---
kind: "section"
citation: "42 U.S.C. § 6803"
title: "42"
title_heading: "The Public Health and Welfare"
number: "6803"
heading: "Development of electric utility rate design proposals by Secretary; contents; submission to Congress; supporting analysis"
release: "119-102"
url: "https://uscodex.org/usc/42/6803"
units:
  - "Chapter 81 — Energy Conservation and Resource Renewal"
  - "Subchapter I — Electric Utility Rate Design Initiatives"
---

# §6803. Development of electric utility rate design proposals by Secretary; contents; submission to Congress; supporting analysis

- (a) The [Secretary](/usc/42/6802.md?p=1) shall develop proposals to improve [electric utility](/usc/42/6802.md?p=2) rate design. Such proposals shall be designed to encourage [energy](/usc/42/6311.md?p=7) conservation, minimize the need for new electrical generating capacity, and minimize costs of electric [energy](/usc/42/6311.md?p=7) to consumers, and shall include (but not be limited to) proposals which provide for the development and implementation of—
  - (1) load management techniques which are cost effective;
  - (2) rates which reflect marginal cost of service, or time of use of service, or both;
  - (3) ratemaking policies which discourage inefficient use of fuel and encourage economical purchases of fuel; and
  - (4) rates (or other regulatory policies) which encourage [electric utility](/usc/42/6802.md?p=2) system reliability and reliability of major items of [electric utility](/usc/42/6802.md?p=2) equipment.
- (b) The proposals prepared under [subsection (a)](#a) shall be transmitted to each House of Congress not later than 6 months after August 14, 1976, for review and for such further action as the Congress may direct by law. Such proposals shall be accompanied by an analysis of—
  - (1) the projected savings (if any) in consumption of petroleum products, natural gas, electric [energy](/usc/42/6311.md?p=7), and other [energy](/usc/42/6311.md?p=7) resources,
  - (2) the reduction (if any) in the need for new electrical generating capacity, and of the demand for capital by the [electric utility](/usc/42/6802.md?p=2) industry, and
  - (3) changes (if any) in the cost of electric [energy](/usc/42/6311.md?p=7) to consumers,

  which are likely to result from the implementation nationally of each of the proposals transmitted under this subsection.


## Source credit

(Pub. L. 94–385, title II, § 203, Aug. 14, 1976, 90 Stat. 1143; Pub. L. 95–617, title I, § 143, Nov. 9, 1978, 92 Stat. 3134.)

## Notes

### Editorial Notes

### Amendments

1978—Subsec. (a). Pub. L. 95–617 substituted “Secretary” for “Administrator”, meaning Administrator of the Federal Energy Administration.