OCR Text |
Show ondary purpose, to be utilized principally to se- cure sufficiently high load factors and revenue returns "which will permit domestic and rural use at the lowest possible rates and in such man- ner as to encourage increased domestic and rural use of electricity." In brief, the power policy embodied in the TVA Act was designed to bring lower rates, larger use of electricity by homes and farms, and use of the widespread availability of low cost power for regional development. Principles for Marketing Federal Power These general principles applying to the mar- keting of power from Federal river basin projects, expressed sometimes more and sometimes less elaborately, thereafter became the standard pat- tern for Federal disposal of power. Congress incorporated them successively into the Rural Electrification Act of 1936, the Bonneville Act of 1937, the Fort Peck Act of 1938, the Recla- mation Project Act of 1939, and the Flood Con- trol Act of 1944. The latter act made them applicable to the marketing of power from all reservoir projects under the control of the Army Engineers. The Fort Peck Act goes further in expressing the intent of Congress when it gives the Bureau of Reclamation broad authority to construct and maintain transmission lines in order, as stated by Congress: "To encourage the widest possible use of all electrical energy that can be generated and marketed and to provide reasonable outlets therefor, and to prevent the monopolization thereof by limited groups." This is consistent with the provision of the Fed- eral Power Act, carried over from the Water Power Act of 1920, directed against arrangements in restraint of trade in the field of power gen- erated at non-Federal projects under Federal licenses. The same general purpose of preventing monopolization was incorporated in the provi- sions for marketing of power from Columbia Basin projects by the Bonneville Administration. In the Bonneville Act the usual preference to public bodies and cooperatives was extensively broadened by requirements allowing time for their creation, organization, and financing. Here again we find a parallel with the preference pro- vision of the 1920 Federal Water Power Act under which States and municipalities are to be allowed a reasonable time within which to make their plans as well adapted to comprehensive development of the river for all beneficial pur- poses as those of a private applicant. A further principle applying to the market- ing of Federal river basin power has been intro- duced in legislation since the TVA Act. Rates for power marketed under the Fort Peck, Bonne- ville, and 1944 Flood Control Acts are subject to the approval of the Federal Power Commission. General Outlines of Federal Power Policy This brief sketch of the evolution of Federal power policy, with special reference to water power, suggests consistent congressional action in this field for more than a generation. The principles, as developed to meet the changing approach to river basin development, may be summarized as follows: 1. Hydroelectric power should be developed as part of comprehensive development of the river for all beneficial purposes. 2. Public plans for the development of water power resources should be accorded a preference, this preference going first to Federal projects and then to those of States and municipalities. 3. Non-Federal development of water power should be permitted under licenses for limited periods subject to provisions protecting the public interest in low-cost electricity and to possible re- capture by the Federal Government at reasonable cost at the end of the license period. 4. The Federal Government should continue to exercise its responsibility for taking a leading part in development of river basins in their en- tirety for flood protection, water supply, irri- gation, navigation, power, recreation, and other beneficial purposes. 227 |