Fair Allocation of Interstate Rates

Summary#

This bill adds a new rule to section 205 of the Federal Power Act. It stops multi-state transmission providers from charging consumers in one State for an electric transmission facility built to carry out a State's policy, unless the consumer's State or a designated public official of that State expressly agrees. The bill defines a "covered policy" as a State or local policy and a "covered transmission facility" as any interstate electric transmission built, planned, or operated to implement that policy. It creates presumptions that benefits of such a facility go only to those who caused the cost, that residents of the State that adopted the policy are cost causers, and that nonresidents are not cost causers. The Federal Energy Regulatory Commission must issue rules to implement the change within 180 days of enactment.

What it means for you#

• If your electric service comes from a transmission provider serving two or more States, you generally cannot be charged for a transmission project that was built to implement another State's policy unless your State or its designated official agrees.
• Transmission providers will need to follow new FERC rules about when they can allocate those costs to customers in other States.

Expenses#

No publicly available information on estimated federal costs or overall economic impact. The bill changes how costs can be allocated but does not include cost estimates.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.