Page:United States Statutes at Large Volume 119.djvu/970

 119 STAT. 952 42 USC 16421.

PUBLIC LAW 109–58—AUG. 8, 2005

SEC. 1222. THIRD-PARTY FINANCE.

(a) EXISTING FACILITIES.—The Secretary, acting through the Administrator of the Western Area Power Administration (hereinafter in this section referred to as ‘‘WAPA’’), or through the Administrator of the Southwestern Power Administration (hereinafter in this section referred to as ‘‘SWPA’’), or both, may design, develop, construct, operate, maintain, or own, or participate with other entities in designing, developing, constructing, operating, maintaining, or owning, an electric power transmission facility and related facilities (‘‘Project’’) needed to upgrade existing transmission facilities owned by SWPA or WAPA if the Secretary, in consultation with the applicable Administrator, determines that the proposed Project— (1)(A) is located in a national interest electric transmission corridor designated under section 216(a) of the Federal Power Act and will reduce congestion of electric transmission in interstate commerce; or (B) is necessary to accommodate an actual or projected increase in demand for electric transmission capacity; (2) is consistent with— (A) transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act), if any, or approved regional reliability organization; and (B) efficient and reliable operation of the transmission grid; and (3) would be operated in conformance with prudent utility practice. (b) NEW FACILITIES.—The Secretary, acting through WAPA or SWPA, or both, may design, develop, construct, operate, maintain, or own, or participate with other entities in designing, developing, constructing, operating, maintaining, or owning, a new electric power transmission facility and related facilities (‘‘Project’’) located within any State in which WAPA or SWPA operates if the Secretary, in consultation with the applicable Administrator, determines that the proposed Project— (1)(A) is located in an area designated under section 216(a) of the Federal Power Act and will reduce congestion of electric transmission in interstate commerce; or (B) is necessary to accommodate an actual or projected increase in demand for electric transmission capacity; (2) is consistent with— (A) transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act) if any, or approved regional reliability organization; and (B) efficient and reliable operation of the transmission grid; (3) will be operated in conformance with prudent utility practice; (4) will be operated by, or in conformance with the rules of, the appropriate (A) Transmission Organization, if any, or (B) if such an organization does not exist, regional reliability organization; and

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