Summary of H.R. 878,
The "Electric Reliability Improvement Act of 2005"

(A bill to Improve the Reliability of the Nation's
Electric Transmission System)

Amends the Federal Power Act to direct the Federal Energy Regulatory Commission (FERC) to establish by rule an electric reliability organization (ERO).

Requires all users, owners, and operators of the bulk power system to comply with reliability standards set by the ERO and approved by FERC.

Allows the ERO to impose a penalty on a bulk power system, user, owner, or operator if the ERO finds that an approved reliability standard has been violated. FERC may review and/or affirm, set-aside, remand or modify such penalties to the ERO for additional proceedings. On motion or complaint, FERC itself may order compliance or impose a penalty for a violation or threatened violation.

Requires the ERO to conduct periodic assessments of the reliability and adequacy of the bulk-power system in North America.

Confines the ERO's authority to the bulk-power system only.

Specifies that this legislation does NOT authorize the ERO or FERC to order the construction of additional generation or transmission capacity or to set standards for adequacy or safety of electric facilities or services.

Clarifies that nothing in this legislation preempts any authority of a State to take action to ensure the safety, adequacy, and reliability of electric service within the state so long as such action is not inconsistent with any reliability standard. Provides that the legislation does not apply in Alaska or Hawaii (but it does in Texas).

Additional Points