Title 16, ConservationRelease 119-73not60

§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 Apr 5, 2026|Official source

Summary

The Commission may require certain owners of interstate electric transmission lines to offer transmission service to others. They must charge rates like the rates they charge themselves and must use the same kinds of non-rate terms, and those terms must not be unfair or favor some customers. Unregulated transmitting utility: a company that owns or runs facilities that move electricity across state lines and is the kind of entity listed in section 824(f). The Commission must exempt utilities that sell no more than 4,000,000 megawatt-hours a year, that don’t own transmission facilities needed to run an interconnected system, or that meet other public-interest tests. Local distribution facilities are not covered. The Commission can hold a hearing and remove an exemption if it finds, on the balance of the evidence and after looking at reliability rules under section 824o, that reliability is harmed. Rules about changing rates in section 824d(c) and (d) apply, the Commission can send rates back for revision, and these rules do not force states, municipalities, or utilities to violate federal bond rules or to hand over control of their facilities to a designated Transmission Organization.

Full Legal Text

Title 16, §824j–1

Conservation, Source: USLM XML via OLRC

(a)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)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)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)The requirements of subsection (b) shall not apply to facilities used in local distribution.
(e)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)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)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).
(h)The provision of transmission services under subsection (b) does not preclude a request for transmission services under section 824j of this title.
(i)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)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

Apr 5, 2026

Release point: 119-73not60