[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR2.22]

[Page 27]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 2_GENERAL POLICY AND INTERPRETATIONS--Table of Contents
 
Sec. 2.22  Pricing policy for transmission services provided under 
the Federal Power Act.

    (a) The Commission has adopted a Policy Statement on its pricing 
policy for transmission services provided under the Federal Power Act. 
That Policy Statement can be found at 69 FERC 61,086. The Policy 
Statement constitutes a complete description of the Commission's 
guidelines for assessing the pricing proposals. Paragraph (b) of this 
section is only a brief summary of the Policy Statement.
    (b) The Commission endorses transmission pricing flexibility, 
consistent with the principles and procedures set forth in the Policy 
Statement. It will entertain transmission pricing proposals that do not 
conform to the traditional revenue requirement as well as proposals that 
conform to the traditional revenue requirement. The Commission will 
evaluate ``conforming'' transmission pricing proposals using the 
following five principles, described more fully in the Policy Statement.
    (1) Transmission pricing must meet the traditional revenue 
requirement.
    (2) Transmission pricing must reflect comparability.
    (3) Transmission pricing should promote economic efficiency.
    (4) Transmission pricing should promote fairness.
    (5) Transmission pricing should be practical.
    (c) Under these principles, the Commission will also evaluate ``non-
conforming'' proposals which do not meet the traditional revenue 
requirement, and will require such proposals to conform to the 
comparability principle. Non-conforming proposals must include an open 
access comparability tariff and will not be allowed to go into effect 
prior to review and approval by the Commission under procedures 
described in the Policy Statement.

[59 FR 55039, Nov. 3, 1994]