Amends the Department of Energy Organization Act to direct the Secretary of Energy to impose an interim regional price limitation, or cost-of-service based rate, upon sales of electric energy at wholesale rate in interstate commerce subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC) whenever: (1) FERC determines that the pertinent rate, charge, or classification is unduly preferential, unjust, or unreasonable, or the Secretary determines that it exceeds significantly the marginal cost of electric energy production; and (2) the continued existence of such rate, charge, or classification threatens public health and safety or regional economy, and FERC has otherwise failed to act to improve the situation.
Authorizes the Governor of any State within such affected region to waive application of the price limitation.
Exempts from the interim price limitations of this Act sales of electric energy generated by certain small power production or cogeneration facilities under the purview of the Public Utility Regulatory Policies Act of 1978.