Fair Allocation of Interstate Rates Act
Sponsored By: Senator Kevin Cramer
Introduced
Summary
Stops out-of-state customers from being charged for transmission built to advance another State's policy without that State's consent. The bill would add a new rule to the Federal Power Act that forbids allocating those costs to consumers who do not live in the policy state unless the consumer's State or its designated official agrees.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
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.
Sponsors & CoSponsors
Sponsor
Kevin Cramer
ND • R
Cosponsors
John Hoeven
ND • R
Sponsored 12/1/2025
Tom Cotton
AR • R
Sponsored 3/11/2026
Roll Call Votes
No roll call votes available for this bill.
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