---
kind: "section"
citation: "42 U.S.C. § 16462"
title: "42"
title_heading: "The Public Health and Welfare"
number: "16462"
heading: "Service allocation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/16462"
units:
  - "Chapter 149 — National Energy Policy and Programs"
  - "Subchapter XII — Electricity"
  - "Part D"
---

# §16462. Service allocation

- (a) **Definition of public utility—** In this section, the term “[public utility](/usc/42/16451.md?p=13)” has the meaning given the term in [section 824(e) of title 16](/usc/16/824.md?p=e).
- (b) **FERC review—** In the case of non-power goods or administrative or management services provided by an [associate company](/usc/42/16451.md?p=2) organized specifically for the purpose of providing such goods or services to any [public utility](/usc/42/16451.md?p=13) in the same [holding company system](/usc/42/16451.md?p=9), at the election of the system or a [State commission](/usc/42/16451.md?p=15) having jurisdiction over the [public utility](/usc/42/16451.md?p=13), the [Commission](/usc/42/16451.md?p=3), after the effective date of this part, shall review and authorize the [allocation](/usc/42/2021b.md?p=2) of the costs for such goods or services to the extent relevant to that [associate company](/usc/42/16451.md?p=2).
- (c) **Effect on Federal and State law—** Nothing in this section shall affect the authority of the [Commission](/usc/42/16451.md?p=3) or a [State commission](/usc/42/16451.md?p=15) under other applicable law.
- (d) **Rules—** Not later than 4 months after August 8, 2005, the [Commission](/usc/42/16451.md?p=3) shall issue rules (which rules shall be effective no earlier than the effective date of this part) to exempt from the requirements of this section any [company](/usc/42/16451.md?p=4) in a [holding company system](/usc/42/16451.md?p=9) whose [public utility](/usc/42/16451.md?p=13) operations are confined substantially to a single [State](/usc/42/15951.md?p=b-2) and any other class of transactions that the [Commission](/usc/42/16451.md?p=3) finds is not relevant to the [jurisdictional rates](/usc/42/16451.md?p=10) of a [public utility](/usc/42/16451.md?p=13).

## Source credit

(Pub. L. 109–58, title XII, § 1275, Aug. 8, 2005, 119 Stat. 977.)

## Notes

### Editorial Notes

### References in Text

For the effective date of this part, referred to in subsecs. (b) and (d), see Effective Date note set out under section 16451 of this title.