Title 16, ConservationRelease 119-110

§824j–1 Open Access by Unregulated Transmitting Utilities

Title 16 › CHAPTER 12 — FEDERAL REGULATION AND DEVELOPMENT OF POWER › SUBCHAPTER II — REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE COMMERCE › § 824j–1

Last updated Sep 22, 2026|Official source

Summary

The federal electricity regulator can make an unregulated transmitting utility let others use its high‑voltage transmission lines. An unregulated transmitting utility is an entity that owns or runs transmission lines that move electric power across state lines and fits a special legal category. The regulator can require such a utility to sell transmission service at rates like the ones it charges itself and on terms that are similar and not unfairly biased. Some utilities are exempt. Exemptions apply if the utility sells no more than 4,000,000 megawatt‑hours a year, does not own or operate transmission facilities needed for an interconnected grid, or meets other public‑interest criteria the regulator sets. Local distribution lines are not covered. If a complaint leads to a hearing and the regulator finds, more likely than not and after considering reliability rules, that an exemption harms grid reliability, the regulator must revoke the exemption. Public utility rate change rules apply to these utilities, and the regulator can send rates back for review. Requiring service here does not stop people from seeking service under other rules. The regulator cannot force a state or city to act if that would violate federal private‑activity bond tax rules, and it cannot force a utility to hand over control of its lines to a regional transmission organization.

Full Legal Text

Title 16, §824j–1

Conservation, Source: USLM XML via OLRC

(a)Definition of unregulated transmitting utility
In this section, the term “unregulated transmitting utility” means an entity that—
(1)owns or operates facilities used for the transmission of electric energy in interstate commerce; and
(2)is an entity described in section 824(f) of this title.
(b)Transmission operation services
Subject to section 824k(h) of this title, the Commission may, by rule or order, require an unregulated transmitting utility to provide transmission services—
(1)at rates that are comparable to those that the unregulated transmitting utility charges itself; and
(2)on terms and conditions (not relating to rates) that are comparable to those under which the unregulated transmitting utility provides transmission services to itself and that are not unduly discriminatory or preferential.
(c)Exemption
The Commission shall exempt from any rule or order under this section any unregulated transmitting utility that—
(1)sells not more than 4,000,000 megawatt hours of electricity per year;
(2)does not own or operate any transmission facilities that are necessary for operating an interconnected transmission system (or any portion of the system); or
(3)meets other criteria the Commission determines to be in the public interest.
(d)Local distribution facilities
The requirements of subsection (b) shall not apply to facilities used in local distribution.
(e)Exemption termination
If the Commission, after an evidentiary hearing held on a complaint and after giving consideration to reliability standards established under section 824o of this title, finds on the basis of a preponderance of the evidence that any exemption granted pursuant to subsection (c) unreasonably impairs the continued reliability of an interconnected transmission system, the Commission shall revoke the exemption granted to the transmitting utility.
(f)Application to unregulated transmitting utilities
The rate changing procedures applicable to public utilities under subsections (c) and (d) of section 824d of this title are applicable to unregulated transmitting utilities for purposes of this section.
(g)Remand (h) Other requests
In exercising authority under subsection (b)(1), the Commission may remand transmission rates to an unregulated transmitting utility for review and revision if necessary to meet the requirements of subsection (b).
(i)Limitation
The Commission may not require a State or municipality to take action under this section that would violate a private activity bond rule for purposes of section 141 of title 26.
(j)Transfer of control of transmitting facilities
Nothing in this section authorizes the Commission to require an unregulated transmitting utility to transfer control or operational control of its transmitting facilities to a Transmission Organization that is designated to provide nondiscriminatory transmission access.

Reference

Citations & Metadata

Citation

16 U.S.C. § 824j–1

Title 16, Conservation

Last Updated

Sep 22, 2026

Release point: 119-110