Sec. 104. Allocation of costs of electricity interconnection and network upgrades
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Part II of the Federal Power Act ( 16 U.S.C. 824 et seq. ) is further amended by adding at the end the following: Not later than 18 months after the date of enactment of this section, the Commission shall issue regulations, under section 206, that prohibit the use of exclusive or disproportionate participant funding in allocating the costs of a network upgrade. In prohibiting the use of exclusive or disproportionate participant funding under the regulations issued under subsection (a), the Commission shall, except as provided in subsection (c), require that each transmitting utility— shall not allocate the costs of a network upgrade solely or disproportionately to the requesting interconnection customer; and shall allocate the costs of a network upgrade in a manner that is roughly commensurate with reasonably anticipated transmission benefits.
A transmitting utility may require an interconnection customer to pay for the costs to construct or modify any generator tie lines that will be used to transmit power from the interconnection customer’s generating facility or energy storage project, as applicable, to the transmission facility or the transmission system. An interconnection customer may pay upfront some or all of the costs of a network upgrade at the transmission facility or transmission system to which the interconnection customer plans to interconnect its generating facility or energy storage facility in accordance with subparagraph (B).
Any interconnection customer that pays costs under subparagraph
(A)shall be refunded, in accordance with clause (ii), the amount of such costs that would otherwise be allocated to other parties pursuant to the Commission’s regulations issued under this section. The refund of costs under clause
(i)shall be complete not later than the date that is 10 years after the date on which the network upgrade is complete. A transmitting utility may require an interconnection customer to exclusively pay for the costs of a network upgrade if the transmission benefits of the network upgrade will only be received by the interconnection customer. The Commission shall require transmitting utilities to comply with the regulations issued under subsection
(a)not later than 180 days after such regulations have been finalized. .
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Sec. 104
Allocation of costs of electricity interconnection and network upgrades
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