The House of Representatives today passed H.R. 1038, the Public Power Risk Management Act, which will place utility special entities on a level playing field with everyone else in the marketplace and protect public power ratepayers from cost increases by increasing the sources from which public power entities may purchase energy for future needs.

“I am a proud sponsor of this legislation because this will place utility special entities on a level playing field with everyone else in the marketplace which is good news for not only rural America consumers, but all consumers,” Luetkemeyer said. “This is an important issue that affects both Missourians and public power ratepayers across the United States and I am hopeful the Senate passes the legislation and sends it quickly to the president for his signature.”

Specifically, this legislation would allow producers, utility companies, and other non-financial entities to continue entering into energy swaps with government-owned utilities without requiring them to register with the Commodity Futures Trading Commission (CFTC). Utility special entities should be allowed to keep using traditional swap counterparties to help manage their risk related to the generation of electricity or production of natural gas.