By Rich Heidorn Jr.

WASHINGTON — U.S. Sen. John Boozman (R-Ark.) last week introduced legislation that would force the Commodity Futures Trading Commission to grant SPP the same broad regulatory exemptions the commission granted other grid operators in 2013.

The commission’s 2013 order exempted electricity transactions subject to FERC-approved tariffs from most provisions of the Commodity Exchange Act (CEA). SPP was not party to the order because its day-ahead market was not fully implemented at the time.

Unlike the 2013 order, the draft order CFTC is considering for SPP includes a preamble stating the commission’s intent to preserve “private rights of action” under Section 22 of the CEA. (See Witnesses Ask CFTC to Drop ‘Private Rights’ Clause.)

CFTC Chairman Timothy Massad testified Thursday at a hearing of the Senate Appropriations Committee’s Subcommittee on Financial Services and General Government, which is chaired by Boozman. The Arkansas senator did not raise the issue.

However, a Boozman spokeswoman said the senator introduced an amendment that was included in the manager’s package at the Senate Agriculture Committee’s markup on the CFTC’s reauthorization Thursday.

“The amendment would ensure the current regulatory framework remains in place and prevent inconsistent regulations between FERC and CFTC,” said spokeswoman Sara Lasure. She said Sen. Joe Donnelly (D-Ind.) co-sponsored the amendment.

Speaking at the Gulf Coast Power Association’s annual meeting in Houston last week, SPP CEO Nick Brown said the RTO was working with Boozman to bar the commission from allowing private rights of action for wholesale electric markets.

“To open this to 100 [U.S.] district courts is just insane in my mind,” Brown said. “I don’t know a better word for it. … This would just be a field day for the legal community.”

Other grid operators have expressed concern that the commission’s reference to private rights in the SPP order could undermine their 2013 waiver.

“The real risk is for market participants who are in the [congestion revenue rights and financial transmission rights] markets,” ERCOT CEO Bill Magness said. “When I had to come back to meetings at ERCOT and talk about CFTC again, it was a very unhappy day. We thought we were done with these discussions for a while.”