16 U.S.C. § 832d — Contracts for sale of electricity

Page 1481 TITLE 16—CONSERVATION § 832d 1 So in original. Probably should be ‘‘subsection’’. as provided in section 1 (a) and to effectuate the intent and purpose of this chapter that at all times up to January 1, 1942, there shall be avail- able for sale to public bodies and cooperatives not less than 50 per centum of the electric en- ergy produced at the Bonneville project, it shall be the duty of the administrator in making con- tracts for the sale of such energy to so arrange such contracts as to make such 50 per centum of such energy available to said public bodies and cooperatives until January 1, 1942: Provided, That the electric energy so reserved for but not actually purchased by and delivered to such pub- lic bodies and cooperatives prior to January 1, 1942, may be disposed of temporarily so long as such temporary disposition will not interfere with the purchase by and delivery to such public bodies and cooperatives at any time prior to January 1, 1942: Provided further, That nothing herein contained shall be construed to limit or impair the preferential and priority rights of such public bodies or cooperatives after January 1, 1942; and in the event that after such date there shall be conflicting or competing applica- tions for an allocation of electric energy be- tween any public body or cooperative on the one hand and a private agency of any character on the other, the application of such public body or cooperative shall be granted. (c) Allowance of time for financing An application by any public body or coopera- tive for an allocation of electric energy shall not be denied, or another application competing or in conflict therewith be granted, to any private corporation, company, agency, or person, on the ground that any proposed bond or other security issue of any such public body or cooperative, the sale of which is necessary to enable such pro- spective purchaser to enter into the public busi- ness of selling and distributing the electric en- ergy proposed to be purchased, has not been au- thorized or marketed, until after a reasonable time, to be determined by the administrator, has been afforded such public body or coopera- tive to have such bond or other security issue authorized or marketed. (d) Congressional declaration of policy; allow- ance of time for creation and organization It is declared to be the policy of the Congress, as expressed in this chapter, to preserve the said preferential status of the public bodies and co- operatives herein referred to, and to give to the people of the States within economic trans- mission distance of the Bonneville project rea- sonable opportunity and time to hold any elec- tion or elections or take any action necessary to create such public bodies and cooperatives as the laws of such States authorize and permit, and to afford such public bodies or cooperatives reasonable time and opportunity to take any ac- tion necessary to authorize the issuance of bonds or to arrange other financing necessary to construct or acquire necessary and desirable electric distribution facilities, and in all other respects legally to become qualified purchasers and distributors of electric energy available under this chapter. (Aug. 20, 1937, ch. 720, § 4, 50 Stat. 733; Mar. 6, 1940, ch. 47, § 3, 54 Stat. 47.) Editorial Notes AMENDMENTS 1940—Subsec. (b). Act Mar. 6, 1940, substituted ‘‘Janu- ary 1, 1942’’ for ‘‘January 1, 1941’’ wherever appearing. 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. § 832d. Contracts for sale of electricity (a) Authorization of Administrator; contents of contracts Subject to the provisions of this chapter and to such rate schedules as the Secretary of En- ergy may approve, as provided in this chapter, the administrator shall negotiate and enter into contracts for the sale at wholesale of electric energy, either for resale or direct consumption, to public bodies and cooperatives and to private agencies and persons and for the disposition of electric energy to Federal agencies. Contracts for the sale of electric energy to any private per- son or agency other than a privately owned pub- lic utility engaged in selling electric energy to the general public, shall contain a provision for- bidding such private purchaser to resell any of such electric energy so purchased to any private utility or agency engaged in the sale of electric energy to the general public, and requiring the immediate canceling of such contract of sale in the event of violation of such provision. Con- tracts entered into under this subsection shall be binding in accordance with the terms thereof and shall be effective for such period or periods, including renewals or extensions, as may be pro- vided therein, not exceeding in the aggregate twenty years from the respective dates of the making of such contracts. Contracts entered into under this subsection shall contain (1) such provisions as the administrator and purchaser agree upon for the equitable adjustment of rates at appropriate intervals, not less frequently than once in every five years, and (2) in the case of a contract with any purchaser engaged in the business of selling electric energy to the general public, the contract shall provide that the ad- ministrator may cancel such contract upon five years’ notice in writing if in the judgment of the administrator any part of the electric energy purchased under such contract is likely to be needed to satisfy the requirements of the said public bodies or cooperatives referred to in this chapter, and that such cancelation may be with respect to all or any part of the electric energy so purchased under said contract to the end that the preferential rights and priorities accorded public bodies and cooperatives under this chap- ter shall at all times be preserved. Contracts en- tered into with any utility engaged in the sale of electric energy to the general public shall Page 1482 TITLE 16—CONSERVATION § 832e contain such terms and conditions, including among other things stipulations concerning re- sale and resale rates by any such utility, as the administrator may deem necessary, desirable or appropriate to effectuate the purposes of this chapter and to insure that resale by such utility to the ultimate consumer shall be at rates which are reasonable and nondiscriminatory. Such contracts shall also require such utility to keep on file in the office of the administrator a schedule of all its rates and charges to the pub- lic for electric energy and such alterations and changes therein as may be put into effect by such utility. (b) Exchange of excess power The administrator is authorized to enter into contracts with public or private power systems for the mutual exchange of unused excess power upon suitable exchange terms for the purpose of economical operation or of providing emergency or break-down relief. (Aug. 20, 1937, ch. 720, § 5, 50 Stat. 734; Oct. 23, 1945, ch. 433, § 2, 59 Stat. 546; Pub. L. 95–91, title III, § 301(b), Aug. 4, 1977, 91 Stat. 578.) Editorial Notes AMENDMENTS 1945—Subsec. (a). Act Oct. 23, 1945, inserted ‘‘and for the disposition of electric energy to Federal agencies’’ in first sentence. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Secretary of Energy’’ substituted for ‘‘Federal Power Commission’’ in subsec. (a) pursuant to Pub. L. 95–91, § 301(b), which is classified to section 7151(b) of Title 42, The Public Health and Welfare. 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, with Bonneville Power Administration to be preserved as a distinct organizational entity within Department of Energy and headed by an Administrator. The Federal Power Commission was terminated, and its functions, personnel, property, funds, etc., were transferred to the Secretary of Energy (except for cer- tain functions which were transferred to the Federal Energy Regulatory Commission) by sections 7151(b), 7171(a), 7172(a), 7291, and 7293 of Title 42. Executive Documents TRANSFER OF FUNCTIONS Executive and administrative functions of Federal Power Commission, with certain reservations, trans- ferred to Chairman of such Commission, with authority vested in him to authorize their performance by any of- ficer, employee, or administrative unit under his juris- diction, by Reorg. Plan No. 9 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out as a note under section 792 of this title. For transfer of functions of other officers, employees, and agencies of Department of the Interior, with cer- tain exceptions, to Secretary of the Interior, with power to delegate, see Reorg. Plan No. 3 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1262, set out in the Appendix to Title 5, Government Organization and Employees. § 832e. Rate schedules Schedules of rates and charges for electric en- ergy produced at the Bonneville project and sold to purchasers as in this chapter provided shall be prepared by the administrator and become ef- fective upon confirmation and approval thereof by the Secretary of Energy; and such rates and charges shall also be applicable to dispositions of electric energy to Federal agencies. Subject to confirmation and approval by the Secretary of Energy, such rate schedules may be modified from time to time by the administrator, and shall be fixed and established with a view to en- couraging the widest possible diversified use of electric energy. The said rate schedules may provide for uniform rates or rates uniform throughout prescribed transmission areas in order to extend the benefits of an integrated transmission system and encourage the equi- table distribution of the electric energy devel- oped at the Bonneville project. (Aug. 20, 1937, ch. 720, § 6, 50 Stat. 735; Oct. 23, 1945, ch. 433, § 3, 59 Stat. 546; Pub. L. 95–91, title III, § 301(b), Aug. 4, 1977, 91 Stat. 578.) Editorial Notes AMENDMENTS 1945—Act Oct. 23, 1945, inserted ‘‘and such rates and charges shall also be applicable to dispositions of elec- tric energy to Federal agencies’’ in first sentence. Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Secretary of Energy’’ substituted in text for ‘‘Fed- eral Power Commission’’ pursuant to Pub. L. 95–91, § 301(b), which is classified to section 7151(b) of Title 42, The Public Health and Welfare. 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. The Federal Power Commission was terminated, and its functions, personnel, property, funds, etc., were transferred to the Secretary of Energy (except for cer- tain functions which were transferred to the Federal Energy Regulatory Commission) by sections 7151(b), 7171(a), 7172(a), 7291, and 7293 of Title 42. Executive Documents TRANSFER OF FUNCTIONS Executive and administrative functions of Federal Power Commission, with certain reservations, trans- ferred to Chairman of such Commission, with authority vested in him to authorize their performance by any of- ficer, employee, or administrative unit under his juris- diction, by Reorg. Plan No. 9 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out as a note under section 792 of this title. § 832f. Elements in determining rates It is the intent of Congress that rate schedules for the sale of electric energy which is or may be generated at the Bonneville project in excess of the amount required for operating the dam, locks, and appurtenant works at said project shall be determined with due regard to and predicated upon the fact that such electric en- ergy is developed from water power created as an incident to the construction of the dam in the Columbia River at the Bonneville project for