Title 16 — ConservationRelease 119-73

§824s Transmission infrastructure investment

Title 16 › Chapter CHAPTER 12— - FEDERAL REGULATION AND DEVELOPMENT OF POWER › Subchapter SUBCHAPTER II— - REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE COMMERCE › § 824s

Last updated Apr 6, 2026|Official source

Summary

Within 1 year after August 8, 2005, the Commission must make rules that let public utilities use incentive-based (including performance-based) rates for sending electric power across state lines. The goal is to help consumers by keeping the grid reliable and lowering the cost of delivered power through less congestion. The rules must encourage investment in transmission facilities, offer returns that attract new investors, promote technologies that boost capacity and efficiency, and let utilities recover prudent costs to meet mandatory reliability standards (section 824o) and for transmission development (section 824p). If a utility joins a Transmission Organization, the Commission must, where it has authority, provide incentives and allow cost recovery through the utility’s or the organization’s transmission rates. All rates under these rules must still meet the just, reasonable, and non‑discriminatory requirements of sections 824d and 824e.

Full Legal Text

Title 16, §824s

Conservation — Source: USLM XML via OLRC

(a)Not later than 1 year after August 8, 2005, the Commission shall establish, by rule, incentive-based (including performance-based) rate treatments for the transmission of electric energy in interstate commerce by public utilities for the purpose of benefitting consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.

(b)The rule shall—

(1)promote reliable and economically efficient transmission and generation of electricity by promoting capital investment in the enlargement, improvement, maintenance, and operation of all facilities for the transmission of electric energy in interstate commerce, regardless of the ownership of the facilities;

(2)provide a return on equity that attracts new investment in transmission facilities (including related transmission technologies);

(3)encourage deployment of transmission technologies and other measures to increase the capacity and efficiency of existing transmission facilities and improve the operation of the facilities; and

(4)allow recovery of—

(A)all prudently incurred costs necessary to comply with mandatory reliability standards issued pursuant to section 824o of this title; and

(B)all prudently incurred costs related to transmission infrastructure development pursuant to section 824p of this title.

(c)In the rule issued under this section, the Commission shall, to the extent within its jurisdiction, provide for incentives to each transmitting utility or electric utility that joins a Transmission Organization. The Commission shall ensure that any costs recoverable pursuant to this subsection may be recovered by such utility through the transmission rates charged by such utility or through the transmission rates charged by the Transmission Organization that provides transmission service to such utility.

(d)All rates approved under the rules adopted pursuant to this section, including any revisions to the rules, are subject to the requirements of section 824d and 824e of this title that all rates, charges, terms, and conditions be just and reasonable and not unduly discriminatory or preferential.

Reference

Citations & Metadata

Citation

16 U.S.C. § 824s

Title 16 — Conservation

Last Updated

Apr 6, 2026

Release point: 119-73