A bill to amend the Federal Power Act to provide for the protection of electric utility customers and enhance the stability of wholesale electric markets through the clarification of State regulatory jurisdiction.

Amends the Federal Power Act to deny the Federal Regulatory Energy Commission (FERC) jurisdiction over bundled retail sales of electric energy or to compel the unbundling of rates for bundled retail sales of electric energy. Defines bundled retail sales as sales of electric energy to retail customers in which generation, transmission, distribution, and other services necessary to supply electric energy are sold as a single delivered service by a single seller, acting under the regulatory jurisdiction of a State commission.

Directs FERC to ensure that certain load-serving entities shall be entitled to use either transmission facilities or rights to firm transmission service to meet their service obligations to their customers or to their existing wholesale contractual obligations before the transmission capacity is made available for other uses.

States that if a service obligation or contractual obligation is transferred to another load-serving entity, the successor shall be entitled to use the transmission facilities or firm transmission rights associated with such transfer.

Declares that a transmitting utility shall not be considered to be engaging in undue discrimination or preference if it reserves transmission capacity to meet certain service obligations or firm long-term wholesale contractual obligations.

Prescribes cost allocation guidelines for an applicant seeking seeking interconnection of facilities or transmission service.

Declares that a standard market design rule shall not be effective except to the extent it is: (1) approved by Congress in a law enacted after the date of enactment of this Act; and (2) consented to in writing by the pertinent State Commission. Defines a standard market design rule as: (1) one promulgated by FERC pursuant to a specified proposed rulemaking; or (2) any rule or order of general applicability addressing transmission access or market design in which FERC asserts jurisdiction over the transmission component of bundled retail sales of electric energy or requires the transfer of ownership, operation, or control of transmission facilities to a regional transmission organization, independent transmission provider, or similar organization.