
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
