§ 2625. — Special rules for 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: 16USC2625]
TITLE 16--CONSERVATION
CHAPTER 46--PUBLIC UTILITY REGULATORY POLICIES
SUBCHAPTER II--STANDARDS FOR ELECTRIC UTILITIES
Sec. 2625. Special rules for standards
(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
In undertaking the consideration and making the determination
required under section 2621 of this title with respect to the standard
for time-of-day rates established by section 2621(d)(3) 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 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 long-run costs to the utility associated
with implementation of such technique.
(d) Master metering
Separate metering shall be determined appropriate for any new
building for purposes of 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.
(2) In making a review under subparagraph (B) of paragraph (1) with
respect to an electric utility, the reviewing authority shall examine
and, if appropriate, cause to be audited the practices of such electric
utility relating to costs subject to an automatic adjustment clause, and
shall require such reports as may be necessary to carry out such review
(including a disclosure of any ownership or corporate relationship
between such electric utility and the seller to such utility of fuel,
electric energy, or other items).
(3) As used in this subsection and 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).
(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,
(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.
(Pub. L. 95-617, title I, Sec. 115, Nov. 9, 1978, 92 Stat. 3125.)
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 (Sec. 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.
Section Referred to in Other Sections
This section is referred to in sections 2621, 2623 of this title.
