Compilation of energy-related legislation

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Title:
Compilation of energy-related legislation
Physical Description:
4 v. : ; 24 cm.
Language:
English
Creator:
United States
United States -- Congress. -- House. -- Committee on Interstate and Foreign Commerce
Publisher:
U.S. Govt. Print. Off.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Power resources -- Law and legislation -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
At head of title: 96th Congress, 1st session. Committee print. Committee print 96-IFC 26-96-IFC-29
General Note:
Aug. 1979.
Statement of Responsibility:
prepared by the staff, Committee on Interstate and Foreign Commerce, U.S. House of Representatives.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 026932793
oclc - 05990075
System ID:
AA00024904:00002

Full Text



7-9th Congress 1COXXITTEE PRN COMMITTEE 1st Session fPRINT 96-IFC 27



A


COMPILATION N OF ENERGY-RELATED LEGISLATION



OIT-ELECTRIC AND NUCLEAR ENERGY



PREPARED BY THE STAFF

j COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE
US. HOUSE OF REPRESENTATIVES

A








AUGUST 1979






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96th Congress }CO TTEE PRJ CoMmITTEE
1st Session f I1 PRINT 96-IFC 27






COMPILATION OF ENERGY-RELATED
LEGISLATION




VOLUME II-ELECTRIC AND NUCLEAR ENERGY




PREPARED BY THE STAFF

COMMITTEE ON INTERSTATE AND
FOREIGN COMMERCE
U.S. HOUSE OF REPRESENTATIVES










AUGUST 1979





U.S. GOVERNMENT PRINTING OFFICE 49-791 0 WASHINGTON : 1979

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402



























COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE
HARLEY 0. STAGGERS, West Virginia, Chairman
JOHN D. DINGELL, Michigan JAMES T. BROYHILL, North Carolina
LIONEL VAN DEERLIN, California SAMUEL L. DEVINE, Ohio JOHN M. MURPHY, New York TIM LEE CARTER, Kentucky
DAVID E. SATTERFIELD III, Virginia CLARENCE J. BROWN, Ohio BOB ECKHARDT, Texas JAMES M. COLLINS, Texas
RICHARDSON PREYER, North Carolina NORMAN F. LENT, New York JAMES H. SCHEUER, New York EDWARD R. MADIGAN, Illinois
RICHARD L. OTTINGER, New York CARLOS J. MOORHEAD, California HENRY A. WAXMAN, California MATTHEW J. RINALDO, New Jersey
TIMOTHY E. WIRTH, Colorado DAVE STOCKMAN, Michigan
PHILIP R. SHARP, Indiana MARC L. MARKS, Pennsylvania
JAMES J. FLORIO, New Jersey TOM CORCORAN, Illinois
ANTHONY TOBY MOFFETT, Connecticut GARY A. LEE, New York JIM SANTINI, Nevada TOM LOEFFLER, Texas
ANDREW MAGUIRE, New Jersey WILLIAM E. DANNEMEYER, California
MARTY RUSSO, Illinois
EDWARD J. MARKEY, Massachusetts THOMAS A. LUKEN, Ohio
DOUG WALGREN, Pennsylvania ALBERT GORE, JR., Tennessee BARBARA A. MIKULSKI, Maryland RONALD M. MOTTL, Ohio
PHIL GRAMM, Texas
AL SWIFT, Washington
MICKEY LELAND, Texas
RICHARD C. SHELBY, Alabama KENNETH J. PAINTER, Acting Clerk ELEANOR A. DINKINS, Assistant Clerk LEwIs E. BERRY, Minority Counsel

(II)













CONTENTS



VOLUME I-OIL, GAS, AND COAL

PART A-OIL
Page
Emergency Petroleum Allocation Act of 1973 5
Econom ic Stabilization Act of 1970 (certain provisions) ................. 27
Trans-Alaska Oil Pipeline-37 Petroleum Marketing Practices Act -----------------------------------59
Crude O, Transportation Systems (title V of Public Law 95-617) ------- 79
PART B-GAS
Natural Gas Act_-91 Natural Gas Pipeline Safety Act of 1968-119 Alaska Natural Gs Transportation Act of 1976 ------------------------135
Natural Gs Policy Act of 1978-151 Miscellaneous gas provisions (see. 605-608 of Public Law 95-617) --------215
PART C-COAL
Powerplant and Industrial Fuel Use Act of 1978_ 226

VOLUME II-ELECTRIC AND NUCLEAR
PART A-ELECTRIC
Federal Power Act----5 Public Utility Holding Company Act of 1935- --77 Public Utility Regulatory Policies Act of 1978 ------------------- 119
PART B-NUCLEAR
Atomic Energy Act of 1954_-161 Uranium Radiation Exposure Remedial Action (Public Law 92-314)----- -263 Uranium Mill Tailings Control Act of 1978 ----------------------------267
VOLUME III-ENERGY CONSERVATION,
ORGANIZATION, AND RELATED MATTERS
PART A-CONSERVATION AND RELATED MATTERS
Energy Policy and Conservation Act--5 Energy Conservation and Production Act- ----------------------------159
National Energy Conservation Policy Act-207 National Energy Extension Service Act--------------------------------279
Energy Supply and Environmental Coordination Act of 1974 295

PART B-ADMINISTRATION AND ORGANIZATION
Federal Energy Administration Act of 1974 ---------------------------321
Energy Reorganization Act of 1974--351 Department of Energy Organization Act- 381
(III)






IV

VOLUME IV-SELECTED APPROPRIATION
AUTHORIZATIONS AND OTHER LEGISLATION

PART A-SELECTED ENERGY APPROPRIATION AUTHORIZATIONS
Page
Federal Energy Administration Authorization Act of 1977 --------------- 5
Nuclear Regulatory Commission Authorization of Appropriations for Fiscal
Year 1979--13
PART B-SELECTED ENERGY-RELATED LEGISLATION
Federal Nonnuclear Energy Research and Development Act of 1974 25
Energy Tax Act of 1978 -------------------------------------------65
Outer Continental Shelf Lands Act--99 APPENDIX
National Environmental Policy Act of 1969-149 Title 5-Administrative Procedure--- 157
Section 1905 of title 18, United States Code--190




























PART A-ELECTRIC





(1)




























FEDERAL POWER ACT



















Digitized by the Internet Archive
in 2013













http://archive.org/detaiIs/coofeneOOunit













FEDERAL POWER ACT



PART I

Be it enacted by the Senate and House of Repre8entative8 of the United States of America in Congress assembled, That a commission is hereby created and established, to be known as the Federal Power Cbmmis- Federal Power sion (hereinafter referred to as the "commission") which Commission.
Creation and
shall be composed of five commissioners who shall be ap- composition of. pointed by the President, by and with the advice and consent of the Senate, one of whom shall be designated by the President as chairman and shall be the principal executive officer of the commission: Provided, That after Chairman of, the expiration of the original term of the commissioner appointed by President.
so designated as chairman by the President, chairmen Proviso.
Election of sucshall be elected by the commission itself, each chairman ceeding chairmen
when so elected to act as such until the expiration of his Ten u*re. term of office. [16 U.S.C. 792] Terms of comThe commissioners first appointed under this section, missioners. as amended, shall continue in office for terms of one, two, three, four, and five years, respectively, from the date this section, as amended, takes effect, the term of each to be designated by the President at the time of nomination. Their successors shall be appointed each Of successors. for a term of five years from the date of the expiration of the term for which his predecessor was appointed and until his successor is appointed and has qualified, except that he shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office, and except that any person appointed fill a vacancy occurring Exceptions. prior to the expiration of the term for which his
(5)






6


predecessor was appointed shall be appointed only for Restriction of the imexpired terni. -Not more than three of the comappointment
because of po- missioners shall be appointed from the same political
litical, etc.,
affiliations. party. No person in the employ of or holding any
official relation to any licensee or to any person, firm, association, or corporation engaged in the generation, transmission, distribution, or sale of power, or owning stock or bonds thereof, or who is in any manner Other business, pecuniarily interested therein, shall enter upon the
etc., by commissioners prohib- duties of or hold the office of commissioner. Said ited. commissioners shall not engage in any other business,
Right to f unc- vocation, or employment. No vacancy in the commission
tion if vacancy
exists. shall impair the right of the remaining commissioners
to exercise all the powers of the commission. Three Quorum and members of the commission shall constitute a quorum
seal.
for the transaction of business, and the commission shall have an official seal of which judicial notice shall Election of vice be taken. The commission shall annually elect a vice
chairman
chairman to act in case of the absence or disability of the chairman or in case of a vacancy in the office of
chairman. [16 U.S.C. 792]
Compensation, Each commissioner shall receive an annual salary of
traveling, etc.,
expenses. $10,000, together with necessary traveling and subsistence expenses, or per them allowance in lieu thereof, within the limitations prescribed by law, while away f roin the seat of government upon official business. [16
U.S.C. 792]
Principal office The principal office of the commission shall be in In District for
general the District of Columbia where its general sessions
sessions. 9
shall be held; but whenever the convenience of the public or of the parties may be promoted or delay or expense prevented thereby, the commission may hold Special special session in an part of the United States. [16
sessions. y
U.S.C. 7921
SEC. 2. The ccninnission shall have authority to apOffice point, prescribe the duties, and fix the salaries of.
personnel.
Ap ointment to appoint, prescribe the duties, and fix the salaries of
salaries. a secretary, a chief engineer, a general counsel, a solicitor, and a chief accountant; and may, subject to the civil service laws, appoint such other officers and employees as are necessary in the execution of its functions and fix their salaries in accordance with the Classification Act of 1949. The commission may request the






7


President to detail an officer or officers f rom the Corps of "offr from other
Engineers, or other branches of the United States Army, departments. to serve the commission as engineer officer or officers, or in any other capacity,"in field work outside the seat of government, their duties to be prescribed by the commission; and such detail is hereby authorized. The President may also, at the request of the commission, detail, assign, or transfer to the commission engineers in or under the Departments of the Interior or Agriculture for field work outside the seat of government under the direction of the commission. [16 U.S.C. 793]
The Commission may make such expenditures (including expenditures for rent and personal services at the Contingent expen ses authorseat of government and elsewhere, for law books, ized.
periodicals, and books of reference, and for printing and binding) as are -necessary to execute its functions. Expenditures by the commission shall be allowed and paid upon the presentation of itemized vouchers therefor, approved by the chairman of the Commission or by such other member or officer as may be authorized by the Commission for that purpose subject to applicable regulations under the Federal Property and Administrative Services Act of 1949, as amended. [16 U.S.C. Ti93]
SEC. -3. [As amended August 26, 1935.] The words
defined in this section shall have the following mean- Meaning of terms do
ings for purposes of this Act, to wit:usd
(1) "public lands" means such lands and interest
in lands owned by the United States as are subject to "Public lands." private appropriation and disposal under public land laws. It shall not include "reservations," as hereinafter defined: [16 U.S.C. 796 (1)]
(2) "reservations" means national forest, tribal lands "Reservations." embraced within Indian reservations, military reservations, and other lands and interests in lands owned by the U "nited States, and withdrawn, reserved, or withheld from private appropriation and disposal under the public land laws; also lands and interests in lands acquired and held for any public purposes; but shall not include national monuments or national parks; [16 U.S.C. 796 (2) ]
(3) corporationo" means any corporation, joint-stock "Corporation.' company, partnership, association, business trust, organized group of persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing. It shall not include municipalitiese" as hereinafter defined; [16 U.S.C. 796 (3) ]






8

"Person." (4) "person" means an individual or a corporation;
16 U.S.C. 796 (4) ]
"Licensee." (5) "licensee" means any person, State, or municipality licensed under the provisions of section 4 of this Act, and any assignee or successor in interest
thereof; [ 16 U.S.C. 796 (5) ]
"State." (6) "State" means a State admitted to the Union, the
District of Columbia, and any organized Territory of
the United States; [16 U.S.C. 796 (6)
"Municipality." (7) municipality" means a city, county, irrigation
district, drainage district, or other political subdivision or agency of a State competent under the laws thereof to carry on the business of developing, transmitting,
utilizing, or distributing power; [ 16 U. S. C. 796 (7)
"Navigable (8) "navigable waters" means those parts of streams
waters."
or other bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and arAong the several States, and which either in their natural or improved condition notwithstanding interruptions between the navigable parts of such streams or waters by falls, shallows, or rapids compelling land carriage, are used or suitable for use for the transportation of persons or property in interstate or foreign commerce, including therein all such interrupting falls, shallows, or rapids, together with such other parts of streams as shall have been authorized by Congress for improvement by the United States or shall have been recommended to Congress for such improvement after investigation under its authority;
116 U.S.C. 796 (8) ]
"Municipal pur-: (9) "municipal purposes" means and includes all
poses."
purposes within municipal powers as defined by the constitution or laws of the State or by the charter of
the municipality; 16 U.S.C. 796 (9)
"Government
dax." (10) "Government dam" means a dam or other work
constructed or owned by the United States for Government purposes with or without contribution from
others; [ 16 U.S.C. 796 (10) ]
"Project." (11) "project" means complete unit of improvement
or development, consisting o f a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are a part of said unit, and all storage, diverting, or forebay reservoirs directly connected. therewith, the primary lin6 or lines transmitting power therefrom to the point of junction with the distribution system or with the






9

interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit or any part thereof, and all water-rights, rights-of-way, ditches, dams, reservoirs, lands, or interest in lands the use and occupancy of which are necessary or appropriate in the maintenance and
operation of such unit; [16 U.S.C. 796(11)1
(12) "project works" means the physical structures "Project of a project; [16 U.S.C. 796(12) ] works."
(13) "net investment" in a project means the actual "Net 1nvestlegitimate original cost thereof as defined and interpreted in the "classification of investment in road and equipment of steam roads, issue of 1914, Interstate Commerce Commission," plus similar cost of additions thereto and betterments thereof, minus the sum of the following items properly allocated thereto, if and to the extent that such items lave been accumulated during the period of the license from earnings in excess of a fair return on such investment: (a) Unappropriated surplus, (b) aggregate credit balances of current depreciation accounts, and (c) aggregate appropriations of surplus or income held in amortization. sinking fund, or similar reserves, or expended for additions or betterments or used for the purposes for which such reserves were created. The term "cost" shall include, in- "cost." sofar as applicable, the elements thereof prescribed in said classification, but shall not include expenditures Items exfrom funds obtained through donations by States. munic- clouded. ipalities, individuals, or others, and said classification of investment of the Interstate Commerce Commission shall insofar as applicable be published and promulgated as a part of the rules and regulations of the Commission: [16 U.S.C. 796 (13)1
(14) "Commission" and "Comissioner"' means the "Commission." Federal Power Commission, and a member thereof. s
respectively; [16 U.S.C. 796(14)] sioner."
(15) "State commission" means the regulatory body "State comof the State or municipality having jurisdiction to regu- mission.' late rates and charges for the sale of electric energy to consumers within the State or municipality; [16 U.S.C. 796(15)]






10


"Security." (16) "security" means any note, stock, treasury stock,
bond, debenture, oi- other evidence of interest in or indebtedness of a corporation subject. to the provisions of
tlis Act; [16 U.S.C. 796(16)]
(17) (A) "small power production facility" means a
facility which(i) produces electric energy solely by the use, as
a priniary energy source, of biomass, waste, renewable resources, or any combination thereof; and
(ii) has a power production capacity which, together with any other facilities located at the same site (as determined by the Commission), is not
(greater than 80 megawatts;
(B) "primary energy source" means the fuel or fuels
used for the generation of electric energy, except that such termin does not. include, as determined under rules prescribed by the Commission, in consultation with the
Secretary of Energy(i) the minimum amounts of the fuel required
for ignition, startup, testing, flame stabilization,
and control uses, and
(ii) the minimum amounts of fuel required to alleviate or prevent(I) unanticipated equipment outages, and
(II) emergencies, directly affecting the public health, safety, or welfare, which would result from electric power outages;
(C) "qualifying small power production facility"
means a small power production facility(i) which the Commission determines, by rule, meets such requirements (including requirements respecting fuel use, fuel efficiency, and reliability) as
the Commission may, by rule, prescribe; and
(ii) which is owned by a person not. primarily engaged in the generation or sale of electric power, (other than electric power solely from cogeneration
facilities or small power production facilities) ;
(D) "qualifying small power producer" means the
owner or operator of a qualifying small power production facility;
(18) (A) "cogeneration facility" means a facility
which produces(i) electric energy, and
(ii) steam or forms of useful energy (such as heat) which are used for industrial, commercial,
heatini", or cooling purposes;






11


(B) "qualifying cogeneration facility" means a cogeneration facility which(i) the commissionn deternines, by rule. meets such requirements (including requirements respecting iiiniinlum size, fuel use. and fuel efficiency) as the
omissionn may., by rule, prescribe : and
(ii) is owned by a person not primarily engaged in the generation or sale of electric power (other than electric power solely from cogeneration facilities or
simalI power production facilities) :
(C) "qualifying cogenerator" means the owner or
operator of a qualifying cogeneration facility;
(19) "Federal power marketing agency" means any
agency or instrumentality of the United States (other than the Tennessee Valley Authority) which sells electric energy;
(20) "evidentiary hearings" and "evidentiary proceeding" mean a proceeding conducted as provided in sections 554. 556, and 557 of title 5, United States Code;
(21) "State regulatory authority" has the same meaning as the term "State commission", except that in the case of an electric utility with respect to which the Tennessee Valley Authority has ratemaking authority (as defined in section 3 of the Public Utility Regulatory Policies Act of 1978), such term means the Tennessee
Valley Authority:
(22) "electric utility" means any person or State
agency which sells electric energy; such term includes the Tennessee Valley Authority, but does not include any
Federal power marketing agency.
Powers of SEc. 4. The Commission is hereby authorized and
Commission. empowered(a) To make investigations and to collect and record
data concerning the utilization of the water resources To investigate, of any region to be developed, the water-power industry etc., water resources, power and its relation to other industries and to interstate or
industry, etc.
foreign commerce, and concerning the location, capacity,

Use of Govern- development costs, and relation to markets of power ments dams, sites, and whether the power from Government dams can etc. be advantageously used by the United States for its
public purposes, and what is a fair value of such power, to the extent the Commission may deem necessary or useful for the purposes of this Act. [16 U.S.C. 797(a)]






12


(b) To determine the actual legitimate original Cost Detailed stateof and the net investment in a licensed project, and ofconstruction, to aid the Commission in such determinations, each nished by licensee 7 shall, upon oath, within a reasonable period of time to be fixed by the Commission, after the construction of the original project or any addition thereto or betterment thereof, file with the Commission in such detail as the Commission may require, a statement in duplicate showing the actual legitimate original cost of construction of such project, addition, or betterment, and of the price paid for water rights, rights-of-way, lands, or interest in lands. The licensee shall grant to the Commission or to its duly authorizedFree access to
agent or agents, at all reasonable times, free access to project, records such project, addition, or. betterment, and to all mapsI etc. profiles, contracts, reports of engineers, accounts, books, records, and all other papers and documents relating thereto. The statement,' of actual legitimate original cost of said project, and revisions thereof as determined by the Commission, shall be filed with the Secretary of the Treasury. [16 U.S.C. 797 (b)] To co~pet
(c) To cooperate with the executive departments with Feral or and other agencies of State or National Governments State agencies in such investigations;- and for such purpose the -several tion". departments and agencies of the National Government are authorized and directed upon the request of the Commission to furnish such records, papers, and information in their possession as may be requested by the Commission, and temporarily to detail to the Commission such officers or experts as may be necessary in such investigations. [ 16 U.S.C. 797 (c) ]
(d) To make public from time to time the informa- Publish Infortion secured hereunder and to provide for the publication of its reports and investigations in such form and manner as may be best adapted for public information and use. The Commission, on or before the 3d day of January of each year, shall submit to Congress Report to Confor the fiscal year preceding a classified report showing the permits and licenses issued under this Part, and in each case the parties thereto, the terms prescribed,






13


and the moneys received if any, on account thereof Such report shall contain the names and show the compensation of the persons employed by the Commission. [ 16 U. S.C. 797 (d) I
Issue licenses (e) To issue licenses to citizens of the United States,
for Improving
navigation, de- or to any association of such citizens, or to any corporaveloping water
power, etc. tion organized under the laws of the United States
or any State thereof, or to any State or municipality for the purpose of constructing, operating, and maintaining dams, water conduits, reservoirs, power houses, transmission lines, or other project works necessary or convenient for the development and improvement of navigation and for the development, transmission, and utilization of power across, along, from or in any of the streams or other bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several States, or upon any part of the public lands and reservations of the United States (including the Territories), or for the purpose of utilizing the surplus water or water power from iany Government dam, except as Proviso. herein provided: Provided, That licenses shall be issued
within any reservation only after a finding by the Commission that the license will not interfere or be inconsistent with the purpose for which such reservation was created or acquired, and shall be subject to and contain such conditions as the Secretary of the departRestriction on ment under whose supervision such reservation falls
-we In reservations. shall deem necessary for the adequate protection -and
Proviso. utilization of such reservations Provided further That
no license affecting the navigable capacity of any navigable waters of the United States shall be issued until the plans of the dam or other structures affect$The act of Mar. 3, 1921 (41 Stat. 1353), reads as follows "Be it acted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter no permit, license, lease, or authorization for dams, conduits, reservoirs, power houses, transmission lines or other works for storage or carriage of water, or for the development, transmission, or utilization of power within the limits as now constituted of any national park or national monument shall be granted or made without specific authority of Congress, and so much of the Act of Congress approved June 10, 1920, entitled 'An Act to create a Federal Power Commission ; to provide for the Improvement of navigation; the development of water power; the use of the public lands In relation thereto; and to repeal section 18 of the River and Harbor Appropriation Act, approved August 8, 1917, and for other purposes', approved June 10, 1920, as authorizes licensing such uses of existing national parks and national monuments by the Federal Power Commission is hereby repealed."



49-791 0 79 2






14


ing navigation have been approved by the Chief of Engineers and the Secretary of the Army. Whenever Approval of dams, etc., on
the contemplated improvement is, in the judgment of navigable waters.
the Commission, desirable and justified in the public interest for the purpose of improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, a finding to that effect shall be made by the Commission and shall become a part of the records of the Commission: Provided further, Proviso. That in case the Commission shall find that any Government dam may be advantageously used by the United Use of Government dame for
States for public purposes in addition to navigation public pur7 poses.
no license therefor shall be issued until two years after it shall have reported to Congress the facts and conditions relating thereto, except that this provision shall not apply to any Government daxfi constructed prior to June 10, 1920*: And provided further, That upon Proviso. the filing of any application for a license which has not been preceded by a preliminary permit under subsection (f) of this section, notice shall be given and Notice of appitcation without
published as required by the proviso of said subsection. preliminary permit.
16 U. S.C. 797 (e)
Issue preliml(f) To issue preliminary permits for the purpose narl permits to of enabling applicants for a license hereunder to secure apV ants. the data and to perform the acts required by section 9 hereof: Provided, however, That upon the filing of Proviso. any application for a preliminary permit by any person, association, or corporation the Commission, before granting such application, shall at once give notice of such application in writing to any State or Notice thereof to State etc.
municipality likely to be. interested in or affected by such application; and shall also publish notice of such Publish notice. application once each week for four weeks in a daily or weekly newspaper published in the county or counties in which the project or any part thereof or the lands- To Investigate affected thereby are situated. [16 U.S.C. 797(f)] occupancy, etc.,
of lands,
on its own motion to order an investigation streams. etc.,
(g) up under Jurisof any occupancy of, or evidenced intention to occupy, diction of Congress ; to Issue
for the purpose of developing electric power, public ordering public Interest.






15


lands, reservations, or streams or other bodies of water over which Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several States by any person, corporation, state or municipality and to issue such order as it may find appropriate, expedient, and in the. public interest to conserve and utilize the navigation and water-power
resources of the region. [16 U.S.C. 797 (g) ]
Preliminary SEC. 5. Each preliminary permit issued under this Part permit to mainta n priority; shall be for the sole purpose of maintaining p)riority of term ; conditions. application for a license under the terms of this Act for
such period or periods, not exceeding a total of three years, as in the discretion of the Commission may be necessary for making examinations and surveys, for preparing maps, plans, specifications, and estimates, and for making financial arrangements. Each such permit shall set forth the conditions under which priority shall be Preiminar maintained. Such permits shall not be transferable, and f aNsfer a bIe; may be canceled by order of the Commission upon f allure conditions of
cancellation by of permittees to comply with the conditions thereof or Commission ;
hearing, for other good cause shown after notice and opportunity
for hearing. [16 U.S.C. 798]
Term of SEC. 6. Licenses under this Part shall be issued for a
license;
acc~tance of period not ecdigftyyears. Each such license shall con itions Iecelioff
be conditioned upon acceptance by the licensee of all the terms and conditions of this Act and such further conditions, if any, as the Commission shall prescribe in conformnity with this Act, which said terms and conditions and the acceptance thereof shall be expressed in said liRevocation and cense. Licenses may be revoked only for the reasons and in alteration ;
conditions; the manner prescribed under the provisions of this Act, notice.
and may be altered or surrendered only upon mutual agreement between the licensee and the Commission Copies of after thirty days' public notice. Copies of all licenses Ing for paymentisududrteothsPtan of charges to isududrteprovisions ofti atadcalling
be depositedpamnchreupoie with General for the pyetof annual cagsshall be deoie Accounting wihten Office. wihteGeneral Accounting Office, compliance
with section 3743, Revised Statutes, as amended
(U.S.C., title 41, sec. 20). [16 U.S.C. 799]






16

SEC. T. (a) In issuing preliminary permits hereunder or Preference to States and
licenses where no preliminary permit has been issued inuniciptaitie% if plans equally
and in issuing licenses to new licensees under section 15; well adapted. hereof the Commission shall give preference to applications therefor by States and municipalities, provided the plans for the same are deemed by the Commission equally well adapted, or shall within a reasonable time to be fixed by the Commission be made equally. well adapted, to conserve and utilize in the public int rest the water resources of the region and as between other applicants, the Commission may give preference to the applicant the plans of which it finds and determines are Preference to plans beat
best adapted to develop, conserve, and utilize in the adapted among other applipublic interest the water resources of the region, if it cants. be satisfied as to the ability of the applicant to carry out such plans. [ 16 U.S.C. 800 (a) ]
(b) Whenever, in the judgment of the Commission,,
the development of any water resources for public pur Development
by united
poses should be undertaken by the United States itself, States. the Commission shall not approve any application for any project affecting such'development, but shall cause to be made such examinations surveys reports, plans, InvestIgatIon I I and report.
and estimates of the cost of the proposed development as it may find necessary, and shall submit its findings to Congress with such recommendations as it may find appropriate concerning such development. [16 U.S.C. 800 (b) ]
(c) Whenever, after notice and opportunity for hearing, the Commission determines that the United States Federal Power
should exercise its right upon or after the expiration of Commission. an license to take over any project or projects for Licensing
y authority.
public purposes, the Commission shall not issue a new license to the original licensee or to a new licensee but shall submit its recommendation to Congress together with such information as it may consider appropriate. [16 U.S.C. 800 (e) ]
SEC. 8. That no voluntary transfer of any license,
Val Of
or of the rights thereunder granted, shall be made with- = Isston of
out the written approval of the commission; and any transfer; conditions of
successor or assign of the rights of such licensee, whether transfer, Judicial sale, etc.
by voluntary transfer, judicial sale, foreclosure sale, successor subject to all
or otherwise, shall be subject to all the conditions of conditions of license.






17


the license under which such rights are held by such licensee and also subject to all the provisions and conditions of this Act to the same extent as though such successor as assign were the original licensee hereunder: :'rovIso. Provided, That a mortgage or trust deed or judicial
sales made thereunder or under tax sales shall not be ,ZeeIn P,,ons to
ntary deemed voluntary transfers within the meaning of this
transfer. section. [16 U.S.C. 801] Application re- 8Ec. 9. That each applicant for a license hereunder quirements.
shall submit to the commissionSubmission of (a) Such maps, plans, specifications, and estimates plans, etc.
of cost 'Icxs may be required for a full understanding of the proposed project. Such maps, plans, and specifications when approved by the commission shall be made a part of the license; and thereafter no change shall be made in said maps, plans, or specifications until such changes shall have been approved and made a part of
such license by the Commission. [16 U.S.C. 802 (a)]
(b) Satisfactory evidence that the applicant has WIr
Co nan" complied with the requirements of the laws of the State
State
laws. or States within which the proposed project is to be
located with respect to bed and banks and to the appropriation, diversion, and use of water for power purposes and with respect to the right to engage in the business of developing, transmitting, and distributing power, and in any other business necessary to effect the purposes of
a license under this Act. [ 16 U.S.C. 802 (b) Additional Information. (c) Such additional information as the commission
may require. [16 U.S.C. 802(c)]
Conditions of SEC. 10. All licenses issued under this Part, shall be on licenses.
the, following conditions:
Project adapted (a) That the project adopted, including the maps, to utilize navigation, water plans, and specifications shall be such as in the power, etc. I
judgment of the Commission will be best adapted to a comprehensive plan for improving or developing a waterway or waterways for the use or benefit of interstate or foreign commerce, for the improvement and utilization of waterpower development, and for other beneficial public uses, including recreational purposes; and if necessary in order to secure such plan the Commission shall have authority to require the modification






18


of any project and of the plans and specifications of the 1)roject works before approval. [16 U.S.C. 803 (a)]I
(b) That except when emergency shall require for Retrition on the protection of navigation, life, health, or property, no substantial alteration or addition not in conformity with the approved plans shall be made to any dam or other project works constructed hereunder of an installed capacity in excess of two thousand horsepower without the prior approval of the Commission; and any emergency alteration or addition so made shall thereafter be subject to such modification and change as the Commission mlay direct. [16 1I1.S.C. 803(b)]
(c) That the licensee shall maintain the project works to be works tainI
in a condition of repair adequate for the purposes of efetieopranavigation and for the efficient operation of said works tio,, etc. in the development and transmission of power, shall make all necessary renewals and replaceffients, shall establish and maintain adequate depreciation reserves for such purposes, shall so maintain and operate said works as not to impair navigation, and shall conform to such rules and regulations as the Commission may from time to time prescribe for the protection of life, health, and property. Each licensee hereunder shall be liable for all damages occasioned to the property of Liability for of da to
others by the construction, maintenance, or operation ofPr~e of the project works or of the works appurtenant orotes accessory thereto, constructed under the license, and in no event shall the United States be liable theref or. [16 U_.S.C. 803 (c)]
(d) That after the first twenty ye- .rs-of operation, out of surplus earned thereafter, if &-r y, accumulated in excess of a specified reasonable rat,,- of return upon the net investment of a licensee in any project or projects under license, the licensee shall establish and maintain amortization reserves, which reserves shall, in the discre- Amortization reserves to be
tion of the Commission, be held until the termination established. the license or be applied from time to time in reduction Disposition of. of the net investment. Such specified rate of -return and the proportion of such surplus earnings to be paid Rate of return to be specified
into and held in such reserves shall be set forth in the In icense.






19


-license. For any new license issued under section 15, the amortization reserves under this subsection shall be maintained on and after the effective date of such new
license. [16 U.S.C. 803 (d)
(e) That the licensee shall pay to the United States Annual reasonable annual charges in an amount to, be I fixed
charges.
Basis of. by the Commission for the purpose of reimbursing the
United States for the costs of the administration of this Part; for recompensing it for the use, occupancy, and enjoyment of its lands or other property; and for the expropriation to the Government of excessive profits until the respective States shall make provision for preventing excessive profits or for the expropriation thereof to themselves, or until the period of amortization as herein provided is reached, and in fixing such charges the Commission shall seek to avoid increasing Price to con- the price to the consumers of power by such charges, sumers. I
and any such charges may be adjusted from time to
0
time by the Commission as conditions may require: Proviso. Provided, That when licenses are issued involving the
use of Government dams or other structures owned by the United States or tribal lands embraced within Use of Govern- Indian reservations the Commission shall subject to the ment strue- I
tures or Indian approval of the Secretary of the Interior in the case tribal lands.
of such dams or structures in reclamation projects and, in the case of such trial lands, subject to the approval of the Indian tribe having jurisdiction of such lands as provided in section 16 of the Act of June 18, 1934 (48 Stat. 984), fix a reasonable annual charge for the use thereof, and such charges may with like approval be readjusted by the -Commission at the end of twenty years after the project is available, for service and at periods of not less than ten years, thereafter upon notice Proviso.
and opportunity for hearing: Provided further, That licenses for the development, transmission, or distribution of power by States or municipalities shall be issued and enjoyed without charge to the extent such power is sold to the public without profit or is used by such State or municipality for State or municipal purposes, except that as to projects constructed or to be con-






20


structed by. States or municipalities primarily designed No charge tof to provide or improve navigation, licenses therefor shallpoefunsd be issued without charge; and that licenses for the etc. development, transmission, or distribution of power for domestic, mining, or other beneficial use in projects of 'sal projects. not more than two thousand -horsepower installed capacity may be issued without chai'ges, except on tribal lands within Indian reservations; but in no case shall, Exceptions.
Nfreuse o
a license be issued free of charge for the development Govrnment and utilization of power created by any Government dam and that the amount charged therefor in any license shall be such as determined by the Commission. In the event an overpayment of any charge due under this section shall be made by a licensee, the Commission is authorized to allow a credit for such overpayment when charges are due for any subsequent period. [16 U.S.C. 803 (e)]et
(f) That whenever any licensee hereunder is directly 1pceom' os
beneite bythe construction work of another licensee, fie by Work
benefied byof another. a permittee, or of the United States of a storage reservoir or other headwater improvement, the Commission shall require as* a condition of the license that the licensee so benefited shall reimburse the owner of such reservoir or other improvements for such part of the annual charges for interest, maintenance, and depreciation thereon as the Commission may deem equitable. The proportion of such charges to be paid by any licensee shall be determined by the Commission. The licensees or permittees affected shall pay to the United States the cost of making such determination as fixedby the Commission. [16 U.S.C. 803 (f)
Whenever such reservoir or other improvement is Formbnef
constructed by the United States the Commission shall men t construeassess similar charges against any licensee directly benefited thereby, and any amount so assessed shall be paid into the Treasury of the United States, to be reserved and appropriated as a part of the special fund for headwater improvements as provided in- section 17' hereof. [16 U.S.C. 803 (f)]
Whenever any power project not under license i se prject. ni benefited by the construction work of a licensee or






21


permittee, the United States or any agency thereof, the Commission, after notice to the owner or owners of such unlicensed project, shall determine and fix a reasonable and equitable annual charge to be paid to the licensee or permittee on account of such benefits, or to the United States if it be the owner of such headwater improvement. [16 U.S.C. 803 (f) ]
Other condi- (g) Such other conditions not inconsistent with the tions.
provisions of this Act as the Commission may require.
[16 U.S.C. 803 (g) ]
Cintin of) That combinations, agreements, arrangements, or trade, etc., In understandings, express or implied, to limit the output electric service
output. of electrical energy, to restrain trade, or to fix, maintain,
or increase prices for electrical energy or service are
hereby prohibited. [ 16 U.S.C. 803 (h) ]
Waiving condi- (i) In issuing licenses for a minor pr'only of a tdons for minor pr
projects, etc., complete project, or for a copeeproject of not more lands excepted. than two thousand horsepower installed capacity,
the Commission may in its discretion waive such conditions, provisions, and requirements of this Part, except the license period of fity 'years, as it may deem to be to the public interest to waive under the circumstances: Provided, That the provision hereof shall not apply annual charges for use of lands within Indian reservations. [ 16 U.S.C. 803 (i) ]
Dams on navi- SEC. 11. That if the dam or other project works are gable waters.
to be constructed across, along, or in any of the navigable waters of the United States, the commission may, insofar as it deems the same reasonably necessary to promote the present and future needs of navigation and consistent with a reasonable investment cost to the licensee, include in the license any one or more of Additional re- the following provisions or requirements: quiremen ts.
(a) That such licensee shall, to the extent necessary Construction of to preserve and improve navigation facilities, construct, locks, etc.
in whole or in part, without expense to the United States, in connection with such dam, a lock or locks, booms, sluices, or other structures for navigation purposes, in accordance with plans and specifications approved by the Chief of Engineers and the Secretary






22


of the Army and made part of such license. [16 U.S.C. 804 (a)]
(b) That in case such structures for navigation conveyane purposes are not made a part of the original con- srcinby struction at the expense of the licensee, then when- of locks, etc. ever the United States shall desire to complete such navigation facilities the licensee shall convey to the United States, free of cost, such of its land and its rights of way and such right~ of passage through its dams or other structures, and permit such control of pools as may be required to complete such navigation facilities. [ 16 U.S. C. 804 (b) ]
(c) hatsuchlicnseeshal frnis fre ofcos toPower free of
(c) hatsuchlicnseeshal frnis fre ofcos tocost for opera-. the United States power for the operation of such tiofl. navigation facilities, whether constructed by the licensee 01' by thl-e United States. [16 U.S. C. 804 (c) ]
SEC. 12. That whenever application is filed for a Installing locks project hereunder involving -navigable waters of the Sewaters If ovenment
United States, and the commission shall find upon fails to do,etc. investigation that the needs of navigation require the cons truction of a lock or locks or other navigation structures, and that such structures can not, consistent with a reasonable investment cost to the applicant, be provided in the manner specified in section 11, subsection (a) hereof, the commission may grant the application with the provision to be expressed in the license that the licensee will install the necessary navigation structures if the Government fails to make provision therefor within a time to be fixed in the license and cause a report upon such project to be prepared, with estimates of cost of the power development and of the navigation structures, and shall submit such Rpr oCn report tCogeswith such recommendations asiReport etoco deems appropriate concerning the participation of the United States in the cost of construction of such navigation structures. [16 U.S.C. 805]
SEC. 13. That the licensee shall commence the construction of the project works within the time fixed Time limit for ,construction
in the license, which shall not be more than two years and operation. from the date thereof, shall thereafter in good faith and with due diligence prosecute such construction, and shall within the time fixed in the license corn-






23


plete and put into operation such part of the ultimate development as the commission shall deem necessary to supply the reasonable needs of the then available market, and shall from time to time thereafter construct such portion of the balance of such development as the commission may direct, so as to supply adequately the reasonable market demands until such development shall have been completed. The periods Extensions. for the commencement of construction may be extended
once but not longer than two additional years and the period for the completion of construction carried on in good faith and with reasonable diligence may be extended by the commission when not incompatible with the public interests. In case the licensee shall not Termination of commence actual construction of the project works, license on faflure. or of any specified part thereof, within the time prescribed in the license or as extended by the commission,then, after due notice- iven the license shall., as to such project works or part thereof, be terminated upon written order of the commission. In case the construcPvoceedings if tion of the project works, or of any specified part partly comfpiete& thereof, have been begun but not completed within the
time prescribed in the license, or as extended by the commission, then the Attorney General, upon the request of the commission, shall institute proceedings in equity in the district court of the United States for the district in which any part of the project is situated for the revocation of said license, the sale of the works constructed, and such other equitable relief as the case may demand, as provided for in
section 26 hereof. [16 U.S.C. 806] Right of Government to SECIP 14, a) Upon not less than two years' notice in take over, oper- writing from the Commission the United States shall ate, etc., at exon of have the right upon or after the expiration of any
e.
license to take over and thereafter to maintain and operate any project or projects as defined in section 8 hereof, and covered in whole or in part by the license, or the right to take over upon mutual agreement with the licensee, all* property owned and hild by the licensee then valuable and serviceable in-the develop-






24


ment, transmission, or distribution of power and which is then dependent for its usefulness upon the continuance of the license, together with any lock or locks or other aids to navigation constructed at the expense of the licensee, upon the condition that before taking Paymentt b possession it shall pay the net investment of the licensee in the project or projects taken, not to exceed the fair value of the property taken, plus such reasonable damages, if any, .to property of the licensee valuable, serviceable, and dependent as above set forth' but not taken, as may be caused by the severance therefrom of property taken, and shall assume all contracts entered into by the licensee with the approval of the Deemnto Commission. The net investment of the licensee in the project or projects so taken and the amount of such severance damages, if any, shall be determined by the Commission after notice and opportunity for hearing. Such net investmeni~ shall not include or be values, excluded.
affected by the value of any lands, rights-of -way, or other property of the United States licensed by the Commission under this Act, by the license or by good will, going value, or prospective revenues; nor shall the values allowed for water rights, rights-of-way, 'Costs of water rights, etc.
lands, or interest in lands be in excess of the actual allowed. reasonable cost thereof at the time of acquisition by the licensee: Provided, That the right of the United States Proviso. or any State or municipality to take over, maintain, and operate any project licensed under this Act at any Condemnation right reserved.
time by condemnation proceedings upon payment of just compensation is hereby expressly reserved. [16 U.S.C. 807 (a)]
(b) No earlier than five years before the expiration' Right of Government to
of any license, the Commission shall entertain applica- take over tions for a new license and decide them in a relicensing proceeding pursuant to the provisions of section 15. In any relicensing proceeding before the Comn~ission any Federal department or agency may timely recommend, pursuant to such rules as the Commission shall prescribe, that the United States exercise its right to take over any project or projects. Thereafter, the Commission, if it does not itself recommend such action pursuant to the provisions of section 7 (c) of this part, shall upon motion of such department or agency stay the effective






25


date of any order issuing a license, except an order issuing an annual license in accordance with the proviso of section 15 (a), for two years after the date of issuance of such order, after which period the stay shall terminate, unless terminated earlier upon motion of the department or agency requesting the stay or by action of

Notice to Congress. The Commission shall notify the Congress of Congress. any stay granted pursuant to this subsection. [16 U.S.C.
807 (b)
Issue of new SEC. 15. (a) That if the United States does not, at the licenses.
To original expiration of the original license, exercise its right to take licensee.
over, maintain, and operate any project or projects of the licensee, as provided in section 14 hereof, the commission
To new
licensee. Con- is authorized to issue a new license to the original licensee
dition.
upon such terms and conditions as may be authorized or required under the then existing laws and regulations, or to issue a new license under said terms and conditionsto a new licensee, which license may cover any project or projects covered by the original license, and shall be issued on the condition that the new licensee shall, before taking possession of such project or projects, pay such amount., and assume such contracts as the United States is required to do, in the manner specified Proviso. in Section 14 liereof : Provided, That in the event the
United States does not exercise the rightto take over or does not issue a license. to a new licensee, or issue a new license to the original licensee, upon reasonable terms, then the commission shall issue from year to year an annual license to the then licensee under the terms Yearly continu- and conditions of the original license until the property
ance of original
license.. is taken over or a new lii .ense is issued as aforesaid.
16 U.S.C. 808 (a) ]
(b) In 'issuing any licenses under this section except Licenses for an annual license. the Commission on its own motion nonpow4ir use. I I
or upon application of any licensee, person, State, municipality, or State commission, after notice to each State commission and licensee affected, and afteropportunity for hearing, whenever it finds that in conformity
I with a comprehensive plan for improving or developing
a waterway or waterways for beneficial public uses all or part of any licensed project should no longer be used or adapted for use for power purposes, may license






26


all or part of the project works for nonpower use. A license for nonpower use shall be issued to a new licensee only on the condition that the new licensee shall, before taking possession of the facilities encompassed thereunder, pay such amount and assume such contracts as the United States is required to do, in the manner specified in section 14 hereof. Any license for nonpower use shall be a temporary license. Whenever, in the judgment of the Commission, a State, municipality, interstate agency, or another Federal agency is authorized and willing to assume regulatory supervision of the lands and facilities included under the nonpower license and does so, the Commission shall thereupon terminate the license. Consistent with the Recordkeeping. provisions of the Act of August 15, 1953 (67 Stat. 587; 16 U.S.C. 828-828c), every licensee for nonpower use shall keep such accounts and file such annual and other periodic or special reports concerning the removal, alteration, nonpower use, or other disposition of any project works or parts thereof covered by the nonpower use license as the Commission may by rules and regulations or order prescribe as necessary or appropriate. [16 U.S.C. 808 (b)]
SEc. 16. That when in the opinion of the President Tempiorary posof heUnte Satsevidenced by written order oct by the GovafteUie tts erment for
addressed tothe holder of any license hereunder, the usiiaes. safety of the United States demands it, the United States shall have the right to enter upon and take possession of any project,' or part thereof, constructed, maintained, or operated under said license, for the purpose of manufacturing nitrates, explosives, or munitions of war, or for any other purpose involving the safety of the United States, to retain possession, management, and control thereof for such length of time as may appear to the President to be necessary to accomplish said purposes, and then to restore possession and control to the party or parties entitled thereto; and in the event that the United States shall exercise such right it shall pay to the party or parties entitled thereto just and fair compensation for the use of said property as may be fixed by the Commission upon the basis of a reasonable profit in time of peace, and the cost ofBaiofcm restoring said property to as good condition as existed






27


at the time of the taking over thereof, less the reasonable value of any improvements that may be made thereto by the United States and which are valuable and serviceable to the licensee. [16 U.S.C. 809]
Proceds.-SEC. 17. (a) All proceeds from any Indian reservation lads.it of shall be placed to the credit of the Indians of such reserall other. vation. All other charges arising from licenses hereunder, To miscellaneosreceipts. except charges fixed by the Commission for the purpose of reimbursing the United States for the cost of administration of this Part, shall be paid into the Treasury From public of the United States, subject to the following distribulands, etc.
tion: 121/ per centum thereof is hereby appropriated to be paid into the Treasury of the United States and credited to "Miscellaneous receipts"; 50 pet centum of the charges arising from licenses hereunder for the occupancy and use of public lands and national forests shall be paid into, reserved, and appropriated To reclamation as a part of the reclam ation fund created by the Act fund.
of Congress known as the Reclamation Act, approved June 17, 1902; and 371/2 per centum of the charges arising from licenses hereunder for the occupancy and use of national forests and public lands from development within the boundaries of any State shall To Stats. be paid by the Secretary of the Treasury to such State;
and 50 per centum of the charges arising from all other From all other licenses hereunder is hereby reserved and appropriated licenses.
as a special fund in the Treasury to be expended under the 'direction of the Secretary of the ,Army' in the To special nai- maintenance and operation of dams and other navigagation improvement funk. tion structures -owned by the United States or in the
construction, maintenance, or operation of headwater or other improvements of navigable waters of the United States. The proceeds of charges, made by the Commission for the purpose of reimbursing the United States for the costs of the administration of this Part shall be paid into the Treasury of the United States and credited to miscellaneous receipts. [16 U.S.C. 810
(a)]
Delinquency In () cae dlnunyothof iene
payment of an- ()In caeof-dlnu yo h part ofany lcne
nual charges:intepyetoanulcagsapntyf5pr penalty.intepyetoanulcagsapnlyo5pr
centum of the total amount so delinquent may be added






28


to the total charges which shall apply for the first month or part of month so delinquent with an additional penalty of 3 per centum for each subsequent month until the total of the charges and penalties are paid or until the license is canceled and the charges and penalties satisfied in accordance with law. [16 U.S.C. 810 (b) ]
SEC. 18. The Commission shall require the construetion, maintenance, and operation by a licensee at its Maneac of own expense of such lights and signals as may be directed ways, etc. by the Secretary of the Department in which the Coast elte ujc Guard is operating, and such fishways as may bie pre- tc. byregulaioscribed by the Secretary of Commerce. The operation of tary of the Department in
any navigation facilities which may be constructed as which the Coast Guard
a part of or in connection with any dam or division struc- Is operating. ture built under the provisions of this Act, whether at the expense of a licensee hereunder or of the United States, shall at all times be controlled by such reasonable rules and regulations in the interest of navigation, including the control of the level of the pool caused by such dam or diversion structure as may be made from time to time by the Secretar'y of the Army, and for willful failure to comply with any such rule or regulation' such licensee shall be deemed guilty of a misdemeanor, Pnntycori and upon conviction thereof shall be punished as pro- an"e. vided in section 316 hereof. [16 U.S.C. 81.1]
SF~c. 19. That as a condition of the license, every Public service licensee hereunder which is a public-service corporation, lcne or a person, association, or corporation owning or operating any project and developing, transmitting, or stat: reguladistributing power for sale or use in public service, trol.tocn shall abide by such reasonable regulation of the services to be rendered to customers or consumers of power, and of rates and charges of payment therefor, as may from time to time be prescribed by any duly constituted






29


agency of the State in which the service is rendered or the rate charged. That in case of the development, transmission, or distribution, or use in public service of power by any licensee hereunderor by its customer Regulation by engaged in public service within a State which has Commission, If
no State provi- not authorized and empowered a commission or other sion therefor.
agency or agencies within said State to regulate and control the services to be rendered by such licensee or by its customer engaged in public service, or the rates and charges of -payment therefor, or the amount or character of securities to be issued by any of said parties, it is agreed as a condition of such license that jurisdiction is hereby conferred upon the commission, upon complaint of any person aggrieved or upon its own initiative, to exercise such regulation and control until such time as the State shall have provided a commission or other authority for such regulation and control: Proviso. Provided That the jurisdiction of the commission shall
To cease when I
State provision cease and determine as to each specific matter of regulamade.
tion and control prescribed in this section as soon as the State shall have provided a commission or other authority for the regulation and control of that specific
matter. [ 16 U.S.C. 812]
Reasonable, SFc. 20. That when said power or any part thereof
etc., rates for
power used In shall enter into inters. tate or foreign commerce the interstate commerce. rates charged and the service rendered by any such
licensee, or by any subsidiary corporation, the stock of which is owned or controlled directly or indirectly by such licensee, or by any person, corporation, or association purchasing power from such licensee for sale and distribution or use in public service shall be

reasonable, nondiscriminatory, and just to the customer Discriminatory, and all unreasonable discriminatory and unjust rates etc., rates unlawful, Com- or services are hereby prohibited and declared to be
mission to
enforce If no unlawful; and whenever any of the States directly
authority provided by State. concerned has not provided a commission or other
authority to enforce the requirements of this section within such State or to regulate and control the amount and character of securities to be issued by any of such parties or such States are unable to agree through their properly constituted authorities on the services to be rendered or on the rates or charges of payment therefor, or on the amount or character of securities to be issued






30


by any of said parties, jurisdiction is hereby conferred upon the commission, upon complaint of any person aggrieved, upon the request of any State concerned, or upon its own initiative to enforce the provisions of this section, to regulate and control so much of the services rendered, and of the rates and charges of payment there-' for as constitute interstate or foreign commerce and I to regulate the issuance of securities by the parties included within this section, and securities issued by the licensee subject to such regulations shall be allowed only for the bona fide purpose of financing and conducting the business of such licensee. [16 U.S.C. 813]
The administration of the provisions of this section Procedure and active to conforrIm with Inso far as applicable, shall be according to the procedure interstate Comand practice in fixing and regulating the rates, charges, inerce. and practices of railroad companies as provided in the Act to regulate commerce, approved February 4, 1887, as amended, and that the parties subject to such regulation shall' have the same rights of hearing, defense, and review as said companies in such cases. [16 U.S.C. 813]
Valuation of
In any valuation of the property of any licensee property for hereunder for purposes of rate making, no value shall rate-making limited.
be claimed by the licensee or allowed by the commission for any project or projects under license in excess of the value or values prescribed in section 14 hereof for the purposes of purchase by the United States, but there shall be included the cost to such licensee of the construction of the lock or locks or other aids of navigation and all other capital expenditures required by the United States, and no value shall be claimed or allowed for the rights granted by the commission or by this Act. [16 U.S.C. 813]
SEC. 21. That when any licensee can not acquire by Securing dam sites, etc., by
contract or pledges an unimproved dam site or the right of-emtnent domain.
right to use or damage the lands or property of others necessary to the construction, maintenance, or operatin of any dam, reservoir, diversion structure, or the works appurtenant or accessory theretoo, in conjunction with an improvement which in the judgment of the commission is desirable and justified in the public interest for the purpose of improving or developing a






31


waterway or waterways for the use or benefit of interJurisdiction of state or foreign commerce, it may acquire the same Federal courts.
by the exercise, of the right of eminent domain in the district court of the United States for the district in which such land or other property may be located, or in the State courts. The practice and procedure in any action or proceedings for that purpose in the district court of the United States shall conform as nearly as may be with the practice and procedure in similar action or proceeding in the courts of the State where Proviso. the property is situated: Provided, That United States
Amount re
quired. district courts shall only have jurisdiction of cases when
the amount claimed by the owner of the property to be
-condemned exceeds $3,000. [16 U.S.C. S11]
Contracts for SEC. 22. That whenever the public interest requires service beyond
term of license or justifies the execution by the licensee of contracts permitted.
for the sale and delivery of power for periods extending beyond the date of termination of the license, such contracts may be entered into upon the joint approval Approval re- of the commission and of the public-service commission quired.
or other similar authority in the State in which the sale or delivery of power is made, or if sold or delivered in a State which has no such public-service commission, then upon the approval of the commission, and thereafter, in the event of failure to issue a new license to the original licensee at the termination of the license, the United States or the new licensee, as the case may be, sliall assume and fulfill all such contracts. [16 U.S.C.
S15]
Existing rights, SEC. 23. (a) The provisions of this Part shall not be etc., protected.
construed as affecting any permit or valid existing rightof-way heretofore granted or as confirming or otherwise affecting any claim, or as affecting any authority lieretofore given pursuant to law, but any person, association., corporation, State, or municipality holding or possessing such permit, right-of -way, or authority may apply for Issue of a license hereunder and upon such application the
licenses under. I
Commission may issue to any such applicant a license in accordance with, the provisions of this Part and in such case the provisions of this Act shall apply to Proviso. such applicant as a licensee hereunder: Provided, That
Valuation of
project. when application is made for a license this section






32


for a project or projects already constructed the fair value of said project or projects determined as provided in this section, shall for the purposes of this Part and of said license be deemed to be the amount to be allowed as the net investment of the applicant in such project or projects as of the date of such license, or as of the date of such determination, if license has not Jeen issued. Such fair value shall be determineA by the Commission after notice and opportunity for hearing. [16 U.S.C. Method of determining.
816]
(b) It shall be unlawful for any person, State, or municipality, for the purpose of developing electric power, to construct, operate, or maintain any dam, water conduit reservoir, power house, or other works Dams, etc., over
I other than
incidental thereto across along, or in any of the navigable I waters.
navigable waters of the United States, or upon any License required if Interpart of the public lands or reservations of the United ests of commerce affected
States( including the Territories), or utilize the surplus thereby. water or water power from any Government dam, except under and in accordance with the terms of a permit or valid existing right-of-way granted prior to June 109 1920, or a license granted pursuant to this Act. Any person, association, corporation, State, or municipality intending to construct a dam or other project works across, along, over, or in any stream or part thereof, other than those defined herein as navigable waters, and over which, Congress has jurisdiction under its authority to regulate commerce with foreign nations and among the several States shall before such construction file declaration of such intention with the Commission, whereupon the Commission shall cause immediate investigation of such proposed construction to be made, and if upon investigation it shall find that the interests of interstate or foreign commerce would be affected by such proposed construction such person, association, corporation, State, or municipality shall not construct, maintain, or operate such dam or other project works until it shall have applied for and shall have received a license under the provisions of this Act. If the Commission shall not so find and if no public lands or Permission if I not affecting
reservations are affected, permission is hereby granted commerce. to construct such dam or other project works in such stream upon compliance with State laws. [16 U.S.C. 817]






33

Lands within SEc. 24. Any lands of the United States included in any projects reserved from proposed project under the provisions of this Part entry, etc.
shall f rom the date of filing of application therefor be reserved from entry, location, or other disposal under the laws of the United States until otherwise directed Notice to land by the Commission or by Congress. Notice that such office.
application has been made, together with the date of filing thereof and a description of the lands of the United States affected thereby, shall be filed in the local land office for the district in which such lands are located. Whenever the Commission shall determine that the value of any lands of the United States so applied for, or heretofore or hereafter reserved or classified as power sites, will not be injured or destroyed Entry, etc., per- for the purposes of power development by location, mitted, subject
to power res- entry, or selection under the public land laws, the ervatton.
Secretary of the Interior, upon notice of such delermination, shall declare such lands open to location, entry, or selection, for such purpose or purposes and under such restrictions as the Commission may determine, subject to and with a reservation of the right of the United States or its permittees or licensees to enter upon, occupy, and use any part or all of said lands necessary, in the judgment of the Commission, for the purposes of this Part, which right shall be expressly reserved in every patent issued for such lands; and no claim or right to compensation shall accrue from the occupation or use of any of said lands for said purposes. Payment for The United States or any licensee for any such lands damage to
crops, etc. hereunder may enter thereupon for the purposes of
this Part upon payment of any damages to crops, buildings, or other improvements caused thereby to the owner thereof, or upon giving a good and sufficient bond to the United States for the use and benefit of the owner to secure the payment of such damages as may be determined and fixed in an action brought upon the bond in -a court. of competent jurisdiction, said bond to be in the form prescribed by the Commission: Proviso. Provided That locations entries selection, or filings
Former-loca- i I I
tions, etc., not heretofore made for lands reserved as water-power impaired.






:34


sites, or in connection with water-power development, or electrical transmission may proceed to approval or patent under and subject to the limitations and conditions in this section continued: Provided further, That Proviso. before any lands applied for, or heretofore or hereafter reserved, or classified as power sites, are declared open to location, entry, or selection by the Secretary of the Interior, notice of intention to ma ke such declaration shall be given to the Governor of the State within Notice to Governor.
which such lands are located, and such State shall have ninety days from the date of such notice within which to file, under any statute or regulation applicable thereto, an application for the reservation to the State, or any political subdivision thereof, of any lands required as a right-of-way for a public highway or as a source of materials for the construction and maintenance of such highways, and a copy of such application shall be filed with the Federal Power Commission; and any location, entry, or selection of such lands, or subsequent patent thereof, shall be subject to any rights granted the State pursuant to such application. [16 U.S.C. 818]
SEC. 25. [Repealed August 26, 1935.]
SEC. 26. That the Attorney General may, on request
of the commission! 'or I of fthe iSecretary Iof the I Army~jEqiypoed
inttt roednsin equity ithdsrctcourt jugs for revokin whch an pro~lug" licenses,
of the United States in the district in wihaypo etc or part thereof is situated for the purpose of revoking for violation of its terms any permit or license issued hereunder, or for the purpose of remedying or correcting by injunction, mandamus, or other process any act of commission, or omission in violation of the provisions of this Act or of any lawful regulation or Courts District courts
order promulgated hereunder. The district have Jurisdicshall have jurisdiction over all of the above-mentioned tion. proceedings and shall have power to issue and execute all necessary process and to make and enforce all writs, orders, and decrees to compel compliance with the lawful orders and regulations of the commission and of: the "Secretary of'the Army, andlto'cme the performance of any condition. imposed under the






35


provisions of this Act. In the event a decree revoking Court may sell a license is entered the court is empowered to sell the
project. I
whole or any part of the project or projects under license, to wind up the business of such licensee conducted in connection with such project or projects, to distribute the proceeds to the parties entitled to the same, and to make and enforce such further orders and decrees as equity and justice may require. At Vendee to take such sale or sales the vendee shall take the rights and
rights and assume obliga- privileges belonging to the licensee and shall perform
tions of
licensee. the duties of such licensee and assume all outstanding
obligations and liabilities of the licensee which the court may deem equitable in the premises; and at such sale or sales the United States may become a purchaser, but it shall not be required to pay a greater amount than it would be required to pay under the provisions of section 14 hereof at the termination of the license.
[16 U.S.C. 820]
Sm. 27. That nothing herein contained shall be State laws not construed as affecting or intending to affect or in any affected.
way to interfere with the laws of the respective States relating to the control, appropriation, use, or distribution of water'used in irrigation or for municipal or other uses, or any. vested right acquired therein.
[16 U.S.C. 821]
Right to alter, SEc. 28. That the right to alter, amend, or repeal amend, or
repeal Act this Act is hereby expressly reserved; but no such reserved.
alteration, amendment, or repeal shall affect any license theretofore issued under the provisions of this Act, or the rights of any licensee thereunder. [16 U.S.C. 822]
Sm. 29. That all Acts or parts of Acts inconsistent Inconsistent with this Act are hereby repealed: Provided, That Acts repealed.
Proviso~ nothing herein contained shall be held or construed
RliPts granted
to an Francisco not af- to modify or repeal any of the provisions of the Act fected. of Congress approved December 19, 1913, granting
certain rights-of-way to the city and county of San Proviso--See. Francisco in the State of California: Provided further, 18, Act of Aug. 5
8, 1917, re- -That section,18 of an Act making appropriations for pealed.
the construction, repair, and preservation of certain public works on rivers and harbors, and for other pur-






36


poses, approved August 8, 1917, is hereby repealed. [16 U.S.C. 823]
SEc. 30. (a) Except as provided in subsection (b) or (c), the Commission may grant an exemption in while or in part from the requirements of this part, including any license requirements contained in this part, to any facility (not including any dam or other impoundment) constructed, operated, or maintained for the generation of electric power which the Commission determines, by rule or order(1) is located on non-Federal lands, and
(2) utilizes for such generation only the hydroelectric potential of a manmade conduit, which is operated for the distribution of water for agricultural, municipal, or industrial consumption
and not primarily for the generation of electricity.
(b) The Commission may not grant any exemption under subsection (a) to any facility the installed capacity of which exceeds 15 megawatts.
(c) In making the determination under subsection (a) the Commission shall consult with the United States Fish and Wildlife Service and the State agency exercising administration over the fish and wildlife resources of the State in which the facility is or will be located, in the manner provided by the Fish and Wildlife Coordination Act (16 U.S.C. 661, et seq.), and shall include in any such exemption
(1) such terms and conditions as the Fish and Wildlife Service and the State agency each determine are appropriate to prevent loss of, or damage to, such resources and to otherwise carry
out the purposes of such Act, and
(2) such terms and conditions as the Commission deems appropriate to insure that such facility continues to comply with the provisions of this section and terms and conditions included in
any such exemption.
(d) Any violation of a term or condition of any exemption granted under subsection (a) shall be treated as a violation of a rule or order of the Commission under this Act.






37


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

DECLARATION OF POLICY; APPLICATION OF PART;
DEFINITIONS
Declaration or SECTION 201. (a) It is hereby declared that the policy.
business of transmitting and selling electric energy for
ultimate distribution to the public is affected with a public interest, and that Federal regulation of matters Application of relating to generation to the extent provided in this Part to transmission and Part and the Part next following and of that part of sale in interstate corm- such business which consists of the transmission of merce.
Wholesale sale electric energy in interstate commerce and the sale of of energy.
such energy at wholesale in interstate commerce is necessary in the public interest, such Federal regulation, however, to extend only to those matters which are Regulation by not subject to regulation by the States. [16 U.S.C. 824
Commission, if
no State provi- ( a )
sion therefor.
(b) (1) The provisions of this Part shall apply to the
state conmmnerce. but except as provided in paragraph (2) shall not apply to any other sale of electric energy or deprive a State or State commission of its lawful authorxportation of ity now exercised over the exportation of hydroelectric hydroelectric
energy. energy which is transmitted across a State line. The
Jurisdiction of Comlmission shall have j jurisdiction over all facilities for Commission.
such transmission or sale of electric energy. but shall not have jurisdiction, except as specifically provided in this Part and the Part next following, over facilities used for tHie generation of electric energy or over facilities used in Commission local distribution or only for the transmission of electric has no jurisdiction over enerrv i intrastate commerce. or over facilities for generating
facilities, etc. the transmission of electric energy consumed wholly by
the transmitter. [16 U.S.C. 824(b) ]
(2) The provisions of sections 210. 211. and 212 shall
apply to the entities described in such provisions, and such entities shall be subject to the jurisdiction of the Commission for purposes of carrying out such provisions and for purposes of applying the enforcement authlorities of this Act with respect to such provisions. Compliance with any order of the Commission under the provisions of section 210 or 211, shall not make an electric utility or other entity subject to the jurisdiction of the Commission for any purposes other than the purposes
specified in the preceding sentence.
(c) For the purpose of this Part, electric energy What consti- shall be held to be transmitted in interstate commerce tutes "interstate transmis- if transmitted from a State and consumed at any sion."






38


point outside thereof but only insofar as such transmission takes place within the United States. [16 U.S.C. 824 (c) ]
(d) The term "sale of electric energy at wholesale" "Wholesae
sale of energy."
when used in this Part means a sale of electric energy to any person for resale. [ 16 U. S.C. 824 (d) ] 'Public
(e) The term "public utility" when used in this Part 'Utility." or in the Part next following means any person who owns or operates facilities subject to the jurisdiction of the Commission mider this Part (other than facilities subject, to such jurisdiction solely by reason of section 210 211, or 212). [16 U.S.C. 824 (e) ]
(f) No provision in this Part shall apply to, or be Provisions in ,this Part not
deemed to include the United States a State or any applicable to I I United States,
P litical subdivision of a state, or any agency, authority, States, or agen0 cies or corporaor instrumentality of any one or. more of the fore- tions of either. going, or any corporation which is. wholly owned, directly or indirectly, by any one or more of the foregoing, or any officer, agent, employee of any of the foregoing act-ing as such in the cou rse of his official duty, unless such provision makes specific reference thereto. [ 16 U.S.C. 824 (f

INTERCONNECTION AND COORDINATION OF FACILITIES; Interconnection and coEMERGENCIES; TRANSMISSION TO FOREIGN COUNTRIES ordination of
facilities.
SEC. 202. (a) For the purpose of assuring an abundant supply of electric energy throughout the United States with the greatest possible economy and with regard to the proper utilization and conservation of natural resources, the Commission is empowered and directed to divide the conservation of natural recountry into regional districts for the voluntary intercon- sources. nection and coordination of facilities for the generation, Regional districts.
transmission, and sale of electric energy, and it may at any time thereafter, upon its own motion or upon application, make such modifications thereof as in its judgment will promote the public interest. Each such district shall embrace an area which, in'the judgment of the
can economically be served by such inter- Voluntary inCommission, terconnection
connected and coordinated electric facilities. It shall be and coordination of facilithe duty of the Commission to promote and encourage ties. such interconnection and coordination within each such commission to cooperate with
district and between such districts. Before establishing States In establishing regional
any such district and fixing or modifying the boundaries districts.






39


thereof the Commission shall give notice to the State commission of each State situated wholly or in part within such district, and shall afford each such State commission reasonable opportunity to present its views and recommend at ions, and shall receive and consider
such views and recommendations. [16 U.S.C. 824a (a) ]
Hearings upon (b) Whenever the Commission upon application of application for I
Interconnection any State commission or of any person engaged in of facilities.
the transmission or sale of electric energy, and after notice to each State commission and public utility affected and after opportunity for hearing, finds such action -necessary or appropriate in the public interest Commission it ma bv order direct'a public utility (if the Commay order y
Interconnec- mission finds that no undue burden will be placed
tion.
upon such public utility thereby) to establish physical connection of its transmission facilities with the facilities of one or more other persons engaged in the transmission or sale of electric energy, to sell energy to, or Proviso.--Com- exchange energy with such persons: Provided, That the mission cannot
compel en- Commission shall have no authority to compel the
largement of
generating enlargement of generating facilities for such purposes,
facilities.
nor to compel such public utility to sell or exchange energy when to do so would impair its ability to render Commission adequate service to its customers. The Commission may prescribe
terms and con- may prescribe the terms and conditions of the arrangeditions of arrangement8 for ment to be made between the persons affected by any
Interconnection and appor- Such order including the apportionment of cost, between tion cost I
thereof. them and the compensation or reimbursement reasonably due to any of them. [16 U.S.C. 824a(b)]
Temporary In- (c) During the continuance of any war in which terconnection
during na- the United States is engaged, or whenever the Comtional emergency. mission determines that, an emergency exists by
reason of a sudden increase in the demand for electric energy, or a shortage of electric energy or of facilities for the generation or transmission of electric energy, or of fuel or water for generating facilities, or other causes, the Commission shall have authority, either upon its own motion or upon complaint, with or without Notice and notice hearing, or report, to require by order such bearing not I
required. temporary connections of facilities and such generation,
delivery, interchange, or transmission of electric energy






40


as in its judgment will best meet the emergency and serve the public interesJYIf the parties. affected by such order fail to agree upon the terms of any arrangement Terms for Inbetween them in carrying out such order, the Commis- may be presion, after hearing held either before or after such order Commission. takes effect, may prescribe by supplemental order such terms as it finds to be just and reasonable, including the compensation or reimbursement which should be paid to or by any such party.^ [16 U.S.C. 824a (c)]
(d) During the continuance of any emergency requiring immediate action, any person engaged in the transmission or sale of electric energy and not otbzL wise subject to the jurisdiction of the Commission may make such temporary connections with any public utility subject to the jurisdiction of the Commission Temporary emergency
or may construct such temporary facilities for the cjonncin of faclitesnot
transmission of electric energy in interst ate commerce subject to Comas may be necessary or appropriate to meet such emer- diction. gency, and shall not become subject to the jurisdiction of the Commission by reason of such temporary connection or temporary construction: Provided, That such poayItr temporary connection shall be discontinued or such connections to be terminated
temporary construction -removed or otherwise disposed at end of emergency.
of upon the termination of such emergency: Provided maet mr further, That upon approval of the Commission tinauhr permanent connections for emergency use only may Ized. be i-ade hereunder. [ 16 U.S.C. 824a (d) ]
(e) After six months from the date on which this
Par~ ake efec.,no person shall transmit any electric Exportation of energy from the United States to a foreign country hibited. without first~ having secured an order of the Commission authorizing it to do so. The Commission shall Commission may authorize
issue such order upon application unless, after oppor- .;exprtation tunity for hearing, it finds that the proposed trans- tion. mission would impair the sufficiency of electric supply Hearing. within the United States or would impede or tend to impede the coordination in the public interest of facilities subject to the jurisdiction of the Commission. The Commission may by its order grant such application in whole or in part, with such modifications and upon dTons fn o such terms and conditions as the Commission may find exportation. necessary or appropriate, and may from time to time,






41


after opportunity for hearing and for good cause, shown, make suclisupplemental orders in the premises as it may find necessary or appropriate. [16 U.S.C. 824a(c)]
(f) The ownership or operation of facilities for the transmission or sale at wholesale of electric energy which is (a) generated within a State and transmitted from that State across an international boundaryand not thereafter transmitted into any other State, or (b) generated in a foreign country and transmitted across an international boundary into a State, and not thereafter transmitted into any other State, shall not make a person a public utility subject to regulation as such under other provisions of this part. The State within which any such facilities are located may regulate any such transaction insofar as such State regulation does not conflict with the exercise of the Commission's powers under or relating to subsection 202 (e). [ 16 U. S.C. 824a (f ) ]
(g) In order to insure continuity of service to customers of public utilities, the Commission shall require by rule, each public utility to
(1) report promptly to the Commission and any appropriate
State regulatory authorities any anticipated shortage of electric energy or capacity which would affect such utility's capability
of serving its wholesale customers,
(2) submit to the Commission, and to any appropriate State
regulatory authority, and periodically revise, contingency plans
respecting(A) shortages of electric energy or capacity, and
(B) circumstances which may result in such shortages,
and
(3) accommodate any such shortages or circumstances in a
manner which shall(A) give due consideration to the public health, safety,
and welf are, and
(B) provide that all persons served directly or indirectly
by such public utility will be treated, without undue prejudice or disadvantage.






42

DISPOSITION OF PROPERTY; CONSOLIDATION;
PURCHASE OF SECURITIES
SEC. 203. (a) No public utility shall sell, lease, or otherwise dispose of the whole of its facilities subject to the jurisdiction of the Commission, or any part thereof of a value in excess of $50,000, or by any means whatsoever, directly or indirectly, merge or consolidate such facilities or any part -thereof with those of any other person, or purchase, acquire, or take any security of any other public utility, without first having secured an order of the Commission authorizing it to do so. Upon application for such approval the Commission shall give reasonable notice in writing to the Governor and State commission of each of the States in which the physical property affected, or any part thereof, is situated, and to such other persons as it may deem advisable. After notice and opportunity for hearing, if the Commission finds that the proposed disposition, consolidation, acquisition, or control will be consistent with the public interest, it shall -approve -the same. [16 U.S. C. 824b (a) I
(b) The Commission may grant any application for an order under this section in whole or in part and






43


upon such terms and conditions as it finds necessary Termis and conditions of order.
or appropriate to secure the maintenance of adequate service and the coordination in the public interest of facilities subject to the jurisdiction of the Commission. The Commission may from time to time for good cause shown make such orders supplemental to Modiiction any order made under this section as it may findofrd. necessary or appropriate. [16 U.S.C. 824b(b)]
ISSUANCE OF SECURITIES; ASSUMPTION OF LIABILITIES
SEC. 204. (a) No public utility shall issue any security, Issuance of seor assume any obligation or liability as guarantor, curitien of s indorser, surety, or otherwise in respect of any security liblt by uiiyproof another person, unless and until, and then only to the bbIted unless extent that, upon application by the public utility, the Application for Commission by order authorizes such issue or assump- appro'a. tion of liability. The Commission shall mnake such order Ibasis for if it finds that such issue or assumption (a) is for some lawful object, within the corporate purposes of the applicant and compatible with the public interest, which is necessary or appropriate for or consistent with the proper performance by the applicant of service as a public utility and which will not impair its ability to perform that service, and (b) is reasonably necessary or appropriate for such purposes. The provisions of this section shall be effective -six months after this Part takes e ffect. [ 16 U. S. C. 824c (a) ]
(b) The Conmmission, after opportunity for hear- Hearing. ing, may grant any application under this section in whole or in part, and with such modifications and? Oran' of application In whole
upon such terms and conditions as it may find neces- or In part. sary or appropriate, and may from time to time, after opportunity for hin and for good cause shown, Terms and coniearI ditions of make such supplemental orders in the premises as it order. may find necessary or appropriate, and may by any such supplemental order modify the provisions of any Modidfication previous order as to the particular purposes, uses, andofrd. extent to which, or the conditions under which, any security so theretofore authorized or the proceeds thereof may be app'iied, subject always to the requirements of subsection (a) of this section. [16 U.S.C. 824c
(b) ]
(c) No public utility shall, without the consent of
the Commission, apply any security or any proceeds Preiyeds






44


thereof to any purpose not specified in the Commission's order, or supplemental order, or to any purpose in excess of the amount allowed for such purpose in such order, or otherwise in contravention of such order.
[ 16 U.S. C. 824c (c) ]
Capitalization (d) The Commission shall not authorize the capiof rights In excess of amount talization of the right to be a corporation or of any
paid therefor
prohibited. franchise, permit, or contracts for consolidation, merger,
or lease in excess of the amount (exclusive of any tax or annual charge) actually paid as the consideration for such right, franchise, permit, oi- contract. [16 U.S.C.
824c (d)
Provisions of (e) Subsection (a) shall not apply to th6 issue or
subsection (a)
not applicable renewal of or assumption of liability on, a note or to notes and I
drf ts matur- draft maturing not more than one year after the date Ing within I
ear, aggregat- of such issue renewal or assumption of liability, and than 5 percent aggregating (together with all other then outstanding of the value of
securities out- notes and drafts of a maturity of one ear or less on standing. y
which such public utility is primarily or secondarily Value of secu- liable) not more than 5 per centum of the par value rities, determination of. of the other securities of the public utility then outstanding. Tn the case of securities having no par value, the par value for the purpose of this subsection shall be the fair market value as of the date of issue. Within ten days after any such issue, renewal, or assumption of liability, the public utility shall file with the ComCertificate of mission a certificate of notification, in such form as notification.
may be prescribed by the Commission, setting forth such matters as the Commission shall by regulations
require. [ 16 U. S.C. 824c (e)
Provisions of
section not ap- (f) The provisions of this section shall not extend
e where to a public utility organized and operating in a State
regulate
securities. under the laws of which its security issues are regulated
by a State commission. [ 16 U.S.C. 824c (f) ]
Securities not (g) Nothing in this section shall be construed to guaranteed by
United States. imply any guaranteed or obligation on the part of the
United States in respect of any securities to which the provisions of this section relate. [1 6 U.S. C. 824c (g) j Filing of re- (h) Any public utility whose security issues are ports relating
to securities. approved by the Commission under this section may
file with the Securities and Exchange Commission duplicate copies of reports filed with the Federal Power






45


Commission in lieu of the reports, information, and documents required under section 7 of the Securities Act of 1933 and section 12 and 13 of the Securities and Exchange Act of 1934. [16 U.S.C. 824c. (h) ]
RATES AND CHARGES; SCHEDULES; SUSPENSION OF NEW RATES
SEC. 205. (a) All rates and charges made, demanded, Rates and or received by any public utility for or in connection charges. with the transmission or sale of electric energy subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to such rates or charges shall be just and reasonable, and any such rate or charge that is not just and reasonable is hereby declared to be unlawful. [ 16 U.S. C. 824d (a)
(b) No public utility shall, with respect to any transmission or sale subject to the jurisdiction of the Commission, (1) make or grant any undue preference Undue Preverence or ad anor advantage to any person or subject any person to tage.
Maintenance
any undue prejudice or disadvantage, or (2) main- unreasonable rates or
tain any unreasonable difference in rates, charges, service.
service, facilities, or in any other respect, either as between localities or as between classes of service. 16 U.S. C. 824d (b) ]
(c) Under such rules and regulations as the Com- Schedules of rates and
mission may prescribe, every public utility shall file charges. with the Commission, within such time and in such form as the Commission may designate, and shall keep open in convenient form and place for public inspection schedules showing all rates and charges for any trans- Schedules open to public Inmission or sale subject to the jurisdiction of the Com- section. mission, and the classification, practices, and regulations affecting such rates and charges, together with all contracts which in any manner affect or relate to such rates, charges, classifications, and services. [16 U.S. C. 824d (c) ] ,
(d) Unless the Commission otherwise orders, no Changes In
schedules prochange shall be made by any public utility in any hibited. such rates, charges, classification, or service, or in any rule, regulation, or contract relating thereto, except after_ sixty days' notice to the Commission and to the public. Such notice shall be given by filing with Filing of new schedules.
the Commission and keeping open for public inspection new schedules stating plainly the change or changes to


49-791 0 79 4






46


be made in the schedule or schedules then in force and the time when the change or changes will go into effect. Public notice. The Commission, for good cause shown, may allow
chaiiges, to take effect, without requiring the sixty days* notice herein provided for by an order specifying the changes so to be made and the time when they shall take effect and the manner in which they shall be filed and
published. [16 U.S.C. 824d (d) ]
New schedules. (e) Whenever any such new schedule is filed the
Commission shall have authority, either upon complaint or upon its own initiative without complaint ,at once, and, if it so orders, without answer or formal pleading by the public utility, but upon reasonable Hearings. notice to enter upon a hearing concerning the lawfulness of such rate, charge, classification, or service; and, pending such hearing and the decision thereon the Commission, upon filing with such schedules and delivering to the public utility affected thereby a statement in writing of its reasons for such suspension, may Commission suspend the operation of such schedule and defer the
may suspend
operation of use of such rate charge, classification, or service, but
new schedule. I
not for a longer period than five months beyond the time when it would otherwise go into effect; and after full hearings, either completed before or after the rate, charge, classification, or service goes into effect, the Commission may make such orders with reference thereto as would be proper in a proceeding initiated after it had become effective. If the proceeding has not been concluded and an order made at the expiration of such five months, the proposed change of rate, charge, classification, or service shall go into effect at the end, of such period, but in case of a proposed increased rate or charge, the Commission may by order require the interested public utility or public utilities to keep accurate account in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts are paid, and upon comRefund of In- pletion of the hearing and decision may by further order creased rates 9
and charges. require such public utility or public utilities. to refund,
with interest, to the persons in whose behalf such amounts were paid, such portion of such increased rates Burden of or charges as by its decision shall be found not justified.
proof In rate
matters. At any hearing involving a rate or charge sought to be






47


increased, the burden proof to show that the increased rate 'or charge is just and reasonable shall be upon the public utility, and the Commission shall give to the hearing and decision of such questions preference over other questions pending bef ore it and decide the same as speedily as possible. [16 U.S.C. 824d (e) ]
(f) (1) Not later than 2 years after the date of the enactment of this subsection and not less often than every 4 years thereafter, the Commission shall make a thorough review of automatic adjustment clauses in public utility rate schedules to examine(A) whether or not each such clause effectively provides
incentives for efficient use of resources includingg economical purchase and use of f uel and electric energy), and
(B) whether any such clause reflects any costs other than costs
which are(i) subject to periodic fluctuations and
(ii) not susceptible to precise determinations in rate cases
prior to the time such costs are incurred.
Such review may take place in individual rate proceedings or in generic or other separate proceedings applicable to one or more utilities.
(2) Not, less frequently than every 2 years. in rate proceedings or in generic or other separate proceedings, the Com-mission shall review. with respect to each public utility, practices under any automatic adjustment clauses of such utility to insure efficient use, of resources (Including economical purchase and us~e of fuel and electric energy) under such clauses.
(3) The Commission may. on its own motion or upon complaint, after an opportunity for an evidentiary hearing, order a public utility to
(A) modify the terms and provisions of any automatic adjustment clause, or
(B) cease any practice in connection -with the clause,
if such clause or practice does not result in the economical purchase and use of fuel, electric energy, or other items, the cost of which is included in anv rate schedule under an automatic adjustment clause.
(4) As used in this subsection, the term "automatic adjustment clause" means a provision of a rate schedule which provides for increases or decreases (or both), without prior hearing, in rates reflecting increases or decreases (or both) in costs incurred by an electric utility. Such term does not include any rate -which takes effect subject to refund and subject to a later determination of the appropriate amount of such rate.






48

FIXING RATES AND CHARGES; DETERMINATION OF COST
OF PRODUCTION OR TRANSPORTATION
SEC. 206. (a) Whenever the Commission, after a hearing had upon its own' motion or upon complaint, shall find that -any rate, charges, or classification, demanded, observed, charged, or collected by any public utility for any transmission or sale subject to the jurisdiction of the Commission, or that any rule, regulation, practice, or contract affecting such rate, charge, or classification is unjust, unreasonable, unduly discriminatory or preferential, the Commission shall determine the just and reasonable rate, charge, classification, rule, regulation, practice, or contract to be thereafter observed and in force, and shall fix the same by order. 16 U.S. C. 824e (a) ]
(b) The Commission upon its own motion, or upon the request of any State commission whenever it can do so without prejudice to the efficient and proper conduct of its affairs, may investigate and determine the cost of the production or transmission of electric energy by means of facilities under the jurisdiction of the Commission in cases where the Commission has no authority to establish a rate governing the sale of such energy. [16 U.S.C. S24e (b) ]
FURNISHING OF ADEQUATE SERVICE
SEC. 207. Whenever the Commission, upon complaint of a State commission, after notice to each State commission and public utility affected and after opportunity for bearing, shall find that any I interstate service of any public utility is inadequate or insufficient, the Commission shall determine the proper, adequate, or sufficient service to be furnished, and shall fix the same by its order, rule, or regulation: Provided, That the Commission shall have no authority to compel the enlargement of generating facilities for such purposes, nor to






49


compel the public utility to sell or exchange energy when to do so would impair its ability to render adequate
service to its customers. [16 U.S.C. 824f ]
ASCERTAINMENT OF COST OF PROPERTY Commission SEC. 208. (a) The Commission may investigate and
authorized to
Investigate and ascertain the actual legitimate cost of the property ascertain actual legitimate. of every public utility, the depreciation therein, and, cost of property and depre- When found necessary for rate-making purposes, other ciation therein.
facts which bear on the determination of such cost or depreciation, and the fair value of such property.
[ 16 U. S.C. 824g (a) I
Inventory to (b) Every public utility upon request shall file, with all property
and statement the, Commission an inventor of all or any part of its of original cost y
thereof to be property and a statement of the original cost thereof, filed with Commission. and shall keep the Commission informed regarding
Additions, betterments, ex- the cost of all additions, betterments, extensions, and tension and
new construc- new construction. [16 U.S.C. 824g (b)
tion.
USE OF JOINT BOARDS; COOPERATION WITH STATE COMMISSIONS
Reference of SEC. 209. (a) The Commission may refer any matter matters to
Joint boards. arising in the administration of this Part to a board
to be composed of a member or members, as determined by the Commission, from the State or each of the States affected or to be affected by such matter. Any such Power of Joint board shall be vested with the same power and be subject boards.
to the same duties and liabilities as in the case of a member of the Commission when designated by the Force and ef- Commission to hold any hearings. The action of such fect of actions
of joint boards. board shall have suc',11 force and effect and its proceedings shall be conduct '- d in such manner as the Commission shall by regulations prescribe. The board shall be Appointment appointed by the Commission from persons nominated
of joint boards.
by the State commission of each State affected, or by the Governor of such State if there is no State commission. Each State affected shall be entitled to the same number of representatives on the board unless the nominating power of such State waives such right.
The Commission shall have discretion to reject the nominee from any State, but shall thereupon invite a Allowances for new nomination from that State. The members of a
expenses of
board members. board shall receive such allowances for expenses as the
Commission shall provide. The Commission may, when






50

i its discretion sufficient reason exists therefor, revoke "tteooardreIn I- If erred to board
may be reany reference to such a board. [16 U.S.C. 824h1 (a)] yoked.
(b) The Comnuission may confer with any State Conference.
with State com(Tonl1ission regard(ing the relationship between rate mission.sreb: garding rates,
strutctlres, costs, accounts, charges, practices, classifica- accounts, etc. tions, and regulations of public utilities subject to the jurisdiction of such State commission and of the Corn- Joint hearings
regarding
mission ; and the Coinmission is authorized, under such rates, accounts,
i etc., authorrules and regulations as it shall prescribe, to hold joint ized heari'1s with any State commission in connection with Cooperation
with State
any matter with respect to which the Commission is au- commission. thorized to act. The Commnnission is authorized in the administration of this Act to a vail itself of such cooperation, services, records, and facilities as may be afforded by any State commission. [16 U.S.C. 824h (b) ]
(c) The Comnimission shall make available to the several Information
and reports of
State commissions such information and reports as may Commission
available to
be of assistance in State regulation of public utilities. csions.emmisWhenever the Commission can do so without prejudice to the efficient and proper conduct of its affairs, it may upon request from the State make available to such State as witnesses any of its trained rate, valuation, or other Availability of Commission's
experts, subject to reimbursement to the Commission by eserts aswitsuch State of the compensation and traveling expenses of such witnesses. All sums collected hereunder shall be credited to the appropriation from which the amounts
were expended in carrying out the provisions of this subsection. [16 U.S.C. 824h(c)]

CERTAIN I NTERCON NECTION '~TTIORITY
SEc(. 210. (a) (1) 1 poll application of an electric utility. Federal 16 USC 824i. power marketing acrency. qualifying cn -nerator, or qualifying small power producer. the Comnuissio may issue an order requiring(A) tlie physical connect ion of any generate ion facility, any
small power production facility, or tlhe transmiission facilities
of any electric ultilitv, with the facilities of such applicant.
(B) such action as may be necessary to make effective any
physical connection described in subparagraph (A). which physical connection is ineffective for any reason, such as inadequate size. poor maintenance. or physical unreliability,









(C) such sale or exchange of electric energy or other coordination, as may be necessary to carry out the purposes of any order
under subparagraph (A) or (B), or
(D) such increase in transmission capacity as may be necessary to carry out the purposes of any order under subparagraph
(A) or (B).
(2) Any State regulatory authority may apply to the Commission for an order for any action referred to in subparagraph (A), (B), (C), or (D) of paragraph (1). -No such order may be issued by the Commission with respect to a Federal power marketing agency upon application of a State regulatory authority.
(b) Upon receipt of an application under subsection (a), the Commission shall(1) issue notice to each affected State regulatory authority,
each affected electric utility, each affected Federal power marketing agency, each affected owner or operator of a cogeneration facility or of a small power production facility, and to the public.
(2) afford an opportunity for ail evidentiary hearing. and
(3) make a determination with respect to the matters referred
to in subsection (c).
(c) No order may be issued by the Commission under subsection (a) unless the Commission determines that such order
(1) is in the public interest,
(2) would(A) encourage overall conservation of energy or capital,
(B) optimize the efficiency of use of facilities and resources,
or
(C) improve the reliability of any electric utility system
or Federal power marketing agency to which the order
applies, and
(3) meets the requirements of section 212.
(d) The Commission may, on its own motion, after compliance with the requirements of paragraphs (1) and (2) of subsection (b), issue an order requiring any action described in subsection (a) (1) if the Commission determines that such order meets the requirements of subsection (e) No such order may be issued upon the Commission's own motion with respect to a Federal power marketing agency.
(e) (1) As used in this section, the term "f facilities" means only facilities used for the generation or transmission of electric energy. "
(2) With respect to an order issued pursuant to an application of a qualifying cogenerator or qualifying small power producer under subsection (a) (1) the term "facilities of such applicant"" means the qualifying cogeneration facilities or qualifying small power production facilities of the applicant, as specified in the application. With respect to an order issued pursuant to an application under subsection
(a) (2) the term "facilities of such applicant" means the qualifying cogeneration facilities. qualifying small power production f acilitie-s. or the transmission facilities oT an electric utility. as specified in the application. With respect to an order issued by the Commission on its own motion tinder subsection (d). such term' means the qualifying cogeneration facilities. qualifying small power production f acilitie's. or the transmission facilities o an electric utility, as specified in the proposed order.






5 '2

CERTAIN WHEELING AUTHORITY

SEC. 211. (a) Any electric utility or Federal power marketing agency inay apply to the Con-imission for an order under this subsection requiring any other electric utility to provide transmission services to the applicant (including any enlargement of transmission capacity necessary to provide such services). Upon receipt of such application, after public notice and notice to each affected State regulatory authority, each affected electric utility, and each affected Federal power marketing agency, and after affording an opportunity for an evidentiary hearing, the Commission may issue such order if it finds that such order(1) is in the public interest,
(2) would
(A) conserve a significant amount of energy,
(B) significantly promote the efficient use of facilities and
resources, or
(C) improve the reliability of any electric utility system
to which the order applies, and
(3) meets the requirements of section 212.
(b) Any electric utility, or Federal power marketing agency, which purchases electric energy for resale from any other electric utility may apply to the Commission for an order under this subsection requiring such other electric utility to provide transmission services to the applicant (including any increase in transmission capacity iiecessarv to provide such services). Upon receipt of an application under this subsection. after public notice and notice to each affected State regulatory authority, each affected electric utility, and each affected Federal power marketing agency, and after affording an opportunity for an evidentiary hearing, the Commission may issue such an order if the Commission determines that(1) such other electric utility has given actual or constructive
notice that it is unwilling or unable to provide electric service to the applicant and has been requested by the applicant to provide the transmission services requested in the application under
this subsection, and
(2) such order meets the requirements of section 212.
(c) (1) No order may be issued under subsection (a) unless the Commission determines that such order would reasonably preserve existing competitive relationships.
(2) No order may be issued under subsection (a) or (b) which requires the electric utility subject to the order to transmit, during any period, an amount of electric energy which replaces any amount of electric energy
(A) required to be provided to such applicant pursuant to a
contract during such period, or
(B) currently provided to the applicant by the utility subject
to the order pursuant to a rate schedule on file during such period
with the Commission.
(3) No order may be issued under the authority of subsection (a) or (b) -which is inconsistent -with any State law which governs the retail marketing areas of electric utilities.
(4) No order may be issued mider siibsection (a) or (b) which provides for the transmission of electric energY directly to an ultimate consiimer.
(d) (1) k-nv electric utility ordered hinder subsection (a) or (b) to provide transmission services may apply to the Commission for an






53


order permitting such electric utility to cease providing all, or any portion of, such services. After public notice, notice to each affected State regulatory authority, each affected Federal power marketing agency, and each affected electric utility, and after an opportunity for an evidentiary hearing, the Commission shall issue an order terminating or modifying the order issued under subsection (a) or (b), if the electric utility providing such transmission services has demonstrated, and the Commission has found, that(A) due to changed circumstances, the requirements applicable,
under this section and section 212, to the issuance of an order
under subsection (a) or (b) are no longer met, or
(B) any transmission capacity of the utility providing transmission services under such order which was, at the tii'ne such order was issued, in excess of the capacity necessary to serve its own customers is no longer in excess of the capacity necessary for
such purposes.
No order shall be issued under this subsection pursuant to a finding under subparagraph (A) unless the Commission finds that such order is in the public interest.
(2) Any order issued under this subsection terminating or modifyinLy an order issued under subsection (a) or (b) shall(A) provide for any appropriate compensation, and
(B) provide the affected electric utilities adequate opportunity
and time to(i) make suitable alternative arrangements for any transmission services terminated or modified, and
(ii) insure that the interests of ratepayers of such utilities
are adequately protected.
(3) No order may be issued under this subsection terminating or modifying any order issued under subsection (a) or (b) if the order under subsection (a) or (b) includes terms and conditions agreed upon by the parties which(A) fix a period during which transmission services are to be
provided under the order under subsection (a) or (b), or
(B) otherwise provide procedures or methods for terminating
or modifvinLy such order (including, if appropriate, the return of the transmission capacity when necessary to take into account an increase, after the issuance of such order, in the needs of the
electric utility subject to such order for transmission capacity).
(e) As used in this section, the term facilities", means only facilities used for the generation or transmission of electric energy.

PROVISIONS REGARDING CERTAIN ORDERS REQUIRING INTERCONNECTION OR WHEELING
SEC. 212. (a) No order may be issued by the Commission under section 210 or subsection (a) or (b) of section 211 unless the Commission determines that such order(1) is not likely to result in a reasonably ascertainable uncompensated economic loss of any electric utility, qualifying cogenerator, or qualifying small power producer, as the case may be,
affected by the order;






54


(2) wvill not place an undue burden on an electric utility, qualifying cogenerator, or qualifying small power producer, as the case
may Lie, affected by the order;
(3) will not unreasonably impair the reliability of any electric
utility affected by the order; and
(4) will not impair the ability of any electric utility affected
by the order to render adequate service to its customers.
The determination under paragraph (1) shall be based upon a showing of the parties. The Commission shall have no authority under section 210 or 211 to compel the enlargement of generating facilities.
(b) -No order may be issued under section 210 or subsection (a) or
(b) of section 211 unless the applicant for such order demonstrates that lie is ready, willing, and able to reimburse the party subject to such order for(1) in the case of an order under section 210, such party's
share of the reasonably anticipated costs incurred under such
order, and
(2) in the case of an order under subsection (a) or (b) of section 211(A) the reasonable costs of transmission services, including the costs of any enlargement of transmission f acilities,
and
(B) a reasonable rate of return on suchl costs, as appropriate, as determined by tile Commission.
(C) (1) Before issuing an order under section 21) of subsection (a) or (1b) of sect ioni 211. the (Coiimssmon shall issue a proposed order and set. a reasoviialle time for parties to tie, prlosed interconnection or transmission order to agree to terms and conditions under which such order is to be carried out, including tile apportionment of costs between them and the compensation or reimbursement reasonably dlue to any of them. Suchi proposed order shall not be reviewable or enf orceable in any court. The time set for such parties to agree to such terms and conditions may be shortened if the Commission determines that delay would jeopardize the attainment of the purposes of any proposed order. Any terms anld conditions agreed to by thle parties shall be subject to thle approval of the Commission.
(2) (A1) If tile parties agree as provided in paragraphi (1) within thle time set by the Commission and the Commission approves such agree nient, the terms and conditions sliall be included ill the final order. In the case of an order under section 210, if the parties fail to agree within the time set by the Comnmission or if the Commission (toes not approve any such agreement, the Commission shall prescribe such terms amid conditions and include such terms and conditions in the final order.
(13) In the case of any order applied for under section 211, if the parties fail to agree, within the time set by the Commission, the Comimission shall prescribe suchl terms anld conditions ill the final order.
(d) If the Comimission (toes not issue any order applied for under sectiomi 210 or .011, the Commission shall,byodrdeisuhplca tioll and state the reasons for such denial.
(e) -No provision of section 210 or 211 shall be treated(1) as requiring ally person to utilize the authority of such
section 210 or 211 ill lieu of any other authority of law, or
(2) as limiting, impairing, or otherwise affecting any authority
of the Comnmission under any other provision of law.
(f) 1) o order under sectionl 210 or 211 requiring the Tennessee Valley Authority (hereinafter ill this subsection referred to as the






55


"TVA" to take any action shall take effect for 60 days following the date of issuance of the order. Within 60 days following the issuance by the Commission of any order under section 210 or of section 211 reauirinLr the TVA to enter into any contract for the sale or delivery of power, the Commission may on its own motion initiate, or upon petition of any aggrieved person shall initiate, an evidentiary hearing to determine whether or not such sale or delivery would result in violation of the third sentence of section 15d(a) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831n-4), hereinafter in this subsection referred to as the TVA Act.
(2) Upon initiation of any evidentiary hearing under paragraph
(1), the Commission shall give notice thereof to any applicant who applied for and obtained the order from the Commission. to any electric utility or other entity subject to such order, and to the public, and shall promptly make the determination referred to in paragraph (1). Upon initiation of such hearing, the Commission shall stay the effectiveness of the order under section 210 or 211 until whichever of the followin dates is applicable) the date on which there is a final determination (including
any judicial review thereof under paragraph (3)) that no such
violation would result from such order, or
(B) the date on which a specific authorization of the Congress
(within the meaning of the third sentence of section 15d (a) of the
TVA Act) takes -effect.
(3),Any determination under paragraph (1) shall be reviewable only in the appropriate court of the United States upon petition filed by any aggrieved person or municipality within 60 days after such determination, and such court shall have jurisdiction to grant appropriate relief. Any applicant, who applied for and obtained the order under section 210 or 211, and any electric utility or other entity subject to such order shall have the right to intervene in any such proceeding in such court. Except for review by- such court (and any appeal or other review by an appellate court of the United States), no court shall have jurisdiction to consider any action brought by any person to enjoin the carrying out of any order of the Commission under section 210 or section 211 requiring the TVA to take any action on the grounds that such action requires a specific authorization of the Congress pursuant to the third sentence of section 15d (a) of the TVA Act.









PART III-LICENSEES AND PUBLIC
UTILITIES; PROCEDURAL AND
ADMINISTRATIVE PROVISIONS
ACCOUNTS, RECORDS, AND MEMORANDA
Accounts, rec- SECTION 301. (a) Every licensee. and public utility ords, memoranda. shall make, keep and preserve for such periods, such
Licensees and accounts records of cost-accounting prcdrscorrepublic utilities I, prcdrs
shall make, spon dence, memoranda, papers, books, and other records keep, and preserve accounts, as the Commission may by rules and regulations prerecord-z, etc.
scribe as necessary or appropriate for purposes of
the administration of this Act, including accounts,
records, and memoranda of the generation, transmission, distribution, delivery, or sale of electric energy,
the furnishing of services or facilities in connection
therewith, and receipts and expenditures with respect Proviso.-Pub- to any of the foregoing: Provided, however, That lie utilities not
relieved from nothing in this Act shall relieve any public utility keeping accounts, memo- from keeping any accounts, memoranda, or records randa, and records required which such public utility may be required to keep by by State laws. y
Commission orune atort of the laws of ayState. The
may prescribe o ne uioh n
a system of Commission may prescribe a system of accounts accounts.
to be kept~ by licensees and public utilities and may
classify such licensees and public utilities and prescribe a system of accounts for each class. The Commission, after notice and opportunity for hearing,
may determine by order the accounts in which particular outlays and receipts shall be entered, charged, or
Burden of credited. The burden of proof to justify every accountproof to justify
accounting en- ing entry qusindby teCommission shall. be on tries on person teqetoe h
making enr.teperson making, authorizing, or requiring such
Commission entry, and the Commission may suspend a charge or may suspend
charges and credit pending submission of satisfactory proof in credits.
support thereof. [ 16 U.S.C. 82-5(a)]
Commission (b) The Commission shall at~ all times have access
has access to
and right to to and the right to inspect and examine all accounts, inspect accounts, records, records, and memoranda of licensees and public utilietc.I
ties, and it, shall be the duty of such licensees and






57


public utilities to furnish to the Commission, within guch reasonable time as the Commission may order, any information with respect thereto which the Commission may by order require, including copies of maps, contracts, reports of engineers, and other data, records, and papers, and to grant to all agents of the Commission free access to its property and its accounts, Licensees and utilities to furrecords, and memoranda when requested so to do. nish Commission with inNo member, officer, or employee of the Commission 1ormationin the matter of
shall divulge any fact or information which may come contracts, engineering reto his knowledge during the course of examination of ports, etc. books or other accounts, as hereiribefore provided, except insofar as he may be directed by the Commission Information not to be
or by a court. [16 U.S.C. 825 (b) divulged.
(c) The books, accounts, memoranda, and records
of any person who controls, directly or indirectly, a Companies controlling
licensee or public utility subject to the jurisdiction of licensees and public utilities
the Commission and of an other company controlled subject to
y Commission
by such person, insofar as they relate to transactions examination. with or the business of such license-e or public utility, shall be subject to examination, on the order of the Commission. [16 U.S.C. 825 (c) ]
RATES OF DEPRECIATION
SEC. 302. (a) The Commission may, after hearing, require licensees and public utilities to carry a proper and adequate depreciation account in accord_ Depreciation account.
ance with such rules, regulations, and forms of account as the Commission may prescribe. The Commission may, from time to time, ascertain and determine, and Commission
may require
by order fix, the proper and adequate rates of depre- licensees and public utilities
citation of the several classes of property of each to carry adepreclatlon aclicensee and public utility. Each licensee and public count. utility shall conform its depreciation accounts to the rates so ascertained determined and fixed. The licensees Commission I may determine
and public utilities subject to the jurisdiction of the and fix rate of Commission shall not charge to operating expenses depreciation. any depreciation charges on classes of property Depreciation charges shall
other than those prescribed by the Commission, or not be charged to operating
charge with respect to any class of property a percentage expense unless authorized.
of depreciation other than that prescribed therefor by the Commission. No such licensee or public utility









shall in any case include in any form under its operating or other expenses any depreciation or other charge or expenditure included elsewhere as a depreciation charge or otherwise under its operating or other expenses. Jurisdiction of Nothing in this section shall limit the power of a State State commission not limited commission to determine in the exercise of its jurisby this section.
diction, with respect to any public utility, the percentage rate of depreciation to be allowed, as to any class of property of such public utility, or the composite depreciation rate, for the purpose of determining rates or
charges. [16 IT.S.C. 825a (a)]J
Commission (b) The Commission, before prescribing ayrules may prescribed rules and re- or reuirements as to accountsrcds ormeoad quirements as reI eod, mmrna
accounts, or as to depreciation rates, shall notify each State records, etc.
commission having jurisdiction with respect to any Opportunity to public utltyivovd and shall gv esnbeopr State commis- uiiyiv~egv esn~eopr
sion to present tunity to each such commission to present its views, views and recommendations,.n shall receive anid consider such views and recoinmendations. [16 U.S.C. 825a (b) ]

REQUIREMENTS APPLICABLE TO AGENCIES OF THE UNITED STATES
Agencies of SEC. 303. All agnisof the UieStesengaged United States aece ntd~ae
subject to pro- in the generation and sale of electric energy for ultivisions relative
to accounts, mate distribution to the public shall be subject, as to records, etc.
all facilities used for such generation and sale, and as to the electric energy sold by such agency, to the provisions of sections 301 and 302 hereof, so far as may be practicable, and shall comply with the provisions of such sections and with the rules and regulations of the Commission thereunder to the same extent as may be retired in the case of ai public utility. [16 U.S.C.
825b]I

PERIODIC AND SPECIAL REPORTS Licensees and SEC. 304. (a) Every licensee and every public utility public utilities
shall file re- shall file with the Commission such annual and
ports.other periodic or special reports as the Commission
may by rules and regulations or order prescribe as necessary or appropriate to assist the Commission in Form and con- the poe diitaino hsAt h oms
tents of reports poe diitaino hsAt h oms
may be pre- sion may prescribe the manner and form in which
se~bed.such reports shall be made, and require from such






59


persons specific answers to all questions upon which the Commission may need information. The Commission may require that such reports shall include, among other things, full information as to assets and liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of project and other facilities, cost of maintenance and operation of the project and other facilities, cost of renewals and replacement of the project works and other facilities, depreciation, generation, transmission, distribution' delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provision for currently determining such costs and Current deterother facts. Such reports shall be made under oath costs, etc.o unless the Commission otherwise specifies. [16 U.S.C. Reports under 825c (c) ]oah
(b) It shall be unlawful for any person willfully Wilu delay
to hnder deay, r obtrut th makngfilig, rane orebsrucio to hiderin making filkeeping of any information, document, report, memo- ing, and keepIng of record
randum, record, or account required to be made, filed, accounts, etc., I unlawful.
or kept under this Act or any rule, regulation, or order thereunder. [ 16 U.S.C. 825c (b) ]

OFFICIALS DEALING IN SECURITIES;
INTERLOCKING DIRECTORATES
SEc. 305. (a) It shall be unlawful for any officer or Unlawful for
officers or direcdirector of any public utility to receive for his own tors to benefit from sale and
benefit, directly or indirectly, any money or thing of Issuance of value in respect of the negotiation, hypothecation, orseuie. sale by such public utility of any security issued or to be issued by such public utility, or to share in any of the proceeds thereof, or to participate in the making or paying of any dividends of such public utility from Dividends shall not be paid
any funds properly included in capital account. [16 from funds incuded in capiU.S.C. 825d (a)] tlmcons
(b) After six months from the date on which this Holdng of fle Part takes effect hl eulwu o n esno ietrI
Itsalbunaflfraypro more than one
to hold the position of officer or director of more than public utility.
Officer or direcone public utility or to hold the position of officer or torof utility director of a public utility and the position of officer authorized to maktutility
or director of any bank, trust company, banking asso- seuiisor enciation, or firm that is authorized by law to under- In eecrcal







60


write or participate in the marketing of securities of a public utility, or officer or director of any company supplying electrical equipment to such public utility, unless the holding of such positions shall have been authorized by order of the Commission, upon due showing in form and manner prescribed by the Commission, that neither public nor private interests will be adversely affected thereby. The Commission shall not grant any such authorization in respect of such positions held on the date on which this Part takes effect, unless application for such authorization is filed with the Commission within sixty days after that date. 16 U.S.C. 825d (b) I
(c) (1) On or before April 30 of each year, any person, who, during the calendar year preceding the filing date under this subsection, was an officer or director of a public utility and who held, during such calendar year, the position of officer, director, partner, appointee, or representative of any other entity listed in paragraph
(2) shall file with the Commission, in such form and manner as the Commission sha.11 by rule prescribe, a written statement concern'ng such positions held by such person. Such statement shall be available to the public.
(2) The entities listed for purposes of paragraph (1) are as follows(A) any investment bank, bank holding company, foreign
bank or subsidiary thereof doing business in the United States, insurance company, or any other organization primarily enLa-aed in the business of providing financial services or credit,
a mutual savings bank, or a savings and loan association;
(B) any company, firm, or organization which is authorized
by law to underwrite or participate in the marketing of securities of a public utility;
(C) any company, firm, or organization which produces or
supplies electrical equipment or coal, natural gas, oil, nuclear
fuel, or other fuel, for the use of any public utility;
(D) any company, firm, or organization which during any
one of the 3 calendar years immediately preceding the filing date was one of the 20 purchasers of electric energy which purchased (for purposes other than for resale) one of the 20 largest annual amounts of electric energy sold by such public utility (or by any public utility which is part of the same holding company system) during any one of such three calendar
years;
(E) any entity referred to in subsection (b) ; and
(F) any ccanpany, firm, or organization which is controlled
by any company, firm, or organization referred to in this paragraph.
On or before January 31 of each calendar year, each public utility shall publish a list, pursuant to rules prescribed by the Commission, of the purchasers to which subparagraph (D) applies, for purposes of any filing under paragraph (1) of such calendar year.
(3j For purposes of this subsection(A) The term "public utility" includes any company which
is a part of a holding company system which includes a, registered holding company, unless no company in such system
is an electric utility.
(B) The terms "holding company", 44re Ostered holding com
pany l and "holding company system" have the same meaning as when used in the Public Utility Holding Company Act of
1935.






61

COXPLAIN711
SEC. 306. Any person, State, municipality, or State
commission complaining of anything done or omitted to be'done by any licensee or public utility in contravention of the provisions of this Act may apply to the Commission by petition which shall briefly state the facts, whereupon a statement of the complaint thus made shall be forwarded by the Commission to such licensee or public utility, who shall be called upon to satisfy the complaint or to answer the same in writing within a reasonable time to be specified by the Commission. If such licensee or public utility shall not satisfy the complaint within the time specified or there shall appear to be any reasonable ground for investigating such complaint, it shall be the duty of the Commission to investigate the matters complained of in such manner and' by such means as it shall find proper.
[16 U.S.C. 825e]

IWVESTIGATIOWS BY COMMISSION; ATTENDANCE OF
WITNESSES; DEPOSITIONS
SEC. 307. (a) The Commission may investigate any
facts, conditions, practices, or matters which it may find necessary or proper in order to determine whether any person has violated or is about to violate any provisions of this Act or any rule, regulation, or order thereunder, or to aid in the enforcement of the provisions of this Act or in prescribing rules or regulations thereunder, or in obtaining information to

















49-791 0 79 5






62


serve as a basis for recommending further legislation concerning the matters to which this Act relates. The Commission may permit any person to file with it a Any person statement in writing under oath or otherwise, as it mnent cocernshall determine, as to any or all facts and circum- sbett n stances concerning a matter which may be the subject of investigation. The Commission, in its discretion, Commission
9 may publish Inmay publish or make available to State commissions fomtoncn information concerning any such subject. [16 U.S.C. vestigations. 825 f (a) ]
(b) For the purpose of any investigation or any Mebro
other proceeding under this Act, any member of the may administer
Comissonor any officer designated by it, is matlons, ubempowered to administer oaths and affirmations, sub- compltheiratpena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, contracts, agreements, or other records which the Commission finds relevant or material to the inquiry. Such attendance of witnesses and the production of any such records may be required from any place in the United States at any designated place of hearing. Witnesses summoned by the Commis- D~esinatd sion to appear before it shall be paid the same fees ing. and mileage that are paid witnesses in the courts of the United States. [16 U.S.C. 825f (b)] Fees and mileage of wit(c) In case of contumacy by, or refusal to obey a nesses.
subnena isetoan pesnthComsin ayAid of court
issud t, ay prso, th Comisionmaymay be Invoked invoke the aid of any court of the United States within in cases of contumacy or rethe jurisdiction of which such investigation or pro- f usal to obey subpena.
ceedingy is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, contracts, agreements, and other records. Such court may issue an Court may order appearorder requiring such person to appear before the Coin- ance of witnesses and
mission or member or officer designated by the Coin- production of records.
mission, there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question ;- and any failure to obey such order Failure to obey order punishof the court may be punished by such court as a con- able as acn of thetempt. tempt thereof. All process in any such case may be served in the judicial district whereof such person is Servc of an inhabitant or wherever he may be found or may poes






63


be doing business. Any person who willfully shall fail or refuse to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, Misdemeanor memoranda, contracts, agreements, or other records, for failure to
a :ear.and if in his or its power so to do, in obedience to the pe tlfy
subpoena of the Commission, shall be guilty of a misFine and im- demeanor and upon conviction, shall, be subject to a prisonment 9
upon convic- fine of not more than $1000 or to imprisonment for
tion. 9
a term of not more than one year, or both. [16 U.S.C.
825f (c) ]
Testimony by (d) The testimony of any witness may be taken, at deposition.
the instance of a party, in any proceeding or investigation pending before the Commission, by deposition, at any time after the proceeding is at issue. The Commission may also order testimony to be taken Deposition may by deposition in any proceeding or investigation pendbe taken by
anyone author- ing before it, at any stage of such proceeding or
lzed to adminlater oaths. investigation. Such depositions may be taken before Counsel or any person authorized to administer oaths not being
parties In interest may not of counsel or attorney to either of the parties, nor take deposition.
interested in the proceeding or investigation. Reasonable Notice of depo- notice must first be given in writing by the party sition to opposite party. or his attorney proposing to take such deposition to
the opposite party or his attorney of record, as either may be nearest, which notice shall state the name of the witness and the time and place of the taking of his deposition. Any person may be compelled to appear and depose, and to produce documentary evidence, witnesses may in the same manner as witnesses may be compelled
be compelled to
make depost- to appear and testify and produce documentary evidence tion.
Testimony before the Commission as hereinbefore provided. Such
shall be reduced I
to writing and testimony shall be reduced to writing by the person subscribed to
by deponent. taking the deposition, or under his direction, and shall,
after it has been reduced to writing, be subscribed by
the deponent. [ 16 U.S.C. 825f (d) ]
Deposition may (e) If a witness whose testimony may be desired be taken in
foreign country. to be taken by deposition be in a foreign country, the
deposition may be taken before an officer or person
designed by the Commission, or agreed upon by the
parties by stipulation in writing to be filed with the
Commission. All depositions must be promptly filed
with the Commission. [ 16 U.S.C. 825f (e) ]






64


(f) Witnesses whose depositions are taken as
authorized in this Act, and the person or officer taking 'ees allowed
the same, shall be entitled to the same fees as are paid for like services in the courts of the United States. [16 U.S.C. 825f (f]






















HEARINGS; RULES OF PROCEDURE
SEC. 308. (a) Hearings under this Act may be held Hearings. before the Commission, any member or members thereof or any representative of the Commission Aeinyamebe r designated by it, and appropriate records thereof shall re~entative oFy Commission
be kept. In any proceeding before it, the Commission, mayrcnduct in accordance with such rules and regulations as it Records of 4ZY hearings shall
may prescribe, may admit as a party any interested be kept.
Parties to
State, State commission, municipality, or any repre- hearings. sentative of interested consumers or security holders, or any competitor ofi a party to such proceeding, or any other person whose participation in the proceeding may be in the public interest. [ 16 U.S.C. 825g (a)]
(b) All hearings, investigations, and proceedings Rules of practice and proceunder this Act shall be governed by rules of practice dur for hearand procedure to be adopted by the Commission, and in the conduct thereof the technical rules of evidence






65

Technical rules need not be applied. No informality in any hearing, of evidence not
applicable to investigation, or proceeding or in the manner of taking hearings.
Informality In testimony shall invalidate any order, decision, 'rule, or bearings not
fatal. regulation issued under the authority of this Act.
[16 U.S.C. 820g(b) ]
ADMINISTRATIVE POWERS OF COMMISSION
RULES, REGULATIONS AND ORDERS
Powers of SEC. 309. The Commission shall have power to perCommission.
form any and all acts, and to prescribe, issue, make,
amend, and rescind such orders, rules, and regulations
as it may find necessary or appropriate to carry out
the provisions-of this Act. Among other things, such
Commission rules and regulations may define accounting, technical, may define
terms. and trade terms used in this Act; and may preCommission
may prescribe scribe the form or forms of all statements declarations forms for ap- I I
plications, re- applications, and reports to be filed with the Comports, etc.
mission, the information which they shall contain,
Effective date and the time within which they shall be filed. Unless of rules and
regulations. a different date is specified therein, rules and regulations ?n
of the Commission shall be effective thirty days after
Effective date publication in the manner which the Commission shall of orders.
prescribe. Orders of the Commission shall be effective
on the date and in the manner which the Commission
shall prescribe. For the purposes of its rules and regulaPersons and tions the Commission may classify persons and matters matters within I
Jurisdiction of within its jurisdiction and prescribe different requireCommission
may be classt- ments for different. classes of persons or matters. All fled.
rules and regulations of the Commission shall be filed Rules and reg- with its secretary and shall be kept. open in convenient ulations shall
be open-in con- form for public inspection and examination during venient form
for public in- reasonable business hours. [ 16 U.S.C. 82 05h] spection.
APPOINTMENT OF OFFICERS AND EMPLOYEES
SEC. 310. The Commission is authorized to appoint and
Appointment fix the compensation of such officers. attorneys, examinof officers, attorneys and ers and experts as may be necessary for carrying out its
exper Q. 1 .1
functions under this Act, without regard to the provi-






66


sions of other laws applicable to the employment and Proisions of lwofU.S.
compensation of officers and employees of the United relevant to emStates; and the Commission may, subject to civil-servi~c mesto laws, appoint such other officers and employees as arenoaplcbe necessary for carrying out such functions and fix their salaries in accordance with the Classification Act of 1949. [16 U.S.C. 825i]
INVESTIGATIONS RELATING TO ELECTRIC ENERGY
SEC. 311. In order to secure information necessary
or appropriate as a basis for recommending legislation, Investigations the Commission is authorized and directed to conduct eration, tran8investigations regarding the generation, transmission, of energy authorized
distribution, and sale of electric energy, however pro-andret. duced, throughout the United States and its possessions, whether or not otherwise subject to the jurisdiction of the Commission, including the generation, transmission, distribution, and sale of elecric energy by any agency, authority, or instrumentality of the United States, or of any State or municipality or other political subdivision of a State. It shall, so far as practicable, secure and keep 'commission shall keep curcurrent information regarding the ownership, operation, rtinora-n management, and control of all facilities for such capacity and output; the
generation, transmission, distribution, and sale; the cost of distriI I button, transcapacity and output thereof and the relationship be- mission, and generation of
tween the two; the cost of generation, transmission, energy ; rates, and distribution; the rates, charges, and contracts in service to conrespect of the sale of electric energy and its service to the reltin of suc fatsetc.
residential, rural, commercial, and industrial consumers and other purchasers by private and public agencies; and the relation of any or all such facts to the development of navigation, industry, commerce, and the national defense. The Commission shall report to Congress the results of investigations made under authority of this section. [16 {JS.C. 825j] Reports of InL vestigations to Congress.
PUBLICATION AND SALE OF REPORTS
SEC. 312. The Commission may provide for the publication of its reports and decisions in such form and manner as may be best adapted for public informatio anduseand is authorized to sell at reasonable Publication
matio anduseand sale of prices copies of all maps, atlases, and reports as it may reports.






67


from time to time publish. Such reasonable prices may
include the cost of compilation, composition, and reproCommission duction. The commission is also authorized to make authorized to
perform special Such charges as it deems reasonable for special statistical statistical
services, services and other special or periodic services. The
amounts collected under this section shall be deposited Receipts depos- in the Treasury to the credit of miscellaneous receipts. ited to credit of
"miscellaneous All printing for the Federal Power Commission making receipts."
use of engraving, lithography, and photolithography,
together with the plates for the same, shall be contracted Commission for and performed under the direction of the Commismay contract
for printing, inudrsc iiain n odtosa h on
making use of sI udrsc iiain n odtosa h on
engraving, Committee on Printing may from time to time prescribe, ithography,
etc., under and all other printing for the Commission shall be limitations
prescribed by done bythe Public Prne ne uhlmttosad the Joint Coin-byrrneunesuhlmtiosad mittee on conditions as the Joint Committee on Printing may Printing.
Public Printer from time to time prescribe. The entire work may be shall do all done at, or ordered thogthe Goenmn Printing other printing,.hog,~ vrmn
Proviso.-Con- Office whenever, in the judgment of the Joint Comntracts for emer- mittee on Printing, the same would be to the interest gency printing
need not be of the Government: Provided, That when the exigencies advertised.I
Proviso.- of the public service so require, the Joint Committee on Commission Printing may authorize the Commission to make may contract
with other imdaecontracts for egailthrpinand Federal agen-imeitenrvniuogping cies. photolithographing, without advertisement for proposals: Provided further, That nothing contained in
this or any other Act shall prevent the Federal Power
Commission- from placing orders with other depart.ments or establishing for engraving, lithographing, and
photolithographing, in accordance with the provisions
of section 601 and 602 of the Act of June 30, 1932
(47 Stat. 417), providing for interdepartmental work.
[16 U.S.C. 825k]

REHEAR NGS; COURT REVIEW OF ORDERS
Rehearings. SEC. 313. (a) *Any person, State, municipality, or
State commission aggrieved by an order issued by the
Commission in a proceeding under this Act to which
such person, State, municipality, or State commission Applications i pl ihntit
for rehearing isaparty may apyfor arehearingwihntry shall set forth daysatrteisac of such order. Theaplcto grounds upsateohnisaceapicto which based, for rehearing shall set forth specifically the ground
or grounds upon 'which such application is based. Upon






68


such application the Commission shall have power to grant or deny rehearing or to abrogate or modify its Commission may grant or
t7 ap Iden pi
order without further hearing. Unless the Commission ca on. acts upon the application for rehearing within thirty days after it is filed, such application may be deemed = tion
tically
to have been denied. No proceeding to review any orders denied unless Commission
of the Commission shall be brought by any person takes action thereon within
unless such person shall have made application to the 30 days. Commission for a rehearing thereon. Until the record Application for rehearing
in a proceeding shall have been filed in a court of must precede application for
appeals, as provided in subsection (b), the Commission court review of order.
may at any time, upon reasonable notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any finding or order made or issued by it under the provisions of this act. ( 16 IT.S.C. 8251 (a) ]
(b) Any party to a proceeding under this Act Review of commission orders
aggrieved by an order issued by the Commission in such by Circuit Court of
proceeding may obtain a review of such order in the Appeal,,. Circuit Court of ApIleals of the United States 11 for any circuit wherein the licensee or public utility to which the order relates is located or has its principal place of business, or in the United'States Court of Appeals for the District of Columbia, by filing in such Petition for vaview must be
court, within sixty days after the order of the Com- filed within 60 days after demission upon the application for rehearing, a written nia, of appileation for
petition praying that the order of the Commission be 'rehearing. modified or set aside in whole or in part. A copy of such petition shall forthwith be transmitted by the Service of copy of =on
clerk of the court to any member of the Commission Co n
required.
and thereupon the Commission shall file with the court the record upon which the order complained of was Record prepared by Commission and
entered, as provided in section 2112 of title 28, Uniteu filed with States Code.7Upon the filing of such petition -such court Court. shall have jurisdiction, which upon the' filing of the record with it shall be exclusive, to affirm, modify,






69

Upon filing of or set aside order in whole or in part. No objection transcript
Court has ex- to the order of the Commission shall be considered by clusive jurisdiction to af- orthe court unless such objection shall have been urged firm, modify, o
set aside Comn- before the Commission in the application for rehearing mission order.
Only objections Unless there is reasonable ground for failure so to do. urged before
Commission The finding of the Commission as to the facts, if supshall be con-shl sidered by ported by substantial evidence, salbe conclusive. I Court.
Findings of any party shall apply to the court for leave to adduce fact supported additional evidence, and shall show to the satisfaction by substantial
evidence are of the court that such additional evidence is material conclusive.
Additional evi- and that there were unreasonable grounds for failure to dence may be adduce such evidence in the proceedings before the Cornadduced before
Commission mission' h or a re uhadtoa vdnet
upon leave ofIthcormaoresuhadtoaeveneo Court. be taken before the Commission and to be adduced upon
the hearing in such manner and upon such terms and
Commission conditions as to the court may seem proper. The Commay modify its
finlingsby rea- Mission may modify its findings as to the facts by reason
sonof uchevidence. of additional evidence so taken, and it shall file with the
court such modified or new findings which, if supModified or new ported substantial eincshall be cnlsvand findings to beyeiec, ocuie
filed with its recommendation, if any, for the modification or Court.I
Judgment or setting aside of the orgnlorder. The judmet and decree of Court oiia uge
shall be final decree of the court, affirming, modifying, or setting subject to re- inwhl
viewby u- sid inwhoe o inpart, any such order of the preme Court.
Commission, shall be final, subject to review by the
Supreme 'Court of the United States upon certiorari
or certification as provided in sections 239 and 240 of
the Judicial Code, as amended (U.S.C., title 28, secs. 346
and 347). [16 U.S.C. 8251 (b) ]i
(c) The filing of an application for rehearing under
subsection (a) shall not, unless specifically ordered
Order of Corn- by the Commission, operate as a stay of the Conunismission Is not
stayed by ap- sion's order. The commencement of proceedings under
Siaton for reeaig or petl- Subsection (b) of this section shall not, unless speifition for review. e
cally ordered by the court, operate as a stay of the
Commissions order. [16 U.S.C. 8251(c)]
Violation of
provisions of ENFORCEMENT OF ACT, REGULATIONS AND ORDERS
act, or of rules,
regulations, or SEC. 314. (a) Whenever it shall appear to the Comnorders thereunder may be mission that any person is engaged or about to engage enjoined by action in District in any acts or practices which constitute or will conCourt.






70


stitute a violation of the provisions of this Act, or of any rule, regulation, or order thereunder, it may in its discretion bring an action in the proper District Court of the United States, the Supreme Court of the District of Columbia, or the United States courts of any Territory or other place subject to the jurisdiction of the United States, to enjoin such acts or practices and to enforce compliance with this Act or any rule, regulation, or order thereunder, and upon a proper showing a permanent or temporary injunction or decree or restraining order shall be granted without bond. The Commission may transmit such evidence as may be available concerning such -acts or practices to the Attorney General, who, in his discretion, myAttorney Genmyeral may be reinstitute the necessary criminal proceedings under this quse t n Act. [ 16 U.S.C. 82 m (a) Iproceedings.
(b) Upon application of the Commission the district
courts of the United States, the Supreme Court of D"strict courts, I upon applicathe District of Columbia, and the United States court tinby ComnI isseits ofy of any Territory or other place subject to the juris- Iandus ~"o diction of the United States shall have jurisdiction ceomndingcom to issue writs of mandamus commanding any person ply with the act or rules and
to comply with the provision of this Act or any rule, orders. regulation, or order of the Commission thereunder. [16 U.s.C. 82:-m ()) ]
(c) The Commission may employ such attorneys
as it finds necessary for proper legal 'aid and service ma mpo atof the Commission or its member in the conduct of toregal for their work, or for ,proper representation of the public In investigations or to repinteest in nvetigaion mau byresent It in
inteest in nvetigaion mad byit or cases or pro- court. ceedings pending before it, whether at the Commission's own instance or upon complaint, or to appear for or represent the Commission in any case in court; and the expenses of such employment' shall be paid out of the app1ropr~iiation1 for the (Commlission. [16 U.S.C. 825m. (c)]

GENERAL FORFEITURE PROVISION; VENUE Forfeiture for
willful failure
SEC. 315. (a) Any licensee or public utility which to ile reports, y to submit docuwillfully fails, within the time prescribed by the Coin- ments, or informainin the
mission, to comply with any order of the Commission, course of any I ~IInvestigation.






71


to file any report required under this Act or any rule or regulation of the Commission thereunder, to submit any information or document required by the-Commission in the course of an investigation conducted under this Act, or to appear by an officer or agent at any Forfeiture for hearing or investigation in response to a subpena issued willful failure
to respond to under this Act, shall forfeit to the United States an
subpena. amount not exceeding $1,000 to be fixed by the Commission after notice and opportunity for hearing. The imposition or payment of any such forfeiture shall not bar or affect any penalty prescribed in this Act Forfeitures are but such forfeiture shall be in addition to any such In addition to
other penalties. penalty. [ 16 U.S.C. 82511(a) Forfeitures (b) The forfeitures provided for in this Acd shall rayable Into
asury. be payable into the Treasury of the United States and Forfeitures re- shall be recoverable in a civil suit in the name of the coverable in
civil suit. LUnited States, brought in the district where the person
is an inhabitant or has his principal place of business, or if a licensee or public utility, in any district in which such licensee or public utility transacts business. District attor- It shall be the duty of the various district attorneys, neys to prosecute for re- under the direction of the Attorney General of the
feitres.United States, to prosecute for the recovery of
forfeitures under this Act. The costs and expenses of Costs and ex- such poeuinshall be padfrom the aporain penses of prose-prsctopadprpiton cution. for the expenses of the courts of the United States.
[16 U.S.C. 82511(b)J

GENERAL PENALTIES
Willful-viola- SEC. 316. (a) Any pesnwho willfully and knowtion of act pun- pro
Ishable by kne ingly does or causes or suffers to be done any act, and Imprison- poiie
men t. matter, or thing in this Act prhbtdor declared to
be unlawful, or who willfully and knowingly omits or fails to do any act, matter, or thing in this Act required to be done, or willfully and knowingly causes or suffers such omission or failure, shall, upon conviction thereof, be punished by a fine of not more than $5,000 or by imprisonment for not. more than two
years, or both. [16 U.S.C. S25o ( a)]i
Willful viola- (b) Ayperson wowillfully knowingly voae tion of rules, Aywoadvoae regulations, any rule, regulation, restriction, condition, or order orders, etc.,I promulgated made or imposed by the Commission under authority under Act punishable by fine. of this Act, or any rule or regulation imposed by the






72


Secretary of the Army1"I under authority of Part I Wllfl vioaof this Act shall, in addition to any other penalties and reuatie provided by law, be punished upon conviction thereof eayoth
by a fine of not exceeding $500 for each and every able by fine. day during which such offense occurs. [16 U.S.C. 825o (b) ]
JrURISDICTION OF OFFENSES; ENFORCEMENT OF
LIABILITIES AND DUTIES
SEC. 317. The District Courts of the United States, the Supreme Court of the District of Columbia, 12 and the United States courts of any Territory or other place subject to the jurisdiction of the United States shall Jurisdiction over offenses
have exclusive jurisdiction of viol-ations of this violative of provisions of
Act or the rules, regulations, and orders thereunder, act or of rules, Regulations, orand of all suits in equity and actions at law brought ders, etc., proto enforce any liability or duty created by, or to enjoin under. any violation of, this Act or any rule, regulation, or order thereunder. Any criminal proceeding shall be brought in the district wherein any act or transaction constituting the violation occurred. Any suit or action to enforce any liability or duty created by, District courts have exclusive
or to enjoin any violation of, this Act or any rule, Jurisdiction. regulation, or order thereunder may be brought in any Venue In criminal proceedsuch district or in the district wherein the defendant Ings. i ii is an inhabitant, and process in such cases may be cases. served wherever the defendant may be found. Judgments and decrees so rendered shall be subject to review as provided, in sections 128 and 240 of the Judicial Judgments and decrees subject
Code, as amended (U.S.C., title 28, secs. 225 and 347). to review as provided by
No costs shall be assessed against the Commission in Judicial Code. any judicial proceeding by or against the Commission Costs, cannot be
y assigned
tinder this Act. [16 U.S.C. 8251)] against Commission.
CONFLICT OF JURISDICTION
SEC. 318. If, with respect to the issue, sale, or guaranty Conflict of Juof a security, or assumption of obligation or liabilityridcon in respect of a security, the method of keeping accounts, the filing of reports, or the acquisition or disposition of any security, capital assets, facilities, or any other. subject matter, any person is subject both to a require- Public Utility ment of the Public Utility Holding Company Act of Holding Company Act.






73


1935 or of a rule, regulation, or order thereunder and to a requirement of this Act or of a rule, regulation, or order thereunder, the requirement of the Public Utility Holding Company Act of 1935 shall apply to such person, and such person shall not be subject to the requirement of this Act, or of any rule, regulation, or order thereunder, with respect to the same subject matter, unless the Securities and Exchange Commission has exempted such person from such requirement of the Public Utility Holding Company Act of 1935, in which ca%. the requirements of this Act shall apply to such
person. [16 U.S.C. 825q]

USC 825q-1 OFFICE OF PUBLIC PARTICIPATION
SEC. 319. (a) (1) There shall be an office in the Conunission to be
known as the Office of Public Participation (hereinafter in this section referred to as the "Office").
(2) (A) The Office shall be administered by a Director. The Director shall be appointed by the Chairman with the approval of the Commission. The Director may be removed during his term of office by the Chairman, with the approval of the Commission, only for
inefficiency, neglect of duty, or malfeasance in office.
(B) The term of office of the Director shall be 4 years. The Director shall be responsible for the discharge of the functions and duties of the Office. He shall be appointed and compensated at a rate not in excess of the maximum rate prescribed for GS-18 of the General Schedule under section 5332 of title 5 of the United States
Code.
(3) The Director may appoint, and assign the duties of, employees of such Office, and with the concurrence of the Commission lie may fix the compensation of such employees and procure temporary and intermittent services to the same extent as is authorized
under section 3109 of title 5, United States Code.
(b) (1) The Director shall coordinate assistance to the public with
respect to authorities exercised by the Commission. The Director shall also coordinate assistance available to persons intervening or participating or proposing to intervene or participate in proceedings before the Commission..
(2) The Commission may, under rules promulgated by it, provide
compensation for reasonable attorney's fees, expert witness fees, and other costs of intervening or participating in any proceeding, before the Commission to any Nerson whose intervention or participation substantially contribute to the approval, in whole or in part, of a position advocated by such person. Such compensation may be paid
only if the Commission has determined that(A) the proceeding is significant, and
(B) such person's intervention or participation in such proceedina without receipt of compensation constitutes a signifi.cant financial hardship to him.
(3) Nothing in this subsection affects or restricts any rights of
any intervenor or participant under any other applicable law or rule
of law.
(4) There are authorized to be appropriated to the Secretary of
Energy to be used by the Office for purposes of compensation of persons under the provisions of this subsection not to exceed $500,000 for the fiscal year 1978, not to exceed $2,000,000 for the fiscal year 1979, not to exceed $2,200,000 for the fiscal year 1980, and not to
exceed $2,400,000 for the fiscal year 1981.






74

SEPARABILITY OF PROVISION
SEC. 320. If any provision of this Act, or the application' of such provision to any person or circumstance, shall be held invalid, the remainder of the Act, and the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. [16 U.S.C. 825r]
SHORT TITLE
Src. 321. This Act may be cited as the "Federal Power Act." [16 U.S.C. 791a]




























PUBLIC UTILITY HOLDING COMPANY ACT OF 193(75)














PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

[Public-No. 333-74th Congress]
AN ACT To provide for control and regulation of public-utility holding companies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Con gress assemnb~ed, That this Act may be cited as the "Public Utility Act of 1935."
TITLE I-CONTROL OF PUBLIC-UTILITY HOLDING COMPANIES S
NECESSITY FOR CONTROL OF HOLDING COMPANIES

SEC. 1. (a) Public-utility holding companies and their subsidiary companies are affected with a national public interest in that, among other things, (1) their securities are widely marketed and distributed by mean 's of the mails and instrumentalities of interstate commerce and are sold to a large number of investors in different States; (2) their service, sales, construction, and other contracts and arrangements are often made and performed by means of the mails and instrumentalities of interstate commerce; (3) their subsidiary public-utility company *ies often sell and transport gas and electric energy by the use of means and instrumentalities of interstate commerce;- (4) their practices in respect of and control over subsidiary companies often materially affect the interstate commerce in which those companies engage; (5) their activities extending over many States are not susceptible of effective control by any State and make difficult, if not impossible, effective State regulation of public-utility companies.
(b) Upon the basis of facts disclosed by the reports of the Federal Trade Commission made pursuant to S. Res. 83 (Seventieth Congress, first session), the reports of the Committee on Interstate and Foreign Commerce, House of Representatives, made pursuant to H. Res. 59 (Seventy-second Congress, first session) and H. J. Res. 572 (Seventysecond Congress, second session) and otherwise disclosed and ascertained, it is hereby declared that the national public interest, the interest of investors in the securities of holding companies and their subsidiary companies and affiliates, and the interest of consumers of electric energy and natural and manufactured gas, are or may be adversely affected(1) when such investors cannot obtain the information necessary to appraise the financial position or earning power of the issuers, because of the absence of uniform standard accounts;
(77)





'49-791 0 79 6






78

when such securities are issued without the approval or consent of the States having jurisdiction over subsidiary public-utility companies; when such securities are issued upon the basis of fictitious or unsound asset values having no fair relation to the sums invested in or the earning capacity of the properties and upon the basis of paper profits from intercompany transactions, or in anticipation of excessive revenues from subsidiary public-utility
companies; when such securities are issued by a subsidiary publicutility company under circumstances which subject such company to the burden of supporting an overcapitalized structure and tend
to prevent voluntary rate reductions:
(2) when subsidiary public-utility companies are subjected to
excessive cliarges for services, construction work, equipment, and materials, or enter into transactions in which evils result from an absence of arm's-length bargaining or from restraint of free and independent competition; when service, management, construction. and other contracts involve the allocation of charges among subsidiary public-utility companies in different States so as to present problems of regulation which cannot be dealt with
effectively by the States;
(3) when control of subsidiary public-utility companies affects
the accounting practices and rate, dividend, and other policies of such companies so as to complicate and obstruct State regulation of such companies, or when control of such companies is exerted
through disproportionately small investment;
(4) when the growth and extension of holding companies bears
no relation to economy of management and operation or the integration and coordination of related operating properties; or
(5) when in any other respect there is lack of economy of management and operation of public-utility companies or lack of efficiency and adequacy of service rendered by such companies, or lack of effective public regulation, or lack of economies in the
raising of capital.
(c) When abuses of the character above enumerated become persistent and wide-spread the holding company becomes an agency which, unless regulated, is injurious to investors, consumers, and the general public; and it is hereby declared to be the policy of this title, in accordance with which policy all the provisions of this title shall be interpreted, to meet the problems and eliminate the evils as enumerated in this section, connected with public-utility holding companies which are engaged in interstate commerce or in activities which directly affect or burden interstate commerce; and for the purpose of effectuating such policy to compel the simplification of public utility holdinig-colnpany systems and the elimination therefrom of properties detrimental to the proper functioning of such systems, and to provide as soon as practicable for the elimination of public-utility holding companies except as otherwise expressly provided in this title.
DEFINITIONS
SEc. 2. (a) When used in this title, unless the context otherwise requires(1) "Person" means an individual or company.






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(2) "Company" means a corporation, a partnership, an association, a joint-stock company, a business trust, or an organized group of persons, whether incorporated or not: or any receiver, trustee, or other liquidating agent of any of the foregroingr in his capacity as such.
(3) "Electric utility company" means any company which owns or operates facilities used for the generations transmission, or distribution of electric energyv for sale, other than sale to tenants or employees of the company operating such facilities for their own use and not for resale. The Comimission, upon application, shall by order declare a company operating any such facilities not to be an electric utility company if the Commission finds that (A) such company is primarily engraged in one or more businesses other than the business of an electric utility c ompany, and by reason of the small amount of electric energy so d by such company it is not necessary in the public interest or for the protection of investors or consumers that such company be considered an electric utility company for the purposes of this title, or (B) such company is one operating within a single State, and substantially all of its outstanding securities are owned directly or indirectly by another company to which such operating company sells or furnishes electric energy which it generates: such other company uses and does not resell such electric energy, is engaged primarily in manufacturing (other than the manuf acturing of electric energy or gas) and is not controlled by any other company; and by reason of the small amount of electric energy sold or furnished by such operating company to other persons it is not necessary in the public interest or f or the protection of investors or consumers that it be considered an electric utility company for the purposes of this title. The fllinz of an application hereunder in good faith shall exempt such company (and the owner of the facilities operated by such company) from the application of this paragraph until the Commission has acted upon such application. As a condition to the entry of any such order, and as a part thereof, the Commission may require application to be made periodically for a renewal of such order, and may require the filing of such periodic or special reports regarding 'the business of the company as the Commission may find necessary or appropriate to insure that such company continues to be entitled to such exemption during the period for which such order is effective. The Commission, upon its own motion or upon application, shall revoke such order whenever it finds that the conditions specified in clause (A) or (B) are not satisfied in the case of such company. Any action of the Commission under the preceding sentence shall be by order. Application under this paragraph may be made by the company in respect of which the order is to be issued or by the owner of the facilities operated by such company. Any order issued under this paragraph shall apply equally to such company and such owner. The Commission may by rules or regulations conditionally or uncondition ally provide that any specified class or classes of companies which it determines to satisfy the conditions specified in clause (A) or (B), and the owners of the facilities






80

operated by such companies, shall not be deemed electric utility companies within the meaning of this paragraph.
(4) "Gas utility company" means any company which owns or operates facilities used for the distribution at retail (other than distribution only in enclosed portable containers, or distribution to tenants or employees of the company operating such facilities for their own use and not for resale) of natural or manufactured gas for heat, light, or power. The Commission, upon application, shall by order declare a company operating any such facilities not to be a gas utility company if the Commission finds that (A) such company is primarily engaged in one or more businesses other than the business of a gas utility company, and (B) by reason of the small amount of natural or manufactured gas distributed at retail by such company it is not necessary in the public interest or for the protection of investors or consumers that such company be considered a gas utility company for the puriposes of this title. The filing of an application hereunder in good faith shall exempt such company (and the owner of the facilities operated by such company) from the application of this paragraph until the Commission has acted upon such application. As a condition to the entry of any such order, and as a part thereof, the Commission may require application to be made periodically for a renewal ofl suich order, and mjay require the filngof such periodic or special reports regarding the business of the company as the Commission may find necessary .or appropriate to insure that such company contlines to be entitled to such exemption during the period for which such order is effective. The Commission, upon its ow n motion or upon application, shall revoke such order whenever it finds that the conditions specified in clauses
(A) and (B) are not satisfied in the case of such company. Any action of the Commission under the preceding sentence shall be by order. Application under this paragraph may be made by the company in respect of which the order is to be issued or by the owner of the facilities operated by such company. Any order issued under this paragraph shall apply equally to such company and such owner. The Commission may by rules or regulations conditiona ly or unconditionally provide that any specified class or classes of companies which it determines to satisfy the conditions specified in clauses (A) and (B), and the owners of the facilities operated by such companies, shall not be deemed gas utility companies within the meaning of this paragraph.
(5) "Public-utility company" means an electric utility company or a gas utility company.
(6) "Commission" means the Securities and Exchange Commission.
(7) "Holding company" means(A) any company which directly or indirectly owns, controls, or holds with power to vote, 10 per~ centumi or more of the outstanding voting securities of a public-utility company or of a company which is a holding company by virtue of this clause or clause (B), unless the Commnission, as hereinafter provided, by order declares such company not to be a
holding company; and






81
(B) any person which the Commission determines, after
notice and opportunity for hearing, directly or indirectly to exercise (either alone or pursuant to an arrangement or understanding with one or more other persons) such a controlling influence over the management or policies of any publicutility or holding company as to make it necessary or appropriate in the public interest or for the protection of investors or consumers that such person be subject to the Obligations, duties, and liabilities imposed in this title upon holding
company.
The Commission, upon application, shall by order declare that a company is not a holding company under clause (A) if the Commission finds that the applicant (i) does not, either alone or pursuant to an arrangement or understanding with one or more other persons, directly or indirectly control a public-utility or holding company either through one or more intermediary persons or by any means or device whatsoever, (ii) is not an intermediary company through which such control is exercised, and (iii) does not, directly or indirectly, exercise (either alone or pursuant to an arrangement or understanding with one or more other persons) such a controlling influence over the management or policies of any public-utility or holding company as to make it necessary or appropriate in the public interest or for the protection of investors or consumers that the applicant be subject to the obligations, duties, and liabilities imposed in this title upon holding companies. The filing of an application hereunder in good faith by a company other than a registered holding company shall exempt the applicant from any obligation, duty, or liability imposed in this title upon the applicant as a holding company, until the Commission has acted upon such application. Within a reasonable time after the receipt of any application hereunder, the Commission shall enter an order granting, or. after notice and opportunity for hearing, denying or otherwise disposing .of, such application. As a condition to the entry of any order granting such application and as a part of any such order, the Commission may require the applicant to apply periodically for a renewal of such order and to do or refrain f! om doing such acts or things, in respect of exercise of voting r- zhts, control over proxies, designation of officers and directors, e' istence of interlocking officers, directors and other relationships, and submission of periodic or special reports regarding affiliations or intercorporate relationships of the applicant, as the Commission may find necessary or appropriate to ensure that in the case of the applicant the conditions specified in clauses (i), (ii), and (iii) are satisfied during the period for which such order is effective. The Commission, upon its own motion or upon application of the company affected, shall revoke the order declaring such company not to be a holding company whenever in its judgment any condition specified in clause (i), (ii), or (iii) is not satisfied in the case of such company, or modify the terms of such order whenever in its judgment such modification is necessary to ensure that in the case of such company the conditions specified in clauses (i), (ii), and (iii) are satisfied during the period for which such order is effective. Any






82

action of the Commission under the preceding sentence shall be by order.
(8) "Subsidiary company" of a specified holding company means(A) any company 10 per centum or more of the outstanding voting securities of which are directly or indirectly owned, controlled, or held with power to vote, by such holding company (or by a company that is a subsidiary company of such holding company by virtue of this clause or clause (B)), unless the Commission, as hereinafter provided, by order declares such company not to be a subsidiary company
of such holding company; and
(B) any person the management or policies of which the
Commission, after notice and opportunity for hearing, determines to be subject to a controlling influence, directly or indirectly, by such holding company (either alone or pursuant to an arrangement or understanding with one or more other persons) so as to make it necessary or appropriate in the public interest or for the protection of investors or consumers that such person be subject to the obligations, duties, and liabilities imposed in this title upon subsidiary companies of holding companies.
The Commission, upon application, shall by order declare that a company is not a subsidiary company of a specified holding company under clause (A) if the Commission finds that
(i) the applicant is not controlled, directly or indirectly, by such holding company (either alone or pursuant to an arrangement or understanding with one or more other persons) either through one or more intermediary persons or by any means or device whatsoever, (ii) the applicant is not an intermediary company through which such control of another company is exercised, and (iii) the management or policies of the applicant are not subject to a controlling influence, directly or indirectly, by such holding company (either alone or pursuant to an arrangement or understanding with one or more other persons) so as to make it necessary or appropriate in the public interest or for the protection of investors or con_ mers that the applicant be subject to the obligations, duties. d liabilities imposed in this title upon subsidiary companies of .olding companies. The filing of an application hlereunder in got- faith shall exempt the applicant from a. obligation, duty. or liability imposed in this title upon the appicant as a subsidiary c mpany of such specified holding company until the Commission has acted upon such application. Within a reasonable time after the receipt of any application hereunder, the Commission shall enter an order granting, or, after notice and opportunity for hearing. denying or otherwise disposing of, such application. As a condition to the entry of, and as a part of. any order granting such application, the Commission may require the applicant to apply periodically for a renewal of such order and to file such periodic or special reports regarding the affiliations or intercorporate relationships of the applicant as the Commission may find necessary or appropriate to enable it to determine whether in the case of the applicant the conditions






83

specified in clauses (i),, (ii), and (iii), are satisfied during the period for which such order is effective. The Commission, upon its own motion or upon application, shall revoke the order declarmg such company not to be a subsidiary company whenever in its judgment any condition specified in clause (1) (ii) or (iii) is not satisfied in ihe case of such company, or modify the terms of such order whenever in its judgment such modification is necessary to ensure that in the case of such company the conditions n I in clauses (i), (ii), and (iii) are satisfied dUrin
specified cr the
period for which such order is effective. Any action of the Commission under the preceding sentence shall be by order. Any application under this paragraph may be made by the holding company or the company in respect of which the order is to be entered, but as used in this paragraph the term "applicant" means only the company in respect of -Nvhich the order is to be entered.
(9) "Holding-company system" means any holding company, together with all its subsidiaiT companies, and all mutual service companies (as defined in paragraph (13) of this subsection) of which such holding company or any subsidiary company thereof is a member company (as defined in paragraph (14) of this subsection).
(10) "Associate company" of a company means any company in the same holding company system with such company.
(11) "Affiliate" of a spelled company means(A) any person that directly or in-directly owns, controls,
or holds with power to vote, 5 per centum or more of the outstanding voting securities of such specified company;
(B) any company 5 per centum or more of whose outstanding voting securities are owned, controlled, or held with power to vote, directly or indirectly, by such specified
company;
(C) any individual who is an officer or director of such
specified 'company, or of any company which is an affiliate
thereof under clause (A) of this paragraph; and
(D) any person or class of persons that the Commission
determines, after appropriate notice and opportunity for hearing, to stand in such relation to such specified company that there is liable to be such as absence of arm's-length bargaining in transactions between them as to make it necessary or appropriate in the public interest or for the protection of investors or consumers that such person be subject to the obligations, duties, and liabilities imposed in this title upon
affiliates, of a company.
(12) "Registered holding company" means a person whose reo-istration is in effect under section 5.
(13) "Mutual service company" means a company approved as a mutual service company under section 13.
(14) "Member company" means a company which is a member of an association or group of companies mutually served by a mutual service company.
(15) "Director" means any director of a corporation or any individual who performs similar functions in respect of any company.






QA
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(16) "Security" means any note, draft, stock, treasury stock, bond, debenture, certificate of interest or participation in any profit-sharing agreement or in any oil, gas, other mineral royalty or lease, any collate ral-trust certificate, reorganization certificate or subscription transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, receiver's or trustee's certificate, or, in general, any instrument commonly known as a "security"; or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guaranty of, assumption of liability on, or warrant or right to subscribe to or purchase, any of the foregoing.
(17) "Voting security" means any security presently entitling the owner or holder thereof to vote in the direction or management of the affairs of a company, or any security issued under or pursuant to any trust, acrreenient, or arrangement whereby a trustee or trustees or agent or agents for the owner or holder of such security are presently entitled to vote in the direction or management of the aff airs of a company; and a specified per centum of the outstanding voting securities of a company means such amount of the outstanding voting securities of such company as entitles the holder or holders thereof to cast said specified per centum of the aggregate votes which the holders of all the outstanding voting securities of such company are entitled to cast in the direction or management of the affairs of such company.
(18) "Utility assets" means the facilities, in place, of any electric utility company or gas utility conipany for the production, transmission, transportation, or distribution of electric energy or natural or manufactured gas.
(19) "Service contract" means any contract, agreement, or understanding whereby a person undertakes to sell or furnish, for a charge, any managerial, financial, legal, engineering, purchasing, marketing, auditing, statistical, advertising, publicity, tax, research, or any other service, information, or data.
(20) "Sales contract" means any contract, agreement, or understanding whereby a person undertakes to sell, lease, or furnish, for a charge, any goods, equipment, materials, supplies, appliances, or similar property. As used in this paragraph the term "property"" does not include electric energy or natural or manufactured gas.
(21) "Construction contract" means any contract, agreement, or understanding for the construction, extension, improvement, maintenance, or repair of the facilities or any part thereof of a company for a charge.
(22) "Buy", "acquire", "acquisition", or "purchase" includes any purchase, acquisition by lease, exchange, merger, consolidation, or other acquisition.
(23) "Sale" or "sell" includes any sale, disposition by lease, exchange or pledge, or other disposition.
(24) "State" means any State of the United States or the District of Columbia.
(25) "United States", when used in a geographical sense, means the States.






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(26) "State commission" means any commission, board, agency,
or officer, by whatever name designated, of a State, municipality, or other political subdivision of a State which under the law of such State has jurisdiction to regulate public-utility companies.
(270 "State securities commission"' means any commission,
board, agency, or officer, by whatever name designated, other than a State commission as defined in T)ara.,orraDh (26) of this subsec.tion, which under the law of a State has jurisdiction to regulate, approve, or control the issue or sale of a security by a company.
(28) "-Interstate commerce"" means trade, commerce, transportation, transmission, or communication among the several States
or between any State and any place outside thereof.
(29) "Integrated public-utility s -stem" means(A) As applied to electric utility companies, a system consisting of one or more units of generating plants and/or transmission lines and/or distributing facilities, whose utility assets, whether owned by one or more electric utility companies, are physically interconnected or capable of physical interconnection and which under normal conditions may be economically operated as a single interconnected and coordinated system confined in its operations to a single area or region, in one or more States, not so large as to impair (considering the state of the art and the area or region affected) the advantages of localized management, efficient operation,
and the effectiveness of regulation; and
(B) As applied to gas utility companies, a system consisting of one or more gas utility companies which are so located and related that substantial economies may be effectuated by being operated as a single coordinated system confined in its opera tions to a single area or region, in one or more States, not so large as to impair (considering the state of the art and the area or region affected) the advantages of localized management, efficient operation, and the effectiveness of regulation: Provided. That gas utility companies derivinLy natural gas from a common source of supply may be deemed to
be included in a single area or region.
(b) No person shall be deemed to be a holding company under clause (B) of paragraph (7) of subsection (a), or a subsidiary company under clause (B) of paragraph (8) of such subsection, or an affiliate under clause (D) of paragraph (11) of such subsection, unless the Commission, after appropriate notice and opportunity !or hearing has issued an order declaring such person to be a holding company, a subsidiary company, or an affiliate, or declaring a class of which such -person is a member to be affiliates. Such an order shall not become effective for at least thirty days after the mailing of a copy thereof to the person thereby declared to be a holding company, subsidiary company, or affiliate; or. in the case of determination of affiliates by classes, until at least thirty days after appropriate publication thereof in such manner as the Commission shall determine. Whenever the Commission, on its own motion or upon application by the person icleclared to be a holding company, subsidiary company, or affiliate, finds that the circumstances which gave rise to the issu-






86
ance of any such order no longer exist, the Commission shall by order revoke such order.
(c) No provision in this title shall apply to, or be deemed to include, the United States, a State, or any political subdivision of a State, or any agency, authority, or instrumentality of any one or more of the foregoing, or any corporation which is wholly owned directly or indirectly by any one or more of the foregoing, or any officer, agent, or employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto.

POWER TO MTAKE PARTICULAR EXEMPTIONS REGARDING HOLDING
COMPANIES, SUBSIDIARY COMPANIES, AND AFFILIATES
SEc. 3. (a) The Commission, by rules and regulations upon its own motion, or by order upon application, shall exempt any holding company, and every subsidiary company thereof as such, from any provision or provisions of this title, unless and except insofar as it finds the exemption detrimental to the public interest or the interest of investors or consumers, if(1) such holding company, and every subsidiary company
thereof which is a public-utility company from Which such holding company derives, directly or indirectly, any material part of its income, are predominantly intrastate in character and carry on their business substantially in a single State in which such holding company and every such subsidiary company thereof are
organized;
(2) such holding company is predominantly a public-utility
company whose operations as such do not extend beyond the
State in which it is organized and States contiguous thereto;
(3) such holding company is only incidentally a holding company, being primarily engaged or interested in one or more businesses other than the business of a public-utility cornp any and (A) not deriving, directly or indirectly, any material part of its income from any one or more subsidiary companies, the principal business of which is that of a public-utility company, or (B) deriving a material part of its income from any one or more such subsidiary companies, if substantially all the outstanding securities of such companies are owned, directly or indirectly, by
,such holdings company;
(4) such holding company is temporarily a holding company
:solely by reason of the acquisition of securities for purposes of 'liquidation or distribution in connection with a bona fide debt previously contracted or in connection with a bona fide arrangemeiit for the underwriting or distribution of securities;~ or
(5) such holding company is not, and derives no material part
of its income, directly or indirectly, from any one or more subSidiary companies which are, a company or companies the principal business of which within the United States is that of a publicutility company.
(6) The Commission, by rules and regulations upon its own motion, or by order upon application, shall exempt any subsidiary company, as such, of a holding company from any provision or provisions of this title, the applications of which to such sulbsidiar'y com paniy the Coninis-






87

sion finds is not necessary in the public interest or for the protection of investors, if such subsidiary company derives no material part of its income, directly or indirectly, from sources within the United States, and neither it nor any of its subsidiary companies is a public-utility company operating in the United States.
(c) Within a reasonable time after the receipt of an application for exemption under subsection (a) or (b), the Commission shall enter an order granting, or, after notice and opportunity for hearing, denying or otherwise disposing of such application. The filing of an application in good faith under subsection (a) by a person other than a registered holding company shall exempt the applicant from anv obligation, uty, or liability imposed in this title upon the applicant as a holding company until the Commission has acted upon such application. The filing of an application in good faith under subsection (b) shall exempt the applicant from any obligation, duty, or liability imposed in this title upon the applicant as a subsidiary company until the Commission has acted upon such application. Whenever the Commission, on its own motion, or upon application by the holding company or any subsidiary company thereof exempted by any order issued under subsection (a), or by the subsidiary company exempted by any order issued under subsection (b), finds that the circumstances which gave rise to the issuance of such order no longer exist, the Commission shall by order revoke such order.
(d) The Commission may, by rules and regulations, conditionally or unconditionally exempt any specified class or classes of persons from the obli(rations duties, or liabilities imposed upon such persons as subsidiary companies or affiliates under any provision or provisions of this title, and may provide within the extent of any such exemption that such specified class or classes of persons shall not be deemed subsidiary companies or affiliates within the meaning of any such provision or provisions, if and to the extent that it deems the exemption necessary or appropriate in the public interest or for the protection of investors or consumers and not contrary to the purposes of this title.

TRANSACTIONS BY UNREGISTERED HOLDING C031PANIE4 S
SEC. 4. (a) After December 1, 1935, unless a holding company is registered under section 5, it shall be unlawful for such holding company, directly or indirectly
(1) to sell, transport, transmit, or distribute, or own or operate
any utility assets for the transportation, transmission, or diitribution of, natural or manufactured gas or electric energy in interstate commerce;
(2) by use of the mails or any means or instrumentality of
interstate commerce, to negotiate, enter into, or take any step in the perFormance of, any service, sales, or construction contract undertaking to perform services or construction NVork, for, or sell
goods to any public-utility company or holding company;
(3) to distribute or make any public offering for sale or exchange of any security of such holdup" company, any subsidiary
n Z77
company or affiliate of such holding company, any public-utility





00
00
company, or any holding company, by use of the mails or any means or instrumentality of interstate commerce, or to sell any such security having reason to believe that such security, by use of the mails or any means or instrumentality of interstate commerce, will be distributed or made the subject of a public offering;
(4) by use of the mails or any means or instrumentality of
interstate commerce, to acquire or negotiate for the acquisition of any security or utility assets of any subsidiary company or affiliate of such holding company, any public-utility company, or
any holding company;
(5) to engage in any business in interstate commerce; or
(6) to own, control, or hold with power to vote, any security
of any subsidiary company thereof that does any of the acts enumerated in paragraphs (1) to (5), inclusive, of this subsection.
(b) Every holding company which has outstanding any security any of which, by use of the mails or any means or instrumentality of interstate commerce, has been distributed or made the subject of a public offering subsequent to 'January 1, 1925, and any of which security is owned or held on October 1, 1935 (or, if such company is not a holding company on that date, on the date such company becomes a holding company) by persons not resident in the State in which such holding company is organized, shall register under seetion 5 on or before December 1, 1935, or the thirtieth day after such company becomes a holding company, whichever date is later.

REGISTRATION OF HOLDING COMPANIES
SEC. 5. (a) On or at any time after October 1, 1935, any holding company or any person proposin(r to become a holding company may recrister'by filing with the Commission a notification of registration, in such form as the Commission may by rules and regulations prescribe as necessary or appropriate in the public interest or for the protection of investors or consumers. A person shall be deemed to be registered upon receipt by the Commission of such notification of registration.
(b) It shall be the duty of every registered holding company to file with the Commission, within sueb reasonable time after registration as the Commission shall fix by rules and regulations or order, a registration statement in such form as the Commission shall by rules and regulations or order prescribe as necessary or appropriate in the public interest or for the protection of investors or consumers. Such registration statement shall include(1) such copies of the charter or articles of incorporation, partnership, or agreement, with all amendments thereto, and the bykn
laws, trust indentures, mortgages, underwriting arrangements, voting-trust agreements, and similar documents, by whatever name C71 known, of or relating to the registrant or any of its associate companies as the Commission may by rules and regulations or order prescribe. as necessary or appropriate in the public interest or f or the protection of investors or consumers;
(2) such information in such form and in such detail relating
to, and copies of such documents of or relating to, the registrant and its associate companies as the Commission may by rules and







regulations or order prescribe as necessary or appropriate in the public interest or'for the protection of investors or consumers in
respect of(A) the organization and financial structure of such companies and the nature of their business;
(B) the terms, position, rights, and privileges of the different classes of their securities outstanding; ?n
(C) the terms and underwriting arrangements under which
their securities, during not more than the five preceding years, have been offered to the public or otherwise disposed of and the relations of underwriters to, and their interest in,
such companies;
(D) the directors and officers of such companies, their remuneration, their interest in the securities of, their material contracts with, and their borrowings from, any of such
companies;
(E) bonus and profit-sharing arrangements;
(F) material contracts, not made in the ordinary course
of business, and service, sales, and construction contracts;
(G) options in respect of securities;
(H) balance sheets for not more than the five preceding
fiscal years, certified, if required by the rulesand regulations
of the Commission, by an independent public accountant;
(1) profit and loss statements for not more than the five
preceding fiscal years, certified, if required by the rules and regulations of the Commission, by an independent public
accountant;
(3) such further information or documents regarding the registrant or its associate companies or the relations between them as the Commission may by rules and reg ulations or order prescribe as necessa7 or appropriate in the public interest or for the protection of investors or consumers.
(c) The Commission by such rules and regulations or order as it deems necessary or appropriate in the public interest or for the protection of investors or consumers, may permit a registrant to file a preliminary registration statement without complying with the provisions of subsection (b) ; but every registrant shall file a complete registration statement with the Commission within such reasonable period of time as the Commission shall fix by rules and regulations or order, but not later than one year after the date of registration.
(d) Whenever the Commission, upon application, finds that a registered holding company has ceased to be a holding company, it shall so declare by order and upon the taking effect of such order the registration of such company shall, upon such terms and conditions as the Commission finds and in such order prescribes as necessary for the protection of investors, cease to be in effect. The denial of any such application by the Commission shall be by order.
UNLAVMUL SECURITY TRANSACTIONS BY REGISTERED HOLDING AND SUBS,11DIARY COMPANIES
SEC. 6. (a) Except in accordance with a declaration effective under section 7 and with the order under such section permitting such declara-






90

tion to become eff ective, it shall be unlawful for any registered holding company or subsidiary company thereof, by use of th'e mails or any means or instrumentality of interstate commerce, or otherwise, directly or indirectly (1) to issue or sell any security of such company; or (2) to exercise any privilege or right to alter the priorities, preferences, voting power, or other rights of the holders of an outstanding security of such company.
(b) The provisions of subsection (a) shall not apply to the issue, renewal, or guaranty by a registered holding cornpany or subsidiary company thereof of a note or draft (including the pledge of any security as collateral therefor) if such note or draft (1) is not part of a public offering, (2) matures or is renewed for not more than nine months, exclusive of days of grace, after the date of such issue, renewal, or guaranty thereof, and (3) aggregrates (together with all other then outstanding notes and drafts of a maturity of nine months or less, exclusive of clays of grace, as to which such company is primarily or secondarily liable) not more than 5 per centum of tile principal amount and par value of the other securities of such company then outstanding, or Suich greater per centum thereof as the Commissio6n upon application may by order authorize as necessary or appropriate in the public interest or for the protection of investors or consumers. In the case of securities having no principal amount or no par value, the value for the purposes of this subsection shall be the f air market value as of the date of issue. The Commission by rules and regulations or order, subject to such terms and conditions as it deems appropriate in the public interest or for the protection of investors or consumers, shall exempt from the provisions of subsection (a) the issue or sale of any security by any subsidiary company of a registered holding company, if the issue and sale of such Isecurity are Solely for the purpose of financing the business of such subsidiary company and have been expressly authorized by the State commission of the State in which such subsidiary company is organized and doing business, or if the issue and sale of such secu rity are Solely for the purpose of financing the business of such subsidiary company when such subsidiary company is not a holding company, a public-utility company, an investment company, or a fiscal or financing agency of a holding company, a public utility company, ox' an investment company. The provisions of Subsection (a) shall not apply to the issue, by a registered holding company or subsidiary company thereof, of a Security issued pursuant to the terms of any Security outstanding on January 1, 193'a- giving the holder of Suich outstanding security the right to convert such outstanding security into another security of the same issuer or of another person, or giving the right to subscribe to another security of the same issuer or another issuer. Within ten days after any issue, Sale, renewal, or guaranty exempted from the applicant of subsection (a) by or under authority of this subsection, such holding company or Subsidiary company thereof shall file with the Commission a certificate of notification in Suich form. and setting forth such of the information required in a declaration under section 7 as the Commission may by rules and regulations oxr order prescribe as necessary oxr appropriate in the public interest or for the protection of investors or consumers.
(c) It shall be unlawful, by use of the mails or any means or instrumentality of interstate commerce, or otherwise, for any registered








holding company or any subsidiary company thereof, directly or indirectly(1) to sell of offer for sale or to cause to be sold or offered for
sale, from house to liouse, any Security of such holding company;
or
(2) to cause any officer or employee of any subsidiary company
of such holdiner company to sell or cause to be sold any security
of such holding company.
As used in this subsection the term "house" shall not include an office used for business purposes.
DECLARATIONS BY REGISTERED HOLDING AND SUBSIDIARY C0311CPANIES IN
RESPECT OF SECURITY TRANSACTIONS
SEC. 7. (a) A registered holding company or subsidiary company thereof may file a declaration with the Commission. regarding any of the acts enumerated in subsection (a) of section 6, in such form as the Commission may by rules and regulations prescribe as necessary or appropriate in the public interest or for the protection of investors or consumers. Such declaration shall include
(1) such of the information and documents which are required
to be filed in order to recrister a security under section 7 of the Securities Act of 1933, as amended, as the Commission may e rules and regulations or order prescribe as necessary or appropriate in the public interest or for the protection of investors or
consumers; and
(2) such additional information, in such form and detail, and
such documents regarding the declarant or any associate company thereof, the particular security and compliance with such State laws as may apply to the act in question as the Commission may by rules and regulations or order prescribe as necessary or appropriate in the public interest or for the protection of investors
or consumers.
(b) A declaration filed under this section shall become effective within such reasonable period of time after the filing thereof as the Commission shall fix by rules and regulations or order, unless the Commission prior to the expiration of such period shall have issued an order to the declarant to show cause why such declaration should become effective. Within a reasonable time after an opportunity for hearing upon an order to show cause under this subsection, unless the declarant shall withdraw its declaration, the Commission shall enter an order either permitting such declaration to become effective as filed or amended or ref using to permit such declaration to become effective. Amendments to a declaration may be made upon such terms and conditions as the Commission may prescribe. (c) The Commission shall not permit a declaration regarding the issue or sale of a security to become effective unless it finds that(1) such security is (A) a common stock having a par value
and being without preference as to dividends or distribution over, and having at least equal voting rights with, any outstanding security of the declarant; (B) a bond (i) secured*by a first lien on physical property of the declarant, or (ii) secured by an obligation of a subsidiary company of the declarant secured by a first






92

lien on physical property of such subsidiary company, or (iii) secured by'any other assets of the type and character which the Commission by rules and regulations or order may prescribe as appropriate in the public interest or for the protection of investors; (C) a guaranty of, or assumption of liability on, a security of another company; or (D) a receiver's or trustee's certificate
duly authorized by the appropriate court or courts: or
(2) such security is to be issued or sold solely (A) for the
purpose of refunding. extending, exchanging, or discharging an outstanding security of the declarant and/or a predecessor company thereof or for the purpose of effecting a merger, consolidation or other reorganization; (B) for the purpose of financing the business of the declarant as a public-utility company; (C) for the purpose of financing the business of the declarant, when the declarent is neither a holding company nor a public-utility cornp~any; and/or (D) for necessary and urgent corporate purposes of the declarant where the requirements of the provisions of paragraph (1) would impose an unreasonable financial burden upon the declarant and are, not necessary or appropriate in the public
interest or for the protection of investors or consumers; or
(3) such security is one the issuance of which was authorized
by the company prior to January 1, 1935, and which the Commission by rules and regulations or order authorizes as necessary or appropriate in the public interest or for the protection of investors
or consumers.
(d) If the requirements of subsections (c) and (g) are satisfied, the Commission shall perm-it a declaration regarding the issue or,--ale of a security to become effective unless the Commission finds that(1) the security is not reasonably adapted to the security structure of the declarant and other companies in the same holdingcompany system;
(2) the security is not reasonably adapted to the earning power
of the declar'ant;
(3) financing by the issue and sale of the particular security is
not necessary or appropriate to the economical and efficient operation of a business in which the applicant lawfully is engaged or
has an interest;
(4) the fees, commissions, or other remuneration. to whomsoever paid, directly or indirectly, in connection with the issue, sale,
or distribution of the security are not reasonable;
(5) in the case of a security that is a guaranty of, or assumption of liability on, a security of another company. the circumstances are such as to constitute the making of such guaranty or the assumption of such liability an improper risk for the
declarant: 0or
(6) the terms and conditions of the issue or sale of the security
are detrimental to the public interest or the interest of investors
or consumers.
(e) If the requirements of subsection (g) are satisfied, the Commission shall permit a declaration to becomeQ effective regarding the exercise of a privilege or right to alter the priorities, preferences, voting power, or other rights of the holders of an outstanding security un-








less the Commission finds that such exercise of such privilege or right will result in an unf air or inequitable distribution of voting power among holders of the securities of the declarant or is otherwise detrimntal to the public interest or the interest of investors or consumers.
(f) Any order permitting a declaration to become effective may contain such terms and conditions as the Commission finds necessary to assure compliance with the conditions specified in this section.
(g) If a State commission or State securities commission, having jurisdiction over any of the acts enumerated in subsection (a) of section 6, shall inform the Commission, upon request by the Commission for an opinion or otherwise, that State laws applicable to the act in question have not been complied with, the Comnmission shall not permit a declaration recrardhng the act in question to become effective until and unless the Commission is satisfied that such compliance has been effected.

ACQUIRING INTE REST IN ELECTRIC AND GAS UTILITY COMPANIE S SERVING SAMN]E TE RRITORY

SEC. 8. Whenever a State law prohibits, or requires approval or authorization of, the ownership or operation by a single company of the utility assets of an electric utility company and a gas utility company serving substantially the same territory, it shall be unlawful for a registered holding company, or any subsidiary corn pany thereof, by use of the mails or any means or instrumentality of interstate commerce, or otherwise(1) to take any step, without the express approval of the State
commiSsion of such State, which results in its having a direct or indirect interest in an electric utility company and a gas utility
company Serving substantially the same territory; or
(2) if it already has any such interest, to acquire, without the
express approval of the State commission, any direct or indirect interest in an electric utility company or gas utility company serving substantially the same territory as that served by such
companies in which it already has an interest.

ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER INTERESTS

SEC. 9. (a) Unless the acquisition has been approved by the Commission under section 10, it shall be unlawful(1) for any registered holding company or any subsidiary company thereof, by use of the mails or any means or instrumentality of interstate commerce, or otherwise, to acquire, directly or indirectly, any securities or utility assets or any other interest in
any businesQs;
(2) for any person, by use of the mails or any means or instrumentality of interstate commerce, to acquire, directly or indi
rectly, any security of any public-utility c ompany, if such person is an affiliate, under clause (A) of paragraph (11) of subsection (a) of section 2, of such company and of any other public utility or holding company, or will by virtue of such acquisition become
such an affiliate.






94

(b) Subsection (a) shall not apply to(1) the acquisition by a public-utility company of utility assets
the acquisition of which has been expressly authorized by a State
commission; or
(2) the acquisition by a public-utility company of securities
of a subsidiary public-utility company thereof, provided that both such public-utility companies and all other public-utility companies in the same holding-company system are organized in the same State, that the business of each such company in such system is substantially confined to such State, and that the acquisition of such securities has been expressly authorized by the State commission of such State.
(c) Subsection (a) shall not apply to the acquisition by a registered holding company, or a subsidiary company hereof, of(1) securities of, or securities the principal or interest of which
is guaranteed by, the United States, a State, or political subdivision of a State, or any agency, authority, or instrumentality of
tn
any one or more of the foregoing, or a y corporation which is whO113 owned, directly or indirectly, by any one or more of the
foregoing;
(2) such other readily marketable securities, within the limitation of such amounts, as the Commission may by rules and regulations prescribe as appropriate for investment of current funds and as not detrimental to the public interest or the interest of
investors or consumers; or
(3) such commercial paper and other securities, within such
limitations, as the Commission may by rules and regulations or order p7scribe as appropriate in the ordinary course of business of a registered holding company or subsidiary company thereof and as not detrimental to the public interest or the interest of
investors or consumers.
APPROVAL OF ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER INTERESTS
SEC. 10. (a) A person may apply for approval of the acquisition of securities or utility assets, or of any other interest in any business, by filing an application in such form as the Commission may by rules and regulations prescribe as necessary or appropriate in the public interest or for the protection of investors and consumers. Such application shall include(1) in the case of the acquisition of securities, such information
and copies of such documents as the Commission may by rules and regulations or order prescribe as necessary or appropriate in he public interest or for the protection of investors or consumers
in respect of(A) the security to be acquired, the consideration to be
paid therefor, and compliance with such State laws as may
apply in respect of the issue, sale, oracquisition thereof,
(B) the outstanding securities of the company whose security is to be acquired, the terms, position, rights, and privileges of each class and the options in respect of any such
securities,