Regulatory Fairness Act
PL 100-473 (H.R.2858), enacted 10/06/1988

PUBLIC LAW 100-473—OCT. 6, 1988 
102 STAT. 2299 
Public Law 100-473 
100th Congress 
An Act 
Oct. 6, 1988 
[H.R. 2858] 
Regulatory 
Fairness Act. 
Utilities. 
16 u s e 791a 
note. 
To provide for refunds pursuant to rate decreases under the Federal Power Act. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Regulatory Fairness Act". 
SEC. 2. REFUNDS IN PROCEEDINGS UNDER SECTION 206 OF THE FEDERAL 
POWER ACT. 
Section 206 of the Federal Power Act (16 U.S.C. 824e) is amended 
as follows: 
(1) At the end of subsection (a) insert: "Any complaint or Contracts, 
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.". 
(2) Designate subsection Oa) as (d) and insert the following new 
subsections after subsection (a): 
"(h) Whenever the Commission institutes a proceeding under this 
section, the Commission shall establish a refund effective date. In 
the case of a proceeding instituted on complaint, the refund effective 
date shall not be earlier than the date 60 days after the filing of 
such complaint nor later than 5 months after the expiration of such 
60-day period. In the case of a proceeding instituted by the Commis-
sion on its own motion, the refund effective date shall not be earlier 
than the date 60 days after the publication by the Commission of 
notice of its intention to initiate such proceeding nor later than 5 
months after the expiration of such 60-day period. Upon institution 
of a proceeding under this section, the Commission shall give to the 
decision of such proceeding the same preference as provided under 
section 205 of this Act and otherwise act as speedily as possible. If no 
final decision is rendered by the refund effective date or by the 
conclusion of the 180-day period commencing upon initiation of a 
proceeding pursuant to this section, whichever is earlier, the 
Commission shall state the reasons why it has failed to do so and 
shall state its best estimate as to when it reasonably expects to 
make such decision. In any proceeding under this section, the Contracts. 
burden of proof to show that any rate, charge, classification, rule, 
regulation, practice, or contract is unjust, unreasonable, unduly 
discriminatory, or preferential shall be upon the Commission or the 
complainant. At the conclusion of any proceeding under this section, 
the Commission may order the public utility to make refunds of any 
amounts paid, for the period subsequent to the refund effective date 
through a date fifteen months after such refund effective date, in 
102 STAT. 2300 
PUBLIC LAW 100-473—OCT. 6, 1988 
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: Pro-
vided, 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.". 
16 u s e 824e 
SEC. 3. LIMITATION ON AUTHORITY PROVIDED. 
Nothing in subsection (c) of section 206 of the Federal Power Act, 
as amended (16 U.S.C. 824e(c)) shall be interpreted to confer upon 
the Federal Energy Regulatory Commission any authority not 
granted to it elsewhere in such Act to issue an order that (1) 
requires a decrease in system production or transmission costs to be 
paid by one or more electric utility companies of a registered 
holding company; and (2) is based upon a determination that the 
amount of such decrease should be paid through an increase in the 
costs to be paid by other electric utility companies of such registered 
holding company. For purposes of this section, the terms "electric 
utility companies" and "registered holding company" shall have 
the same meanings as provided in the Public Utility Holding Com-
pany Act of 1935, as amended. 
16 use 824e 
SEC. 4. EFFECTIVE DATE. 
The amendments made by this Act are not applicable to com-
plaints filed or motions initiated before the date of enactment of this 
Act pursuant to section 206 of the Federal Power Act: Provided, 
however. That such complaints may be withdrawn and refiled with-
out prejudice. 
PUBLIC LAW 100-473—OCT. 6, 1988 
102 STAT. 2301 
SEC. 5. STUDY. 
16 USC 824e 
No earlier than three years and no later than four years after the 
date of enactment of this Act, the Federal Energy Regulatory 
Commission shall perform a study of the effect of the amendments 
to section 206 of the Federal Power Act made by this Act. The study 
shall analyze (1) the impact, if any, of such amendments on the cost 
of capital paid by public utilities; (2) any change in the average time 
taken to resolve proceedings under section 206; and (3) such other 
matters as the Commission may deem appropriate in the public 
interest. Upon completion the study shall be sent to the Committee 
on Energy and Natural Resources of the Senate and the Committee 
on Energy and Commerce of the House of Representatives. 
Approved October 6, 1988. 
LEGISLATIVE HISTORY—H.R. 2858: 
HOUSE REPORTS: No. 100-384 (Comm. on Energy and Commerce). 
SENATE REPORTS: No. 100-491 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD: 
Vol. 133 (1987): Oct. 27, considered and passed House. 
Vol. 134 (1988): Sept. 8, considered and passed Senate, amended. 
Sept. 23, House concurred in Senate amendment.