16 U.S.C. § 824k : US Code - Section 824K: Orders requiring interconnection or wheeling

    (a) Rates, charges, terms, and conditions for wholesale
      transmission services
      An order under section 824j of this title shall require the
    transmitting utility subject to the order to provide wholesale
    transmission services at rates, charges, terms, and conditions
    which permit the recovery by such utility of all the costs incurred
    in connection with the transmission services and necessary
    associated services, including, but not limited to, an appropriate
    share, if any, of legitimate, verifiable and economic costs,
    including taking into account any benefits to the transmission
    system of providing the transmission service, and the costs of any
    enlargement of transmission facilities. Such rates, charges, terms,
    and conditions shall promote the economically efficient
    transmission and generation of electricity and shall be just and
    reasonable, and not unduly discriminatory or preferential. Rates,
    charges, terms, and conditions for transmission services provided
    pursuant to an order under section 824j of this title shall ensure
    that, to the extent practicable, costs incurred in providing the
    wholesale transmission services, and properly allocable to the
    provision of such services, are recovered from the applicant for
    such order and not from a transmitting utility's existing
    wholesale, retail, and transmission customers.
    (b) Repealed. Pub. L. 102-486, title VII, Sec. 722(1), Oct. 24,
      1992, 106 Stat. 2916
    (c) Issuance of proposed order; agreement by parties to terms and
      conditions of order; approval by Commission; inclusion in final
      order; failure to agree
      (1) Before issuing an order under section 824i of this title or
    subsection (a) or (b) of section 824j of this title, the Commission
    shall issue a proposed order and set a reasonable time for parties
    to the proposed interconnection or transmission order to agree to
    terms and conditions under which such order is to be carried out,
    including the apportionment of costs between them and the
    compensation or reimbursement reasonably due to any of them. Such
    proposed order shall not be reviewable or enforceable in any court.
    The time set for such parties to agree to such terms and conditions
    may be shortened if the Commission determines that delay would
    jeopardize the attainment of the purposes of any proposed order.
    Any terms and conditions agreed to by the parties shall be subject
    to the approval of the Commission.
      (2)(A) If the parties agree as provided in paragraph (1) within
    the time set by the Commission and the Commission approves such
    agreement, the terms and conditions shall be included in the final
    order. In the case of an order under section 824i of this title, if
    the parties fail to agree within the time set by the Commission or
    if the Commission does not approve any such agreement, the
    Commission shall prescribe such terms and conditions and include
    such terms and conditions in the final order.
      (B) In the case of any order applied for under section 824j of
    this title, if the parties fail to agree within the time set by the
    Commission, the Commission shall prescribe such terms and
    conditions in the final order.
    (d) Statement of reasons for denial
      If the Commission does not issue any order applied for under
    section 824i or 824j of this title, the Commission shall, by order,
    deny such application and state the reasons for such denial.
    (e) Savings provisions
      (1) No provision of section 824i, 824j, 824m of this title, or
    this section shall be treated as requiring any person to utilize
    the authority of any such section in lieu of any other authority of
    law. Except as provided in section 824i, 824j, 824m of this title,
    or this section, such sections shall not be construed as limiting
    or impairing any authority of the Commission under any other
    provision of law.
      (2) Sections 824i, 824j, 824l, 824m of this title, and this
    section, shall not be construed to modify, impair, or supersede the
    antitrust laws. For purposes of this section, the term "antitrust
    laws" has the meaning given in subsection (a) of the first sentence
    of section 12 of title 15, except that such term includes section
    45 of title 15 to the extent that such section relates to unfair
    methods of competition.
    (f) Effective date of order; hearing; notice; review
      (1) No order under section 824i or 824j of this title requiring
    the Tennessee Valley Authority (hereinafter in this subsection
    referred to as the "TVA") to take any action shall take effect for
    60 days following the date of issuance of the order. Within 60 days
    following the issuance by the Commission of any order under section
    824i or of section 824j of this title requiring the TVA to enter
    into any contract for the sale or delivery of power, the Commission
    may on its own motion initiate, or upon petition of any aggrieved
    person shall initiate, an evidentiary hearing to determine whether
    or not such sale or delivery would result in violation of the third
    sentence of section 15d(a) of the Tennessee Valley Authority Act of
    1933 (16 U.S.C. 831n-4), hereinafter in this subsection referred to
    as the TVA Act [16 U.S.C. 831 et seq.].
      (2) Upon initiation of any evidentiary hearing under paragraph
    (1), the Commission shall give notice thereof to any applicant who
    applied for and obtained the order from the Commission, to any
    electric utility or other entity subject to such order, and to the
    public, and shall promptly make the determination referred to in
    paragraph (1). Upon initiation of such hearing, the Commission
    shall stay the effectiveness of the order under section 824i or
    824j of this title until whichever of the following dates is
    applicable - 
        (A) the date on which there is a final determination (including
      any judicial review thereof under paragraph (3)) that no such
      violation would result from such order, or
        (B) the date on which a specific authorization of the Congress
      (within the meaning of the third sentence of section 15d(a) of
      the TVA Act [16 U.S.C. 831n-4(a)]) takes effect.

      (3) Any determination under paragraph (1) shall be reviewable
    only in the appropriate court of the United States upon petition
    filed by any aggrieved person or municipality within 60 days after
    such determination, and such court shall have jurisdiction to grant
    appropriate relief. Any applicant who applied for and obtained the
    order under section 824i or 824j of this title, and any electric
    utility or other entity subject to such order shall have the right
    to intervene in any such proceeding in such court. Except for
    review by such court (and any appeal or other review by an
    appellate court of the United States), no court shall have
    jurisdiction to consider any action brought by any person to enjoin
    the carrying out of any order of the Commission under section 824i
    or section 824j of this title requiring the TVA to take any action
    on the grounds that such action requires a specific authorization
    of the Congress pursuant to the third sentence of section 15d(a) of
    the TVA Act [16 U.S.C. 831n-4(a)].
    (g) Prohibition on orders inconsistent with retail marketing areas
      No order may be issued under this chapter which is inconsistent
    with any State law which governs the retail marketing areas of
    electric utilities.
    (h) Prohibition on mandatory retail wheeling and sham wholesale
      transactions
      No order issued under this chapter shall be conditioned upon or
    require the transmission of electric energy:
        (1) directly to an ultimate consumer, or
        (2) to, or for the benefit of, an entity if such electric
      energy would be sold by such entity directly to an ultimate
      consumer, unless:
          (A) such entity is a Federal power marketing agency; the
        Tennessee Valley Authority; a State or any political
        subdivision of a State (or an agency, authority, or
        instrumentality of a State or a political subdivision); a
        corporation or association that has ever received a loan for
        the purposes of providing electric service from the
        Administrator of the Rural Electrification Administration under
        the Rural Electrification Act of 1936 [7 U.S.C. 901 et seq.]; a
        person having an obligation arising under State or local law
        (exclusive of an obligation arising solely from a contract
        entered into by such person) to provide electric service to the
        public; or any corporation or association which is wholly
        owned, directly or indirectly, by any one or more of the
        foregoing; and
          (B) such entity was providing electric service to such
        ultimate consumer on October 24, 1992, or would utilize
        transmission or distribution facilities that it owns or
        controls to deliver all such electric energy to such electric
        consumer.

    Nothing in this subsection shall affect any authority of any State
    or local government under State law concerning the transmission of
    electric energy directly to an ultimate consumer.
    (i) Laws applicable to Federal Columbia River Transmission System
      (1) The Commission shall have authority pursuant to section 824i
    of this title, section 824j of this title, this section, and
    section 824l of this title to (A) order the Administrator of the
    Bonneville Power Administration to provide transmission service and
    (B) establish the terms and conditions of such service. In applying
    such sections to the Federal Columbia River Transmission System,
    the Commission shall assure that - 
        (i) the provisions of otherwise applicable Federal laws shall
      continue in full force and effect and shall continue to be
      applicable to the system; and
        (ii) the rates for the transmission of electric power on the
      system shall be governed only by such otherwise applicable
      provisions of law and not by any provision of section 824i of
      this title, section 824j of this title, this section, or section
      824l of this title, except that no rate for the transmission of
      power on the system shall be unjust, unreasonable, or unduly
      discriminatory or preferential, as determined by the Commission.

      (2) Notwithstanding any other provision of this chapter with
    respect to the procedures for the determination of terms and
    conditions for transmission service - 
        (A) when the Administrator of the Bonneville Power
      Administration either (i) in response to a written request for
      specific transmission service terms and conditions does not offer
      the requested terms and conditions, or (ii) proposes to establish
      terms and conditions of general applicability for transmission
      service on the Federal Columbia River Transmission System, then
      the Administrator may provide opportunity for a hearing and, in
      so doing, shall - 
          (I) give notice in the Federal Register and state in such
        notice the written explanation of the reasons why the specific
        terms and conditions for transmission services are not being
        offered or are being proposed;
          (II) adhere to the procedural requirements of paragraphs (1)
        through (3) of section 839e(i) of this title, except that the
        hearing officer shall, unless the hearing officer becomes
        unavailable to the agency, make a recommended decision to the
        Administrator that states the hearing officer's findings and
        conclusions, and the reasons or basis thereof, on all material
        issues of fact, law, or discretion presented on the record; and
          (III) make a determination, setting forth the reasons for
        reaching any findings and conclusions which may differ from
        those of the hearing officer, based on the hearing record,
        consideration of the hearing officer's recommended decision,
        section 824j of this title and this section, as amended by the
        Energy Policy Act of 1992, and the provisions of law as
        preserved in this section; and

        (B) if application is made to the Commission under section 824j
      of this title for transmission service under terms and conditions
      different than those offered by the Administrator, or following
      the denial of a request for transmission service by the
      Administrator, and such application is filed within 60 days of
      the Administrator's final determination and in accordance with
      Commission procedures, the Commission shall - 
          (i) in the event the Administrator has conducted a hearing as
        herein provided for (I) accord parties to the Administrator's
        hearing the opportunity to offer for the Commission record
        materials excluded by the Administrator from the hearing
        record, (II) accord such parties the opportunity to submit for
        the Commission record comments on appropriate terms and
        conditions, (III) afford those parties the opportunity for a
        hearing if and to the extent that the Commission finds the
        Administrator's hearing record to be inadequate to support a
        decision by the Commission, and (IV) establish terms and
        conditions for or deny transmission service based on the
        Administrator's hearing record, the Commission record, section
        824j of this title and this section, as amended by the Energy
        Policy Act of 1992, and the provisions of law as preserved in
        this section, or
          (ii) in the event the Administrator has not conducted a
        hearing as herein provided for, determine whether to issue an
        order for transmission service in accordance with section 824j
        of this title and this section, including providing the
        opportunity for a hearing.

      (3) Notwithstanding those provisions of section 825l(b) of this
    title which designate the court in which review may be obtained,
    any party to a proceeding concerning transmission service sought to
    be furnished by the Administrator of the Bonneville Power
    Administration seeking review of an order issued by the Commission
    in such proceeding shall obtain a review of such order in the
    United States Court of Appeals for the Pacific Northwest, as that
    region is defined by section 839a(14) of this title.
      (4) To the extent the Administrator of the Bonneville Power
    Administration cannot be required under section 824j of this title,
    as a result of the Administrator's other statutory mandates, either
    to (A) provide transmission service to an applicant which the
    Commission would otherwise order, or (B) provide such service under
    rates, terms, and conditions which the Commission would otherwise
    require, the applicant shall not be required to provide similar
    transmission services to the Administrator or to provide such
    services under similar rates, terms, and conditions.
      (5) The Commission shall not issue any order under section 824i
    of this title, section 824j of this title, this section, or section
    824l of this title requiring the Administrator of the Bonneville
    Power Administration to provide transmission service if such an
    order would impair the Administrator's ability to provide such
    transmission service to the Administrator's power and transmission
    customers in the Pacific Northwest, as that region is defined in
    section 839a(14) of this title, as is needed to assure adequate and
    reliable service to loads in that region.
    (j) Equitability within territory restricted electric systems
      With respect to an electric utility which is prohibited by
    Federal law from being a source of power supply, either directly or
    through a distributor of its electric energy, outside an area set
    forth in such law, no order issued under section 824j of this title
    may require such electric utility (or a distributor of such
    electric utility) to provide transmission services to another
    entity if the electric energy to be transmitted will be consumed
    within the area set forth in such Federal law, unless the order is
    in furtherance of a sale of electric energy to that electric
    utility: Provided, however, That the foregoing provision shall not
    apply to any area served at retail by an electric transmission
    system which was such a distributor on October 24, 1992, and which
    before October 1, 1991, gave its notice of termination under its
    power supply contract with such electric utility.
    (k) ERCOT utilities
      (1) Rates
        Any order under section 824j of this title requiring provision
      of transmission services in whole or in part within ERCOT shall
      provide that any ERCOT utility which is not a public utility and
      the transmission facilities of which are actually used for such
      transmission service is entitled to receive compensation based,
      insofar as practicable and consistent with subsection (a) of this
      section, on the transmission ratemaking methodology used by the
      Public Utility Commission of Texas.
      (2) Definitions
        For purposes of this subsection - 
          (A) the term "ERCOT" means the Electric Reliability Council
        of Texas; and
          (B) the term "ERCOT utility" means a transmitting utility
        which is a member of ERCOT.