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Fair Allocation of Interstate Rates Act
To prohibit the allocation of costs for a certain transmission facility to consumers of a State the public officials of which did not expressly consent to such transmission facility, and for other purposes.
Summary
This bill would amend the Federal Power Act to prohibit transmission providers from allocating costs for interstate transmission facilities to consumers in states that did not expressly consent to the facility, if the facility was built to implement a state's policy. The bill presumes that the benefits of such a facility accrue only to consumers in the state whose policy prompted the construction. An exception would allow cost allocation to other states only if those states expressly consent. The Federal Energy Regulatory Commission would be required to issue rules to implement this provision within six months.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
7 cosponsors
Actions (2)
- Dec 1, 2025 Introduced in House
- Dec 1, 2025 Referred to the House Committee on Energy and Commerce. · house
Similar bills (6)
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Text versions (1)
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Committee action
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Meetings where this bill was on the agenda
Full text
IN THE HOUSE OF REPRESENTATIVES
December 1, 2025
Ms. Fedorchak (for herself and Mr. Weber of Texas) introduced the following bill; which was referred to the Committee on Energy and Commerce
A BILL
To prohibit the allocation of costs for a certain transmission facility to consumers of a State the public officials of which did not expressly consent to such transmission facility, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Fair Allocation of Interstate Rates Act”.
SEC. 2. RATE AND CHARGES.
Section 205 of the Federal Power Act (16 U.S.C. 824d) is amended by adding at the end the following:
“(h) Prohibition.—
“(1) In general.—Except as provided in paragraph (2), no transmission provider providing electric service to consumers in two or more States may allocate costs for a covered transmission facility to any consumer of such transmission provider if—
“(A) the basis for construction or implementation of such covered transmission facility is, in whole or in part, to implement a covered policy of a State; and
“(B) such consumer is not a resident of the State the covered policy of which is the basis for constructing or implementing such covered transmission facility.
“(2) Exception.—A transmission provider providing electric service to consumers in two or more States may allocate costs for a covered transmission facility to a consumer described in paragraph (1)(B) if the State of such consumer, or a designated public official of such State, expressly consents to such allocation of costs.
“(3) Presumptions.—It shall be presumed that—
“(A) the benefits of a covered transmission facility accrue solely to the cost causers of such covered transmission facility;
“(B) only a consumer that resides in a State that implemented a covered policy that is, in whole or in part, the basis for constructing or implementing such covered transmission facility is a cost causer for purposes of subparagraph (A); and
“(C) a consumer that does not reside in the State described in subparagraph (B) is not a cost causer for purposes of subparagraph (A).
“(4) Implementation.—Not later than six months after the date of enactment of this subsection, the Commission shall issue such rules and regulations as may be necessary to implement this subsection.
“(5) Definitions.—In this subsection:
“(A) Covered policy.—The term ‘covered policy’ means a policy of a State, including policies of the local political entities of such State.
“(B) Covered transmission facility.—The term ‘covered transmission facility’ means any facility, line, equipment, or system used for the transmission of electric energy in interstate commerce that is planned, constructed, or operated in whole or in part to implement a covered policy.”. <all>
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