cost of construction of the original project and the price paid for water rights, rights-of-way, lands or interests in lands, in such detail and on such forms as the Commission may prescribe or approve for that purpose. Similar statements with respect to additions and betterments to the original project, as of December 31, shall be filed annually in the same manner, before April 1 of the following year, unless the Commission shall otherwise direct. Prescribed forms for stating the cost of the original project and of additions thereto and betterments thereof will be furnished by the Commission upon application by the licensee.*†

*88 4.1 to 4.7, inclusive, issued under the authority contained in secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C., Sup., 825 (b), 825g, 825h: interpret sec. 4, 49 Stat. 839; 16 U.S.C., Sup., 797.

In §§ 4.1 to 4.86, inclusive, the numbers correspond with the respective section numbers in Rules of practice and regulations, Federal Power Commission, June 1, 1938.

4.2 Substance. Each statement so filed shall give full, adequate, and complete information with respect to the cost of the original project or addition and betterment, as the case may be. Any statement which does not contain sufficient information will be returned to the licensee for such additional information as the Commission may deem necessary.**

4.3 Report on project cost. When a statement in satisfactory form shall have been filed with the Commission, its representatives will make an audit of the accounts, will examine and analyze the books, cost records, engineering reports, and other records supporting such statement or pertaining to the project, will inspect the project works, and will prepare a report setting forth their findings and recommendations with respect to the cost as claimed.*†

4.4 Service of report. Copies of such report will be served by registered mail upon said licensees, and copies will also be sent to the State public service commission, or if the State has no regulatory agency, to the governor of the State where such project is located, and to such other parties as the Commission shall prescribe, and the report will be made available for public inspection at the time of service upon the licensee.**

4.5 Time for filing protest. Thirty days after service thereof will be allowed to such licensee within which to file a protest to such reports. If no protest is filed within the time allowed, the Commission will issue such order as may be appropriate. If a protest is filed, a public hearing will be ordered in accordance with §§ 1.150-1.155.*† CROSS REFERENCE: For protests, see § 1.60.

4.6 Burden of proof. The burden of proof to sustain each item of the statement of claimed cost as filed shall be upon the licensee and only such items as are in the opinion of the Commission supported by satisfactory proof may be entered in the electric plant accounts of the licensee.**

4.7 Finding and final statement. Final action by the Commission will be in the form of a finding and order entered upon its minutes and served upon all parties to the proceeding. The licensee

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*For statutory and source citations, see note to § 4.1.

shall thereafter file a final statement, under oath, in duplicate, with two additional conformed copies thereof, showing actual legitimate cost revised in conformity with the order of the Commission, together with a statement showing that its records have been revised in conformity with such order.*+

DETERMINATION OF FAIR VALUE OF CONSTRUCTED PROJECTS, UNDER SECTION 23 (A) OF THE ACT

4.10 Valuation data. In every case arising under section 23 (a) of the Act requiring the determination of fair value of a project already constructed, the licensee shall, within 6 months after the date of issuance of license, file with the Commission an inventory and appraisal in detail, as of the effective date of the license, of all property subject thereto and to be valued. Such inventory and appraisal shall also show or shall be accompanied by a statement showing the actual legitimate, or if not known, the estimated original cost of the property, by prescribed structural and functional items and units; an estimate of the accrued depreciation segregated as to each separate major item or unit of property; and such other detail as the Commission may require in any particular case. An original, under oath, and four copies of the documents described above shall be submitted on forms to be prescribed or approved by the Commission prior to such submission.***

**88 4.10 to 4.14, inclusive, issued under the authority contained in secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C., Sup., 825 (b), 825g, 825h; interpret sec. 23 (a), 49 Stat. 846; 16 U.S.C., Sup., 816.

4.11 Reports. Representatives of the Commission will inspect the project works, engineering reports, and other records of the project, check the inventory and make an appraisal of the property and an audit of the books, records, and accounts of the licensee relating to the property to be valued, and will prepare a report of their findings with respect to the inventory, appraisal, original cost, accrued depreciation, and fair value of the property.***

4.12 Service of report. A copy of such report will be served by registered mail upon said licensee, and copies will also be sent to the State public service commission, or if the State has no regulatory agency, to the governor of the State where such project is located. The report will be made available for public inspection at the time of service upon the licensee.***

4.13 Time for filing protest. Thirty days after service thereof will be allowed to the licensee within which to file a protest to such report.***

CROSS REFERENCE: For protests, see § 1.60.

4.14 Hearing upon report. After the expiration of the time within which a protest may be filed, a public hearing will be ordered in accordance with §§ 1.150-1.155. The Commission after the conclusion of the hearing will make a finding of fair value, accompanied by an order which will be served upon the licensee and all parties to the proceeding. The licensee shall thereafter file a final

*For statutory citation, see note to § 4.1. **For statutory citation, see note to § 4.10.

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statement, under oath, in duplicate, with two additional conformed copies thereof, showing the fair value of the project revised in conformity with the order of the Commission and showing compliance with the provisions of such order with respect to depreciation, together with a statement showing that its records have been revised in conformity with such order.**

DETERMINATION OF COST OF CONSTRUCTED PROJECTS NOT SUBJECT TO SECTION 23 (A) OF THE ACT

4.20 Initial statement. In all cases where licenses are issued for projects already constructed, but which are not subject to the provisions of section 23 (a) of the Act (49 Stat. 846; 16 U.S.C., Sup., 816), the licensee shall, within 6 months after the date of issuance of license, file with the Commission an initial statement containing an inventory in detail of all property included under the license, as of the effective date of such license; showing the actual legitimate, or if not known, estimated original cost of the property by prescribed structural and functional items and units; setting forth an estimate of the accrued depreciation segregated as to each separate major item or unit of property; and supplying such other detail as the Commission may require in any particular case. An original, under oath, and four copies of such statement shall be submitted on forms prescribed or approved by the Commission prior to such submission.***

**88 4.20 to 4.86, inclusive, issued under the authority contained in secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C., Sup., 825 (b), 825g, 825h: interpret sec. 4, 49 Stat. 839; 16 U.S.C., Sup., 797.

4.21 Reports. Representatives of the Commission will inspect the project works, engineering reports, and other records of the project, check the inventory and estimated depreciation, make an audit of the books, records and accounts of the licensee relating to the property under license, and prepare a report of their findings with respect to the inventory, the original cost of the property and the estimated accrued depreciation thereon.***

4.22 Service of report. Copies of such report will be served by registered mail upon said licensees, and copies will also be sent to the State public service commission, or if the State has no regulatory agency, to the governor of the State where such project is located, and to such other parties as the Commission shall prescribe, and the report will be made available for public inspection at the time of service upon the licensee.***

4.23 Time for filing protest. Thirty days after service thereof will be allowed to such licensee within which to file a protest to such reports. If no protest is filed within the time allowed, the Commission will issue such order as may be appropriate. If a protest is filed, a public hearing will be ordered in accordance with §§ 1.1501.155.***

CROSS REFERENCE: For protests, see § 1.60.

4.24 Determination of cost. The Commission, after receipt of the reports, or after the conclusion of the hearing if one is held, will

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*For statutory citation, see note to § 4.10. **For statutory citation, see note to § 4.20.

determine the amounts to be included in the electric plant accounts of the licensee as the cost of the property and the accrued depreciation thereon.**

4.25 Finding and final statement. Final action by the Commission will be in the form of a finding and order entered upon its minutes and served upon all parties to the proceeding. The licensee shall thereafter file a final statement, under oath, in duplicate, with two additional conformed copies thereof, showing actual legitimate cost revised in conformity with the order of the Commission, and showing compliance with the provisions of such order with respect to depreciation, together with a statement showing that its records have been revised in conformity with such order.*t

APPLICATION FOR LICENSE; GENERAL PROVISIONS

4.30 Who may file. An application for license may be filed by a permittee in accordance with the provisions of his preliminary permit, or if no permit has been issued, by any citizen, association of citizens, corporation, State, or municipality desirous of obtaining a license pursuant to the Act.**

4.31 Manner of filing. Each application for license shall conform to the requirements of this section and §§ 1.80-1.85. When an application which is complete and in satisfactory form is received, it will be given a filing number, receipt thereof will be acknowledged to the applicant, and notices will be given in accordance with the requirements of section 4 of the Act (49 Stat. 839; 16 U.S.C., Sup. 797). Notice will also be given to the General Land Office as to the public lands affected, if any, so that withdrawals from entry may be recorded, unless such action has been taken previously in connection with a preliminary permit. When an application is received which is not complete in all respects, but which contains all information essential for the issuance of public notice and other initial action, it may be accepted for filing but the applicant will be required to furnish the missing data prior to further consideration. Failure to furnish such data within a reasonable time will constitute grounds for rejection of the application. In case any documents or exhibits required to be filed with an application are already on file with the Commission, in current form and substance, the same may be incorporated in said application by reference.**

4.32 Hearing on application. A hearing upon an application may be ordered by the Commission, in its discretion, either upon its own motion or upon the motion of any party in interest, and such proceeding shall be in accordance with the provisions of §§ 1.1501.155.**

4.33 Issuance and acceptance. When the Commission shall have authorized the issuance of a license, the same shall be forwarded to the applicant for acceptance. If not accepted within 60 days after receipt thereof, the application will be denied unless an extension of the period is granted by the Commission upon a showing of the necessity therefor.*+

*For statutory citation, see note to § 4.20.

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APPLICATION FOR LICENSE FOR PROPOSED MAJOR PROJECT OR MINOR PART THEREOF

4.40 Contents. Each application for license for a complete project of more than 100 horsepower installed capacity, to be constructed, or for a minor part of such project shall be verified, shall conform to § 200.2, and shall set forth in appropriate detail the following information in the order indicated. Unless otherwise specified, the application and all accompanying documents shall be submitted in quadruplicate.

(a) The exact name and address of the applicant. (If the applicant desires that correspondence concerning the application be directed to any person other than the one who signs the application, the Commission should be notified of that fact and of the name and address of such other person by a statement indicating that such other person is authorized to act as agent, and that service upon him will be deemed to be service upon the applicant.)

(b) If the applicant is a corporation, the State or Territory under the laws of which the applicant was organized, and if authorized to operate in more than one State, all pertinent facts should be stated. (c) The measure of control or ownership, if any, exercised by applicant in any other organization or over applicant by any other organization.

(d) The name of each State in which the applicant operates or proposes to operate electric power plants or facilities.

(e) A concise general description of the project and the principal project works, including dams, reservoirs, water conduits, power houses, substations, switch yards, and transmission lines, in such detail as may be applicable.

(f) The location of the project, the region of its location designated by adjacent cities and towns, the name of the stream on which the proposed project will be located, and a statement of the extent to which commerce is carried thereon.

(g) The lands of the United States which will be affected by the proposed project, and the estimated value of such lands, based upon the most profitable use for which suited.

(h) The proposed scheme of development; also an estimate of the power available for 90 percent of the time and the proposed installed capacities, both initial and ultimate, expressed in horsepower.

(i) The proposed use or market for the power to be developed, indicating whether applicant is a public utility or will become a public utility, and if so whether it is or will be subject to regulation by any State agency. In case the applicant can give no positive assurance that there is or will be a demand for the power upon completion of construction of the project, and that it will be used or distributed by the applicant or sold to others for use or distribution, a full and complete statement and explanation shall be made of the applicant's expectations in this regard and of the basis therefor.

(j) The location and capacity of all power plants or other electric facilities owned or operated by the applicant, the market sup

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