OCR Text |
Show in the act, are given a preference in the issuance of licenses. Provision is also made for the imposition of certain charges, including reasonable annual charges for reimbursing the United States for the costs of administering the licensing provisions and for recompensing it for the occupancy of its lands or other property. But in the case of projects in waters under jurisdiction of Congress, no pro- vision is made for a charge for the license priv- ilege, as such. State and "municipal" licensees are exempted from payment of annual charges if the power "is sold to the public without profit," or is used for State or "municipal" purposes. Other provisions merit notice. Details are specified respecting regulation of rates, services, and securities. At the end of the license period, which may not exceed 50 years, the United States has an option to take over the project at an acquisition price limited to "fair value" or "net investment," whichever is lower. If it does not take over, provision is made for issuance of a new license to the original licensee, or to a new li- censee. Right is also reserved to the United States or any State or "municipality" to take over the project at any time by condemnation proceedings upon payment of just compensation. In 1935, Congress made the 1920 legislation Part I of the Federal Power Act. Provisions were added for regulation of interstate electric utilities, extending to their interstate wholesale rates, se- curities, and accounting. Also included were procedural and administrative provisions for licensees and public utilities. It should be noted here that Congress in 1936 established the Rural Electrification Administra- tion to make loans "for the purpose of financing the construction and operation of generating plants, electric transmission and distribution lines or systems for furnishing of electric energy to per- sons in rural areas who are not receiving central station service." Some hydroelectric plants have been constructed with REA loans. Federal Development and Operation.-As the desirability of increased conservation and utiliza- tion of water resources and the necessity for greater flood protection has become more gener- ally recognized, Congress has extended legislative authorizations toward more and larger Federal multiple-use projects, including development of power-relying principally upon the Army En- gineers and the Department of the Interior. In connection with navigation and flood con- trol improvements, Congress has enacted a num- ber of laws concerning multiple uses, including particularly the development of power, such as the legislative provision for the "308 Reports." The situation is similar in the case of reclamation projects. Reference has earlier been made to these laws. The Federal Power Commission makes sur- veys of market areas within economic transmis- sion distance of proposed hydroelectric plants to determine their usable capacity, possible rate of development, and type of load for which they are suited. In the case of particular regions, such surveys are also made by Bonneville Power Ad- ministration, Bureau of Reclamation, Southeast- ern Power Administration, Southwestern Power Administration, and Tennessee Valley Authority. The National Security Resources Board also makes power market surveys. Authorizations for marketing of Federal power are confined almost entirely to wholesaling. Sur- plus power generated at reservoir projects under Army control must be so marketed by the Secre- tary of the Interior as to encourage widespread use at lowest possible rates consistent with sound business principles. He also controls marketing of power generated at reclamation projects. In the chapter on Reimbursement, detailed reference was made to the rate standard applicable to power generated at reclamation projects and to the fact that power may aid in repaying irrigation costs. Rate schedules for surplus power at reservoir projects under Army control become effective upon "confirmation and approval" by the Fed- eral Power Commission. Similar approval is required in the case of power generated at proj- ects governed by the Fort Peck and Bonneville Acts. But the Commission is given neither con- tinuing supervision nor authority to require changes. On the other hand, rates for power sold under Reclamation law or under the Tennes- 291 |