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Show 312 NONFEDERAL DEVELOPMENT AND OPERATION.-Until 1920, legislative authorizations were on a project-by-project basis and imposed no charge for the privilege granted. Grants were perpetual in terms but subject to termination. With the un- certainty of a grantee's tenure and investment, private develop- ment had moved slowly. In 1920, Congress passed the Federal Water Power Act regu- larizing federal permission for nonfederal development through a licensing system. The Act and its history reflect a purpose to encourage nonfederal development while safeguarding the public interest and making possible ultimate public ownership. The Federal Power Commission has broad authority to con- duct investigations and surveys, including its power-market studies. This authority and other provisions point to Com- mission consideration of multiple uses of projects and of com- prehensive development. The Commission's licensing authority extends to waters un- der the jurisdiction of Congress and generally to public lands. No license may be issued when in the Commission's judgment the development should be undertaken by the United States. Preference is accorded to states and "municipalities." 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 determined under a prescribed formula. Pro- vision is made for certain charges, but none for the license privilege, as such. In 1935, provisions were added for certain regulation of in- terstate electric utilities, including their interstate wholesale rates, securities, and accounting. Federal Development and Operation.-As the desirability of increased conservation and utilization of water resources and the necessity for greater flood protection have become more generally recognized, Congress has extended legislative author- izations toward more and larger federal multiple-use projects, including development of power-relying principally upon the Army Engineers and the Department of the Interior. In con- nection with navigation and flood-control improvements, a |