Fair Allocation of Interstate Rates Act

Limit out-of-state transmission charges

If enacted, this bill would limit when interstate transmission project costs can be charged to retail electricity customers. It would define a "covered policy" to include any State or local policy and a "covered transmission facility" as an interstate line planned, built, or used to implement such a policy. Transmission providers serving customers in two or more States could not allocate costs for those facilities to customers who do not live in the State whose policy drove the project, unless that customer's State or a designated public official gives express consent. The bill would create presumptions that benefits and cost-causers are residents of the policy State. FERC would have to issue rules to implement this within 180 days of enactment. If enacted, out-of-state customers could avoid paying for another State's policy-driven projects, while in-state customers could face higher bills or new cost-sharing negotiations.