18 CFR 35.35 - Transmission infrastructure investment.

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§ 35.35 Transmission infrastructure investment.
(a) Purpose. This section establishes rules for incentive-based (including performance-based) rate treatments for transmission of electric energy in interstate commerce by public utilities for the purpose of benefiting consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.
(b) Definitions.
(1) Transco means a stand-alone transmission company that has been approved by the Commission and that sells transmission services at wholesale and/or on an unbundled retail basis, regardless of whether it is affiliated with another public utility.
(2) 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.
(c) General rule. All rates approved under the rules of this section, including any revisions to the rules, are subject to the filing requirements of sections 205 and 206 of the Federal Power Act and to the substantive requirements of sections 205 and 206 of the Federal Power Act that all rates, charges, terms and conditions be just and reasonable and not unduly discriminatory or preferential.
(d) Incentive-based rate treatments for transmission infrastructure investment. The Commission will authorize any incentive-based rate treatment, as discussed in this paragraph (d), for transmission infrastructure investment, provided that the proposed incentive-based rate treatment is just and reasonable and not unduly discriminatory or preferential. A public utility's request for one or more incentive-based rate treatments, to be made in a filing pursuant to section 205 of the Federal Power Act, or in a petition for a declaratory order that precedes a filing pursuant to section 205, must include a detailed explanation of how the proposed rate treatment complies with the requirements of section 219 of the Federal Power Act and a demonstration that the proposed rate treatment is just, reasonable, and not unduly discriminatory or preferential. The applicant must demonstrate that the facilities for which it seeks incentives either ensure reliability or reduce the cost of delivered power by reducing transmission congestion consistent with the requirements of section 219, that the total package of incentives is tailored to address the demonstrable risks or challenges faced by the applicant in undertaking the project, and that resulting rates are just and reasonable. For purposes of this paragraph (d), incentive-based rate treatment means any of the following:
(1) For purposes of this paragraph (d), incentive-based rate treatment means any of the following:
(i) A rate of return on equity sufficient to attract new investment in transmission facilities;
(ii) 100 percent of prudently incurred Construction Work in Progress (CWIP) in rate base;
(iii) Recovery of prudently incurred pre-commercial operations costs;
(iv) Hypothetical capital structure;
(v) Accelerated depreciation used for rate recovery;
(vi) Recovery of 100 percent of prudently incurred costs of transmission facilities that are cancelled or abandoned due to factors beyond the control of the public utility;
(vii) Deferred cost recovery; and
(viii) Any other incentives approved by the Commission, pursuant to the requirements of this paragraph, that are determined to be just and reasonable and not unduly discriminatory or preferential.
(2) In addition to the incentives in § 35.35(d)(1), the Commission will authorize the following incentive-based rate treatments for Transcos, provided that the proposed incentive-based rate treatment is just and reasonable and not unduly discriminatory or preferential:
(i) A return on equity that both encourages Transco formation and is sufficient to attract investment; and
(ii) An adjustment to the book value of transmission assets being sold to a Transco to remove the disincentive associated with the impact of accelerated depreciation on federal capital gains tax liabilities.
(e) Incentives for joining a Transmission Organization. The Commission will authorize an incentive-based rate treatment, as discussed in this paragraph (e), for public utilities that join a Transmission Organization, if the applicant demonstrates that the proposed incentive-based rate treatment is just and reasonable and not unduly discriminatory or preferential. Applicants for the incentive-based rate treatment must make a filing with the Commission under section 205 of the Federal Power Act. For purposes of this paragraph (e), an incentive-based rate treatment means a return on equity that is higher than the return on equity the Commission might otherwise allow if the public utility did not join a Transmission Organization. The Commission will also permit transmitting utilities or electric utilities that join a Transmission Organization the ability to recover prudently incurred costs associated with joining the Transmission Organization, either through transmission rates charged by transmitting utilities or electric utilities or through transmission rates charged by the Transmission Organization that provides services to such utilities.
(f) Approval of prudently-incurred costs. The Commission will approve recovery of prudently-incurred costs necessary to comply with the mandatory reliability standards pursuant to section 215 of the Federal Power Act, provided that the proposed rates are just and reasonable and not unduly discriminatory or preferential.
(g) Approval of prudently incurred costs related to transmission infrastructure development. The Commission will approve recovery of prudently-incurred costs related to transmission infrastructure development pursuant to section 216 of the Federal Power Act, provided that the proposed rates are just and reasonable and not unduly discriminatory or preferential.
(h) FERC-730, Report of transmission investment activity. Public utilities that have been granted incentive rate treatment for specific transmission projects must file FERC-730 on an annual basis beginning with the calendar year incentive rate treatment is granted by the Commission. Such filings are due by April 18 of the following calendar year and are due April 18 each year thereafter. The following information must be filed:
(1) In dollar terms, actual transmission investment for the most recent calendar year, and projected, incremental investments for the next five calendar years;
(2) For all current and projected investments over the next five calendar years, a project by project listing that specifies for each project the most up-to-date, expected completion date, percentage completion as of the date of filing, and reasons for delays. Exclude from this listing projects with projected costs less than $20 million; and
(3) For good cause shown, the Commission may extend the time within which any FERC-730 filing is to be filed or waive the requirements applicable to any such filing.
(i) Rebuttable presumption.
(1) The Commission will apply a rebuttable presumption that an applicant has demonstrated that its project is needed to ensure reliability or reduces the cost of delivered power by reducing congestion for:
(i) A transmission project that results from a fair and open regional planning process that considers and evaluates projects for reliability and/or congestion and is found to be acceptable to the Commission; or
(ii) A project that has received construction approval from an appropriate state commission or state siting authority.
(2) To the extent these approval processes do not require that a project ensures reliability or reduce the cost of delivered power by reducing congestion, the applicant bears the burden of demonstrating that its project satisfies these criteria.
(j) Commission authorization to site electric transmission facilities in interstate commerce. If the Commission pursuant to its authority under section 216 of the Federal Power Act and its regulations thereunder has issued one or more permits for the construction or modification of transmission facilities in a national interest electric transmission corridor designated by the Secretary, such facilities shall be deemed to either ensure reliability or reduce the cost of delivered power by reducing congestion for purposes of section 219(a).
[Order 679, 71 FR 43338, July 31, 2006, as amended by Order 679-A, 72 FR 1172, Jan. 10, 2007, Order 691, 72 FR 5174, Feb. 5, 2007]

Title 18 published on 2014-04-01

The following are only the Rules published in the Federal Register after the published date of Title 18.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-07-23; vol. 79 # 141 - Wednesday, July 23, 2014
    1. 79 FR 42665 - Payment of Dividends From Funds Included in Capital Account
      GPO FDSys XML | Text
      DEPARTMENT OF ENERGY, Federal Energy Regulatory Commission
      Policy statement.
      This policy will become effective July 23, 2014.
      18 CFR Parts 2 and 35

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 16 - CONSERVATION

§ 791 - Repealed. Aug. 26, 1935, ch. 687, title II,

§ 791a - Short title

§ 792 - Federal Power Commission; creation; number; appointment; term; qualifications; vacancies; quorum; chairman; salary; place of holding sessions

§ 793 - Appointment of officers and employees of Commission; duties, and salaries; detail of officers and employees from other departments; expenditures authorized

§ 793a - Repealed.

§ 794, 795 - Omitted

§ 796 - Definitions

§ 797 - General powers of Commission

§ 797a - Congressional authorization for permits, licenses, leases, or authorizations for dams, conduits, reservoirs, etc., within national parks or monuments

§ 797b - Duty to keep Congress fully and currently informed

§ 797c - Dams in National Park System units

§ 797d - Third party contracting by FERC

§ 798 - Purpose and scope of preliminary permits; transfer and cancellation

§ 799 - License; duration, conditions, revocation, alteration, or surrender

§ 800 - Issuance of preliminary permits or licenses

§ 801 - Transfer of license; obligations of transferee

§ 802 - Information to accompany application for license; landowner notification

§ 803 - Conditions of license generally

§ 804 - Project works affecting navigable waters; requirements insertable in license

§ 805 - Participation by Government in costs of locks, etc.

§ 806 - Time limit for construction of project works; extension of time; termination or revocation of licenses for delay

§ 807 - Right of Government to take over project works

§ 808 - New licenses and renewals

§ 809 - Temporary use by Government of project works for national safety; compensation for use

§ 810 - Disposition of charges arising from licenses

§ 811 - Operation of navigation facilities; rules and regulations; penalties

§ 812 - Public-service licensee; regulations by State or by commission as to service, rates, charges, etc.

§ 813 - Power entering into interstate commerce; regulation of rates, charges, etc.

§ 814 - Exercise by licensee of power of eminent domain

§ 815 - Contract to furnish power extending beyond period of license; obligations of new licensee

§ 816 - Preservation of rights vested prior to June 10, 1920

§ 817 - Projects not affecting navigable waters; necessity for Federal license, permit or right-of-way; unauthorized activities

§ 818 - Public lands included in project; reservation of lands from entry

§ 819 - Repealed. Aug. 26, 1935, ch. 687, title II,

§ 820 - Proceedings for revocation of license or to prevent violations of license

§ 821 - State laws and water rights unaffected

§ 822 - Reservation of right to alter or repeal chapter

§ 823 - Repeal of inconsistent laws

§ 823a - Conduit hydroelectric facilities

§ 823b - Enforcement

§ 823c - Alaska State jurisdiction over small hydroelectric projects

§ 823d - Alternative conditions and prescriptions

§ 824 - Declaration of policy; application of subchapter

§ 824a - Interconnection and coordination of facilities; emergencies; transmission to foreign countries

16 U.S. Code § 794, 795 - Omitted

16 U.S. Code § 794, 795 - Omitted

16 U.S. Code § 794, 795 - Omitted

16 U.S. Code § 794, 795 - Omitted

§ 824b - Disposition of property; consolidations; purchase of securities

§ 824c - Issuance of securities; assumption of liabilities

§ 824d - Rates and charges; schedules; suspension of new rates; automatic adjustment clauses

§ 824e - Power of Commission to fix rates and charges; determination of cost of production or transmission

§ 824f - Ordering furnishing of adequate service

§ 824g - Ascertainment of cost of property and depreciation

§ 824h - References to State boards by Commission

§ 824i - Interconnection authority

§ 824j - Wheeling authority

16 U.S. Code § 794, 795 - Omitted

§ 824k - Orders requiring interconnection or wheeling

16 U.S. Code § -

§ 824m - Sales by exempt wholesale generators

§ 824n - Repealed.

16 U.S. Code § -

§ 824p - Siting of interstate electric transmission facilities

§ 824q - Native load service obligation

§ 824r - Protection of transmission contracts in the Pacific Northwest

§ 824s - Transmission infrastructure investment

§ 824t - Electricity market transparency rules

§ 824u - Prohibition on filing false information

§ 824v - Prohibition of energy market manipulation

§ 824w - Joint boards on economic dispatch

§ 825 - Accounts and records

§ 825a - Rates of depreciation; notice to State authorities before fixing

§ 825b - Requirements applicable to agencies of United States

§ 825c - Periodic and special reports; obstructing filing reports or keeping accounts, etc.

§ 825d - Officials dealing in securities

§ 825e - Complaints

§ 825f - Investigations by Commission

§ 825g - Hearings; rules of procedure

§ 825h - Administrative powers of Commission; rules, regulations, and orders

§ 825i - Appointment of officers and employees; compensation

§ 825j - Investigations relating to electric energy; reports to Congress

§ 825k - Publication and sale of reports

16 U.S. Code § -

§ 825m - Enforcement provisions

§ 825n - Forfeiture for violations; recovery; applicability

16 U.S. Code § -

16 U.S. Code § 794, 795 - Omitted

§ 825p - Jurisdiction of offenses; enforcement of liabilities and duties

§ 825q - Repealed.

16 U.S. Code § 794, 795 - Omitted

§ 825r - Separability

§ 2601 - Findings

§ 2602 - Definitions

§ 2603 - Relationship to antitrust laws

§ 2611 - Purposes

§ 2612 - Coverage

§ 2613 - Federal contracts

§ 2621 - Consideration and determination respecting certain ratemaking standards

§ 2622 - Obligations to consider and determine

§ 2623 - Adoption of certain standards

§ 2624 - Lifeline rates

§ 2625 - Special rules for standards

§ 2626 - Reports respecting standards

§ 2627 - Relationship to State law

§ 2631 - Intervention in proceedings

§ 2632 - Consumer representation

§ 2633 - Judicial review and enforcement

§ 2634 - Prior and pending proceedings

§ 2641 - Voluntary guidelines

§ 2642 - Responsibilities of Secretary

§ 2643 - Gathering information on costs of service

§ 2644 - Relationship to other authority

§ 2645 - Utility regulatory institute

U.S. Code: Title 31 - MONEY AND FINANCE
U.S. Code: Title 42 - THE PUBLIC HEALTH AND WELFARE

§ 7101 - Definitions

§ 7111 - Congressional findings

§ 7112 - Congressional declaration of purpose

§ 7113 - Relationship with States

§ 7131 - Establishment

§ 7132 - Principal officers

§ 7133 - Assistant Secretaries; appointment and confirmation; identification of responsibilities

§ 7134 - Federal Energy Regulatory Commission; compensation of Chairman and members

§ 7135 - Energy Information Administration

§ 7135a - Delegation by Secretary of Energy of energy research, etc., functions to Administrator of Energy Information...Administration; prohibition against required delegation; utilization of capabilities by Secretary

§ 7136 - Economic Regulatory Administration; appointment of Administrator; compensation; qualifications; functions

§ 7137 - Functions of Comptroller General

§ 7138 - Repealed.

§ 7139 - Office of Science; establishment; appointment of Director; compensation; duties

§ 7140 - Leasing Liaison Committee; establishment; composition

§ 7141 - Office of Minority Economic Impact

§ 7142 - National Atomic Museum and National Atomic Testing Museum

§ 7142a - Designation of American Museum of Science and Energy

§ 7142b - Authority

§ 7142c - Museum volunteers

§ 7142d - Definitions

§ 7143 - Repealed.

§ 7144 - Establishment of policy for National Nuclear Security Administration

§ 7144a - Establishment of security, counterintelligence, and intelligence policies

§ 7144b - Office of Counterintelligence

§ 7144c - Office of Intelligence

§ 7144d - Office of Arctic Energy

§ 7144e - Office of Indian Energy Policy and Programs

§ 7151 - General transfers

§ 7151a - Jurisdiction over matters transferred from Energy Research and Development Administration

§ 7152 - Transfers from Department of the Interior

§ 7153 - Administration of leasing transfers

§ 7154 - Transfers from Department of Housing and Urban Development

§ 7155 - Repealed.

§ 7156 - Transfers from Department of the Navy

§ 7156a - Repealed.

§ 7157 - Transfers from Department of Commerce

§ 7158 - Naval reactor and military application programs

§ 7159 - Transfer to Department of Transportation

§ 7171 - Appointment and administration

§ 7172 - Jurisdiction of Commission

§ 7173 - Initiation of rulemaking procedures before Commission

§ 7174 - Referral of other rulemaking proceedings to Commission

§ 7175 - Right of Secretary to intervene in Commission proceedings

§ 7176 - Reorganization

§ 7177 - Access to information

§ 7178 - Federal Energy Regulatory Commission fees and annual charges

§ 7191 - Procedures for issuance of rules, regulations, or orders

§ 7192 - Judicial review

§ 7193 - Remedial orders

§ 7194 - Requests for adjustments

§ 7195 - Report to Congress; contents

§ 7211, 7212 - Repealed.

§ 7213 to 7217 - Repealed.

§ 7218 - Repealed.

§ 7231 - Officers and employees

§ 7232 - Senior positions

§ 7233 - Experts and consultants

§ 7234 - Advisory committees

§ 7235 - Armed services personnel

§ 7236 - Transferred

§ 7237 - Priority placement, job placement, retraining, and counseling programs for United States Department of Energy employees affected by reduction in force

§ 7238 - Temporary appointments for scientific and technical experts in Department of Energy research and development programs

§ 7239 - Transferred

§ 7251 - General authority

§ 7252 - Delegation

§ 7253 - Reorganization

§ 7254 - Rules and regulations

§ 7255 - Subpoena

§ 7256 - Contracts, leases, etc., with public agencies and private organizations and persons

§ 7256a, 7256b - Transferred

§ 7257 - Acquisition, construction, etc., of laboratories, research and testing sites, etc.

§ 7257a to 7257c - Transferred

§ 7257d - Expanded research by Secretary of Energy

§ 7258 - Facilities construction

§ 7259 - Use of facilities

§ 7259a - Activities of Department of Energy facilities

§ 7260 - Field offices

§ 7261 - Acquisition of copyrights, patents, etc.

§ 7261a - Protection of sensitive technical information

§ 7261b - Technology transfer to small businesses

§ 7261c - Technology partnerships ombudsman

§ 7262 - Repealed.

§ 7263 - Capital fund

§ 7264 - Seal of Department

§ 7265 - Regional Energy Advisory Boards

§ 7266 - Designation of conservation officers

§ 7267 - Annual report

§ 7268 - Leasing report

§ 7269 - Transfer of funds

§ 7269a - Repealed.

§ 7269b - Transfer of unexpended appropriation balances

§ 7269c - Funding for Department of Energy activities not included in Fossil Energy account

§ 7270 - Authorization of appropriations

§ 7270a - Guards for Strategic Petroleum Reserve facilities

§ 7270b - Trespass on Strategic Petroleum Reserve facilities

§ 7270c - Annual assessment and report on vulnerability of facilities to terrorist attack

§ 7271 - Transferred

§ 7271a - Repealed.

§ 7271b - Repealed.

§ 7271c - Repealed.

§ 7271d to 7273a - Transferred

§ 7273b - Security investigations

§ 7273c - Transferred

§ 7274 - Environmental impact statements relating to defense facilities of Department of Energy

§ 7274a to 7274d - Transferred

§ 7274e - Scholarship and fellowship program for environmental restoration and waste management

§ 7274f - Transferred

§ 7274g - Environmental restoration and waste management five-year plan and budget reports

§ 7274h, 7274i - Transferred

§ 7274j - Repealed.

§ 7274k - Transferred

42 U.S. Code § -

42 U.S. Code § -

§ 7274p - Transferred

§ 7274q - Transferred

§ 7274r - Transferred

§ 7274s - Transferred

§ 7275 - Definitions

§ 7276 - Regulations to require integrated resource planning

§ 7276a - Technical assistance

§ 7276b - Integrated resource plans

§ 7276c - Miscellaneous provisions

§ 7276d - Property protection program for power marketing administrations

§ 7276e - Provision of rewards

§ 7276f - Western Area Power Administration; deposit and availability of discretionary offsetting collections

§ 7276g - Western Area Power Administration; deposit and availability of funds related to Falcon and Amistad Dams

§ 7277 - Report concerning review of United States coal imports

§ 7278 - Availability of appropriations for Department of Energy for transportation, uniforms, security, and price support and loan guarantee programs; transfer of funds; acceptance of contributions

§ 7279 - Identification in budget materials of amounts for certain Department of Energy pension obligations

§ 7279a - Future-years energy program annual submission and budgeting

§ 7291 - Transfer and allocations of appropriations and personnel

§ 7292 - Effect on personnel

§ 7293 - Agency terminations

§ 7294 - Incidental transfers

§ 7295 - Savings provisions

§ 7296 - Separability

§ 7297 - Cross references

§ 7298 - Presidential authority

§ 7299 - Transition

§ 7300 - Report to Congress; effect on personnel

§ 7301 - Environmental impact statements

§ 7321 - National Energy Policy Plan

§ 7322 - Congressional review

§ 7341 - Effective date

§ 7342 - Interim appointments

§ 7351 - Submission of comprehensive review

§ 7352 - Contents of review

Title 18 published on 2014-04-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 18 CFR 35 after this date.

  • 2014-07-25; vol. 79 # 143 - Friday, July 25, 2014
    1. 79 FR 43536 - Refinements to Policies and Procedures for Market-Based Rates for Wholesale Sales of Electric Energy, Capacity and Ancillary Services by Public Utilities
      GPO FDSys XML | Text
      DEPARTMENT OF ENERGY, Federal Energy Regulatory Commission
      Notice of proposed rulemaking.
      Comments are due September 23, 2014.
      18 CFR Part 35