The Senate has scaled back proposals in its omnibus energy bill that would have expanded the authority of the Federal Energy Regulatory Commission to review energy mergers, remedy “unjust” electricity rates, award market-based rate authority and order the construction of transmission facilities.

The package of amendments, which were offered by Sen. Craig Thomas (R-WY) on behalf of other senators, were adopted by a voice vote Wednesday, evoking little debate on the Senate floor. The measures reflect Thomas’s belief that the states, not FERC, should steer restructuring of energy markets.

A key amendment short-circuits the bill’s attempt to expand FERC merger-review authority to include deals involving natural gas production and transportation facilities, and state-jurisdictional energy assets. Specifically, it would limit the Commission review to mergers involving holding companies, generation in interstate commerce, and gas company acquisitions of electric assets. In addition, it would raise the threshold for FERC review of energy asset sales to $10 million from $1 million, and would exclude from Commission review acquisitions of generation assets that are under state jurisdiction. Thomas’ measure also establishes procedures for expedited action on merger applications.

Another initiative restricts action FERC can take to remedy unjust electricity rates. The energy bill had sought to broaden the agency’s authority in this area, to include ordering divestiture of facilities and mandatory participation in regional transmission organizations (RTO) for violators. But Thomas limited the Commission’s action solely to fixing unjust rates.

He also headed off efforts to provide the Commission an open-ended period in which to establish an “effective date” for refunds on electricity sales. Under such a provision, Thomas argued refunds might never go into effect. His amendment endorsed the status quo of a five-month window for FERC to establish a refund effective date.

Other Thomas amendments adopted by the Senate:

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