Bill Overview
Title: Energy Consumer Protection Act of 2022
Description: This bill expands enforcement provisions under the Federal Power Act and the Natural Gas Act, including by allowing the Federal Energy Regulatory Commission to temporarily or permanently ban any person from trading in energy markets if the person (1) violates those acts by manipulating the electricity or natural gas markets, or (2) files false information regarding those markets.
Sponsors: Sen. Cortez Masto, Catherine [D-NV]
Target Audience
Population: People relying on regulated electricity and natural gas markets.
Estimated Size: 330000000
- The bill affects participants in energy markets specifically related to electricity and natural gas, as it introduces measures against manipulation and false information in these markets.
- This includes not only those who engage in trading but also indirectly affects consumers who rely on these markets for their energy supply, as market manipulation can affect prices and reliability of energy.
- Energy market participants include energy companies, traders, and brokers, but the ultimate impact is on consumers who depend on energy for daily activities.
- The Federal Energy Regulatory Commission regulates interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates.
Reasoning
- The policy primarily targets energy market participants, like energy traders and companies, to prevent unfair practices.
- Its effects will indirectly impact consumers of electricity and natural gas by aiming to ensure fair pricing and reliable services.
- A small portion of the population directly participates in energy trading, while a large portion relies on these markets to be competitive and fair.
- The indirect effects on consumers' wellbeing through this policy could manifest over time, mainly stabilizing prices and maintaining reliability in energy supply.
- The population directly impacted includes those who might face bans or penalties under the policy's provisions, but the indirect impact is more widespread.
- A diverse range of profiles was chosen to represent both direct and indirect effects in a manner that aligns with the policy's focus and budget constraints.
- While traders and professionals in energy markets form a minor percentage of the population, ensuring fairness in these markets generally affects all utility consumers.
Simulated Interviews
Energy Trader (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- The policy might be a double-edged sword. It could stabilize the market but also adds more compliance burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Regulatory Analyst at an Energy Company (New York, NY)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- The new regulations bring clarity which could be beneficial for all involved, but it could also increase operational costs for companies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Natural Gas Broker (Los Angeles, CA)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 2/20
Statement of Opinion:
- Stable energy markets are crucial for my work. The policy, if effective, could help reduce volatility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
IT Specialist (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- Anything that ensures stable electricity and heating bills is a plus.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Public School Teacher (Atlanta, GA)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Fair energy prices can help stretch school budgets further, allowing us to focus funds on education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Construction Worker (Seattle, WA)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- Keeping energy prices stable aids construction projects in maintaining budgets and timelines.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Hospital Administrator (Philadelphia, PA)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- Reduced electricity and gas costs could allow us to allocate more resources to patient care.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Student (San Francisco, CA)
Age: 24 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This seems like a step in the right direction, ensuring equity in energy markets.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Retired Engineer (Phoenix, AZ)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 10/20
Statement of Opinion:
- Ensuring fair practices in energy trading can protect my pension's purchasing power.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Small Business Owner (Miami, FL)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 11/20
Statement of Opinion:
- Lower energy prices would mean I can keep prices down for my customers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5000000 (Low: $3000000, High: $7000000)
Year 3: $5100000 (Low: $3100000, High: $7100000)
Year 5: $5200000 (Low: $3200000, High: $7200000)
Year 10: $5500000 (Low: $3500000, High: $7500000)
Year 100: $7500000 (Low: $5500000, High: $9500000)
Key Considerations
- FERC requires adequate funding and resources to enforce new regulations effectively.
- The potential for unintended legal challenges needs to be considered, which might arise from those barred from market participation.
- The international perspective, as U.S. energy markets are interconnected globally, and changes here could have ripple effects abroad.