§ 824. — Declaration of policy; application of subchapter.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC824]
TITLE 16--CONSERVATION
CHAPTER 12--FEDERAL REGULATION AND DEVELOPMENT OF POWER
SUBCHAPTER II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN
INTERSTATE COMMERCE
Sec. 824. Declaration of policy; application of subchapter
(a) Federal regulation of transmission and sale of electric energy
It is declared that the business of transmitting and selling
electric energy for ultimate distribution to the public is affected with
a public interest, and that Federal regulation of matters relating to
generation to the extent provided in this subchapter and subchapter III
of this chapter and of that part of such business which consists of the
transmission of electric energy in interstate commerce and the sale of
such energy at wholesale in interstate commerce is necessary in the
public interest, such Federal regulation, however, to extend only to
those matters which are not subject to regulation by the States.
(b) Use or sale of electric energy in interstate commerce
(1) The provisions of this subchapter shall apply to the
transmission of electric energy in interstate commerce and to the sale
of electric energy at wholesale in interstate commerce, but except as
provided in paragraph (2) shall not apply to any other sale of electric
energy or deprive a State or State commission of its lawful authority
now exercised over the exportation of hydroelectric energy which is
transmitted across a State line. The Commission shall have jurisdiction
over all facilities for such transmission or sale of electric energy,
but shall not have jurisdiction, except as specifically provided in this
subchapter and subchapter III of this chapter, over facilities used for
the generation of electric energy or over facilities used in local
distribution or only for the transmission of electric energy in
intrastate commerce, or over facilities for the transmission of electric
energy consumed wholly by the transmitter.
(2) The provisions of sections 824i, 824j, and 824k of this title
shall apply to the entities described in such provisions, and such
entities shall be subject to the jurisdiction of the Commission for
purposes of carrying out such provisions and for purposes of applying
the enforcement authorities of this chapter with respect to such
provisions. Compliance with any order of the Commission under the
provisions of section 824i or 824j of this title, shall not make an
electric utility or other entity subject to the jurisdiction of the
Commission for any purposes other than the purposes specified in the
preceding sentence.
(c) Electric energy in interstate commerce
For the purpose of this subchapter, electric energy shall be held to
be transmitted in interstate commerce if transmitted from a State and
consumed at any point outside thereof; but only insofar as such
transmission takes place within the United States.
(d) ``Sale of electric energy at wholesale'' defined
The term ``sale of electric energy at wholesale'' when used in this
subchapter, means a sale of electric energy to any person for resale.
(e) ``Public utility'' defined
The term ``public utility'' when used in this subchapter and
subchapter III of this chapter means any person who owns or operates
facilities subject to the jurisdiction of the Commission under this
subchapter (other than facilities subject to such jurisdiction solely by
reason of section 824i, 824j, or 824k of this title).
(f) United States, State, political subdivision of a State, or agency or
instrumentality thereof exempt
No provision in this subchapter shall apply to, or be deemed to
include, the United States, a State or any political subdivision of a
State, or any agency, authority, or instrumentality of any one or more
of the foregoing, or any corporation which is wholly owned, directly or
indirectly, by any one or more of the foregoing, or any officer, agent,
or employee of any of the foregoing acting as such in the course of his
official duty, unless such provision makes specific reference thereto.
(g) Books and records
(1) Upon written order of a State commission, a State commission may
examine the books, accounts, memoranda, contracts, and records of--
(A) an electric utility company subject to its regulatory
authority under State law,
(B) any exempt wholesale generator selling energy at wholesale
to such electric utility, and
(C) any electric utility company, or holding company thereof,
which is an associate company or affiliate of an exempt wholesale
generator which sells electric energy to an electric utility company
referred to in subparagraph (A),
wherever located, if such examination is required for the effective
discharge of the State commission's regulatory responsibilities
affecting the provision of electric service.
(2) Where a State commission issues an order pursuant to paragraph
(1), the State commission shall not publicly disclose trade secrets or
sensitive commercial information.
(3) Any United States district court located in the State in which
the State commission referred to in paragraph (1) is located shall have
jurisdiction to enforce compliance with this subsection.
(4) Nothing in this section shall--
(A) preempt applicable State law concerning the provision of
records and other information; or
(B) in any way limit rights to obtain records and other
information under Federal law, contracts, or otherwise.
(5) As used in this subsection the terms ``affiliate'', ``associate
company'', ``electric utility company'', ``holding company'',
``subsidiary company'', and ``exempt wholesale generator'' shall have
the same meaning as when used in the Public Utility Holding Company Act
of 1935 [15 U.S.C. 79 et seq.].
(June 10, 1920, ch. 285, pt. II, Sec. 201, as added Aug. 26, 1935, ch.
687, title II, Sec. 213, 49 Stat. 847; amended Pub. L. 95-617, title II,
Sec. 204(b), Nov. 9, 1978, 92 Stat. 3140; Pub. L. 102-486, title VII,
Sec. 714, Oct. 24, 1992, 106 Stat. 2911.)
References in Text
The Public Utility Holding Company Act of 1935, referred to in
subsec. (g)(5), is title I of act Aug. 26, 1935, ch. 687, 49 Stat. 838,
as amended, which is classified generally to chapter 2C (Sec. 79 et
seq.) of Title 15, Commerce and Trade. For complete classification of
this Act to the Code, see section 79 of Title 15 and Tables.
Amendments
1992--Subsec. (g). Pub. L. 102-486 added subsec. (g).
1978--Subsec. (b). Pub. L. 95-617, Sec. 204(b)(1), designated
existing provisions as par. (1), inserted ``except as provided in
paragraph (2)'' after ``in interstate commerce, but'', and added par.
(2).
Subsec. (e). Pub. L. 95-617, Sec. 204(b)(2), inserted ``(other than
facilities subject to such jurisdiction solely by reason of section
824i, 824j, or 824k of this title)'' after ``under this subchapter''.
Transfer of Functions
Federal Power Commission terminated and its functions with regard to
establishment, review, and enforcement of rates and charges for
transmission or sale of electric energy, including determinations on
construction work in progress under this subchapter transferred to
Federal Energy Regulatory Commission by sections 7172(a)(1)(B) and 7293
of Title 42, The Public Health and Welfare.
Executive and administrative functions of Federal Power Commission,
with certain reservations, transferred to Chairman of such Commission,
with authority vested in him to authorize their performance by any
officer, employee, or administrative unit under his jurisdiction, by
Reorg. Plan No. 9 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
64 Stat. 1265, set out as a note under section 792 of this title.
State Authorities; Construction
Nothing in amendment by 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 79 of Title 15, Commerce and Trade.
Prior Actions; Effect On Other Authorities
Section 214 of Pub. L. 95-617 provided that:
``(a) Prior Actions.--No provision of this title [enacting sections
823a, 824i to 824k, 824a-1 to 824a-3 and 825q-1 of this title, amending
sections 796, 824, 824a, 824d, and 825d of this title and enacting
provisions set out as notes under sections 824a, 824d, and 825d of this
title] or of any amendment made by this title shall apply to, or affect,
any action taken by the Commission before the date of the enactment of
this Act [Nov. 9, 1978].
``(b) Other Authorities.--No provision of this title [enacting
sections 823a, 824i to 824k, 824a-1 to 824a-3 and 825q-1 of this title,
amending sections 796, 824, 824a, 824d, and 825d of this title and
enacting provisions set out as notes under sections 824a, 824d, and 825d
of this title] or of any amendment made by this title shall limit,
impair or otherwise affect any authority of the Commission or any other
agency or instrumentality of the United States under any other provision
of law except as specifically provided in this title.''
Section Referred to in Other Sections
This section is referred to in section 839e of this title; title 15
section 79z-5a.
