16 U.S.C. § 824s : US Code - Section 824S: Transmission infrastructure investment

Search 16 U.S.C. § 824s : US Code - Section 824S: Transmission infrastructure investment

(a) Rulemaking requirement
Not later than 1 year after August 8, 2005, the Commission shall
establish, by rule, incentive-based (including performance-based)
rate treatments for the transmission of electric energy in
interstate commerce by public utilities for the purpose of
benefitting consumers by ensuring reliability and reducing the cost
of delivered power by reducing transmission congestion.
(b) Contents
The rule shall -
(1) promote reliable and economically efficient transmission
and generation of electricity by promoting capital investment in
the enlargement, improvement, maintenance, and operation of all
facilities for the transmission of electric energy in interstate
commerce, regardless of the ownership of the facilities;
(2) provide a return on equity that attracts new investment in
transmission facilities (including related transmission
technologies);
(3) encourage deployment of transmission technologies and other
measures to increase the capacity and efficiency of existing
transmission facilities and improve the operation of the
facilities; and
(4) allow recovery of -
(A) all prudently incurred costs necessary to comply with
mandatory reliability standards issued pursuant to section 824o
of this title; and
(B) all prudently incurred costs related to transmission
infrastructure development pursuant to section 824p of this
title.
(c) Incentives
In the rule issued under this section, the Commission shall, to
the extent within its jurisdiction, provide for incentives to each
transmitting utility or electric utility that joins a Transmission
Organization. The Commission shall ensure that any costs
recoverable pursuant to this subsection may be recovered by such
utility through the transmission rates charged by such utility or
through the transmission rates charged by the Transmission
Organization that provides transmission service to such utility.
(d) Just and reasonable rates
All rates approved under the rules adopted pursuant to this
section, including any revisions to the rules, are subject to the
requirements of sections 824d and 824e of this title that all
rates, charges, terms, and conditions be just and reasonable and
not unduly discriminatory or preferential.