16 U.S.C. § 2625 — Special rules for standards

Page 2206 TITLE 16—CONSERVATION § 2624 (b) Establishment The following Federal standards are hereby es- tablished: (1) Master metering To the extent determined appropriate under section 2625(d) of this title, master metering of electric service in the case of new buildings shall be prohibited or restricted to the extent necessary to carry out the purposes of this chapter. (2) Automatic adjustment clauses No electric utility may increase any rate pursuant to an automatic adjustment clause unless such clause meets the requirements of section 2625(e) of this title. (3) Information to consumers Each electric utility shall transmit to each of its electric consumers information regard- ing rate schedules in accordance with the re- quirements of section 2625(f) of this title. (4) Procedures for termination of electric serv- ice No electric utility may terminate electric service to any electric consumer except pursu- ant to procedures described in section 2625(g) of this title. (5) Advertising No electric utility may recover from any person other than the shareholders (or other owners) of such utility any direct or indirect expenditure by such utility for promotional or political advertising as defined in section 2625(h) of this title. (c) Procedural requirements Each State regulatory authority (with respect to each electric utility for which it has rate- making authority) and each nonregulated elec- tric utility, within the two-year period specified in subsection (a), shall (1) adopt, pursuant to subsection (a), each of the standards established by subsection (b) or, (2) with respect to any such standard which is not adopted, such authority or nonregulated electric utility shall state in writ- ing that it has determined not to adopt such standard, together with the reasons for such de- termination. Such statement of reasons shall be available to the public. (Pub. L. 95–617, title I, § 113, Nov. 9, 1978, 92 Stat. 3123.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (b), was in the original ‘‘this title’’, meaning title I (§ 101 et seq.) of Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted subchapters I to IV of this chapter and section 6808 of Title 42, The Public Health and Welfare, and amended sections 6802 to 6807 of Title 42. For complete classification of title I to the Code, see Tables. § 2624. Lifeline rates (a) Lower rates No provision of this chapter prohibits a State regulatory authority (with respect to an electric utility for which it has ratemaking authority) or a nonregulated electric utility from fixing, approving, or allowing to go into effect a rate for essential needs (as defined by the State regu- latory authority or by the nonregulated electric utility, as the case may be) of residential elec- tric consumers which is lower than a rate under the standard referred to in section 2621(d)(1) of this title. (b) Determination If any State regulated electric utility or non- regulated electric utility does not have a lower rate as described in subsection (a) in effect two years after November 9, 1978, the State regu- latory authority having ratemaking authority with respect to such State regulated electric utility or the nonregulated electric utility, as the case may be, shall determine, after an evi- dentiary hearing, whether such a rate should be implemented by such utility. (c) Prior proceedings Section 2634 of this title shall not apply to the requirements of this section. (Pub. L. 95–617, title I, § 114, Nov. 9, 1978, 92 Stat. 3124.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original ‘‘this title’’, meaning title I (§ 101 et seq.) of Pub. L. 95–617, Nov. 9, 1978, 92 Stat. 3120, which enacted subchapters I to IV of this chapter and section 6808 of Title 42, The Public Health and Welfare, and amended sections 6802 to 6807 of Title 42. For complete classifica- tion of title I to the Code, see Tables. § 2625. Special rules for standards (a) Cost of service In undertaking the consideration and making the determination under section 2621 of this title with respect to the standard concerning cost of service established by section 2621(d)(1) of this title, the costs of providing electric serv- ice to each class of electric consumers shall, to the maximum extent practicable, be determined on the basis of methods prescribed by the State regulatory authority (in the case of a State reg- ulated electric utility) or by the electric utility (in the case of a nonregulated electric utility). Such methods shall to the maximum extent practicable— (1) permit identification of differences in cost-incurrence, for each such class of electric consumers, attributable to daily and seasonal time of use of service and (2) permit identification of differences in cost-incurrence attributable to differences in customer demand, and energy components of cost. In prescribing such methods, such State regulatory authority or nonregulated electric utility shall take into account the extent to which total costs to an electric utility are likely to change if— (A) additional capacity is added to meet peak demand relative to base demand; and (B) additional kilowatt-hours of electric energy are delivered to electric consumers. (b) Time-of-day rates In undertaking the consideration and making the determination required under section 2621 of Page 2207 TITLE 16—CONSERVATION § 2625 this title with respect to the standard for time- of-day rates established by section 2621(d)(3) of this title and the standard for time-based meter- ing and communications established by section 2621(d)(14) of this title, a time-of-day rate charged by an electric utility for providing elec- tric service to each class of electric consumers shall be determined to be cost-effective with re- spect to each such class if the long-run benefits of such rate to the electric utility and its elec- tric consumers in the class concerned are likely to exceed the metering and communications costs and other costs associated with the use of such rates. (c) Load management techniques In undertaking the consideration and making the determination required under section 2621 of this title with respect to the standard for load management techniques established by section 2621(d)(6) of this title, a load management tech- nique shall be determined, by the State regu- latory authority or nonregulated electric util- ity, to be cost-effective if— (1) such technique is likely to reduce max- imum kilowatt demand on the electric utility, and (2) the long-run cost-savings to the utility of such reduction are likely to exceed the long- run costs to the utility associated with imple- mentation of such technique. (d) Master metering Separate metering shall be determined appro- priate for any new building for purposes of sec- tion 2623(b)(1) of this title if— (1) there is more than one unit in such build- ing, (2) the occupant of each such unit has con- trol over a portion of the electric energy used in such unit, and (3) with respect to such portion of electric energy used in such unit, the long-run benefits to the electric consumers in such building ex- ceed the costs of purchasing and installing separate meters in such building. (e) Automatic adjustment clauses (1) An automatic adjustment clause of an elec- tric utility meets the requirements of this sub- section if— (A) such clause is determined, not less often than every four years, by the State regulatory authority (with respect to an electric utility for which it has ratemaking authority) or by the electric utility (in the case of a nonregu- lated electric utility), after an evidentiary hearing, to provide incentives for efficient use of resources (including incentives for economi- cal purchase and use of fuel and electric en- ergy) by such electric utility, and (B) such clause is reviewed not less often than every two years, in the manner described in paragraph (2), by the State regulatory au- thority having ratemaking authority with re- spect to such utility (or by the electric utility in the case of a nonregulated electric utility), to insure the maximum economies in those op- erations and purchases which affect the rates to which such clause applies. (2) In making a review under subparagraph (B) of paragraph (1) with respect to an electric util- ity, the reviewing authority shall examine and, if appropriate, cause to be audited the practices of such electric utility relating to costs subject to an automatic adjustment clause, and shall re- quire such reports as may be necessary to carry out such review (including a disclosure of any ownership or corporate relationship between such electric utility and the seller to such util- ity of fuel, electric energy, or other items). (3) As used in this subsection and section 2623(b) of this title, the term ‘‘automatic adjust- ment clause’’ means a provision of a rate sched- ule 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 in- clude an interim rate which takes effect subject to a later determination of the appropriate amount of the rate. (f) Information to consumers (1) For purposes of the standard for informa- tion to consumers established by section 2623(b)(3) of this title, each electric utility shall transmit to each of its electric consumers a clear and concise explanation of the existing rate schedule and any rate schedule applied for (or proposed by a nonregulated electric utility) applicable to such consumer. Such statement shall be transmitted to each such consumer— (A) not later than sixty days after the date of commencement of service to such consumer or ninety days after the standard established by section 2623(b)(3) of this title is adopted with respect to such electric utility, which- ever last occurs, and (B) not later than thirty days (sixty days in the case of an electric utility which uses a bi- monthly billing system) after such utility’s application for any change in a rate schedule applicable to such consumer (or proposal of such a change in the case of a nonregulated utility). (2) For purposes of the standard for informa- tion to consumers established by section 2623(b)(3) of this title, each electric utility shall transmit to each of its electric consumers not less frequently than once each year— (A) a clear and concise summary of the ex- isting rate schedules applicable to each of the major classes of its electric consumers for which there is a separate rate, and (B) an identification of any classes whose rates are not summarized. Such summary may be transmitted together with such consumer’s billing or in such other manner as the State regulatory authority or nonregulated electric utility deems appropriate. (3) For purposes of the standard for informa- tion to consumers established by section 2623(b)(3) of this title, each electric utility, on request of an electric consumer of such utility, shall transmit to such consumer a clear and concise statement of the actual consumption (or degree-day adjusted consumption) of electric en- ergy by such consumer for each billing period during the prior year (unless such consumption data is not reasonably ascertainable by the util- ity). Page 2208 TITLE 16—CONSERVATION § 2626 (g) Procedures for termination of electric service The procedures for termination of service re- ferred to in section 2623(b)(4) of this title are procedures prescribed by the State regulatory authority (with respect to electric utilities for which it has ratemaking authority) or by the nonregulated electric utility which provide that— (1) no electric service to an electric con- sumer may be terminated unless reasonable prior notice (including notice of rights and remedies) is given to such consumer and such consumer has a reasonable opportunity to dis- pute the reasons for such termination, and (2) during any period when termination of service to an electric consumer would be espe- cially dangerous to health, as determined by the State regulatory authority (with respect to an electric utility for which it has rate- making authority) or nonregulated electric utility, and such consumer establishes that— (A) he is unable to pay for such service in accordance with the requirements of the utility’s billing, or (B) he is able to pay for such service but only in installments, such service may not be terminated. Such procedures shall take into account the need to include reasonable provisions for elderly and handicapped consumers. (h) Advertising (1) For purposes of this section and section 2623(b)(5) of this title— (A) The term ‘‘advertising’’ means the com- mercial use, by an electric utility, of any media, including newspaper, printed matter, radio, and television, in order to transmit a message to a substantial number of members of the public or to such utility’s electric con- sumers. (B) The term ‘‘political advertising’’ means any advertising for the purpose of influencing public opinion with respect to legislative, ad- ministrative, or electoral matters, or with re- spect to any controversial issue of public im- portance. (C) The term ‘‘promotional advertising’’ means any advertising for the purpose of en- couraging any person to select or use the serv- ice or additional service of an electric utility or the selection or installation of any appli- ance or equipment designed to use such util- ity’s service. (2) For purposes of this subsection and section 2623(b)(5) of this title, the terms ‘‘political ad- vertising’’ and ‘‘promotional advertising’’ do not include— (A) advertising which informs electric con- sumers how they can conserve energy or can reduce peak demand for electric energy, (B) advertising required by law or regula- tion, including advertising required under part 1 of title II of the National Energy Conserva- tion Policy Act [42 U.S.C. 8211 et seq.], (C) advertising regarding service interrup- tions, safety measures, or emergency condi- tions, (D) advertising concerning employment op- portunities with such utility, (E) advertising which promotes the use of energy efficient appliances, equipment or serv- ices, or (F) any explanation or justification of exist- ing or proposed rate schedules, or notifica- tions of hearings thereon. (i) Time-based metering and communications In making a determination with respect to the standard established by section 2621(d)(14) of this title, the investigation requirement of sec- tion 2621(d)(14)(F) of this title shall be as fol- lows: Each State regulatory authority shall con- duct an investigation and issue a decision whether or not it is appropriate for electric util- ities to provide and install time-based meters and communications devices for each of their customers which enable such customers to par- ticipate in time-based pricing rate schedules and other demand response programs. (Pub. L. 95–617, title I, § 115, Nov. 9, 1978, 92 Stat. 3125; Pub. L. 109–58, title XII, § 1252(b), Aug. 8, 2005, 119 Stat. 965.) Editorial Notes REFERENCES IN TEXT The National Energy Conservation Policy Act, re- ferred to in subsec. (h)(2)(B), is Pub. L. 95–619, Nov. 9, 1978, 92 Stat. 3206. Part 1 of title II of the National En- ergy Conservation Policy Act was classified generally to part A (§ 8211 et seq.) of subchapter II of chapter 91 of Title 42, The Public Health and Welfare, and was omitted from the Code pursuant to section 8229 of Title 42 which terminated authority under that part June 30, 1989. For complete classification of this Act to the Code, see Short Title note set out under section 8201 of Title 42 and Tables. AMENDMENTS 2005—Subsec. (b). Pub. L. 109–58, § 1252(b)(1), (2), in- serted ‘‘and the standard for time-based metering and communications established by section 2621(d)(14) of this title’’ after ‘‘section 2621(d)(3) of this title’’ and substituted ‘‘metering and communications costs’’ for ‘‘metering costs’’. Subsec. (i). Pub. L. 109–58, § 1252(b)(3), added subsec. (i). § 2626. Reports respecting standards (a) State authorities and nonregulated utilities Not later than one year after November 9, 1978, and annually thereafter for ten years, each State regulatory authority (with respect to each State regulated electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall report to the Secretary, in such manner as the Secretary shall prescribe, respecting its consideration of the standards es- tablished by sections 2621(d) and 2623(b) of this title. Such report shall include a summary of the determinations made and actions taken with respect to each such standard on a utility-by- utility basis. (b) Secretary Not later than eighteen months after Novem- ber 9, 1978, and annually thereafter for ten years, the Secretary shall submit a report to the Presi- dent and the Congress containing— (1) a summary of the reports submitted under subsection (a), (2) his analysis of such reports, and