Fair Allocation of Interstate Rates Act
Sponsors
Legislative Progress
In CommitteeMs. Fedorchak (for herself and Mr. Weber of Texas) introduced …
Summary
What This Bill Does
The Fair Allocation of Interstate Rates Act prevents electric utilities from charging consumers in one state for transmission infrastructure built to support another state's clean energy policies. It establishes a "cost causation" principle where only residents of states that adopt policies requiring new transmission pay for that infrastructure.
Who Benefits and How
- Electricity consumers in states without aggressive renewable energy mandates benefit by being protected from higher rates caused by other states' energy transition policies
- Fossil fuel power generators in states not pursuing clean energy transitions may see less competitive pressure as renewable development slows
- States skeptical of clean energy mandates gain leverage to avoid subsidizing other states' energy transitions
Who Bears the Burden and How
- Electricity consumers in states with renewable portfolio standards or clean energy goals face higher electricity costs, as they can no longer spread transmission costs regionally
- Renewable energy developers (wind and solar) face higher barriers to entry, as they must finance transmission costs within a single state instead of spreading them across regions
- Transmission utilities face new compliance burdens tracking which infrastructure serves which state policies
- Regional grid operators (RTOs/ISOs) face increased complexity in cost allocation
Key Provisions
- Prohibits transmission providers from allocating costs for "covered transmission facilities" to consumers in states that did not consent
- Creates a presumption that benefits from policy-driven transmission accrue only to the state that adopted the policy
- Allows exceptions only if the non-participating state expressly consents to cost allocation
- Requires FERC to issue implementing regulations within 6 months of enactment
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Prohibits electric transmission providers from allocating costs for transmission facilities built to implement state policies to consumers in other states that did not consent to those policies.
Policy Domains
Legislative Strategy
"Establish a cost-causation principle that prevents states with renewable energy mandates or other transmission-requiring policies from shifting infrastructure costs to consumers in other states"
Likely Beneficiaries
- Electricity consumers in states without aggressive renewable energy or clean energy mandates
- Ratepayers in states that have not adopted policies requiring new transmission infrastructure
- States seeking to avoid cross-subsidizing other states energy transitions
Likely Burden Bearers
- Electricity consumers in states with renewable portfolio standards or clean energy mandates
- Renewable energy developers who rely on multi-state transmission cost allocation
- Transmission developers building facilities to connect renewable energy sources
- States with aggressive clean energy policies (who cannot spread costs regionally)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_commission"
- → Federal Energy Regulatory Commission (FERC)
- "transmission_provider"
- → Electric utilities providing transmission service across state lines
Key Definitions
Terms defined in this bill
A policy of a State, including policies of the local political entities of such State
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
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology