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Show Federal and Federal development of water power resources, with a preference to public power ap- plicants. This act is important. It was the first effort of Congress to express Federal power policy as a whole. There is no question as to the intent of Con- gress in this act to encourage private development of water poAver by regularizing and facilitating Federal permission for private development un- der licenses issued by a Federal Power Commis- sion. But the provision made for such develop- ment left the way open for possible ultimate public ownership. In the first place, the act requires that water power development be undertaken as a part of comprehensive multiple-purpose plans for im- provement or development of the country's water- ways. This is clear in provisions covering both the investigations and the licensing authority of the Federal Power Commission. In the second place, the act provides a definite preference for public development. In its inves- tigations the commission is required to look into the question whether power from Federal dams can be advantageously used by the United States for its public purposes. Furthermore, in issuing preliminary permits or licenses for development of water power, the commission must give pref- erence to applications by States and municipali- ties, provided their plans are equally well adapted to conserve and utilize in the public interest the water resources of the region. In the third place, in connection with any ap- plication for a license, the responsibility is placed upon the Commission to determine whether the development of any water resources for public purposes should be undertaken by the United States. If it; so determines, it is directed not to approve any application for any project affecting such development but to prepare surveys, plans, and cost estimates and submit them to Congress with recommendations concerning the develop- ment. In the fourth place, licenses for non-Federal water power development were limited to periods of not to exceed 50 years, with opportunity for the United States to take over and operate the plants at the end of the period. Careful provi- sion was made to assure the licensees reasonable reimbursement for their investment in case of such a taking, but also to prevent any excessive claims. Finally, the Water Power Act contained a series of provisions designed to assure consumers the opportunity to use electric energy generated at licensed projects at the lowest possible rates. Furthermore, licensees were specifically bound by the provision that combinations, agreements, ar- rangements, or understandings, express or im- plied, to limit the output of electrical energy, to restrain trade, or to fix, maintain, or increase prices for electrical energy or service, were prohibited. The power policy established in this act has been in effect since 1920. Confirming the intent of Congress, as expressed in the clear provisions of the act with particular reference to the rela- tionship between private and public development of water power resources on a long-run basis, are the following quotations from the September 12, 1919, report of the Senate Committee on Com- merce on the bill which became law and from the chairman of that committee. The committee said: * * * Every year that our water powers are undeveloped means a loss to the people in one form or another, almost, if not quite, equal to the cost of their development. Legislative action should be delayed no longer. We should do one of two things: We should pass legislation which will lead private capital and enterprise to develop these resources under such regulations as will give consumers good service and cheap power, or the Government itself should proceed to make this development. This bill proceeds on the theory of private development with ultimate public ownership possible. The chairman of the committee, addressing the Senate December 9, 1919, on the Federal water power bill, said: It will thus be seen that under the terms of the act the Federal Government has, through its Com- mission, the first right to develop any of the water powers under its jurisdiction. Should the Federal Government elect not to do so, then States and municipalities are accorded a preference right to licenses on even terms over citizens, associations of citizens, or corporations organized under the laws of the United States or any of the States thereof. 224 |