What does Preamble of Fair Allocation of Interstate Rates Act do?

This bill aims to prohibit the allocation of costs for a specific transmission facility to consumers in a state if the state's public officials did not explicitly consent to the facility. The bill is formally titled '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.'

What does SHORT TITLE. of Fair Allocation of Interstate Rates Act do?

This Act is formally titled the 'Fair Allocation of Interstate Rates Act'.

What does RATE AND CHARGES. of Fair Allocation of Interstate Rates Act do?

This section amends Section 205 of the Federal Power Act to establish a prohibition on allocating costs for covered transmission facilities to consumers outside of the state whose policy drove the facility's construction. An exception to this prohibition exists if the consumer's state, or a designated public official, expressly consents to the cost allocation. The law establishes presumptions regarding the benefits of covered transmission facilities, assuming they accrue solely to cost causers and that only consumers in the state implementing the covered policy are cost causers. The Commission is required to issue rules and regulations to implement this subsection within six months of enactment. The section defines 'covered policy' as a policy of a State, including policies of local political entities, and 'covered transmission facility' as a facility used for interstate electric energy transmission planned, constructed, or operated to implement a covered policy.

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Fair Allocation of Interstate Rates Act

Last updated: 12/1/2025 · Introduced: 12/1/2025

Author: Julie Fedorchak (R-ND)

TL;DR (AI)

This bill prohibits allocating costs for interstate electric transmission facilities to consumers in a state unless that state's public officials explicitly consent to the cost allocation.
The bill defines 'covered transmission facilities' as those built to implement state policies and establishes a presumption that benefits from these facilities accrue solely to consumers within the state enacting the policy.
The Federal Energy Regulatory Commission must create rules to implement these changes within six months of the bill's enactment.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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