16 U.S.C. § 824s — Transmission infrastructure investment

Page 1435 TITLE 16—CONSERVATION § 824s–1 § 824s. Transmission infrastructure investment (a) Rulemaking requirement Not later than 1 year after August 8, 2005, the Commission shall establish, by rule, incentive- based (including performance-based) rate treat- ments for the transmission of electric energy in interstate commerce by public utilities for the purpose of benefitting consumers by ensuring re- liability and reducing the cost of delivered power by reducing transmission congestion. (b) Contents The rule shall— (1) promote reliable and economically effi- cient transmission and generation of elec- tricity by promoting capital investment in the enlargement, improvement, maintenance, and operation of all facilities for the transmission of electric energy in interstate commerce, re- gardless of the ownership of the facilities; (2) provide a return on equity that attracts new investment in transmission facilities (in- cluding related transmission technologies); (3) encourage deployment of transmission technologies and other measures to increase the capacity and efficiency of existing trans- mission facilities and improve the operation of the facilities; and (4) allow recovery of— (A) all prudently incurred costs necessary to comply with mandatory reliability stand- ards issued pursuant to section 824o of this title; and (B) all prudently incurred costs related to transmission infrastructure development pursuant to section 824p of this title. (c) Incentives In the rule issued under this section, the Com- mission shall, to the extent within its jurisdic- tion, provide for incentives to each transmitting utility or electric utility that joins a Trans- mission Organization. The Commission shall en- sure that any costs recoverable pursuant to this subsection may be recovered by such utility through the transmission rates charged by such utility or through the transmission rates charged by the Transmission Organization that provides transmission service to such utility. (d) Just and reasonable rates All rates approved under the rules adopted pursuant to this section, including any revisions to the rules, are subject to the requirements of sections 824d and 824e of this title that all rates, charges, terms, and conditions be just and rea- sonable and not unduly discriminatory or pref- erential. (June 10, 1920, ch. 285, pt. II, § 219, as added Pub. L. 109–58, title XII, § 1241, Aug. 8, 2005, 119 Stat. 961.) § 824s–1. Incentives for cybersecurity invest- ments (a) Definitions In this section: (1) Advanced cybersecurity technology The term ‘‘advanced cybersecurity tech- nology’’ means any technology, operational capability, or service, including computer hardware, software, or a related asset, that en- hances the security posture of public utilities through improvements in the ability to pro- tect against, detect, respond to, or recover from a cybersecurity threat (as defined in sec- tion 650 of title 6). (2) Advanced cybersecurity technology infor- mation The term ‘‘advanced cybersecurity tech- nology information’’ means information relat- ing to advanced cybersecurity technology or proposed advanced cybersecurity technology that is generated by or provided to the Com- mission or another Federal agency. (b) Study Not later than 180 days after November 15, 2021, the Commission, in consultation with the Secretary of Energy, the North American Elec- tric Reliability Corporation, the Electricity Subsector Coordinating Council, and the Na- tional Association of Regulatory Utility Com- missioners, shall conduct a study to identify in- centive-based, including performance-based, rate treatments for the transmission and sale of electric energy subject to the jurisdiction of the Commission that could be used to encourage— (1) investment by public utilities in ad- vanced cybersecurity technology; and (2) participation by public utilities in cybersecurity threat information sharing pro- grams. (c) Incentive-based rate treatment Not later than 1 year after the completion of the study under subsection (b), the Commission shall establish, by rule, incentive-based, includ- ing performance-based, rate treatments for the transmission of electric energy in interstate commerce and the sale of electric energy at wholesale in interstate commerce by public util- ities for the purpose of benefitting consumers by encouraging— (1) investments by public utilities in ad- vanced cybersecurity technology; and (2) participation by public utilities in cybersecurity threat information sharing pro- grams. (d) Factors for consideration In issuing a rule pursuant to this section, the Commission may provide additional incentives beyond those identified in subsection (c) in any case in which the Commission determines that an investment in advanced cybersecurity tech- nology or information sharing program costs will reduce cybersecurity risks to— (1) defense critical electric infrastructure (as defined in section 824o–1(a) of this title) and other facilities subject to the jurisdiction of the Commission that are critical to public safety, national defense, or homeland security, as determined by the Commission in consulta- tion with— (A) the Secretary of Energy; (B) the Secretary of Homeland Security; and (C) other appropriate Federal agencies; and (2) facilities of small or medium-sized public utilities with limited cybersecurity resources, as determined by the Commission.