16 U.S.C. § 837b — Contract terms and conditions for use of

Page 1508 TITLE 16—CONSERVATION § 837b Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Sec- retary of Energy by section 7152(a)(1)(D), (2) of Title 42, The Public Health and Welfare, with Bonneville Power Administration to be preserved as a distinct organiza- tional entity within Department of Energy and headed by an Administrator. § 837b. Contract terms and conditions for use of electric energy outside Pacific Northwest (a) Surplus energy; discontinuance of deliveries to maintain ability to meet requirements of Pacific Northwest customers; purchaser’s re- sponsibility for hardships; deliveries by non- Federal utility for use on contiguous dis- tribution system not deemed deliveries for use outside Pacific Northwest Any contract for the sale or exchange of sur- plus energy for use outside the Pacific North- west, or as replacement, directly or indirectly, within the Pacific Northwest for hydroelectric energy delivered for use outside that region by a non-Federal utility, shall provide that the Secretary, after giving the purchaser notice not in excess of sixty days, will not deliver electric energy under such contract whenever it can rea- sonably be foreseen that such delivery would im- pair his ability to meet, either at or after the time of such delivery, the energy requirements of any Pacific Northwest customer. The pur- chaser shall obligate himself not to take deliv- ery of or use any such energy to supply any load under such conditions that discontinuance of de- liveries from the Pacific Northwest in sixty days would cause undue hardship to the purchaser or in his territory, and, further, the purchaser shall acknowledge full responsibility if any such hard- ship occurs. Deliveries by a non-Federal utility from its generating plants in the Pacific North- west for use on its own distribution system in an area outside but contiguous to the Pacific Northwest (not including any extension of its outside service area by merger or acquisition after August 31, 1964) shall not be deemed deliv- eries by such utility for use outside the Pacific Northwest. (b) Conservable electric energy; provisional basis for delivery; return of energy to meet re- quirements of Pacific Northwest customers; time and extent of return of energy Electric energy generated at Federal hydro- electric plants in the Pacific Northwest which can be conserved, for which there is no imme- diate demand in the Pacific Northwest at any established rate, but for which the Secretary de- termines there may be a demand in meeting the future requirements of the Pacific Northwest, may be delivered for use outside that region only on a provisional basis under contracts pro- viding that if the Secretary determines at a sub- sequent time that, by virtue of prior deliveries under such contract, the Secretary is or will be unable to meet the energy requirements of any Pacific Northwest customer, the purchaser will return the full amount of energy delivered to him, or such portion or portions thereof as may be required, at such time or times as may be specified by the Secretary, except that the Sec- retary shall not require return during the pur- chaser’s daily peak periods. The Secretary shall require the return of the energy provisionally delivered hereunder, to such extent and at such times, as may be necessary to meet demands at any established rate for use within the Pacific Northwest. (c) Surplus peaking capacity; termination clause; advance or return of energy; time of return of energy; sale under subsection (a) condi- tions Any contract for the disposition of surplus peaking capacity shall provide that (1) the Sec- retary may terminate the contract upon notice not in excess of sixty months, and (2) the pur- chaser shall advance or return the energy nec- essary to supply the peaking capacity, except that the Secretary shall not require such ad- vance or return during the purchaser’s daily peak periods. The Secretary may contract for the sale of such energy to the purchaser, in lieu of its return, under the conditions prescribed in subsection (a) of this section. (d) Determination of energy requirements of Pa- cific Northwest non-Federal utility customer; exclusion of conservable energy; sale of sur- plus energy to the utility The Secretary, in making any determination of the energy requirements of any Pacific North- west customer which is a non-Federal utility having hydroelectric generating facilities, shall exclude any amounts of hydroelectric energy generated in the Pacific Northwest and disposed of outside the Pacific Northwest by the utility which, through reasonable measures, could have been conserved or otherwise kept available for the utility’s own needs in the Pacific Northwest. The Secretary may sell the utility as a replace- ment therefor only what would otherwise be sur- plus energy. (Pub. L. 88–552, § 3, Aug. 31, 1964, 78 Stat. 756.) § 837c. Contract limitations and conditions for use of electric energy and peaking capacity of plants in other marketing areas for use within Pacific Northwest Any contract of the Secretary for the sale or exchange of electric energy generated at, or peaking capacity of, Federal hydroelectric plants in marketing areas outside the Pacific Northwest for use within the Pacific Northwest shall be subject to limitations and conditions corresponding to those provided in sections 837a and 837b of this title for any contract for the sale or exchange of hydroelectric energy or peaking capacity generated within the Pacific Northwest for use outside the Pacific Northwest. (Pub. L. 88–552, § 4, Aug. 31, 1964, 78 Stat. 757.) § 837d. Exchange contracts Without regard to the limitations specified in sections 837a and 837b of this title, the Secretary may enter into contracts for the exchange with areas other than the Pacific Northwest of (1) surplus energy during the Pacific Northwest storage refill period, (2) any hydroelectric en- ergy during the Pacific Northwest storage refill period which will be returned to the Pacific