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Understanding Non-Bypassable Charges [Energy] and Their Legal Implications
Definition & Meaning
Non-bypassable charges refer to fees mandated by government authorities that individuals or entities must pay over a specified period. These charges are intended to cover costs associated with the decommissioning of nuclear power plants. Examples of non-bypassable charges include wire charges, stranded cost charges, transition charges, exit fees, and similar fees, as well as the proceeds from securitized revenue streams.
Table of content
Legal Use & context
This term is primarily used in the context of energy regulation and nuclear energy law. Non-bypassable charges are relevant in cases involving the financing of decommissioning activities for nuclear facilities. Legal practitioners may encounter these charges in regulatory filings, utility rate cases, and when advising clients on energy contracts. Users can manage related forms and procedures using templates provided by US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A utility company may impose a non-bypassable charge on its customers to fund the decommissioning of an aging nuclear power plant. This charge would appear on customers' monthly bills.
Example 2: A state regulatory agency might establish a stranded cost charge to recover costs from a nuclear facility that has been taken offline (hypothetical example).
Relevant laws & statutes
Non-bypassable charges are referenced in the Code of Federal Regulations, specifically 10 CFR 50.2, which outlines the definitions and regulations surrounding nuclear facility licensing and decommissioning.
State-by-state differences
State
Variation
California
Has specific regulations governing the calculation of stranded cost charges.
Texas
Imposes different types of fees related to energy deregulation and decommissioning.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Stranded Cost Charges
Fees to recover costs from investments that cannot be recovered through market sales.
Stranded cost charges may not be directly related to decommissioning costs.
Exit Fees
Charges imposed when a customer leaves a utility service.
Exit fees may not be linked to decommissioning efforts.
Common misunderstandings
What to do if this term applies to you
If you encounter non-bypassable charges on your utility bill, review the details to understand the specific fees. If you have questions or concerns, consider consulting with a legal professional who specializes in energy law. Additionally, you can explore US Legal Forms for templates that may assist you in addressing these charges.
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