Page:United States Statutes at Large Volume 92 Part 3.djvu/510

 92 STAT. 3142 16 USC 824a note.

16 USC 824d. 16 USC 824d note.

Report to Congress.

PUBLIC LAW 95-617—NOV. 9, 1978 (b) EFFECTI^^ DATE.—The amendment made by subsection (a) shall not affect any proceeding of the Commission pending on the date of the enactment of this Act or any case pending on such date respecting a I)roceeding of the Commission. SEC. 207. CONSIDERATION OF PROPOSED RATE INCREASES. (a) NOTICE PERIOD.—Section 205(d) of the Federal Power Act is amended by striking out "thirty" each place it appears and substituting "sixty". (b) STUDY.—The chairman of the Federal Energy Regulatory Commission, in consultation with the Secretary, is directed to conduct a study of the legal requirements and administrative procedures involved in the consideration and resolution of proposed wholesale electric rate increases under the Federal Power Act for the purposes of (1) providing for expeditious handling of hearings consistent with due process, (2) preventing the imposition of successive rate increases before they have been determined by the Commission to be just and reasonable and otherwise lawful, and (3) improving procedures designed to prohibit anticompetitive or unreasonable differences in wholesale and retail rates, or both. The chairman shall report to Congress within nine months from the date of enactment of this Act on the results of the study required under this section, on the administrative actions taken as a result of this study, and on any recommendations for changes in existing law that will aid the purposes of this section. SEC. 208. AUTOMATIC ADJUSTMENT CLAUSES. Section 205 of the Federal Power Act is amended by adding the following new subsection at the end thereof: "(f)(1) Not later than 2 years after the date of the enactment of this subsection and not less often than every 4 years thereafter, the Commission shall make a thorough review of automatic adjustment clauses in public utility rate schedules to examine— "(A) whether or not each such clause effectively provides incentives for efficient use of resources (including economical purchase and use of fuel and electric energy), and " (B) whether any such clause reflects any costs other than costs which are— " (i) subject to periodic fluctuations and "(ii) not susceptible to precise determinations in rate cases prior to the time such costs are incurred. Such review may take place in individual rate proceedings or in generic or other separate proceedings applicable to one or more utilities. " (2) Not less frequently than every 2 years, in rate proceedings or in generic or other separate proceedings, the Commission shall review, with respect to each public utility, practices under any automatic adjustment clauses of such utility to insure efficient use of resources (including economical purchase and use of fuel and electric energy) under such clauses. "(3) The Commission may, on its own motion or upon complaint, after an opportunity for an evidentiary hearing, order a public utility to— "(A) modify the terms and provisions of any automatic adjustment clause, or "(B) cease any practice in connection with the clause, if such clause or practice does not result in the economical purchase and use of fuel, electric energy, or other items, the cost of which is included in any rate schedule under an automatic adjustment clause.

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