42 U.S.C. § 16431 — Federal utility participation in transmission organizations

(a) Definitions: "Appropriate Federal regulatory authority" means the Secretary^* of Energy for a Federal power marketing agency (though the Secretary may let that agency's Administrator^* act in this role for its own transmission system), or the Board of Directors for the Tennessee Valley Authority. "Federal power marketing agency" has the meaning given in 16 U.S.C. § 796. "Federal utility" means a Federal power marketing agency or the Tennessee Valley Authority. "Transmission Organization" has the meaning given in 16 U.S.C. § 796. "Transmission system" means an electric transmission facility the United States owns, leases, or has contracted for, and that a Federal utility operates.

(b) Transfer: The appropriate Federal regulatory authority may enter a contract, agreement, or other arrangement transferring control and use of all or part of a Federal utility's transmission system to a Transmission Organization.

(c) Contents: That contract, agreement, or arrangement must include: performance standards for running and using the transmission system, set by the Federal utility's head as necessary or appropriate — including standards ensuring the Federal utility recovers all its transmission-related costs and expenses, consistency with existing contracts and third-party financing arrangements, and consistency with the utility's statutory authorities, obligations, and limitations; provisions letting the Federal utility monitor and oversee the Transmission Organization's compliance with the arrangement's terms, including a way to resolve disputes through arbitration or other means with the Organization or other participants, despite what any other arbitration law might otherwise require; and a provision letting the Federal utility withdraw from the Transmission Organization and end the arrangement under its own terms.

(d) Commission^*: Neither this section, nor any action taken under it, nor any other transaction of a Federal utility participating in a Transmission Organization gives the Federal Energy Regulatory Commission jurisdiction or authority over the Federal utility's electric generation assets, capacity, or energy that it's legally authorized to market, or over its power sales activities.

(e) Existing statutory and other obligations: No statutory provision requiring or authorizing a Federal utility to transmit power, or to build, operate, or maintain its transmission system, prohibits a transfer of control under this section's requirements. This subsection also does not suspend or exempt any Federal utility from any federal law in effect on August 8, 2005 — including any requirement about using the transmission system, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation — and does not authorize breaking any contract or treaty obligation.