S.3287

The Fair Allocation of Interstate Rates Act prohibits cost allocation for certain electric transmission facilities to consumers in states that did.

The Fair Allocation of Interstate Rates Act amends the Federal Power Act to restrict how transmission providers can allocate costs for certain electric transmission facilities. Specifically, it prohibits these providers from allocating costs to consumers in states that did not expressly consent to the facility. A facility is considered covered if it is used for interstate transmission and is based on a state policy. The act presumes that benefits of such facilities accrue solely to the cost causers, who are typically residents of the state implementing the covered policy.