* utility a rate adju/m5t "u :i*-- 7,a7 subject to p>agraph 7#c71 su* utility may recov] ! am\nt claim$ "u subsection 7d77#d77;,a72 & 7,b7 if ! report includ$ a claim "u subsection 7d77#d77;,b71 su* utility may recov] ! am\nt s claim$4 7#c7 ,reconciliation ,if a utility id5tifies an excess am\nt "u subsection 7d77#e71 or ! ,commission det]m9es ! in=mation report$ = t ye> "u subsection 7d7 is insuffici5t = purposes ( ?is subsection1 ! ,commission %all cr$it ! diff]5ce to ratepay]s ?r\gh a rate adju/m5t4 7f7 ,s5se ( ,congress reg>d+ additional rulemak+s ,x is ! s5se ( ,congress t-- 7#a7 foll[+ ! issuance ( ! rule "u subsection 7a71 ! ,commission %\ld revise su* rule1 or issue additional rules "u ! au?ority ( section #bai7;b77#c7 ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbds7b77#c771 z am5d$ by section #b1 to exp& ! %>$ sav+s framework to additional categories ( measurable1 demon/rable1 & v]ifiable cov]$ transmission actions2 7#b7 any su* rule %\ld include a v]sion ( ! me?odologies develop$ "u subsection 7b7 adapt$ = su* additional categories2 & 7#c7 any su* rule %\ld take into acc\nt ! f9d+s ( ! mo/ rec5tly conduct$ /udy "u section #f4 #d4 ,guidance = electric utilities n subject to ,f$]al ,en]gy ,regulatory ,commission jurisdiction 7a7 ,9 g5]al ,n lat] ?an two ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y1 9 coord9ation ) ! ,commission & ,/ate regulatory au?orities1 %all develop & publi% on a publicly available website ( ! ,dep>tm5t ( ,en]gy guidance to support ,/ate regulatory au?orities 9 e/abli%+ frameworks "u :i* cov]$ electric utilities may recov] a portion ( v]ifi$ co/ sav+s attributable to a cov]$ utility action z an inc5tive4 7b7 ,m9imum elem5ts ,! guidance "u subsection 7a7 %all include-- 7#a7 guidance1 develop$ 9 accordance ) subsection 7c71 = det]m9+ ! basel9e p]=mance ( a cov]$ electric utility abs5t a cov]$ utility action2 7#b7 guidance1 develop$ 9 accordance ) subsection 7d71 = det]m9+ ! co/ sav+s attributable to a cov]$ utility action2 7#c7 guidance = ! measurem5t & v]ification ( a cov]$ utility action1 & any co/ sav+s attributable to su* action1 by an indep5d5t evaluator det]m9$ appropriate by ! ,/ate regulatory au?ority conc]n$2 7#d7 guidance on pot5tial me*anisms by :i* cov]$ electric utilities may recov] a portion ( ! v]ifi$ co/ sav+s attributable to a cov]$ utility action1 includ+ ?r\gh ! provision ( rate adju/m5ts by ,/ate regulatory au?orities2 & 7#e7 su* o!r elem5ts z ! ,secret>y det]m9es appropriate to ensure ! framework specifi$ 9 subsection 7a7 is transp>5t1 p]=mance-bas$1 co/-effective1 & consi/5t ) ,/ate ratemak+ practices4 7c7 ,me?odology = det]m9+ basel9e p]=mance 7#a7 ,9 g5]al ,9 develop+ ! guidance "u subsection 7b77#a71 ! ,secret>y1 9 coord9ation ) ! ,commission1 %all-- 7,a7 consult ) ,/ate regulatory au?orities1 ,indep5d5t ,sy/em ,op]ators1 ,regional ,transmission ,organizations1 & indep5d5t evaluators det]m9$ appropriate by ! ,secret>y reg>d+ su* guidance2 7,b7 include 9 su* guidance te*nical guidance = normaliz+ data to ensure ! basel9e p]=mance ( a cov]$ electric utility acc\nts = v>iability 9 exog5\s factors1 su* z v>iability 9-- 7i7 wea!r2 7ii7 dem& ov] "t2 7iii7 upgrades1 int]connections1 or op]ational *anges made by o!r utilities1 ,indep5d5t ,sy/em ,op]ators or ,regional ,transmission ,organizations1 or o!r entities det]m9$ relevant by ! ,commission2 or 7iv7 o!r conditions affect+ dem& or g5]ation1 z det]m9$ by ! ,secret>y2 & 7,c7 ensure su* guidance supports consi/5t treatm5t across cov]$ electric utilities )9 ea* category describ$ 9 subsection 7e74 7#b7 ,support f ,national ,laboratories ,! ,national ,laboratories %all provide su* te*nical support z ! ,secret>y det]m9es necess>y to c>ry out ?is subsection4 7d7 ,guidance on det]m9+ co/ sav+s ,9 develop+ ! guidance "u subsection 7b77#b71 ! ,secret>y %all-- 7#a7 include 9 su* guidance-- 7,a7 pr9ciples to ensure t co/ sav+s attributable to a cov]$ utility action are calculat$ 9 a mann] t takes into acc\nt price proxies = ! value ( electric en]gy & ! basel9e p]=mance ( ! cov]$ electric utility2 & 7,b7 tools1 te*nical support1 & ref]5ce data to assi/ ,/ate regulatory au?orities 9 apply+ ! pr9ciples specifi$ 9 subp>agraph 7,a72 & 7#b7 ensure su* guidance supports consi/5t treatm5t across cov]$ electric utilities )9 ea* category describ$ 9 subsection 7e74 7e7 ,applicability to utility m>ket /ructures ,9 c>ry+ out subsection 7a71 ! ,secret>y %all develop sep>ate guidance = ea* category ( cov]$ electric utilities z foll[s3 7#a7 ,v]tically integrat$ utilities4 7#b7 ,cov]$ electric utilities t own or op]ate transmission infra/ructure b n di/ribution or g5]ation infra/ructure4 7#c7 ,cov]$ electric utilities t own or op]ate di/ribution infra/ructure b n transmission or g5]ation infra/ructure4 7#d7 ,cov]$ electric utilities t own or op]ate di/ribution & transmission infra/ructure b n g5]ation infra/ructure4 7f7 ,revisions ,^u ! publication ( ea* report "u section #f1 ! ,secret>y %all det]m9e :e!r to revise ! guidance "u subsection 7a71 tak+ into acc\nt ! cont5ts ( su* report & ! recomm5dations includ$ !re94 #e4 ,grant program = ,/ate regulatory au?orities 7a7 ,e/abli%m5t ,n lat] ?an two ye>s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y %all e/abli% a program "u :i* ! ,secret>y may aw>d grants to ,/ate regulatory au?orities to support ! developm5t1 implem5tation1 & ov]sight by su* ,/ate regulatory au?orities ( frameworks "u :i* cov]$ electric utilities may recov] a portion ( v]ifi$ co/ sav+s attributable to a cov]$ utility action z an inc5tive 79 ?is section ref]r$ to z ! grant program74 7b7 ,au?oriz$ uses ( funds ,am\nts aw>d$ "u ! grant program may only be us$ to conduct ! foll[+ activities3 7#a7 ,! developm5t ( a framework ref]r$ to 9 subsection 7a71 or revision ( an exi/+ su* framework1 su* t ! framework is consi/5t ) ! guidance develop$ "u section #d1 includ+ ! foll[+3 7,a7 ,! developm5t1 includ+ ! design or model+1 ( me?odologies consi/5t ) ! me?odologies set =? "u su* guidance4 7,b7 ,! developm5t ( data sy/ems or o!r tools necess>y = ! developm5t ( ! framework4 7,c7 ,! issuance or revision ( regulations necess>y = ! developm5t ( ! framework4 7,d7 ,! engagem5t ) /akehold]s ) respect to ! developm5t ( ! framework4 7#b7 ,! implem5tation or ov]sight ( a framework consi/5t ) su* guidance4 7c7 ,prohibit$ use ( funds ,no am\nts aw>d$ "u ! grant program may be us$ to pay a cov]$ electric utility4 7d7 ,grant recipi5t report+ requirem5t 7#a7 ,9 g5]al ,z a condition ( receiv+ am\nts "u ! grant program1 a ,/ate regulatory au?ority %all agree to submit to ! ,secret>y1 on an annual basis = ! duration ( ! p]iod 9 :i* su* ,/ate regulatory au?ority exp5ds su* am\nts1 a report describ+ ! activities c>ri$ out us+ su* am\nts4 7#b7 ,effect ( noncompliance ,if a grant recipi5t fails to submit a report requir$ "u p>agraph 7#a71 su* recipi5t %all be ineligible = additional aw>ds "u ?is section until ! report is submitt$4 7e7 ,adm9i/ration ( program 7#a7 ,te*nical support2 public regi/ry ,9 c>ry+ out ! grant program1 ! ,secret>y %all-- 7,a7 provide to grant recipi5ts te*nical assi/ance 9 support ( activities conduct$ us+ am\nts aw>d$ "u ! grant program2 & 7,b7 ma9ta9 a publicly accessible regi/ry ( ! activities s conduct$4 7#b7 ,report+ by ,secret>y ,n lat] ?an two ye>s aft] ! date ( enactm5t ( ?is ,act1 & bi5nially !reaft] = ! duration ( ! grant program1 ! ,secret>y %all submit to ! appropriate congressional committees a report conta9+-- 7,a7 a summ>y ( ! activities conduct$ us+ am\nts aw>d$ "u ! grant program2 7,b7 an assessm5t ( ! effectiv5ess ( any framework implem5t$ us+ su* am\nts2 & 7,c7 an id5tification ( any b>ri] to ! developm5t1 implem5tation1 or ov]sight ( a framework consi/5t ) ! guidance develop$ "u section #d & recomm5dations = address+ su* b>ri]1 z applicable4 7#c7 ,allocation ( funds ,( ! am\nts au?oriz$ to be appropriat$ or o!rwise made available to ! ,secret>y to c>ry out ! grant program-- 7,a7 n m ?an #gj p]c5t may be aw>d$ = ! conduct ( activities "u subsection 7b77#a72 7,b7 n less ?an #cj p]c5t may be aw>d$ = ! conduct ( activities "u subsection 7b77#b72 & 7,c7 n m ?an five p]c5t may be obligat$ or exp5d$ = ,f$]al adm9i/rative exp5ses4 #f4 ,/udies on effects ( c]ta9 rate treatm5ts & alt]native frameworks 7a7 ,/udies requir$ ,n lat] ?an ?ree ye>s aft] ! date ( enactm5t ( ?is ,act1 & e five ye>s !reaft]1 ! ,secret>y1 9 consultation ) ! ,commission1 %all-- 7#a7 conduct a /udy on-- 7,a7 ineffici5cies 9 ! electric p[] sector inc5tiviz$ by exi/+ rate treatm5ts = ! transmission ( electric en]gy & any economic1 environm5tal1 or societal effect ( su* ineffici5cies1 includ+ ) respect to ! cu/om]s ( electric utilities1 ! reliable op]ation ( ! bulk-p[] sy/em1 & ! deploym5t ( co/-effective grid-enhanc+ te*nologies2 & 7,b7 alt]native frameworks = inc5tive-bas$1 includ+ p]=mance-bas$1 rate treatm5ts = su* transmission1 su* z ! alt]native frameworks describ$ 9 subsection 7b72 & 7#b7 publi% on a publicly available website ( ! ,dep>tm5t ( ,en]gy1 & submit to ! appropriate congressional committees1 a report t includes-- 7,a7 a detail$ description ( ! f9d+s ( su* /udy2 & 7,b7 recomm5dations ( ! ,secret>y to align rate treatm5ts = ! transmission ( electric en]gy ) ! goals ( l[]+ co/s = ! cu/om]s ( electric utilities1 enhanc+ ! reliable op]ation ( ! bulk-p[] sy/em1 r$uc+ transmission conge/ion & o!r ineffici5cies 9 ! transmission or deliv]y ( electric en]gy1 & enc\rag+ ! deploym5t ( co/-effective grid-enhanc+ te*nologies4 7b7 ,examples ( alt]native frameworks ,! alt]native frameworks describ$ 9 ?is subsection are ! foll[+3 7#a7 ,%>$ sav+s frameworks4 7#b7 ,rev5ue dec\pl+ models1 "u :i* au?oriz$ rev5ues ( utilities are sep>at$ f volumetric sales ( electricity to r$uce dis9c5tives = en]gy effici5cy & programs to r$uce ! consumption (1 or peak dem& =1 electric en]gy4 7#c7 ,return on equity adju/m5ts1 "u :i* au?oriz$ utility returns are increas$ or decreas$ bas$ on measurable factors su* z risk pr(ile1 p]=mance outcomes1 or effici5cy improvem5ts4 7#d7 ,multi-ye> rate plans1 "u :i* rev5ue requirem5ts & p]=mance expectations = utilities are e/abli%$ = a fix$ multi-ye> p]iod r ?an ?r\gh s+le-ye> rate cases4 7#e7 ,e>n+s %>+ me*anisms1 "u :i* e>n+s ( utilities fall+ outside an au?oriz$ range z comp>$ to ! return on equity are %>$ betwe5 %>ehold]s & ratepay]s4 7#f7 ,total exp5diture models1 "u :i* capital & op]at+ exp5ditures ( utilities are treat$ on an equival5t basis to r$uce bias t[>d capital inve/m5t4 7#g7 ,p]=mance scorec>ds1 "u :i* utilities are evaluat$ aga9/ transp>5t outcome-bas$ metrics su* z reliability1 af=dability1 equity1 or ! r$uction ( emissions1 ) results in=m+ regulatory decisions or inc5tive adju/m5ts4 7c7 ,s\rces ,! ,secret>y %all ensure t ea* /udy "u subsection 7a7 is in=m$ by-- 7#a7 reports fil$ ) ! ,commission pursuant to sections #c & #e ( ?is ,act & section #cjd ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbe;c72 7#b7 relevant reports issu$ by ! ,national ,laboratories2 & 7#c7 su* o!r /udies1 reports1 & o!r data s\rces z ! ,secret>y may det]m9e appropriate4 #g4 ,def9itions ,9 ?is ,act3 7#a7 ,advanc$ conductor ,! t]m advanc$ conductor means an electric transmission conductor t1 relative to a conductor be+ replac$ on a giv5 transmission or di/ribution l9e1 is design$ to sub/antially improve electrical or me*anical p]=mance ?r\gh ! a*ievem5t ( at lea/ "o ( ! foll[+ crit]ia1 z det]m9$ by ! ,commission3 7,a7 ,a sub/antial increase 9 curr5t-c>ry+ capacity "u normal op]at+ conditions4 7,b7 ,a sub/antial r$uction 9 electrical resi/ance or l9e losses "u normal op]at+ conditions4 7,c7 ,op]ation at mat]ially high] cont9u\s all[able op]at+ temp]atures4 7,d7 ,a r$uction 9 !rmal sag or me*anical con/ra9ts t enables increas$ use ( a transmission segm5t or facility4 7#b7 ,appropriate congressional committees ,! t]m appropriate congressional committees means-- 7,a7 ! ,committee on ,en]gy & ,comm]ce ( ! ,h\se ( ,repres5tatives2 & 7,b7 ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate4 7#c7 ,bulk-p[] sy/em2 electric utility2 ,indep5d5t ,sy/em ,op]ator2 ,regional ,transmission ,organization2 ,/ate regulatory au?ority2 transmitt+ utility ,! t]ms bulk-p[] sy/em1 electric utility1 ,indep5d5t ,sy/em ,op]ator1 ,regional ,transmission ,organization1 ,/ate regulatory au?ority1 & transmitt+ utility h ! mean+s giv5 su* t]ms 9 section #c ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #gif74 7#d7 ,commission ,! t]m ,commission means ! ,f$]al ,en]gy ,regulatory ,commission4 7#e7 ,cov]$ electric utility ,! t]m cov]$ electric utility means an electric utility n subject to ! jurisdiction ( ! ,commission = ratemak+ purposes "u ,"p ,,ii ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbd et seq474 7#f7 ,cov]$ action ,! t]m cov]$ action-- 7,a7 means an action t w\ld g5]ate co/ sav+s = ratepay]s2 & 7,b7 does n include ! con/ruction ( a new facility or ! complete recon/ruction ( an exi/+ facility4 7#g7 ,cov]$ transmission action ,! t]m cov]$ transmission action means a cov]$ action to improve ! effici5cy1 capacity1 reliability1 or resili5ce ( "o or m transmission facilities or transmission segm5ts1 includ+ ?r\gh-- 7,a7 ! replacem5t ( a conductor on a transmission l9e )9 su* a facility or segm5t ) an advanc$ conductor2 or 7,b7 ! deploym5t ( a grid-enhanc+ te*nology4 7#h7 ,cov]$ transmitt+ utility ,! t]m cov]$ transmitt+ utility means a transmitt+ utility subject to ! jurisdiction ( ! ,commission = ratemak+ purposes "u "p ,,ii ( ! ,f$]al ,p[] ,act 7#af ,u4,s4,c4 #hbd et seq474 7#i7 ,cov]$ utility action ,! t]m cov]$ utility action means a cov]$ action tak5 by an electric utility to-- 7,a7 improve ! effici5cy ( ! g5]ation1 transmission1 or di/ribution ( electric en]gy1 includ+ by r$uc+ ! proportion ( electrical en]gy lo/ dur+ su* g5]ation1 transmission1 or di/ribution 7includ+ ?r\gh ! deploym5t ( en]gy /orage sy/ems or o!r te*nologies72 or 7,b7 r$uce ! consumption (1 or peak dem& =1 electric en]gy1 includ+ ?r\gh-- 7i7 a te*nological improvem5t1 su* z ! deploym5t ( high-effici5cy appliances1 sm>t !rmo/ats1 di/ribut$ en]gy res\rces1 or build+ retr(its2 7ii7 ! e/abli%m5t ( a pric+ me*anism to enc\rage cu/om]s ( ! electric utility to r$uce su* consumption or %ift su* dem& to non-peak h\rs2 or 7iii7 any o!r action or program to inc5tivize or o!rwise produce su* a r$uction or %ift 9 dem&4 7#aj7 ,grid-enhanc+ te*nology ,! t]m grid-enhanc+ te*nology means any h>dw>e or s(tw>e t-- 7,a7 increases ! capacity1 effici5cy1 reliability1 resili5ce1 or safety ( transmission facilities & transmission te*nologies2 & 7,b7 is in/all$1 9 addition to transmission facilities & transmission te*nologies1 = ! purpose (-- 7i7 provid+ op]ators ( su* facilities & te*nologies increas$ situational aw>5ess & control ov] ! electric grid2 7ii7 improv+ ! effici5cy ( su* facilities & te*nologies2 7iii7 increas+ ! transf] capacity ( su* facilities & te*nologies2 or 7iv7 o!rwise enabl+ ! increas$ use1 or m effici5t ( use1 ( su* facilities & te*nologies "u normal op]at+ conditions4 7#aa7 ,qualify+ action ,! t]m qualify+ action means a cov]$ transmission action a*iev$ ?r\gh ! r$uction ( transmission physical losses4 7#ab7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,en]gy4 7#ac7 ,simil>ly situat$ ,! t]m simil>ly situat$1 ) respect to transmission segm5ts1 means transmission segm5ts t ! ,commission det]m9es %>e comp>able *>act]i/ics1 su* z voltage class1 geography1 load pr(ile1 or hi/orical p]=mance4 7#ad7 ,transmission physical loss ,! t]m transmission physical loss means ! am\nt ( electrical en]gy t ent]s a transmission segm5t b does n exit su* transmission segm5t1 z measur$ ov] a prescrib$ p]iod ( "t4 7#ae7 ,transmission segm5t ,! t]m transmission segm5t means a functionally di/9ct portion ( an int]connect$ transmission sy/em 7su* z a s+le transmission l9e or multiple transmission l9es )9 a prescrib$ zone1 su* z betwe5 prescrib$ sub/ations71 = :i* ! am\nt ( electrical en]gy transmitt$ & ! am\nt ( electrical en]gy lo/ dur+ su* transmission may be indep5d5tly measur$1 z det]m9$ by ! ,commission4 7#af7 ,v]tically integrat$ electric utility ,! t]m v]tically integrat$ electric utility means a cov]$ electric utility t-- 7,a7 owns & op]ates g5]ation1 transmission1 & di/ribution facilities2 & 7,b7 directly provides retail electric s]vice to end-use cu/om]s4