Fair Allocation of Interstate Rates Act

The "Fair Allocation of Interstate Rates Act" proposes to amend Section 205 of the Federal Power Act, aiming to prevent the unfair distribution of costs for certain interstate electric transmission facilities. It prohibits transmission providers from allocating costs for a covered transmission facility to consumers in a state if that facility is built to implement a policy of a different state, and the consumer's state has not expressly consented to such allocation. A covered transmission facility is defined as any electric transmission infrastructure planned or operated, in whole or in part, to implement a state's policy. The bill establishes a presumption that the benefits of such facilities accrue solely to the "cost causers," which are identified as consumers residing in the state whose policy necessitated the facility's construction. The Federal Energy Regulatory Commission (FERC) would be required to issue implementing rules within six months of the bill's enactment.