16 U.S. Code § 824d - Rates and charges; schedules; suspension of new rates; automatic adjustment clauses

(a) Just and reasonable rates
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 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) Preference or advantage unlawful
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) Schedules
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 classifications, 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) Notice required for rate changes
Unless the Commission otherwise orders, no change shall be made by any public utility in any such rate, charge, 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) Suspension of new rates; hearings; five-month period
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 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) Review of automatic adjustment clauses and public utility practices; action by Commission; “automatic adjustment clause” defined
(1) Not later than 2 years after November 9, 1978, 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.

Source

(June 10, 1920, ch. 285, pt. II, § 205, as added Aug. 26, 1935, ch. 687, title II, § 213,49 Stat. 851; amended Pub. L. 95–617, title II, §§ 207(a), 208,Nov. 9, 1978, 92 Stat. 3142.)
Amendments

1978—Subsec. (d). Pub. L. 95–617, § 207(a), substituted “sixty” for “thirty” in two places.
Subsec. (f). Pub. L. 95–617, § 208, added subsec. (f).
Study of Electric Rate Increases Under Federal Power Act

Section 207(b) ofPub. L. 95–617directed chairman of Federal Energy Regulatory Commission, in consultation with Secretary, to conduct a study of legal requirements and administrative procedures involved in consideration and resolution of proposed wholesale electric rate increases under Federal Power Act, section 791a et seq. of this title, for purposes of providing for expeditious handling of hearings consistent with due process, preventing imposition of successive rate increases before they have been determined by Commission to be just and reasonable and otherwise lawful, and improving procedures designed to prohibit anticompetitive or unreasonable differences in wholesale and retail rates, or both, and that chairman report to Congress within nine months from Nov. 9, 1978, on results of study, on administrative actions taken as a result of this study, and on any recommendations for changes in existing law that will aid purposes of this section.

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16 USCDescription of ChangeSession YearPublic LawStatutes at Large

This is a list of parts within the Code of Federal Regulations for which this US Code section provides rulemaking authority.

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18 CFR - Conservation of Power and Water Resources

18 CFR Part 1b - RULES RELATING TO INVESTIGATIONS

18 CFR Part 1c - PROHIBITION OF ENERGY MARKET MANIPULATION

18 CFR Part 2 - GENERAL POLICY AND INTERPRETATIONS

18 CFR Part 3 - [Reserved]

18 CFR Part 5 - INTEGRATED LICENSE APPLICATION PROCESS

18 CFR Part 8 - RECREATIONAL OPPORTUNITIES AND DEVELOPMENT AT LICENSED PROJECTS

18 CFR Part 11 - ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT

18 CFR Part 12 - SAFETY OF WATER POWER PROJECTS AND PROJECT WORKS

18 CFR Part 16 - PROCEDURES RELATING TO TAKEOVER AND RELICENSING OF LICENSED PROJECTS

18 CFR Part 24 - DECLARATION OF INTENTION

18 CFR Part 32 - INTERCONNECTION OF FACILITIES

18 CFR Part 33 - APPLICATIONS UNDER FEDERAL POWER ACT SECTION 203

18 CFR Part 34 - APPLICATION FOR AUTHORIZATION OF THE ISSUANCE OF SECURITIES OR THE ASSUMPTION OF LIABILITIES

18 CFR Part 35 - FILING OF RATE SCHEDULES AND TARIFFS

18 CFR Part 36 - RULES CONCERNING APPLICATIONS FOR TRANSMISSION SERVICES UNDER SECTION 211 OF THE FEDERAL POWER ACT

18 CFR Part 37 - OPEN ACCESS SAME-TIME INFORMATION SYSTEMS

18 CFR Part 41 - ACCOUNTS, RECORDS, MEMORANDA AND DISPOSITION OF CONTESTED AUDIT FINDINGS AND PROPOSED REMEDIES

18 CFR Part 42 - LONG-TERM FIRM TRANSMISSION RIGHTS IN ORGANIZED ELECTRICITY MARKETS

18 CFR Part 45 - APPLICATION FOR AUTHORITY TO HOLD INTERLOCKING POSITIONS

18 CFR Part 46 - PUBLIC UTILITY FILING REQUIREMENTS AND FILING REQUIREMENTS FOR PERSONS HOLDING INTERLOCKING POSITIONS

18 CFR Part 101 - UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR PUBLIC UTILITIES AND LICENSEES SUBJECT TO THE PROVISIONS OF THE FEDERAL POWER ACT

18 CFR Part 131 - FORMS

18 CFR Part 141 - STATEMENTS AND REPORTS (SCHEDULES)

18 CFR Part 154 - RATE SCHEDULES AND TARIFFS

18 CFR Part 225 - PRESERVATION OF RECORDS OF NATURAL GAS COMPANIES

18 CFR Part 260 - STATEMENTS AND REPORTS (SCHEDULES)

18 CFR Part 290 - COLLECTION OF COST OF SERVICE INFORMATION UNDER SECTION 133 OF THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978

18 CFR Part 292 - REGULATIONS UNDER SECTIONS 201 AND 210 OF THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 WITH REGARD TO SMALL POWER PRODUCTION AND COGENERATION

18 CFR Part 294 - PROCEDURES FOR SHORTAGES OF ELECTRIC ENERGY AND CAPACITY UNDER SECTION 206 OF THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978

18 CFR Part 358 - STANDARDS OF CONDUCT

18 CFR Part 375 - THE COMMISSION

18 CFR Part 381 - FEES

18 CFR Part 382 - ANNUAL CHARGES

18 CFR Part 385 - RULES OF PRACTICE AND PROCEDURE

18 CFR Part 390 - ELECTRONIC REGISTRATION

 

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