§6803 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Secretary must make proposals to change how electric utilities set rates so people use less energy, fewer new power plants are needed, and consumers pay less. Plans should include cost‑effective load management; pricing based on marginal cost or time‑of‑use; rules that discourage wasting fuel and encourage buying fuel cheaply; and rates or policies that help keep the system and major equipment reliable. The proposals must be sent to each House of Congress within 6 months after August 14, 1976, and must include an analysis of any projected savings in petroleum products, natural gas, electric energy, and other energy resources; any reduction in the need for new generating capacity and in utilities’ capital demand; and any changes in the cost of electric energy to consumers.

Title 42, §6803

The Public Health and Welfare — Source: USLM XML via OLRC

(a)The Secretary shall develop proposals to improve electric utility rate design. Such proposals shall be designed to encourage energy conservation, minimize the need for new electrical generating capacity, and minimize costs of electric energy to consumers, and shall include (but not be limited to) proposals which provide for the development and implementation of—

(1)load management techniques which are cost effective;

(2)rates which reflect marginal cost of service, or time of use of service, or both;

(3)ratemaking policies which discourage inefficient use of fuel and encourage economical purchases of fuel; and

(4)rates (or other regulatory policies) which encourage electric utility system reliability and reliability of major items of electric utility equipment.

(b)The proposals prepared under subsection (a) shall be transmitted to each House of Congress not later than 6 months after August 14, 1976, for review and for such further action as the Congress may direct by law. Such proposals shall be accompanied by an analysis of—

(1)the projected savings (if any) in consumption of petroleum products, natural gas, electric energy, and other energy resources,

(2)the reduction (if any) in the need for new electrical generating capacity, and of the demand for capital by the electric utility industry, and

(3)changes (if any) in the cost of electric energy to consumers,

Editorial Notes

Amendments

1978—Subsec. (a). Pub. L. 95–617 substituted “Secretary” for “Administrator”, meaning Administrator of the Federal Energy Administration.

§6803 Development of electric utility rate design proposals by Secretary; contents; submission to Congress; supporting analysis

Summary

Title 42, §6803

Notes & Related Subsidiaries

Editorial Notes

Amendments

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