1

1This Act appears in 16 U.S.C. 791a and following. 

FEDERAL POWER ACT 1

[The Act of June 10, 1920, Chapter 285 of the 66th Congress] 

[As Amended Through P.L. 115–325, Enacted December 18, 2018] 

øCurrency: This publication is a compilation of the text of chapter 285 of the 66th 

Congress. It was last amended by the public law listed in the As Amended 

Through note above and below at the bottom of each page of the pdf version and 

reflects current law through the date of the enactment of the public law listed at 

https://www.govinfo.gov/app/collection/comps/¿

øNote: While this publication does not represent an official version of any Federal 

statute, substantial efforts have been made to ensure the accuracy of its contents. 

The official version of Federal law is found in the United States Statutes at Large 

and in the United States Code. The legal effect to be given to the Statutes at 

Large and the United States Code is established by statute (1 U.S.C. 112, 204).¿

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled,

PART I 

That a commission is hereby created and established, to be 

known as the Federal Power Commission (hereinafter referred to 

as the ‘‘commission’’) which shall be composed of five commissioners who shall be appointed by the President, by and with the 

advice and consent of the Senate, one of whom shall be designated 

by the President as chairman and shall be the principal executive 

officer of the commission: Provided, That after the expiration of the 

original term of the commissioner so designated as chairman by the 

President, chairmen shall be elected by the commission itself, each 

chairman when so elected to act as such until the expiration of his 

term of office. 

The commissioners first appointed under this section, as 

amended, shall continue in office for terms of one, two, three, four, 

and five years, respectively, from the date this section, as amended, 

takes effect, the term of each to be designated by the President at 

the time of nomination. Their successors shall be appointed each 

for a term of five years from the date of the expiration of the term 

for which his predecessor was appointed and until his successor is 

appointed and has qualified, except that he shall not so continue 

to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office, and except 

that any person appointed to fill a vacancy occurring prior to the 

expiration of the term for which his predecessor was appointed 

shall be appointed only for the unexpired term. Not more than 

three of the commissioners shall be appointed from the same political party. No person in the employ of or holding any official relation to any licensee or to any person, firm, association, or corporaVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00001 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 2 FEDERAL POWER ACT 2

tion engaged in the generation, transmission, distribution, or sale 

of power, or owning stock or bonds thereof, or who is in any manner pecuniarily interested therein, shall enter upon the duties of or 

hold the office of commissioner. Said commissioners shall not engage in any other business, vocation, or employment. No vacancy 

in the commission shall impair the right of the remaining commissioners to exercise all the powers of the commission. Three members of the commission shall constitute a quorum for the transaction of business, and the commission shall have an official seal 

of which judicial notice shall be taken. The commission shall annually elect a vice chairman to act in case of the absence or disability 

of the chairman or in case of a vacancy in the office of chairman. Each commissioner shall receive an annual salary of $10,000, 

together with necessary traveling and subsistence expenses, or per 

diem allowance in lieu thereof, within the limitations prescribed by 

law, while away from the seat of government upon official business. 

The principal office of the commission shall be in the District 

of Columbia, where its general sessions shall be held; but whenever 

the convenience of the public or of the parties may be promoted or 

delay or expense prevented thereby, the commission may hold special session in any part of the United States.

ø16 U.S.C. 792¿

SEC. 2. The commission shall have authority to appoint, prescribe the duties, and fix the salaries of a secretary, a chief engineer, a general counsel, a solicitor, and a chief accountant; and 

may, subject to the civil service laws, appoint such other officers 

and employees as are necessary in the execution of its functions 

and fix their salaries in accordance with the Classification Act of 

1949. The commission may request the President to detail an officer or officers from the Corps of Engineers, or other branches of the 

United States Army, to serve the commission as engineer officer or 

officers, or in any other capacity, in field work outside the seat of 

government, their duties to be prescribed by the commission; and 

such detail is hereby authorized. The President may also, at the request of the commission, detail, assign, or transfer to the commission engineers in or under the Departments of the Interior or Agriculture for field work outside the seat of government under the direction of the commission. 

The Commission may make such expenditures (including expenditures for rent and personal services at the seat of government 

and elsewhere, for law books, periodicals, and books of reference, 

and for printing and binding) as are necessary to execute its functions. Expenditures by the commission shall be allowed and paid 

upon the presentation of itemized vouchers therefor, approved by 

the chairman of the Commission or by such other member or officer 

as may be authorized by the Commission for that purpose subject 

to applicable regulations under the Federal Property and Administrative Services Act of 1949, as amended.

ø16 U.S.C. 793¿

SEC. 3. The words defined in this section shall have the following meanings for purpose of this Act, to wit: 

(1) ‘‘public lands’’ means such lands and interest in lands 

owned by the United States as are subject to private appropriation 


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3 Sec. 3 FEDERAL POWER ACT 

and disposal under public land laws. It shall not include ‘‘reservations,’’ as hereinafter defined; 

(2) ‘‘reservations’’ means national forest, tribal lands embraced 

within Indian reservations, military reservations, and other lands 

and interests in lands owned by the United States, and withdrawn, 

reserved, or withheld from private appropriation and disposal 

under the public land laws; also lands and interests in lands acquired and held for any public purposes; but shall not include national monuments or national parks; 

(3) ‘‘corporation’’ means any corporation, joint-stock company, 

partnership, association, business trust, organized group of persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing. It shall not include ‘‘municipalities’’ as hereinafter defined; 

(4) ‘‘person’’ means an individual or a corporation; 

(5) ‘‘licensee’’ means any person, State, or municipality licensed 

under the provisions of section 4 of this Act, and any assignee or 

successor in interest thereof; 

(6) ‘‘State’’ means a State admitted to the Union, the District 

of Columbia, and any organized Territory of the United States; 

(7) ‘‘municipality’’ means a city, county, irrigation district, 

drainage district, or other political subdivision or agency of a State 

competent under the laws thereof to carry on the business of developing, transmitting, utilizing, or distributing power; 

(8) ‘‘navigable waters’’ means those parts of streams or other 

bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the 

several States, and which either in their natural or improved condition notwithstanding interruptions between the navigable parts of 

such streams or waters by falls, shallows, or rapids compelling land 

carriage, are used or suitable for use for the transportation of persons or property in interstate or foreign commerce, including therein all such interrupting falls, shallows, or rapids, together with 

such other parts of streams as shall have been authorized by Congress for improvement by the United States or shall have been recommended to Congress for such improvement after investigation 

under its authority; 

(9) ‘‘municipal purposes’’ means and includes all purposes within municipal powers as defined by the constitution or laws of the 

State or by the charter of the municipality; 

(10) ‘‘Government dam’’ means a dam or other work constructed or owned by the United States for Government purposes 

with or without contribution from others; 

(11) ‘‘project’’ means complete unit of improvement or development, consisting of a power house, all water conduits, all dams and 

appurtenant works and structures including navigation structures) 

which are a part of said unit, and all storage, diverting, or forebay 

reservoirs directly connected therewith, the primary line or lines 

transmitting power therefrom to the point of junction with the distribution system or with the interconnected primary transmission 

system, all miscellaneous structures used and useful in connection 

with said unit or any part thereof, and all water-rights, rights-ofway, ditches, dams, reservoirs, lands, or interest in lands the use 


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Sec. 3 FEDERAL POWER ACT 4

and occupancy of which are necessary or appropriate in the maintenance and operation of such unit; 

(12) ‘‘project works’’ means the physical structures of a project; 

(13) ‘‘net investment’’ in a project means the actual legitimate 

original cost thereof as defined and interpreted in the ‘‘classification of investment in road and equipment of steam roads, issue of 

1914, Interstate Commerce Commission,’’ plus similar cost of additions thereto and betterments thereof, minus the sum of the following items properly allocated thereto, if and to the extent that 

such items have been accumulated during the period of the license 

from earnings in excess of a fair return on such investment: (a) Unappropriated surplus, (b) aggregate credit balances of current depreciation accounts, and (c) aggregate appropriations of surplus or 

income held in amortization, sinking fund, or similar reserves, or 

expended for additions or betterments or used for the purposes for 

which such reserves were created. The term ‘‘cost’’ shall include, insofar as applicable, the elements thereof prescribed in said classification, but shall not include expenditures from funds obtained 

through donations by States, municipalities, individuals, or others, 

and said classification of investment of the Interstate Commerce 

Commission shall insofar as applicable be published and promulgated as a part of the rules and regulations of the Commission; 

(14) ‘‘Commission’’ and ‘‘Commissioner’’ means the Federal 

Power Commission, and a member thereof, respectively; 

(15) ‘‘State commission’’ means the regulatory body of the State 

or municipality having jurisdiction to regulate rates and charges 

for the sale of electric energy to consumers within the State or municipality; 

(16) ‘‘security’’ means any note, stock, treasury stock, bond, debenture, or other evidence of interest in or indebtedness of a corporation subject to the provisions of this Act; 

(17)(A) ‘‘small power production facility’’ means a facility which 

is an eligible solar, wind, waste, or geothermal facility, or a facility 

which—

(i) produces electric energy solely by the use, as a primary 

energy source, of biomass, waste, renewable resources, geothermal resources, or any combination thereof; and 

(ii) has a power production capacity which, together with 

any other facilities located at the same site (as determined by 

the Commission), is not greater than 80 megawatts; 

(B) ‘‘primary energy source’’ means the fuel or fuels used for 

the generation of electric energy, except that such term does not include, as determined under rules prescribed by the Commission, in 

consultation with the Secretary of Energy—

(i) the minimum amounts of the fuel required for ignition, 

startup, testing, flame stabilization, and control uses, and 

(ii) the minimum amounts of fuel required to alleviate or 

prevent—

(I) unanticipated equipment outages, and 

(II) emergencies, directly affecting the public health, 

safety, or welfare, which would result from electric power 

outages; 


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5 Sec. 3 FEDERAL POWER ACT 

2Margin so in law. 

3So in law. The period probably should be a semicolon. 

4Margin so in law. 

(C) 2 ‘‘qualifying small power production facility’’ 

means a small power production facility that the Commission determines, by rule, meets such requirements (including requirements respecting fuel use, fuel efficiency, and 

reliability) as the Commission may, by rule, prescribe; 

(D) ‘‘qualifying small power producer’’ means the owner or operator of a qualifying small power production facility; 

(E) ‘‘eligible solar, wind, waste or geothermal facility’’ 

means a facility which produces electric energy solely by 

the use, as a primary energy source, of solar energy, wind 

energy, waste resources or geothermal resources; but only 

if—

(i) either of the following is submitted to the Commission not later than December 31, 1994: 

(I) an application for certification of the facility as a qualifying small power production facility; 

or 

(II) notice that the facility meets the requirements for qualification; and 

(ii) construction of such facility commences not 

later than December 31, 1999, or, if not, reasonable 

diligence is exercised toward the completion of such facility taking into account all factors relevant to construction of the facility. 3

(18)(A) ‘‘cogeneration facility’’ means a facility which produces—

(i) electric energy, and 

(ii) steam or forms of useful energy (such as heat) which 

are used for industrial, commercial, heating, or cooling purposes; 

(B) 4 ‘‘qualifying cogeneration facility’’ means a cogeneration facility that the Commission determines, by rule, 

meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the 

Commission may, by rule, prescribe; 

(C) ‘‘qualifying cogenerator’’ means the owner or operator of a 

qualifying cogeneration facility; 

(19) ‘‘Federal power marketing agency’’ means any agency or 

instrumentality of the United States (other than the Tennessee 

Valley Authority) which sells electric energy; 

(20) ‘‘evidentiary hearings’’ and ‘‘evidentiary proceeding’’ mean 

a proceeding conducted as provided in sections 554, 556, and 557 

of title 5, United States Code; 

(21) ‘‘State regulatory authority’’ has the same meaning as the 

term ‘‘State commission’’, except that in the case of an electric utility with respect to which the Tennessee Valley Authority has ratemaking authority (as defined in section 3 of the Public Utility Regulatory Policies Act of 1978), such term means the Tennessee Valley Authority; 


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Sec. 4 FEDERAL POWER ACT 6

(22) ELECTRIC UTILITY.—(A) The term ‘‘electric utility’’ 

means a person or Federal or State agency (including an entity 

described in section 201(f)) that sells electric energy. 

(B) The term ‘‘electric utility’’ includes the Tennessee Valley Authority and each Federal power marketing administration. 

(23) TRANSMITTING UTILITY.—The term ‘‘transmitting utility’’ means an entity (including an entity described in section 

201(f)) that owns, operates, or controls facilities used for the 

transmission of electric energy—

(A) in interstate commerce; 

(B) for the sale of electric energy at wholesale. 

(24) WHOLESALE TRANSMISSION SERVICES.—The term 

‘‘wholesale transmission services’’ means the transmission of 

electric energy sold, or to be sold, at wholesale in interstate 

commerce. 

(25) EXEMPT WHOLESALE GENERATOR.—The term ‘‘exempt 

wholesale generator’’ shall have the meaning provided by section 32 of the Public Utility Holding Company Act of 1935. 

(26) ELECTRIC COOPERATIVE.—The term ‘‘electric cooperative’’ means a cooperatively owned electric utility. 

(27) RTO.—The term ‘‘Regional Transmission Organization’’ or ‘‘RTO’’ means an entity of sufficient regional scope approved by the Commission—

(A) to exercise operational or functional control of facilities used for the transmission of electric energy in interstate commerce; and 

(B) to ensure nondiscriminatory access to the facilities. 

(28) ISO.—The term ‘‘Independent System Operator’’ or 

‘‘ISO’’ means an entity approved by the Commission—

(A) to exercise operational or functional control of facilities used for the transmission of electric energy in interstate commerce; and 

(B) to ensure nondiscriminatory access to the facilities. 

(29) TRANSMISSION ORGANIZATION.—The term ‘‘Transmission Organization’’ means a Regional Transmission Organization, Independent System Operator, independent transmission provider, or other transmission organization finally approved by the Commission for the operation of transmission facilities.

ø16 U.S.C. 796¿

SEC. 4. The Commission is hereby authorized and empowered—

(a) To make investigations and to collect and record data concerning the utilization of the water resources of any region to be 

developed, the water-power industry and its relation to other industries and to interstate or foreign commerce, and concerning the 

location, capacity, development cost, and relation to markets of 

power sites, and whether the power from Government dams can be 

advantageously used by the United States for its public purposes, 

and what is a fair value of such power, to the extent the Commission may deem necessary or useful for the purposes of this Act. 


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7 Sec. 4 FEDERAL POWER ACT 

(b) To determine the actual legitimate original cost of and the 

net investment in a licensed project, and to aid the Commission in 

such determinations, each licensee shall, upon oath, within a reasonable period of time to be fixed by the Commission, after the construction of the original project or any addition thereto or betterment thereof, file with the Commission in such detail as the Commission may require, a statement in duplicate showing the actual 

legitimate original cost of construction of such project, addition, or 

betterment, and of the price paid for water rights, rights-of-way, 

lands, or interest in lands. The licensee shall grant to the Commission or to its duly authorized agent or agents, at all reasonable 

times, free access to such project, addition, or betterment, and to 

all maps, profiles, contracts, reports of engineers, accounts, books, 

records, and all other papers and documents relating thereto. The 

statement of actual legitimate original cost of said project, and revisions thereof as determined by the Commission, shall be filed 

with the Secretary of the Treasury. 

(c) To cooperate with the executive departments and other 

agencies of State or National Governments in such investigations; 

and for such purpose the several departments and agencies of the 

National Government are authorized and directed upon the request 

of the Commission to furnish such records, papers, and information 

in their possession as may be requested by the Commission, and 

temporarily to detail to the Commission such officers or experts as 

may be necessary in such investigations. 

(d) To make public from time to time the information secured 

hereunder and to provide for the publication of its reports and investigations in such form and manner as may be best adapted for 

public information and use. The Commission, on or before the 3d 

day of January of each year, shall submit to Congress for the fiscal 

year preceding a classified report showing the permits and licenses 

issued under this Part, and in each case the parties thereto, the 

terms prescribed, and the moneys received if any, on account thereof. 

(e) To issue licenses to citizens of the United States, or to any 

association of such citizens, or to any corporation organized under 

the laws of the United States or any State thereof, or to any State 

or municipality for the purpose of constructing, operating, and 

maintaining dams, water conduits, reservoirs, power houses, transmission lines, or other project works necessary or convenient for 

the development and improvement of navigation and for the development, transmission, and utilization of power across, along, from 

or in any of the streams or other bodies of water over which Congress has jurisdiction under its authority to regulate commerce 

with foreign nations and among the several States, or upon any 

part of the public lands and reservations of the United States (including the Territories), or for the purpose of utilizing the surplus 

water or water power from any Government dam, except as herein 

provided: Provided, That licenses shall be issued within any reservation only after a finding by the Commission that the license 

will not interfere or be inconsistent with the purpose for which 

such reservation was created or acquired, and shall be subject to 

and contain such conditions as the Secretary of the department 

under whose supervision such reservation falls shall deem necVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00007 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 4 FEDERAL POWER ACT 8

5The amendment made by section 241(a) of Public Law 109–58 to insert after ‘‘adequate protection and utilization of such reservation.’’ at the end of the first proviso the following: ‘‘The 

license applicant and any party to the proceeding shall be entitled to a determination on the 

record, after opportunity for an agency trial-type hearing of no more than 90 days, on any disputed issues of material fact with respect to such conditions. All disputed issues of material fact 

raised by any party shall be determined in a single trial-type hearing to be conducted by the 

relevant resource agency in accordance with the regulations promulgated under this subsection 

and within the time frame established by the Commission for each license proceeding. Within 

90 days of the date of enactment of the Energy Policy Act of 2005, the Secretaries of the Interior, Commerce, and Agriculture shall establish jointly, by rule, the procedures for such expedited trial-type hearing, including the opportunity to undertake discovery and cross-examine 

witnesses, in consultation with the Federal Energy Regulatory Commission.’’ could not be executed because the instruction probably should not have included a period in the quoted matter 

relating to the place where such languange is to be inserted. Also, the period that appears at 

the end of the matter purported to be inserted should not include a period. 

essary for the adequate protection and utilization of such reservation: 5Provided further, That no license affecting the navigable capacity of any navigable waters of the United States shall be issued 

until the plans of the dam or other structures affecting navigation 

have been approved by the Chief of Engineers and the Secretary 

of the Army. Whenever the contemplated improvement is, in the 

judgment of the Commission, desirable and justified in the public 

interest for the purpose of improving or developing a waterway or 

waterways for the use or benefit of interstate or foreign commerce, 

a finding to that effect shall be made by the Commission and shall 

become a part of the records of the Commission: Provided further, 

That in case the Commission shall find that any Government dam 

may be advantageously used by the United States for public purposes in addition to navigation, no license therefor shall be issued 

until two years after it shall have reported to Congress the facts 

and conditions relating thereto, except that this provision shall not 

apply to any Government dam constructed prior to June 10, 1920: 

And provided further, That upon the filing of any application for 

a license which has not been preceded by a preliminary permit 

under subsection (f) of this section, notice shall be given and published as required by the proviso of said subsection. In deciding 

whether to issue any license under this Part for any project, the 

Commission, in addition to the power and development purposes 

for which licenses are issued, shall give equal consideration to the 

purposes of energy conservation, the protection, mitigation of damage to, and enhancement of, fish and wildlife (including related 

spawning grounds and habitat), the protection of recreational opportunities, and the preservation of other aspects of environmental 

quality. 

(f) To issue preliminary permits for the purpose of enabling applicants for a license hereunder to secure the data and to perform 

the acts required by section 9 hereof: Provided, however, That upon 

the filing of any application for a preliminary permit by any person, association or corporation the Commission, before granting 

such application, shall at once give notice of such application in 

writing to any State or municipality likely to be interested in or affected by such application; and shall also publish notice of such application once each week for four weeks in a daily or weekly newspaper published in the county or counties in which the project or 

any part thereof or the lands affected thereby are situated. 

(g) Upon its own motion to order an investigation of any occupancy of, or evidenced intention to occupy, for the purpose of develVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00008 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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oping electric power, public lands, reservations, or streams or other 

bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the 

several States by any person, corporation, state or municipality and 

to issue such order as it may find appropriate, expedient, and in 

the public interest to conserve and utilize the navigation and 

water-power resources of the region.

ø16 U.S.C. 797¿

SEC. 5. (a) Each preliminary permit issued under this Part 

shall be for the sole purpose of maintaining priority of application 

for a license under the terms of this Act for such period or periods, 

not exceeding a total of 4 years, as in the discretion of the Commission may be necessary for making examinations and surveys, for 

preparing maps, plans, specifications, and estimates, and for making financial arrangements. 

(b) The Commission may—

(1) extend the period of a preliminary permit once for not 

more than 4 additional years beyond the 4 years permitted by 

subsection (a) if the Commission finds that the permittee has 

carried out activities under such permit in good faith and with 

reasonable diligence; and 

(2) after the end of an extension period granted under 

paragraph (1), issue an additional permit to the permittee if 

the Commission determines that there are extraordinary circumstances that warrant the issuance of the additional permit. 

(c) Each such permit shall set forth the conditions under which 

priority shall be maintained. 

(d) Such permits shall not be transferable, and may be canceled by order of the Commission upon failure of permittees to comply with the conditions thereof or for other good cause shown after 

notice and opportunity for hearing.

ø16 U.S.C. 798¿

SEC. 6. Licenses under this Part shall be issued for a period 

not exceeding fifty years. Each such license shall be conditioned 

upon acceptance by the licensee of all the terms and conditions of 

this Act and such further conditions, if any, as the Commission 

shall prescribe in conformity with this Act, which said terms and 

conditions and the acceptance thereof shall be expressed in said license. Licenses may be revoked only for the reasons and in the 

manner prescribed under the provisions of this Act, and may be altered or surrendered only upon mutual agreement between the licensee and the Commission after thirty days’ public notice.

ø16 U.S.C. 799¿

SEC. 7. (a) In issuing preliminary permits hereunder or original licenses where no preliminary permit has been issued, the 

Commission shall give preference to applications therefor by 

States, Indian tribes, and municipalities, provided the plans for the 

same are deemed by the Commission equally well adapted, or shall 

within a reasonable time to be fixed by the Commission be made 

equally well adapted, to conserve and utilize in the public interest 

the water resources of the region; and as between other applicants, 

the Commission may give preference to the applicant the plans of 


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Sec. 8 FEDERAL POWER ACT 10

6 Note also that the act of Mar. 3, 1921 (41 Stat. 1353), reads as follows:

‘‘ Be it enacted by the Senate and House of Representatives of the United States of America 

in Congress assembled, That hereafter no permit, license, lease, or authorization for dams, conduits, reservoirs, power houses, transmission lines or other works for storage or carriage of 

water, or for the development, transmission, or utilization of power within the limits as now 

constituted of any national park or national monument shall be granted or made without specific authority of Congress, and so much of the Act of Congress approved June 10, 1920, entitled 

‘An Act to create a Federal Power Commission; to provide for the improvement of navigation; 

the development of water power; the use of the public lands in relation thereto; and to repeal 

section 18 of the River and Harbor Appropriation Act, approved August 8, 1917, and for other 

purposes’, approved June 10, 1920, as authorizes licensing such uses of existing national parks 

and national monuments by the Federal Power Commission is hereby repealed.’’ 

which it finds and determines are best adapted to develop, conserve, and utilize in the public interest the water resources of the 

region, if it be satisfied as to the ability of the applicant to carry 

out such plans. 

(b) Whenever, in the judgment of the Commission, the development of any water resources for public purposes should be undertaken by the United States itself, the Commission shall not approve any application for any project affecting such development, 

but shall cause to be made such examinations, surveys, reports, 

plans, and estimates of the cost of the proposed development as it 

may find necessary, and shall submit its findings to Congress with 

such recommendations as it may find appropriate concerning such 

development. 

(c) Whenever after notice and opportunity for hearing in the 

Commission determines that the United States should exercise its 

right upon or after the expiration of any license to take over any 

project or projects for public purposes, the Commission shall not 

issue a new license to the original licensee or to a new licensee but 

shall submit its recommendation to Congress together with such 

information as it may consider appropriate.

ø16 U.S.C. 800¿

SEC. 8. That no voluntary transfer of any license, or of the 

rights thereunder granted, shall be made without the written approval of the commission; and any successor or assign of the rights 

of such licensee, whether by voluntary transfer, judicial sale, foreclosure sale, or otherwise, shall be subject to all the conditions of 

the license under which such rights are held by such licensee and 

also subject to all the provisions and conditions of this Act to the 

same extent as though such successor as assign were the original 

licensee hereunder: Provided, That a mortgage or trust deed or judicial sales made thereunder or under tax sales shall not be 

deemed voluntary transfers within the meaning of this section.

ø16 U.S.C. 801¿

SEC. 9. 7 (a) That each applicant for a license hereunder shall 

submit to the Commission—

(1) Such maps, plans, specifications, and estimates of cost as 

may be required for a full understanding of the proposed project. 

Such maps, plans, and specifications when approved by the commission shall be made a part of the license; and thereafter no 

change shall be made in said maps, plans, or specifications until 

such changes shall have been approved and made a part of such 

license by the Commission. 


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11 Sec. 10 FEDERAL POWER ACT 

(2) Satisfactory evidence that the applicant has complied with 

the requirements of the laws of the State or States within which 

the proposed project is to be located with respect to bed and banks 

and to the appropriation, diversion, and use of water for power purposes and with respect to the right to engage in the business of developing, transmitting, and distributing power, and in any other 

business necessary to effect the purposes of a license under this 

Act. 

(c) 7 Such additional information as the commission may require. 

(b) Upon the filing of any application for a license (other than 

a license under section 15) the applicant shall make a good faith 

effort to notify each of the following by certified mail: 

(1) Any person who is an owner of record of any interest 

in the property within the bounds of the project. 

(2) Any Federal, State, municipal or other local governmental agency likely to be interested in or affected by such application.

ø16 U.S.C. 802¿

SEC. 10. All licenses issued under this Part shall be on the following conditions: 

(a)(1) That the project adopted, including the maps, plans, and 

specifications, shall be such as in the judgment of the Commission 

will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, for the improvement and utilization of 

waterpower development, for the adequate protection, mitigation, 

and enhancement of fish and wildlife (including related spawning 

grounds and habitat), and for other beneficial public uses, including 

irrigation, flood control, water supply, and recreational and other 

purposes referred to in section 4(e); and if necessary in order to secure such plan the Commission shall have authority to require the 

modification of any project and of the plans and specifications of 

the project works before approval. 

(2) In order to ensure that the project adopted will be best 

adapted to the comprehensive plan described in paragraph (1), the 

Commission shall consider each of the following: 

(A) The extent to which the project is consistent with a 

comprehensive plan (where one exists) for improving, developing, or conserving a waterway or waterways affected by the 

project that is prepared by—

(i) an agency established pursuant to Federal law that 

has the authority to prepare such a plan; or 

(ii) the State in which the facility is or will be located. 

(B) The recommendations of Federal and State agencies 

exercising administration over flood control, navigation, irrigation, recreation, cultural and other relevant resources of the 

State in which the project is located, and the recommendations 

(including fish and wildlife recommendations) of Indian tribes 

affected by the project. 

(C) In the case of a State or municipal applicant, or an applicant which is primarily engaged in the generation or sale of 

electric power (other than electric power solely from cogeneraVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00011 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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Sec. 10 FEDERAL POWER ACT 12

tion facilities or small power production facilities), the electricity consumption efficiency improvement program of the applicant, including its plans, performance and capabilities for 

encouraging or assisting its customers to conserve electricity 

cost-effectively, taking into account the published policies, restrictions, and requirements of relevant State regulatory authorities applicable to such applicant. 

(3) Upon receipt of an application for a license, the Commission 

shall solicit recommendations from the agencies and Indian tribes 

identified in subparagraphs (A) and (B) of paragraph (2) for proposed terms and conditions for the Commission’s consideration for 

inclusion in the license. 

(b) That except when emergency shall require for the protection of navigation, life, health, or property, no substantial alteration or addition not in conformity with the approved plans shall 

be made to any dam or other project works constructed hereunder 

of an installed capacity in excess of two thousand horsepower without the prior approval of the Commission; and any emergency alteration or addition so made shall thereafter be subject to such 

modification and change as the Commission may direct. 

(c) That the licensee shall maintain the project works in a condition or repair adequate for the purposes of navigation and for the 

efficient operation of said works in the development and transmission of power, shall make all necessary renewals and replacements, shall establish and maintain adequate depreciation reserves 

for such purposes, shall so maintain and operate said works as not 

to impair navigation, and shall conform to such rules and regulations as the Commission may from time to time prescribe for the 

protection of life, health, and property. Each licensee hereunder 

shall be liable for all damages occasioned to the property of others 

by the construction, maintenance, or operation of the project works 

or of the works appurtenant or accessory thereto, constructed 

under the license, and in no event shall the United States be liable 

therefor. 

(d) That after the first twenty years of operation, out of surplus 

earned thereafter, if any, accumulated in excess of a specified reasonable rate of return upon the net investment of a licensee in any 

project or projects, under license, the licensee shall establish and 

maintain amortization reserves, which reserves shall, in the discretion of the Commission, be held until the termination of the license 

or be applied from time to time in reduction of the net investment. 

Such specified rate of return and the proportion of such surplus 

earnings to be paid into and held in such reserves shall be set forth 

in the license. For any new license issued under section 15, the amortization reserves under this subsection shall be maintained on 

and after the effective date of such new license. 

(e)(1) That the licensee shall pay to the United States reasonable annual charges in an amount to be fixed by the Commission 

for the purpose of reimbursing the United States for the costs of 

the administration of this Part, including any reasonable and necessary costs incurred by Federal and State fish and wildlife agencies and other natural and cultural resource agencies in connection 

with studies or other reviews carried out by such agencies for purposes of administering their responsibilities under this part; for 


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recompensing it for the use, occupancy, and enjoyment of its lands 

or other property; and for the expropriation to the Government of 

excessive profits until the respective States shall make provision 

for preventing excessive profits or for the expropriation thereof to 

themselves, or until the period of amortization as herein provided 

is reached, and in fixing such charges the Commission shall seek 

to avoid increasing the price to the consumers of power by such 

charges, and any such charges may be adjusted from time to time 

by the Commission as conditions may require: Provided, That, subject to annual appropriations Acts, the portion of such annual 

charges imposed by the Commission under this subsection to cover 

the reasonable and necessary costs of such agencies shall be available to such agencies (in addition to other funds appropriated for 

such purposes) solely for carrying out such studies and reviews and 

shall remain available until expended: Provided, That when licenses are issued involving the use of Government dams or other 

structures owned by the United States or tribal lands embraced 

within Indian reservations the Commission shall, subject to the approval of the Secretary of the Interior in the case of such dams or 

structures in reclamation projects and, in the case of such tribal 

lands, subject to the approval of the Indian tribe having jurisdiction of such lands as provided in section 16 of the Act of June 18, 

1934 (48 Stat. 984), fix a reasonable annual charge for the use 

thereof, and such charges may with like approval be readjusted by 

the Commission at the end of twenty years after the project is 

available for service and at periods of not less than ten years thereafter upon notice and opportunity for hearing: Provided further, 

That licenses for the development, transmission, or distribution of 

power by States or municipalities shall be issued and enjoyed without charge to the extent such power is sold to the public without 

profit or is used by such State or municipality for State or municipal purposes, except that as to projects constructed or to be constructed by States or municipalities primarily designed to provide 

or improve navigation, licenses therefor shall be issued without 

charge; and that licenses for the development, transmission, or distribution of power for domestic, mining, or other beneficial use in 

projects of not more than two thousand horsepower installed capacity may be issued without charges, except on tribal lands within Indian reservations; but in no case shall a license be issued free of 

charge for the development and utilization of power created by any 

Government dam and that the amount charged therefor in any license shall be such as determined by the Commission : Provided 

however, That no charge shall be assessed for the use of any Government dam or structure by any licensee if, before January 1, 

1985, the Secretary of the Interior has entered into a contract with 

such licensee that meets each of the following requirements: 

(A) The contract covers one or more projects for which a 

license was issued by the Commission before January 1, 1985. 

(B) The contract contains provisions specifically providing 

each of the following: 

(i) A powerplant may be built by the licensee utilizing 

irrigation facilities constructed by the United States. 

(ii) The powerplant shall remain in the exclusive control, possession, and ownership of the licensee concerned. 


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(iii) All revenue from the powerplant and from the use, 

sale, or disposal of electric energy from the powerplant 

shall be, and remain, the property of such licensee. 

(C) The contract is an amendatory, supplemental and replacement contract between the United States and: (i) the 

Quincy-Columbia Basin Irrigation District (Contract No. 14–

06–100–6418); (ii) the East Columbia Basin Irrigation District 

(Contract No. 14–06–100–6419); or, (iii) the South Columbia 

Basin Irrigation District (Contract No. 14–06–100–6420). 

This paragraph shall apply to any project covered by a contract referred to in this paragraph only during the term of such contract 

unless otherwise provided by subsequent Act of Congress. In the 

event an overpayment of any charge due under this section shall 

be made by a licensee, the Commission is authorized to allow a 

credit for such overpayment when charges are due for any subsequent period. 

(2) In the case of licenses involving the use of Government 

dams or other structures owned by the United States, the charges 

fixed (or readjusted) by the Commission under paragraph (1) for 

the use of such dams or structures shall not exceed 1 mill per kilowatt-hour for the first 40 gigawatt-hours of energy a project produces in any year, 11⁄2 mills per kilowatt-hour for over 40 up to and 

including 80 gigawatt-hours in any year, and 2 mills per kilowatthour for any energy the project produces over 80 gigawatt-hours in 

any year. Except as provided in subsection (f), such charge shall be 

the only charge assessed by any agency of the United States for the 

use of such dams or structures. 

(3) The provisions of paragraph (2) shall apply with respect 

to—

(A) all licenses issued after the date of the enactment of 

this paragraph; and 

(B) all licenses issued before such date which—

(i) did not fix a specific charge for the use of the Government dam or structure involved; and 

(ii) did not specify that no charge would be fixed for 

the use of such dam or structure. 

(4) Every 5 years, the Commission shall review the appropriateness of the annual charge limitations provided for in this 

subsection and report to Congress concerning its recommendations 

thereon. 

(f) That whenever any licensee hereunder is directly benefited 

by the construction work of another licensee, a permittee, or of the 

United States of a storage reservoir or other headwater improvement, the Commission shall require as a condition of the license 

that the licensee so benefited shall reimburse the owner of such 

reservoir or other improvements for such part of the annual 

charges for interest, maintenance, and depreciation thereon as the 

Commission may deem equitable. The proportion of such charges to 

be paid by any licensee shall be determined by the Commission. 

The licensees or permittees affected shall pay to the United States 

the cost of making such determination as fixed by the Commission. 

Whenever such reservoir or other improvement is constructed 

by the United States the Commission shall assess similar charges 

against any licensee directly benefited thereby, and any amount so 


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assessed shall be paid into the Treasury of the United States, to 

be reserved and appropriated as a part of the special fund for headwater improvements as provided in section 17 hereof. 

Whenever any power project not under license is benefited by 

the construction work of a licensee or permittee, the United States 

or any agency thereof, the Commission, after notice to the owner 

or owners of such unlicensed project, shall determine and fix a reasonable and equitable annual charge to be paid to the licensee or 

permittee on account of such benefits, or to the United States if it 

be the owner of such headwater improvement. 

(g) Such other conditions not inconsistent with the provisions 

of this Act as the Commission may require. 

(h)(1) That combinations, agreements, arrangements, or understandings, express or implied, to limit the output of electrical energy, to restrain trade, or to fix, maintain, or increase prices for 

electrical energy or service are hereby prohibited. 

(2) That conduct under the license that: (A) results in the contravention of the policies expressed in the antitrust laws; and (B) 

is not otherwise justified by the public interest considering regulatory policies expressed in other applicable law (including but not 

limited to those contained in Part II of this Act) shall be prevented 

or adequately minimized by means of conditions included in the license prior to its issuance. In the event it is impossible to prevent 

or adequately minimize the contravention, the Commission shall 

refuse to issue any license to the applicant for the project and, in 

the case of an existing project, shall take appropriate action to provide thereafter for the operation and maintenance of the affected 

project and for the issuing of a new license in accordance with section 15 of this Part. 

(i) In issuing licenses for a minor part only of a complete 

project, or for a complete project of not more than two thousand 

horsepower installed capacity, the Commission may in its discretion waive such conditions, provisions, and requirements of this 

Part, except the license period of fifty years, as it may deem to be 

to the public interest to waive under the circumstances: Provided, 

That the provision hereof shall not apply annual charges for use of 

lands within Indian reservations. 

(j)(1) That in order to adequately and equitably protect, mitigate damages to, and enhance, fish and wildlife (including related 

spawning grounds and habitat) affected by the development, operation, and management of the project, each license issued under 

this Part shall include conditions for such protection, mitigation, 

and enhancement. Subject to paragraph (2), such conditions shall 

be based on recommendations received pursuant to the Fish and 

Wildlife Coordination Act (16 U.S.C. 661 et seq.) from the National 

Marine Fisheries Service, the United States Fish and Wildlife Service, and State fish and wildlife agencies. 

(2) Whenever the Commission believes that any recommendation referred to in paragraph (1) may be inconsistent with the purposes and requirements of this Part or other applicable law, the 

Commission and the agencies referred to in paragraph (1) shall attempt to resolve any such inconsistency, giving due weight to the 

recommendations, expertise, and statutory responsibilities of such 

agencies. If, after such attempt, the Commission does not adopt in 


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whole or in part a recommendation of any such agency, the Commission shall publish each of the following findings (together with 

a statement of the basis for each of the findings): 

(A) A finding that adoption of such recommendation is inconsistent with the purposes and requirements of this Part or 

with other applicable provisions of law. 

(B) A finding that the conditions selected by the Commission comply with the requirements of paragraph (1). 

Subsection (i) shall not apply to the conditions required under this 

subsection.

ø16 U.S.C. 803¿

SEC. 11. That if the dam or other project works are to be constructed across, along, or in any of the navigable waters of the 

United States, the Commission may, insofar as it deems the same 

reasonably necessary to promote the present and future needs of 

navigation and consistent with a reasonable investment cost to the 

licensee, include in the license any one or more of the following 

provisions or requirements: 

(a) That such licensee shall, to the extent necessary to preserve 

and improve navigation facilities, construct, in whole or in part, 

without expense to the United States, in connection with such dam, 

a lock or locks, booms, sluices, or other structures for navigation 

purposes, in accordance with plans and specifications approved by 

the Chief of Engineers and the Secretary of the Army and made 

part of such license. 

(b) That in case such structures for navigation purposes are 

not made a part of the original construction at the expense of the 

licensee, then whenever the United States shall desire to complete 

such navigation facilities the licensee shall convey to the United 

States, free of cost, such of its land and its rights of way and such 

right of passage through its dams or other structures, and permit 

such control of pools as may be required to complete such navigation facilities. 

(c) That such licensee shall furnish free of cost to the United 

States power for the operation of such navigation facilities, whether 

constructed by the licensee or by the United States.

ø16 U.S.C. 804¿

SEC. 12. That whenever application is filed for a project hereunder involving navigable waters of the United States, and the 

commission shall find upon investigation that the needs of navigation require the construction of a lock or locks or other navigation 

structures, and that such structures can not, consistent with a reasonable investment cost to the applicant, be provided in the manner specified in section 11, subsection (a) hereof, the commission 

may grant the application with the provision to be expressed in the 

license that the licensee will install the necessary navigation structures if the Government fails to make provision therefor within a 

time to be fixed in the license and cause a report upon such project 

to be prepared, with estimates of cost of the power development 

and of the navigation structures, and shall submit such report to 

Congress with such recommendations as it deems appropriate concerning the participation of the United States in the cost of construction of such navigation structures.


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ø16 U.S.C. 805¿

SEC. 13. That the licensee shall commence the construction of 

the project works within the time fixed in the license, which shall 

not be more than two years from the date thereof, shall thereafter 

in good faith and with due diligence prosecute such construction, 

and shall within the time fixed in the license complete and put into 

operation such part of the ultimate development as the Commission shall deem necessary to supply the reasonable needs of the 

then available market, and shall from time to time thereafter construct such portion of the balance of such development as the Commission may direct, so as to supply adequately the reasonable market demands until such development shall have been completed. 

The periods for the commencement of construction may be extended for not more than 8 additional years, and the period for the 

completion of construction carried on in good faith and with reasonable diligence may be extended by the Commission when not incompatible with the public interests. In case the licensee shall not 

commence actual construction of the project works, or of any specified part thereof, within the time prescribed in the license or as extended by the commission, then, after due notice given, the license 

shall, as to such project works or part thereof, be terminated upon 

written order of the Commission. In case the construction of the 

project works, or of any specified part thereof, have been begun but 

not completed within the time prescribed in the license, or as extended by the commission, then the Attorney General, upon the request of the Commission, shall institute proceedings in equity in 

the district court of the United States for the district in which any 

part of the project is situated for the revocation of said license, the 

sale of the works constructed, and such other equitable relief as the 

case may demand, as provided for in section 26 hereof.

ø16 U.S.C. 806¿

SEC. 14. (a) Upon not less than two years’ notice in writing 

from the Commission the United States shall have the right upon 

or after the expiration of any license to take over and thereafter 

to maintain and operate any project or projects as defined in section 3 hereof, and covered in whole or in part by the license, or the 

right to take over upon mutual agreement with the licensee, all 

property owned and held by the licensee then valuable and serviceable in the development, transmission, or distribution of power and 

which is then dependent for its usefulness upon the continuance of 

the license, together with any lock or locks or other aids to navigation constructed at the expense of the licensee, upon the condition 

that before taking possession it shall pay the net investment of the 

licensee in the project or projects taken, not to exceed the fair value 

of the property taken, plus such reasonable damages, if any, to 

property of the licensee valuable, serviceable, and dependent as 

above set forth but not taken, as may be caused by the severance 

therefrom of property taken, and shall assume all contracts entered 

into by the licensee with the approval of the Commission. The net 

investment of the licensee in the project or projects so taken and 

the amount of such severance damages, if any, shall be determined 

by the Commission after notice and opportunity for hearing. Such 

net investment shall not include or be affected by the value of any 


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8So in original. Probably should be ‘‘it’’.

lands, rights-of-way, or other property of the United States licensed 

by the Commission under this Act, by the license or by good will, 

going value, or prospective revenues; nor shall the values allowed 

for water rights, rights-of-way, lands, or interest in lands be in excess of the actual reasonable cost thereof at the time of acquisition 

by the licensee: Provided, That the right of the United States or 

any State or municipality to take over, maintain, and operate any 

project licensed under this Act at any time by condemnation proceedings upon payment of just compensation is hereby expressly reserved. 

(b) In any relicensing proceeding before the Commission any 

Federal department or agency may timely recommend, pursuant to 

such rules as the Commission shall prescribe, that the United 

States exercise its right to take over any project or projects. Thereafter, the Commission, if its 8 does not itself recommend such action 

pursuant to the provisions of section 7(c) of this part, shall upon 

motion of such department or agency stay the effective date of any 

order issuing a license, except an order issuing an annual license 

in accordance with the proviso of section 15(a), for two years after 

the date of issuance of such order, after which period the stay shall 

terminate, unless terminated earlier upon motion of the department or agency requesting the stay or by action of Congress. The 

Commission shall notify the Congress of any stay granted pursuant 

to this subsection. 

ø16 U.S.C. 807¿

SEC. 15. (a)(1) That if the United States does not, at the expiration of the existing license, exercise its right to take over, maintain, and operate any project or projects of the licensee, as provided 

in section 14 hereof, the commission is authorized to issue a new 

license to the existing licensee upon such terms and conditions as 

may be authorized or required under the then existing laws and 

regulations, or to issue a new license under said terms and conditions to a new licensee, which license may cover any project or 

projects covered by the existing license, and shall be issued on the 

condition that the new licensee shall, before taking possession of 

such project or projects, pay such amount, and assume such contracts as the United States is required to do, in the manner specified in Section 14 hereof: Provided, That in the event the United 

States does not exercise the right to take over or does not issue a 

license to a new licensee, or issue a new license to the existing licensee, upon reasonable terms, then the commission shall issue 

from year to year an annual license to the then licensee under the 

terms and conditions of the existing license until the property is 

taken over or a new license is issued as aforesaid. 

(2) Any new license issued under this section shall be issued 

to the applicant having the final proposal which the Commission 

determines is best adapted to serve the public interest, except that 

in making this determination the Commission shall ensure that insignificant differences with regard to subparagraphs (A) through 

(G) of this paragraph between competing applications are not determinative and shall not result in the transfer of a project. In 


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making a determination under this section (whether or not more 

than one application is submitted for the project), the Commission 

shall, in addition to the requirements of section 10 of this Part, 

consider (and explain such consideration in writing) each of the following: 

(A) The plans and abilities of the applicant to comply with 

(i) the articles, terms, and conditions of any license issued to 

it and (ii) other applicable provisions of this Part. 

(B) The plans of the applicant to manage, operate, and 

maintain the project safely. 

(C) The plans and abilities of the applicant to operate and 

maintain the project in a manner most likely to provide efficient and reliable electric service. 

(D) The need of the applicant over the short and long term 

for the electricity generated by the project or projects to serve 

its customers, including, among other relevant considerations, 

the reasonable costs and reasonable availability of alternative 

sources of power, taking into consideration conservation and 

other relevant factors and taking into consideration the effect 

on the provider (including its customers) of the alternative 

source of power, the effect on the applicant’s operating and 

load characteristics, the effect on communities served or to be 

served by the project, and in the case of an applicant using 

power for the applicant’s own industrial facility and related operations, the effect on the operation and efficiency of such facility or related operations, its workers, and the related community. In the case of an applicant that is an Indian tribe applying for a license for a project located on the tribal reservation, 

a statement of the need of such tribe for electricity generated 

by the project to foster the purposes of the reservation may be 

included. 

(E) The existing and planned transmission services of the 

applicant, taking into consideration system reliability, costs, 

and other applicable economic and technical factors. 

(F) Whether the plans of the applicant will be achieved, to 

the greatest extent possible, in a cost effective manner. 

(G) Such other factors as the Commission may deem relevant, except that the terms and conditions in the license for 

the protection, mitigation, or enhancement of fish and wildlife 

resources affected by the development, operation, and management of the project shall be determined in accordance with section 10, and the plans of an applicant concerning fish and wildlife shall not be subject to a comparative evaluation under this 

subsection. 

(3) In the case of an application by the existing licensee, the 

Commission shall also take into consideration each of the following: 

(A) The existing licensee’s record of compliance with the 

terms and conditions of the existing license. 

(B) The actions taken by the existing licensee related to 

the project which affect the public. 

(b)(1) Each existing licensee shall notify the Commission 

whether the licensee intends to file an application for a new license 

or not. Such notice shall be submitted at least 5 years before the 

expiration of the existing license. 


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(2) At the time notice is provided under paragraph (1), the existing licensee shall make each of the following reasonably available to the public for inspection at the offices of such licensee: current maps, drawings, data, and such other information as the Commission shall, by rule, require regarding the construction and operation of the license project. Such information shall include, to the 

greatest extent practicable pertinent energy conservation, recreation, fish and wildlife, and other environmental information. Copies of the information shall be made available at reasonable costs 

of reproduction. Within 180 days after the enactment of the Electric Consumers Protection Act of 1986, the Commission shall promulgate regulations regarding the information to be provided 

under this paragraph. 

(3) Promptly following receipt of notice under paragraph (1), 

the Commission shall provide public notice of whether an existing 

licensee intends to file or not to file an application for a new license. The Commission shall also promptly notify the National Marine Fisheries Service and the United States Fish and Wildlife 

Service, and the appropriate State fish and wildlife agencies. 

(4) The Commission shall require the applicant to identify any 

Federal or Indian lands included in the project boundary, together 

with a statement of the annual fees paid as required by this Part 

for such lands, and to provide such additional information as the 

Commission deems appropriate to carry out the Commission’s responsibilities under this section. 

(c)(1) Each application for a new license pursuant to this section shall be filed with the Commission at least 24 months before 

the expiration of the term of the existing license. Each applicant 

shall consult with the fish and wildlife agencies referred to in subsection (b) and, as appropriate, conduct studies with such agencies. 

Within 60 days after the statutory deadline for the submission of 

applications, the Commission shall issue a notice establishing expeditious procedures for relicensing and a deadline for submission of 

final amendments, if any, to the application. 

(2) The time periods specified in this subsection and in subsection (b) shall be adjusted, in a manner that achieves the objectives of this section, by the Commission by rule or order with respect to existing licensees who, by reason of the expiration dates 

of their licenses, are unable to comply with a specified time period. 

(d)(1) In evaluating applications for new licenses pursuant to 

this section, the Commission shall not consider whether an applicant has adequate transmission facilities with regard to the project. 

(2) When the Commission issues a new license (pursuant to 

this section) to an applicant which is not the existing licensee of 

the project and finds that it is not feasible for the new licensee to 

utilize the energy from such project without provision by the existing licensee of reasonable services, including transmission services, 

the Commission shall give notice to the existing licensee and the 

new licensee to immediately enter into negotiations for such services and the costs demonstrated by the existing licensee as being 

related to the provision of such services. It is the intent of the Congress that such negotiations be carried out in good faith and that 

a timely agreement be reached between the parties in order to facilitate the transfer of the license by the date established when the 


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Commission issued the new license. If such parties do not notify 

the Commission that within the time established by the Commission in such notice (and if appropriate, in the judgment of the Commission, one 45-day extension thereof), a mutually satisfactory arrangement for such services that is consistent with the provisions 

of this Act has been executed, the Commission shall order the existing licensee to file (pursuant to section 205 of this Act) with the 

Commission a tariff, subject to refund, ensuring such services beginning on the date of transfer of the project and including just and 

reasonable rates and reasonable terms and conditions. After notice 

and opportunity for a hearing, the Commission shall issue a final 

order adopting or modifying such tariff for such services at just and 

reasonable rates in accordance with section 205 of this Act and in 

accordance with reasonable terms and conditions. The Commission, 

in issuing such order, shall ensure the services necessary for the 

full and efficient utilization and benefits for the license term of the 

electric energy from the project by the new licensee in accordance 

with the license and this Part, except that in issuing such order the 

Commission—

(A) shall not compel the existing licensee to enlarge generating facilities, transmit electric energy other than to the distribution system (providing service to customers) of the new licensee identified as of the date one day preceding the date of 

license award, or require the acquisition of new facilities, including the upgrading of existing facilities other than any reasonable enhancement or improvement of existing facilities controlled by the existing licensee (including any acquisition related to such enhancement or improvement) necessary to carry 

out the purposes of this paragraph; 

(B) shall not adversely affect the continuity and reliability 

of service to the customers of the existing licensee; 

(C) shall not adversely affect the operational integrity of 

the transmission and electric systems of the existing licensee; 

(D) shall not cause any reasonably quantifiable increase in 

the jurisdictional rates of the existing licensee; and 

(E) shall not order any entity other than the existing licensee to provide transmission or other services. 

Such order shall be for such period as the Commission deems appropriate, not to exceed the term of the license. At any time, the 

Commission, upon its own motion or upon a petition by the existing 

or new licensee and after notice and opportunity for a hearing, may 

modify, extend, or terminate such order. 

(e) Except for an annual license, any license issued by the 

Commission under this section shall be for a term which the Commission determines to be in the public interest but not less than 

30 years, nor more than 50 years, from the date on which the license is issued. 

(f) In issuing any license under this section except an annual 

license, the Commission, on its own motion or upon application of 

any licensee, person, State, municipality, or State commission, 

after notice to each State commission and licensee affected, and 

after opportunity for hearing, whenever it finds that in conformity 

with a comprehensive plan for improving or developing a waterway 

or waterways for beneficial public uses all or part of any licensed 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 16 FEDERAL POWER ACT 22

project should no longer be used or adapted for use for power purposes, may license all or part of the project works for nonpower 

use. A license for nonpower use shall be issued to a new licensee 

only on the condition that the new licensee shall, before taking possession of the facilities encompassed thereunder, pay such amount 

and assume such contracts as the United States is required to do, 

in the manner specified in section 14 hereof. Any license for 

nonpower use shall be a temporary license. Whenever, in the judgment of the Commission, a State, municipality, interstate agency, 

or another Federal agency is authorized and willing to assume regulatory supervision of the lands and facilities included under the 

nonpower license and does so, the Commission shall thereupon terminate the license. Consistent with the provisions of the Act of August 15, 1953 (67 Stat. 587; 16 U.S.C. 828–828c), every licensee for 

nonpower use shall keep such accounts and file such annual and 

other periodic or special reports concerning the removal, alteration, 

nonpower use, or other disposition of any project works or parts 

thereof covered by the nonpower use license as the Commission 

may by rules and regulations or order prescribe as necessary or appropriate.

ø16 U.S.C. 808¿

SEC. 16. That when in the opinion of the President of the 

United States, evidenced by a written order addressed to the holder 

of any license hereunder, the safety of the United States demands 

it, the United States shall have the right to enter upon and take 

possession of any project, or part thereof, constructed, maintained, 

or operated under said license, for the purpose of manufacturing nitrates, explosives, or munitions of war, or for any other purpose involving the safety of the United States, to retain possession, management, and control thereof for such length of time as may appear 

to the President to be necessary to accomplish said purposes, and 

then to restore possession and control to the party or parties entitled thereto; and in the event that the United States shall exercise 

such right it shall pay to the party or parties entitled thereto just 

and fair compensation for the use of said property as may be fixed 

by the Commission upon the basis of a reasonable profit in time 

of peace, and the cost of restoring said property to as good condition as existed at the time of the taking over thereof, less the reasonable value of any improvements that may be made thereto by 

the United States and which are valuable and serviceable to the licensee.

ø16 U.S.C. 809¿

SEC. 17. (a) All proceeds from any Indian reservation shall be 

placed to the credit of the Indians of such reservation. All other 

charges arising from licenses hereunder, except charges fixed by 

the Commission for the purpose of reimbursing the United States 

for the cost of administration of this Part, shall be paid into the 

Treasury of the United States, subject to the following distribution: 

121⁄2 per centum thereof is hereby appropriated to be paid into the 

Treasury of the United States and credited to ‘‘Miscellaneous receipts’’; 50 per centum of the charges arising from licenses hereunder for the occupancy and use of public lands and national forests shall be paid into, reserved, and appropriated as a part of the 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
23 Sec. 18 FEDERAL POWER ACT 

reclamation fund created by the Act of Congress known as the Reclamation Act, approved June 17, 1902; and 371⁄2 per centum of the 

charges arising from licenses hereunder for the occupancy and use 

of national forests and public lands from development within the 

boundaries of any State shall be paid by the Secretary of the Treasury to such State; and 50 per centum of the charges arising from 

all other licenses hereunder is hereby reserved and appropriated as 

a special fund in the Treasury to be expended under the direction 

of the Secretary of the Army in the maintenance and operation of 

dams and other navigation structures owned by the United States 

or in the construction, maintenance, or operation of headwater or 

other improvements of navigable waters of the United States. The 

proceeds of charges made by the Commission for the purpose of reimbursing the United States for the costs of the administration of 

this Part shall be paid into the Treasury of the United States and 

credited to miscellaneous receipts. 

(b) In case of delinquency on the part of any licensee in the 

payment of annual charges a penalty of 5 per centum of the total 

amount so delinquent may be added to the total charges which 

shall apply for the first month or part of month so delinquent with 

an additional penalty of 3 per centum for each subsequent month 

until the total of the charges and penalties are paid or until the 

license is canceled and the charges and penalties satisfied in accordance with law.

ø16 U.S.C. 810¿

SEC. 18. The Commission shall require the construction, maintenance, and operation by a licensee at its own expense of such 

lights and signals as may be directed by the Secretary of the Department in which the Coast Guard is operating, and such 

fishways as may be prescribed by the Secretary of Commerce. The 

license applicant and any party to the proceeding shall be entitled 

to a determination on the record, after opportunity for an agency 

trial-type hearing of no more than 90 days, on any disputed issues 

of material fact with respect to such fishways. All disputed issues 

of material fact raised by any party shall be determined in a single 

trial-type hearing to be conducted by the relevant resource agency 

in accordance with the regulations promulgated under this subsection and within the time frame established by the Commission 

for each license proceeding. Within 90 days of the date of enactment of the Energy Policy Act of 2005, the Secretaries of the Interior, Commerce, and Agriculture shall establish jointly, by rule, the 

procedures for such expedited trial-type hearing, including the opportunity to undertake discovery and cross-examine witnesses, in 

consultation with the Federal Energy Regulatory Commission. The 

operation of any navigation facilities which may be constructed as 

a part of or in connection with any dam or diversion structure built 

under the provisions of this Act, whether at the expense of a licensee hereunder or of the United States, shall at all times be controlled by such reasonable rules and regulations in the interest of 

navigation, including the control of the level of the pool caused by 

such dam or diversion structure as may be made from time to time 

by the Secretary of the Army, and for willful failure to comply with 

any such rule or regulation such licensee shall be deemed guilty of 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 19 FEDERAL POWER ACT 24

a misdemeanor, and upon conviction thereof shall be punished as 

provided in section 316 hereof.

ø16 U.S.C. 811¿

SEC. 19. That as a condition of the license, every licensee hereunder which is a public-service corporation, or a person, association, or corporation owning or operating any project and developing, transmitting, or distributing power for sale or use in public 

service, shall abide by such reasonable regulation of the services to 

be rendered to customers or consumers of power, and of rates and 

charges of payment therefor, as may from time to time be prescribed by any duly constituted agency of the State in which the 

service is rendered or the rate charged. That in case of the development, transmission, or distribution, or use in public service of 

power by any licensee hereunder or by its customer engaged in 

public service within a State which has not authorized and empowered a commission or other agency or agencies within said State to 

regulate and control the services to be rendered by such licensee 

or by its customer engaged in public service, or the rates and 

charges of payment therefor, or the amount or character of securities to be issued by any of said parties, it is agreed as a condition 

of such license that jurisdiction is hereby conferred upon the commission, upon complaint of any person aggrieved or upon its own 

initiative, to exercise such regulation and control until such time 

as the State shall have provided a commission or other authority 

for such regulation and control: Provided, That the jurisdiction of 

the commission shall cease and determine as to each specific matter of regulation and control prescribed in this section as soon as 

the State shall have provided a commission or other authority for 

the regulation and control of that specific matter.

ø16 U.S.C. 812¿

SEC. 20. That when said power or any part thereof shall enter 

into interstate or foreign commerce the rates charged and the service rendered by any such licensee, or by any subsidiary corporation, 

the stock of which is owned or controlled directly or indirectly by 

such licensee, or by any person, corporation, or association purchasing power from such licensee for sale and distribution or use 

in public service shall be reasonable, nondiscriminatory and just to 

the customer and all unreasonable discriminatory and unjust rates 

or services are hereby prohibited and declared to be unlawful; and 

whenever any of the States directly concerned has not provided a 

commission or other authority to enforce the requirements of this 

section within such State or to regulate and control the amount 

and character of securities to be issued by any of such parties or 

such States are unable to agree through their properly constituted 

authorities on the services to be rendered or on the rates or 

charges of payment therefor, or on the amount or character of securities to be issued by any of said parties, jurisdiction is hereby conferred upon the commission, upon complaint of any person aggrieved, upon the request of any State concerned, or upon its own 

initiative to enforce the provisions of this section, to regulate and 

control so much of the services rendered, and of the rates and 

charges of payment therefor as constitute interstate or foreign commerce and to regulate the issuance of securities by the parties inVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00024 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
25 Sec. 21 FEDERAL POWER ACT 

9So in law. Probably should be ‘‘: Provided further,’’. See section 1701(d) of P.L. 102–486 (106 

Stat. 3009).

cluded within this section, and securities issued by the licensee 

subject to such regulations shall be allowed only for the bona fide 

purpose of financing and conducting the business of such licensee. 

The administration of the provisions of this section, so far as 

applicable, shall be according to the procedure and practice in fixing and regulating the rates, charges, and practices of railroad 

companies as provided in the Act to regulate commerce, approved 

February 4, 1887, as amended, and that the parties subject to such 

regulation shall have the same rights of hearing, defense, and review as said companies in such cases. 

In any valuation of the property of any licensee hereunder for 

purposes of rate making, no value shall be claimed by the licensee 

or allowed by the commission for any project or projects under license in excess of the value or values prescribed in section 14 hereof for the purposes of purchase by the United States, but there 

shall be included the cost to such licensee of the construction of the 

lock or locks or other aids of navigation and all other capital expenditures required by the United States, and no value shall be 

claimed or allowed for the rights granted by the commission or by 

this Act.

ø16 U.S.C. 813¿

SEC. 21. That when any licensee can not acquire by contract 

or pledges an unimproved dam site or the right to use or damage 

the lands or property of others necessary to the construction, maintenance, or operation of any dam, reservoir, diversion structure, or 

the works appurtenant or accessory thereto, in conjunction with an 

improvement which in the judgment of the commission is desirable 

and justified in the public interest for the purpose of improving or 

developing a waterway or waterways for the use or benefit of interstate or foreign commerce, it may acquire the same by the exercise 

of the right of eminent domain in the district court of the United 

States for the district in which such land or other property may be 

located, or in the State courts. The practice and procedure in any 

action or proceedings for that purpose in the district court of the 

United States shall conform as nearly as may be with the practice 

and procedure in similar action or proceeding in the courts of the 

State where the property is situated: Provided, That United States 

district courts shall only have jurisdiction of cases when the 

amount claimed by the owner of the property to be condemned exceeds $3,000 9Provided further, That no licensee may use the right 

of eminent domain under this section to acquire any lands or other 

property that, prior to the date of enactment of the Energy Policy 

Act of 1992, were owned by a State or political subdivision thereof 

and were part of or included within any public park, recreation 

area or wildlife refuge established under State or local law. In the 

case of lands or other property that are owned by a State or political subdivision and are part of or included within a public park, 

recreation area or wildlife refuge established under State or local 

law on or after the date of enactment of such Act, no licensee may 

use the right of eminent domain under this section to acquire such 

lands or property unless there has been a public hearing held in 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 22 FEDERAL POWER ACT 26

the affected community and a finding by the Commission, after due 

consideration of expressed public views and the recommendations 

of the State or political subdivision that owns the lands or property, that the license will not interfere or be inconsistent with the 

purposes for which such lands or property are owned. 

ø16 U.S.C. 814¿

SEC. 22. That whenever the public interest requires or justifies 

the execution by the licensee of contracts for the sale and delivery 

of power for periods extending beyond the date of termination of 

the license, such contracts may be entered into upon the joint approval of the commission and of the public-service commission or 

other similar authority in the State in which the sale or delivery 

of power is made, or if sold or delivered in a State which has no 

such public-service commission, then upon the approval of the commission, and thereafter, in the event of failure to issue a new license to the original licensee at the termination of the license, the 

United States or the new licensee, as the case may be shall assume 

and fulfill all such contracts.

ø16 U.S.C. 815¿

SEC. 23. (a) The provisions of this Part shall not be construed 

as affecting any permit or valid existing right-of-way heretofore 

granted or as confirming or otherwise affecting any claim, or as affecting any authority heretofore given pursuant to law, but any 

person, association, corporation, State, or municipality holding or 

possessing such permit, right-of-way, or authority may apply for a 

license hereunder, and upon such application the Commission may 

issue to any such applicant a license in accordance with the provisions of this Part and in such case the provisions of this Act shall 

apply to such applicant as a licensee hereunder: Provided, That 

when application is made for a license under this section for a 

project or projects already constructed the fair value of said project 

or projects determined as provided in this section, shall for the purposes of this Part and of said license be deemed to be the amount 

to be allowed as the net investment of the applicant in such project 

or projects as of the date of such license, or as of the date of such 

determination, if license has not been issued. Such fair value shall 

be determined by the Commission after notice and opportunity for 

hearing.

ø16 U.S.C. 816¿

(b)(1) It shall be unlawful for any person, State, or municipality, for the purpose of developing electric power, to construct, operate, or maintain any dam, water conduit, reservoir, power house, 

or other works incidental thereto across, along, or in any of the 

navigable waters of the United States, or upon any part of the public lands or reservations of the United States (including the Territories), or utilize the surplus water or water power from any Government dam, except under and in accordance with the terms of a 

permit or valid existing right-of-way granted prior to June 10, 

1920, or a license granted pursuant to this Act. Any person, association, corporation, State or municipality intending to construct a 

dam or other project works across, along, over, or in any stream or 

part thereof, other than those defined herein as navigable waters, 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
27 Sec. 24 FEDERAL POWER ACT 

and over which Congress has jurisdiction under its authority to 

regulate commerce with foreign nations and among the several 

States shall before such construction file declaration of such intention with the Commission, whereupon the Commission shall cause 

immediate investigation of such proposed construction to be made, 

and if upon investigation it shall find that the interests of interstate or foreign commerce would be affected by such proposed construction such person, association, corporation, State, or municipality shall not construct, maintain, or operate such dam or other 

project works until it shall have applied for and shall have received 

a license under the provisions of this Act. If the Commission shall 

not so find, and if no public lands or reservations are affected, permission is hereby granted to construct such dam or other project 

works in such stream upon compliance with State laws. 

(2) No person may commence any significant modification of 

any project licensed under, or exempted from, this Act unless such 

modification is authorized in accordance with terms and conditions 

of such license or exemption and the applicable requirements of 

this Part. As used in this paragraph, the term ‘‘commence’’ refers 

to the beginning of physical on-site activity other than surveys or 

testing.

ø16 U.S.C. 817¿

SEC. 24. Any lands of the United States included in any proposed project under the provisions of this Part shall from the date 

of filing of application therefor be reserved from entry, location, or 

other disposal under the laws of the United States until otherwise 

directed by the Commission or by Congress. Notice that such application has been made, together with the date of filing thereof and 

a description of the lands of the United States affected thereby, 

shall be filed in the local land office for the district in which such 

lands are located. Whenever the Commission shall determine that 

the value of any lands of the United States so applied for, or heretofore or hereafter reserved or classified as power sites, will not be 

injured or destroyed for the purposes of power development by location, entry, or selection under the public land laws, the Secretary 

of the Interior, upon notice of such determination, shall declare 

such lands open to location, entry, or selection, for such purpose or 

purposes and under such restrictions as the Commission may determine, subject to and with a reservation of the right of the 

United States or its permittees or licensees to enter upon, occupy, 

and use any part or all of said lands necessary, in the judgment 

of the Commission, for the purposes of this Part, which right shall 

be expressly reserved in every patent issued for such lands; and no 

claim or right to compensation shall accrue from the occupation or 

use of any of said lands for said purposes. The United States or 

any licensee for any such lands hereunder may enter thereupon for 

the purposes of this Part upon payment of any damages to crops, 

buildings, or other improvements caused thereby to the owner 

thereof, or upon giving a good and sufficient bond to the United 

States for the use and benefit of the owner to secure the payment 

of such damages as may be determined and fixed in an action 

brought upon the bond in a court of competent jurisdiction, said 

bond to be in the form prescribed by the Commission: Provided, 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 25 FEDERAL POWER ACT 28

That locations, entries, selection, or filings heretofore made for 

lands reserved as water-power sites, or in connection with waterpower development, or electrical transmission may proceed to approval or patent under and subject to the limitations and conditions in this section continued: Provided further, That before any 

lands applied for, or heretofore or hereafter reserved, or classified 

as power sites, are declared open to location, entry, or selection by 

the Secretary of the Interior, notice of intention to make such declaration shall be given to the Governor of the State within which 

such lands are located, and such State shall have ninety days from 

the date of such notice within which to file, under any statute or 

regulation applicable thereto, an application for the reservation to 

the State, or any political subdivision thereof, of any lands required 

as a right-of-way for a public highway or as a source of materials 

for the construction and maintenance of such highways, and a copy 

of such application shall be filed with the Federal Power Commission; and any location, entry, or selection of such lands, or subsequent patent thereof, shall be subject to any rights granted the 

State pursuant to such application.

ø16 U.S.C. 818¿

SEC. 25. øRepealed August 26, 1935.¿

SEC. 26. That the Attorney General may, on request of the 

commission or of the Secretary of the Army, institute proceedings 

in equity in the district court of the United States in the district 

in which any project or part thereof is situated for the purpose of 

revoking for violation of its terms any permit or license issued 

hereunder, or for the purpose of remedying or correcting by injunction, mandamus, or other process any act of commission, or omission in violation of the provisions of this Act or of any lawful regulation or order promulgated hereunder. The district courts shall 

have jurisdiction over all of the above-mentioned proceedings and 

shall have power to issue and execute all necessary process and to 

make and enforce all writs, orders, and decrees to compel compliance with the lawful orders and regulations of the commission and 

of the Secretary of the Army, and to compel the performance of any 

condition imposed under the provisions of this Act. In the event a 

decree revoking a license is entered, the court is empowered to sell 

the whole or any part of the project or projects under license, to 

wind up the business of such licensee conducted in connection with 

such project or projects, to distribute the proceeds to the parties entitled to the same, and to make and enforce such further orders 

and decrees as equity and justice may require. At such sale or sales 

the vendee shall take the rights and privileges belonging to the licensee and shall perform the duties of such licensee and assume 

all outstanding obligations and liabilities of the licensee which the 

court may deem equitable in the premises; and at such sale or 

sales the United States may become a purchaser, but it shall not 

be required to pay a greater amount than it would be required to 

pay under the provisions of section 14 hereof at the termination of 

the license.

ø16 U.S.C. 820¿

SEC. 27. That nothing herein contained shall be construed as 

affecting or intending to affect or in any way to interfere with the 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
29 Sec. 30 FEDERAL POWER ACT 

laws of the respective States relating to the control, appropriation, 

use, or distribution of water used in irrigation or for municipal or 

other uses, or any vested right acquired therein.

ø16 U.S.C. 821¿

SEC. 28. That the right to alter, amend, or repeal this Act is 

hereby expressly reserved; but no such alteration, amendment, or 

repeal shall affect any license theretofore issued under the provisions of this Act, or the rights of any licensee thereunder.

ø16 U.S.C. 822¿

SEC. 29. That all Acts or parts of Acts inconsistent with this 

Act are hereby repealed: Provided, That nothing herein contained 

shall be held or construed to modify or repeal any of the provisions 

of the Act of Congress approved December 19, 1913, granting certain rights-of-way to the city and county of San Francisco, in the 

State of California: Provided further, That section 18 of an Act 

making appropriations for the construction, repair, and preservation of certain public works on rivers and harbors, and for other 

purposes, approved August 8, 1917, is hereby repealed.

ø16 U.S.C. 823¿

SEC. 30. (a)(1) A qualifying conduit hydropower facility shall 

not be required to be licensed under this part. 

(2)(A) Any person, State, or municipality proposing to construct 

a qualifying conduit hydropower facility shall file with the Commission a notice of intent to construct such facility. The notice shall 

include sufficient information to demonstrate that the facility 

meets the qualifying criteria. 

(B) Not later than 15 days after receipt of a notice of intent 

filed under subparagraph (A), the Commission shall—

(i) make an initial determination as to whether the facility 

meets the qualifying criteria; and 

(ii) if the Commission makes an initial determination, pursuant to clause (i), that the facility meets the qualifying criteria, publish public notice of the notice of intent filed under 

subparagraph (A). 

(C) If, not later than 30 days after the date of publication of 

the public notice described in subparagraph (B)(ii)—

(i) an entity contests whether the facility meets the qualifying criteria, the Commission shall promptly issue a written 

determination as to whether the facility meets such criteria; or 

(ii) no entity contests whether the facility meets the qualifying criteria, the facility shall be deemed to meet such criteria. 

(3) For purposes of this section: 

(A) The term ‘‘conduit’’ means any tunnel, canal, pipeline, 

aqueduct, flume, ditch, or similar manmade water conveyance 

that is operated for the distribution of water for agricultural, 

municipal, or industrial consumption and not primarily for the 

generation of electricity. 

(B) The term ‘‘qualifying conduit hydropower facility’’ 

means a facility (not including any dam or other impoundment) that is determined or deemed under paragraph (2)(C) to 

meet the qualifying criteria. 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 30 FEDERAL POWER ACT 30

10So in original. Probably should be followed by a comma. 

(C) The term ‘‘qualifying criteria’’ means, with respect to 

a facility—

(i) the facility is constructed, operated, or maintained 

for the generation of electric power and uses for such generation only the hydroelectric potential of a non-federally 

owned conduit; 

(ii) the facility has an installed capacity that does not 

exceed 40 megawatts; and 

(iii) on or before the date of enactment of the Hydropower Regulatory Efficiency Act of 2013, the facility is not 

licensed under, or exempted from the license requirements 

contained in, this part. 

(b) Subject to subsection (c), the Commission may grant an exemption in whole or in part from the requirements of this part, including any license requirements contained in this part, to any facility (not including any dam or other impoundment) constructed, 

operated, or maintained for the generation of electric power which 

the Commission determines, by rule or order—

(1) utilizes for such generation only the hydroelectric potential of a conduit; and 

(2) has an installed capacity that does not exceed 40 

megawatts. 

(c) In making the determination under subsection (b) the Commission shall consult with the United States Fish and Wildlife 

Service and the State agency exercising administration over the 

fish and wildlife resources of the State in which the facility is or 

will be located, in the manner provided by the Fish and Wildlife 

Coordination Act (16 U.S.C. 661, et seq.), and shall include in any 

such exemption—

(1) such terms and conditions as the Fish and Wildlife 

Service 10 National Marine Fisheries Service 10 and the State 

agency each determine are appropriate to prevent loss of, or 

damage to, such resources and to otherwise carry out the purposes of such Act, and 

(2) such terms and conditions as the Commission deems 

appropriate to insure that such facility continues to comply 

with the provisions of this section and terms and conditions included in any such exemption. 

(d) Any violation of a term or condition of any exemption 

granted under subsection (b) shall be treated as a violation of a 

rule or order of the Commission under this Act. 

(e) The Commission, in addition to the requirements of section 

10(e), shall establish fees which shall be paid by an applicant for 

a license or exemption for a project that is required to meet terms 

and conditions set by fish and wildlife agencies under subsection 

(c). Such fees shall be adequate to reimburse the fish and wildlife 

agencies referred to in subsection (c) for any reasonable costs incurred in connection with any studies or other reviews carried out 

by such agencies for purposes of compliance with this section. The 

fees shall, subject to annual appropriations Acts, be transferred to 

such agencies by the Commission for use solely for purposes of carrying out such studies and shall remain available until expended.


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11So in original. Probably should not be capitalized. 

ø16 U.S.C. 823a¿

SEC. 31. ENFORCEMENT. 

(a) MONITORING AND INVESTIGATION.—The Commission shall 

monitor and investigate compliance with each license and permit 

issued under this Part and with each exemption granted from any 

requirement of this Part. The Commission shall conduct such investigations as may be necessary and proper in accordance with 

this Act. After notice and opportunity for public hearing, the Commission may issue such orders as necessary to require compliance 

with the terms and conditions of licenses and permits issued under 

this Part and with the terms and conditions of exemptions granted 

from any requirement of this Part. 

(b) REVOCATION ORDERS.—After notice and opportunity for an 

evidentiary hearing, the Commission may also issue an order revoking any license issued under this Part or any exemption granted from any requirement of this Part where any licensee or 

exemptee is found by the Commission: 

(1) to have knowingly violated a final order issued under 

subsection (a) after completion of judicial review (or the opportunity for judicial review); and 

(2) to have been given reasonable time to comply fully with 

such order prior to commencing any revocation proceeding. 

In any such proceeding, the order issued under subsection (a) shall 

be subject to de novo review by the Commission. No order shall be 

issued under this subsection until after the Commission has taken 

into the consideration the nature and seriousness of the violation 

and the efforts of the licensee to remedy the violation. 

(c) CIVIL PENALTY.—Any licensee, permittee, or exemptee who 

violates or fails or refuses to comply with any rule or regulation 

under this Part, 11 any term, or condition of a license, permit, or 

exemption under this Part, 11 or any order issued under subsection 

(a) shall be subject to a civil penalty in an amount not to exceed 

$10,000 for each day that such violation or failure or refusal continues. Such penalty shall be assessed by the Commission after notice and opportunity for public hearing. In determining the amount 

of a proposed penalty, the Commission shall take into consideration 

the nature and seriousness of the violation, failure or refusal and 

the efforts of the licensee to remedy the violation, failure, or refusal 

in a timely manner. No civil penalty shall be assessed where revocation is ordered. 

(d) ASSESSMENT.—(1) Before issuing an order assessing a civil 

penalty against any person under this section, the Commission 

shall provide to such person notice of the proposed penalty. Such 

notice shall, except in the case of a violation of a final order issued 

under subsection (a), inform such person of his opportunity to elect 

in writing within 30 days after the date of receipt of such notice 

to have the procedures of paragraph (3) (in lieu of those of paragraph (2)) apply with respect to such assessment. 

(2)(A) In the case of the violation of a final order issued under 

subsection (a), or unless an election is made within 30 calendar 

days after receipt of notice under paragraph (1) to have paragraph 


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12So in original. Probably should not be capitalized. 

(3) apply with respect to such penalty, the Commission shall assess 

the penalty, by order, after a determination of violation has been 

made on the record after an opportunity for an agency hearing pursuant to section 554 of title 5, United States Code, before an administrative law judge appointed under section 3105 of such title 

5. Such assessment order shall include the administrative law 

judge’s findings and the basis for such assessment. 

(B) Any person against whom a penalty is assessed under this 

paragraph may, within 60 calendar days after the date of the order 

of the Commission assessing such penalty, institute an action in 

the United States court of appeals for the appropriate judicial circuit for judicial review of such order in accordance with chapter 7 

of title 5, United States Code. The court shall have jurisdiction to 

enter a judgment affirming, modifying, or setting aside in whole or 

in Part, 12 the order of the Commission, or the court may remand 

the proceeding to the Commission for such further action as the 

court may direct. 

(3)(A) In the case of any civil penalty with respect to which the 

procedures of this paragraph have been elected, the Commission 

shall promptly assess such penalty, by order, after the date of the 

receipt of the notice under paragraph (1) of the proposed penalty. 

(B) If the civil penalty has not been paid within 60 calendar 

days after the assessment order has been made under subparagraph (A), the Commission shall institute an action in the appropriate district court of the United States for an order affirming the 

assessment of the civil penalty. The court shall have authority to 

review de novo the law and the facts involved, and shall have jurisdiction to enter a judgment enforcing, modifying, and enforcing as 

so modified, or setting aside in whole or in Part, such assessment. 

(C) Any election to have this paragraph apply may not be revoked except with the consent of the Commission. 

(4) The Commission may compromise, modify, or remit, with or 

without conditions, any civil penalty which may be imposed under 

this subsection, taking into consideration the nature and seriousness of the violation and the efforts of the licensee to remedy the 

violation in a timely manner at any time prior to a final decision 

by the court of appeals under paragraph (2) or by the district court 

under paragraph (3). 

(5) If any person fails to pay an assessment of a civil penalty 

after it has become a final and unappealable order under paragraph (2), or after the appropriate district court has entered final 

judgment in favor of the Commission under paragraph (3), the 

Commission shall institute an action to recover the amount of such 

penalty in any appropriate district court of the United States. In 

such action, the validity and appropriateness of such final assessment order or judgment shall not be subject to review. 

(6)(A) Notwithstanding the provisions of title 28, United States 

Code, or of this Act, the Commission may be represented by the 

general counsel of the Commission (or any attorney or attorneys 

within the Commission designated by the Chairman) who shall supervise, conduct, and argue any civil litigation to which paragraph 

(3) of this subsection applies (including any related collection action 


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33 Sec. 32 FEDERAL POWER ACT 

13So in original. Probably should read ‘‘Endangered Species Act of 1973’’. 

under paragraph (5)) in a court of the United States or in any other 

court, except the Supreme Court. However, the Commission or the 

general counsel shall consult with the Attorney General concerning 

such litigation, and the Attorney General shall provide, on request, 

such assistance in the conduct of such litigation as may be appropriate. 

(B) The Commission shall be represented by the Attorney General, or the Solicitor General, as appropriate, in actions under this 

subsection, except to the extent provided in subparagraph (A) of 

this paragraph.

ø16 U.S.C. 823b¿

SEC. 32. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC 

PROJECTS. 

(a) DISCONTINUANCE OF REGULATION BY THE COMMISSION.—

Notwithstanding sections 4(e) and 23(b), the Commission shall discontinue exercising licensing and regulatory authority under this 

part over qualifying project works in the State of Alaska, effective 

on the date on which the Commission certifies that the State of 

Alaska has in place a regulatory program for water-power development that—

(1) protects the public interest, the purposes listed in paragraph (2), and the environment to the same extent provided by 

licensing and regulation by the Commission under this part 

and other applicable Federal laws, including the Endangered 

Species Act 13 (16 U.S.C. 1531 et seq.) and the Fish and Wildlife Coordination Act (16 U.S.C. 661 et seq.); 

(2) gives equal consideration to the purposes of—

(A) energy conservation; 

(B) the protection, mitigation of damage to, and enhancement of, fish and wildlife (including related spawning grounds and habitat); 

(C) the protection of recreational opportunities; 

(D) the preservation of other aspects of environmental 

quality; 

(E) the interests of Alaska Natives; and 

(F) other beneficial public uses, including irrigation, 

flood control, water supply, and navigation; and 

(3) requires, as a condition of a license for any project 

works—

(A) the construction, maintenance, and operation by a 

licensee at its own expense of such lights and signals as 

may be directed by the Secretary of the Department in 

which the Coast Guard is operating, and such fishways as 

may be prescribed by the Secretary of the Interior or the 

Secretary of Commerce, as appropriate; 

(B) the operation of any navigation facilities which 

may be constructed as part of any project to be controlled 

at all times by such reasonable rules and regulations as 

may be made by the Secretary of the Army; and 

(C) except as provided in subsection (j), conditions for 

the protection, mitigation, and enhancement of fish and 


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Sec. 32 FEDERAL POWER ACT 34

wildlife based on recommendations received pursuant to 

the Fish and Wildlife Coordination Act (16 U.S.C. 661 et 

seq.) from the National Marine Fisheries Service, the 

United States Fish and Wildlife Service, and State fish 

and wildlife agencies. 

(b) DEFINITION OF ‘‘QUALIFYING PROJECT WORKS’’.—For purposes of this section, the term ‘‘qualifying project works’’ means 

project works—

(1) that are not part of a project licensed under this part 

or exempted from licensing under this part or section 405 of 

the Public Utility Regulatory Policies Act of 1978 prior to the 

date of the enactment of this section; 

(2) for which a preliminary permit, a license application, or 

an application for an exemption from licensing has not been accepted for filing by the Commission prior to the date of the enactment of subsection (c) (unless such application is withdrawn 

at the election of the applicant); 

(3) that are part of a project that has a power production 

capacity of 5,000 kilowatts or less; 

(4) that are located entirely within the boundaries of the 

State of Alaska; and 

(5) that are not located in whole or in part on any Indian 

reservation, a conservation system unit (as defined in section 

102(4) of the Alaska National Interest Lands Conservation Act 

(16 U.S.C. 3102(4))), or segment of a river designated for study 

for addition to the Wild and Scenic Rivers System. 

(c) ELECTION OF STATE LICENSING.—In the case of nonqualifying project works that would be a qualifying project works but for 

the fact that the project has been licensed (or exempted from licensing) by the Commission prior to the enactment of this section, 

the licensee of such project may in its discretion elect to make the 

project subject to licensing and regulation by the State of Alaska 

under this section. 

(d) PROJECT WORKS ON FEDERAL LANDS.—With respect to 

projects located in whole or in part on a reservation, a conservation 

system unit, or the public lands, a State license or exemption from 

licensing shall be subject to—

(1) the approval of the Secretary having jurisdiction over 

such lands; and 

(2) such conditions as the Secretary may prescribe. 

(e) CONSULTATION WITH AFFECTED AGENCIES.—The Commission shall consult with the Secretary of the Interior, the Secretary 

of Agriculture, and the Secretary of Commerce before certifying the 

State of Alaska’s regulatory program. 

(f) APPLICATION OF FEDERAL LAWS.—Nothing in this section 

shall preempt the application of Federal environmental, natural resources, or cultural resources protection laws according to their 

terms. 

(g) OVERSIGHT BY THE COMMISSION.—The State of Alaska shall 

notify the Commission not later than 30 days after making any significant modification to its regulatory program. The Commission 

shall periodically review the State’s program to ensure compliance 

with the provisions of this section. 


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(h) RESUMPTION OF COMMISSION AUTHORITY.—Notwithstanding 

subsection (a), the Commission shall reassert its licensing and regulatory authority under this part if the Commission finds that the 

State of Alaska has not complied with one or more of the requirements of this section. 

(i) DETERMINATION BY THE COMMISSION.—(1) Upon application 

by the Governor of the State of Alaska, the Commission shall within 30 days commence a review of the State of Alaska’s regulatory 

program for water-power development to determine whether it 

complies with the requirements of subsection (a). 

(2) The Commission’s review required by paragraph (1) shall 

be completed within 1 year of initiation, and the Commission shall 

within 30 days thereafter issue a final order determining whether 

or not the State of Alaska’s regulatory program for water-power development complies with the requirements of subsection (a). 

(3) If the Commission fails to issue a final order in accordance 

with paragraph (2) the State of Alaska’s regulatory program for 

water-power development shall be deemed to be in compliance with 

subsection (a). 

(j) FISH AND WILDLIFE.—If the State of Alaska determines that 

a recommendation under subsection (a)(3)(C) is inconsistent with 

paragraphs (1) and (2) of subsection (a), the State of Alaska may 

decline to adopt all or part of the recommendations in accordance 

with the procedures established under section 10(j)(2).

ø16 U.S.C. 823c¿

SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 

(a) ALTERNATIVE CONDITIONS.—(1) Whenever any person applies for a license for any project works within any reservation of 

the United States, and the Secretary of the department under 

whose supervision such reservation falls (referred to in this subsection as the ‘‘Secretary’’) deems a condition to such license to be 

necessary under the first proviso of section 4(e), the license applicant or any other party to the license proceeding may propose an 

alternative condition. 

(2) Notwithstanding the first proviso of section 4(e), the Secretary shall accept the proposed alternative condition referred to in 

paragraph (1), and the Commission shall include in the license 

such alternative condition, if the Secretary determines, based on 

substantial evidence provided by the license applicant, any other 

party to the proceeding, or otherwise available to the Secretary, 

that such alternative condition—

(A) provides for the adequate protection and utilization of 

the reservation; and 

(B) will either, as compared to the condition initially by 

the Secretary—

(i) cost significantly less to implement; or 

(ii) result in improved operation of the project works 

for electricity production. 

(3) In making a determination under paragraph (2), the Secretary shall consider evidence provided for the record by any party 

to a licensing proceeding, or otherwise available to the Secretary, 

including any evidence provided by the Commission, on the impleVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00035 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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mentation costs or operational impacts for electricity production of 

a proposed alternative. 

(4) The Secretary concerned shall submit into the public record 

of the Commission proceeding with any condition under section 4(e) 

or alternative condition it accepts under this section, a written 

statement explaining the basis for such condition, and reason for 

not accepting any alternative condition under this section. The 

written statement must demonstrate that the Secretary gave equal 

consideration to the effects of the condition adopted and alternatives not accepted on energy supply, distribution, cost, and use; 

flood control; navigation; water supply; and air quality (in addition 

to the preservation of other aspects of environmental quality); 

based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the 

applicant and others. The Secretary shall also submit, together 

with the aforementioned written statement, all studies, data, and 

other factual information available to the Secretary and relevant to 

the Secretary’s decision. 

(5) If the Commission finds that the Secretary’s final condition 

would be inconsistent with the purposes of this part, or other applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. The Dispute Resolution Service 

shall consult with the Secretary and the Commission and issue a 

non-binding advisory within 90 days. The Secretary may accept the 

Dispute Resolution Service advisory unless the Secretary finds that 

the recommendation will not adequately protect the reservation. 

The Secretary shall submit the advisory and the Secretary’s final 

written determination into the record of the Commission’s proceeding. 

(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever the Secretary 

of the Interior or the Secretary of Commerce prescribes a fishway 

under section 18, the license applicant or any other party to the license proceeding may propose an alternative to such prescription 

to construct, maintain, or operate a fishway. 

(2) Notwithstanding section 18, the Secretary of the Interior or 

the Secretary of Commerce, as appropriate, shall accept and prescribe, and the Commission shall require, the proposed alternative 

referred to in paragraph (1), if the Secretary of the appropriate department determines, based on substantial evidence provided by 

the license applicant, any other party to the proceeding, or otherwise available to the Secretary, that such alternative—

(A) will be no less protective than the fishway initially prescribed by the Secretary; and 

(B) will either, as compared to the fishway initially prescribed by the Secretary—

(i) cost significantly less to implement; or 

(ii) result in improved operation of the project works 

for electricity production. 

(3) In making a determination under paragraph (2), the Secretary shall consider evidence provided for the record by any party 

to a licensing proceeding, or otherwise available to the Secretary, 

including any evidence provided by the Commission, on the implementation costs or operational impacts for electricity production of 

a proposed alternative. 


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(4) The Secretary concerned shall submit into the public record 

of the Commission proceeding with any prescription under section 

18 or alternative prescription it accepts under this section, a written statement explaining the basis for such prescription, and reason for not accepting any alternative prescription under this section. The written statement must demonstrate that the Secretary 

gave equal consideration to the effects of the prescription adopted 

and alternatives not accepted on energy supply, distribution, cost, 

and use; flood control; navigation; water supply; and air quality (in 

addition to the preservation of other aspects of environmental quality); based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others. The Secretary shall also submit, 

together with the aforementioned written statement, all studies, 

data, and other factual information available to the Secretary and 

relevant to the Secretary’s decision. 

(5) If the Commission finds that the Secretary’s final prescription would be inconsistent with the purposes of this part, or other 

applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. The Dispute Resolution Service shall consult with the Secretary and the Commission and issue 

a non-binding advisory within 90 days. The Secretary may accept 

the Dispute Resolution Service advisory unless the Secretary finds 

that the recommendation will not adequately protect the fish resources. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.

ø16 U.S.C. 823d¿

SEC. 34. PROMOTING HYDROPOWER DEVELOPMENT AT EXISTING 

NONPOWERED DAMS. 

(a) EXPEDITED LICENSING PROCESS FOR NON-FEDERAL HYDRO- POWER PROJECTS AT EXISTING NONPOWERED DAMS.— 

(1) IN GENERAL.—As provided in this section, the Commission may issue and amend licenses, as appropriate, for any facility the Commission determines is a qualifying facility. 

(2) RULE.—Not later than 180 days after the date of enactment of this section, the Commission shall issue a rule establishing an expedited process for issuing and amending licenses 

for qualifying facilities under this section. 

(3) INTERAGENCY TASK FORCE.— 

(A) In establishing the expedited process under this 

section, the Commission shall convene an interagency task 

force, with appropriate Federal and State agencies and Indian tribes represented, to coordinate the regulatory processes associated with the authorizations required to construct and operate a qualifying facility. 

(B) The task force shall develop procedures that are 

consistent with subsection (e)(1)(E) to seek to ensure that, 

for projects licensed pursuant to this section, the Commission and appropriate Federal and State agencies and Indian tribes shall exercise their authorities in a manner 

that, to the extent practicable, will not result in any material change to the storage, release, or flow operations of 


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the associated nonpowered dam existing at the time an applicant files its license application. 

(4) LENGTH OF PROCESS.—The Commission shall seek to 

ensure that the expedited process under this section will result 

in a final decision on an application for a license by not later 

than 2 years after receipt of a completed application for the license. 

(b) DAM SAFETY.— (1) ASSESSMENT.—Before issuing any license for a qualifying facility, the Commission shall assess the safety of existing non-Federal dams and other non-Federal structures related 

to the qualifying facility (including possible consequences associated with failure of such structures). 

(2) REQUIREMENTS.—In issuing any license for a qualifying 

facility at a non-Federal dam, the Commission shall ensure 

that the Commission’s dam safety requirements apply to such 

qualifying facility, and the associated qualifying nonpowered 

dam, over the term of such license. 

(c) INTERAGENCY COMMUNICATIONS.—Interagency cooperation 

in the preparation of environmental documents under the National 

Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to an application for a license for a qualifying facility under 

this section, and interagency communications relating to licensing 

process coordination pursuant to this section, shall not—

(1) be considered to be ex parte communications under 

Commission rules; or 

(2) preclude an agency from participating in a licensing 

proceeding under this part, providing that any agency participating as a party in a licensing proceeding under this part 

shall, to the extent practicable, demonstrate a separation of 

staff cooperating with the Commission under the National Environmental Policy Act (42 U.S.C. 4321 et seq.) and staff participating in the applicable proceeding under this part. 

(d) IDENTIFICATION OF NONPOWERED DAMS FOR HYDROPOWER

DEVELOPMENT.— 

(1) IN GENERAL.—Not later than 12 months after the date 

of enactment of this section, the Commission, with the Secretary of the Army, the Secretary of the Interior, and the Secretary of Agriculture, shall jointly develop a list of existing 

nonpowered Federal dams that the Commission and the Secretaries agree have the greatest potential for non-Federal hydropower development. 

(2) CONSIDERATIONS.—In developing the list under paragraph (1), the Commission and the Secretaries may consider 

the following: 

(A) The compatibility of hydropower generation with 

existing purposes of the dam. 

(B) The proximity of the dam to existing transmission 

resources. 

(C) The existence of studies to characterize environmental, cultural, and historic resources relating to the 

dam. 

(D) The effects of hydropower development on release 

or flow operations of the dam. 


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(3) AVAILABILITY.—The Commission shall—

(A) provide the list developed under paragraph (1) to—

(i) the Committee on Energy and Commerce, the 

Committee on Transportation and Infrastructure, and 

the Committee on Natural Resources, of the House of 

Representatives; and 

(ii) the Committee on Environment and Public 

Works, and the Committee on Energy and Natural Resources, of the Senate; and 

(B) make such list available to the public. 

(e) DEFINITIONS.—For purposes of this section: 

(1) QUALIFYING CRITERIA.—The term ‘‘qualifying criteria’’ 

means, with respect to a facility—

(A) as of the date of enactment of this section, the facility is not licensed under, or exempted from the license 

requirements contained in, this part; 

(B) the facility will be associated with a qualifying 

nonpowered dam; 

(C) the facility will be constructed, operated, and 

maintained for the generation of electric power; 

(D) the facility will use for such generation any withdrawals, diversions, releases, or flows from the associated 

qualifying nonpowered dam, including its associated impoundment or other infrastructure; and 

(E) the operation of the facility will not result in any 

material change to the storage, release, or flow operations 

of the associated qualifying nonpowered dam. 

(2) QUALIFYING FACILITY.—The term ‘‘qualifying facility’’ 

means a facility that is determined under this section to meet 

the qualifying criteria. 

(3) QUALIFYING NONPOWERED DAM.—The term ‘‘qualifying 

nonpowered dam’’ means any dam, dike, embankment, or other 

barrier—

(A) the construction of which was completed on or before the date of enactment of this section; 

(B) that is or was operated for the control, release, or 

distribution of water for agricultural, municipal, navigational, industrial, commercial, environmental, recreational, 

aesthetic, drinking water, or flood control purposes; and 

(C) that, as of the date of enactment of this section, is 

not generating electricity with hydropower generating 

works that are licensed under, or exempted from the license requirements contained in, this part. 

(f) SAVINGS CLAUSE.—Nothing in this section affects—

(1) any authority of the Commission to license a facility at 

a nonpowered dam under this part; and 

(2) any authority of the Commission to issue an exemption 

to a small hydroelectric power project under the Public Utility 

Regulatory Policies Act of 1978.

ø16 U.S.C. 823e¿

SEC. 35. CLOSED-LOOP PUMPED STORAGE PROJECTS. 

(a) EXPEDITED LICENSING PROCESS FOR CLOSED-LOOP PUMPED

STORAGE PROJECTS.— 


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(1) IN GENERAL.—As provided in this section, the Commission may issue and amend licenses, as appropriate, for closedloop pumped storage projects. 

(2) RULE.—Not later than 180 days after the date of enactment of this section, the Commission shall issue a rule establishing an expedited process for issuing and amending licenses 

for closed-loop pumped storage projects under this section. 

(3) INTERAGENCY TASK FORCE.—In establishing the expedited process under this section, the Commission shall convene 

an interagency task force, with appropriate Federal and State 

agencies and Indian tribes represented, to coordinate the regulatory processes associated with the authorizations required to 

construct and operate closed-loop pumped storage projects. 

(4) LENGTH OF PROCESS.—The Commission shall seek to 

ensure that the expedited process under this section will result 

in final decision on an application for a license by not later 

than 2 years after receipt of a completed application for such 

license. 

(b) DAM SAFETY.—Before issuing any license for a closed-loop 

pumped storage project, the Commission shall assess the safety of 

existing dams and other structures related to the project (including 

possible consequences associated with failure of such structures). 

(c) EXCEPTIONS FROM OTHER REQUIREMENTS.— (1) IN GENERAL.—In issuing or amending a license for a 

closed-loop pumped storage project pursuant to the expedited 

process established under this section, the Commission may 

grant an exception from any other requirement of this part 

with respect to any part of the closed-loop pumped storage 

project (not including any dam or other impoundment). 

(2) CONSULTATION.—In granting an exception under paragraph (1), the Commission shall consult with the United States 

Fish and Wildlife Service, the National Marine Fisheries Service, and the State agency exercising administration over the 

fish and wildlife resources of the State in which the closed-loop 

pumped storage project is or will be located, in the manner 

provided by the Fish and Wildlife Coordination Act (16 U.S.C. 

661 et seq.). 

(3) TERMS AND CONDITIONS.—In granting an exception 

under paragraph (1), the Commission shall include in any such 

exception—

(A) such terms and conditions as the United States 

Fish and Wildlife Service, the National Marine Fisheries 

Service, and the State agency described in paragraph (2) 

each determine are appropriate to prevent loss of, or damage to, fish and wildlife resources and to otherwise carry 

out the purposes of the Fish and Wildlife Coordination Act; 

and 

(B) such terms and conditions as the Commission 

deems appropriate to ensure that such closed-loop pumped 

storage project continues to comply with the provisions of 

this section and terms and conditions included in any such 

exception. 

(4) FEES.—The Commission, in addition to the requirements of section 10(e), shall establish fees which shall be paid 


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by an applicant for a license for a closed-loop pumped storage 

project that is required to meet terms and conditions set by 

fish and wildlife agencies under paragraph (3). Such fees shall 

be adequate to reimburse the fish and wildlife agencies referred to in paragraph (3) for any reasonable costs incurred in 

connection with any studies or other reviews carried out by 

such agencies for purposes of compliance with this section. The 

fees shall, subject to annual appropriations Acts, be transferred to such agencies by the Commission for use solely for 

purposes of carrying out such studies and shall remain available until expended. 

(d) TRANSFERS.—Notwithstanding section 5, and regardless of 

whether the holder of a preliminary permit for a closed-loop 

pumped storage project claimed municipal preference under section 

7(a) when obtaining the permit, on request by a municipality, the 

Commission may, to facilitate development of a closed-loop pumped 

storage project—

(1) add entities as joint permittees following issuance of a 

preliminary permit; and 

(2) transfer a license in part to one or more nonmunicipal 

entities as co-licensees with a municipality, if the municipality 

retains majority ownership of the project for which the license 

was issued. 

(e) INTERAGENCY COMMUNICATIONS.—Interagency cooperation 

in the preparation of environmental documents under the National 

Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with respect to an application for a license for a closed-loop pumped storage project submitted pursuant to this section, and interagency 

communications relating to licensing process coordination pursuant 

to this section, shall not—

(1) be considered to be ex parte communications under 

Commission rules; or 

(2) preclude an agency from participating in a licensing 

proceeding under this part, providing that any agency participating as a party in a licensing proceeding under this part 

shall, to the extent practicable, demonstrate a separation of 

staff cooperating with the Commission under the National Environmental Policy Act (42 U.S.C. 4321 et seq.) and staff participating in the applicable proceeding under this part. 

(f) DEVELOPING ABANDONED MINES FOR PUMPED STORAGE.— 

(1) WORKSHOP.—Not later than 6 months after the date of 

enactment of this section, the Commission shall hold a workshop to explore potential opportunities for development of 

closed-loop pumped storage projects at abandoned mine sites. 

(2) GUIDANCE.—Not later than 1 year after the date of enactment of this section, the Commission shall issue guidance to 

assist applicants for licenses or preliminary permits for closedloop pumped storage projects at abandoned mine sites. 

(g) QUALIFYING CRITERIA FOR CLOSED-LOOP PUMPED STORAGE

PROJECTS.— 

(1) IN GENERAL.—The Commission shall establish criteria 

that a pumped storage project shall meet in order to qualify as 

a closed-loop pumped storage project eligible for the expedited 

process established under this section. 


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(2) INCLUSIONS.—In establishing the criteria under paragraph (1), the Commission shall include criteria requiring that 

the pumped storage project—

(A) cause little to no change to existing surface and 

ground water flows and uses; and 

(B) is unlikely to adversely affect species listed as a 

threatened species or endangered species under the Endangered Species Act of 1973. 

(h) SAVINGS CLAUSE.—Nothing in this section affects any authority of the Commission to license a closed-loop pumped storage 

project under this part.

ø16 U.S.C. 823f¿

SEC. 36. CONSIDERATIONS FOR RELICENSING TERMS. 

(a) IN GENERAL.—In determining the term of a new license 

issued when an existing license under this part expires, the Commission shall take into consideration, among other things—

(1) project-related investments by the licensee under the 

new license; and 

(2) project-related investments by the licensee over the 

term of the existing license. 

(b) EQUAL WEIGHT.—The determination of the Commission 

under subsection (a) shall give equal weight to—

(1) investments by the licensee to implement the new license under this part, including investments relating to redevelopment, new construction, new capacity, efficiency, modernization, rehabilitation or replacement of major equipment, 

safety improvements, or environmental, recreation, or other 

protection, mitigation, or enhancement measures required or 

authorized by the new license; and 

(2) investments by the licensee over the term of the existing license (including any terms under annual licenses) that—

(A) resulted in redevelopment, new construction, new 

capacity, efficiency, modernization, rehabilitation or replacement of major equipment, safety improvements, or 

environmental, recreation, or other protection, mitigation, 

or enhancement measures conducted over the term of the 

existing license; and 

(B) were not expressly considered by the Commission 

as contributing to the length of the existing license term 

in any order establishing or extending the existing license 

term. 

(c) COMMISSION DETERMINATION.—At the request of the licensee, the Commission shall make a determination as to whether 

any planned, ongoing, or completed investment meets the criteria 

under subsection (b)(2). Any determination under this subsection 

shall be issued within 60 days following receipt of the licensee’s request. When issuing its determination under this subsection, the 

Commission shall not assess the incremental number of years that 

the investment may add to the new license term. All such assessment shall occur only as provided in subsection (a).

ø16 U.S.C. 823g¿


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PART II—REGULATION OF ELECTRIC UTILITY COMPANIES 

ENGAGED IN INTERSTATE COMMERCE 

DECLARATION OF POLICY; APPLICATION OF PART; DEFINITIONS

SECTION 201. (a) It is hereby declared that the business of 

transmitting and selling electric energy for ultimate distribution to 

the public is affected with a public interest, and that Federal regulation of matters relating to generation to the extent provided in 

this Part and the Part next following and of that part of such business which consists of the transmission of electric energy in interstate commerce and the sale of such energy at wholesale in interstate commerce is necessary in the public interest, such Federal 

regulation, however, to extend only to those matters which are not 

subject to regulation by the States. 

(b)(1) The provisions of this Part shall apply to the transmission of electric energy in interstate commerce and to the sale 

of electric energy at wholesale in interstate commerce, but except 

as provided in paragraph (2) shall not apply to any other sale of 

electric energy or deprive a State or State commission of its lawful 

authority now exercised over the exportation of hydroelectric energy which is transmitted across a State line. The Commission 

shall have jurisdiction over all facilities for such transmission or 

sale of electric energy, but shall not have jurisdiction, except as 

specifically provided in this Part and the Part next following, over 

facilities used for the generation of electric energy or over facilities 

used in local distribution or only for the transmission of electric energy in intrastate commerce, or over facilities for the transmission 

of electric energy consumed wholly by the transmitter. 

(2) Notwithstanding section 201(f), the provisions of sections 

203(a)(2), 206(e), 210, 211, 211A, 212, 215, 215A, 216, 217, 218, 

219, 220, 221, and 222 shall apply to the entities described in such 

provisions, and such entities shall be subject to the jurisdiction of 

the Commission for purposes of carrying out such provisions and 

for purposes of applying the enforcement authorities of this Act 

with respect to such provisions. Compliance with any order of the 

Commission under the provisions of section 203(a)(2), 206(e), 210, 

211, 211A, 212, 215, 215A, 216, 217, 218, 219, 220, 221, or 222, 

shall not make an electric utility or other entity subject to the jurisdiction of the Commission for any purposes other than the purposes specified in the preceding sentence. 

(c) For the purpose of this Part, electric energy shall be held 

to be transmitted in interstate commerce if transmitted from a 

State and consumed at any point outside thereof: but only insofar 

as such transmission takes place within the United States. 

(d) The term ‘‘sale of electric energy at wholesale’’ when used 

in this Part means a sale of electric energy to any person for resale. 

(e) The term ‘‘public utility’’ when used in this Part or in the 

Part next following means any person who owns or operates facilities subject to the jurisdiction of the Commission under this Part 

(other than facilities subject to such jurisdiction solely by reason of 

section 206(e), 206(f), 210, 211, 211A, 212, 215, 215A, 216, 217, 

218, 219, 220, 221, or 222). 


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(f) No provision in this Part shall apply to, or be deemed to include, the United States, a State or any political subdivision of a 

State, an electric cooperative that receives financing under the 

Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) or that sells 

less than 4,000,000 megawatt hours of electricity per year, or any 

agency, authority, or instrumentality of any one or more of the 

foregoing, or any corporation which is wholly owned, directly or indirectly, by any one or more of the foregoing, or any officer, agent, 

employee of any of the foregoing acting as such in the course of his 

official duty, unless such provision makes specific reference thereto. 

(g) BOOKS AND RECORDS.—(1) Upon written order of a State 

commission, a State commission may examine the books, accounts, 

memoranda, contracts, and records of—

(A) an electric utility company subject to its regulatory authority under State law, 

(B) any exempt wholesale generator selling energy at 

wholesale to such electric utility, and 

(C) any electric utility company, or holding company thereof, which is an associate company or affiliate of an exempt 

wholesale generator which sells electric energy to an electric 

utility company referred to in subparagraph (A), 

wherever located, if such examination is required for the effective 

discharge of the State commission’s regulatory responsibilities affecting the provision of electric service. 

(2) Where a State commission issues an order pursuant to 

paragraph (1), the State commission shall not publicly disclose 

trade secrets or sensitive commercial information. 

(3) Any United States district court located in the State in 

which the State commission referred to in paragraph (1) is located 

shall have jurisdiction to enforce compliance with this subsection. 

(4) Nothing in this section shall—

(A) preempt applicable State law concerning the provision 

of records and other information; or 

(B) in any way limit rights to obtain records and other information under Federal law, contracts, or otherwise. 

(5) As used in this subsection the terms ‘‘affiliate’’, ‘‘associate 

company’’, ‘‘electric utility company’’, ‘‘holding company’’, ‘‘subsidiary company’’, and ‘‘exempt wholesale generator’’ shall have the 

same meaning as when used in the Public Utility Holding Company Act of 2005.

ø16 U.S.C. 824¿

INTERCONNECTION AND COORDINATION OF FACILITIES; EMERGENCIES; 

TRANSMISSION TO FOREIGN COUNTRIES

SEC. 202. (a) For the purpose of assuring an abundant supply 

of electric energy throughout the United States with the greatest 

possible economy and with regard to the proper utilization and conservation of natural resources, the Commission is empowered and 

directed to divide the country into regional districts for the voluntary interconnection and coordination of facilities for the generation, transmission, and sale of electric energy, and it may at any 

time thereafter, upon its own motion or upon application, make 

such modifications thereof as in its judgment will promote the pubVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00044 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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lic interest. Each such district shall embrace an area which, in the 

judgment of the Commission, can economically be served by such 

interconnected and coordinated electric facilities. It shall be the 

duty of the Commission to promote and encourage such interconnection and coordination within each such district and between 

such districts. Before establishing any such district and fixing or 

modifying the boundaries thereof the Commission shall give notice 

to the State commission of each State situated wholly or in part 

within such district, and shall afford each such State commission 

reasonable opportunity to present its views and recommendations, 

and shall receive and consider such views and recommendations. 

(b) Whenever the Commission, upon application of any State 

commission or of any person engaged in the transmission or sale 

of electric energy, and after notice to each State commission and 

public utility affected and after opportunity for hearing, finds such 

action necessary or appropriate in the public interest it may by 

order direct a public utility (if the Commission finds that no undue 

burden will be placed upon such public utility thereby) to establish 

physical connection of its transmission facilities with the facilities 

of one or more other persons engaged in the transmission or sale 

of electric energy, to sell energy to or exchange energy with such 

persons: Provided, That the Commission shall have no authority to 

compel the enlargement of generating facilities for such purposes, 

nor to compel such public utility to sell or exchange energy when 

to do so would impair its ability to render adequate service to its 

customers. The Commission may prescribe the terms and conditions of the arrangement to be made between the persons affected 

by any such order, including the apportionment of cost between 

them and the compensation or reimbursement reasonably due to 

any of them. 

(c)(1) During the continuance of any war in which the United 

States is engaged, or whenever the Commission determines that an 

emergency exists by reason of a sudden increase in the demand for 

electric energy, or a shortage of electric energy or of facilities for 

the generation or transmission of electric energy, or of fuel or water 

for generating facilities, or other causes, the Commission shall have 

authority, either upon its own motion or upon complaint, with or 

without notice, hearing, or report, to require by order such temporary connections of facilities and such generation, delivery, interchange, or transmission of electric energy as in its judgment will 

best meet the emergency and serve the public interest. If the parties affected by such order fail to agree upon the terms of any arrangement between them in carrying out such order, the Commission, after hearing held either before or after such order takes effect, may prescribe by supplemental order such terms as it finds to 

be just and reasonable, including the compensation or reimbursement which should be paid to or by any such party. 

(2) With respect to an order issued under this subsection that 

may result in a conflict with a requirement of any Federal, State, 

or local environmental law or regulation, the Commission shall ensure that such order requires generation, delivery, interchange, or 

transmission of electric energy only during hours necessary to meet 

the emergency and serve the public interest, and, to the maximum 

extent practicable, is consistent with any applicable Federal, State, 


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or local environmental law or regulation and minimizes any adverse environmental impacts. 

(3) To the extent any omission or action taken by a party, that 

is necessary to comply with an order issued under this subsection, 

including any omission or action taken to voluntarily comply with 

such order, results in noncompliance with, or causes such party to 

not comply with, any Federal, State, or local environmental law or 

regulation, such omission or action shall not be considered a violation of such environmental law or regulation, or subject such party 

to any requirement, civil or criminal liability, or a citizen suit 

under such environmental law or regulation. 

(4)(A) An order issued under this subsection that may result in 

a conflict with a requirement of any Federal, State, or local environmental law or regulation shall expire not later than 90 days 

after it is issued. The Commission may renew or reissue such order 

pursuant to paragraphs (1) and (2) for subsequent periods, not to 

exceed 90 days for each period, as the Commission determines necessary to meet the emergency and serve the public interest. 

(B) In renewing or reissuing an order under subparagraph (A), 

the Commission shall consult with the primary Federal agency 

with expertise in the environmental interest protected by such law 

or regulation, and shall include in any such renewed or reissued 

order such conditions as such Federal agency determines necessary 

to minimize any adverse environmental impacts to the extent practicable. The conditions, if any, submitted by such Federal agency 

shall be made available to the public. The Commission may exclude 

such a condition from the renewed or reissued order if it determines that such condition would prevent the order from adequately 

addressing the emergency necessitating such order and provides in 

the order, or otherwise makes publicly available, an explanation of 

such determination. 

(5) If an order issued under this subsection is subsequently 

stayed, modified, or set aside by a court pursuant to section 313 or 

any other provision of law, any omission or action previously taken 

by a party that was necessary to comply with the order while the 

order was in effect, including any omission or action taken to voluntarily comply with the order, shall remain subject to paragraph 

(3). 

(d) During the continuance of any emergency requiring immediate action, any person or municipality engaged in the transmission or sale of electric energy and not otherwise subject to the 

jurisdiction of the Commission may make such temporary connections with any public utility subject to the jurisdiction of the Commission or may construct such temporary facilities for the transmission of electric energy in interstate commerce as may be necessary or appropriate to meet such emergency, and shall not become subject to the jurisdiction of the Commission by reason of 

such temporary connection or temporary construction: Provided, 

That such temporary connection shall be discontinued or such temporary construction removed or otherwise disposed of upon the termination of such emergency: Provided further, That upon approval 

of the Commission permanent connections for emergency use only 

may be made hereunder. 


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(e) After six months from the date on which this Part takes effect, no person shall transmit any electric energy from the United 

States to a foreign country without first having secured an order 

of the Commission authorizing it to do so. The Commission shall 

issue such order upon application unless, after opportunity for 

hearing, it finds that the proposed transmission would impair the 

sufficiency of electric supply within the United States or would impede or tend to impede the coordination in the public interest of facilities subject to the jurisdiction of the Commission. The Commission may by its order grant such application in whole or in part, 

with such modifications and upon such terms and conditions as the 

Commission may find necessary or appropriate, and may from time 

to time, after opportunity for hearing and for good cause shown, 

make such supplemental orders in the premises as it may find necessary or appropriate. 

(f) The ownership or operation of facilities for the transmission 

or sale at wholesale of electric energy which is (a) generated within 

a State and transmitted from that State across an international 

boundary and not thereafter transmitted into any other State, or 

(b) generated in a foreign country and transmitted across an international boundary into a State and not thereafter transmitted into 

any other State, shall not make a person a public utility subject to 

regulation as such under other provisions of this part. The State 

within which any such facilities are located may regulate any such 

transaction insofar as such State regulation does not conflict with 

the exercise of the Commission’s powers under or relating to subsection 202(e). 

(g) In order to insure continuity of service to customers of public utilities, the Commission shall require by rule, each public utility to—

(1) report promptly to the Commission and any appropriate State regulatory authorities any anticipated shortage of 

electric energy or capacity which would affect such utility’s capability of serving its wholesale customers, 

(2) submit to the Commission, and to any appropriate 

State regulatory authority, and periodically revise, contingency 

plans respecting—

(A) shortages of electric energy or capacity, and 

(B) circumstances which may result in such shortages, 

and 

(3) accommodate any such shortages or circumstances in a 

manner which shall—

(A) give due consideration to the public health, safety, 

and welfare, and 

(B) provide that all persons served directly or indirectly by such public utility will be treated, without undue 

prejudice or disadvantage.

ø16 U.S.C. 824a¿

DISPOSITION OF PROPERTY; CONSOLIDATION; PURCHASE OF

SECURITIES

SEC. 203. (a)(1) No public utility shall, without first having secured an order of the Commission authorizing it to do so—


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14The margins of subparagraphs (A) through (D) are so in law. 

(A) 14 sell, lease, or otherwise dispose of the whole of 

its facilities subject to the jurisdiction of the Commission, 

or any part thereof of a value in excess of $10,000,000; 

(B) merge or consolidate, directly or indirectly, its facilities 

subject to the jurisdiction of the Commission, or any part 

thereof, with the facilities of any other person, or any part 

thereof, that are subject to the jurisdiction of the Commission 

and have a value in excess of $10,000,000, by any means whatsoever; 

(C) purchase, acquire, or take any security with a value in excess of $10,000,000 of any other public utility; 

or 

(D) purchase, lease, or otherwise acquire an existing 

generation facility— (i) that has a value in excess of $10,000,000; and 

(ii) that is used for interstate wholesale sales and 

over which the Commission has jurisdiction for ratemaking purposes. 

(2) No holding company in a holding company system that 

includes a transmitting utility or an electric utility shall purchase, acquire, or take any security with a value in excess of 

$10,000,000 of, or, by any means whatsoever, directly or indirectly, merge or consolidate with, a transmitting utility, an 

electric utility company, or a holding company in a holding 

company system that includes a transmitting utility, or an 

electric utility company, with a value in excess of $10,000,000 

without first having secured an order of the Commission authorizing it to do so. 

(3) Upon receipt of an application for such approval the 

Commission shall give reasonable notice in writing to the Governor and State commission of each of the States in which the 

physical property affected, or any part thereof, is situated, and 

to such other persons as it may deem advisable. 

(4) After notice and opportunity for hearing, the Commission shall approve the proposed disposition, consolidation, acquisition, or change in control, if it finds that the proposed 

transaction will be consistent with the public interest, and will 

not result in cross-subsidization of a non-utility associate company or the pledge or encumbrance of utility assets for the benefit of an associate company, unless the Commission determines that the cross-subsidization, pledge, or encumbrance will 

be consistent with the public interest. 

(5) The Commission shall, by rule, adopt procedures for 

the expeditious consideration of applications for the approval of 

dispositions, consolidations, or acquisitions, under this section. 

Such rules shall identify classes of transactions, or specify criteria for transactions, that normally meet the standards established in paragraph (4). The Commission shall provide expedited review for such transactions. The Commission shall grant 

or deny any other application for approval of a transaction not 

later than 180 days after the application is filed. If the Commission does not act within 180 days, such application shall be 


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deemed granted unless the Commission finds, based on good 

cause, that further consideration is required to determine 

whether the proposed transaction meets the standards of paragraph (4) and issues an order tolling the time for acting on the 

application for not more than 180 days, at the end of which additional period the Commission shall grant or deny the application. 

(6) For purposes of this subsection, the terms ‘‘associate 

company’’, ‘‘holding company’’, and ‘‘holding company system’’ 

have the meaning given those terms in the Public Utility Holding Company Act of 2005. 

(7)(A) Not later than 180 days after the date of enactment 

of this paragraph, the Commission shall promulgate a rule requiring any public utility that is seeking to merge or consolidate, directly or indirectly, its facilities subject to the jurisdiction of the Commission, or any part thereof, with those of any 

other person, to notify the Commission of such transaction not 

later than 30 days after the date on which the transaction is 

consummated if—

(i) the facilities, or any part thereof, to be acquired are 

of a value in excess of $1,000,000; and 

(ii) such public utility is not required to secure an 

order of the Commission under paragraph (1)(B). 

(B) In establishing any notification requirement under subparagraph (A), the Commission shall, to the maximum extent 

practicable, minimize the paperwork burden resulting from the 

collection of information. 

(b) The Commission may grant any application for an order 

under this section in whole or in part and upon such terms and 

conditions as it finds necessary or appropriate to secure the maintenance of adequate service and the coordination in the public interest of facilities subject to the jurisdiction of the Commission. The 

Commission may from time to time for good cause shown make 

such orders supplemental to any order made under this section as 

it may find necessary or appropriate.

ø16 U.S.C. 824b¿

ISSUANCE OF SECURITIES; ASSUMPTION OF LIABILITIES

SEC. 204. (a) No public utility shall issue any security, or assume any obligation or liability as guarantor, indorser, surety, or 

otherwise in respect of any security of another person, unless and 

until, and then only to the extent that, upon application by the 

public utility, the Commission by order authorized such issue or assumption of liability. The Commission shall make such order if it 

finds that such issue or assumption (a) is for some lawful object, 

within the corporate purposes of the applicant and compatible with 

the public interest, which is necessary or appropriate for or consistent with the proper performance by the applicant of service as 

a public utility and which will not impair its ability to perform that 

service, and (b) is reasonably necessary or appropriate for such 

purposes. The provisions of this section shall be effective six 

months after this Part takes effect. 


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(b) The Commission, after opportunity for hearing, may grant 

any application under this section in whole or in part, and with 

such modifications and upon such terms and conditions as it may 

find necessary or appropriate, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it may find necessary or appropriate, and may by any such supplemental order modify the provisions of any previous order as to the particular purposes, uses, and 

extent to which, or the conditions under which, any security so 

theretofore authorized or the proceeds thereof may be applied, subject always to the requirements of subsection (a) of this section. 

(c) No public utility shall, without the consent of the Commission, apply any security or any proceeds thereof to any purpose not 

specified in the Commission’s order, or supplemental order, or to 

any purpose in excess of the amount allowed for such purpose in 

such order, or otherwise in contravention of such order. 

(d) The Commission shall not authorize the capitalization of 

the right to be a corporation or of any franchise, permit, or contracts for consolidation, merger, or lease in excess of the amount 

(exclusive of any tax or annual charge) actually paid as the consideration for such right, franchise, permit, or contract. 

(e) Subsection (a) shall not apply to the issue or renewal of, or 

assumption of liability on, a note or draft maturing not more than 

one year after the date of such issue, renewal, or assumption of liability, and aggregating (together with all other then outstanding 

notes and drafts of a maturity of one year or less on which such 

public utility is primarily or secondarily liable) not more that 5 per 

centum of the par value of the other securities of the public utility 

then outstanding. In the case of securities having no par value, the 

par value for the purpose of this subsection shall be the fair market 

value as of the date of issue. Within ten days after any such issue, 

renewal, or assumption of liability, the public utility shall file with 

the Commission a certificate of notification, in such form as may 

be prescribed by the Commission, setting forth such matters as the 

Commission shall by regulations require. 

(f) The provisions of this section shall not extend to a public 

utility organized and operating in a State under the laws of which 

its security issues are regulated by a State commission. 

(g) Nothing in this section shall be construed to imply any 

guarantee or obligation on the part of the United States in respect 

of any securities to which the provisions of this section relate. 

(h) Any public utility whose security issues are approved by 

the Commission under this section may file with the Securities and 

Exchange Commission duplicate copies of reports filed with the 

Federal Power Commission in lieu of the reports, information, and 

documents required under section 7 of the Securities Act of 1933 

and section 12 and 13 of the Securities and Exchange Act of 1934.

ø16 U.S.C. 824c¿

RATE AND CHARGES; SCHEDULES; SUSPENSION OF NEW RATES

SEC. 205. (a) All rates and charges made, demanded, or received by any public utility for or in connection with the transmission or sale of electric energy subject to the jurisdiction of the 


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Commission, and all rules and regulations affecting or pertaining 

to such rates or charges shall be just and reasonable, and any such 

rate or charge that is not just and reasonable is hereby declared 

to be unlawful. 

(b) No public utility shall, with respect to any transmission or 

sale subject to the jurisdiction of the Commission, (1) make or 

grant any undue preference or advantage to any person or subject 

any person to any undue prejudice or disadvantage, or (2) maintain 

any unreasonable difference in rates, charges, service, facilities, or 

in any other respect, either as between localities or as between 

classes of service. 

(c) Under such rules and regulations as the Commission may 

prescribe, every public utility shall file with the Commission, within such time and in such form as the Commission may designate, 

and shall keep open in convenient form and place for public inspection schedules showing all rates and charges for any transmission 

or sale subject to the jurisdiction of the Commission, and the classification, practices, and regulations affecting such rates and 

charges, together with all contracts which in any manner affect or 

relate to such rates, charges, classifications, and services. 

(d) Unless the Commission otherwise orders, no change shall 

be made by any public utility in any such rates, charges, classification, or service, or in any rule, regulation, or contract relating 

thereto, except after sixty days’ notice to the Commission and to 

the public. Such notice shall be given by filing with the Commission and keeping open for public inspection new schedules stating 

plainly the change or changes to be made in the schedule or schedules then in force and the time when the change or changes will 

go into effect. The Commission, for good cause shown, may allow 

changes to take effect without requiring the sixty days’ notice herein provided for by an order specifying the changes so to be made 

and the time when they shall take effect and the manner in which 

they shall be filed and published. 

(e) Whenever any such new schedule is filed the Commission 

shall have authority, either upon complaint or upon its own initiative without complaint at once, and, if it so orders, without answer 

or formal pleading by the public utility, but upon reasonable notice 

to enter upon a hearing concerning the lawfulness of such rate, 

charge, classification, or service; and, pending such hearing and the 

decision thereon the Commission, upon filing with such schedules 

and delivering to the public utility affected thereby a statement in 

writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, charge, classification, or service, but not for a longer period than five months 

beyond the time when it would otherwise go into effect; and after 

full hearings, either completed before or after the rate, charge, classification, or service goes into effect, the Commission may make 

such orders with reference thereto as would be proper in a proceeding initiated after it had become effective. If the proceeding has 

not been concluded and an order made at the expiration of such 

five months, the proposed change of rate, charge, classification, or 

service shall go into effect at the end of such period, but in case 

of a proposed increased rate or charge, the Commission may by 

order require the interested public utility or public utilities to keep 


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accurate account in detail of all amounts received by reason of such 

increase, specifying by whom and in whose behalf such amounts 

are paid, and upon completion of the hearing and decision may by 

further order require such public utility or public utilities to refund, with interest, to the persons in whose behalf such amounts 

were paid, such portion of such increased rates or charges as by its 

decision shall be found not justified. At any hearing involving a 

rate or charge sought to be increased, the burden of proof to show 

that the increased rate or charge is just and reasonable shall be 

upon the public utility, and the Commission shall give to the hearing and decision of such questions preference over other questions 

pending before it and decide the same as speedily as possible. 

(f)(1) Not later than 2 years after the date of the enactment of 

this subsection and not less often than every 4 years thereafter, the 

Commission shall make a thorough review of automatic adjustment 

clauses in public utility rate schedules to examine—

(A) whether or not each such clause effectively provides incentives for efficient use of resources (including economical 

purchase and use of fuel and electric energy), and 

(B) whether any such clause reflects any costs other than 

costs which are—

(i) subject to periodic fluctuations, and 

(ii) not susceptible to precise determinations in rate 

cases prior to the time such costs are incurred. 

Such review may take place in individual rate proceedings or in generic or other separate proceedings applicable to one or more utilities. 

(2) Not less frequently than every 2 years, in rate proceedings 

or in generic or other separate proceedings, the Commission shall 

review, with respect to each public utility, practices under any 

automatic adjustment clauses of such utility to insure efficient use 

of resources (including economical purchase and use of fuel and 

electric energy) under such clauses. 

(3) The Commission may, on its own motion or upon complaint, 

after an opportunity for an evidentiary hearing, order a public utility to—

(A) modify the terms and provisions of any automatic adjustment clause, or 

(B) cease any practice in connection with the clause, 

if such clause or practice does not result in the economical purchase and use of fuel, electric energy, or other items, the cost of 

which is included in any rate schedule under an automatic adjustment clause. 

(4) As used in this subsection, 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 any rate which takes effect subject to refund and subject to a later determination of the 

appropriate amount of such rate. 

(g) INACTION OF COMMISSIONERS.— 

(1) IN GENERAL.—With respect to a change described in 

subsection (d), if the Commission permits the 60-day period established therein to expire without issuing an order accepting 


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or denying the change because the Commissioners are divided 

two against two as to the lawfulness of the change, as a result 

of vacancy, incapacity, or recusal on the Commission, or if the 

Commission lacks a quorum—

(A) the failure to issue an order accepting or denying 

the change by the Commission shall be considered to be an 

order issued by the Commission accepting the change for 

purposes of section 313(a); and 

(B) each Commissioner shall add to the record of the 

Commission a written statement explaining the views of 

the Commissioner with respect to the change. 

(2) APPEAL.—If, pursuant to this subsection, a person 

seeks a rehearing under section 313(a), and the Commission 

fails to act on the merits of the rehearing request by the date 

that is 30 days after the date of the rehearing request because 

the Commissioners are divided two against two, as a result of 

vacancy, incapacity, or recusal on the Commission, or if the 

Commission lacks a quorum, such person may appeal under 

section 313(b).

ø16 U.S.C. 824d¿

FIXING RATES AND CHARGES; DETERMINATION OF COST OF

PRODUCTION OR TRANSPORTATION

SEC. 206. (a) Whenever the Commission, after a hearing held 

upon its own motion or upon complaint, shall find that any rate, 

charges, 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 affecting 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) 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 of the filing of such 

complaint nor later than 5 months after the filing of such complaint. 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 of the publication by the Commission of notice of its intention to initiate such proceeding nor later than 5 months after the 

publication date. 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 205 of this Act and 


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otherwise act as speedily as possible. If no final decision is rendered by the conclusion of the 180-day period commencing upon 

initiation of a proceeding pursuant to this section, 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 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) Notwithstanding subsection (b), 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) 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. 

(d) 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. 

(e)(1) In this subsection: 


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(A) The term ‘‘short-term sale’’ means an agreement for 

the sale of electric energy at wholesale in interstate commerce 

that is for a period of 31 days or less (excluding monthly contracts subject to automatic renewal). 

(B) The term ‘‘applicable Commission rule’’ means a Commission rule applicable to sales at wholesale by public utilities 

that the Commission determines after notice and comment 

should also be applicable to entities subject to this subsection. 

(2) If an entity described in section 201(f) voluntarily makes a 

short-term sale of electric energy through an organized market in 

which the rates for the sale are established by Commission-approved tariff (rather than by contract) and the sale violates the 

terms of the tariff or applicable Commission rules in effect at the 

time of the sale, the entity shall be subject to the refund authority 

of the Commission under this section with respect to the violation. 

(3) This section shall not apply to—

(A) any entity that sells in total (including affiliates of the 

entity) less than 8,000,000 megawatt hours of electricity per 

year; or 

(B) an electric cooperative. 

(4)(A) The Commission shall have refund authority under paragraph (2) with respect to a voluntary short term sale of electric energy by the Bonneville Power Administration only if the sale is at 

an unjust and unreasonable rate. 

(B) The Commission may order a refund under subparagraph 

(A) only for short-term sales made by the Bonneville Power Administration at rates that are higher than the highest just and reasonable rate charged by any other entity for a short-term sale of electric energy in the same geographic market for the same, or most 

nearly comparable, period as the sale by the Bonneville Power Administration. 

(C) In the case of any Federal power marketing agency or the 

Tennessee Valley Authority, the Commission shall not assert or exercise any regulatory authority or power under paragraph (2) other 

than the ordering of refunds to achieve a just and reasonable rate.

ø16 U.S.C. 824e¿

FURNISHING OF ADEQUATE SERVICE

SEC. 207. Whenever the Commission, upon complaint of a 

State commission, after notice to each State commission and public 

utility affected and after opportunity for hearing, shall find that 

any interstate service of any public utility is inadequate or insufficient, the Commission shall determine the proper, adequate, or sufficient service to be furnished, and shall fix the same by its order, 

rule, or regulation: Provided, That the Commission shall have no 

authority to compel the enlargement of generating facilities for 

such purposes, nor to compel the public utility to sell or exchange 

energy when to do so would impair its ability to render adequate 

service to its customers.

ø16 U.S.C. 824f¿


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ASCERTAINMENT OF COST PROPERTY

SEC. 208. (a) The Commission may investigate and ascertain 

the actual legitimate cost of the property of every public utility, the 

depreciation therein, and, when found necessary for rate-making 

purposes, other facts which bear on the determination of such cost 

or depreciation, and the fair value of such property. 

(b) Every public utility upon request shall file with the Commission an inventory of all or any part of its property and a statement of the original cost thereof, and shall keep the Commission 

informed regarding the cost of all additions, betterments, extensions, and new construction.

ø16 U.S.C. 824g¿

USE OF JOINT BOARDS; COOPERATION WITH STATE COMMISSIONS

SEC. 209. (a) The Commission may refer any matter arising in 

the administration of this Part to a board to be composed of a 

member or members, as determined by the Commission, from the 

State or each of the States affected or to be affected by such matter. Any such board shall be vested with the same power and be 

subject to the same duties and liabilities as in the case of a member of the Commission when designated by the Commission to hold 

any hearings. The action of such board shall have such force and 

affect and its proceedings shall be conducted in such manner as the 

Commission shall by regulations prescribe. The board shall be appointed by the Commission from persons nominated by the State 

commission of each State affected, or by the Governor of such State 

if there is no State commission. Each State affected shall be entitled to the same number of representatives on the board unless the 

nominating power of such State waives such right. The Commission shall have discretion to reject the nominee from any State, but 

shall thereupon invite a new nomination from that State. The 

members of a board shall receive such allowances for expenses as 

the Commission shall provide. The Commission may, when in its 

discretion sufficient reason exists therefor, revoke any reference to 

such a board. 

(b) The Commission may confer with any State commission regarding the relationship between rate structures, costs, accounts, 

charges, practices, classifications, and regulations of public utilities 

subject to the jurisdiction of such State commission and of the 

Commission; and the Commission is authorized, under such rules 

and regulations as it shall prescribe, to hold joint hearings with 

any State commission in connection with any matter with respect 

to which the Commission is authorized to act. The Commission is 

authorized in the administration of this Act to avail itself of such 

cooperation, services, records, and facilities as may be afforded by 

any State commission. 

(c) The Commission shall make available to the several State 

commissions such information and reports as may be of assistance 

in State regulation of public utilities. Whenever the Commission 

can do so without prejudice to the efficient and proper conduct of 

its affairs, it may upon request from the State make available to 

such State as witnesses any of its trained rate, valuation, or other 

experts, subject to reimbursement to the Commission by such State 


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of the compensation and traveling expenses of such witnesses. All 

sums collected hereunder shall be credited to the appropriation 

from which the amounts were expended in carrying out the provisions of this subsection.

ø16 U.S.C. 824h¿

CERTAIN INTERCONNECTION AUTHORITY

SEC. 210. (a)(1) Upon application of any electric utility, Federal 

power marketing agency, geothermal power producer (including a 

producer which is not an electric utility), qualifying cogenerator, or 

qualifying small power producer, the Commission may issue an 

order requiring—

(A) the physical connection of any cogeneration facility, 

any small power production facility, or the transmission facilities of any electric utility, with the facilities of such applicant. 

(B) such action as may be necessary to make effective any 

physical connection described in subparagraph (A), which physical connection is ineffective for any reason, such as inadequate 

size, poor maintenance, or physical unreliability. 

(C) such sale or exchange of electric energy or other coordination, as may be necessary to carry out the purposes of any 

order under subparagraph (A) or (B), or 

(D) such increase in transmission capacity as may be necessary to carry out the purposes of any order under subparagraph (A) or (B). 

(2) any State regulatory authority may apply to the Commission for an order for any action referred to in subparagraph (A), 

(B), (C), or (D) of paragraph (1). No such order may be issued by 

the Commission with respect to a Federal power marketing agency 

upon application of a State regulatory authority. 

(b) Upon receipt of an application under subsection (a), the 

Commission shall—

(1) issue notice to each affected State regulatory authority, 

each affected electric utility, each affected Federal power marketing agency, each affected owner or operator of a cogeneration facility or of a small power production facility, and to the 

public. 

(2) afford an opportunity for an evidentiary hearing, and 

(3) make a determination with respect to the matters referred to in subsection (c). 

(c) No order may be issued by the Commission under subsection (a) unless the Commission determines that such order—

(1) is in the public interest, 

(2) would—

(A) encourage overall conservation of energy or capital, 

(B) optimize the efficiency of use of facilities and resources, or 

(C) improve the reliability of any electric utility system or Federal power marketing agency to which the order 

applies, and 

(3) meets the requirements of section 212. 

(d) The Commission may, on its own motion, after compliance 

with the requirements of paragraphs (1) and (2) of subsection (b), 


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issue an order requiring any action described in subsection (a)(1) 

if the Commission determines that such order meets the requirements of subsection (c). No such order may be issued upon the 

Commission’s own motion with respect to a Federal power marketing agency. 

(e)(1) As used in this section, the term ‘‘facilities’’ means only 

facilities used for the generation or transmission of electric energy. 

(2) With respect to an order issued pursuant to an application 

of a qualifying cogenerator or qualifying small power producer 

under subsection (a)(1), the term ‘‘facilities of such applicant’’ 

means the qualifying cogeneration facilities or qualifying small 

power production facilities of the applicant, as specified in the application. With respect to an order issued pursuant to an application under subsection (a)(2), the term ‘‘facilities of such applicant’’ 

means the qualifying cogeneration facilities, qualifying small power 

production facilities, or the transmission facilities of an electric 

utility, as specified in the application. With respect to an order 

issued by the Commission on its own motion under subsection (d), 

such term means the qualifying cogeneration facilities, qualifying 

small power production facilities, or the transmission facilities of 

an electric utility, as specified in the proposed order.

ø16 U.S.C. 824i¿

CERTAIN WHEELING AUTHORITY

SEC. 211. (a) Any electric utility, Federal power marketing 

agency, or any other person generating electric energy for sale for 

resale, may apply to the Commission for an order under this subsection requiring a transmitting utility to provide transmission 

services (including any enlargement of transmission capacity necessary to provide such services) to the applicant. Upon receipt of 

such application, after public notice and notice to each affected 

State regulatory authority, each affected electric utility, and each 

affected Federal power marketing agency, and after affording an 

opportunity for an evidentiary hearing, the Commission may issue 

such order if it finds that such order meets the requirements of section 212, and would otherwise be in the public interest. No order 

may be issued under this subsection unless the applicant has made 

a request for transmission services to the transmitting utility that 

would be the subject of such order at least 60 days prior to its filing 

of an application for such order. 

(b) RELIABILITY OF ELECTRIC SERVICE.—No order may be 

issued under this section or section 210 if, after giving consideration to consistently applied regional or national reliability standards, guidelines, or criteria, the Commission finds that such order 

would unreasonably impair the continued reliability of electric systems affected by the order. 

(c) No order may be issued under subsection (a) or (b) which 

requires the transmitting utility subject to the order to transmit, 

during any period, an amount of electric energy which replaces any 

amount of electric energy—

(1) required to be provided to such applicant pursuant to 

a contract during such period, or 


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(2) currently provided to the applicant by the utility subject to the order pursuant to a rate schedule on file during 

such period with the Commission: Provided, That nothing in 

this subparagraph shall prevent an application for an order 

hereunder to be filed prior to termination or modification of an 

existing rate schedule: Provided, That such order shall not become effective until termination of such rate schedule or the 

modification becomes effective. 

(d)(1) Any transmitting utility ordered under subsection (a) 

or (b) to provide transmission services may apply to the Commission for an order permitting such transmitting utility to 

cease providing all, or any portion of, such services. After public notice, notice to each affected State regulatory authority, 

each affected Federal power marketing agency, each affected 

transmitting utility, and each affected electric utility, and after 

an opportunity for an evidentiary hearing, the Commission 

shall issue an order terminating or modifying the order issued 

under subsection (a) or (b), if the transmitting utility providing 

such transmission services has demonstrated, and the Commission has found, that—

(A) due to changed circumstances, the requirements applicable, under this section and section 212, to the issuance of an 

order under subsection (a) or (b) are no longer met, or 

(B) any transmission capacity of the utility providing 

transmission services under such order which was, at the time 

such order was issued, in excess of the capacity necessary to 

serve its own customers is no longer in excess of the capacity 

necessary for such purposes, or 

(C) the ordered transmission services require enlargement 

of transmission capacity and the transmitting utility subject to 

the order has failed, after making a good faith effort, to obtain 

the necessary approvals or property rights under applicable 

Federal, State, and local laws. 

No order shall be issued under this subsection pursuant to a finding under subparagraph (A) unless the Commission finds that such 

order is in the public interest. 

(2) Any order issued under this subsection terminating or 

modifying an order issued under subsection (a) or (b) shall—

(A) provide for any appropriate compensation, and 

(B) provide the affected electric utilities adequate opportunity and time to—

(i) make suitable alternative arrangements for any 

transmission services terminated or modified, and 

(ii) insure that the interests of ratepayers of such utilities are adequately protected. 

(3) No order may be issued under this subsection terminating 

or modifying any order issued under subsection (a) or (b) if the 

order under subsection (a) or (b) includes terms and conditions 

agreed upon by the parties which—

(A) fix a period during which transmission services are to 

be provided under the order under subsection (a) or (b), or 

(B) otherwise provide procedures or methods for terminating or modifying such order (including, if appropriate, the 

return of the transmission capacity when necessary to take 


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into account an increase, after the issuance of such order, in 

the needs of the transmitting utility subject to such order for 

transmission capacity). 

(e) As used in this section, the term ‘‘facilities’’ means only facilities used for the generation or transmission of electric energy.

ø16 U.S.C. 824j¿

SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES. 

(a) DEFINITION OF UNREGULATED TRANSMITTING UTILITY.—In 

this section, the term ‘‘unregulated transmitting utility’’ means an 

entity that—

(1) owns or operates facilities used for the transmission of 

electric energy in interstate commerce; and 

(2) is an entity described in section 201(f). 

(b) TRANSMISSION OPERATION SERVICES.—Subject to section 

212(h), the Commission may, by rule or order, require an unregulated transmitting utility to provide transmission services—

(1) at rates that are comparable to those that the unregulated transmitting utility charges itself; and 

(2) on terms and conditions (not relating to rates) that are 

comparable to those under which the unregulated transmitting 

utility provides transmission services to itself and that are not 

unduly discriminatory or preferential. 

(c) EXEMPTION.—The Commission shall exempt from any rule 

or order under this section any unregulated transmitting utility 

that—

(1) sells not more than 4,000,000 megawatt hours of electricity per year; 

(2) does not own or operate any transmission facilities that 

are necessary for operating an interconnected transmission 

system (or any portion of the system); or 

(3) meets other criteria the Commission determines to be 

in the public interest. 

(d) LOCAL DISTRIBUTION FACILITIES.—The requirements of subsection (b) shall not apply to facilities used in local distribution. 

(e) EXEMPTION TERMINATION.—If the Commission, after an evidentiary hearing held on a complaint and after giving consideration 

to reliability standards established under section 215, finds on the 

basis of a preponderance of the evidence that any exemption granted pursuant to subsection (c) unreasonably impairs the continued 

reliability of an interconnected transmission system, the Commission shall revoke the exemption granted to the transmitting utility. 

(f) APPLICATION TO UNREGULATED TRANSMITTING UTILITIES.—

The rate changing procedures applicable to public utilities under 

subsections (c) and (d) of section 205 are applicable to unregulated 

transmitting utilities for purposes of this section. 

(g) REMAND.—In exercising authority under subsection (b)(1), 

the Commission may remand transmission rates to an unregulated 

transmitting utility for review and revision if necessary to meet the 

requirements of subsection (b). 

(h) OTHER REQUESTS.—The provision of transmission services 

under subsection (b) does not preclude a request for transmission 

services under section 211. 


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(i) LIMITATION.—The Commission may not require a State or 

municipality to take action under this section that would violate a 

private activity bond rule for purposes of section 141 of the Internal Revenue Code of 1986. 

(j) TRANSFER OF CONTROL OF TRANSMITTING FACILITIES.—Nothing in this section authorizes the Commission to require an unregulated transmitting utility to transfer control or operational control 

of its transmitting facilities to a Transmission Organization that is 

designated to provide nondiscriminatory transmission access.

ø16 U.S.C. 824j–1¿

PROVISIONS REGARDING CERTAIN ORDERS REQUIRING

INTERCONNECTION OR WHEELING

SEC. 212. (a) RATES, CHARGES, TERMS, AND CONDITIONS FOR

WHOLESALE TRANSMISSION SERVICES.—An order under section 211 

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 211 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.

øSubsection (b) repealed¿

(c)(1) Before issuing an order under section 210 of subsection 

(a) or (b) of section 211, 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 210, if the parties fail 

to agree within the time set by the Commission or if the CommisVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00061 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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sion 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 211, 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) If the Commission does not issue any order applied for 

under section 210 or 211, the Commission shall, by order, deny 

such application and state the reasons for such denial. 

(e) SAVINGS PROVISIONS.—(1) No provision of section 210, 211, 

214, 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 210, 211, 214, 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 210, 211, 213, 214, 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 the Clayton Act, except that such term includes section 5 of the Federal Trade Commission Act to the extent that such section relates to unfair methods of competition. 

(f)(1) No order under section 210 or 211 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 210 or 

of section 211 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. 

(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 210 or 211 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) 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 


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order under section 210 or 211, 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 210 or section 211 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. 

(g) PROHIBITION ON ORDERS INCONSISTENT WITH RETAIL MARKETING AREAS.—No order may be issued under this Act 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 Act 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; 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 the date of enactment of this subsection 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 210, section 211, this section, and section 213 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—


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(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 210, section 211, this section, or section 213, 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 Act 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 7(i) of the Pacific Northwest Electric Power Planning and Conservation Act (16 

U.S.C. 839(i) (1) through (3)), 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 211 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 

211 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 


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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 211 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 211 and this section, including providing the opportunity for a hearing. 

(3) Notwithstanding those provisions of section 313(b) of this 

Act (16 U.S.C. 825l) 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 3(14) of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 

839a(14)). 

(4) To the extent the Administrator of the Bonneville Power 

Administration cannot be required under section 211, 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 

210, section 211, this section, or section 213 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 3(14) of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839a(14)), 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 211 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 


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Sec. 213 FEDERAL POWER ACT 66

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 

the date of enactment of this subsection 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 211 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), 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.

ø16 U.S.C. 824k¿

SEC. 213. INFORMATION REQUIREMENTS. 

(a) REQUESTS FOR WHOLESALE TRANSMISSION SERVICES.—

Whenever any electric utility, Federal power marketing agency, or 

any other person generating electric energy for sale for resale 

makes a good faith request to a transmitting utility to provide 

wholesale transmission services and requests specific rates and 

charges, and other terms and conditions, unless the transmitting 

utility agrees to provide such services at rates, charges, terms and 

conditions acceptable to such person, the transmitting utility shall, 

within 60 days of its receipt of the request, or other mutually 

agreed upon period, provide such person with a detailed written explanation, with specific reference to the facts and circumstances of 

the request, stating (1) the transmitting utility’s basis for the proposed rates, charges, terms, and conditions for such services, and 

(2) its analysis of any physical or other constraints affecting the 

provision of such services. 

(b) TRANSMISSION CAPACITY AND CONSTRAINTS.—Not later than 

1 year after the enactment of this section, the Commission shall 

promulgate a rule requiring that information be submitted annually to the Commission by transmitting utilities which is adequate 

to inform potential transmission customers, State regulatory authorities, and the public of potentially available transmission capacity and known constraints.

ø16 U.S.C. 824l¿

SEC. 214. SALES BY EXEMPT WHOLESALE GENERATORS. 

No rate or charge received by an exempt wholesale generator 

for the sale of electric energy shall be lawful under section 205 if, 

after notice and opportunity for hearing, the Commission finds that 

such rate or charge results from the receipt of any undue preference or advantage from an electric utility which is an associate 

company or an affiliate of the exempt wholesale generator. For purVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00066 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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67 Sec. 215 FEDERAL POWER ACT 

15The reference to ‘‘section 2(a) of the Public Utility Holding Company Act of 2005’’ in section 

214 probably should be a reference to ‘‘section 1262 of the Public Utility Holding Company Act 

of 2005’’.

poses of this section, the terms ‘‘associate company’’ and ‘‘affiliate’’ 

shall have the same meaning as provided in section 2(a) of the 

Public Utility Holding Company Act of 2005 15. 

ø16 U.S.C. 824m¿

SEC. 215. ELECTRIC RELIABILITY. 

(a) DEFINITIONS.—For purposes of this section: 

(1) The term ‘‘bulk-power system’’ means—

(A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and 

(B) electric energy from generation facilities needed to 

maintain transmission system reliability. 

The term does not include facilities used in the local distribution of electric energy. 

(2) The terms ‘‘Electric Reliability Organization’’ and 

‘‘ERO’’ mean the organization certified by the Commission 

under subsection (c) the purpose of which is to establish and 

enforce reliability standards for the bulk-power system, subject 

to Commission review. 

(3) The term ‘‘reliability standard’’ means a requirement, 

approved by the Commission under this section, to provide for 

reliable operation of the bulk-power system. The term includes 

requirements for the operation of existing bulk-power system 

facilities, including cybersecurity protection, and the design of 

planned additions or modifications to such facilities to the extent necessary to provide for reliable operation of the bulkpower system, but the term does not include any requirement 

to enlarge such facilities or to construct new transmission capacity or generation capacity. 

(4) The term ‘‘reliable operation’’ means operating the elements of the bulk-power system within equipment and electric 

system thermal, voltage, and stability limits so that instability, 

uncontrolled separation, or cascading failures of such system 

will not occur as a result of a sudden disturbance, including a 

cybersecurity incident, or unanticipated failure of system elements. 

(5) The term ‘‘Interconnection’’ means a geographic area in 

which the operation of bulk-power system components is synchronized such that the failure of one or more of such components may adversely affect the ability of the operators of other 

components within the system to maintain reliable operation of 

the facilities within their control. 

(6) The term ‘‘transmission organization’’ means a Regional Transmission Organization, Independent System Operator, independent transmission provider, or other transmission 

organization finally approved by the Commission for the operation of transmission facilities. 

(7) The term ‘‘regional entity’’ means an entity having enforcement authority pursuant to subsection (e)(4). 


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(8) The term ‘‘cybersecurity incident’’ means a malicious 

act or suspicious event that disrupts, or was an attempt to disrupt, the operation of those programmable electronic devices 

and communication networks including hardware, software 

and data that are essential to the reliable operation of the bulk 

power system. 

(b) JURISDICTION AND APPLICABILITY.—(1) The Commission 

shall have jurisdiction, within the United States, over the ERO certified by the Commission under subsection (c), any regional entities, and all users, owners and operators of the bulk-power system, 

including but not limited to the entities described in section 201(f), 

for purposes of approving reliability standards established under 

this section and enforcing compliance with this section. All users, 

owners and operators of the bulk-power system shall comply with 

reliability standards that take effect under this section. 

(2) The Commission shall issue a final rule to implement the 

requirements of this section not later than 180 days after the date 

of enactment of this section. 

(c) CERTIFICATION.—Following the issuance of a Commission 

rule under subsection (b)(2), any person may submit an application 

to the Commission for certification as the Electric Reliability Organization. The Commission may certify one such ERO if the Commission determines that such ERO—

(1) has the ability to develop and enforce, subject to subsection (e)(2), reliability standards that provide for an adequate 

level of reliability of the bulk-power system; and 

(2) has established rules that—

(A) assure its independence of the users and owners 

and operators of the bulk-power system, while assuring 

fair stakeholder representation in the selection of its directors and balanced decisionmaking in any ERO committee 

or subordinate organizational structure; 

(B) allocate equitably reasonable dues, fees, and other 

charges among end users for all activities under this section; 

(C) provide fair and impartial procedures for enforcement of reliability standards through the imposition of 

penalties in accordance with subsection (e) (including limitations on activities, functions, or operations, or other appropriate sanctions); 

(D) provide for reasonable notice and opportunity for 

public comment, due process, openness, and balance of interests in developing reliability standards and otherwise 

exercising its duties; and 

(E) provide for taking, after certification, appropriate 

steps to gain recognition in Canada and Mexico. 

(d) RELIABILITY STANDARDS.—(1) The Electric Reliability Organization shall file each reliability standard or modification to a reliability standard that it proposes to be made effective under this 

section with the Commission. 

(2) The Commission may approve, by rule or order, a proposed 

reliability standard or modification to a reliability standard if it determines that the standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. The Commission 


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69 Sec. 215 FEDERAL POWER ACT 

shall give due weight to the technical expertise of the Electric Reliability Organization with respect to the content of a proposed 

standard or modification to a reliability standard and to the technical expertise of a regional entity organized on an Interconnectionwide basis with respect to a reliability standard to be applicable 

within that Interconnection, but shall not defer with respect to the 

effect of a standard on competition. A proposed standard or modification shall take effect upon approval by the Commission. 

(3) The Electric Reliability Organization shall rebuttably presume that a proposal from a regional entity organized on an Interconnection-wide basis for a reliability standard or modification to 

a reliability standard to be applicable on an Interconnection-wide 

basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest. 

(4) The Commission shall remand to the Electric Reliability 

Organization for further consideration a proposed reliability standard or a modification to a reliability standard that the Commission 

disapproves in whole or in part. 

(5) The Commission, upon its own motion or upon complaint, 

may order the Electric Reliability Organization to submit to the 

Commission a proposed reliability standard or a modification to a 

reliability standard that addresses a specific matter if the Commission considers such a new or modified reliability standard appropriate to carry out this section. 

(6) The final rule adopted under subsection (b)(2) shall include 

fair processes for the identification and timely resolution of any 

conflict between a reliability standard and any function, rule, 

order, tariff, rate schedule, or agreement accepted, approved, or ordered by the Commission applicable to a transmission organization. 

Such transmission organization shall continue to comply with such 

function, rule, order, tariff, rate schedule or agreement accepted, 

approved, or ordered by the Commission until—

(A) the Commission finds a conflict exists between a reliability standard and any such provision; 

(B) the Commission orders a change to such provision pursuant to section 206 of this part; and 

(C) the ordered change becomes effective under this part. 

If the Commission determines that a reliability standard needs to 

be changed as a result of such a conflict, it shall order the ERO 

to develop and file with the Commission a modified reliability 

standard under paragraph (4) or (5) of this subsection. 

(e) ENFORCEMENT.—(1) The ERO may impose, subject to paragraph (2), a penalty on a user or owner or operator of the bulkpower system for a violation of a reliability standard approved by 

the Commission under subsection (d) if the ERO, after notice and 

an opportunity for a hearing—

(A) finds that the user or owner or operator has violated 

a reliability standard approved by the Commission under subsection (d); and 

(B) files notice and the record of the proceeding with the 

Commission. 

(2) A penalty imposed under paragraph (1) may take effect not 

earlier than the 31st day after the ERO files with the Commission 

notice of the penalty and the record of proceedings. Such penalty 


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Sec. 215 FEDERAL POWER ACT 70

shall be subject to review by the Commission, on its own motion 

or upon application by the user, owner or operator that is the subject of the penalty filed within 30 days after the date such notice 

is filed with the Commission. Application to the Commission for review, or the initiation of review by the Commission on its own motion, shall not operate as a stay of such penalty unless the Commission otherwise orders upon its own motion or upon application 

by the user, owner or operator that is the subject of such penalty. 

In any proceeding to review a penalty imposed under paragraph 

(1), the Commission, after notice and opportunity for hearing 

(which hearing may consist solely of the record before the ERO and 

opportunity for the presentation of supporting reasons to affirm, 

modify, or set aside the penalty), shall by order affirm, set aside, 

reinstate, or modify the penalty, and, if appropriate, remand to the 

ERO for further proceedings. The Commission shall implement expedited procedures for such hearings. 

(3) On its own motion or upon complaint, the Commission may 

order compliance with a reliability standard and may impose a 

penalty against a user or owner or operator of the bulk-power system if the Commission finds, after notice and opportunity for a 

hearing, that the user or owner or operator of the bulk-power system has engaged or is about to engage in any acts or practices that 

constitute or will constitute a violation of a reliability standard. 

(4) The Commission shall issue regulations authorizing the 

ERO to enter into an agreement to delegate authority to a regional 

entity for the purpose of proposing reliability standards to the ERO 

and enforcing reliability standards under paragraph (1) if—

(A) the regional entity is governed by—

(i) an independent board; 

(ii) a balanced stakeholder board; or 

(iii) a combination independent and balanced stakeholder board. 

(B) the regional entity otherwise satisfies the provisions of 

subsection (c)(1) and (2); and 

(C) the agreement promotes effective and efficient administration of bulk-power system reliability. 

The Commission may modify such delegation. The ERO and the 

Commission shall rebuttably presume that a proposal for delegation to a regional entity organized on an Interconnection-wide basis 

promotes effective and efficient administration of bulk-power system reliability and should be approved. Such regulation may provide that the Commission may assign the ERO’s authority to enforce reliability standards under paragraph (1) directly to a regional entity consistent with the requirements of this paragraph. 

(5) The Commission may take such action as is necessary or 

appropriate against the ERO or a regional entity to ensure compliance with a reliability standard or any Commission order affecting 

the ERO or a regional entity. 

(6) Any penalty imposed under this section shall bear a reasonable relation to the seriousness of the violation and shall take into 

consideration the efforts of such user, owner, or operator to remedy 

the violation in a timely manner. 

(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZATION RULES.—

The Electric Reliability Organization shall file with the CommisVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00070 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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71 Sec. 215 FEDERAL POWER ACT 

sion for approval any proposed rule or proposed rule change, accompanied by an explanation of its basis and purpose. The Commission, upon its own motion or complaint, may propose a change 

to the rules of the ERO. A proposed rule or proposed rule change 

shall take effect upon a finding by the Commission, after notice 

and opportunity for comment, that the change is just, reasonable, 

not unduly discriminatory or preferential, is in the public interest, 

and satisfies the requirements of subsection (c). 

(g) RELIABILITY REPORTS.—The ERO shall conduct periodic assessments of the reliability and adequacy of the bulk-power system 

in North America. 

(h) COORDINATION WITH CANADA AND MEXICO.—The President 

is urged to negotiate international agreements with the governments of Canada and Mexico to provide for effective compliance 

with reliability standards and the effectiveness of the ERO in the 

United States and Canada or Mexico. 

(i) SAVINGS PROVISIONS.—(1) The ERO shall have authority to 

develop and enforce compliance with reliability standards for only 

the bulk-power system. 

(2) This section does not authorize the ERO or the Commission 

to order the construction of additional generation or transmission 

capacity or to set and enforce compliance with standards for adequacy or safety of electric facilities or services. 

(3) Nothing in this section shall be construed to preempt any 

authority of any State to take action to ensure the safety, adequacy, and reliability of electric service within that State, as long 

as such action is not inconsistent with any reliability standard, except that the State of New York may establish rules that result in 

greater reliability within that State, as long as such action does not 

result in lesser reliability outside the State than that provided by 

the reliability standards. 

(4) Within 90 days of the application of the Electric Reliability 

Organization or other affected party, and after notice and opportunity for comment, the Commission shall issue a final order determining whether a State action is inconsistent with a reliability 

standard, taking into consideration any recommendation of the 

ERO. 

(5) The Commission, after consultation with the ERO and the 

State taking action, may stay the effectiveness of any State action, 

pending the Commission’s issuance of a final order. 

(j) REGIONAL ADVISORY BODIES.—The Commission shall establish a regional advisory body on the petition of at least two-thirds 

of the States within a region that have more than one-half of their 

electric load served within the region. A regional advisory body 

shall be composed of one member from each participating State in 

the region, appointed by the Governor of each State, and may include representatives of agencies, States, and provinces outside the 

United States. A regional advisory body may provide advice to the 

Electric Reliability Organization, a regional entity, or the Commission regarding the governance of an existing or proposed regional 

entity within the same region, whether a standard proposed to 

apply within the region is just, reasonable, not unduly discriminatory or preferential, and in the public interest, whether fees proposed to be assessed within the region are just, reasonable, not unVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00071 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 215A FEDERAL POWER ACT 72

duly discriminatory or preferential, and in the public interest and 

any other responsibilities requested by the Commission. The Commission may give deference to the advice of any such regional advisory body if that body is organized on an Interconnection-wide 

basis. 

(k) ALASKA AND HAWAII.—The provisions of this section do not 

apply to Alaska or Hawaii.

ø16 U.S.C. 824o¿

SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECURITY. 

(a) DEFINITIONS.—For purposes of this section: 

(1) BULK-POWER SYSTEM; ELECTRIC RELIABILITY ORGANIZA- TION; REGIONAL ENTITY.—The terms ‘‘bulk-power system’’, 

‘‘Electric Reliability Organization’’, and ‘‘regional entity’’ have 

the meanings given such terms in paragraphs (1), (2), and (7) 

of section 215(a), respectively. 

(2) CRITICAL ELECTRIC INFRASTRUCTURE.—The term ‘‘critical electric infrastructure’’ means a system or asset of the 

bulk-power system, whether physical or virtual, the incapacity 

or destruction of which would negatively affect national security, economic security, public health or safety, or any combination of such matters. 

(3) CRITICAL ELECTRIC INFRASTRUCTURE INFORMATION.— The term ‘‘critical electric infrastructure information’’ means 

information related to critical electric infrastructure, or proposed critical electrical infrastructure, generated by or provided to the Commission or other Federal agency, other than 

classified national security information, that is designated as 

critical electric infrastructure information by the Commission 

or the Secretary pursuant to subsection (d). Such term includes 

information that qualifies as critical energy infrastructure information under the Commission’s regulations. 

(4) DEFENSE CRITICAL ELECTRIC INFRASTRUCTURE.—The 

term ‘‘defense critical electric infrastructure’’ means any electric infrastructure located in any of the 48 contiguous States 

or the District of Columbia that serves a facility designated by 

the Secretary pursuant to subsection (c), but is not owned or 

operated by the owner or operator of such facility. 

(5) ELECTROMAGNETIC PULSE.—The term ‘‘electromagnetic 

pulse’’ means 1 or more pulses of electromagnetic energy emitted by a device capable of disabling or disrupting operation of, 

or destroying, electronic devices or communications networks, 

including hardware, software, and data, by means of such a 

pulse. 

(6) GEOMAGNETIC STORM.—The term ‘‘geomagnetic storm’’ 

means a temporary disturbance of the Earth’s magnetic field 

resulting from solar activity. 

(7) GRID SECURITY EMERGENCY.—The term ‘‘grid security 

emergency’’ means the occurrence or imminent danger of—

(A)(i) a malicious act using electronic communication 

or an electromagnetic pulse, or a geomagnetic storm event, 

that could disrupt the operation of those electronic devices 

or communications networks, including hardware, software, and data, that are essential to the reliability of critVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00072 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
73 Sec. 215A FEDERAL POWER ACT 

ical electric infrastructure or of defense critical electric infrastructure; and 

(ii) disruption of the operation of such devices or networks, with significant adverse effects on the reliability of 

critical electric infrastructure or of defense critical electric 

infrastructure, as a result of such act or event; or 

(B)(i) a direct physical attack on critical electric infrastructure or on defense critical electric infrastructure; and 

(ii) significant adverse effects on the reliability of critical electric infrastructure or of defense critical electric infrastructure as a result of such physical attack. 

(8) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Energy. 

(b) AUTHORITY TO ADDRESS GRID SECURITY EMERGENCY.— 

(1) AUTHORITY.—Whenever the President issues and provides to the Secretary a written directive or determination 

identifying a grid security emergency, the Secretary may, with 

or without notice, hearing, or report, issue such orders for 

emergency measures as are necessary in the judgment of the 

Secretary to protect or restore the reliability of critical electric 

infrastructure or of defense critical electric infrastructure during such emergency. As soon as practicable but not later than 

180 days after the date of enactment of this section, the Secretary shall, after notice and opportunity for comment, establish rules of procedure that ensure that such authority can be 

exercised expeditiously. 

(2) NOTIFICATION OF CONGRESS.—Whenever the President 

issues and provides to the Secretary a written directive or determination under paragraph (1), the President shall promptly 

notify congressional committees of relevant jurisdiction, including the Committee on Energy and Commerce of the House of 

Representatives and the Committee on Energy and Natural 

Resources of the Senate, of the contents of, and justification 

for, such directive or determination. 

(3) CONSULTATION.—Before issuing an order for emergency 

measures under paragraph (1), the Secretary shall, to the extent practicable in light of the nature of the grid security emergency and the urgency of the need for action, consult with appropriate governmental authorities in Canada and Mexico, entities described in paragraph (4), the Electricity Sub-sector Coordinating Council, the Commission, and other appropriate 

Federal agencies regarding implementation of such emergency 

measures. 

(4) APPLICATION.—An order for emergency measures under 

this subsection may apply to—

(A) the Electric Reliability Organization; 

(B) a regional entity; or 

(C) any owner, user, or operator of critical electric infrastructure or of defense critical electric infrastructure 

within the United States. 

(5) EXPIRATION AND REISSUANCE.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), an order for emergency measures issued under paraVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00073 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 215A FEDERAL POWER ACT 74

graph (1) shall expire no later than 15 days after its 

issuance. 

(B) EXTENSIONS.—The Secretary may reissue an order 

for emergency measures issued under paragraph (1) for 

subsequent periods, not to exceed 15 days for each such 

period, provided that the President, for each such period, 

issues and provides to the Secretary a written directive or 

determination that the grid security emergency identified 

under paragraph (1) continues to exist or that the emergency measure continues to be required. 

(6) COST RECOVERY.— 

(A) CRITICAL ELECTRIC INFRASTRUCTURE.—If the Commission determines that owners, operators, or users of critical electric infrastructure have incurred substantial costs 

to comply with an order for emergency measures issued 

under this subsection and that such costs were prudently 

incurred and cannot reasonably be recovered through regulated rates or market prices for the electric energy or services sold by such owners, operators, or users, the Commission shall, consistent with the requirements of section 205, 

after notice and an opportunity for comment, establish a 

mechanism that permits such owners, operators, or users 

to recover such costs. 

(B) DEFENSE CRITICAL ELECTRIC INFRASTRUCTURE.—To 

the extent the owner or operator of defense critical electric 

infrastructure is required to take emergency measures 

pursuant to an order issued under this subsection, the 

owners or operators of a critical defense facility or facilities 

designated by the Secretary pursuant to subsection (c) that 

rely upon such infrastructure shall bear the full incremental costs of the measures. 

(7) TEMPORARY ACCESS TO CLASSIFIED INFORMATION.—The 

Secretary, and other appropriate Federal agencies, shall, to the 

extent practicable and consistent with their obligations to protect classified information, provide temporary access to classified information related to a grid security emergency for which 

emergency measures are issued under paragraph (1) to key 

personnel of any entity subject to such emergency measures to 

enable optimum communication between the entity and the 

Secretary and other appropriate Federal agencies regarding 

the grid security emergency. 

(c) DESIGNATION OF CRITICAL DEFENSE FACILITIES.—Not later 

than 180 days after the date of enactment of this section, the Secretary, in consultation with other appropriate Federal agencies and 

appropriate owners, users, or operators of infrastructure that may 

be defense critical electric infrastructure, shall identify and designate facilities located in the 48 contiguous States and the District 

of Columbia that are—

(1) critical to the defense of the United States; and 

(2) vulnerable to a disruption of the supply of electric energy provided to such facility by an external provider. 

The Secretary may, in consultation with appropriate Federal agencies and appropriate owners, users, or operators of defense critical 


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electric infrastructure, periodically revise the list of designated facilities as necessary. 

(d) PROTECTION AND SHARING OF CRITICAL ELECTRIC INFRA- STRUCTURE INFORMATION.— (1) PROTECTION OF CRITICAL ELECTRIC INFRASTRUCTURE IN- FORMATION.—Critical electric infrastructure information—

(A) shall be exempt from disclosure under section 

552(b)(3) of title 5, United States Code; and 

(B) shall not be made available by any Federal, State, 

political subdivision or tribal authority pursuant to any 

Federal, State, political subdivision or tribal law requiring 

public disclosure of information or records. 

(2) DESIGNATION AND SHARING OF CRITICAL ELECTRIC IN- FRASTRUCTURE INFORMATION.—Not later than one year after 

the date of enactment of this section, the Commission, after 

consultation with the Secretary, shall promulgate such regulations as necessary to—

(A) establish criteria and procedures to designate information as critical electric infrastructure information; 

(B) prohibit the unauthorized disclosure of critical 

electric infrastructure information; 

(C) ensure there are appropriate sanctions in place for 

Commissioners, officers, employees, or agents of the Commission or the Department of Energy who knowingly and 

willfully disclose critical electric infrastructure information 

in a manner that is not authorized under this section; and 

(D) taking into account standards of the Electric Reliability Organization, facilitate voluntary sharing of critical 

electric infrastructure information with, between, and by—

(i) Federal, State, political subdivision, and tribal 

authorities; 

(ii) the Electric Reliability Organization; 

(iii) regional entities; 

(iv) information sharing and analysis centers established pursuant to Presidential Decision Directive 

63; 

(v) owners, operators, and users of critical electric 

infrastructure in the United States; and 

(vi) other entities determined appropriate by the 

Commission. 

(3) AUTHORITY TO DESIGNATE.—Information may be designated by the Commission or the Secretary as critical electric 

infrastructure information pursuant to the criteria and procedures established by the Commission under paragraph (2)(A). 

(4) CONSIDERATIONS.—In exercising their respective authorities under this subsection, the Commission and the Secretary shall take into consideration the role of State commissions in reviewing the prudence and cost of investments, determining the rates and terms of conditions for electric services, 

and ensuring the safety and reliability of the bulk-power system and distribution facilities within their respective jurisdictions. 

(5) PROTOCOLS.—The Commission and the Secretary shall, 

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velop protocols for the voluntary sharing of critical electric infrastructure information with Canadian and Mexican authorities and owners, operators, and users of the bulk-power system 

outside the United States. 

(6) NO REQUIRED SHARING OF INFORMATION.—Nothing in 

this section shall require a person or entity in possession of 

critical electric infrastructure information to share such information with Federal, State, political subdivision, or tribal authorities, or any other person or entity. 

(7) SUBMISSION OF INFORMATION TO CONGRESS.—Nothing 

in this section shall permit or authorize the withholding of information from Congress, any committee or subcommittee 

thereof, or the Comptroller General. 

(8) DISCLOSURE OF NONPROTECTED INFORMATION.—In implementing this section, the Commission and the Secretary 

shall segregate critical electric infrastructure information or information that reasonably could be expected to lead to the disclosure of the critical electric infrastructure information within 

documents and electronic communications, wherever feasible, 

to facilitate disclosure of information that is not designated as 

critical electric infrastructure information. 

(9) DURATION OF DESIGNATION.—Information may not be 

designated as critical electric infrastructure information for 

longer than 5 years, unless specifically re-designated by the 

Commission or the Secretary, as appropriate. 

(10) REMOVAL OF DESIGNATION.—The Commission or the 

Secretary, as appropriate, shall remove the designation of critical electric infrastructure information, in whole or in part, 

from a document or electronic communication if the Commission or the Secretary, as appropriate, determines that the unauthorized disclosure of such information could no longer be 

used to impair the security or reliability of the bulk-power system or distribution facilities. 

(11) JUDICIAL REVIEW OF DESIGNATIONS.—Notwithstanding 

section 313(b), with respect to a petition filed by a person to 

which an order under this section applies, any determination 

by the Commission or the Secretary concerning the designation 

of critical electric infrastructure information under this subsection shall be subject to review under chapter 7 of title 5, 

United States Code, except that such review shall be brought 

in the district court of the United States in the district in 

which the complainant resides, or has his principal place of 

business, or in the District of Columbia. In such a case the 

court shall examine in camera the contents of documents or 

electronic communications that are the subject of the determination under review to determine whether such documents 

or any part thereof were improperly designated or not designated as critical electric infrastructure information. 

(e) SECURITY CLEARANCES.—The Secretary shall facilitate and, 

to the extent practicable, expedite the acquisition of adequate security clearances by key personnel of any entity subject to the requirements of this section, to enable optimum communication with 

Federal agencies regarding threats to the security of the critical 

electric infrastructure. The Secretary, the Commission, and other 


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appropriate Federal agencies shall, to the extent practicable and 

consistent with their obligations to protect classified and critical 

electric infrastructure information, share timely actionable information regarding grid security with appropriate key personnel of 

owners, operators, and users of the critical electric infrastructure. 

(f) CLARIFICATIONS OF LIABILITY.— 

(1) COMPLIANCE WITH OR VIOLATION OF THIS ACT.—Except 

as provided in paragraph (4), to the extent any action or omission taken by an entity that is necessary to comply with an 

order for emergency measures issued under subsection (b)(1), 

including any action or omission taken to voluntarily comply 

with such order, results in noncompliance with, or causes such 

entity not to comply with any rule, order, regulation, or provision of this Act, including any reliability standard approved by 

the Commission pursuant to section 215, such action or omission shall not be considered a violation of such rule, order, regulation, or provision. 

(2) RELATION TO SECTION 202(C).—Except as provided in 

paragraph (4), an action or omission taken by an owner, operator, or user of critical electric infrastructure or of defense critical electric infrastructure to comply with an order for emergency measures issued under subsection (b)(1) shall be treated 

as an action or omission taken to comply with an order issued 

under section 202(c) for purposes of such section. 

(3) SHARING OR RECEIPT OF INFORMATION.—No cause of action shall lie or be maintained in any Federal or State court 

for the sharing or receipt of information under, and that is conducted in accordance with, subsection (d). 

(4) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to require dismissal of a cause of action 

against an entity that, in the course of complying with an 

order for emergency measures issued under subsection (b)(1) 

by taking an action or omission for which they would be liable 

but for paragraph (1) or (2), takes such action or omission in 

a grossly negligent manner.

ø16 U.S.C. 824o–1¿

SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES. 

(a) DESIGNATION OF NATIONAL INTEREST ELECTRIC TRANSMISSION CORRIDORS.—(1) Not later than 1 year after the date of enactment of this section and every 3 years thereafter, the Secretary 

of Energy (referred to in this section as the ‘‘Secretary’’), in consultation with affected States, shall conduct a study of electric 

transmission congestion. 

(2) After considering alternatives and recommendations from 

interested parties (including an opportunity for comment from affected States), the Secretary shall issue a report, based on the 

study, which may designate any geographic area experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers as a national interest electric transmission corridor. 


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(3) The Secretary shall conduct the study and issue the report 

in consultation with any appropriate regional entity referred to in 

section 215. 

(4) In determining whether to designate a national interest 

electric transmission corridor under paragraph (2), the Secretary 

may consider whether—

(A) the economic vitality and development of the corridor, 

or the end markets served by the corridor, may be constrained 

by lack of adequate or reasonably priced electricity; 

(B)(i) economic growth in the corridor, or the end markets 

served by the corridor, may be jeopardized by reliance on limited sources of energy; and 

(ii) a diversification of supply is warranted; 

(C) the energy independence of the United States would be 

served by the designation; 

(D) the designation would be in the interest of national energy policy; and 

(E) the designation would enhance national defense and 

homeland security. 

(b) CONSTRUCTION PERMIT.—Except as provided in subsection 

(i), the Commission may, after notice and an opportunity for hearing, issue one or more permits for the construction or modification 

of electric transmission facilities in a national interest electric 

transmission corridor designated by the Secretary under subsection 

(a) if the Commission finds that—

(1)(A) a State in which the transmission facilities are to be 

constructed or modified does not have authority to—

(i) approve the siting of the facilities; or 

(ii) consider the interstate benefits expected to be 

achieved by the proposed construction or modification of 

transmission facilities in the State; 

(B) the applicant for a permit is a transmitting utility 

under this Act but does not qualify to apply for a permit or 

siting approval for the proposed project in a State because the 

applicant does not serve end-use customers in the State; or 

(C) a State commission or other entity that has authority 

to approve the siting of the facilities has—

(i) withheld approval for more than 1 year after the 

filing of an application seeking approval pursuant to applicable law or 1 year after the designation of the relevant 

national interest electric transmission corridor, whichever 

is later; or 

(ii) conditioned its approval in such a manner that the 

proposed construction or modification will not significantly 

reduce transmission congestion in interstate commerce or 

is not economically feasible; 

(2) the facilities to be authorized by the permit will be 

used for the transmission of electric energy in interstate commerce; 

(3) the proposed construction or modification is consistent 

with the public interest; 

(4) the proposed construction or modification will significantly reduce transmission congestion in interstate commerce 

and protects or benefits consumers; 


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(5) the proposed construction or modification is consistent 

with sound national energy policy and will enhance energy 

independence; and 

(6) the proposed modification will maximize, to the extent 

reasonable and economical, the transmission capabilities of existing towers or structures. 

(c) PERMIT APPLICATIONS.—(1) Permit applications under subsection (b) shall be made in writing to the Commission. 

(2) The Commission shall issue rules specifying—

(A) the form of the application; 

(B) the information to be contained in the application; and 

(C) the manner of service of notice of the permit application on interested persons. 

(d) COMMENTS.—In any proceeding before the Commission 

under subsection (b), the Commission shall afford each State in 

which a transmission facility covered by the permit is or will be located, each affected Federal agency and Indian tribe, private property owners, and other interested persons, a reasonable opportunity 

to present their views and recommendations with respect to the 

need for and impact of a facility covered by the permit. 

(e) RIGHTS-OF-WAY.—(1) In the case of a permit under subsection (b) for electric transmission facilities to be located on property other than property owned by the United States or a State, 

if the permit holder cannot acquire by contract, or is unable to 

agree with the owner of the property to the compensation to be 

paid for, the necessary right-of-way to construct or modify the 

transmission facilities, the permit holder may acquire the right-ofway by the exercise of the right of eminent domain in the district 

court of the United States for the district in which the property 

concerned is located, or in the appropriate court of the State in 

which the property is located. 

(2) Any right-of-way acquired under paragraph (1) shall be 

used exclusively for the construction or modification of electric 

transmission facilities within a reasonable period of time after the 

acquisition. 

(3) The practice and procedure in any action or proceeding 

under this subsection in the district court of the United States 

shall conform as nearly as practicable to the practice and procedure 

in a similar action or proceeding in the courts of the State in which 

the property is located. 

(4) Nothing in this subsection shall be construed to authorize 

the use of eminent domain to acquire a right-of-way for any purpose other than the construction, modification, operation, or maintenance of electric transmission facilities and related facilities. The 

right-of-way cannot be used for any other purpose, and the rightof-way shall terminate upon the termination of the use for which 

the right-of-way was acquired. 

(f) COMPENSATION.—(1) Any right-of-way acquired pursuant to 

subsection (e) shall be considered a taking of private property for 

which just compensation is due. 

(2) Just compensation shall be an amount equal to the fair 

market value (including applicable severance damages) of the property taken on the date of the exercise of eminent domain authority. 


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(g) STATE LAW.—Nothing in this section precludes any person 

from constructing or modifying any transmission facility in accordance with State law. 

(h) COORDINATION OF FEDERAL AUTHORIZATIONS FOR TRANSMISSION FACILITIES.—(1) In this subsection: 

(A) The term ‘‘Federal authorization’’ means any authorization required under Federal law in order to site a transmission facility. 

(B) The term ‘‘Federal authorization’’ includes such permits, special use authorizations, certifications, opinions, or 

other approvals as may be required under Federal law in order 

to site a transmission facility. 

(2) The Department of Energy shall act as the lead agency for 

purposes of coordinating all applicable Federal authorizations and 

related environmental reviews of the facility. 

(3) To the maximum extent practicable under applicable Federal law, the Secretary shall coordinate the Federal authorization 

and review process under this subsection with any Indian tribes, 

multistate entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the 

facility, to ensure timely and efficient review and permit decisions. 

(4)(A) As head of the lead agency, the Secretary, in consultation with agencies responsible for Federal authorizations and, as 

appropriate, with Indian tribes, multistate entities, and State agencies that are willing to coordinate their own separate permitting 

and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and 

Federal authorization decisions relating to, the proposed facility. 

(B) The Secretary shall ensure that, once an application has 

been submitted with such data as the Secretary considers necessary, all permit decisions and related environmental reviews 

under all applicable Federal laws shall be completed—

(i) within 1 year; or 

(ii) if a requirement of another provision of Federal law 

does not permit compliance with clause (i), as soon thereafter 

as is practicable. 

(C) The Secretary shall provide an expeditious pre-application 

mechanism for prospective applicants to confer with the agencies 

involved to have each such agency determine and communicate to 

the prospective applicant not later than 60 days after the prospective applicant submits a request for such information concerning—

(i) the likelihood of approval for a potential facility; and 

(ii) key issues of concern to the agencies and public. 

(5)(A) As lead agency head, the Secretary, in consultation with 

the affected agencies, shall prepare a single environmental review 

document, which shall be used as the basis for all decisions on the 

proposed project under Federal law. 

(B) The Secretary and the heads of other agencies shall 

streamline the review and permitting of transmission within corridors designated under section 503 of the Federal Land Policy and 

Management Act (43 U.S.C. 1763) by fully taking into account prior 

analyses and decisions relating to the corridors. 


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(C) The document shall include consideration by the relevant 

agencies of any applicable criteria or other matters as required 

under applicable law. 

(6)(A) If any agency has denied a Federal authorization required for a transmission facility, or has failed to act by the deadline established by the Secretary pursuant to this section for deciding whether to issue the authorization, the applicant or any State 

in which the facility would be located may file an appeal with the 

President, who shall, in consultation with the affected agency, review the denial or failure to take action on the pending application. 

(B) Based on the overall record and in consultation with the affected agency, the President may—

(i) issue the necessary authorization with any appropriate 

conditions; or 

(ii) deny the application. 

(C) The President shall issue a decision not later than 90 days 

after the date of the filing of the appeal. 

(D) In making a decision under this paragraph, the President 

shall comply with applicable requirements of Federal law, including any requirements of—

(i) the National Forest Management Act of 1976 (16 U.S.C. 

472a et seq.); 

(ii) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 

seq.); 

(iii) the Federal Water Pollution Control Act (33 U.S.C. 

1251 et seq.); 

(iv) the National Environmental Policy Act of 1969 (42 

U.S.C. 4321 et seq.); and 

(v) the Federal Land Policy and Management Act of 1976 

(43 U.S.C. 1701 et seq.). 

(7)(A) Not later than 18 months after the date of enactment of 

this section, the Secretary shall issue any regulations necessary to 

implement this subsection. 

(B)(i) Not later than 1 year after the date of enactment of this 

section, the Secretary and the heads of all Federal agencies with 

authority to issue Federal authorizations shall enter into a memorandum of understanding to ensure the timely and coordinated review and permitting of electricity transmission facilities. 

(ii) Interested Indian tribes, multistate entities, and State 

agencies may enter the memorandum of understanding. 

(C) The head of each Federal agency with authority to issue a 

Federal authorization shall designate a senior official responsible 

for, and dedicate sufficient other staff and resources to ensure, full 

implementation of the regulations and memorandum required 

under this paragraph. 

(8)(A) Each Federal land use authorization for an electricity 

transmission facility shall be issued—

(i) for a duration, as determined by the Secretary, commensurate with the anticipated use of the facility; and 

(ii) with appropriate authority to manage the right-of-way 

for reliability and environmental protection. 

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count reliance on such electricity infrastructure, recognizing the 

importance of the authorization for public health, safety, and economic welfare and as a legitimate use of Federal land. 

(9) In exercising the responsibilities under this section, the 

Secretary shall consult regularly with—

(A) the Federal Energy Regulatory Commission; 

(B) electric reliability organizations (including related regional entities) approved by the Commission; and 

(C) Transmission Organizations approved by the Commission. 

(i) INTERSTATE COMPACTS.—(1) The consent of Congress is 

given for three or more contiguous States to enter into an interstate compact, subject to approval by Congress, establishing regional transmission siting agencies to—

(A) facilitate siting of future electric energy transmission 

facilities within those States; and 

(B) carry out the electric energy transmission siting responsibilities of those States. 

(2) The Secretary may provide technical assistance to regional 

transmission siting agencies established under this subsection. 

(3) The regional transmission siting agencies shall have the authority to review, certify, and permit siting of transmission facilities, including facilities in national interest electric transmission 

corridors (other than facilities on property owned by the United 

States). 

(4) The Commission shall have no authority to issue a permit 

for the construction or modification of an electric transmission facility within a State that is a party to a compact, unless the members of the compact are in disagreement and the Secretary makes, 

after notice and an opportunity for a hearing, the finding described 

in subsection (b)(1)(C). 

(j) RELATIONSHIP TO OTHER LAWS.—(1) Except as specifically 

provided, nothing in this section affects any requirement of an environmental law of the United States, including the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

(2) Subsection (h)(6) shall not apply to any unit of the National 

Park System, the National Wildlife Refuge System, the National 

Wild and Scenic Rivers System, the National Trails System, the 

National Wilderness Preservation System, or a National Monument. 

(k) ERCOT.—This section shall not apply within the area referred to in section 212(k)(2)(A).

ø16 U.S.C. 824p¿

SEC. 217. NATIVE LOAD SERVICE OBLIGATION. 

(a) DEFINITIONS.—In this section: 

(1) The term ‘‘distribution utility’’ means an electric utility 

that has a service obligation to end-users or to a State utility 

or electric cooperative that, directly or indirectly, through one 

or more additional State utilities or electric cooperatives, provides electric service to end-users. 

(2) The term ‘‘load-serving entity’’ means a distribution 

utility or an electric utility that has a service obligation. 


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(3) The term ‘‘service obligation’’ means a requirement applicable to, or the exercise of authority granted to, an electric 

utility under Federal, State, or local law or under long-term 

contracts to provide electric service to end-users or to a distribution utility. 

(4) The term ‘‘State utility’’ means a State or any political 

subdivision of a State, or any agency, authority, or instrumentality of any one or more of the foregoing, or a corporation that 

is wholly owned, directly or indirectly, by any one or more of 

the foregoing, competent to carry on the business of developing, 

transmitting, utilizing, or distributing power. 

(b) MEETING SERVICE OBLIGATIONS.—(1) Paragraph (2) applies 

to any load-serving entity that, as of the date of enactment of this 

section—

(A) owns generation facilities, markets the output of Federal generation facilities, or holds rights under one or more 

wholesale contracts to purchase electric energy, for the purpose 

of meeting a service obligation; and 

(B) by reason of ownership of transmission facilities, or one 

or more contracts or service agreements for firm transmission 

service, holds firm transmission rights for delivery of the output of the generation facilities or the purchased energy to meet 

the service obligation. 

(2) Any load-serving entity described in paragraph (1) is entitled to use the firm transmission rights, or, equivalent tradable or 

financial transmission rights, in order to deliver the output or purchased energy, or the output of other generating facilities or purchased energy to the extent deliverable using the rights, to the extent required to meet the service obligation of the load-serving entity. 

(3)(A) To the extent that all or a portion of the service obligation covered by the firm transmission rights or equivalent tradable 

or financial transmission rights is transferred to another load-serving entity, the successor load-serving entity shall be entitled to use 

the firm transmission rights or equivalent tradable or financial 

transmission rights associated with the transferred service obligation. 

(B) Subsequent transfers to another load-serving entity, or 

back to the original load-serving entity, shall be entitled to the 

same rights. 

(4) The Commission shall exercise the authority of the Commission under this Act in a manner that facilitates the planning 

and expansion of transmission facilities to meet the reasonable 

needs of load-serving entities to satisfy the service obligations of 

the load-serving entities, and enables load-serving entities to secure firm transmission rights (or equivalent tradable or financial 

rights) on a long-term basis for long-term power supply arrangements made, or planned, to meet such needs. 

(c) ALLOCATION OF TRANSMISSION RIGHTS.—Nothing in subsections (b)(1), (b)(2), and (b)(3) of this section shall affect any existing or future methodology employed by a Transmission Organization for allocating or auctioning transmission rights if such 

Transmission Organization was authorized by the Commission to 

allocate or auction financial transmission rights on its system as of 


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January 1, 2005, and the Commission determines that any future 

allocation or auction is just, reasonable and not unduly discriminatory or preferential, provided, however, that if such a Transmission 

Organization never allocated financial transmission rights on its 

system that pertained to a period before January 1, 2005, with respect to any application by such Transmission Organization that 

would change its methodology the Commission shall exercise its 

authority in a manner consistent with the Act and that takes into 

account the policies expressed in subsections (b)(1), (b)(2), and 

(b)(3) as applied to firm transmission rights held by a load-serving 

entity as of January 1, 2005, to the extent the associated generation ownership or power purchase arrangements remain in effect. 

(d) CERTAIN TRANSMISSION RIGHTS.—The Commission may exercise authority under this Act to make transmission rights not 

used to meet an obligation covered by subsection (b) available to 

other entities in a manner determined by the Commission to be 

just, reasonable, and not unduly discriminatory or preferential. 

(e) OBLIGATION TO BUILD.—Nothing in this Act relieves a loadserving entity from any obligation under State or local law to build 

transmission or distribution facilities adequate to meet the service 

obligations of the load-serving entity. 

(f) CONTRACTS.—Nothing in this section shall provide a basis 

for abrogating any contract or service agreement for firm transmission service or rights in effect as of the date of the enactment 

of this subsection. If an ISO in the Western Interconnection had allocated financial transmission rights prior to the date of enactment 

of this section but had not done so with respect to one or more 

load-serving entities’ firm transmission rights held under contracts 

to which the preceding sentence applies (or held by reason of ownership or future ownership of transmission facilities), such loadserving entities may not be required, without their consent, to convert such firm transmission rights to tradable or financial rights, 

except where the load-serving entity has voluntarily joined the ISO 

as a participating transmission owner (or its successor) in accordance with the ISO tariff. 

(g) WATER PUMPING FACILITIES.—The Commission shall ensure 

that any entity described in section 201(f) that owns transmission 

facilities used predominately to support its own water pumping facilities shall have, with respect to the facilities, protections for 

transmission service comparable to those provided to load-serving 

entities pursuant to this section. 

(h) ERCOT.—This section shall not apply within the area referred to in section 212(k)(2)(A). 

(i) JURISDICTION.—This section does not authorize the Commission to take any action not otherwise within the jurisdiction of the 

Commission. 

(j) TVA AREA.—(1) Subject to paragraphs (2) and (3), for purposes of subsection (b)(1)(B), a load-serving entity that is located 

within the service area of the Tennessee Valley Authority and that 

has a firm wholesale power supply contract with the Tennessee 

Valley Authority shall be considered to hold firm transmission 

rights for the transmission of the power provided. 

(2) Nothing in this subsection affects the requirements of section 212(j). 


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(3) The Commission shall not issue an order on the basis of 

this subsection that is contrary to the purposes of section 212(j). 

(k) EFFECT OF EXERCISING RIGHTS.—An entity that to the extent required to meet its service obligations exercises rights described in subsection (b) shall not be considered by such action as 

engaging in undue discrimination or preference under this Act.

ø16 U.S.C. 824q¿

SEC. 218. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC NORTHWEST. 

(a) DEFINITION OF ELECTRIC UTILITY OR PERSON.—In this section, the term ‘‘electric utility or person’’ means an electric utility 

or person that—

(1) as of the date of enactment of the Energy Policy Act of 

2005 holds firm transmission rights pursuant to contract or by 

reason of ownership of transmission facilities; and 

(2) is located—

(A) in the Pacific Northwest, as that region is defined 

in section 3 of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839a); or 

(B) in that portion of a State included in the geographic area proposed for a regional transmission organization in Commission Docket Number RT01–35 on the 

date on which that docket was opened. 

(b) PROTECTION OF TRANSMISSION CONTRACTS.—Nothing in this 

Act confers on the Commission the authority to require an electric 

utility or person to convert to tradable or financial rights—

(1) firm transmission rights described in subsection (a); or 

(2) firm transmission rights obtained by exercising contract or tariff rights associated with the firm transmission 

rights described in subsection (a).

ø16 U.S.C. 824r¿

SEC. 219. TRANSMISSION INFRASTRUCTURE INVESTMENT. 

(a) RULEMAKING REQUIREMENT.—Not later than 1 year after 

the date of enactment of this section, 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 existVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00085 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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ing 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 215; and 

(B) all prudently incurred costs related to transmission infrastructure development pursuant to section 

216. 

(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 205 and 

206 that all rates, charges, terms, and conditions be just and reasonable and not unduly discriminatory or preferential.

ø16 U.S.C. 824s¿

SEC. 220. ELECTRICITY MARKET TRANSPARENCY RULES. 

(a)(1) The Commission is directed to facilitate price transparency in markets for the sale and transmission of electric energy 

in interstate commerce, having due regard for the public interest, 

the integrity of those markets, fair competition, and the protection 

of consumers. 

(2) The Commission may prescribe such rules as the Commission determines necessary and appropriate to carry out the purposes of this section. The rules shall provide for the dissemination, 

on a timely basis, of information about the availability and prices 

of wholesale electric energy and transmission service to the Commission, State commissions, buyers and sellers of wholesale electric 

energy, users of transmission services, and the public. 

(3) The Commission may—

(A) obtain the information described in paragraph (2) from 

any market participant; and 

(B) rely on entities other than the Commission to receive 

and make public the information, subject to the disclosure 

rules in subsection (b). 

(4) In carrying out this section, the Commission shall consider 

the degree of price transparency provided by existing price publishers and providers of trade processing services, and shall rely on 

such publishers and services to the maximum extent possible. The 

Commission may establish an electronic information system if it 

determines that existing price publications are not adequately providing price discovery or market transparency. Nothing in this section, however, shall affect any electronic information filing requirements in effect under this Act as of the date of enactment of this 

section. 


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(b)(1) Rules described in subsection (a)(2), if adopted, shall exempt from disclosure information the Commission determines 

would, if disclosed, be detrimental to the operation of an effective 

market or jeopardize system security. 

(2) In determining the information to be made available under 

this section and time to make the information available, the Commission shall seek to ensure that consumers and competitive markets are protected from the adverse effects of potential collusion or 

other anticompetitive behaviors that can be facilitated by untimely 

public disclosure of transaction-specific information. 

(c)(1) Within 180 days of enactment of this section, the Commission shall conclude a memorandum of understanding with the 

Commodity Futures Trading Commission relating to information 

sharing, which shall include, among other things, provisions ensuring that information requests to markets within the respective jurisdiction of each agency are properly coordinated to minimize duplicative information requests, and provisions regarding the treatment of proprietary trading information. 

(2) Nothing in this section may be construed to limit or affect 

the exclusive jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.). 

(d) The Commission shall not require entities who have a de 

minimis market presence to comply with the reporting requirements of this section. 

(e)(1) Except as provided in paragraph (2), no person shall be 

subject to any civil penalty under this section with respect to any 

violation occurring more than 3 years before the date on which the 

person is provided notice of the proposed penalty under section 

316A. 

(2) Paragraph (1) shall not apply in any case in which the 

Commission finds that a seller that has entered into a contract for 

the sale of electric energy at wholesale or transmission service subject to the jurisdiction of the Commission has engaged in fraudulent market manipulation activities materially affecting the contract in violation of section 222. 

(f) This section shall not apply to a transaction for the purchase or sale of wholesale electric energy or transmission services 

within the area described in section 212(k)(2)(A).

ø16 U.S.C. 824t¿

SEC. 221. PROHIBITION ON FILING FALSE INFORMATION. 

No entity (including an entity described in section 201(f)) shall 

willfully and knowingly report any information relating to the price 

of electricity sold at wholesale or the availability of transmission 

capacity, which information the person or any other entity knew to 

be false at the time of the reporting, to a Federal agency with intent to fraudulently affect the data being compiled by the Federal 

agency.

ø16 U.S.C. 824u¿

SEC. 222. PROHIBITION OF ENERGY MARKET MANIPULATION. 

(a) IN GENERAL.—It shall be unlawful for any entity (including 

an entity described in section 201(f)), directly or indirectly, to use 

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ergy or the purchase or sale of transmission services subject to the 

jurisdiction of the Commission, any manipulative or deceptive device or contrivance (as those terms are used in section 10(b) of the 

Securities Exchange Act of 1934 (15 U.S.C. 78j(b))), in contravention of such rules and regulations as the Commission may prescribe 

as necessary or appropriate in the public interest or for the protection of electric ratepayers. 

(b) NO PRIVATE RIGHT OF ACTION.—Nothing in this section 

shall be construed to create a private right of action.

ø16 U.S.C. 824v¿

SEC. 223. JOINT BOARDS ON ECONOMIC DISPATCH. 

(a) IN GENERAL.—The Commission shall convene joint boards 

on a regional basis pursuant to section 209 of this Act to study the 

issue of security constrained economic dispatch for the various 

market regions. The Commission shall designate the appropriate 

regions to be covered by each such joint board for purposes of this 

section. 

(b) MEMBERSHIP.—The Commission shall request each State to 

nominate a representative for the appropriate regional joint board, 

and shall designate a member of the Commission to chair and participate as a member of each such board. 

(c) POWERS.—The sole authority of each joint board convened 

under this section shall be to consider issues relevant to what constitutes ‘‘security constrained economic dispatch’’ and how such a 

mode of operating an electric energy system affects or enhances the 

reliability and affordability of service to customers in the region 

concerned and to make recommendations to the Commission regarding such issues. 

(d) REPORT TO THE CONGRESS.—Within 1 year after enactment 

of this section, the Commission shall issue a report and submit 

such report to the Congress regarding the recommendations of the 

joint boards under this section and the Commission may consolidate the recommendations of more than one such regional joint 

board, including any consensus recommendations for statutory or 

regulatory reform.

ø16 U.S.C. 824w¿

PART III—LICENSEES AND PUBLIC UTILITIES; 

PROCEDURAL AND ADMINISTRATIVE PROVISIONS 

ACCOUNTS, RECORDS, AND MEMORANDA

SEC. 301. (a) Every licensee and public utility shall make, keep 

and preserve for such periods, such accounts, records of cost-accounting procedures, correspondence memoranda, papers, books 

and other records as the Commission may by rules and regulations 

prescribe as necessary or appropriate for purposes of the administration of this Act, including accounts, records, and memoranda of 

the generation, transmission, distribution, delivery, or sale of electric energy, the furnishing of services or facilities in connection 

therewith, and receipts and expenditures with respect to any of the 

foregoing: Provided, however, That nothing in this Act shall relieve 

any public utility from keeping any accounts, memoranda, or 


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records which such public utility may be required to keep by or 

under authority of the laws of any State. The Commission may prescribe a system of accounts to be kept by licensees and public utilities and may classify such licensees and public utilities and prescribe a system of accounts for each class. The Commission, after 

notice and opportunity for hearing, may determine by order the accounts in which particular outlays and receipts shall be entered, 

charged, or credited. The burden of proof to justify every accounting entry questioned by the Commission shall be on the person 

making, authorizing, or requiring such entry, and the Commission 

may suspend a change or credit pending submission of satisfactory 

proof in support thereof. 

(b) The Commission shall at all times have access to and the 

right to inspect and examine all accounts, records, and memoranda 

of licensees and public utilities, and it shall be the duty of such licensees and public utilities to furnish to the Commission, within 

such reasonable time as the Commission may order, any information with respect thereto which the Commission may by order require, including copies of maps, contracts, reports of engineers, and 

other data, records, and papers, and to grant to all agents of the 

Commission free access to its property and its accounts, records, 

and memorandum when requested so to do. No member, officer, or 

employee of the Commission shall divulge any fact or information 

which may come to his knowledge during the course of examination 

of books or other accounts, as hereinbefore provided, except insofar 

as he may be directed by the Commission or by a court. 

(c) The books, accounts, memoranda, and records of any person 

who controls, directly or indirectly, a licensee or public utility subject to the jurisdiction of the Commission, and of any other company controlled by such person, insofar as they relate to transactions with or the business of such licensee or public utility, shall 

be subject to examination on the order of the Commission.

ø16 U.S.C. 825¿

RATES OF DEPRECIATION

SEC. 302. (a) The Commission may, after hearing, require licensees and public utilities to carry a proper and adequate depreciation account in accordance with such rules, regulations, and 

forms of account as the Commission may prescribe. The Commission may, from time to time, ascertain and determine, and by order 

fix, the proper and adequate rates of depreciation of the several 

classes of property of each licensee and public utility. Each licensee 

and public utility shall conform its depreciation accounts to the 

rates so ascertained, determined, and fixed. The licensees and public utilities subject to the jurisdiction of the Commission shall not 

charge to operating expenses any depreciation charges on classes 

of property other than those prescribed by the Commission, or 

charge with respect to any class of property a percentage of depreciation other than that prescribed therefor by the Commission. No 

such licensee or public utility shall in any case include in any form 

under its operating or other expenses any depreciation or other 

charge or expenditure included elsewhere as a depreciation charge 

or otherwise under its operating or other expenses. Nothing in this 


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section shall limit the power of a State commission to determine in 

the exercise of its jurisdiction, with respect to any public utility, 

the percentage rate of depreciation to be allowed, as to any class 

of property of such public utility, or the composite depreciation 

rate, for the purpose of determining rates or charges. 

(b) The Commission, before prescribing any rules or requirements as to accounts, records, or memoranda, or as to depreciation 

rates, shall notify each State commission having jurisdiction with 

respect to any public utility involved, and shall give reasonable opportunity to each such commission to present its views, and shall 

receive and consider such views and recommendations.

ø16 U.S.C. 825a¿

REQUIREMENTS APPLICABLE TO AGENCIES OF THE UNITED STATES

SEC. 303. All agencies of the United States engaged in the generation and sale of electric energy for ultimate distribution to the 

public shall be subject, as to all facilities used for such generation 

and sale, and as to the electric energy sold by such agency, to the 

provisions of sections 301 and 302 hereof, so far as may be practicable, and shall comply with the provisions of such sections and 

with the rules and regulations of the Commission thereunder to the 

same extent as may be required in the case of a public utility.

ø16 U.S.C. 825b¿

PERIODIC AND SPECIAL REPORTS

SEC. 304. (a) Every licensee and every public utility shall file 

with the Commission such annual and other periodic or special reports as the Commission may by rules and regulations or order 

prescribe as necessary or appropriate to assist the Commission in 

the proper administration of this Act. The Commission may prescribe the manner and form in which such reports shall be made, 

and require from such persons specific answers to all questions 

upon which the Commission may need information. The Commission may require that such reports shall include, among other 

things, full information as to assets and liabilities, capitalization, 

net investment, and reduction thereof, gross receipts, interest due 

and paid, depreciation, and other reserves, cost of project and other 

facilities, cost of maintenance and operation of the project and 

other facilities, cost of renewals and replacement of the project 

works and other facilities, depreciation, generation, transmission, 

distribution delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provision for 

currently determining such costs and other facts. Such reports 

shall be made under oath unless the Commission otherwise specifies. 

(b) It shall be unlawful for any person willfully to hinder, 

delay, or obstruct the making, filing, or keeping of any information, 

document, report, memorandum, record, or account required to be 

made, filed, or kept under this Act or any rule, regulation, or order 

thereunder.

ø16 U.S.C. 825c¿


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As Amended Through P.L. 115-325, Enacted December 18, 2018
91 Sec. 305 FEDERAL POWER ACT 

OFFICIALS DEALING IN SECURITIES; INTERLOCKING DIRECTORATES

SEC. 305. (a) It shall be unlawful for any officer or director of 

any public utility to receive for his own benefit, directly or indirectly, any money or thing of value in respect of the negotiation, 

hypothecation, or sale by such public utility of any security issued 

or to be issued by such public utility, or to share in any of the proceeds thereof, or to participate in the making or paying of any dividends of such public utility from any funds properly included in 

capital account. 

(b) INTERLOCKING DIRECTORATES.— 

(1) IN GENERAL.—After 6 months from the date on which 

this Part takes effect, it shall be unlawful for any person to 

hold the position of officer or director of more than one public 

utility or to hold the position of officer or director of a public 

utility and the position of officer or director of any bank, trust 

company, banking association, or firm that is authorized by 

law to underwrite or participate in the marketing of securities 

of a public utility, or officer or director of any company supplying electrical equipment to such public utility, unless the 

holding of such positions shall have been authorized by order 

of the Commission, upon due showing in form and manner prescribed by the Commission, that neither public nor private interests will be adversely affected thereby. The Commission 

shall not grant any such authorization in respect of such positions held on the date on which this Part takes effect, unless 

application for such authorization is filed with the Commission 

within sixty days after that date. 

(2) APPLICABILITY.— 

(A) IN GENERAL.—In the circumstances described in 

subparagraph (B), paragraph (1) shall not apply to a person that holds or proposes to hold the positions of—

(i) officer or director of a public utility; and 

(ii) officer or director of a bank, trust company, 

banking association, or firm authorized by law to underwrite or participate in the marketing of securities 

of a public utility. 

(B) CIRCUMSTANCES.—The circumstances described in 

this subparagraph are that—

(i) a person described in subparagraph (A) does 

not participate in any deliberations or decisions of the 

public utility regarding the selection of a bank, trust 

company, banking association, or firm to underwrite or 

participate in the marketing of securities of the public 

utility, if the person serves as an officer or director of 

a bank, trust company, banking association, or firm 

that is under consideration in the deliberation process; 

(ii) the bank, trust company, banking association, 

or firm of which the person is an officer or director 

does not engage in the underwriting of, or participate 

in the marketing of, securities of the public utility of 

which the person holds the position of officer or director; 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
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(iii) the public utility for which the person serves 

or proposes to serve as an officer or director selects 

underwriters by competitive procedures; or 

(iv) the issuance of securities of the public utility 

for which the person serves or proposes to serve as an 

officer or director has been approved by all Federal 

and State regulatory agencies having jurisdiction over 

the issuance. 

(c)(1) On or before April 30 of each year, any person, who, during the calendar year preceding the filing date under this subsection, was an officer or director of a public utility and who held, 

during such calendar year, the position of officer, director, partner, 

appointee, or representative of any other entity listed in paragraph 

(2) shall file with the Commission, in such form and manner as the 

Commission shall by rule prescribe, a written statement concerning 

such positions held by such person. Such statement shall be available to the public. 

(2) The entities listed for purposes of paragraph (1) are as follows—

(A) any investment bank, bank holding company, foreign 

band or subsidiary thereof doing business in the United States, 

insurance company, or any other organization primarily engaged in the business of providing financial services or credit, 

a mutual savings bank, or a savings and loan association; 

(B) any company, firm, or organization which is authorized 

by law to underwrite or participate in the marketing of securities of a public utility; 

(C) any company, firm, or organization which produces or 

supplies electrical equipment or coal, natural gas, oil, nuclear 

fuel, or other fuel, for the use of any public utility; 

(D) any company, firm, or organization which during any 

one of the 3 calendar years immediately preceding the filing 

date was one of the 20 purchasers of electric energy which purchased (for purposes other than for resale) one of the 20 largest 

annual amounts of electric energy sold by such public utility 

(or by any public utility which is part of the same holding company system) during any one of such three calendar years; 

(E) any entity referred to in subsection (b); and 

(F) any company, firm, or organization which is controlled 

by any company, firm, or organization referred to in this paragraph. 

On or before January 31 of each calendar year, each public utility 

shall publish a list, pursuant to rules prescribed by the Commission, of the purchasers to which subparagraph (D) applies, for purposes of any filing under paragraph (1) of such calendar year. 

(3) For purposes of this subsection—

(A) The term ‘‘public utility’’ includes any company which 

is a part of a holding company system which includes a registered holding company, unless no company in such system is 

an electric utility. 

(B) The terms ‘‘holding company’’, ‘‘registered holding company’’, and ‘‘holding company system’’ have the same meaning 

as when used in the Public Utility Company Act of 1935.

ø16 U.S.C. 825d¿


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As Amended Through P.L. 115-325, Enacted December 18, 2018
93 Sec. 307 FEDERAL POWER ACT 

COMPLAINTS

SEC. 306. Any person, electric utility, State, municipality, or 

State commission complaining of anything done or omitted to be 

done by any licensee, transmitting utility, or public utility in contravention of the provisions of this Act may apply to the Commission by petition which shall briefly state the facts, whereupon a 

statement of the complaint thus made shall be forwarded by the 

Commission to such licensee, transmitting utility, or public utility, 

who shall be called upon to satisfy the complaint or to answer the 

same in writing within a reasonable time to be specified by the 

Commission. If such licensee, transmitting utility, or public utility 

shall not satisfy the complaint within the time specified or there 

shall appear to be any reasonable ground for investigating such 

complaint, it shall be the duty of the Commission to investigate the 

matters complained of in such manner and by such means as it 

shall find proper.

ø16 U.S.C. 825e¿

INVESTIGATIONS BY COMMISSION; ATTENDANCE OF WITNESSES; 

DEPOSITIONS

SEC. 307. (a) The Commission may investigate any facts, conditions, practices, or matters which it may find necessary or proper 

in order to determine whether any person, electric utility, transmitting utility, or other entity has violated or is about to violate any 

provisions of this Act or any rule, regulation, or order thereunder, 

or to aid in the enforcement of the provisions of this Act or in prescribing rules or regulations thereunder, or in obtaining information to serve as a basis for recommending further legislation concerning the matters to which this Act relates, or in obtaining information about the sale of electric energy at wholesale in interstate 

commerce and the transmission of electric energy in interstate commerce. The Commission may permit any person, electric utility, 

transmitting utility, or other entity to file with it a statement in 

writing under oath or otherwise, as it shall determine, as to any 

or all facts and circumstances concerning a matter which may be 

the subject of investigation. The Commission, in its discretion, may 

publish or make available to State commissions information concerning any such subject. 

(b) For the purpose of any investigation or any other proceeding under this Act, any member of the Commission, or any officer designated by it, is empowered to administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, 

and require the production of any books, papers, correspondence, 

memoranda, contracts, agreements, or other records which the 

Commission finds relevant or material to the inquiry. Such attendance of witnesses and the production of any such records may be 

required from any place in the United States at any designated 

place of hearing. Witnesses summoned by the Commission to appear before it shall be paid the same fees and mileage that are paid 

witnesses in the courts of the United States. 

(c) In case of contumacy by, or refusal to obey a subpena issued 

to, any person, the Commission may invoke the aid of any court of 

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As Amended Through P.L. 115-325, Enacted December 18, 2018
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tion or proceeding is carried on, or where such person resides or 

carries on business, in requiring the attendance and testimony of 

witnesses and the production of books, papers, correspondence, 

memoranda, contracts, agreements, and other records. Such court 

may issue an order requiring such person to appear before the 

Commission or member or officer designated by the Commission, 

there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question; and any failure 

to obey such order of the court may be punished by such court as 

a contempt thereof. All process in any such case may be served in 

the judicial district whereof such person is an inhabitant or wherever he may be found or may be doing business. Any person who 

willfully shall fail or refuse to attend and testify or to answer any 

lawful inquiry or to produce books, papers, correspondence, memoranda, contracts, agreements, or other records, if in his or its power 

so to do, in obedience to the subpena of the Commission, shall be 

guilty of a misdemeanor and, upon conviction, shall be subject to 

a fine of not more than $1,000 or to imprisonment for a term of 

not more than one year, or both. 

(d) The testimony of any witness may be taken, at the instance 

of a party, in any proceeding or investigation pending before the 

Commission, by deposition, at any time after the proceeding is at 

issue. The Commission may also order testimony to be taken by 

deposition in any proceeding or investigation pending before it, at 

any stage of such proceeding or investigation. Such depositions 

may be taken before any person authorized to administer oaths not 

being of counsel or attorney to either of the parties, nor interested 

in the proceeding or investigation. Reasonable notice must first be 

given in writing by the party or his attorney proposing to take such 

deposition to the opposite party or his attorney of record, as either 

may be nearest, which notice shall state the name of the witness 

and the time and place of the taking of his deposition. Any person 

may be compelled to appear and depose, and to produce documentary evidence, in the same manner as witnesses may be compelled 

to appear and testify and produce documentary evidence before the 

Commission, as hereinbefore provided. Such testimony shall be reduced to writing by the person taking the deposition, or under his 

direction, and shall, after it has been reduced to writing, be subscribed by the deponent. 

(e) If a witness whose testimony may be desired to be taken 

by deposition be in a foreign country, the deposition may be taken 

before an officer or person designed by the Commission, or agreed 

upon by the parties by stipulation in writing to be filed with the 

Commission. All depositions must be promptly filed with the Commission. 

(f) Witnesses whose depositions are taken as authorized in this 

Act, and the person or officer taking the same, shall be entitled to 

the same fees as are paid for like services in the courts of the 

United States.

ø16 U.S.C. 825f¿


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As Amended Through P.L. 115-325, Enacted December 18, 2018
95 Sec. 310 FEDERAL POWER ACT 

HEARINGS; RULES OF PROCEDURE

SEC. 308. (a) Hearings under this Act may be held before the 

Commission, any member or members thereof or any representative of the Commission designated by it, and appropriate records 

thereof shall be kept. In any proceeding before it, the Commission 

in accordance with such rules and regulations as it may prescribe, 

may admit as a party any interested State, State commission, municipality, or any representative of interested consumers or security 

holders, or any competitor of a party to such proceeding, or any 

other person whose participation in the proceeding may be in the 

public interest. 

(b) All hearings, investigations, and proceedings under this Act 

shall be governed by rules of practice and procedure to be adopted 

by the Commission, and in the conduct thereof the technical rules 

of evidence need not be applied. No informality in any hearing, investigation, or proceeding or in the manner of taking testimony 

shall invalidate any order, decision, rule, or regulation issued 

under the authority of this Act.

ø16 U.S.C. 825g¿

ADMINISTRATIVE POWERS OF COMMISSION; RULES, REGULATIONS, AND

ORDERS

SEC. 309. The Commission shall have power to perform any 

and all acts, and to prescribe, issue, make, amend, and rescind 

such orders, rules, and regulations as it may find necessary or appropriate to carry out the provisions of this Act. Among other 

things, such rules and regulations may define accounting, technical, and trade terms used in this Act; and may prescribe the form 

or forms of all statements, declarations, applications, and reports 

to be filed with the Commission, the information which they shall 

contain, and the time within which they shall be filed. Unless a different date is specified therein, rules and regulations of the Commission shall be effective thirty days after publication in the manner which the Commission shall prescribe. Orders of the Commission shall be effective on the date and in the manner which the 

Commission shall prescribe. For the purposes of its rules and regulations, the Commission may classify persons and matters within 

its jurisdiction and prescribe different requirements for different 

classes of persons or matters. All rules and regulations of the Commission shall be filed with its secretary and shall be kept open in 

convenient form for public inspection and examination during reasonable business hours.

ø16 U.S.C. 825h¿

APPOINTMENT OF OFFICERS AND EMPLOYEES

SEC. 310. The Commission is authorized to appoint and fix the 

compensation of such officers, attorneys, examiners, and experts as 

may be necessary for carrying out its functions under this Act, 

without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United 

States; and the Commission may, subject to civil-service laws, appoint such other officers and employees as are necessary for carVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00095 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
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rying out such functions and fix their salaries in accordance with 

the Classification Act of 1949.

ø16 U.S.C. 825i¿

INVESTIGATIONS RELATING TO ELECTRIC ENERGY

SEC. 311. In order to secure information necessary or appropriate as a basis for recommending legislation, the Commission is 

authorized and directed to conduct investigations regarding the 

generation, transmission, distribution, and sale of electric energy, 

however produced, throughout the United States and its possessions, whether or not otherwise subject to the jurisdiction of the 

Commission, including the generation, transmission, distribution, 

and sale of electric energy by any agency, authority, or instrumentality of the United States, or of any State or municipality or other 

political subdivision of a State. It shall, so far as practicable, secure 

and keep current information regarding the ownership, operation, 

management, and control of all facilities for such generation, transmission, distribution, and sale; the capacity and output thereof and 

the relationship between the two; the cost of generation, transmission, and distribution; the rates, charges, and contracts in respect of the sale of electric energy and its service to residential, 

rural, commercial, and industrial consumers and other purchasers 

by private and public agencies; and the relation of any or all such 

facts to the development of navigation, industry, commerce, and 

the national defense. The Commission shall report to Congress the 

results of investigations made under authority of this section.

ø16 U.S.C. 825j¿

PUBLICATION AND SALE OF REPORTS

SEC. 312. The Commission may provide for the publication of 

its reports and decisions in such form and manner as may be best 

adapted for public information and use, and is authorized to sell at 

reasonable prices copies of all maps, atlases, and reports as it may 

from time to time publish. Such reasonable prices may include the 

cost of compilation, composition, and reproduction. The commission 

is also authorized to make such charges as it deems reasonable for 

special statistical services and other special or periodic services. 

The amounts collected under this section shall be deposited in the 

Treasury to the credit of miscellaneous receipts. All printing for the 

Federal Power Commission making use of engraving, lithography, 

and photolithography, together with the plates for the same, shall 

be contracted for and performed under the direction of the Commission, under such limitations and conditions as the Joint Committee 

on Printing may from time to time prescribe, and all other printing 

for the Commission shall be done by the Public Printer under such 

limitations and conditions as the Joint Committee on Printing may 

from time to time prescribe. The entire work may be done at, or 

ordered through, the Government Printing Office whenever, in the 

judgment of the Joint Committee on Printing, the same would be 

to the interest of the Government: Provided, That when the exigencies of the public service so require, the Joint Committee on Printing may authorize the Commission to make immediate contracts 

for engraving, lithographing, and photolithographing, without adVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00096 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
97 Sec. 313 FEDERAL POWER ACT 

vertisement for proposals: Provided further, That nothing contained 

in this or any other Act shall prevent the Federal Power Commission from placing orders with other departments or establishing for 

engraving, lithographing, and photolithographing, in accordance 

with the provisions of section 601 and 602 of the Act of June 30, 

1932 (47 Stat. 417), providing for interdepartmental work.

ø16 U.S.C. 825k¿

REHEARINGS; COURT REVIEW OF ORDERS

SEC. 313. (a) Any person, electric utility, State, municipality, 

or State commission aggrieved by an order issued by the Commission in a proceeding under this Act to which such person, electric 

utility, State, municipality, or State commission is a party may 

apply for a rehearing within thirty days after the issuance of such 

order. The application for rehearing shall set forth specifically the 

ground or grounds upon which such application is based. Upon 

such application the Commission shall have power to grant or deny 

rehearing or to abrogate or modify its order without further hearing. Unless the Commission acts upon the application for rehearing 

within thirty days after it is filed, such application may be deemed 

to have been denied. No proceeding to review any orders of the 

Commission shall be brought by any entity unless such entity shall 

have made application to the Commission for a rehearing thereon. 

Until the record in a proceeding shall have been filed in a court of 

appeals, as provided in subsection (b), the Commission may at any 

time, upon reasonable notice and in such manner as it shall deem 

proper, modify or set aside, in whole or in part, any finding or 

order made or issued by it under the provisions of this act. 

(b) Any party to a proceeding under this Act aggrieved by an 

order issued by the Commission in such proceeding may obtain a 

review of such order in the Circuit Court of Appeals of the United 

States for any circuit wherein the licensee or public utility to which 

the order relates is located or has its principal place of business, 

or in the United States Court of Appeals for the District of Columbia, by filing in such court, within sixty days after the order of the 

Commission upon the application for rehearing, a written petition 

praying that the order of the Commission be modified or set aside 

in whole or in part. A copy of such petition shall forthwith be 

transmitted by the clerk of the court to any member of the Commission and thereupon the Commission shall file with the court the 

record upon which the order complained of was entered, as provided in section 2112 of title 28, United States Code. Upon the filing of such petition such court shall have jurisdiction, which upon 

the filing of the record with it shall be exclusive, to affirm, modify, 

or set aside such order in whole or in part. No objection to the 

order of the Commission shall be considered by the court unless 

such objection shall have been urged before the Commission in the 

application for rehearing unless there is reasonable ground for failure so to do. The finding of the Commission as to the facts, if supported by substantial evidence, shall be conclusive. If any party 

shall apply to the court for leave to adduce additional evidence, and 

shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for failVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00097 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 314 FEDERAL POWER ACT 98

ure to adduce such evidence in the proceedings before the Commission, the court may order such additional evidence to be taken before the Commission and to be adduced upon the hearing in such 

manner and upon such terms and conditions as the court may 

deem proper. The Commission may modify its findings as to the 

facts by reason of additional evidence so taken, and it shall file 

with the court such modified or new findings which, if supported 

by substantial evidence, shall be conclusive, and its recommendation, if any, for the modification or setting aside of the original 

order. The judgment and decree of the court, affirming, modifying, 

or setting aside, in whole or in part, any such order of the Commission, shall be final, subject to review by the Supreme Court of the 

United States upon certiorari or certification as provided in sections 239 and 240 of the Judicial Code, as amended (U.S.C., title 

28, secs. 346 and 347). 

(c) The filing of an application for rehearing under subsection 

(a) shall not, unless specifically ordered by the Commission, operate as a stay of the Commission’s order. The commencement of proceedings under subsection (b) of this section shall not, unless specifically ordered by the court, operate as a stay of the Commission’s 

order.

ø16 U.S.C. 825l¿

ENFORCEMENT OF ACT, REGULATIONS AND ORDERS

SEC. 314. (a) Whenever it shall appear to the Commission that 

any person is engaged or about to engage in any acts or practices 

which constitute or will constitute a violation of the provisions of 

this Act, or of any rule, regulation, or order thereunder, it may in 

its discretion bring an action in the proper District Court of the 

United States, the Supreme Court of the District of Columbia, or 

the United States courts of any Territory or other place subject to 

the jurisdiction of the United States, to enjoin such acts or practices and to enforce compliance with this Act or any rule, regulation, or order thereunder, and upon a proper showing a permanent 

or temporary injunction or decree or restraining order shall be 

granted without bond. The Commission may transmit such evidence as may be available concerning such acts or practices to the 

Attorney General, who, in his discretion, may institute the necessary criminal proceedings under this Act. 

(b) Upon application of the Commission the district courts of 

the United States, the Supreme Court of the District of Columbia, 

and the United States court of any Territory or other place subject 

to the jurisdiction of the United States shall have jurisdiction to 

issue writs of mandamus commanding any person to comply with 

the provision of this Act or any rule, regulation, or order of the 

Commission thereunder. 

(c) The Commission may employ such attorneys as it finds necessary for proper legal aid and service of the Commission or its 

member in the conduct of their work, or for proper representation 

of the public interests in investigations made by it or cases or proceedings pending before it, whether at the Commission’s own instance or upon complaint, or to appear for or represent the ComVerDate 0ct 09 2002 10:26 Aug 13, 2019 Jkt 000000 PO 00000 Frm 00098 Fmt 9001 Sfmt 9001 G:\COMP\ELECTRIC\FPA.BEL HOLC

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As Amended Through P.L. 115-325, Enacted December 18, 2018
99 Sec. 316 FEDERAL POWER ACT 

mission in any case in court; and the expenses of such employment 

shall be paid out of the appropriation for the Commission. 

(d) In any proceedings under subsection (a), the court may prohibit, conditionally or unconditionally, and permanently or for such 

period of time as the court determines, any individual who is engaged or has engaged in practices constituting a violation of section 

221 (and related rules and regulations) from—

(1) acting as an officer or director of an electric utility; or 

(2) engaging in the business of purchasing or selling—

(A) electric energy; or 

(B) transmission services subject to the jurisdiction of 

the Commission.

ø16 U.S.C. 825m¿

GENERAL FORFEITURE PROVISION; VENUE

SEC. 315. (a) Any licensee or public utility which willfully fails, 

within the time prescribed by the Commission, to comply with any 

order of the Commission, to file any report required under this Act 

or any rule or regulation of the Commission thereunder, to submit 

any information or document required by the Commission in the 

course of an investigation conducted under this Act, or to appear 

by an officer or agent at any hearing or investigation in response 

to a subpena issued under this Act, shall forfeit to the United 

States an amount not exceeding $1,000 to be fixed by the Commission after notice and opportunity for hearing. The imposition or 

payment of any such forfeiture shall not bar or affect any penalty 

prescribed in this Act but such forfeiture shall be in addition to any 

such penalty. 

(b) The forfeitures provided for in this Act shall be payable into 

the Treasury of the United States and shall be recoverable in a 

civil suit in the name of the United States, brought in the district 

where the person is an inhabitant or has his principal place of 

business, or if a licensee or public utility, in any district in which 

such licensee or public utility transacts business. It shall be the 

duty of the various district attorneys, under the direction of the Attorney General of the United States, to prosecute for the recovery 

of forfeitures under this Act. The costs and expenses of such prosecution shall be paid from the appropriations for the expenses of 

the courts of the United States. 

(c) This section shall not apply in the case of any provision of 

section 211, 212, 213, or 214 or any rule or order issued under any 

such provision.

ø16 U.S.C. 825n¿

GENERAL PENALTIES

SEC. 316. (a) Any person who willfully and knowingly does or 

causes or suffers to be done any act, matter, or thing in this Act 

prohibited or declared to be unlawful, or who willfully and knowingly omits or fails to do any act, matter, or thing in this Act required to be done, or willfully and knowingly causes or suffers such 

omission or failure, shall, upon conviction thereof, be punished by 

a fine of not more than $1,000,000 or by imprisonment for not more 

than 5 years or both. 


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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 316A FEDERAL POWER ACT 100

(b) Any person who willfully and knowingly violates any rule, 

regulation, restriction, condition, or order made or imposed by the 

Commission under authority of this Act, or any rule or regulation 

imposed by the Secretary of the Army under authority of Part I of 

this Act shall, in addition to any other penalties provided by law, 

be punished upon conviction thereof by a fine of not exceeding 

$25,000 for each and every day during which such offense occurs.

ø16 U.S.C. 825o¿

SEC. 316A. ENFORCEMENT OF CERTAIN PROVISIONS. 

(a) VIOLATIONS.—It shall be unlawful for any person to violate 

any provision of part II or any rule or order issued under any such 

provision. 

(b) CIVIL PENALTIES.—Any person who violates any provision of 

part II or any provision of any rule or order thereunder shall be 

subject to a civil penalty of not more than $1,000,000 for each day 

that such violation continues. Such penalty shall be assessed by the 

Commission, after notice and opportunity for public hearing, in accordance with the same provisions as are applicable under section 

31(d) in the case of civil penalties assessed under section 31. In determining the amount of a proposed penalty, the Commission shall 

take into consideration the seriousness of the violation and the efforts of such person to remedy the violation in a timely manner.

ø16 U.S.C. 825o–1¿

JURISDICTION OF OFFENSES; ENFORCEMENT OF LIABILITIES AND

DUTIES

SEC. 317. The District Courts of the United States, the Supreme Court of the District of Columbia, and the United States 

courts of any Territory or other place subject to the jurisdiction of 

the United States shall have exclusive jurisdiction of violations of 

this Act or the rules, regulations, and orders thereunder, and of all 

suits in equity and actions at law brought to enforce any liability 

or duty created by, or to enjoin any violation of, this Act or any 

rule, regulation, or order thereunder. Any criminal proceeding shall 

be brought in the district wherein any act or transaction constituting the violation occurred. Any suit or action to enforce any liability or duty created by, or to enjoin any violation of, this Act or 

any rule, regulation, or order thereunder may be brought in any 

such district or in the district wherein the defendant is an inhabitant, and process in such cases may be served wherever the defendant may be found. Judgments and decrees so rendered shall be 

subject to review as provided in sections 128 and 240 of the Judicial Code, as amended (U.S.C., title 28, secs. 225 and 347). No costs 

shall be assessed against the Commission in any judicial proceeding by or against the Commission under this Act.

ø16 U.S.C. 825p¿

SEC. 318. øRepealed August 8, 2005.¿


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As Amended Through P.L. 115-325, Enacted December 18, 2018
101 Sec. 320 FEDERAL POWER ACT 

OFFICE OF PUBLIC PARTICIPATION

SEC. 319. (a)(1) There shall be an office in the Commission to 

be known as the Office of Public Participation (hereinafter in this 

section referred to as the ‘‘Office’’). 

(2)(A) The Office shall be administered by a Director. The Director shall be appointed by the Chairman with the approval of the 

Commission. The Director may be removed during his term of office 

by the Chairman, with the approval of the Commission, only for inefficiency, neglect of duty, or malfeasance in office. 

(B) The term of office of the Director shall be 4 years. The Director shall be responsible for the discharge of the functions and 

duties of the Office. He shall be appointed and compensated at a 

rate not in excess of the maximum rate prescribed for GS–18 of the 

General Schedule under section 5332 of title 5 of the United States 

Code. 

(3) The Director may appoint, and assign the duties of, employees of such Office, and with the concurrence of the Commission he 

may fix the compensation of such employees and procure temporary and intermittent services to the same extent as is authorized under section 3109 of title 5, United States Code. 

(b)(1) The Director shall coordinate assistance to the public 

with respect to authorities exercised by the Commission. The Director shall also coordinate assistance available to persons intervening 

or participating or proposing to intervene or participate in proceedings before the Commission. 

(2) The Commission may, under rules promulgated by it, provide compensation for reasonable attorney’s fees, expert witness 

fees, and other costs of intervening or participating in any proceeding before the Commission to any person whose intervention, 

or participation substantially contributed to the approval, in whole 

or in part, of a position advocated by such person. Such compensation may be paid only if the Commission has determined that—

(A) the proceeding is significant, and 

(B) such person’s intervention or participation in such proceeding without receipt of compensation constitutes a significant financial hardship to him. 

(3) Nothing in this subsection affects or restricts any rights of 

any intervenor or participant under any other applicable law or 

rule of law. 

(4) There are to be appropriated to the Secretary of Energy to 

be used by the Office for purposes of compensation of persons 

under the provisions of this subsection not to exceed $500,000 for 

the fiscal year 1978, not to exceed $2,000,000 for the fiscal year 

1979, not to exceed $2,200,000 for the fiscal year 1980, and not to 

exceed $2,400,000 for the fiscal year 1981.

ø16 U.S.C. 825q–1¿

SEPARABILITY OF PROVISIONS

SEC. 320. If any provision of this Act, or the application of such 

provision to any person or circumstance, shall be held invalid, the 

remainder of the Act, and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.


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As Amended Through P.L. 115-325, Enacted December 18, 2018
Sec. 321 FEDERAL POWER ACT 102

ø16 U.S.C. 825r¿

SHORT TITLE

SEC. 321. This Act may be cited as the ‘‘Federal Power Act.’’

ø16 U.S.C. 791a¿ 


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As Amended Through P.L. 115-325, Enacted December 18, 2018