SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING POLICY.

SEC. 109. SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING POLICY.(a) Extension for Qualified Electric Utilities.—(1) In general.—Paragraph (3) of section 451(i) is amended by inserting “(before January 1, 2010, in the case of a qualified electric utility)” after “January 1, 2008”.(2) Qualified electric utility.—Subsection (i) of section 451 is amended by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively, and by inserting after paragraph (5) the following new paragraph:“(6) Qualified electric utility.—For purposes of this subsection, the term ‘qualified electric utility’ means a person that, as of the date of the qualifying electric transmission transaction, is vertically integrated, in that it is both—“(A) a transmitting utility (as defined in section 3(23) of the Federal Power Act (16 U.S.C. 796(23))) with respect to the transmission facilities to which the election under this subsection applies, and“(B) an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22))).”.(b) Extension of Period for Transfer of Operational Control Authorized by FERC.—Clause (ii) of section 451(i)(4)(B) is amended by striking “December 31, 2007” and inserting “the date which is 4 years after the close of the taxable year in which the transaction occurs”.(c) Property Located Outside the United States Not Treated as Exempt Utility Property.—Paragraph (5) of section 451(i) is amended by adding at the end the following new subparagraph:“(C) Exception for property located outside the united states.—The term ‘exempt utility property’ shall 122 STAT. 3822 not include any property which is located outside the United States.”.(d) Effective Dates.—(1) Extension.—The amendments made by subsection (a) shall apply to transactions after December 31, 2007.(2) Transfers of operational control.—The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.(3) Exception for property located outside the united states.—The amendment made by subsection (c) shall apply to transactions after the date of the enactment of this Act.