PART I

FEDERAL POWER COMMISSION

[For regulations codified under this heading, see Code of Federal Regulations, Title 18, Chapter I; the statement of organization of the Commission appears in part 3 of this chapter.]

CREATION AND AUTHORITY.-The Federal Power Commission is an independent regulatory agency operating under the Federal Power Act (16 U.S.C. 791a-825r), as amended, which was originally enacted as the Federal Water Power Act on June 10, 1920 (41 Stat. 1063), and subsequently amended by title II of the Public Utility Act of 1935 (49 Stat. 838), and the Natural Gas Act, enacted June 21, 1938 (52 Stat. 821-833, as amended; 15 U.S.C. 717-717w). Additional responsibilities relating to the statutory functions of the Commission have been assigned by other legislation and by Executive order. (See Federal Power Commission Laws and Hydroelectric Power Development Laws, U.S. Government Printing Office, 1966.)

PURPOSE.-The Federal Power Commission regulates the interstate aspects of the electric power and natural gas industries.

FUNCTIONS AND ACTIVITIES.-The Federal Power Commission issues permits and licenses for non-Federal hydroelectric power projects; regulates the rates and other aspects of interstate wholesale transactions in electric power and natural gas; and issues certificates for interstate gas sales and construction and operation of interstate pipeline facilities.

In addition, the FPC prescribes and enforces a uniform system of accounts for regulated electric utilities and natural gas companies, except for independent producers of natural gas.

To assure an abundant supply of electric energy throughout the United States with the greatest possible economy and with regard for the proper utilization and conservation of natural resources, the FPC has the power and directive to divide the Nation into regional districts for the voluntary interconnection and coordination of facilities for the generation, transmission, and sale of electric energy. It has the duty to promote and encourage interconnection within and between these districts.

The Commission also regulates the securities, mergers and consolidations, acquisitions, and accounts of electric utilities.

The Commission studies plans for dams proposed by other Federal agencies and makes recommendations concerning the installation of penstocks and similar facilities for the development of hydroelectric power.

The FPC is responsible for allocating the costs of certain Federal projects, and participates in the allocation of costs of other projects and determines headwater benefit charges against owners of non-Federal water power projects benefitted by upstream improvements built by the U.S. or other licensees.

The Commission has review functions of rates for the sale of electric power from certain Federal hydroelectric projects. In addition, it par

ticipates with other agencies in coordinating the development and utilization of the Nation's water and related land resources.

Under the Natural Gas Act, the Commission can direct pipeline companies to supply natural gas to local distributors. FPC authorization is required for the abandonment of facilities or the discontinuance of

service.

The FPC collects information on the entire electric power industry and on natural gas companies subject to its jurisdiction.

The FPC also regulates the exportation of electric energy and the exportation and importation of natural gas, and issues permits for border facilities for these transactions.

Source: United States Government Organization Manual 1970/71.

16 U.S.C., Chapter 12.-FEDERAL REGULATION AND DEVELOPMENT OF POWER

SUBCHAPTER I-REGULATION OF THE DEVELOPMENT OF WATER POWER AND RESOURCES

792. Federal Power Commission; creation; number; appointment; term; qualifications; vacancies; quorum; chairman; salary; place of holding sessions. 793. Same; officers and employees; appointment, duties, and salaries; detail of officers and employees from other departments; expenditures authorized. 793a. Repealed.

794.

Performance of work of commission generally.

795. Expenses of commission generally; subsistence allowance to employees on field work.

(b) Statements as to investment of licenses in projects; access to projects, maps and so forth.

(c) Cooperation with executive departments; information and aid
furnished commission.

(d) Publication of information, and so forth; reports to Congress.
(e) Issue of licenses for construction, and so forth, of dams, conduits,
reservoirs, and so forth.

(f) Preliminary permits; notice of application.

(g) Investigation of occupancy for developing power; orders.

797a. Congressional authorization for permits, licenses, leases, or authorizations for dams, conduits, reservoirs, etc., within national parks or monuments. 798. Purpose and scope of preliminary permits; transfer and cancellation. 799. License; duration, conditions, revocation, alteration, or surrender. 800. Preferences in issuance of preliminary permits or licenses; development of water resources by Government; taking over of projects by Government when licenses expire.

801. Transfer of license; obligations of transferee.

802. Information to accompany application for license.

803. Conditions of license generally.

(a) Modification of plans, etc., to secure adaptability of project.
(b) Alterations in project works.

(c) Maintenance and repair of project works; liability of licensee for
damages.

(d) Amortization reserves.

(e) Annual charges payable by licensees.

(f) Reimbursement by licensee of other licensees, and so forth.

(g) Conditions in discretion of commission.

(h) Monopolistic combinations prohibited.

(i) Waiver of conditions.

804. Project works affecting navigable waters; requirements insertable in

license.

805. Participation by Government in costs of locks, and so forth.

806. Time limit for construction of project works; extension of time; termination or revocation of licenses for delay.

807. Right of Government to take over project works.

(a) Compensation; condemnation by Federal or State Government. (b) Time of applications for new licenses; relicensing proceedings; Federal agency recommendations to take over by Government; stay of orders for new licenses; termination of stay; notice to Congress. 808. New licenses and renewals; compensation of old licensee; licenses for nonpower use; record-keeping.

809. Temporary use by Government of project works for national safety; compensation for use.

810.

Disposition of charges arising from licenses.

811. Operation of navigation facilities; rules and regulations; penalties. 812. Public-service licensee; regulations by State or by commission as to service, rates, charges, etc.

813. Power entering into interstate commerce; regulation of rates, charges, and so forth.

814. Exercise by licensee of power of eminent domain.

815.

816.

817.

818.

819.

820.

821.

Contract to furnish power extending beyond period of license; obligations of new licensee.

Preservation of rights vested prior to June 10, 1920.

Projects not affecting navigable waters; necessity for Federal license.
Public lands included in project; reservation of lands from entry.
Repealed.

Proceedings for revocation of license or to prevent violations of license.
State laws and water rights unaffected.

822. Reservation of right to alter or repeal chapter.

823. Repeal of inconsistent laws.

SUBCHAPTER II-REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE COMMERCE

824. Declaration of policy; application of subchapter; definitions.

824a. Interconnection and coordination of facilities; emergencies; transmission to foreign countries.

(a) Regional districts; establishment; notice to State commissions.
(b) Sale or exchange of energy; establishing physical connections.
(c) Temporary connection and exchange of facilities during emer-
gency.

(d) Temporary connection during emergency by persons without
jurisdiction of Commission.

(e) Transmission of electric energy to foreign country.

(f) Transmission or sale at wholesale of electric energy; regulation.

824b. Disposition of property; consolidations; purchase of securities. 824c. Issuance of securities; assumption of liabilities; filing duplicate reports with Securities and Exchange Commission.

824d. Rates and charges; schedules; suspension of new rates.

824e. Power of Commission to fix rates and charges; determination of cost of production or transmission.

824f. Ordering furnishing of adequate service.

824g. Ascertainment of cost of property and depreciation.

824h. Joint boards; composition; references to boards by Commission; cooperation with State commissions.

SUBCHAPTER III-LICENSEES AND PUBLIC UTILITIES; PROCEDURAL AND ADMINISTRATIVE PROVISIONS

825. Accounts, records and memoranda; duty to keep; examination by Commission; disclosure of information.

825a. Rates of depreciation; notice to State authorities before fixing. 825b. Requirements applicable to agencies of United States.