SUBCHAPTER II—STANDARDS FOR ELECTRIC UTILITIES
§2621. Consideration and determination respecting certain ratemaking standards
(a) Consideration and determination
Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall consider each standard established by subsection (d) and make a determination concerning whether or not it is appropriate to implement such standard to carry out the purposes of this chapter. For purposes of such consideration and determination in accordance with subsections (b) and (c), and for purposes of any review of such consideration and determination in any court in accordance with
(b) Procedural requirements for consideration and determination
(1) The consideration referred to in subsection (a) shall be made after public notice and hearing. The determination referred to in subsection (a) shall be—
(A) in writing,
(B) based upon findings included in such determination and upon the evidence presented at the hearing, and
(C) available to the public.
(2) Except as otherwise provided in paragraph (1), in the second sentence of
(c) Implementation
(1) The State regulatory authority (with respect to each electric utility for which it has ratemaking authority) or nonregulated electric utility may, to the extent consistent with otherwise applicable State law—
(A) implement any such standard determined under subsection (a) to be appropriate to carry out the purposes of this chapter, or
(B) decline to implement any such standard.
(2) If a State regulatory authority (with respect to each electric utility for which it has ratemaking authority) or nonregulated electric utility declines to implement any standard established by subsection (d) which is determined under subsection (a) to be appropriate to carry out the purposes of this chapter, such authority or nonregulated electric utility shall state in writing the reasons therefor. Such statement of reasons shall be available to the public.
(3) If a State regulatory authority implements a standard established by subsection (d)(7) or (8), such authority shall—
(A) consider the impact that implementation of such standard would have on small businesses engaged in the design, sale, supply, installation or servicing of energy conservation, energy efficiency or other demand side management measures, and
(B) implement such standard so as to assure that utility actions would not provide such utilities with unfair competitive advantages over such small businesses.
(d) Establishment
The following Federal standards are hereby established:
(1) Cost of service
Rates charged by any electric utility for providing electric service to each class of electric consumers shall be designed, to the maximum extent practicable, to reflect the costs of providing electric service to such class, as determined under
(2) Declining block rates
The energy component of a rate, or the amount attributable to the energy component in a rate, charged by any electric utility for providing electric service during any period to any class of electric consumers may not decrease as kilowatt-hour consumption by such class increases during such period except to the extent that such utility demonstrates that the costs to such utility of providing electric service to such class, which costs are attributable to such energy component, decrease as such consumption increases during such period.
(3) Time-of-day rates
The rates charged by any electric utility for providing electric service to each class of electric consumers shall be on a time-of-day basis which reflects the costs of providing electric service to such class of electric consumers at different times of the day unless such rates are not cost-effective with respect to such class, as determined under
(4) Seasonal rates
The rates charged by an electric utility for providing electric service to each class of electric consumers shall be on a seasonal basis which reflects the costs of providing service to such class of consumers at different seasons of the year to the extent that such costs vary seasonally for such utility.
(5) Interruptible rates
Each electric utility shall offer each industrial and commercial electric consumer an interruptible rate which reflects the cost of providing interruptible service to the class of which such consumer is a member.
(6) Load management techniques
Each electric utility shall offer to its electric consumers such load management techniques as the State regulatory authority (or the nonregulated electric utility) has determined will—
(A) be practicable and cost-effective, as determined under
(B) be reliable, and
(C) provide useful energy or capacity management advantages to the electric utility.
(7) Integrated resource planning
Each electric utility shall employ integrated resource planning. All plans or filings before a State regulatory authority to meet the requirements of this paragraph must be updated on a regular basis, must provide the opportunity for public participation and comment, and contain a requirement that the plan be implemented.
(8) Investments in conservation and demand management
The rates allowed to be charged by a State regulated electric utility shall be such that the utility's investment in and expenditures for energy conservation, energy efficiency resources, and other demand side management measures are at least as profitable, giving appropriate consideration to income lost from reduced sales due to investments in and expenditures for conservation and efficiency, as its investments in and expenditures for the construction of new generation, transmission, and distribution equipment. Such energy conservation, energy efficiency resources and other demand side management measures shall be appropriately monitored and evaluated.
(9) Energy efficiency investments in power generation and supply
The rates charged by any electric utility shall be such that the utility is encouraged to make investments in, and expenditures for, all cost-effective improvements in the energy efficiency of power generation, transmission and distribution. In considering regulatory changes to achieve the objectives of this paragraph, State regulatory authorities and nonregulated electric utilities shall consider the disincentives caused by existing ratemaking policies, and practices, and consider incentives that would encourage better maintenance, and investment in more efficient power generation, transmission and distribution equipment.
(10) Consideration of the effects of wholesale power purchases on utility cost of capital; effects of leveraged capital structures on the reliability of wholesale power sellers; and assurance of adequate fuel supplies
(A) To the extent that a State regulatory authority requires or allows electric utilities for which it has ratemaking authority to consider the purchase of long-term wholesale power supplies as a means of meeting electric demand, such authority shall perform a general evaluation of:
(i) the potential for increases or decreases in the costs of capital for such utilities, and any resulting increases or decreases in the retail rates paid by electric consumers, that may result from purchases of long-term wholesale power supplies in lieu of the construction of new generation facilities by such utilities;
(ii) whether the use by exempt wholesale generators (as defined in section 79z–5a 1 of title 15) of capital structures which employ proportionally greater amounts of debt than the capital structures of such utilities threatens reliability or provides an unfair advantage for exempt wholesale generators over such utilities;
(iii) whether to implement procedures for the advance approval or disapproval of the purchase of a particular long-term wholesale power supply; and
(iv) whether to require as a condition for the approval of the purchase of power that there be reasonable assurances of fuel supply adequacy.
(B) For purposes of implementing the provisions of this paragraph, any reference contained in this section to November 9, 1978, shall be deemed to be a reference to October 24, 1992.
(C) Notwithstanding any other provision of Federal law, nothing in this paragraph shall prevent a State regulatory authority from taking such action, including action with respect to the allowable capital structure of exempt wholesale generators, as such State regulatory authority may determine to be in the public interest as a result of performing evaluations under the standards of subparagraph (A).
(D) Notwithstanding
(E) Notwithstanding subsections (b) and (c) of
(11) Net metering
Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purposes of this paragraph, the term "net metering service" means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.
(12) Fuel sources
Each electric utility shall develop a plan to minimize dependence on 1 fuel source and to ensure that the electric energy it sells to consumers is generated using a diverse range of fuels and technologies, including renewable technologies.
(13) Fossil fuel generation efficiency
Each electric utility shall develop and implement a 10-year plan to increase the efficiency of its fossil fuel generation.
(14) Time-based metering and communications
(A) Not later than 18 months after August 8, 2005, each electric utility shall offer each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule under which the rate charged by the electric utility varies during different time periods and reflects the variance, if any, in the utility's costs of generating and purchasing electricity at the wholesale level. The time-based rate schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology.
(B) The types of time-based rate schedules that may be offered under the schedule referred to in subparagraph (A) include, among others—
(i) time-of-use pricing whereby electricity prices are set for a specific time period on an advance or forward basis, typically not changing more often than twice a year, based on the utility's cost of generating and/or purchasing such electricity at the wholesale level for the benefit of the consumer. Prices paid for energy consumed during these periods shall be pre-established and known to consumers in advance of such consumption, allowing them to vary their demand and usage in response to such prices and manage their energy costs by shifting usage to a lower cost period or reducing their consumption overall;
(ii) critical peak pricing whereby time-of-use prices are in effect except for certain peak days, when prices may reflect the costs of generating and/or purchasing electricity at the wholesale level and when consumers may receive additional discounts for reducing peak period energy consumption;
(iii) real-time pricing whereby electricity prices are set for a specific time period on an advanced or forward basis, reflecting the utility's cost of generating and/or purchasing electricity at the wholesale level, and may change as often as hourly; and
(iv) credits for consumers with large loads who enter into pre-established peak load reduction agreements that reduce a utility's planned capacity obligations.
(C) Each electric utility subject to subparagraph (A) shall provide each customer requesting a time-based rate with a time-based meter capable of enabling the utility and customer to offer and receive such rate, respectively.
(D) For purposes of implementing this paragraph, any reference contained in this section to November 9, 1978, shall be deemed to be a reference to August 8, 2005.
(E) In a State that permits third-party marketers to sell electric energy to retail electric consumers, such consumers shall be entitled to receive the same time-based metering and communications device and service as a retail electric consumer of the electric utility.
(F) Notwithstanding subsections (b) and (c) of
(15) Interconnection
Each electric utility shall make available, upon request, interconnection service to any electric consumer that the electric utility serves. For purposes of this paragraph, the term "interconnection service" means service to an electric consumer under which an on-site generating facility on the consumer's premises shall be connected to the local distribution facilities. Interconnection services shall be offered based upon the standards developed by the Institute of Electrical and Electronics Engineers: IEEE Standard 1547 for Interconnecting Distributed Resources with Electric Power Systems, as they may be amended from time to time. In addition, agreements and procedures shall be established whereby the services are offered shall promote current best practices of interconnection for distributed generation, including but not limited to practices stipulated in model codes adopted by associations of state regulatory agencies. All such agreements and procedures shall be just and reasonable, and not unduly discriminatory or preferential.
(16) Integrated resource planning
Each electric utility shall—
(A) integrate energy efficiency resources into utility, State, and regional plans; and
(B) adopt policies establishing cost-effective energy efficiency as a priority resource.
(17) Rate design modifications to promote energy efficiency investments
(A) In general
The rates allowed to be charged by any electric utility shall—
(i) align utility incentives with the delivery of cost-effective energy efficiency; and
(ii) promote energy efficiency investments.
(B) Policy options
In complying with subparagraph (A), each State regulatory authority and each nonregulated utility shall consider—
(i) removing the throughput incentive and other regulatory and management disincentives to energy efficiency;
(ii) providing utility incentives for the successful management of energy efficiency programs;
(iii) including the impact on adoption of energy efficiency as 1 of the goals of retail rate design, recognizing that energy efficiency must be balanced with other objectives;
(iv) adopting rate designs that encourage energy efficiency for each customer class;
(v) allowing timely recovery of energy efficiency-related costs; and
(vi) offering home energy audits, offering demand response programs, publicizing the financial and environmental benefits associated with making home energy efficiency improvements, and educating homeowners about all existing Federal and State incentives, including the availability of low-cost loans, that make energy efficiency improvements more affordable.
(18) Consideration of smart grid investments
(A) In general
Each State shall consider requiring that, prior to undertaking investments in nonadvanced grid technologies, an electric utility of the State demonstrate to the State that the electric utility considered an investment in a qualified smart grid system based on appropriate factors, including—
(i) total costs;
(ii) cost-effectiveness;
(iii) improved reliability;
(iv) security;
(v) system performance; and
(vi) societal benefit.
(B) Rate recovery
Each State shall consider authorizing each electric utility of the State to recover from ratepayers any capital, operating expenditure, or other costs of the electric utility relating to the deployment of a qualified smart grid system, including a reasonable rate of return on the capital expenditures of the electric utility for the deployment of the qualified smart grid system.
(C) Obsolete equipment
Each State shall consider authorizing any electric utility or other party of the State to deploy a qualified smart grid system to recover in a timely manner the remaining book-value costs of any equipment rendered obsolete by the deployment of the qualified smart grid system, based on the remaining depreciable life of the obsolete equipment.
(19) Smart grid information
(A) Standard
All electricity purchasers shall be provided direct access, in written or electronic machine-readable form as appropriate, to information from their electricity provider as provided in subparagraph (B).
(B) Information
Information provided under this section, to the extent practicable, shall include:
(i) Prices
Purchasers and other interested persons shall be provided with information on—
(I) time-based electricity prices in the wholesale electricity market; and
(II) time-based electricity retail prices or rates that are available to the purchasers.
(ii) Usage
Purchasers shall be provided with the number of electricity units, expressed in kwh, purchased by them.
(iii) Intervals and projections
Updates of information on prices and usage shall be offered on not less than a daily basis, shall include hourly price and use information, where available, and shall include a day-ahead projection of such price information to the extent available.
(iv) Sources
Purchasers and other interested persons shall be provided annually with written information on the sources of the power provided by the utility, to the extent it can be determined, by type of generation, including greenhouse gas emissions associated with each type of generation, for intervals during which such information is available on a cost-effective basis.
(C) Access
Purchasers shall be able to access their own information at any time through the Internet and on other means of communication elected by that utility for Smart Grid applications. Other interested persons shall be able to access information not specific to any purchaser through the Internet. Information specific to any purchaser shall be provided solely to that purchaser.
(20) Demand-response practices
(A) In general
Each electric utility shall promote the use of demand-response and demand flexibility practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand.
(B) Rate recovery
(i) In general
Each State regulatory authority shall consider establishing rate mechanisms allowing an electric utility with respect to which the State regulatory authority has ratemaking authority to timely recover the costs of promoting demand-response and demand flexibility practices in accordance with subparagraph (A).
(ii) Nonregulated electric utilities
A nonregulated electric utility may establish rate mechanisms for the timely recovery of the costs of promoting demand-response and demand flexibility practices in accordance with subparagraph (A).
(21) Electric vehicle charging programs
Each State shall consider measures to promote greater electrification of the transportation sector, including the establishment of rates that—
(A) promote affordable and equitable electric vehicle charging options for residential, commercial, and public electric vehicle charging infrastructure;
(B) improve the customer experience associated with electric vehicle charging, including by reducing charging times for light-, medium-, and heavy-duty vehicles;
(C) accelerate third-party investment in electric vehicle charging for light-, medium-, and heavy-duty vehicles; and
(D) appropriately recover the marginal costs of delivering electricity to electric vehicles and electric vehicle charging infrastructure.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (c), was in the original "this title", meaning title I (§101 et seq.) of
Amendments
2021—Subsec. (d)(20).
Subsec. (d)(21).
2009—Subsec. (d)(16) to (19).
2007—Subsec. (d)(16), (17).
2005—Subsec. (d)(11) to (13).
Subsec. (d)(14).
Subsec. (d)(15).
1992—Subsec. (c)(3).
Subsec. (d)(7) to (9).
Subsec. (d)(10).
Statutory Notes and Related Subsidiaries
Effective Date of 2007 Amendment
Amendment by
State Authorities; Construction
Nothing in amendment by section 712 of
Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of
Report to President and Congress on Encouragement of Integrated Resource Planning and Investments in Conservation and Energy Efficiency by Electric Utilities
"(1) a survey of all State laws, regulations, practices, and policies under which State regulatory authorities implement the provisions of paragraphs (7), (8), and (9) of section 111(d) of the Public Utility Regulatory Policies Act of 1978 [
"(2) an evaluation by the Secretary of whether and to what extent, integrated resource planning is likely to result in—
"(A) higher or lower electricity costs to an electric utility's ultimate consumers or to classes or groups of such consumers;
"(B) enhanced or reduced reliability of electric service; and
"(C) increased or decreased dependence on particular energy resources; and
"(3) a survey of practices and policies under which electric cooperatives prepare integrated resource plans, submit such plans to the Rural Electrification Administration and the extent to which such integrated resource planning is reflected in rates charged to customers.
The report shall include an analysis prepared in conjunction with the Federal Trade Commission, of the competitive impact of implementation of energy conservation, energy efficiency, and other demand side management programs by utilities on small businesses engaged in the design, sale, supply, installation, or servicing of similar energy conservation, energy efficiency, or other demand side management measures and whether any unfair, deceptive, or predatory acts exist, or are likely to exist, from implementation of such programs."
[For provisions relating to further requirements as to subject matter contained in report under section 111(e) of
Study Concerning Electric Rates of State Utility Agencies
1 See References in Text note below.
§2622. Obligations to consider and determine
(a) Request for consideration and determination
Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility may undertake the consideration and make the determination referred to in
(1) any appropriate prior determination with respect to such standard—
(A) which is made in a proceeding which takes place after November 9, 1978, or
(B) which was made before such date (or is made in a proceeding pending on such date) and complies, as provided in
(2) the evidence upon which such prior determination was based (if such evidence is referenced in such proceeding).
(b) Time limitations
(1) Not later than 2 years after November 9, 1978 (or after October 24, 1992, in the case of standards under paragraphs (7), (8), and (9) of
(2) Not later than three years after November 9, 1978 (or after October 24, 1992, in the case of standards under paragraphs (7), (8), and (9) of
(3)(A) Not later than 2 years after August 8, 2005, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred to in
(B) Not later than 3 years after August 8, 2005, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in
(4)(A) Not later than 1 year after August 8, 2005, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred to in
(B) Not later than 2 years after August 8, 2005, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in
(5)(A) Not later than 1 year after August 8, 2005, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in
(B) Not later than two years after August 8, 2005, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in
(6)(A) Not later than 1 year after December 19, 2007, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated utility shall commence the consideration referred to in
(B) Not later than 2 years after December 19, 2007, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in
(7)(A) Not later than 1 year after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall commence consideration under
(B) Not later than 2 years after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority), and each nonregulated electric utility shall complete the consideration and make the determination under
(8)(A) Not later than 1 year after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated utility shall commence consideration under
(B) Not later than 2 years after November 15, 2021, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority), and each nonregulated electric utility shall complete the consideration and make the determination under
(c) Failure to comply
Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall undertake the consideration, and make the determination, referred to in
(d) Prior State actions relating to standard under certain paragraphs of section 2621(d)
Subsections (b) and (c) of this section shall not apply to the standards established by paragraphs (11) through (13) and paragraphs (16) through (19) of
(1) the State has implemented for such utility the standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility; or
(3) the State legislature has voted on the implementation of such standard (or a comparable standard) for such utility.
(e) Prior State actions relating to standard under section 2621(d)(14)
Subsections (b) and (c) of this section shall not apply to the standard established by paragraph (14) of
(1) the State has implemented for such utility the standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility within the previous 3 years; or
(3) the State legislature has voted on the implementation of such standard (or a comparable standard) for such utility within the previous 3 years.
(f) Prior State actions relating to standard under section 2621(d)(15)
Subsections (b) and (c) of this section shall not apply to the standard established by paragraph (15) of
(1) the State has implemented for such utility the standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility; or
(3) the State legislature has voted on the implementation of such standard (or a comparable standard) for such utility.
(g) Prior State actions
Subsections (b) and (c) shall not apply to the standard established by paragraph (20) of
(1) the State has implemented for the electric utility the standard (or a comparable standard);
(2) the State regulatory authority for the State or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the electric utility; or
(3) the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility.
(h) Other prior State actions
Subsections (b) and (c) shall not apply to the standard established by paragraph (21) of
(1) the State has implemented for the electric utility the standard (or a comparable standard);
(2) the State regulatory authority for the State or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the electric utility; or
(3) the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility during the 3-year period ending on November 15, 2021.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a)(1)(B), was in the original "this title", meaning title I (§101 et seq.) of
Codification
"October 24, 1992", referred to in subsec. (b)(1), (2), was in the original "the enactment of the Comprehensive National Energy Policy Act", and was translated as meaning the enactment of the Energy Policy Act of 1992,
Amendments
2021—Subsec. (b)(7).
Subsec. (b)(8).
Subsec. (c).
Subsec. (d).
Subsec. (g).
Subsec. (h).
2009—Subsecs. (b)(6), (d).
2007—Subsec. (b)(6).
Subsec. (c).
Subsec. (d).
2005—Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (f).
1992—Subsec. (b)(1), (2).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Effective Date of 2007 Amendment
Amendment by
Wage Rate Requirements
For provisions relating to rates of wages to be paid to laborers and mechanics on projects for construction, alteration, or repair work funded under div. D or an amendment by div. D of
§2623. Adoption of certain standards
(a) Adoption of standards
Not later than two years after November 9, 1978, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall provide public notice and conduct a hearing respecting the standards established by subsection (b) and, on the basis of such hearing, shall—
(1) adopt the standards established by subsection (b) (other than paragraph (4) thereof) if, and to the extent, such authority or nonregulated electric utility determines that such adoption is appropriate to carry out the purposes of this chapter, is otherwise appropriate, and is consistent with otherwise applicable State law, and
(2) adopt the standard established by subsection (b)(4) if, and to the extent, such authority or nonregulated electric utility determines that such adoption is appropriate and consistent with otherwise applicable State law.
For purposes of any determination under paragraphs (1) or (2) and any review of such determination in any court in accordance with
(b) Establishment
The following Federal standards are hereby established:
(1) Master metering
To the extent determined appropriate under
(2) Automatic adjustment clauses
No electric utility may increase any rate pursuant to an automatic adjustment clause unless such clause meets the requirements of
(3) Information to consumers
Each electric utility shall transmit to each of its electric consumers information regarding rate schedules in accordance with the requirements of
(4) Procedures for termination of electric service
No electric utility may terminate electric service to any electric consumer except pursuant to procedures described in
(5) Advertising
No electric utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditure by such utility for promotional or political advertising as defined in
(c) Procedural requirements
Each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility, within the two-year period specified in subsection (a), shall (1) adopt, pursuant to subsection (a), each of the standards established by subsection (b) or, (2) with respect to any such standard which is not adopted, such authority or nonregulated electric utility shall state in writing that it has determined not to adopt such standard, together with the reasons for such determination. Such statement of reasons shall be available to the public.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b), was in the original "this title", meaning title I (§101 et seq.) of
§2624. Lifeline rates
(a) Lower rates
No provision of this chapter prohibits a State regulatory authority (with respect to an electric utility for which it has ratemaking authority) or a nonregulated electric utility from fixing, approving, or allowing to go into effect a rate for essential needs (as defined by the State regulatory authority or by the nonregulated electric utility, as the case may be) of residential electric consumers which is lower than a rate under the standard referred to in
(b) Determination
If any State regulated electric utility or nonregulated electric utility does not have a lower rate as described in subsection (a) in effect two years after November 9, 1978, the State regulatory authority having ratemaking authority with respect to such State regulated electric utility or the nonregulated electric utility, as the case may be, shall determine, after an evidentiary hearing, whether such a rate should be implemented by such utility.
(c) Prior proceedings
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this title", meaning title I (§101 et seq.) of
§2625. Special rules for standards
(a) Cost of service
In undertaking the consideration and making the determination under
(1) permit identification of differences in cost-incurrence, for each such class of electric consumers, attributable to daily and seasonal time of use of service and
(2) permit identification of differences in cost-incurrence attributable to differences in customer demand, and energy components of cost. In prescribing such methods, such State regulatory authority or nonregulated electric utility shall take into account the extent to which total costs to an electric utility are likely to change if—
(A) additional capacity is added to meet peak demand relative to base demand; and
(B) additional kilowatt-hours of electric energy are delivered to electric consumers.
(b) Time-of-day rates
In undertaking the consideration and making the determination required under
(c) Load management techniques
In undertaking the consideration and making the determination required under
(1) such technique is likely to reduce maximum kilowatt demand on the electric utility, and
(2) the long-run cost-savings to the utility of such reduction are likely to exceed the long-run costs to the utility associated with implementation of such technique.
(d) Master metering
Separate metering shall be determined appropriate for any new building for purposes of
(1) there is more than one unit in such building,
(2) the occupant of each such unit has control over a portion of the electric energy used in such unit, and
(3) with respect to such portion of electric energy used in such unit, the long-run benefits to the electric consumers in such building exceed the costs of purchasing and installing separate meters in such building.
(e) Automatic adjustment clauses
(1) An automatic adjustment clause of an electric utility meets the requirements of this subsection if—
(A) such clause is determined, not less often than every four years, by the State regulatory authority (with respect to an electric utility for which it has ratemaking authority) or by the electric utility (in the case of a nonregulated electric utility), after an evidentiary hearing, to provide incentives for efficient use of resources (including incentives for economical purchase and use of fuel and electric energy) by such electric utility, and
(B) such clause is reviewed not less often than every two years, in the manner described in paragraph (2), by the State regulatory authority having ratemaking authority with respect to such utility (or by the electric utility in the case of a nonregulated electric utility), to insure the maximum economies in those operations and purchases which affect the rates to which such clause applies.
(2) In making a review under subparagraph (B) of paragraph (1) with respect to an electric utility, the reviewing authority shall examine and, if appropriate, cause to be audited the practices of such electric utility relating to costs subject to an automatic adjustment clause, and shall require such reports as may be necessary to carry out such review (including a disclosure of any ownership or corporate relationship between such electric utility and the seller to such utility of fuel, electric energy, or other items).
(3) As used in this subsection and
(f) Information to consumers
(1) For purposes of the standard for information to consumers established by
(A) not later than sixty days after the date of commencement of service to such consumer or ninety days after the standard established by
(B) not later than thirty days (sixty days in the case of an electric utility which uses a bimonthly billing system) after such utility's application for any change in a rate schedule applicable to such consumer (or proposal of such a change in the case of a nonregulated utility).
(2) For purposes of the standard for information to consumers established by
(A) a clear and concise summary of the existing rate schedules applicable to each of the major classes of its electric consumers for which there is a separate rate, and
(B) an identification of any classes whose rates are not summarized.
Such summary may be transmitted together with such consumer's billing or in such other manner as the State regulatory authority or nonregulated electric utility deems appropriate.
(3) For purposes of the standard for information to consumers established by
(g) Procedures for termination of electric service
The procedures for termination of service referred to in
(1) no electric service to an electric consumer may be terminated unless reasonable prior notice (including notice of rights and remedies) is given to such consumer and such consumer has a reasonable opportunity to dispute the reasons for such termination, and
(2) during any period when termination of service to an electric consumer would be especially dangerous to health, as determined by the State regulatory authority (with respect to an electric utility for which it has ratemaking authority) or nonregulated electric utility, and such consumer establishes that—
(A) he is unable to pay for such service in accordance with the requirements of the utility's billing, or
(B) he is able to pay for such service but only in installments,
such service may not be terminated.
Such procedures shall take into account the need to include reasonable provisions for elderly and handicapped consumers.
(h) Advertising
(1) For purposes of this section and
(A) The term "advertising" means the commercial use, by an electric utility, of any media, including newspaper, printed matter, radio, and television, in order to transmit a message to a substantial number of members of the public or to such utility's electric consumers.
(B) The term "political advertising" means any advertising for the purpose of influencing public opinion with respect to legislative, administrative, or electoral matters, or with respect to any controversial issue of public importance.
(C) The term "promotional advertising" means any advertising for the purpose of encouraging any person to select or use the service or additional service of an electric utility or the selection or installation of any appliance or equipment designed to use such utility's service.
(2) For purposes of this subsection and
(A) advertising which informs electric consumers how they can conserve energy or can reduce peak demand for electric energy,
(B) advertising required by law or regulation, including advertising required under part 1 of title II of the National Energy Conservation Policy Act [
(C) advertising regarding service interruptions, safety measures, or emergency conditions,
(D) advertising concerning employment opportunities with such utility,
(E) advertising which promotes the use of energy efficient appliances, equipment or services, or
(F) any explanation or justification of existing or proposed rate schedules, or notifications of hearings thereon.
(i) Time-based metering and communications
In making a determination with respect to the standard established by
(
Editorial Notes
References in Text
The National Energy Conservation Policy Act, referred to in subsec. (h)(2)(B), is
Amendments
2005—Subsec. (b).
Subsec. (i).
§2626. Reports respecting standards
(a) State authorities and nonregulated utilities
Not later than one year after November 9, 1978, and annually thereafter for ten years, each State regulatory authority (with respect to each State regulated electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall report to the Secretary, in such manner as the Secretary shall prescribe, respecting its consideration of the standards established by
(b) Secretary
Not later than eighteen months after November 9, 1978, and annually thereafter for ten years, the Secretary shall submit a report to the President and the Congress containing—
(1) a summary of the reports submitted under subsection (a),
(2) his analysis of such reports, and
(3) his actions under this chapter, and his recommendations for such further Federal actions, including any legislation, regarding retail electric utility rates (and other practices) as may be necessary to carry out the purposes of this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b)(3), was in the original "this title", meaning title I (§101 et seq.) of
§2627. Relationship to State law
(a) Revenue and rate of return
Nothing in this chapter shall authorize or require the recovery by an electric utility of revenues, or of a rate of return, in excess of, or less than, the amount of revenues or the rate of return determined to be lawful under any other provision of law.
(b) State authority
Nothing in this chapter prohibits any State regulatory authority or nonregulated electric utility from adopting, pursuant to State law, any standard or rule affecting electric utilities which is different from any standard established by this subchapter.
(c) Federal agencies
With respect to any electric utility which is a Federal agency, and with respect to the Tennessee Valley Authority when it is treated as a State regulatory authority as provided in
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b), was in the original "this title", meaning title I (§101 et seq.) of