Power Plant Reliability Act of 2025

This bill would authorize the Federal Energy Regulatory Commission (FERC) to order power plants to remain operational for up to five years if their retirement would compromise the reliability of the bulk power system. It would require plant operators to provide five years' notice before a planned retirement and would allow state commissions or transmission organizations to petition FERC to intervene if they anticipate service inadequacies. Additionally, the proposal would exempt facilities from federal, state, and local environmental regulations when complying with these reliability orders and would establish mechanisms for compensating plants for the costs of continued operation.

This bill affects owners and operators of electric generating facilities, who must provide five years' notice before retiring units and may be ordered to remain operational. It also impacts the Federal Energy Regulatory Commission (FERC), state commissions, and transmission organizations, which are granted expanded roles in filing complaints and managing power plant retirement processes. Additionally, public utilities are affected by new requirements regarding service adequacy and the determination of rates or charges for extended operations.

• Expansion of the FERC complaint process for power plant retirements. The bill allows transmission organizations, in addition to state commissions, to file complaints with the Federal Energy Regulatory Commission (FERC) regarding whether a power plant must remain operational to ensure bulk power system reliability.
• Authority to mandate continued power plant operations. If FERC determines that interstate service is or will become inadequate within five years, it may order a power plant to remain open for up to five years, with the possibility of extensions upon request.
• Compensation and cost allocation requirements. Any FERC order requiring a plant to stay open must establish the rates or charges necessary to compensate for additional service costs and determine how those costs are allocated.
• Mandatory retirement notification period. Owners or operators of electric generating facilities must notify FERC and relevant state commissions or transmission organizations at least five years before a planned unit retirement, except in cases of emergencies.
• Environmental law exemptions for compliance. Actions taken by a generating facility to comply with a FERC order under this bill are exempt from federal, state, and local environmental laws and regulations.

• H.R. 3632, Power Plant Reliability Act of 2025
  Sep 29, 2025 · As reported by the House Committee on Energy and Commerce on September 23, 2025

The bill modifies the existing Federal Energy Regulatory Commission (FERC) process for determining whether a public utility must remain operational to maintain bulk power system reliability. It also establishes an exemption from federal, state, and local environmental laws and regulations for generating facilities taking action to comply with FERC orders issued under this authority.

The bill aims to ensure the reliability of the bulk power system by establishing a process for the Federal Energy Regulatory Commission to prevent the premature retirement of power plants that are deemed necessary for adequate interstate service. It seeks to provide a mechanism for state commissions and transmission organizations to address potential service insufficiencies through mandatory operational orders and associated cost compensation.