---
kind: "section"
citation: "16 U.S.C. § 824j–1"
title: "16"
title_heading: "Conservation"
number: "824j–1"
heading: "Open access by unregulated transmitting utilities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/824j-1"
units:
  - "Chapter 12 — Federal Regulation and Development of Power"
  - "Subchapter II — Regulation of Electric Utility Companies Engaged in Interstate Commerce"
---

# §824j–1. Open access by unregulated transmitting utilities

- (a) **Definition of unregulated transmitting utility—** In this section, the term “unregulated [transmitting utility](/usc/16/796.md?p=23)” means an entity that—
  - (1) owns or operates facilities used for the transmission of electric energy in interstate commerce; and
  - (2) is an entity described in [section 824(f) of this title](/usc/16/824.md?p=f).
- (b) **Transmission operation services—** Subject to [section 824k(h) of this title](/usc/16/824k.md?p=h), the [Commission](/usc/16/544.md?p=c) may, by rule or order, require an unregulated [transmitting utility](/usc/16/796.md?p=23) to provide transmission services—
  - (1) at rates that are comparable to those that the unregulated [transmitting utility](/usc/16/796.md?p=23) charges itself; and
  - (2) on terms and conditions (not relating to rates) that are comparable to those under which the unregulated [transmitting utility](/usc/16/796.md?p=23) provides transmission services to itself and that are not unduly discriminatory or preferential.
- (c) **Exemption—** The [Commission](/usc/16/544.md?p=c) shall exempt from any rule or order under this section any unregulated [transmitting utility](/usc/16/796.md?p=23) that—
  - (1) sells not more than 4,000,000 megawatt hours of electricity per year;
  - (2) does not own or operate any transmission facilities that are necessary for operating an interconnected transmission system (or any portion of the system); or
  - (3) meets other criteria the [Commission](/usc/16/544.md?p=c) determines to be in the public interest.
- (d) **Local distribution facilities—** The requirements of [subsection (b)](#b) shall not apply to facilities used in local distribution.
- (e) **Exemption termination—** If the [Commission](/usc/16/544.md?p=c), after an evidentiary hearing held on a complaint and after giving consideration to reliability standards established under [section 824o](/usc/16/824o.md) of this title, finds on the basis of a preponderance of the evidence that any exemption granted pursuant to [subsection (c)](#c) unreasonably impairs the continued reliability of an interconnected transmission system, the [Commission](/usc/16/544.md?p=c) shall revoke the exemption granted to the [transmitting utility](/usc/16/796.md?p=23).
- (f) **Application to unregulated transmitting utilities—** The rate changing procedures applicable to public utilities under subsections (c) and (d) of [section 824d of this title](/usc/16/824d.md) are applicable to unregulated [transmitting utilities](/usc/16/796.md?p=23) for purposes of this section.
- (g) **Remand—** In exercising authority under [subsection (b)(1)](#b-1), the [Commission](/usc/16/544.md?p=c) may remand transmission rates to an unregulated [transmitting utility](/usc/16/796.md?p=23) for review and revision if necessary to meet the requirements of [subsection (b)](#b).
- (h) **Other requests—** The provision of transmission services under [subsection (b)](#b) does not preclude a request for transmission services under [section 824j of this title](/usc/16/824j.md).
- (i) **Limitation—** The [Commission](/usc/16/544.md?p=c) may not require a [State](/usc/16/796.md?p=6) or [municipality](/usc/16/796.md?p=7) to [take](/usc/16/3102.md?p=18) action under this section that would violate a private activity bond rule for purposes of [section 141 of title 26](/usc/26/141.md).
- (j) **Transfer of control of transmitting facilities—** Nothing in this section authorizes the [Commission](/usc/16/544.md?p=c) to require an unregulated [transmitting utility](/usc/16/796.md?p=23) to transfer control or operational control of its transmitting facilities to a [Transmission Organization](/usc/16/796.md?p=29) that is designated to provide nondiscriminatory transmission access.

## Source credit

(June 10, 1920, ch. 285, pt. II, § 211A, as added Pub. L. 109–58, title XII, § 1231, Aug. 8, 2005, 119 Stat. 955.)