U.S. Code » Title 16 » Chapter CHAPTER 12— FEDERAL REGULATION AND DEVELOPMENT OF POWER › Subchapter SUBCHAPTER II— REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE COMMERCE

16 U.S.C. § 824s

Transmission infrastructure investment

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(a) Rulemaking requirement

Not later than 1 year after August 8, 2005, the Commission shall establish, by rule, incentive-based (including performance-based) rate treatments for the transmission of electric energy in interstate commerce by public utilities for the purpose of benefitting consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.

(b) ContentsThe rule shall—(1) promote reliable and economically efficient transmission and generation of electricity by promoting capital investment in the enlargement, improvement, maintenance, and operation of all facilities for the transmission of electric energy in interstate commerce, regardless of the ownership of the facilities;(2) provide a return on equity that attracts new investment in transmission facilities (including related transmission technologies);(3) encourage deployment of transmission technologies and other measures to increase the capacity and efficiency of existing transmission facilities and improve the operation of the facilities; and(4) allow recovery of—(A) all prudently incurred costs necessary to comply with mandatory reliability standards issued pursuant to section 824o of this title; and(B) all prudently incurred costs related to transmission infrastructure development pursuant to section 824p of this title.(c) Incentives

In the rule issued under this section, the Commission shall, to the extent within its jurisdiction, provide for incentives to each transmitting utility or electric utility that joins a Transmission Organization. The Commission shall ensure that any costs recoverable pursuant to this subsection may be recovered by such utility through the transmission rates charged by such utility or through the transmission rates charged by the Transmission Organization that provides transmission service to such utility.

(d) Just and reasonable rates

All rates approved under the rules adopted pursuant to this section, including any revisions to the rules, are subject to the requirements of sections 824d and 824e of this title that all rates, charges, terms, and conditions be just and reasonable and not unduly discriminatory or preferential.

(June 10, 1920, ch. 285, pt. II, § 219, as added Pub. L. 109–58, title XII, § 1241, Aug. 8, 2005, 119 Stat. 961.)
Notes of Decisions
Cited in 16 cases (6 in the last 5 years), 2006–2025 · leading case: San Diego Gas & Elec. Co. v. Fed. Energy Regulatory Comm'n, 913 F.3d 127 (D.C. Cir. 2019).
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San Diego Gas & Elec. Co. v. Fed. Energy Regulatory Comm'n, 913 F.3d 127 (D.C. Cir. 2019). · cites it 5× “961 (2005) (codified as amended at 16 U.S.C. § 824s ). Congress's express purpose in calling for such a rule was to "benefit[ ] consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.”
Maine v. Fed. Energy Regulatory Comm'n, 854 F.3d 9 (D.C. Cir. 2017). · cites it 2× “Citing section 219 of the FPA, 16 U.S.C. § 824s, FERC established “incentive-based rate treatments to further encourage the construction of transmission facilities and replacement of aging transmission infrastructure.”
California Pub. Utils. Comm'n v. Fed. Energy Regulatory Comm'n, 879 F.3d 966 (9th Cir. 2018). · cites it 2× “16 U.S.C. § 824s(a). As relevant here, section 219(c) required FERC to provide incentives to induce utilities to join regional transmission organizations.”
Int'l Transmission Co. v. FERC, 988 F.3d 471 (D.C. Cir. 2021). · cites it 3× “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress’s stated purpose was to “benefit[] consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.”
South Carolina Pub. Serv. Auth. v. Fed. Energy Regulatory Comm'n, 762 F.3d 41 (D.C. Cir. 2014). “§ 1241 (codified at FPA § 219, 16 U.S.C. § 824s); and to require each “unregulated transmitting utility” to provide transmission services on terms and conditions “comparable to those under which [it] provides transmission services to itself and that are not unduly discriminatory…”
Sacramento Mun. Util. Dist. v. Fed. Energy Regulatory Comm'n, 616 F.3d 520 (D.C. Cir. 2010). “, Order 890 ¶ 79 (noting that the Energy Policy Act of 2005 “placed special emphasis on the development of transmission infrastructure”) (citing 16 U.S.C. § 824s). However, contrary to Imperial’s claim that FERC abdicated this responsibility, the Commission carefully analyzed…”
Indus. Energy Consumers of Am. v. FERC, 125 F.4th 1156 (D.C. Cir. 2025). · cites it 2× “” 16 U.S.C. § 824s(a). In 2006 the Commission adopted Order No.”
S. California Edison Co. v. Fed. Energy Regulatory Comm'n, 717 F.3d 177 (D.C. Cir. 2013). “See 16 U.S.C. § 824s; Promoting Transmission Investment Through Pricing Reform, Order No.”
Connecticut Dep't of Pub. Util. Control v. Fed. Energy Regulatory Comm'n, 593 F.3d 30 (D.C. Cir. 2010). “594 , 961-62 (codified at 16 U.S.C. § 824s). See Order on Rehearing, 122 FERC ¶ 61,265 , at P 63; see also Opinion No.”
Off. of the Ohio Consumers' Couns. v. FERC (6th Cir. 2025). · cites it 13× “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress did not mandate RTO membership.”
Maine Pub. Utils. Comm'n v. Fed. Energy Regulatory Comm'n, 454 F.3d 278 (D.C. Cir. 2006). · cites it 2× “594 (2005) (codified at 16 U.S.C.A. § 824s(c) (West Supp. 2006)).”
Pac. Gas & Elec. Co. v. Fed. Energy Regulatory Comm'n (9th Cir. 2025). · cites it 8× “See 16 U.S.C. § 824s(a). Section 219(b) identifies the promotion of capital investment and new technology as a target of the incentives, and Section 219(c) identifies RTO membership as another target.”
Show all 16 citing cases →
— 16 U.S.C. § 824s(a) — 7 cases
San Diego Gas & Elec. Co. v. Fed. Energy Regulatory Comm'n, 913 F.3d 127 (D.C. Cir. 2019). “961 (2005) (codified as amended at 16 U.S.C. § 824s ). Congress's express purpose in calling for such a rule was to "benefit[ ] consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.”
California Pub. Utils. Comm'n v. Fed. Energy Regulatory Comm'n, 879 F.3d 966 (9th Cir. 2018). “16 U.S.C. § 824s(a). As relevant here, section 219(c) required FERC to provide incentives to induce utilities to join regional transmission organizations.”
Int'l Transmission Co. v. FERC, 988 F.3d 471 (D.C. Cir. 2021). “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress’s stated purpose was to “benefit[] consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.”
Indus. Energy Consumers of Am. v. FERC, 125 F.4th 1156 (D.C. Cir. 2025). “” 16 U.S.C. § 824s(a). In 2006 the Commission adopted Order No.”
Off. of the Ohio Consumers' Couns. v. FERC (6th Cir. 2025). “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress did not mandate RTO membership.”
— 16 U.S.C. § 824s(b) — 2 cases
Pac. Gas & Elec. Co. v. Fed. Energy Regulatory Comm'n (9th Cir. 2025). “See 16 U.S.C. § 824s(a). Section 219(b) identifies the promotion of capital investment and new technology as a target of the incentives, and Section 219(c) identifies RTO membership as another target.”
Off. of the Ohio Consumers' Couns. v. FERC (6th Cir. 2025). “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress did not mandate RTO membership.”
— 16 U.S.C. § 824s(b)(1) — 1 case
Off. of the Ohio Consumers' Couns. v. FERC (6th Cir. 2025). “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress did not mandate RTO membership.”
— 16 U.S.C. § 824s(b)(2) — 1 case
Int'l Transmission Co. v. FERC, 988 F.3d 471 (D.C. Cir. 2021). “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress’s stated purpose was to “benefit[] consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion.”
— 16 U.S.C. § 824s(b)(4)(A) — 1 case
Cogentrix Energy Power Mgmt., LLC v. FERC, 24 F.4th 677 (D.C. Cir. 2022).
— 16 U.S.C. § 824s(b)(l) — 1 case
North Carolina Utils. Comm'n v. Fed. Energy Regulatory Comm'n, 741 F.3d 439 (4th Cir. 2014).
— 16 U.S.C. § 824s(c) — 6 cases
California Pub. Utils. Comm'n v. Fed. Energy Regulatory Comm'n, 879 F.3d 966 (9th Cir. 2018). “16 U.S.C. § 824s(a). As relevant here, section 219(c) required FERC to provide incentives to induce utilities to join regional transmission organizations.”
Maine Pub. Utils. Comm'n v. Fed. Energy Regulatory Comm'n, 454 F.3d 278 (D.C. Cir. 2006). “594 (2005) (codified at 16 U.S.C.A. § 824s(c) (West Supp. 2006)).”
Off. of the Ohio Consumers' Couns. v. FERC (6th Cir. 2025). “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress did not mandate RTO membership.”
Pac. Gas & Elec. Co. v. Fed. Energy Regulatory Comm'n (9th Cir. 2025). “See 16 U.S.C. § 824s(a). Section 219(b) identifies the promotion of capital investment and new technology as a target of the incentives, and Section 219(c) identifies RTO membership as another target.”
Cpuc v. Ferc (9th Cir. 2018).
— 16 U.S.C. § 824s(d) — 4 cases
Maine v. Fed. Energy Regulatory Comm'n, 854 F.3d 9 (D.C. Cir. 2017). “Citing section 219 of the FPA, 16 U.S.C. § 824s, FERC established “incentive-based rate treatments to further encourage the construction of transmission facilities and replacement of aging transmission infrastructure.”
Indus. Energy Consumers of Am. v. FERC, 125 F.4th 1156 (D.C. Cir. 2025). “” 16 U.S.C. § 824s(a). In 2006 the Commission adopted Order No.”
Pac. Gas & Elec. Co. v. Fed. Energy Regulatory Comm'n (9th Cir. 2025). “See 16 U.S.C. § 824s(a). Section 219(b) identifies the promotion of capital investment and new technology as a target of the incentives, and Section 219(c) identifies RTO membership as another target.”
Off. of the Ohio Consumers' Couns. v. FERC (6th Cir. 2025). “594 , 961 (codified as amended at 16 U.S.C. § 824s). Congress did not mandate RTO membership.”
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