15 U.S.C. § 717c — Rates and charges

Page 1190 TITLE 15—COMMERCE AND TRADE § 717c under the National Environmental Policy Act of 1969 prior to filing an application with the Com- mission. The regulations shall require that the pre-filing process commence at least 6 months prior to the filing of an application for author- ization to construct an LNG terminal and en- courage applicants to cooperate with State and local officials. (b) State consultation The Governor of a State in which an LNG ter- minal is proposed to be located shall designate the appropriate State agency for the purposes of consulting with the Commission regarding an application under section 717b of this title. The Commission shall consult with such State agen- cy regarding State and local safety consider- ations prior to issuing an order pursuant to sec- tion 717b of this title. For the purposes of this section, State and local safety considerations include— (1) the kind and use of the facility; (2) the existing and projected population and demographic characteristics of the location; (3) the existing and proposed land use near the location; (4) the natural and physical aspects of the location; (5) the emergency response capabilities near the facility location; and (6) the need to encourage remote siting. (c) Advisory report The State agency may furnish an advisory re- port on State and local safety considerations to the Commission with respect to an application no later than 30 days after the application was filed with the Commission. Before issuing an order authorizing an applicant to site, con- struct, expand, or operate an LNG terminal, the Commission shall review and respond specifi- cally to the issues raised by the State agency described in subsection (b) in the advisory re- port. This subsection shall apply to any applica- tion filed after August 8, 2005. A State agency has 30 days after August 8, 2005 to file an advi- sory report related to any applications pending at the Commission as of August 8, 2005. (d) Inspections The State commission of the State in which an LNG terminal is located may, after the ter- minal is operational, conduct safety inspections in conformance with Federal regulations and guidelines with respect to the LNG terminal upon written notice to the Commission. The State commission may notify the Commission of any alleged safety violations. The Commission shall transmit information regarding such alle- gations to the appropriate Federal agency, which shall take appropriate action and notify the State commission. (e) Emergency Response Plan (1) In any order authorizing an LNG terminal the Commission shall require the LNG terminal operator to develop an Emergency Response Plan. The Emergency Response Plan shall be prepared in consultation with the United States Coast Guard and State and local agencies and be approved by the Commission prior to any final approval to begin construction. The Plan shall include a cost-sharing plan. (2) A cost-sharing plan developed under para- graph (1) shall include a description of any di- rect cost reimbursements that the applicant agrees to provide to any State and local agen- cies with responsibility for security and safety— (A) at the LNG terminal; and (B) in proximity to vessels that serve the fa- cility. (June 21, 1938, ch. 556, § 3A, as added Pub. L. 109–58, title III, § 311(d), Aug. 8, 2005, 119 Stat. 687.) Editorial Notes REFERENCES IN TEXT The National Environmental Policy Act of 1969, re- ferred to in subsec. (a), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Wel- fare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables. § 717c. Rates and charges (a) Just and reasonable rates and charges All rates and charges made, demanded, or re- ceived by any natural-gas company for or in connection with the transportation or sale of natural gas subject to the jurisdiction of the Commission, and all rules and regulations af- fecting 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 de- clared to be unlawful. (b) Undue preferences and unreasonable rates and charges prohibited No natural-gas company shall, with respect to any transportation or sale of natural gas 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, serv- ice, facilities, or in any other respect, either as between localities or as between classes of serv- ice. (c) Filing of rates and charges with Commission; public inspection of schedules Under such rules and regulations as the Com- mission may prescribe, every natural-gas com- pany shall file with the Commission, within such time (not less than sixty days from June 21, 1938) and in such form as the Commission may designate, and shall keep open in conven- ient form and place for public inspection, sched- ules showing all rates and charges for any trans- portation or sale subject to the jurisdiction of the Commission, and the classifications, prac- tices, 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) Changes in rates and charges; notice to Com- mission Unless the Commission otherwise orders, no change shall be made by any natural-gas com- pany in any such rate, charge, classification, or service, or in any rule, regulation, or contract relating thereto, except after thirty days’ notice Page 1191 TITLE 15—COMMERCE AND TRADE § 717c–1 to the Commission and to the public. Such no- tice shall be given by filing with the Commis- sion 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 thirty 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) Authority of Commission to hold hearings concerning new schedule of rates Whenever any such new schedule is filed the Commission shall have authority, either upon complaint of any State, municipality, State commission, or gas distributing company, or upon its own initiative without complaint, at once, and if it so orders, without answer or for- mal pleading by the natural-gas company, 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 Commis- sion, upon filing with such schedules and deliv- ering to the natural-gas company affected there- by 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 pe- riod 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 effec- tive. If the proceeding has not been concluded and an order made at the expiration of the sus- pension period, on motion of the natural-gas company making the filing, the proposed change of rate, charge, classification, or service shall go into effect. Where increased rates or charges are thus made effective, the Commission may, by order, require the natural-gas company to fur- nish a bond, to be approved by the Commission, to refund any amounts ordered by the Commis- sion, to keep accurate accounts in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts were paid, and, upon completion of the hearing and decision, to order such natural-gas company to refund, with interest, the portion of such increased rates or charges by its decision found not justified. At any hearing involving a rate or charge sought to be increased, the bur- den of proof to show that the increased rate or charge is just and reasonable shall be upon the natural-gas company, and the Commission shall give to the hearing and decision of such ques- tions preference over other questions pending before it and decide the same as speedily as pos- sible. (f) Storage services (1) In exercising its authority under this chap- ter or the Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission may author- ize a natural gas company (or any person that will be a natural gas company on completion of any proposed construction) to provide storage and storage-related services at market-based rates for new storage capacity related to a spe- cific facility placed in service after August 8, 2005, notwithstanding the fact that the company is unable to demonstrate that the company lacks market power, if the Commission deter- mines that— (A) market-based rates are in the public in- terest and necessary to encourage the con- struction of the storage capacity in the area needing storage services; and (B) customers are adequately protected. (2) The Commission shall ensure that reason- able terms and conditions are in place to protect consumers. (3) If the Commission authorizes a natural gas company to charge market-based rates under this subsection, the Commission shall review pe- riodically whether the market-based rate is just, reasonable, and not unduly discriminatory or preferential. (June 21, 1938, ch. 556, § 4, 52 Stat. 822; Pub. L. 87–454, May 21, 1962, 76 Stat. 72; Pub. L. 109–58, title III, § 312, Aug. 8, 2005, 119 Stat. 688.) Editorial Notes REFERENCES IN TEXT The Natural Gas Policy Act of 1978, referred to in sub- sec. (f)(1), is Pub. L. 95–621, Nov. 9, 1978, 92 Stat. 3350, which is classified generally to chapter 60 (§ 3301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3301 of this title and Tables. AMENDMENTS 2005—Subsec. (f). Pub. L. 109–58 added subsec. (f). 1962—Subsec. (e). Pub. L. 87–454 inserted ‘‘or gas dis- tributing company’’ after ‘‘State commission’’, and struck out proviso which denied authority to the Com- mission to suspend the rate, charge, classification, or service for the sale of natural gas for resale for indus- trial use only. Statutory Notes and Related Subsidiaries ADVANCE RECOVERY OF EXPENSES INCURRED BY NAT- URAL GAS COMPANIES FOR NATURAL GAS RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROJECTS Pub. L. 102–104, title III, Aug. 17, 1991, 105 Stat. 531, authorized Federal Energy Regulatory Commission, pursuant to this section, to allow recovery, in advance, of expenses by natural-gas companies for research, de- velopment and demonstration activities by Gas Re- search Institute for projects on use of natural gas in motor vehicles and on use of natural gas to control emissions from combustion of other fuels, subject to Commission finding that benefits, including environ- mental benefits, to both existing and future ratepayers resulting from such activities exceed all direct costs to both existing and future ratepayers, prior to repeal by Pub. L. 102–486, title IV, § 408(c), Oct. 24, 1992, 106 Stat. 2882. § 717c–1. Prohibition on market manipulation It shall be unlawful for any entity, directly or indirectly, to use or employ, in connection with the purchase or sale of natural gas or the pur- chase or sale of transportation services subject to the jurisdiction of the Commission, any ma- nipulative or deceptive device or contrivance (as