Page:United States Statutes at Large Volume 119.djvu/979

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 961

‘‘(1) firm transmission rights described in subsection (a); or ‘‘(2) firm transmission rights obtained by exercising contract or tariff rights associated with the firm transmission rights described in subsection (a).’’. SEC. 1236. SENSE OF CONGRESS REGARDING LOCATIONAL INSTALLED CAPACITY MECHANISM.

(a) FINDINGS.—Congress finds that— (1) in regard to a proposal to develop and implement a specific type of locational installed capacity mechanism in New England pending before the Federal Energy Regulatory Commission; and (2) the Governors of the States have objected to the proposed mechanism, arguing that the mechanism— (A) would not provide adequate assurance that necessary electric generation capacity or reliability will be provided; and (B) would impose a high cost on consumers and have a significant negative economic impact. (b) SENSE OF CONGRESS.—Congress— (1) notes the concerns of the New England States to the proposed mechanism; and (2) declares that it is the sense of Congress that the Federal Energy Regulatory Commission should carefully consider the States’ objections.

Subtitle D—Transmission Rate Reform SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding at the end the following: ‘‘SEC. 219. TRANSMISSION INFRASTRUCTURE INVESTMENT.

‘‘(a) RULEMAKING REQUIREMENT.—Not later than 1 year after the date of enactment of this section, the Commission shall establish, by rule, incentive-based (including performance-based) rate treatments for the transmission of electric energy in interstate commerce by public utilities for the purpose of benefitting consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion. ‘‘(b) CONTENTS.—The rule shall— ‘‘(1) promote reliable and economically efficient transmission and generation of electricity by promoting capital investment in the enlargement, improvement, maintenance, and operation of all facilities for the transmission of electric energy in interstate commerce, regardless of the ownership of the facilities; ‘‘(2) provide a return on equity that attracts new investment in transmission facilities (including related transmission technologies); ‘‘(3) encourage deployment of transmission technologies and other measures to increase the capacity and efficiency of existing transmission facilities and improve the operation of the facilities; and ‘‘(4) allow recovery of—

VerDate 14-DEC-2004

16 USC 824s. Deadline.

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