---
title: "Record that a retail electricity sale is not a federal license under section 824"
url: "https://ailawframework.com/practice/energy-resources-and-mining/prepare-the-energy-retail-authorisation-or-licence-application/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A13-X20260927-6-US"
practice_area: "Energy, Resources & Mining"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Record that a retail electricity sale is not a federal license under section 824

> Record the state the lawyer names and the retail service the lawyer describes. Do not draft a federal retail license application and do not say the service is wholesale.

Canonical page: https://ailawframework.com/practice/energy-resources-and-mining/prepare-the-energy-retail-authorisation-or-licence-application/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Energy, Resources & Mining](https://ailawframework.com/practice/energy-resources-and-mining.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Record the state the lawyer names and the retail service the lawyer describes. Do not draft a federal retail license application and do not say the service is wholesale. |
| What the lawyer must review | 16 U.S.C. 824(a) declares that federal regulation extends to transmission of electric energy in interstate commerce and to the sale of such energy at wholesale in interstate commerce, and only to matters which are not subject to regulation by the States. Section 824(b)(1) provides that this subchapter shall apply to the transmission of electric energy in interstate commerce and to the sale of electric energy at wholesale in interstate commerce, but except as provided in paragraph (2) shall not apply to any other sale of electric energy. Section 824(d) defines a sale of electric energy at wholesale as a sale to any person for resale. Paragraph (2) of subsection (b) was not opened. ABA Formal Opinion 512 (29 July 2024) leaves the lawyer responsible for the application. The lawyer opens the state commission's requirements. The note does not draft them. |
| Written for | United States |
| Applies to | [Prepare the energy retail authorisation or licence application](https://ailawframework.com/practice/energy-resources-and-mining/prepare-the-energy-retail-authorisation-or-licence-application.md) |

## Checking plan

- What the AI does: Record the state the lawyer names and the retail service the lawyer describes. Do not draft a federal retail license application and do not say the service is wholesale.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- A sale for resale is the wholesale definition in section 824(d). A sale to an end user is not recast as wholesale.
- Paragraph (b)(2) was not opened. The note does not apply it.

## Sources

- [16 U.S.C. 824, Declaration of policy; application of subchapter](https://www.law.cornell.edu/uscode/text/16/824) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [AER retailer authorisation screen before an application](https://ailawframework.com/precedents/energy-resources-and-mining/aer-retailer-authorisation-screen.md) | Checklist | Yellow | The three entry criteria and the pre-application steps on the Australian Energy Regulator retailer authorisations page, including when an exemption may be the right path. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*