Interstate Transmission Act of 2005 - Amends the Federal Power Act to direct the Federal Energy Regulatory Commission (FERC) to: (1) establish incentive-based rate treatments for the transmission of electric energy in interstate commerce by any public utility in order to ensure reliability and to decrease the cost of delivered power by reducing transmission congestion; and (2) provide for incentives to each transmitting utility or electric utility that joins a Regional Transmission Organization (RTO) or Independent System Operator.
Prescribes guidelines for open nondiscriminatory access by unregulated transmitting utilities.
Prohibits FERC from requiring an unregulated transmitting utility to transfer control or operational control of its transmitting facilities to an RTO or any other Commission-approved independent transmission organization designated to provide nondiscriminatory transmission access.
Amends the Internal Revenue Code to treat electric transmission property treated as 15-year property.
Repeals the requirement for FERC prior authorization of the disposition of public utility facilities.
Grants FERC jurisdiction over Electric Reliability Organizations certified by FERC to establish and enforce reliability standards for the bulk-power system.
Exempts Hawaii and Alaska from application of this Act.
Prescribes guidelines governing the obligations of electric utilities to provide electric service to either end-users or to a distribution utility (native load service obligation).
Specifies conditions under which FERC is required to approve a voluntary transmission pricing plan containing criteria for determining the person or persons that will be required to pay for any construction of new transmission facilities or expansion, modification or upgrade of transmission facilities, or new generator interconnection.
Authorizes FERC to promote voluntary development of regional transmission organizations, independent transmission providers, and similar organizations in order to enhance electric energy transmission in interstate commerce.