§16431 Federal Utility Participation in Transmission Organizations

Summary

Federal utilities may make contracts that let a Transmission Organization run or use all or part of their transmission system. The agency in charge decides when to do this: for a Federal power marketing agency it is the Secretary (who can name the agency’s Administrator), and for the Tennessee Valley Authority it is the TVA Board. A Federal utility means either a Federal power marketing agency or the TVA. A transmission system means electric transmission facilities the United States owns, leases, or has under contract and that a Federal utility operates. A Transmission Organization is as defined in another law. Any contract must set clear operating rules that the utility head thinks are needed. The rules must let the utility recover its costs, fit with existing contracts and financing, and follow the utility’s legal powers and limits. The contract must let the utility oversee the Transmission Organization, include a way to resolve disputes (including arbitration), and let the utility quit the organization and end the deal. These actions do not give the Commission control over the utility’s generation, capacity, energy, or power sales. Transfers under these rules do not override laws in effect on August 8, 2005 (for example environmental, fish and wildlife, flood control, navigation, water delivery, or recreation laws) and do not allow breaking contracts or treaties.