Title 16ConservationRelease 119-73

§2623 Adoption of certain standards

Title 16 › Chapter CHAPTER 46— - PUBLIC UTILITY REGULATORY POLICIES › Subchapter SUBCHAPTER II— - STANDARDS FOR ELECTRIC UTILITIES › § 2623

Last updated Apr 6, 2026|Official source

Summary

Within two years after November 9, 1978, each state utility regulator (for the utilities it controls) and every nonregulated electric utility must give public notice and hold a hearing about certain federal standards. After the hearing they must either adopt the standards if they decide adoption is appropriate and allowed under state law, or write down and publish their reasons for not adopting any standard. The standards cover five things: limiting or banning master metering in new buildings when appropriate; stopping rate increases through automatic adjustment clauses unless those clauses meet the law’s rules; requiring utilities to send customers information about rate schedules; allowing service shutoffs only under specified procedures; and preventing utilities from charging customers for promotional or political advertising costs (those costs must be paid by the utility’s shareholders).

Full Legal Text

Title 16, §2623

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(a)Not later than two years after November 9, 1978, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall provide public notice and conduct a hearing respecting the standards established by subsection (b) and, on the basis of such hearing, shall—
(1)adopt the standards established by subsection (b) (other than paragraph (4) thereof) if, and to the extent, such authority or nonregulated electric utility determines that such adoption is appropriate to carry out the purposes of this chapter, is otherwise appropriate, and is consistent with otherwise applicable State law, and
(2)adopt the standard established by subsection (b)(4) if, and to the extent, such authority or nonregulated electric utility determines that such adoption is appropriate and consistent with otherwise applicable State law.
(b)The following Federal standards are hereby established:
(1)To the extent determined appropriate under section 2625(d) of this title, master metering of electric service in the case of new buildings shall be prohibited or restricted to the extent necessary to carry out the purposes of this chapter.
(2)No electric utility may increase any rate pursuant to an automatic adjustment clause unless such clause meets the requirements of section 2625(e) of this title.
(3)Each electric utility shall transmit to each of its electric consumers information regarding rate schedules in accordance with the requirements of section 2625(f) of this title.
(4)No electric utility may terminate electric service to any electric consumer except pursuant to procedures described in section 2625(g) of this title.
(5)No electric utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditure by such utility for promotional or political advertising as defined in section 2625(h) of this title.
(c)Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility, within the two-year period specified in subsection (a), shall (1) adopt, pursuant to subsection (a), each of the standards established by subsection (b) or, (2) with respect to any such standard which is not adopted, such authority or nonregulated electric utility shall state in writing that it has determined not to adopt such standard, together with the reasons for such determination. Such statement of reasons shall be available to the public.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a) and (b), was in the original “this title”, meaning title I (§ 101 et seq.) of Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted subchapters I to IV of this chapter and section 6808 of Title 42, The Public Health and Welfare, and amended sections 6802 to 6807 of Title 42. For complete classification of title I to the Code, see Tables.

Reference

Citations & Metadata

Citation

16 U.S.C. § 2623

Title 16Conservation

Last Updated

Apr 6, 2026

Release point: 119-73