16 U.S.C. § 831j — Equitable distribution of surplus power

Page 1464 TITLE 16—CONSERVATION § 831j not organized or doing business for profit, but primarily for the purpose of supplying elec- tricity to its own citizens or members: Provided, That all contracts made with private companies or individuals for the sale of power, which power is to be resold for a profit, shall contain a provi- sion authorizing the Board to cancel said con- tract upon five years’ notice in writing, if the Board needs said power to supply the demands of States, counties, or municipalities. In order to promote and encourage the fullest possible use of electric light and power on farms within rea- sonable distance of any of its transmission lines the Board in its discretion shall have power to construct transmission lines to farms and small villages that are not otherwise supplied with electricity at reasonable rates, and to make such rules and regulations governing such sale and distribution of such electric power as in its judgment may be just and equitable: Provided further, That the Board is authorized and di- rected to make studies, experiments, and deter- minations to promote the wider and better use of electric power for agricultural and domestic use, or for small or local industries, and it may cooperate with State governments, or their sub- divisions or agencies, with educational or re- search institutions, and with cooperatives or other organizations, in the application of elec- tric power to the fuller and better balanced de- velopment of the resources of the region: Pro- vided further, That the Board is authorized to in- clude in any contract for the sale of power such terms and conditions, including resale rate schedules, and to provide for such rules and reg- ulations as in its judgment may be necessary or desirable for carrying out the purposes of this chapter, and in case the purchaser shall fail to comply with any such terms and conditions, or violate any such rules and regulations, said con- tract may provide that it shall be voidable at the election of the Board: Provided further, That in order to supply farms and small villages with electric power directly as contemplated by this section, the Board in its discretion shall have power to acquire existing electric facilities used in serving such farms and small villages: And provided further, That the terms ‘‘States’’, ‘‘counties’’, and ‘‘municipalities’’ as used in this chapter shall be construed to include the public agencies of any of them unless the context re- quires a different construction. (May 18, 1933, ch. 32, § 10, 48 Stat. 64; Aug. 31, 1935, ch. 836, § 6, 49 Stat. 1076.) Editorial Notes AMENDMENTS 1935—Act Aug. 31, 1935, inserted last three provisos. § 831j. Equitable distribution of surplus power among States and municipalities; improve- ment in production of fertilizer It is declared to be the policy of the Govern- ment so far as practical to distribute and sell the surplus power generated at Muscle Shoals equitably among the States, counties, and mu- nicipalities within transmission distance. This policy is further declared to be that the projects herein provided for shall be considered primarily as for the benefit of the people of the section as a whole and particularly the domestic and rural consumers to whom the power can economically be made available, and accordingly that sale to and use by industry shall be a secondary pur- pose, to be utilized principally to secure a suffi- ciently high load factor and revenue returns which will permit domestic and rural use at the lowest possible rates and in such manner as to encourage increased domestic and rural use of electricity. It is further declared to be the pol- icy of the Government to utilize the Muscle Shoals properties so far as may be necessary to improve, increase, and cheapen the production of fertilizer and fertilizer ingredients by car- rying out the provisions of this chapter. (May 18, 1933, ch. 32, § 11, 48 Stat. 64.) § 831k. Transmission lines; construction or lease; sale of power over other than Government lines; rates when sold for resale at profit In order to place the Board upon a fair basis for making such contracts and for receiving bids for the sale of such power, it is expressly author- ized, either from appropriations made by Con- gress or from funds secured from the sale of such power, or from funds, secured by the sale of bonds hereafter provided for, to construct, lease, purchase, or authorize the construction of trans- mission lines within transmission distance from the place where generated, and to interconnect with other systems. The Board is also author- ized to lease to any person, persons, or corpora- tion the use of any transmission line owned by the Government and operated by the Board, but no such lease shall be made that in any way interferes with the use of such transmission line by the Board: Provided, That if any State, coun- ty, municipality, or other public or cooperative organization of citizens or farmers, not orga- nized or doing business for profit, but primarily for the purpose of supplying electricity to its own citizens or members, or any two or more of such municipalities or organizations, shall con- struct or agree to construct and maintain a properly designed and built transmission line to the Government reservation upon which is lo- cated a Government generating plant, or to a main transmission line owned by the Govern- ment or leased by the Board and under the con- trol of the Board, the Board is authorized and di- rected to contract with such State, county, mu- nicipality, or other organization, or two or more of them, for the sale of electricity for a term not exceeding thirty years; and in any such case the Board shall give to such State, county, munici- pality, or other organization ample time to fully comply with any local law now in existence or hereafter enacted providing for the necessary legal authority for such State, county, munici- pality, or other organization to contract with the Board for such power: Provided further, That all contracts entered into between the Corpora- tion and any municipality or other political sub- division or cooperative organization shall pro- vide that the electric power shall be sold and distributed to the ultimate consumer without discrimination as between consumers of the same class, and such contract shall be voidable at the election of the Board if a discriminatory