§ 824e. — Power of Commission to fix rates and charges; determination of cost of production or transmission.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC824e]
TITLE 16--CONSERVATION
CHAPTER 12--FEDERAL REGULATION AND DEVELOPMENT OF POWER
SUBCHAPTER II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN
INTERSTATE COMMERCE
Sec. 824e. Power of Commission to fix rates and charges;
determination of cost of production or transmission
(a) Unjust or preferential rates, etc.; statement of reasons for
changes; hearing; specification of issues
Whenever the Commission, after a hearing had upon its own motion or
upon complaint, shall find that any rate, charge, or classification,
demanded, observed, charged, or collected by any public utility for any
transmission or sale subject to the jurisdiction of the Commission, or
that any rule, regulation, practice, or contract affected such rate,
charge, or classification is unjust, unreasonable, unduly discriminatory
or preferential, the Commission shall determine the just and reasonable
rate, charge, classification, rule, regulation, practice, or contract to
be thereafter observed and in force, and shall fix the same by order.
Any complaint or motion of the Commission to initiate a proceeding under
this section shall state the change or changes to be made in the rate,
charge, classification, rule, regulation, practice, or contract then in
force, and the reasons for any proposed change or changes therein. If,
after review of any motion or complaint and answer, the Commission shall
decide to hold a hearing, it shall fix by order the time and place of
such hearing and shall specify the issues to be adjudicated.
(b) Refund effective date; preferential proceedings; statement of
reasons for delay; burden of proof; scope of refund order;
refund orders in cases of dilatory behavior; interest
Whenever the Commission institutes a proceeding under this section,
the Commission shall establish a refund effective date. In the case of a
proceeding instituted on complaint, the refund effective date shall not
be earlier than the date 60 days after the filing of such complaint nor
later than 5 months after the expiration of such 60-day period. In the
case of a proceeding instituted by the Commission on its own motion, the
refund effective date shall not be earlier than the date 60 days after
the publication by the Commission of notice of its intention to initiate
such proceeding nor later than 5 months after the expiration of such 60-
day period. Upon institution of a proceeding under this section, the
Commission shall give to the decision of such proceeding the same
preference as provided under section 824d of this title and otherwise
act as speedily as possible. If no final decision is rendered by the
refund effective date or by the conclusion of the 180-day period
commencing upon initiation of a proceeding pursuant to this section,
whichever is earlier, the Commission shall state the reasons why it has
failed to do so and shall state its best estimate as to when it
reasonably expects to make such decision. In any proceeding under this
section, the burden of proof to show that any rate, charge,
classification, rule, regulation, practice, or contract is unjust,
unreasonable, unduly discriminatory, or preferential shall be upon the
Commission or the complainant. At the conclusion of any proceeding under
this section, the Commission may order the public utility to make
refunds of any amounts paid, for the period subsequent to the refund
effective date through a date fifteen months after such refund effective
date, in excess of those which would have been paid under the just and
reasonable rate, charge, classification, rule, regulation, practice, or
contract which the Commission orders to be thereafter observed and in
force: Provided, That if the proceeding is not concluded within fifteen
months after the refund effective date and if the Commission determines
at the conclusion of the proceeding that the proceeding was not resolved
within the fifteen-month period primarily because of dilatory behavior
by the public utility, the Commission may order refunds of any or all
amounts paid for the period subsequent to the refund effective date and
prior to the conclusion of the proceeding. The refunds shall be made,
with interest, to those persons who have paid those rates or charges
which are the subject of the proceeding.
(c) Refund considerations; shifting costs; reduction in revenues;
``electric utility companies'' and ``registered holding
company'' defined
Notwithstanding subsection (b) of this section, in a proceeding
commenced under this section involving two or more electric utility
companies of a registered holding company, refunds which might otherwise
be payable under subsection (b) of this section shall not be ordered to
the extent that such refunds would result from any portion of a
Commission order that (1) requires a decrease in system production or
transmission costs to be paid by one or more of such electric companies;
and (2) is based upon a determination that the amount of such decrease
should be paid through an increase in the costs to be paid by other
electric utility companies of such registered holding company: Provided,
That refunds, in whole or in part, may be ordered by the Commission if
it determines that the registered holding company would not experience
any reduction in revenues which results from an inability of an electric
utility company of the holding company to recover such increase in costs
for the period between the refund effective date and the effective date
of the Commission's order. For purposes of this subsection, the terms
``electric utility companies'' and ``registered holding company'' shall
have the same meanings as provided in the Public Utility Holding Company
Act of 1935, as amended [15 U.S.C. 79 et seq.].
(d) Investigation of costs
The Commission upon its own motion, or upon the request of any State
commission whenever it can do so without prejudice to the efficient and
proper conduct of its affairs, may investigate and determine the cost of
the production or transmission of electric energy by means of facilities
under the jurisdiction of the Commission in cases where the Commission
has no authority to establish a rate governing the sale of such energy.
(June 10, 1920, ch. 285, pt. II, Sec. 206, as added Aug. 26, 1935, ch.
687, title II, Sec. 213, 49 Stat. 852; amended Pub. L. 100-473, Sec. 2,
Oct. 6, 1988, 102 Stat. 2299.)
References in Text
The Public Utility Holding Company Act of 1935, referred to in
subsec. (c), 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. The terms ``electric utility company''
and ``registered holding company'' are defined in section 79b(a)(3),
(12) of Title 15. For complete classification of this Act to the Code,
see section 79 of Title 15 and Tables.
Amendments
1988--Subsec. (a). Pub. L. 100-473, Sec. 2(1), inserted provisions
for a statement of reasons for listed changes, hearings, and
specification of issues.
Subsecs. (b) to (d). Pub. L. 100-473, Sec. 2(2), added subsecs. (b)
and (c) and redesignated former subsec. (b) as (d).
Effective Date of 1988 Amendment
Section 4 of Pub. L. 100-473 provided that: ``The amendments made by
this Act [amending this section] are not applicable to complaints filed
or motions initiated before the date of enactment of this Act [Oct. 6,
1988] pursuant to section 206 of the Federal Power Act [this section]:
Provided, however, That such complaints may be withdrawn and refiled
without prejudice.''
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.
Limitation on Authority Provided
Section 3 of Pub. L. 100-473 provided that: ``Nothing in subsection
(c) of section 206 of the Federal Power Act, as amended (16 U.S.C.
824e(c)) shall be interpreted to confer upon the Federal Energy
Regulatory Commission any authority not granted to it elsewhere in such
Act [16 U.S.C. 791a et seq.] to issue an order that (1) requires a
decrease in system production or transmission costs to be paid by one or
more electric utility companies of a registered holding company; and (2)
is based upon a determination that the amount of such decrease should be
paid through an increase in the costs to be paid by other electric
utility companies of such registered holding company. For purposes of
this section, the terms `electric utility companies' and `registered
holding company' shall have the same meanings as provided in the Public
Utility Holding Company Act of 1935, as amended [15 U.S.C. 79 et
seq.].''
Study
Section 5 of Pub. L. 100-473 directed that, no earlier than three
years and no later than four years after Oct. 6, 1988, Federal Energy
Regulatory Commission perform a study of effect of amendments to this
section, analyzing (1) impact, if any, of such amendments on cost of
capital paid by public utilities, (2) any change in average time taken
to resolve proceedings under this section, and (3) such other matters as
Commission may deem appropriate in public interest, with study to be
sent to Committee on Energy and Natural Resources of Senate and
Committee on Energy and Commerce of House of Representatives.
