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