Creates an exemption carving consumer-regulated electric utilities out of regulation under the Federal Power Act, removing the Act's applicability to those utilities as described in this section.

Exempts consumer-regulated electric utilities from the merger, consolidation, acquisition, or disposition approval requirements under section 203 of the Federal Power Act (16 U.S.C. 824b).

Exempts consumer-regulated electric utilities from reliability standards and related obligations under section 215 of the Federal Power Act (16 U.S.C. 824o), removes status as part of the bulk-power system or Bulk Electric System for those utilities, and relieves them of registration and compliance obligations with the Electric Reliability Organization unless they voluntarily elect to connect to the bulk-power system.

Revises the introductory matter (designating it as subsection (a)) and adds a new subsection (b) exempting a holding company from application of the subtitle solely by reason of its ownership or control of a consumer-regulated electric utility (as defined in section 2).

Adds a new subsection (o) to section 210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) creating an exemption for 'consumer-regulated electric utilities' from the requirements to interconnect with, purchase from, or sell to an electric utility under that section.