42 U.S.C. § 16455: Affiliate transactions

Summary

Keeps the Federal Energy Regulatory Commission’s power under the Federal Power Act to make sure interstate utility rates are fair. That power includes allowing or denying cost pass‑throughs, stopping one company from using rates to help a related company, and making rules to protect consumers. Federal or State regulators can still decide whether a utility may recover in rates costs from a related (affiliate) company.

Title 42, §16455

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Commission authority unaffected

Nothing in this part shall limit the authority of the Commission under the Federal Power Act (16 U.S.C. 791a et seq.) to require that jurisdictional rates are just and reasonable, including the ability to deny or approve the pass through of costs, the prevention of cross-subsidization, and the issuance of such rules and regulations as are necessary or appropriate for the protection of utility consumers.

(b)Recovery of costs

Nothing in this part shall preclude the Commission or a State commission from exercising its jurisdiction under otherwise applicable law to determine whether a public-utility company, public utility, or natural gas company may recover in rates any costs of an activity performed by an associate company, or any costs of goods or services acquired by such public-utility company from an associate company.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This part, referred to in text, was in the original “this subtitle”, meaning subtitle F (§§ 1261–1277) of title XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which enacted this part, amended section 824 and 824m of Title 16, Conservation, repealed chapter 2C (§ 79 et seq.) of Title 15, Commerce and Trade, and section 825q of Title 16, and enacted provisions set out as notes under section 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see

Short Title

note set out under section 15801 of this title and Tables. The Federal Power Act, referred to in subsec. (a), is act June 10, 1920, ch. 285, 41 Stat. 1063, which is classified generally to chapter 12 (§ 791a et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see section 791a of Title 16 and Tables.

§16455 Affiliate Transactions