§824j — Title 16 Conservation | U.S. Code

Summary

Electric companies that make power to sell can ask the Federal Energy Regulatory Commission (the Commission) to order a transmission owner to carry their power and even expand lines if needed. The applicant must first ask the transmission owner for service at least 60 days before filing. The Commission will give public notice, tell affected state regulators and utilities, and hold a hearing. It can order service only if the request meets the rules in section 824k and is in the public interest. The Commission will not order service (under this rule or section 824i) if doing so would unreasonably hurt the reliability of the electric system after considering regional or national reliability standards. A Commission order cannot force a transmission owner to replace power that the owner is already required to provide under a contract or under a rate schedule on file until that contract or rate schedule ends or is changed. A transmission owner ordered to provide service can ask the Commission to stop or change the order. The Commission can end or change an order if circumstances change, if the owner no longer has extra capacity, or if the owner tried but failed to get needed approvals or rights to expand lines. If the order is ended or changed, the Commission must allow fair compensation and time for affected utilities to find other arrangements and protect ratepayers. The Commission cannot change an order that included agreed-upon time limits or agreed procedures for ending or changing it. "Facilities" here means only equipment used to generate or move electric power.

Title 16, §824j

Conservation — Source: USLM XML via OLRC

(a)Any electric utility, Federal power marketing agency, or any other person generating electric energy for sale for resale, may apply to the Commission for an order under this subsection requiring a transmitting utility to provide transmission services (including any enlargement of transmission capacity necessary to provide such services) to the applicant. Upon receipt of such application, after public notice and notice to each affected State regulatory authority, each affected electric utility, and each affected Federal power marketing agency, and after affording an opportunity for an evidentiary hearing, the Commission may issue such order if it finds that such order meets the requirements of section 824k of this title, and would otherwise be in the public interest. No order may be issued under this subsection unless the applicant has made a request for transmission services to the transmitting utility that would be the subject of such order at least 60 days prior to its filing of an application for such order.

(b)No order may be issued under this section or section 824i of this title if, after giving consideration to consistently applied regional or national reliability standards, guidelines, or criteria, the Commission finds that such order would unreasonably impair the continued reliability of electric systems affected by the order.

(c)No order may be issued under subsection (a) or (b) which requires the transmitting utility subject to the order to transmit, during any period, an amount of electric energy which replaces any amount of electric energy—

(1)required to be provided to such applicant pursuant to a contract during such period, or

(2)currently provided to the applicant by the utility subject to the order pursuant to a rate schedule on file during such period with the Commission: Provided, That nothing in this subparagraph shall prevent an application for an order hereunder to be filed prior to termination or modification of an existing rate schedule: Provided, That such order shall not become effective until termination of such rate schedule or the modification becomes effective.

(d)(1)Any transmitting utility ordered under subsection (a) or (b) to provide transmission services may apply to the Commission for an order permitting such transmitting utility to cease providing all, or any portion of, such services. After public notice, notice to each affected State regulatory authority, each affected Federal power marketing agency, each affected transmitting utility, and each affected electric utility, and after an opportunity for an evidentiary hearing, the Commission shall issue an order terminating or modifying the order issued under subsection (a) or (b), if the transmitting utility providing such transmission services has demonstrated, and the Commission has found, that—

(A)due to changed circumstances, the requirements applicable, under this section and section 824k of this title, to the issuance of an order under subsection (a) or (b) are no longer met, or 11 So in original. The word “or” probably should not appear.

(B)any transmission capacity of the utility providing transmission services under such order which was, at the time such order was issued, in excess of the capacity necessary to serve its own customers is no longer in excess of the capacity necessary for such purposes, or

(C)the ordered transmission services require enlargement of transmission capacity and the transmitting utility subject to the order has failed, after making a good faith effort, to obtain the necessary approvals or property rights under applicable Federal, State, and local laws.

(2)Any order issued under this subsection terminating or modifying an order issued under subsection (a) or (b) shall—

(A)provide for any appropriate compensation, and

(B)provide the affected electric utilities adequate opportunity and time to—

(i)make suitable alternative arrangements for any transmission services terminated or modified, and

(ii)insure that the interests of ratepayers of such utilities are adequately protected.

(3)No order may be issued under this subsection terminating or modifying any order issued under subsection (a) or (b) if the order under subsection (a) or (b) includes terms and conditions agreed upon by the parties which—

(A)fix a period during which transmission services are to be provided under the order under subsection (a) or (b), or

(B)otherwise provide procedures or methods for terminating or modifying such order (including, if appropriate, the return of the transmission capacity when necessary to take into account an increase, after the issuance of such order, in the needs of the transmitting utility subject to such order for transmission capacity).

(e)As used in this section, the term “facilities” means only facilities used for the generation or transmission of electric energy.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2005—Subsec. (c). Pub. L. 109–58, § 1295(c)(1), struck out par. (2) designation before introductory provisions, redesignated former subpars. (A) and (B) as pars. (1) and (2), respectively, and in par. (2) substituted “termination or modification” for “termination of modification”. Subsec. (d)(1). Pub. L. 109–58, § 1295(c)(2), substituted “if the transmitting utility providing” for “if the electric utility providing” in introductory provisions. 1992—Subsec. (a). Pub. L. 102–486, § 721(1), amended first sentence generally. Prior to amendment, first sentence read as follows: “Any electric utility, geothermal power producer (including a producer which is not an electric utility), or Federal power marketing agency may apply to the Commission for an order under this subsection requiring any other electric utility to provide transmission services to the applicant (including any enlargement of transmission capacity necessary to provide such services).” Pub. L. 102–486, § 721(2), in second sentence, substituted “the Commission may issue such order if it finds that such order meets the requirements of section 824k of this title, and would otherwise be in the public interest. No order may be issued under this subsection unless the applicant has made a request for transmission services to the transmitting utility that would be the subject of such order at least 60 days prior to its filing of an application for such order.” for “the Commission may issue such order if it finds that such order— “(1) is in the public interest, “(2) would— “(A) conserve a significant amount of energy, “(B) significantly promote the efficient use of facilities and resources, or “(C) improve the reliability of any electric utility system to which the order applies, and “(3) meets the requirements of section 824k of this title.” Subsec. (b). Pub. L. 102–486, § 721(3), amended subsec. (b) generally, substituting provisions relating to reliability of electric service for provisions which related to transmission service by sellers of electric energy for resale and notice, hearing, and determinations by Commission. Subsec. (c). Pub. L. 102–486, § 721(4), struck out pars. (1), (3), and (4), and substituted “which requires the transmitting” for “which requires the electric” in introductory provisions of par. (2). Prior to amendment, pars. (1), (3), and (4) read as follows: “(1) No order may be issued under subsection (a) of this section unless the Commission determines that such order would reasonably preserve existing competitive relationships. “(3) No order may be issued under the authority of subsection (a) or (b) of this section which is inconsistent with any State law which governs the retail marketing areas of electric utilities. “(4) No order may be issued under subsection (a) or (b) of this section which provides for the transmission of electric energy directly to an ultimate consumer.” Subsec. (d). Pub. L. 102–486, § 721(5), in first sentence substituted “transmitting” for “electric” before “utility” in two places, in second sentence inserted “each affected transmitting utility,” before “and each affected electric utility”, in par. (1) substituted “, or” for period at end of subpar. (B) and added subpar. (C), and in par. (3)(B) substituted “transmitting” for “electric” before “utility”. 1986—Subsec. (c)(2)(B). Pub. L. 99–495 inserted provisions that nothing in this subparagraph shall prevent an application for an order hereunder to be filed prior to termination or modification of an existing rate schedule, provided that such order shall not become effective until termination of such rate schedule or the modification becomes effective. 1980—Subsec. (a). Pub. L. 96–294 added applicability to geothermal power producers.

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–495 effective with respect to each license, permit, or exemption issued under this chapter after Oct. 16, 1986, see section 18 of Pub. L. 99–495, set out as a note under section 797 of this title. State Authorities;

Construction

Nothing in amendment by Pub. L. 102–486 to be construed as affecting or intending to affect, or in any way to interfere with, authority of any State or local government relating to environmental protection or siting of facilities, see section 731 of Pub. L. 102–486, set out as a note under section 796 of this title.

§824j Wheeling Authority