16 U.S.C. § 837d — Exchange contracts

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 Page 1509 TITLE 16—CONSERVATION § 837h Northwest in equal amounts during the same Pacific Northwest refill period or the succeeding storage drawdown period, (3) any hydroelectric energy which will be returned to the Pacific Northwest in equal amounts during the same Pacific Northwest storage drawdown period, (4) hydroelectric peaking capacity, or (5) surplus peaking capacity for energy. All benefits from such exchanges, including resulting increases of firm power, shall be shared equitably by the areas involved, having regard to the secondary energy and other contributions made by each. (Pub. L. 88–552, § 5, Aug. 31, 1964, 78 Stat. 758.) § 837e. Transmission lines for other electric en- ergy; rates Any capacity in Federal transmission lines connecting, either by themselves or with non- Federal lines, a generating plant in the Pacific Northwest or Canada with the other area or with any other area outside the Pacific North- west, which is not required for the transmission of Federal energy or the energy described in sec- tion 837h of this title, shall be made available as a carrier for transmission of other electric en- ergy between such areas. The transmission of other electric energy shall be at equitable rates determined by the Secretary, but such rates shall be subject to equitable adjustment at ap- propriate intervals not less frequently than once in every five years as agreed to by the parties. No contract for the transmission of non-Federal energy on a firm basis shall be affected by any increase, subsequent to the execution of such contract, in the requirements for transmission of Federal energy, the energy described in sec- tion 837h of this title, or other electric energy. (Pub. L. 88–552, § 6, Aug. 31, 1964, 78 Stat. 758.) § 837f. Purchaser priority on Pacific Northwest power; amendment of existing contracts and new contracts to include priority provisions The Secretary shall offer to amend, without imposing any other requirements as a condition to such amendment, all existing contracts for the sale or exchange of electric power generated at Federal hydroelectric plants in the Pacific Northwest to include, and shall include in all new contracts, provisions giving the purchaser priority on electric power generated at such plants in conformity with the provisions of this chapter. (Pub. L. 88–552, § 7, Aug. 31, 1964, 78 Stat. 758.) § 837g. Transmission lines between Pacific North- west and Pacific Southwest; prohibition against construction of lines or related facili- ties; exceptions of lines and facilities rec- ommended by Secretary or authorized by Congress; authority of Secretary to construct other transmission lines unaffected No electric transmission lines or related fa- cilities shall be constructed by any Federal agency outside the Pacific Northwest for the purpose of transmitting electric energy between the Pacific Northwest and Pacific Southwest, nor shall any arrangement for transmission ca- pacity be executed by any Federal agency for the purpose of financing such lines and related facilities to be constructed by non-Federal enti- ties, except those lines and facilities rec- ommended for Federal construction in the Re- port of the Secretary of the Interior submitted to Congress on June 24, 1964, as supplemented on July 27, 1964, or as hereafter specifically author- ized by Congress: Provided, That, except with re- spect to electric transmission lines and related facilities for the purpose of transmitting elec- tric energy between the two regions above men- tioned, nothing herein shall be construed as ex- panding or diminishing in any way the present authority of the Secretary of Energy to con- struct transmission lines to market power and energy. (Pub. L. 88–552, § 8, Aug. 31, 1964, 78 Stat. 758; Pub. L. 95–91, title III, § 302(a), Aug. 4, 1977, 91 Stat. 578.) Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS ‘‘Secretary of Energy’’ substituted for ‘‘Secretary of the Interior’’ in the proviso in text pursuant to Pub. L. 95–91, § 302(a), which is classified to section 7152(a) of Title 42, The Public Health and Welfare. § 837g–1. Construction of additional facilities by Secretary of Energy for mutually beneficial power sales between Pacific Northwest and California; contribution of funds by non-Fed- eral entities Notwithstanding the provisions of section 837g of this title, the Secretary of Energy is author- ized to construct or participate in the construc- tion of such additional facilities as he deems necessary to allow mutually beneficial power sales between the Pacific Northwest and Cali- fornia and to accept funds contributed by non- Federal entities for that purpose. (Pub. L. 98–360, title III, July 16, 1984, 98 Stat. 416.) Editorial Notes CODIFICATION Section was not enacted as part of Pub. L. 88–552 which comprises this chapter. § 837h. Provisions not applicable to Canyon Ferry project or benefits and exchanges under Treaty between Canada and United States; preference of power users in Montana not modified The provisions of this chapter shall not be ap- plicable to (1) the Canyon Ferry project and (2), except as provided in section 837e of this title, downstream power benefits to which Canada is entitled under the treaty between Canada and the United States relating to the cooperative de- velopment of the water resources of the Colum- bia River Basin, signed at Washington, January 17, 1961, nor to energy or capacity disposed of to Canada in any exchange pursuant to paragraph 1 or 2 of article VIII thereof. Nothing in this chapter shall be construed to modify the geo- graphical preference of power users in the State of Montana which is established by the Hungry Horse Dam Act (Act of June 4, 1944, 58 Stat. 270), as amended.