§ 3203. — Adoption of certain standards.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC3203]
TITLE 15--COMMERCE AND TRADE
CHAPTER 59--RETAIL POLICIES FOR NATURAL GAS UTILITIES
Sec. 3203. Adoption of certain standards
(a) Adoption of standards
Not later than 2 years after November 9, 1978 (or after October 24,
1992, in the case of standards under paragraphs (3),\1\ and (4) of
subsection (b) of this section), each State regulatory authority (with
respect to each gas utility for which it has ratemaking authority) and
each nonregulated gas utility shall provide public notice and conduct a
hearing respecting the standards established by subsection (b) of this
section, and, on the basis of such hearing, shall--
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\1\ So in original. The comma probably should not appear.
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(1) adopt the standard established by subsection (b)(1) of this
section, if, and to the extent, such authority or nonregulated
utility determines that such adoption is appropriate and is
consistent with otherwise applicable State law, and
(2) adopt the standards established by paragraphs (2), (3) and
(4) of subsection (b) of this section, if, and to the extent, such
authority or nonregulated 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.
For purposes of any determination under paragraphs (1) and (2) and any
review of such determination in any court under section 3207 of this
title, the purposes of this chapter supplement State law. Nothing in
this subsection prohibits any State regulatory authority or nonregulated
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) Establishment
The following Federal standards are hereby established:
(1) Procedures for termination of natural gas service
No gas utility may terminate natural gas service to any gas
consumer except pursuant to procedures described in section 3204(a)
of this title.
(2) Advertising
No gas 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 3204(b) of this title.
(3) Integrated resource planning
Each gas utility shall employ, in order to provide adequate and
reliable service to its gas customers at the lowest system cost. All
plans or filings of a State regulated gas utility before a State
regulatory authority to meet the requirements of this paragraph
shall (A) be updated on a regular basis, (B) provide the opportunity
for public participation and comment, (C) provide for methods of
validating predicted performance, and (D) contain a requirement that
the plan be implemented after approval of the State regulatory
authority. Subsection (c) of this section shall not apply to this
paragraph to the extent that it could be construed to require the
State regulatory authority to extend the record of a State
proceeding in submitting reports to the Federal Government.
(4) Investments in conservation and demand management
The rates charged by any State regulated gas utility shall be
such that the utility's prudent investments in, and expenditures
for, energy conservation and load shifting programs and for other
demand-side management measures which are consistent with the
findings and purposes of the Energy Policy Act of 1992 are at least
as profitable (taking into account the income lost due to reduced
sales resulting from such programs) as prudent investments in, and
expenditures for, the acquisition or construction of supplies and
facilities. This objective requires that (A) regulators link the
utility's net revenues, at least in part, to the utility's
performance in implementing cost-effective programs promoted by this
section; and (B) regulators ensure that, for purposes of recovering
fixed costs, including its authorized return, the utility's
performance is not affected by reductions in its retail sales
volumes.
(c) Procedural requirements
Each State regulatory authority (with respect to each gas utility
for which it has ratemaking authority) and each nonregulated gas
utility, within the 2-year period specified in subsection (a) of this
section, shall adopt, pursuant to subsection (a) of this section, each
of the standards established by subsection (b) of this section, or, with
respect to any such standard which is not adopted, such authority or
nonregulated gas 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.
(d) Small business impacts
If a State regulatory authority implements a standard established by
subsection (b)(3) or (4) of this section, such authority shall--
(1) 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
(2) implement such standard so as to assure that utility actions
would not provide such utilities with unfair competitive advantages
over such small businesses.
(Pub. L. 95-617, title III, Sec. 303, Nov. 9, 1978, 92 Stat. 3150; Pub.
L. 102-486, title I, Sec. 115(b)-(d), Oct. 24, 1992, 106 Stat. 2803,
2804.)
References in Text
The Energy Policy Act of 1992, referred to in subsec. (b)(4), is
Pub. L. 102-486, Oct. 24, 1992, 106 Stat. 2776. For complete
classification of this Act to the Code, see Short Title note set out
under section 13201 of Title 42, The Public Health and Welfare and
Tables.
Amendments
1992--Subsec. (a). Pub. L. 102-486, Sec. 115(d), in introductory
provisions inserted ``(or after October 24, 1992, in the case of
standards under paragraphs (3), and (4) of subsection (b) of this
section)'' and in par. (2) substituted ``standards established by
paragraphs (2), (3) and (4) of subsection (b)'' for ``standard
established by subsection (b)(2)''.
Subsec. (b)(3), (4). Pub. L. 102-486, Sec. 115(b), added pars. (3)
and (4).
Subsec. (d). Pub. L. 102-486, Sec. 115(c), added subsec. (d).
Report to President and Congress on Encouragement of Integrated Resource
Planning and Investments in Conservation and Energy Efficiency by
Electric Utilities
Section 115(e) of Pub. L. 102-486 provided that: ``The report under
section 111(e) of this Act [16 U.S.C. 2621 note] transmitted by the
Secretary of Energy to the President and to the Congress shall contain a
survey of all State laws, regulations, practices, and policies under
which State regulatory authorities implement the provisions of
paragraphs (3) and (4) of section 303(b) of the Public Utility
Regulatory Policies Act of 1978 [15 U.S.C. 3203(b)(3) and (4)]. The
report shall include an analysis, prepared in conjunction with the
Federal Trade Commission, of the competitive impact of implementation of
energy conservation, energy efficiency, and other demand side management
programs by gas 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 or practices exist, or are
likely to exist, from implementation of such programs.''
Definitions
The definition of State in section 2602 of Title 16, Conservation,
applies to this section.
Section Referred to in Other Sections
This section is referred to in section 3204 of this title; title 42
section 6807a.
