Transition to Competition in the Electric Industry Act - States that no electric utility shall be required, under the Public Utility Regulatory Policies Act of 1978 (PURPA), to enter into a new contract or obligation to purchase or sell electricity or capacity from or to qualifying cogeneration and small power production facilities.
Requires the Federal Energy Regulatory Commission to promulgate and enforce regulations designed to ensure that no electric utility shall be required to absorb, directly or indirectly, the costs associated with purchases of electric power or capacity from a qualifying facility pursuant to PURPA obligations before enactment of this Act.
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