16 Usc 2601-2645 (purpa)

Page 1985

§ 814(d)(1)(M), Nov. 12, 1996, 110 Stat. 4196, related to sunset and reporting provisions.

CHAPTER 46—PUBLIC UTILITY REGULATORY
POLICIES
Sec.

2601.
2602.
2603.

Findings.
Definitions.
Relationship to antitrust laws.

SUBCHAPTER I—RETAIL REGULATORY POLICIES
FOR ELECTRIC UTILITIES
2611.
2612.
2613.

Purposes.
Coverage.
Federal contracts.

SUBCHAPTER II—STANDARDS FOR ELECTRIC
UTILITIES
2621.
2622.
2623.
2624.
2625.
2626.
2627.

Consideration and determination respecting
certain ratemaking standards.
Obligations to consider and determine.
Adoption of certain standards.
Lifeline rates.
Special rules for standards.
Reports respecting standards.
Relationship to State law.

SUBCHAPTER III—INTERVENTION AND JUDICIAL
REVIEW
2631.
2632.
2633.
2634.

Intervention in proceedings.
Consumer representation.
Judicial review and enforcement.
Prior and pending proceedings.

SUBCHAPTER IV—ADMINISTRATIVE PROVISIONS
2641.
2642.
2643.
2644.
2645.

§ 2602

TITLE 16—CONSERVATION

Voluntary guidelines.
Responsibilities of Secretary.
Gathering information on costs of service.
Relationship to other authority.
Utility regulatory institute.

§ 2601. Findings
The Congress finds that the protection of the
public health, safety, and welfare, the preservation of national security, and the proper exercise of congressional authority under the Constitution to regulate interstate commerce require—
(1) a program providing for increased conservation of electric energy, increased efficiency in the use of facilities and resources by
electric utilities, and equitable retail rates for
electric consumers,
(2) a program to improve the wholesale distribution of electric energy, the reliability of
electric service, the procedures concerning
consideration of wholesale rate applications
before the Federal Energy Regulatory Commission, the participation of the public in
matters before the Commission, and to provide
other measures with respect to the regulation
of the wholesale sale of electric energy,
(3) a program to provide for the expeditious
development of hydroelectric potential at existing small dams to provide needed hydroelectric power,
(4) a program for the conservation of natural
gas while insuring that rates to natural gas
consumers are equitable,
(5) a program to encourage the development
of crude oil transportation systems, and
(6) the establishment of certain other authorities as provided in title VI of this Act.
(Pub. L. 95–617, § 2, Nov. 9, 1978, 92 Stat. 3119.)

REFERENCES IN TEXT
This Act, referred to in par. (6), is Pub. L. 95–617, Nov.
9, 1978, 92 Stat. 3117, as amended, known as the Public
Utility Regulatory Policies Act of 1978. Title VI of this
Act enacted sections 824a–4 and 2645 of this title, section 918c of Title 7, Agriculture, and sections 717x to
717z of Title 15, Commerce and Trade, amended section
717f of Title 15 and sections 1311, 1312, and 1314 to 1316
of Title 30, Mineral Lands and Mining, and enacted provisions set out as a note under section 2621 of this title.
For complete classification of this Act to the Code, see
Short Title note below and Tables.
CODIFICATION
This section was not enacted as part of title I of Pub.
L. 95–617 which comprises this chapter.
SHORT TITLE
Pub. L. 95–617, § 1, Nov. 9, 1978, 92 Stat. 3117, provided
that: ‘‘This Act [enacting this chapter, and sections
823a, 824a–1 to 824a–4, 824i to 824k, 825q–1, and 2701 to
2708 of this title, section 918c of Title 7, Agriculture,
sections 717x to 717z and 3201 to 3211 of Title 15, Commerce and Trade, section 6808 of Title 42, The Public
Health and Welfare, and sections 2001 to 2012 of Title 43,
Public Lands, amending sections 796, 824, 824a, 824d, and
825d of this title, section 717f of Title 15, sections 1311,
1312, and 1314 to 1316 of Title 30, Mineral Lands and
Mining, and sections 6801 to 6807 of Title 42, and enacting provisions set out as notes under sections 824, 824a,
824d, 825d, and 2621 of this title] may be cited as the
‘Public Utility Regulatory Policies Act of 1978’.’’

§ 2602. Definitions
As used in this Act, except as otherwise specifically provided—
(1) The term ‘‘antitrust laws’’ includes the
Sherman Antitrust Act (15 U.S.C. 1 and following), the Clayton Act (15 U.S.C. 12 and following), the Federal Trade Commission Act (15
U.S.C. 14[41] and following), the Wilson Tariff
Act (15 U.S.C. 8 and 9), and the Act of June 19,
1936, chapter 592 (15 U.S.C. 13, 13a, 13b, and
21A).
(2) The term ‘‘class’’ means, with respect to
electric consumers, any group of such consumers who have similar characteristics of electric energy use.
(3) The term ‘‘Commission’’ means the Federal Energy Regulatory Commission.
(4) The term ‘‘electric utility’’ means any
person, State agency, or Federal agency,
which sells electric energy.
(5) The term ‘‘electric consumer’’ means any
person, State agency, or Federal agency, to
which electric energy is sold other than for
purposes of resale.
(6) The term ‘‘evidentiary hearing’’ means—
(A) in the case of a State agency, a proceeding which (i) is open to the public, (ii)
includes notice to participants and an opportunity for such participants to present direct and rebuttal evidence and to cross-examine witnesses, (iii) includes a written decision, based upon evidence appearing in a
written record of the proceeding, and (iv) is
subject to judicial review;
(B) in the case of a Federal agency, a proceeding conducted as provided in sections
554, 556, and 557 of title 5; and
(C) in the case of a proceeding conducted
by any entity other than a State or Federal
agency, a proceeding which conforms, to the

§ 2603

TITLE 16—CONSERVATION

extent appropriate, with the requirements of
subparagraph (A).
(7) The term ‘‘Federal agency’’ means an executive agency (as defined in section 105 of
title 5).
(8) The term ‘‘load management technique’’
means any technique (other than a time-ofday or seasonal rate) to reduce the maximum
kilowatt demand on the electric utility, including ripple or radio control mechanisms,
and other types of interruptible electric service, energy storage devices, and load-limiting
devices.
(9) The term ‘‘nonregulated electric utility’’
means any electric utility other than a State
regulated electric utility.
(10) The term ‘‘rate’’ means (A) any price,
rate, charge, or classification made, demanded, observed, or received with respect to
sale of electric energy by an electric utility to
an electric consumer, (B) any rule, regulation,
or practice respecting any such rate, charge,
or classification, and (C) any contract pertaining to the sale of electric energy to an electric
consumer.
(11) The term ‘‘ratemaking authority’’
means authority to fix, modify, approve, or
disapprove rates.
(12) The term ‘‘rate schedule’’ means the
designation of the rates which an electric utility charges for electric energy.
(13) The term ‘‘sale’’ when used with respect
to electric energy includes any exchange of
electric energy.
(14) The term ‘‘Secretary’’ means the Secretary of Energy.
(15) The term ‘‘State’’ means a State, the
District of Columbia, and Puerto Rico.
(16) The term ‘‘State agency’’ means a State,
political subdivision thereof, and any agency
or instrumentality of either.
(17) The term ‘‘State regulatory authority’’
means any State agency which has ratemaking authority with respect to the sale of
electric energy by any electric utility (other
than such State agency), and in the case of an
electric utility with respect to which the Tennessee Valley Authority has ratemaking authority, such term means the Tennessee Valley Authority.
(18) The term ‘‘State regulated electric utility’’ means any electric utility with respect to
which a State regulatory authority has ratemaking authority.
(19) The term ‘‘integrated resource planning’’ means, in the case of an electric utility,
a planning and selection process for new energy resources that evaluates the full range of
alternatives, including new generating capacity, power purchases, energy conservation and
efficiency, cogeneration and district heating
and cooling applications, and renewable energy resources, in order to provide adequate
and reliable service to its electric customers
at the lowest system cost. The process shall
take into account necessary features for system operation, such as diversity, reliability,
dispatchability, and other factors of risk; shall
take into account the ability to verify energy
savings achieved through energy conservation
and efficiency and the projected durability of

Page 1986

such savings measured over time; and shall
treat demand and supply resources on a consistent and integrated basis.
(20) The term ‘‘system cost’’ means all direct
and quantifiable net costs for an energy resource over its available life, including the
cost of production, distribution, transportation, utilization, waste management, and
environmental compliance.
(21) The term ‘‘demand side management’’
includes load management techniques.
(Pub. L. 95–617, § 3, Nov. 9, 1978, 92 Stat. 3119;
Pub. L. 102–486, title I, § 111(d), Oct. 24, 1992, 106
Stat. 2796.)
REFERENCES IN TEXT
This Act, referred to in text, is Pub. L. 95–617, Nov. 9,
1978, 92 Stat. 3117, as amended, known as the Public
Utility Regulatory Policies Act of 1978. For complete
classification of this Act to the Code, see Short Title
note set out under section 2601 of this title and Tables.
The Sherman Antitrust Act (15 U.S.C. 1 and following), referred to in par. (1), is act July 2, 1890, ch. 647,
26 Stat. 209, as amended, which enacted sections 1 to 7
of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note
set out under section 1 of Title 15 and Tables.
The Clayton Act (15 U.S.C. 12 and following), referred
to in par. (1), is act Oct. 15, 1914, ch. 323, 38 Stat. 730,
as amended, which is classified generally to sections 12,
13, 14 to 19, 21, and 22 to 27 of Title 15, Commerce and
Trade, and sections 52 and 53 of Title 29, Labor. For further details and complete classification of this Act to
the Code, see References in Text note set out under section 12 of Title 15 and Tables.
The Federal Trade Commission Act (15 U.S.C. 14 and
following), referred to in par. (1), is act Sept. 26, 1914,
ch. 311, 38 Stat. 717, as amended, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of Title
15, Commerce and Trade. For complete classification of
this Act to the Code, see section 58 of Title 15 and
Tables.
The Wilson Tariff Act (15 U.S.C. 8 and 9), referred to
in par. (1), is sections 73 to 77 of act Aug. 27, 1894, ch.
349, 28 Stat. 570. Sections 73 to 76 enacted sections 8 to
11 of Title 15, Commerce and Trade. Section 77 of said
Act was not classified to the Code. For complete classification of this Act to the Code, see Short Title note
under section 8 of Title 15 and Tables.
Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 13b,
and 21A), referred to in par. (1), is act June 19, 1936, ch.
592, 49 Stat. 1526, popularly known as the Robinson-Patman Antidiscrimination Act and also as the RobinsonPatman Price Discrimination Act, which enacted sections 13a, 13b, and 21a of Title 15, Commerce and Trade,
and amended section 13 of Title 15. For complete classification of this Act to the Code, see Short Title note
set out under section 13 of Title 15 and Tables.
CODIFICATION
This section was not enacted as part of title I of Pub.
L. 95–617 which comprises this chapter.
AMENDMENTS
1992—Pars. (19) to (21). Pub. L. 102–486 added pars. (19)
to (21).

§ 2603. Relationship to antitrust laws
Nothing in this Act or in any amendment
made by this Act affects—
(1) the applicability of the antitrust laws to
any electric utility or gas utility (as defined
in section 3202 of title 15), or
(2) any authority of the Secretary or of the
Commission under any other provision of law

Page 1987

§ 2621

TITLE 16—CONSERVATION

(including the Federal Power Act [16 U.S.C.
791a et seq.] and the Natural Gas Act [15 U.S.C.
717 et seq.]) respecting unfair methods of competition or anticompetitive acts or practices.
(Pub. L. 95–617, § 4, Nov. 9, 1978, 92 Stat. 3120.)
REFERENCES IN TEXT
This Act, referred to in text, is act Pub. L. 95–617,
Nov. 9, 1978, 92 Stat. 3117, as amended, known as the
Public Utility Regulatory Policies Act of 1978. For
complete classification of this Act to the Code, see
Short Title note set out under section 2601 of this title
and Tables.
The Federal Power Act, referred to in par. (2), is act
June 10, 1920, ch. 285, 41 Stat. 1063, as amended, which
is classified generally to chapter 12 (§ 791a et seq.) of
this title. For complete classification of this Act to the
Code, see section 791a of this title and Tables.
The Natural Gas Act, referred to in par. (2), is act
June 21, 1938, ch. 556, 52 Stat. 821, as amended, which is
classified generally to chapter 15B (§ 717 et seq.) of Title
15, Commerce and Trade. For complete classification of
this Act to the Code, see section 717w of Title 15 and
Tables.
CODIFICATION
This section was not enacted as part of title I of Pub.
L. 95–617 which comprises this chapter.

SUBCHAPTER I—RETAIL REGULATORY
POLICIES FOR ELECTRIC UTILITIES
§ 2611. Purposes
The purposes of this chapter are to encourage—
(1) conservation of energy supplied by electric utilities;
(2) the optimization of the efficiency of use
of facilities and resources by electric utilities;
and
(3) equitable rates to electric consumers.
(Pub. L. 95–617, title I, § 101, Nov. 9, 1978, 92 Stat.
3120.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
‘‘this title’’, meaning title I (§ 101 et seq.) of Pub. L.
95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted subchapters I to IV of this chapter and section 6808 of Title
42, The Public Health and Welfare, and amended sections 6802 to 6807 of Title 42. For complete classification
of title I to the Code, see Tables.

§ 2612. Coverage
(a) Volume of total retail sales
This chapter applies to each electric utility in
any calendar year, and to each proceeding relating to each electric utility in such year, if the
total sales of electric energy by such utility for
purposes other than resale exceeded 500 million
kilowatt-hours during any calendar year beginning after December 31, 1975, and before the immediately preceding calendar year.
(b) Exclusion of wholesale sales
The requirements of this chapter do not apply
to the operations of an electric utility, or to
proceedings respecting such operations, to the
extent that such operations or proceedings relate to sales of electric energy for purposes of
resale.
(c) List of covered utilities
Before the beginning of each calendar year,
the Secretary shall publish a list identifying

each electric utility to which this chapter applies during such calendar year. Promptly after
publication of such list each State regulatory
authority shall notify the Secretary of each
electric utility on the list for which such State
regulatory authority has ratemaking authority.
(Pub. L. 95–617, title I, § 102, Nov. 9, 1978, 92 Stat.
3121.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
‘‘this title’’, meaning title I (§ 101 et seq.) of Pub. L.
95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted subchapters I to IV of this chapter and section 6808 of Title
42, The Public Health and Welfare, and amended sections 6802 to 6807 of Title 42. For complete classification
of title I to the Code, see Tables.

§ 2613. Federal contracts
Notwithstanding the limitation contained in
section 2612(b) of this title, no contract between
a Federal agency and any electric utility for the
sale of electric energy by such Federal agency
for resale which is entered into or renewed after
November 9, 1978, may contain any provision
which will have the effect of preventing the implementation of any requirement of subchapter
II or III. Any provision in any such contract
which has such effect shall be null and void.
(Pub. L. 95–617, title I, § 103, Nov. 9, 1978, 92 Stat.
3121.)
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 section 2633
of this title, the purposes of this chapter supplement otherwise applicable State law. Nothing in
this subsection prohibits any State regulatory
authority or nonregulated electric utility from
making any determination that it is not appropriate to implement any such standard, pursuant to its authority under otherwise applicable
State law.
(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.

§ 2621

TITLE 16—CONSERVATION

(2) Except as otherwise provided in paragraph
(1), in the second sentence of section 2622(a) of
this title, and in sections 2631 and 2632 of this
title, the procedures for the consideration and
determination referred to in subsection (a) shall
be those established by the State regulatory authority or the nonregulated electric utility.
(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 section 2625(a) of this title.
(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 elec-

Page 1988

tric 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 section 2625(b) of
this title.
(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 section 2625(c) of this title,
(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

Page 1989

TITLE 16—CONSERVATION

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 section 2634 of this title
and paragraphs (1) and (2) of section 2622(a) of
this title, each State regulatory authority
shall consider and make a determination concerning the standards of subparagraph (A) in
accordance with the requirements of subsections (a) and (b) of this section, without regard to any proceedings commenced prior to
October 24, 1992.
1 See

References in Text note below.

§ 2621

(E) Notwithstanding subsections (b) and (c)
of section 2622 of this title, each State regulatory authority shall consider and make a determination concerning whether it is appropriate to implement the standards set out in
subparagraph (A) not later than one year after
October 24, 1992.
(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-ofuse prices are in effect except for certain
peak days, when prices may reflect the costs
of generating and/or purchasing electricity

§ 2621

TITLE 16—CONSERVATION

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 section 2622 of this title, each State regulatory authority shall, not later than 18
months after August 8, 2005, conduct an investigation in accordance with section 2625(i) of
this title and issue a decision whether it is appropriate to implement the standards set out
in subparagraphs (A) and (C).
(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 onsite 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.

Page 1990

(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 re-

Page 1991

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TITLE 16—CONSERVATION

cover 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.
(Pub. L. 95–617, title I, § 111, Nov. 9, 1978, 92 Stat.
3121; Pub. L. 102–486, title I, § 111(a), (b), title VII,
§ 712, Oct. 24, 1992, 106 Stat. 2795, 2910; Pub. L.
109–58, title XII, §§ 1251(a), 1252(a), 1254(a), Aug. 8,
2005, 119 Stat. 962, 963, 970; Pub. L. 110–140, title
V, § 532(a), title XIII, § 1307(a), Dec. 19, 2007, 121
Stat. 1665, 1791; Pub. L. 111–5, div. A, title IV,
§ 408(a), Feb. 17, 2009, 123 Stat. 146.)
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 Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which
enacted subchapters I to IV of this chapter and section
6808 of Title 42, The Public Health and Welfare, and
amended sections 6802 to 6807 of Title 42. For complete
classification of title I to the Code, see Tables.
Section 79z–5a of title 15, referred to in subsec.
(d)(10)(A)(ii), was repealed by Pub. L. 109–58, title XII,
§ 1263, Aug. 8, 2005, 119 Stat. 974.
AMENDMENTS
2009—Subsec. (d)(16) to (19). Pub. L. 111–5 redesignated
par. (16) relating to consideration of smart grid investments as (18) and par. (17) relating to smart grid information as (19).
2007—Subsec. (d)(16), (17). Pub. L. 110–140, § 1307(a),
added pars. (16) and (17) relating to consideration of
smart grid investments and smart grid information, respectively.
Pub. L. 110–140, § 532(a), added pars. (16) and (17) relating to integrated resource planning and rate design
modifications to promote energy efficiency investments, respectively.
2005—Subsec. (d)(11) to (13). Pub. L. 109–58, § 1251(a),
added pars. (11) to (13).
Subsec. (d)(14). Pub. L. 109–58, § 1252(a), added par. (14).
Subsec. (d)(15). Pub. L. 109–58, § 1254(a), added par. (15).
1992—Subsec. (c)(3). Pub. L. 102–486, § 111(b), added par.
(3).
Subsec. (d)(7) to (9). Pub. L. 102–486, § 111(a), added
pars. (7) to (9).
Subsec. (d)(10). Pub. L. 102–486, § 712, added par. (10).
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–140 effective on the date
that is 1 day after Dec. 19, 2007, see section 1601 of Pub.
L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.
STATE AUTHORITIES; CONSTRUCTION
Nothing in amendment by section 712 of Pub. L.
102–486 to be construed as affecting or intending to affect, or in any way to interfere with, authority of any
State or local government relating to environmental
protection or siting of facilities, see section 731 of Pub.
L. 102–486, set out as a note under section 796 of this
title.
REPORT TO PRESIDENT AND CONGRESS ON ENCOURAGEMENT OF INTEGRATED RESOURCE PLANNING AND INVESTMENTS IN CONSERVATION AND ENERGY EFFICIENCY BY ELECTRIC UTILITIES
Pub. L. 102–486, title I, § 111(e), Oct. 24, 1992, 106 Stat.
2796, provided that: ‘‘Not later than 2 years after the
date of the enactment of this Act [Oct. 24, 1992], the
Secretary shall transmit a report to the President and
to the Congress containing—
‘‘(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 [16 U.S.C. 2621(d)(7)–(9)];
‘‘(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

§ 2622

TITLE 16—CONSERVATION

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 Pub. L. 102–486, set out above, see section 115(e) of
Pub. L. 102–486, set out as a note under section 3203 of
Title 15, Commerce and Trade.]
STUDY CONCERNING ELECTRIC RATES OF STATE UTILITY
AGENCIES
Pub. L. 95–617, title VI, § 601, Nov. 9, 1978, 92 Stat. 3164,
directed the Secretary to conduct a study concerning
the effects of provisions of Federal law on rates established by State utility agencies and to submit a report
to Congress on the results of such study not later than
1 year after Nov. 9, 1978.

§ 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 section 2621 of this title with respect to any standard established by section 2621(d) of this title in
any proceeding respecting the rates of the electric utility. Any participant or intervenor (including an intervenor referred to in section 2631
of this title) in such a proceeding may request,
and shall obtain, such consideration and determination in such proceeding. In undertaking
such consideration and making such determination in any such proceeding with respect to the
application to any electric utility of any standard established by section 2621(d) of this title, a
State regulatory authority (with respect to an
electric utility for which it has ratemaking authority) or nonregulated electric utility may
take into account in such proceeding—
(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 section 2634 of
this title, with the requirements of this
chapter; and
(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
section 2621(d) of this title), 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 section 2621 of this title, or set a hearing date for
such consideration, with respect to each standard established by section 2621(d) of this title.
(2) Not later than three years after November
9, 1978 (or after October 24, 1992, in the case of

Page 1992

standards under paragraphs (7), (8), and (9) of
section 2621(d) of this title), 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 section 2621 of this
title with respect to each standard established
by section 2621(d) of this title.
(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 section 2621 of this title, or
set a hearing date for such consideration, with
respect to each standard established by paragraphs (11) through (13) of section 2621(d) of this
title.
(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 section
2621 of this title with respect to each standard
established by paragraphs (11) through (13) of
section 2621(d) of this title.
(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 section 2621 of this title, or
set a hearing date for such consideration, with
respect to the standard established by paragraph
(14) of section 2621(d) of this title.
(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 section
2621 of this title with respect to the standard established by paragraph (14) of section 2621(d) of
this title.
(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 section 2621 of this title, or set a
hearing date for consideration, with respect to
the standard established by paragraph (15) of
section 2621(d) of this title.
(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 section 2621 of this title with respect
to each standard established by paragraph (15) of
section 2621(d) of this title.
(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 section 2621 of this title, or set a
hearing date for consideration, with respect to

Page 1993

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TITLE 16—CONSERVATION

the standards established by paragraphs (16)
through (19) of section 2621(d) of this title.
(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 section 2621 of this title with respect
to each standard established by paragraphs (16)
through (19) of section 2621(d) of this title.
(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 section 2621 of this title with respect to each standard established by section 2621(d) of this title in
the first rate proceeding commenced after the
date three years after November 9, 1978, respecting the rates of such utility if such State regulatory authority or nonregulated electric utility
has not, before such date, complied with subsection (b)(2) with respect to such standard. In
the case of each standard established by paragraphs (11) through (13) of section 2621(d) of this
title, the reference contained in this subsection
to November 9, 1978, shall be deemed to be a reference to August 8, 2005. In the case of the
standard established by paragraph (14) of section
2621(d) of this title, the reference contained in
this subsection to November 9, 1978, shall be
deemed to be a reference to August 8, 2005. In
the case of the standard established by paragraph (15),1 the reference contained in this subsection to November 9, 1978, shall be deemed to
be a reference to August 8, 2005. In the case of
the standards established by paragraphs (16)
through (19) of section 2621(d) of this title, the
reference contained in this subsection to November 9, 1978, shall be deemed to be a reference
to December 19, 2007.
(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 section 2621(d) of this title in the
case of any electric utility in a State if, before
August 8, 2005—
(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
1 So in original. Probably should be ‘‘paragraph (15) of section
2621(d) of this title,’’.

(14) of section 2621(d) of this title in the case of
any electric utility in a State if, before August
8, 2005—
(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 section 2621(d) of this title in the case of
any electric utility in a State if, before August
8, 2005—
(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.
(Pub. L. 95–617, title I, § 112, Nov. 9, 1978, 92 Stat.
3122; Pub. L. 102–486, title I, § 111(c), Oct. 24, 1992,
106 Stat. 2795; Pub. L. 109–58, title XII,
§§ 1251(b)(1)–(3)(A), 1252(g)–(i)(1), 1254(b)(1)–(3)(A),
Aug. 8, 2005, 119 Stat. 963, 966, 967, 971; Pub. L.
110–140, title XIII, § 1307(b), Dec. 19, 2007, 121 Stat.
1793; Pub. L. 111–5, div. A, title IV, § 408(b), Feb.
17, 2009, 123 Stat. 146.)
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 Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted subchapters I to IV of this chapter and section
6808 of Title 42, The Public Health and Welfare, and
amended sections 6802 to 6807 of Title 42. For complete
classification of title I to the Code, see Tables.
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, Pub. L. 102–486, to reflect the probable intent of
Congress. The Comprehensive National Energy Policy
Act was the original short title of H.R. 776, which was
enacted into law on Oct. 24, 1992, as Pub. L. 102–486.
AMENDMENTS
2009—Subsecs. (b)(6), (d). Pub. L. 111–5 substituted
‘‘(16) through (19)’’ for ‘‘(17) through (18)’’ wherever appearing.
2007—Subsec. (b)(6). Pub. L. 110–140, § 1307(b)(1), added
par. (6).
Subsec. (c). Pub. L. 110–140, § 1307(b)(2), inserted at end
‘‘In the case of the standards established by paragraphs
(16) through (19) of section 2621(d) of this title, the reference contained in this subsection to November 9, 1978,
shall be deemed to be a reference to December 19, 2007.’’

§ 2623

TITLE 16—CONSERVATION

Subsec. (d). Pub. L. 110–140, § 1307(b)(3), inserted ‘‘and
paragraphs (17) through (18)’’ before ‘‘of section 2621(d)’’
in introductory provisions.
2005—Subsec. (b)(3). Pub. L. 109–58, § 1251(b)(1), added
par. (3).
Subsec. (b)(4). Pub. L. 109–58, § 1252(g), added par. (4).
Subsec. (b)(5). Pub. L. 109–58, § 1254(b)(1), added par.
(5).
Subsec. (c). Pub. L. 109–58, § 1254(b)(2), which directed
amendment of subsec. (d) by inserting at end ‘‘In the
case of the standard established by paragraph (15), the
reference contained in this subsection to November 9,
1978, shall be deemed to be a reference to August 8,
2005.’’, was executed by making the insertion in subsec.
(c) at end to reflect the probable intent of Congress.
Pub. L. 109–58, § 1252(h), inserted at end ‘‘In the case
of the standard established by paragraph (14) of section
2621(d) of this title, the reference contained in this subsection to November 9, 1978, shall be deemed to be a reference to August 8, 2005.’’
Pub. L. 109–58, § 1251(b)(2), inserted at end ‘‘In the case
of each standard established by paragraphs (11) through
(13) of section 2621(d) of this title, the reference contained in this subsection to November 9, 1978, shall be
deemed to be a reference to August 8, 2005.’’
Subsec. (d). Pub. L. 109–58, § 1251(b)(3)(A), added subsec. (d).
Subsec. (e). Pub. L. 109–58, § 1252(i)(1), added subsec.
(e).
Subsec. (f). Pub. L. 109–58, § 1254(b)(3)(A), added subsec. (f).
1992—Subsec. (b)(1), (2). Pub. L. 102–486 inserted ‘‘(or
after October 24, 1992, in the case of standards under
paragraphs (7), (8), and (9) of section 2621(d) of this
title)’’.
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–140 effective on the date
that is 1 day after Dec. 19, 2007, see section 1601 of Pub.
L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

§ 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 section 2633 of this title, the purposes of this chapter supplement otherwise applicable State law.
Nothing in this subsection prohibits any State
regulatory authority or nonregulated electric
utility from making any determination that it

Page 1994

is not appropriate to adopt any such standard,
pursuant to its authority under otherwise applicable State law.
(b) Establishment
The following Federal standards are hereby established:
(1) Master metering
To the extent determined appropriate under
section 2625(d) of this title, master metering of
electric service in the case of new buildings
shall be prohibited or restricted to the extent
necessary to carry out the purposes of this
chapter.
(2) Automatic adjustment clauses
No electric utility may increase any rate
pursuant to an automatic adjustment clause
unless such clause meets the requirements of
section 2625(e) of this title.
(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 section 2625(f) of this title.
(4) Procedures for termination of electric service
No electric utility may terminate electric
service to any electric consumer except pursuant to procedures described in section 2625(g)
of this title.
(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 section
2625(h) of this title.
(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.
(Pub. L. 95–617, title I, § 113, Nov. 9, 1978, 92 Stat.
3123.)
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 Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which
enacted subchapters I to IV of this chapter and section
6808 of Title 42, The Public Health and Welfare, and
amended sections 6802 to 6807 of Title 42. For complete
classification of title I to the Code, see Tables.

§ 2624. Lifeline rates
(a) Lower rates
No provision of this chapter prohibits a State
regulatory authority (with respect to an electric

Page 1995

TITLE 16—CONSERVATION

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 section 2621(d)(1) of
this title.
(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
Section 2634 of this title shall not apply to the
requirements of this section.

§ 2625

(a) Cost of service
In undertaking the consideration and making
the determination under section 2621 of this
title with respect to the standard concerning
cost of service established by section 2621(d)(1)
of this title, the costs of providing electric service to each class of electric consumers shall, to
the maximum extent practicable, be determined
on the basis of methods prescribed by the State
regulatory authority (in the case of a State regulated electric utility) or by the electric utility
(in the case of a nonregulated electric utility).
Such methods shall to the maximum extent
practicable—
(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

this title with respect to the standard for timeof-day rates established by section 2621(d)(3) of
this title and the standard for time-based metering and communications established by section
2621(d)(14) of this title, a time-of-day rate
charged by an electric utility for providing electric service to each class of electric consumers
shall be determined to be cost-effective with respect to each such class if the long-run benefits
of such rate to the electric utility and its electric consumers in the class concerned are likely
to exceed the metering and communications
costs and other costs associated with the use of
such rates.
(c) Load management techniques
In undertaking the consideration and making
the determination required under section 2621 of
this title with respect to the standard for load
management techniques established by section
2621(d)(6) of this title, a load management technique shall be determined, by the State regulatory authority or nonregulated electric utility, to be cost-effective if—
(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 longrun 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 section 2623(b)(1) of this title if—
(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.

In undertaking the consideration and making
the determination required under section 2621 of

(2) In making a review under subparagraph (B)
of paragraph (1) with respect to an electric util-

(Pub. L. 95–617, title I, § 114, Nov. 9, 1978, 92 Stat.
3124.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original ‘‘this title’’, meaning title I (§ 101 et seq.) of
Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted
subchapters I to IV of this chapter and section 6808 of
Title 42, The Public Health and Welfare, and amended
sections 6802 to 6807 of Title 42. For complete classification of title I to the Code, see Tables.

§ 2625. Special rules for standards

§ 2625

TITLE 16—CONSERVATION

ity, 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 section
2623(b) of this title, the term ‘‘automatic adjustment clause’’ means a provision of a rate schedule which provides for increases or decreases (or
both), without prior hearing, in rates reflecting
increases or decreases (or both) in costs incurred
by an electric utility. Such term does not include an interim rate which takes effect subject
to a later determination of the appropriate
amount of the rate.
(f) Information to consumers
(1) For purposes of the standard for information to consumers established by section
2623(b)(3) of this title, each electric utility shall
transmit to each of its electric consumers a
clear and concise explanation of the existing
rate schedule and any rate schedule applied for
(or proposed by a nonregulated electric utility)
applicable to such consumer. Such statement
shall be transmitted to each such consumer—
(A) not later than sixty days after the date
of commencement of service to such consumer
or ninety days after the standard established
by section 2623(b)(3) of this title is adopted
with respect to such electric utility, whichever last occurs, and
(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 section
2623(b)(3) of this title, each electric utility shall
transmit to each of its electric consumers not
less frequently than once each year—
(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 section
2623(b)(3) of this title, each electric utility, on
request of an electric consumer of such utility,
shall transmit to such consumer a clear and
concise statement of the actual consumption (or
degree-day adjusted consumption) of electric energy by such consumer for each billing period
during the prior year (unless such consumption
data is not reasonably ascertainable by the utility).

Page 1996

(g) Procedures for termination of electric service
The procedures for termination of service referred to in section 2623(b)(4) of this title are
procedures prescribed by the State regulatory
authority (with respect to electric utilities for
which it has ratemaking authority) or by the
nonregulated electric utility which provide
that—
(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 section
2623(b)(5) of this title—
(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 section
2623(b)(5) of this title, the terms ‘‘political advertising’’ and ‘‘promotional advertising’’ do not
include—
(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 [42 U.S.C. 8211 et seq.],
(C) advertising regarding service interruptions, safety measures, or emergency conditions,
(D) advertising concerning employment opportunities with such utility,

Page 1997

§ 2631

TITLE 16—CONSERVATION

(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 section 2621(d)(14) of
this title, the investigation requirement of section 2621(d)(14)(F) of this title shall be as follows: Each State regulatory authority shall conduct an investigation and issue a decision
whether or not it is appropriate for electric utilities to provide and install time-based meters
and communications devices for each of their
customers which enable such customers to participate in time-based pricing rate schedules and
other demand response programs.
(Pub. L. 95–617, title I, § 115, Nov. 9, 1978, 92 Stat.
3125; Pub. L. 109–58, title XII, § 1252(b), Aug. 8,
2005, 119 Stat. 965.)
REFERENCES IN TEXT
The National Energy Conservation Policy Act, referred to in subsec. (h)(2)(B), is Pub. L. 95–619, Nov. 9,
1978, 92 Stat. 3206, as amended. Part 1 of title II of the
National Energy Conservation Policy Act was classified generally to part A (§ 8211 et seq.) of subchapter II
of chapter 91 of Title 42, The Public Health and Welfare,
and was omitted from the Code pursuant to section 8229
of Title 42 which terminated authority under that part
June 30, 1989. For complete classification of this Act to
the Code, see Short Title note set out under section
8201 of Title 42 and Tables.
AMENDMENTS
2005—Subsec. (b). Pub. L. 109–58, § 1252(b)(1), (2), inserted ‘‘and the standard for time-based metering and
communications established by section 2621(d)(14) of
this title’’ after ‘‘section 2621(d)(3) of this title’’ and
substituted ‘‘metering and communications costs’’ for
‘‘metering costs’’.
Subsec. (i). Pub. L. 109–58, § 1252(b)(3), added 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 sections 2621(d) and 2623(b) of this
title. Such report shall include a summary of
the determinations made and actions taken with
respect to each such standard on a utility-byutility basis.
(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 ac-

tions, including any legislation, regarding retail electric utility rates (and other practices)
as may be necessary to carry out the purposes
of this chapter.
(Pub. L. 95–617, title I, § 116, Nov. 9, 1978, 92 Stat.
3128.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (b)(3), was in the
original ‘‘this title’’, meaning title I (§ 101 et seq.) of
Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted
subchapters I to IV of this chapter and section 6808 of
Title 42, The Public Health and Welfare, and amended
sections 6802 to 6807 of Title 42. For complete classification of title I to the Code, see Tables.

§ 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 section 2602(17) of this title, any reference in section 2621 or 2623 of this title to State law shall
be treated as a reference to Federal law.
(Pub. L. 95–617, title I, § 117, Nov. 9, 1978, 92 Stat.
3128.)
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 Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which
enacted subchapters I to IV of this chapter and section
6808 of Title 42, The Public Health and Welfare, and
amended sections 6802 to 6807 of Title 42. For complete
classification of title I to the Code, see Tables.

SUBCHAPTER III—INTERVENTION AND
JUDICIAL REVIEW
§ 2631. Intervention in proceedings
(a) Authority to intervene and participate
In order to initiate and participate in the consideration of one or more of the standards established by subchapter II or other concepts which
contribute to the achievement of the purposes of
this chapter, the Secretary, any affected electric
utility, or any electric consumer of an affected
electric utility may intervene and participate as
a matter of right in any ratemaking proceeding
or other appropriate regulatory proceeding relating to rates or rate design which is conducted
by a State regulatory authority (with respect to
an electric utility for which it has ratemaking
authority) or by a nonregulated electric utility.

§ 2632

TITLE 16—CONSERVATION

(b) Access to information
Any intervenor or participant in a proceeding
described in subsection (a) shall have access to
information available to other parties to the
proceeding if such information is relevant to the
issues to which his intervention or participation
in such proceeding relates. Such information
may be obtained through reasonable rules relating to discovery of information prescribed by
the State regulatory authority (in the case of
proceedings concerning electric utilities for
which it has ratemaking authority) or by the
nonregulated electric utility (in the case of a
proceeding conducted by a nonregulated electric
utility).
(c) Effective date; procedures
Any intervention or participation under this
section, in any proceeding commenced before
November 9, 1978, but not completed before such
date, shall be permitted under this section only
to the extent such intervention or participation
is timely under otherwise applicable law.
(Pub. L. 95–617, title I, § 121, Nov. 9, 1978, 92 Stat.
3128.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original ‘‘this title’’, meaning title I (§ 101 et seq.) of
Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted
subchapters I to IV of this chapter and section 6808 of
Title 42, The Public Health and Welfare, and amended
sections 6802 to 6807 of Title 42. For complete classification of title I to the Code, see Tables.

§ 2632. Consumer representation
(a) Compensation for costs of participation or
intervention
(1) If no alternative means for assuring representation of electric consumers is adopted in
accordance with subsection (b) and if an electric
consumer of an electric utility substantially
contributed to the approval, in whole or in part,
of a position advocated by such consumer in a
proceeding concerning such utility, and relating
to any standard set forth in subchapter II, such
utility shall be liable to compensate such consumer (pursuant to paragraph (2)) for reasonable
attorneys’ fees, expert witness fees, and other
reasonable costs incurred in preparation and advocacy of such position in such proceeding (including fees and costs of obtaining judicial review of any determination made in such proceeding with respect to such position).
(2) A consumer entitled to fees and costs under
paragraph (1) may collect such fees and costs
from an electric utility by bringing a civil action in any State court of competent jurisdiction, unless the State regulatory authority (in
the case of a proceeding concerning a State regulated electric utility) or nonregulated electric
utility (in the case of a proceeding concerning
such nonregulated electric utility) has adopted a
reasonable procedure pursuant to which such authority or nonregulated electric utility—
(A) determines the amount of such fees and
costs, and
(B) includes an award of such fees and costs
in its order in the proceeding.
(3) The procedure adopted by such State regulatory authority or nonregulated utility under

Page 1998

paragraph (2) may include a preliminary proceeding to require that—
(A) as a condition of receiving compensation
under such procedure such consumer demonstrate that, but for the ability to receive
such award, participation or intervention in
such proceeding may be a significant financial
hardship for such consumer, and
(B) persons with the same or similar interests have a common legal representative in
the proceeding as a condition to receiving
compensation.
(b) Alternative means
Compensation shall not be required under subsection (a) if the State, the State regulatory authority (in the case of a proceeding concerning
a State regulated electric utility), or the nonregulated electric utility (in the case of a proceeding concerning such nonregulated electric
utility) has provided an alternative means for
providing adequate compensation to persons—
(1) who have, or represent, an interest—
(A) which would not otherwise be adequately represented in the proceeding, and
(B) representation of which is necessary
for a fair determination in the proceeding,
and
(2) who are, or represent an interest which
is, unable to effectively participate or intervene in the proceeding because such persons
cannot afford to pay reasonable attorneys’
fees, expert witness fees, and other reasonable
costs of preparing for, and participating or intervening in, such proceeding (including fees
and costs of obtaining judicial review of such
proceeding).
(c) Transcripts
The State regulatory authority or nonregulated electric utility, as the case may be, shall
make transcripts of the proceeding available, at
cost of reproduction, to parties or intervenors in
any ratemaking proceeding, or other regulatory
proceeding relating to rates or rate design, before a State regulatory authority or nonregulated electric utility.
(d) Federal agencies
Any claim under this section against any Federal agency shall be subject to the availability
of appropriated funds.
(e) Rights under other authority
Nothing in this section affects or restricts any
rights of any participant or intervenor in any
proceeding under any other applicable law or
rule of law.
(Pub. L. 95–617, title I, § 122, Nov. 9, 1978, 92 Stat.
3129.)
§ 2633. Judicial review and enforcement
(a) Limitation of Federal jurisdiction
Notwithstanding any other provision of law,
no court of the United States shall have jurisdiction over any action arising under any provision of subchapter I or II or of this subchapter
except for—
(1) an action over which a court of the
United States has jurisdiction under subsection (b) or (c)(2); and

Page 1999

§ 2634

TITLE 16—CONSERVATION

(2) review of any action in the Supreme
Court of the United States in accordance with
sections 1257 and 1258 of title 28.
(b) Enforcement of intervention right
(1) The Secretary may bring an action in any
appropriate court of the United States to enforce his right to intervene and participate
under section 2631(a) of this title, and such court
shall have jurisdiction to grant appropriate relief.
(2) If any electric utility or electric consumer
having a right to intervene under section 2631(a)
of this title is denied such right by any State
court, such electric utility or electric consumer
may bring an action in the appropriate United
States district court to require the State regulatory authority or nonregulated electric utility
to permit such intervention and participation,
and such court shall have jurisdiction to grant
appropriate relief.
(3) Nothing in this subsection prohibits any
person bringing any action under this subsection
in a court of the United States from seeking review and enforcement at any time in any State
court of any rights he may have with respect to
any motion to intervene or participate in any
proceeding.
(c) Review and enforcement
(1) Any person (including the Secretary) may
obtain review of any determination made under
subchapter I or II or under this subchapter with
respect to any electric utility (other than a utility which is a Federal agency) in the appropriate State court if such person (or the Secretary) intervened or otherwise participated in
the original proceeding or if State law otherwise
permits such review. Any person (including the
Secretary) may bring an action to enforce the
requirements of this chapter in the appropriate
State court, except that no such action may be
brought in a State court with respect to a utility which is a Federal agency. Such review or
action in a State court shall be pursuant to any
applicable State procedures.
(2) Any person (including the Secretary) may
obtain review in the appropriate court of the
United States of any determination made under
subchapter I or II or this subchapter by a Federal agency if such person (or the Secretary) intervened or otherwise participated in the original proceeding or if otherwise applicable law
permits such review. Such court shall have jurisdiction to grant appropriate relief. Any person (including the Secretary) may bring an action to enforce the requirements of subchapter I
or II or this subchapter with respect to any Federal agency in the appropriate court of the
United States and such court shall have jurisdiction to grant appropriate relief.
(3) In addition to his authority to obtain review under paragraph (1) or (2), the Secretary
may also participate as an amicus curiae in any
review by any court of an action arising under
the provisions of subchapter I or II or this subchapter.
(d) Other authority of Secretary
Nothing in this section prohibits the Secretary from—
(1) intervening and participating in any proceeding, or

(2) intervening and participating in any review by any court of any action
under section 6804 of title 42.
(Pub. L. 95–617, title I, § 123, Nov. 9, 1978, 92 Stat.
3130.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (c)(1), was in the
original ‘‘this title’’, meaning title I (§ 101 et seq.) of
Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted
subchapters I to IV of this chapter and section 6808 of
Title 42, The Public Health and Welfare, and amended
sections 6802 to 6807 of Title 42. For complete classification of title I to the Code, see Tables.

§ 2634. Prior and pending proceedings
For purposes of subchapters I and II, and this
subchapter, proceedings commenced by State
regulatory authorities (with respect to electric
utilities for which it has ratemaking authority)
and nonregulated electric utilities before November 9, 1978, and actions taken before such
date in such proceedings shall be treated as
complying with the requirements of subchapters
I and II, and this subchapter if such proceedings
and actions substantially conform to such requirements. For purposes of subchapters I and
II, and this subchapter, any such proceeding or
action commenced before November 9, 1978, but
not completed before such date, shall comply
with the requirements of subchapters I and II,
and this subchapter, to the maximum extent
practicable, with respect to so much of such proceeding or action as takes place after such date,
except as otherwise provided in section 2631(c) of
this title. In the case of each standard established by paragraphs (11) through (13) of section
2621(d) of this title, the reference contained in
this subsection 1 to November 9, 1978, shall be
deemed to be a reference to August 8, 2005. In
the case of the standard established by paragraph (14) of section 2621(d) of this title, the reference contained in this subsection 1 to November 9, 1978, shall be deemed to be a reference to
August 8, 2005. In the case of each standard established by paragraph (15) of section 2621(d) of
this title, the reference contained in this subsection 1 to November 9, 1978, shall be deemed to
be a reference to August 8, 2005.
(Pub. L. 95–617, title I, § 124, Nov. 9, 1978, 92 Stat.
3131; Pub. L. 109–58, title XII, §§ 1251(b)(3)(B),
1252(i)(2), 1254(b)(3)(B), Aug. 8, 2005, 119 Stat. 963,
967, 971.)
AMENDMENTS
2005—Pub. L. 109–58, § 1254(b)(3)(B), inserted at end ‘‘In
the case of each standard established by paragraph (15)
of section 2621(d) of this title, the reference contained
in this subsection to November 9, 1978, shall be deemed
to be a reference to August 8, 2005.’’
Pub. L. 109–58, § 1252(i)(2), inserted at end ‘‘In the case
of the standard established by paragraph (14) of section
2621(d) of this title, the reference contained in this subsection to November 9, 1978, shall be deemed to be a reference to August 8, 2005.’’
Pub. L. 109–58, § 1251(b)(3)(B), inserted at end ‘‘In the
case of each standard established by paragraphs (11)
through (13) of section 2621(d) of this title, the reference
contained in this subsection to November 9, 1978, shall
be deemed to be a reference to August 8, 2005.’’
1 So

in original. Probably should be ‘‘section’’.

§ 2641

TITLE 16—CONSERVATION

SUBCHAPTER IV—ADMINISTRATIVE
PROVISIONS
§ 2641. Voluntary guidelines
The Secretary may prescribe voluntary guidelines respecting the standards established by
sections 2621(d) and 2623(b) of this title. Such
guidelines may not expand the scope or legal effect of such standards or establish additional
standards respecting electric utility rates.
(Pub. L. 95–617, title I, § 131, Nov. 9, 1978, 92 Stat.
3131.)
§ 2642. Responsibilities of Secretary
(a) Authority
The Secretary may periodically notify the
State regulatory authorities, and electric utilities identified pursuant to section 2612(c) of this
title, of—
(1) load management techniques and the results of studies and experiments concerning
load management techniques;
(2) developments and innovations in electric
utility ratemaking throughout the United
States, including the results of studies and
experiments in rate structure and rate reform;
(3) methods for determining cost of service;
(4) any other data or information which the
Secretary determines would assist such authorities and utilities in carrying out the provisions of this chapter; and
(5) technologies, techniques, and rate-making methods related to advanced metering and
communications and the use of these technologies, techniques and methods in demand
response programs.
(b) Technical assistance
The Secretary may provide such technical assistance as he determines appropriate to assist
the State regulatory authorities in carrying out
their responsibilities under subchapter II and as
is requested by any State regulatory authority
relating to the standards established by subchapter II.
(c) Appropriations
There are authorized to be appropriated to
carry out the purposes of subsection (b) not to
exceed $1,000,000 for each of the fiscal years 1979
and 1980.
(d) Demand response
The Secretary shall be responsible for—
(1) educating consumers on the availability,
advantages, and benefits of advanced metering
and communications technologies, including
the funding of demonstration or pilot projects;
(2) working with States, utilities, other energy providers and advanced metering and
communications experts to identify and address barriers to the adoption of demand response programs; and
(3) not later than 180 days after August 8,
2005, providing Congress with a report that
identifies and quantifies the national benefits
of demand response and makes a recommendation on achieving specific levels of such benefits by January 1, 2007.
(Pub. L. 95–617, title I, § 132, Nov. 9, 1978, 92 Stat.
3131; Pub. L. 109–58, title XII, § 1252(c), (d), Aug.
8, 2005, 119 Stat. 965.)

Page 2000
REFERENCES IN TEXT

This chapter, referred to in subsec. (a)(4), was in the
original ‘‘this title’’, meaning title I (§ 101 et seq.) of
Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted
subchapters I to IV of this chapter and section 6808 of
Title 42, The Public Health and Welfare, and amended
sections 6802 to 6807 of Title 42. For complete classification of title I to the Code, see Tables.
AMENDMENTS
2005—Subsec. (a)(5). Pub. L. 109–58, § 1252(c), added par.
(5).
Subsec. (d). Pub. L. 109–58, § 1252(d), added subsec. (d).
DEMAND RESPONSE ASSISTANCE
Pub. L. 109–58, title XII, § 1252(e), (f), Aug. 8, 2005, 119
Stat. 965, 966, provided that:
‘‘(e) DEMAND RESPONSE AND REGIONAL COORDINATION.—
‘‘(1) IN GENERAL.—It is the policy of the United
States to encourage States to coordinate, on a regional basis, State energy policies to provide reliable
and affordable demand response services to the public.
‘‘(2) TECHNICAL ASSISTANCE.—The Secretary [of Energy] shall provide technical assistance to States and
regional organizations formed by two or more States
to assist them in—
‘‘(A) identifying the areas with the greatest demand response potential;
‘‘(B) identifying and resolving problems in transmission and distribution networks, including
through the use of demand response;
‘‘(C) developing plans and programs to use demand response to respond to peak demand or emergency needs; and
‘‘(D) identifying specific measures consumers can
take to participate in these demand response programs.
‘‘(3) REPORT.—Not later than 1 year after the date
of enactment of the Energy Policy Act of 2005 [Aug.
8, 2005], the [Federal Energy Regulatory] Commission
shall prepare and publish an annual report, by appropriate region, that assesses demand response resources, including those available from all consumer
classes, and which identifies and reviews—
‘‘(A) saturation and penetration rate of advanced
meters and communications technologies, devices
and systems;
‘‘(B) existing demand response programs and
time-based rate programs;
‘‘(C) the annual resource contribution of demand
resources;
‘‘(D) the potential for demand response as a quantifiable, reliable resource for regional planning purposes;
‘‘(E) steps taken to ensure that, in regional transmission planning and operations, demand resources
are provided equitable treatment as a quantifiable,
reliable resource relative to the resource obligations of any load-serving entity, transmission provider, or transmitting party; and
‘‘(F) regulatory barriers to improve customer participation in demand response, peak reduction and
critical period pricing programs.
‘‘(f) FEDERAL ENCOURAGEMENT OF DEMAND RESPONSE
DEVICES.—It is the policy of the United States that
time-based pricing and other forms of demand response,
whereby electricity customers are provided with electricity price signals and the ability to benefit by responding to them, shall be encouraged, the deployment
of such technology and devices that enable electricity
customers to participate in such pricing and demand
response systems shall be facilitated, and unnecessary
barriers to demand response participation in energy,
capacity and ancillary service markets shall be eliminated. It is further the policy of the United States that
the benefits of such demand response that accrue to
those not deploying such technology and devices, but

Page 2001

§ 2645

TITLE 16—CONSERVATION

who are part of the same regional electricity entity,
shall be recognized.’’

§ 2643. Gathering information on costs of service
(a) Information required to be gathered
Each electric utility shall periodically gather
information under such rules (promulgated by
the Commission) as the Commission determines
necessary to allow determination of the costs
associated with providing electric service. For
purposes of this section, and for purposes of any
consideration and determination respecting the
standard established by section 2621(d)(2) of this
title, such costs shall be separated, to the maximum extent practicable, into the following components: customer cost component, demand cost
component, and energy cost component. Rules
under this subsection shall include requirements
for the gathering of the following information
with respect to each electric utility—
(1) the costs of serving each electric consumer class, including costs of serving different consumption patterns within such class,
based on voltage level, time of use, and other
appropriate factors;
(2) daily kilowatt demand load curves for all
electric consumer classes combined representative of daily and seasonal differences in demand, and daily kilowatt demand load curves
for each electric consumer class for which
there is a separate rate, representative of
daily and seasonal differences in demand;
(3) annual capital, operating, and maintenance costs—
(A) for transmission and distribution services, and
(B) for each type of generating unit; and
(4) costs of purchased power, including representative daily and seasonal differences in
the amount of such costs.
Such rules shall provide that information required to be gathered under this section shall be
presented in such categories and such detail as
may be necessary to carry out the purposes of
this section.
(b) Commission rules
The Commission shall, within 180 days after
November 9, 1978, by rule, prescribe the methods,
procedure, and format to be used by electric
utilities in gathering the information described
in this section. Such rules may provide for the
exemption by the Commission of an electric
utility or class of electric utilities from gathering all or part of such information, in cases
where such utility or utilities show and the
Commission finds, after public notice and opportunity for the presentation of written data,
views, and arguments, that gathering such information is not likely to carry out the purposes of
this section. The Commission shall periodically
review such findings and may revise such rules.
(c) Filing and publication
Not later than two years after November 9,
1978, and periodically, but not less frequently
than every two years thereafter, each electric
utility shall file with—
(1) the Commission, and
(2) any State regulatory authority which has
ratemaking authority for such utility,

the information gathered pursuant to this section and make such information available to the
public in such form and manner as the Commission shall prescribe. In addition, at the time of
application for, or proposal of, any rate increase, each electric utility shall make such information available to the public in such form
and manner as the Commission shall prescribe.
The two-year period after November 9, 1978,
specified in this subsection may be extended by
the Commission for a reasonable additional period in the case of any electric utility for good
cause shown.
(d) Enforcement
For purposes of enforcement, any violation of
a requirement of this section shall be treated as
a violation of a provision of the Energy Supply
and Environmental Coordination Act of 1974 [15
U.S.C. 791 et seq.] enforceable under section 12 of
such Act [15 U.S.C. 797] (notwithstanding any expiration date in such Act) except that in applying the provisions of such section 12 any reference to the Federal Energy Administrator
shall be treated as a reference to the Commission.
(Pub. L. 95–617, title I, § 133, Nov. 9, 1978, 92 Stat.
3132.)
REFERENCES IN TEXT
The Energy Supply and Environmental Coordination
Act of 1974, referred to in subsec. (d), is Pub. L. 93–319,
June 22, 1974, 88 Stat. 246, as amended, which is classified principally to chapter 16C (§ 791 et seq.) of Title 15,
Commerce and Trade. For complete classification of
this Act to the Code, see Short Title note set out under
section 791 of Title 15 and Tables.

§ 2644. Relationship to other authority
Nothing in this chapter shall be construed to
limit or affect any authority of the Secretary or
the Commission under any other provision of
law.
(Pub. L. 95–617, title I, § 134, Nov. 9, 1978, 92 Stat.
3133.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
‘‘this title’’, meaning title I (§ 101 et seq.) of Pub. L.
95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted subchapters I to IV of this chapter and section 6808 of Title
42, The Public Health and Welfare, and amended sections 6802 to 6807 of Title 42. For complete classification
of title I to the Code, see Tables.

§ 2645. Utility regulatory institute
(a) Matching grants
The Secretary may make grants under this
section to an institute established by the National Association of Regulatory Utility Commissioners to enable such institute to—
(1) conduct research on electric and gas utility regulatory policy issues,
(2) develop data processing and retrieval
methods for electric and gas utility ratemaking, and
(3) perform other functions directly related
to assisting State regulatory authorities in
carrying out their functions under State law
and this Act.
(b) Federal share
Grants under this section shall not be used to
provide more than the following percentages of

§ 2701

TITLE 16—CONSERVATION

the cost to the institute of carrying out the activities specified in subsection (a):
(1) 80 percent for the fiscal year 1979; and
(2) 60 percent for the fiscal year 1980.
The remaining amounts expended by the institute may not be provided from Federal sources.
(c) Restrictions
Grants under this section may not be made
subject to terms and conditions other than those
the Secretary deems necessary for purposes of
administering this section and for purposes of
assuring that—
(1) all information gathered by the institute
is available to the Secretary, the Commission,
and the public, and
(2) no portion of any such grant is used to
support or oppose any legislative proposal except by means of testimony by representatives
of the institute provided by invitation to a
committee of Congress or of a State legislature.
(d) Authorization of appropriations
There is authorized to be appropriated not
more than $2,000,000 for each of the fiscal years
1979 and 1980 for purposes of making grants
under this section. No amounts may be appropriated for any fiscal year after the fiscal year
1980 to carry out the purposes of this section
without a specific authorization of Congress.
(Pub. L. 95–617, title VI, § 603, Nov. 9, 1978, 92
Stat. 3165.)
REFERENCES IN TEXT
This Act, referred to in subsec. (a)(3), is Pub. L.
95–617, Nov. 9, 1978, 92 Stat. 3117, as amended, known as
the Public Utility Regulatory Policies Act of 1978. For
complete classification of this Act to the Code, see
Short Title note set out under section 2601 of this title
and Tables.
CODIFICATION
This section was not enacted as part of title I of Pub.
L. 95–617 which comprises this chapter.

CHAPTER 47—SMALL HYDROELECTRIC
POWER PROJECTS
Sec.

2701.
2702.
2703.
2704.
2705.
2706.
2707.
2708.

Establishment of program.
Loans for feasibility studies.
Loans for project costs.
Loan rates and repayment.
Simplified and expeditious licensing procedures.
New impoundments.
Authorizations.
Definitions.

§ 2701. Establishment of program
The Secretary shall establish a program in accordance with this chapter to encourage municipalities, electric cooperatives, industrial development agencies, nonprofit organizations, and
other persons to undertake the development of
small hydroelectric power projects in connection with existing dams which are not being
used to generate electric power.
(Pub. L. 95–617, title IV, § 401, Nov. 9, 1978, 92
Stat. 3154.)
REFERENCES IN TEXT
The Secretary, referred to in text, means the Secretary of Energy, see section 2602(14) of this title.

Page 2002

PROMULGATION OF IMPLEMENTING RULES AND
REGULATIONS
Pub. L. 96–294, title IV, § 408(d), June 30, 1980, 94 Stat.
718, provided that: ‘‘The Secretary shall take such action as may be necessary to assure the establishment,
as soon as possible after the date of the enactment of
this Act [June 30, 1980] (and in any event within six
months after such date in the case of the amendments
made by subsections (a) and (c) of this section and in
the case of the loan program under section 403 of the
Public Utility Regulatory Policies Act of 1978) [amending section 2708 of the title, and section 2703 of this
title respectively], of such rules and regulations as may
be necessary to fully implement his responsibilities
under title IV of the Public Utility Regulatory Policies
Act of 1978 [this subchapter] and the amendments
thereto made by this section [amending sections 2705
and 2708 of this title]’’.

§ 2702. Loans for feasibility studies
(a) Loan authority
The Secretary, after consultation with the
Commission, is authorized to make a loan to
any municipality, electric cooperative, industrial development agency, nonprofit organization, or other person to assist such person in defraying up to 90 percent of the costs of—
(1) studies to determine the feasibility of
undertaking a small hydroelectric power project at an existing dam or dams and
(2) preparing any application for a necessary
license or other Federal, State, and local approval respecting such a project at an existing
dam or dams and of participating in any administrative proceeding regarding any such
application.
(b) Cancellation
The Secretary may cancel the unpaid balance
and any accrued interest on any loan granted
pursuant to this section if he determines on the
basis of the study that the small hydroelectric
power project would not be technically or economically feasible.
(Pub. L. 95–617, title IV, § 402, Nov. 9, 1978, 92
Stat. 3154.)
REFERENCES IN TEXT
The Secretary, referred to in text, and the Commission, referred to in subsec. (a), mean the Secretary of
Energy and the Federal Energy Regulatory Commission, respectively, see section 2602(3), (14) of this title.

§ 2703. Loans for project costs
(a) Authority
The Secretary is authorized to make loans to
any municipality, electric cooperative, industrial development agency, nonprofit organization, or other person of up to 75 percent of the
project costs of a small hydroelectric power
project. No such loan may be made unless the
Secretary finds that—
(1) the project will be constructed in connection with an existing dam or dams,
(2) all licenses and other required Federal,
State, and local approvals necessary for construction of the project have been issued,
(3) the project will have no significant adverse environmental effects, including significant adverse effects on fish and wildlife, on
recreational use of water, and on stream flow,
and