42 Usc 16451-16463

§ 16432

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Page 7926

(2) provisions for monitoring and oversight
by the Federal utility of the Transmission Organization’s terms and conditions of the contract, agreement, or other arrangement, including a provision for the resolution of disputes through arbitration or other means with
the Transmission Organization or with other
participants, notwithstanding the obligations
and limitations of any other law regarding arbitration; and
(3) a provision that allows the Federal utility to withdraw from the Transmission Organization and terminate the contract, agreement, or other arrangement in accordance
with its terms.
(d) Commission

(3) the potential benefits to residential, commercial, and industrial electricity consumers
nationally and in each State if economic dispatch procedures were revised to improve the
ability of nonutility generation resources to
offer their output for inclusion in economic
dispatch.
(b) Definition

Neither this section, actions taken pursuant
to this section, nor any other transaction of a
Federal utility participating in a Transmission
Organization shall confer on the Commission jurisdiction or authority over—
(1) the electric generation assets, electric capacity, or energy of the Federal utility that
the Federal utility is authorized by law to
market; or
(2) the power sales activities of the Federal
utility.
(e) Existing statutory and other obligations
(1) System operation requirements
No statutory provision requiring or authorizing a Federal utility to transmit electric
power or to construct, operate, or maintain
the transmission system of the Federal utility
prohibits a transfer of control and use of the
transmission system pursuant to, and subject
to, the requirements of this section.
(2) Other obligations
This subsection does not—
(A) suspend, or exempt any Federal utility
from, any provision of Federal law in effect
on August 8, 2005, including any requirement
or direction relating to the use of the transmission system of the Federal utility, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation; or
(B) authorize abrogation of any contract
or treaty obligation.

Not later than 90 days after August 8, 2005, and
on a yearly basis following, the Secretary shall
submit a report to Congress and the States on
the results of the study conducted under subsection (a), including recommendations to Congress and the States for any suggested legislative or regulatory changes.

(Pub. L. 109–58, title XII, § 1232, Aug. 8, 2005, 119
Stat. 956.)
CODIFICATION
Section is comprised of section 1232 of Pub. L. 109–58.
Subsec. (e)(3) of section 1232 of Pub. L. 109–58 repealed
section 824n of Title 16, Conservation.

§ 16432. Study on the benefits of economic dispatch
(a) Study
The Secretary, in coordination and consultation with the States, shall conduct a study on—
(1) the procedures currently used by electric
utilities to perform economic dispatch;
(2) identifying possible revisions to those
procedures to improve the ability of nonutility generation resources to offer their output
for sale for the purpose of inclusion in economic dispatch; and

The term ‘‘economic dispatch’’ when used in
this section means the operation of generation
facilities to produce energy at the lowest cost to
reliably serve consumers, recognizing any operational limits of generation and transmission facilities.
(c) Report to Congress and the States

(Pub. L. 109–58, title XII, § 1234, Aug. 8, 2005, 119
Stat. 960.)
PART C—TRANSMISSION RATE REFORM
§ 16441. Funding new interconnection and transmission upgrades
The Commission may approve a participant
funding plan that allocates costs related to
transmission upgrades or new generator interconnection, without regard to whether an applicant is a member of a Commission-approved
Transmission Organization, if the plan results in
rates that—
(1) are just and reasonable;
(2) are not unduly discriminatory or preferential; and
(3) are otherwise consistent with sections
824d and 824e of title 16.
(Pub. L. 109–58, title XII, § 1242, Aug. 8, 2005, 119
Stat. 962.)
PART D—REPEAL OF PUBLIC UTILITY HOLDING
COMPANY ACT OF 1935
§ 16451. Definitions
For purposes of this part:
(1) Affiliate
The term ‘‘affiliate’’ of a company means
any company, 5 percent or more of the outstanding voting securities of which are owned,
controlled, or held with power to vote, directly or indirectly, by such company.
(2) Associate company
The term ‘‘associate company’’ of a company means any company in the same holding
company system with such company.
(3) Commission
The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(4) Company
The term ‘‘company’’ means a corporation,
partnership, association, joint stock company,
business trust, or any organized group of per-

Page 7927

TITLE 42—THE PUBLIC HEALTH AND WELFARE

sons, whether incorporated or not, or a receiver, trustee, or other liquidating agent of
any of the foregoing.
(5) Electric utility company
The term ‘‘electric utility company’’ means
any company that owns or operates facilities
used for the generation, transmission, or distribution of electric energy for sale.
(6) Exempt wholesale generator and foreign
utility company
The terms ‘‘exempt wholesale generator’’
and ‘‘foreign utility company’’ have the same
meanings as in sections 79z–5a and 79z–5b of
title 15, as those sections existed on the day
before the effective date of this part.
(7) Gas utility company
The term ‘‘gas utility company’’ means any
company that owns or operates facilities used
for distribution at retail (other than the distribution only in enclosed portable containers
or distribution to tenants or employees of the
company operating such facilities for their
own use and not for resale) of natural or manufactured gas for heat, light, or power.
(8) Holding company
(A) In general
The term ‘‘holding company’’ means—
(i) any company that directly or indirectly owns, controls, or holds, with power
to vote, 10 percent or more of the outstanding voting securities of a public-utility company or of a holding company of
any public-utility company; and
(ii) any person, determined by the Commission, after notice and opportunity for
hearing, to exercise directly or indirectly
(either alone or pursuant to an arrangement or understanding with one or more
persons) such a controlling influence over
the management or policies of any publicutility company or holding company as to
make it necessary or appropriate for the
rate protection of utility customers with
respect to rates that such person be subject to the obligations, duties, and liabilities imposed by this part upon holding
companies.
(B) Exclusions
The term ‘‘holding company’’ shall not include—
(i) a bank, savings association, or trust
company, or their operating subsidiaries
that own, control, or hold, with the power
to vote, public utility or public utility
holding company securities so long as the
securities are—
(I) held as collateral for a loan;
(II) held in the ordinary course of business as a fiduciary; or
(III) acquired solely for purposes of liquidation and in connection with a loan
previously contracted for and owned beneficially for a period of not more than
two years; or
(ii) a broker or dealer that owns, controls, or holds with the power to vote public utility or public utility holding com-

§ 16451

pany securities so long as the securities
are—
(I) not beneficially owned by the
broker or dealer and are subject to any
voting instructions which may be given
by customers or their assigns; or
(II) acquired within 12 months in the
ordinary course of business as a broker,
dealer, or underwriter with the bona fide
intention of effecting distribution of the
specific securities so acquired.
(9) Holding company system
The term ‘‘holding company system’’ means
a holding company, together with its subsidiary companies.
(10) Jurisdictional rates
The term ‘‘jurisdictional rates’’ means rates
accepted or established by the Commission for
the transmission of electric energy in interstate commerce, the sale of electric energy at
wholesale in interstate commerce, the transportation of natural gas in interstate commerce, and the sale in interstate commerce of
natural gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use.
(11) Natural gas company
The term ‘‘natural gas company’’ means a
person engaged in the transportation of natural gas in interstate commerce or the sale of
such gas in interstate commerce for resale.
(12) Person
The term ‘‘person’’ means an individual or
company.
(13) Public utility
The term ‘‘public utility’’ means any person
who owns or operates facilities used for transmission of electric energy in interstate commerce or sales of electric energy at wholesale
in interstate commerce.
(14) Public-utility company
The term ‘‘public-utility company’’ means
an electric utility company or a gas utility
company.
(15) State commission
The term ‘‘State commission’’ means any
commission, board, agency, or officer, by
whatever name designated, of a State, municipality, or other political subdivision of a State
that, under the laws of such State, has jurisdiction to regulate public utility companies.
(16) Subsidiary company
The term ‘‘subsidiary company’’ of a holding
company means—
(A) any company, 10 percent or more of the
outstanding voting securities of which are
directly or indirectly owned, controlled, or
held with power to vote, by such holding
company; and
(B) any person, the management or policies of which the Commission, after notice
and opportunity for hearing, determines to
be subject to a controlling influence, directly or indirectly, by such holding company (either alone or pursuant to an arrangement or understanding with one or

§ 16452

TITLE 42—THE PUBLIC HEALTH AND WELFARE

more other persons) so as to make it necessary for the rate protection of utility customers with respect to rates that such person be subject to the obligations, duties, and
liabilities imposed by this part upon subsidiary companies of holding companies.
(17) Voting security
The term ‘‘voting security’’ means any security presently entitling the owner or holder
thereof to vote in the direction or management of the affairs of a company.
(Pub. L. 109–58, title XII, § 1262, Aug. 8, 2005, 119
Stat. 972.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
this section and section 15801 of this title. For complete
classification of subtitle F to the Code, see Short Title
note set out under section 15801 of this title and Tables.
For the effective date of this part, referred to in par.
(6), see Effective Date note set out below.
EFFECTIVE DATE
Pub. L. 109–58, title XII, § 1274, Aug. 8, 2005, 119 Stat.
977, provided that:
‘‘(a) IN GENERAL.—Except for section 1272 [42 U.S.C.
16460] (relating to implementation), this subtitle [subtitle F (§§ 1261 to 1277) of title XII of Pub. L. 109–58, enacting this part, amending sections 824 and 824m of
Title 16, Conservation, repealing chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacting provisions set out as a note under
section 15801 of this title] shall take effect 6 months
after the date of enactment of this subtitle [Aug. 8,
2005].
‘‘(b) COMPLIANCE WITH CERTAIN RULES.—If the [Federal Energy Regulatory] Commission approves and
makes effective any final rulemaking modifying the
standards of conduct governing entities that own, operate, or control facilities for transmission of electricity
in interstate commerce or transportation of natural
gas in interstate commerce prior to the effective date
of this subtitle, any action taken by a public-utility
company or utility holding company to comply with
the requirements of such rulemaking shall not subject
such public-utility company or utility holding company to any regulatory requirement applicable to a
holding company under the Public Utility Holding
Company Act of 1935 (15 U.S.C. 79 et seq.).’’
SHORT TITLE
For short title of subtitle F of title XII of Pub. L.
109–58, which enacted this part, as the ‘‘Public Utility
Holding Company Act of 2005’’, see section 1261 of Pub.
L. 109–58, set out as a note under section 15801 of this
title.

§ 16452. Federal access to books and records
(a) In general
Each holding company and each associate
company thereof shall maintain, and shall make
available to the Commission, such books, accounts, memoranda, and other records as the
Commission determines are relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for
the protection of utility customers with respect
to jurisdictional rates.

Page 7928

(b) Affiliate companies
Each affiliate of a holding company or of any
subsidiary company of a holding company shall
maintain, and shall make available to the Commission, such books, accounts, memoranda, and
other records with respect to any transaction
with another affiliate, as the Commission determines are relevant to costs incurred by a public
utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional
rates.
(c) Holding company systems
The Commission may examine the books, accounts, memoranda, and other records of any
company in a holding company system, or any
affiliate thereof, as the Commission determines
are relevant to costs incurred by a public utility
or natural gas company within such holding
company system and necessary or appropriate
for the protection of utility customers with respect to jurisdictional rates.
(d) Confidentiality
No member, officer, or employee of the Commission shall divulge any fact or information
that may come to his or her knowledge during
the course of examination of books, accounts,
memoranda, or other records as provided in this
section, except as may be directed by the Commission or by a court of competent jurisdiction.
(Pub. L. 109–58, title XII, § 1264, Aug. 8, 2005, 119
Stat. 974.)
§ 16453. State access to books and records
(a) In general
Upon the written request of a State commission having jurisdiction to regulate a publicutility company in a holding company system,
the holding company or any associate company
or affiliate thereof, other than such public-utility company, wherever located, shall produce for
inspection books, accounts, memoranda, and
other records that—
(1) have been identified in reasonable detail
in a proceeding before the State commission;
(2) the State commission determines are relevant to costs incurred by such public-utility
company; and
(3) are necessary for the effective discharge
of the responsibilities of the State commission
with respect to such proceeding.
(b) Limitation
Subsection (a) does not apply to any person
that is a holding company solely by reason of
ownership of one or more qualifying facilities
under the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.).
(c) Confidentiality of information
The production of books, accounts, memoranda, and other records under subsection (a)
shall be subject to such terms and conditions as
may be necessary and appropriate to safeguard
against unwarranted disclosure to the public of
any trade secrets or sensitive commercial information.
(d) Effect on State law
Nothing in this section shall preempt applicable State law concerning the provision of books,

Page 7929

TITLE 42—THE PUBLIC HEALTH AND WELFARE

accounts, memoranda, and other records, or in
any way limit the rights of any State to obtain
books, accounts, memoranda, and other records
under any other Federal law, contract, or otherwise.
(e) Court jurisdiction
Any United States district court located in
the State in which the State commission referred to in subsection (a) is located shall have
jurisdiction to enforce compliance with this section.
(Pub. L. 109–58, title XII, § 1265, Aug. 8, 2005, 119
Stat. 975.)
REFERENCES IN TEXT
The Public Utility Regulatory Policies Act of 1978,
referred to in subsec. (b), is Pub. L. 95–617, Nov. 9, 1978,
92 Stat. 3117, as amended. For complete classification of
this Act to the Code, see Short Title note set out under
section 2601 of Title 16, Conservation, and Tables.

§ 16454. Exemption authority
(a) Rulemaking
Not later than 90 days after the effective date
of this part, the Commission shall issue a final
rule to exempt from the requirements of section
16452 of this title (relating to Federal access to
books and records) any person that is a holding
company, solely with respect to one or more—
(1) qualifying facilities under the Public
Utility Regulatory Policies Act of 1978 (16
U.S.C. 2601 et seq.);
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) Other authority
The Commission shall exempt a person or
transaction from the requirements of section
16452 of this title (relating to Federal access to
books and records) if, upon application or upon
the motion of the Commission—
(1) the Commission finds that the books, accounts, memoranda, and other records of any
person are not relevant to the jurisdictional
rates of a public utility or natural gas company; or
(2) the Commission finds that any class of
transactions is not relevant to the jurisdictional rates of a public utility or natural gas
company.
(Pub. L. 109–58, title XII, § 1266, Aug. 8, 2005, 119
Stat. 975.)
REFERENCES IN TEXT
For the effective date of this part, referred to in subsec. (a), see Effective Date note set out under section
16451 of this title.
The Public Utility Regulatory Policies Act of 1978,
referred to in subsec. (a)(1), is Pub. L. 95–617, Nov. 9,
1978, 92 Stat. 3117, as amended. For complete classification of this Act to the Code, see Short Title note set
out under section 2601 of Title 16, Conservation, and
Tables.

§ 16455. Affiliate transactions
(a) Commission authority unaffected
Nothing in this part shall limit the authority
of the Commission under the Federal Power Act
(16 U.S.C. 791a et seq.) to require that jurisdictional rates are just and reasonable, including

§ 16457

the ability to deny or approve the pass through
of costs, the prevention of cross-subsidization,
and the issuance of such rules and regulations as
are necessary or appropriate for the protection
of utility consumers.
(b) Recovery of costs
Nothing in this part shall preclude the Commission or a State commission from exercising
its jurisdiction under otherwise applicable law
to determine whether a public-utility company,
public utility, or natural gas company may recover in rates any costs of an activity performed
by an associate company, or any costs of goods
or services acquired by such public-utility company from an associate company.
(Pub. L. 109–58, title XII, § 1267, Aug. 8, 2005, 119
Stat. 976.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
sections 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see Short Title note
set out under section 15801 of this title and Tables.
The Federal Power Act, referred to in subsec. (a), is
act June 10, 1920, ch. 285, 41 Stat. 1063, as amended,
which is classified generally to chapter 12 (§ 791a et
seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see section 791a of Title 16
and Tables.

§ 16456. Applicability
Except as otherwise specifically provided in
this part, no provision of this part shall apply
to, or be deemed to include—
(1) the United States;
(2) a State or any political subdivision of a
State;
(3) any foreign governmental authority not
operating in the United States;
(4) any agency, authority, or instrumentality of any entity referred to in paragraph (1),
(2), or (3); or
(5) any officer, agent, or employee of any entity referred to in paragraph (1), (2), (3), or (4)
acting as such in the course of his or her official duty.
(Pub. L. 109–58, title XII, § 1268, Aug. 8, 2005, 119
Stat. 976.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
sections 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see Short Title note
set out under section 15801 of this title and Tables.

§ 16457. Effect on other regulations
Nothing in this part precludes the Commission
or a State commission from exercising its jurisdiction under otherwise applicable law to protect utility customers.

§ 16458

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(Pub. L. 109–58, title XII, § 1269, Aug. 8, 2005, 119
Stat. 976.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
sections 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see Short Title note
set out under section 15801 of this title and Tables.

§ 16458. Enforcement
The Commission shall have the same powers
as set forth in sections 825e through 825p of title
16 to enforce the provisions of this part.
(Pub. L. 109–58, title XII, § 1270, Aug. 8, 2005, 119
Stat. 976.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
sections 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see Short Title note
set out under section 15801 of this title and Tables.

§ 16459. Savings provisions
(a) In general
Nothing in this part, or otherwise in the Public Utility Holding Company Act of 1935, or
rules, regulations, or orders thereunder, prohibits a person from engaging in or continuing
to engage in activities or transactions in which
it is legally engaged or authorized to engage on
August 8, 2005, if that person continues to comply with the terms (other than an expiration
date or termination date) of any such authorization, whether by rule or by order.
(b) Effect on other Commission authority
Nothing in this part limits the authority of
the Commission under the Federal Power Act (16
U.S.C. 791a et seq.) or the Natural Gas Act (15
U.S.C. 717 et seq.).
(c) Tax treatment
Tax treatment under section 1081 1 of title 26
as a result of transactions ordered in compliance
with the Public Utility Holding Company Act of
1935 (15 U.S.C. 79 et seq.) shall not be affected in
any manner due to the repeal of that Act and
the enactment of the Public Utility Holding
Company Act of 2005 [42 U.S.C. 16451 et seq.].
(Pub. L. 109–58, title XII, § 1271, Aug. 8, 2005, 119
Stat. 976.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, known
as the Public Utility Holding Company Act of 2005,
which enacted this part, amended sections 824 and 824m
1 See

References in Text note below.

Page 7930

of Title 16, Conservation, repealed chapter 2C (§ 79 et
seq.) of Title 15, Commerce and Trade, and section 825q
of Title 16, and enacted provisions set out as notes
under sections 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see Short
Title note set out under section 15801 of this title and
Tables.
The Public Utility Holding Company Act of 1935, referred to in subsecs. (a) and (c), is title I of act Aug. 26,
1935, ch. 687, 49 Stat. 803, as amended, which was classified generally to chapter 2C (§ 79 et seq.) of Title 15,
Commerce and Trade, prior to repeal by Pub. L. 109–58,
title XII, § 1263, Aug. 8, 2005, 119 Stat. 974. For complete
classification of this Act to the Code, see Tables.
The Federal Power Act, referred to in subsec. (b), is
act June 10, 1920, ch. 285, 41 Stat. 1063, as amended,
which is classified generally to chapter 12 (§ 791a et
seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see section 791a of Title 16
and Tables.
The Natural Gas Act, referred to in subsec. (b), 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.
Section 1081 of title 26, referred to in subsec. (c), was
repealed by Pub. L. 109–135, title IV, § 402(a)(1), Dec. 21,
2005, 119 Stat. 2610.
The Public Utility Holding Company Act of 2005, referred to in subsec. (c), is subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58. See note for this part above.

§ 16460. Implementation
Not later than 4 months after August 8, 2005,
the Commission shall—
(1) issue such regulations as may be necessary or appropriate to implement this part
(other than section 16453 of this title, relating
to State access to books and records); and
(2) submit to Congress detailed recommendations on technical and conforming amendments to Federal law necessary to carry out
this part and the amendments made by this
part.
(Pub. L. 109–58, title XII, § 1272, Aug. 8, 2005, 119
Stat. 977.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)
of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
sections 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see Short Title note
set out under section 15801 of this title and Tables.

§ 16461. Transfer of resources
All books and records that relate
the functions transferred to the
under this part shall be transferred
curities and Exchange Commission
mission.

primarily to
Commission
from the Seto the Com-

(Pub. L. 109–58, title XII, § 1273, Aug. 8, 2005, 119
Stat. 977.)
REFERENCES IN TEXT
This part, referred to in text, was in the original
‘‘this subtitle’’, meaning subtitle F (§§ 1261–1277) of title
XII of Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 972, which
enacted this part, amended sections 824 and 824m of
Title 16, Conservation, repealed chapter 2C (§ 79 et seq.)

Page 7931

TITLE 42—THE PUBLIC HEALTH AND WELFARE

of Title 15, Commerce and Trade, and section 825q of
Title 16, and enacted provisions set out as notes under
sections 15801 and 16451 of this title. For complete classification of subtitle F to the Code, see Short Title note
set out under section 15801 of this title and Tables.

§ 16462. Service allocation
(a) Definition of public utility
In this section, the term ‘‘public utility’’ has
the meaning given the term in section 824(e) of
title 16.
(b) FERC review
In the case of non-power goods or administrative or management services provided by an associate company organized specifically for the
purpose of providing such goods or services to
any public utility in the same holding company
system, at the election of the system or a State
commission having jurisdiction over the public
utility, the Commission, after the effective date
of this part, shall review and authorize the allocation of the costs for such goods or services to
the extent relevant to that associate company.
(c) Effect on Federal and State law
Nothing in this section shall affect the authority of the Commission or a State commission
under other applicable law.
(d) Rules
Not later than 4 months after August 8, 2005,
the Commission shall issue rules (which rules
shall be effective no earlier than the effective
date of this part) to exempt from the requirements of this section any company in a holding
company system whose public utility operations
are confined substantially to a single State and
any other class of transactions that the Commission finds is not relevant to the jurisdictional rates of a public utility.
(Pub. L. 109–58, title XII, § 1275, Aug. 8, 2005, 119
Stat. 977.)
REFERENCES IN TEXT
For the effective date of this part, referred to in subsecs. (b) and (d), see Effective Date note set out under
section 16451 of this title.

§ 16481

PART E—MARKET TRANSPARENCY,
ENFORCEMENT, AND CONSUMER PROTECTION
§ 16471. Consumer privacy and unfair trade practices
(a) Privacy
The Federal Trade Commission may issue
rules protecting the privacy of electric consumers from the disclosure of consumer information
obtained in connection with the sale or delivery
of electric energy to electric consumers.
(b) Slamming
The Federal Trade Commission may issue
rules prohibiting the change of selection of an
electric utility except with the informed consent of the electric consumer or if approved by
the appropriate State regulatory authority.
(c) Cramming
The Federal Trade Commission may issue
rules prohibiting the sale of goods and services
to an electric consumer unless expressly authorized by law or the electric consumer.
(d) Rulemaking
The Federal Trade Commission shall proceed
in accordance with section 553 of title 5 when
prescribing a rule under this section.
(e) State authority
If the Federal Trade Commission determines
that a State’s regulations provide equivalent or
greater protection than the provisions of this
section, such State regulations shall apply in
that State in lieu of the regulations issued by
the Commission under this section.
(f) Definitions
For purposes of this section:
(1) State regulatory authority
The term ‘‘State regulatory authority’’ has
the meaning given that term in section 796(21)
of title 16.
(2) Electric consumer and electric utility
The terms ‘‘electric consumer’’ and ‘‘electric
utility’’ have the meanings given those terms
in section 2602 of title 16.
(Pub. L. 109–58, title XII, § 1287, Aug. 8, 2005, 119
Stat. 981.)
PART F—DEFINITIONS

§ 16463. Authorization of appropriations
There are authorized to be appropriated such
funds as may be necessary to carry out this
part.
(Pub. L. 109–58, title XII, § 1276, Aug. 8, 2005, 119
Stat. 978.)

§ 16481. Commission defined
In this subchapter, the term ‘‘Commission’’
means the Federal Energy Regulatory Commission.
(Pub. L. 109–58, title XII, § 1291(a), Aug. 8, 2005,
119 Stat. 984.)

REFERENCES IN TEXT

REFERENCES IN TEXT

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

This subchapter, referred to in text, was in the original ‘‘this title’’, meaning title XII of Pub. L. 109–58,
Aug. 8, 2005, 119 Stat. 941, which enacted this subchapter and sections 824j–1 and 824o to 824w of Title 16,
Conservation, amended sections 796, 824, 824a–3, 824b,
824e, 824j, 824m, 825e, 825f, 825l to 825o, 825o–1, 2621, 2622,
2625, 2634, and 2642 of Title 16, repealed chapter 2C (§ 79
et seq.) of Title 15, Commerce and Trade, and sections
824n and 825q of Title 16, and enacted provisions set out
as notes under sections 15801 and 16451 of this title and