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

U.S Code last checked for updates: Nov 22, 2024

§ 824d.

Rates and charges; schedules; suspension of new rates; automatic adjustment clauses

(a)

Just and reasonable rates

(b)

Preference or advantage unlawful

(c)

Schedules

(d)

Notice required for rate changes

(e)

Suspension of new rates; hearings; five-month period

(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.

(g)

Inaction of Commissioners

(1)

In general

With respect to a change described in subsection (d), if the Commission permits the 60-day period established therein to expire without issuing an order accepting or denying the change because the Commissioners are divided two against two as to the lawfulness of the change, as a result of vacancy, incapacity, or recusal on the Commission, or if the Commission lacks a quorum—

(A)

the failure to issue an order accepting or denying the change by the Commission shall be considered to be an order issued by the Commission accepting the change for purposes of section 825l(a) of this title; and

(B)

each Commissioner shall add to the record of the Commission a written statement explaining the views of the Commissioner with respect to the change.

(2)

Appeal

(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; Pub. L. 115–270, title III, § 3006, Oct. 23, 2018, 132 Stat. 3868.)

cite as: 16 USC 824d