Fair Allocation of Interstate Rates Act

Prevention of Unconsented Cost Allocation: Under Section 2(h)(1), transmission providers would be prohibited from allocating costs for a "covered transmission facility" to consumers who are not residents of the state that implemented the policy driving the construction. This ensures people are not paying for projects requested by other states.

Protection of Non-Resident Consumers: According to Section 2(h)(3)(C), there is a presumption that a consumer residing outside the state that implemented a policy is not a "cost causer." This provides a layer of financial protection for residents in states that did not initiate the specific policy.

Restricted Cost Sharing: Under Section 2(h)(1)(A) and (B), the ability to share costs across state lines for facilities built to implement a state policy is restricted. This could impact those who might have benefited from shared costs if the new rules were not in place.

Limited Exceptions to the Prohibition: Per Section 2(h)(2), the only way a consumer can be charged for these costs is if their specific State or a designated public official provides express consent. This creates a strict requirement for cost allocation that may not account for all circumstances.