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839e. Rates
839e(a). Establishment; periodic review and revision;
confirmation and approval by Federal Energy Regulatory Commission
839e(a)(1). The Administrator shall establish, and
periodically review and revise, rates for the sale and disposition of
electric energy and capacity and for the transmission of non-Federal power.
Such rates shall be established and, as appropriate, revised to recover, in
accordance with sound business principles, the cost associated with the
acquisition, conservation, and transmission of electric power, including the
amortization of the Federal investment in the Federal Columbia River Power
System (including irrigation costs required to be repaid out of power
revenues) over a reasonable period of years and the other costs and expenses
incurred by the Administrator pursuant to this chapter and other provisions
of law. Such rates shall be established in accordance with sections 9 and 10
of the Federal Columbia River Transmission System Act (16 U.S.C. 838) [16
U.S.C. 838g and 838h], section 5 of the Flood Control Act of 1944 [16 U.S.C.
825s], and the provisions of this chapter. [Northwest Power Act, §7(a)(1),
94 Stat. 2723.]
839e(a)(2). Rates established under this section shall
become effective only, except in the case of interim rules as provided in
subsection (i)(6) of this section, upon confirmation and approval by the
Federal Energy Regulatory Commission upon a finding by the Commission, that
such rates--
839e(a)(2)(A). are sufficient to assure repayment of
the Federal investment in the Federal Columbia River Power System over a
reasonable number of years after first meeting the Administrator's other
costs, [Northwest Power Act, §7(a)(2)(A), 94 Stat. 2723.]
839e(a)(2)(B). are based upon the Administrator's
total system costs, and [Northwest Power Act, §7(a)(2)(B), 94 Stat. 2723.]
839e(a)(2)(C). insofar as transmission rates are
concerned, equitably allocate the costs of the Federal transmission system
between Federal and non-Federal power utilizing such system. [Northwest
Power Act, §7(a)(2)(C), 94 Stat. 2723.]
839e(b). General application of rates to meet general
requirements
839e(b)(1). The Administrator shall establish a rate or
rates of general application for electric power sold to meet the general
requirements of public body, cooperative, and Federal agency customers
within the Pacific Northwest, and loads of electric utilities under section
839c(c) of this title. Such rate or rates shall recover the costs of that
portion of the Federal base system resources needed to supply such loads
until such sales exceed the Federal base system resources. Thereafter, such
rate or rates shall recover the cost of additional electric power as needed
to supply such loads, first from the electric power acquired by the
Administrator under section 839c(c) of this title and then from other
resources. [Northwest Power Act, §7(b)(1), 94 Stat. 2723.]
839e(b)(2). After July 1, 1985, the projected amounts
to be charged for firm power for the combined general requirements of public
body, cooperative and Federal agency customers, exclusive of amounts charged
such customers under subsection (g) of this section for the costs of
conservation, resource and conservation credits, experimental resources and
uncontrollable events, may not exceed in total, as determined by the
Administrator, during any year after July 1, 1985, plus the ensuing four
years, an amount equal to the power costs for general requirements of such
customers if, the Administrator assumes that--
839e(b)(2)(A). the public body and cooperative
customers' general requirements had included during such five-year period
the direct service industrial customer loads which are--
839e(b)(2)(A)(i). served by the Administrator, and
[Northwest Power Act, §7(b)(2)(A)(i), 94 Stat. 2724.]
839e(b)(2)(A)(ii). located within or adjacent to the
geographic service boundaries of such public bodies and cooperatives;
[Northwest Power Act, §7(b)(1)(A)(ii), 94 Stat. 2724.]
839e(b)(2)(B). public body, cooperative, and Federal
agency customers were served, during such five-year period, with Federal
base system resources not obligated to other entities under contracts
existing as of December 5, 1980, (during the remaining term of such
contracts) excluding obligations to direct service industrial customer loads
included in subparagraph (A) of this paragraph; [Northwest Power Act,
§7(b)(2)(B), 94 Stat. 2724.]
839e(b)(2)(C). no purchases or sales by the
Administrator as provided in section 839c(c) of this section were made
during such five-year period; [Northwest Power Act, §7(b)(2)(C), 94 Stat.
2724.]
839e(b)(2)(D). all resources that would have been
required, during such five-year period, to meet remaining general
requirements of the public body, cooperative and Federal agency customers
(other than requirements met by the available Federal base system resources
determined under subparagraph (B) of this paragraph) were--
839e(b)(2)(D)(i). purchased from such customers by
the Administrator pursuant to section 839d of this title, or [Northwest
Power Act, §7(b)(2)(D)(i), 94 Stat. 2724.]
839e(b)(2)(D)(ii). not committed to load pursuant to
section 839c(b), of this section [Northwest Power Act, §7(b)(2)(D)(ii), 94
Stat. 2724.]
839e(b)(2)(D) [cont.]. and were the least expensive resources owned or
purchased by public bodies or cooperatives; and any additional needed
resources were obtained at the average cost of all other new resources
acquired by the Administrator; and [Northwest Power Act, §7(b)(2)(D), 94
Stat. 2724.]
839e(b)(2)(E). the quantifiable monetary savings,
during such five-year period, to public body, cooperative and Federal agency
customers resulting from--
839e(b)(2)(E)(i). reduced public body and cooperative
financing costs as applied to the total amount of resources, other than
Federal base system resources, identified under subparagraph (D) of this
paragraph, and [Northwest Power Act, §7(b)(2)(E)(i), 94 Stat. 2724.]
839e(b)(2)(E)(ii). reserve benefits as a result of
the Administrator's actions under this chapter [Northwest Power Act,
§7(b)(2)(E)(ii), 94 Stat. 2724.]
839e(b)(2)(E)[cont.]. were not achieved. [Northwest Power Act,
§7(b)(2)(E), 94 Stat. 2724.]
839e(b)(3). Any amounts not charged to public body,
cooperative, and Federal agency customers by reason of paragraph (2) of this
subsection shall be recovered through supplemental rate charges for all
other power sold by the Administrator to all customers. Rates charged public
body, cooperative, or Federal agency customers pursuant to this subsection
shall not include any costs or benefits of a net revenue surplus or
deficiency occurring for the period ending June 30, 1985, to the extent such
surplus or deficiency is caused by--
839e(b)(3)(A). a difference between actual power
deliveries and power deliveries projected for the purpose of establishing
rates to direct service industrial customers under subsection (c)(1) of this
subsection, and [Northwest Power Act, §7(b)(3)(A), 94 Stat. 2724.]
839e(b)(3)(B). an overrecovery or underrecovery of the
net costs incurred by the Administrator under section 839c(c) of this title
as a result of such difference. [Northwest Power Act, §7(b)(3)(B), 94 Stat.
2724.]
839e(b)(3) [cont.]. Any such revenue surplus or deficiency incurred shall
be recovered from, or repaid to, customer over a reasonable period of time
after July 1, 1985, through a supplemental rate charge or credit applied
proportionately for all other power sold by the Administrator at rates
established under other subsections of this section prior to July 1, 1985.
[Northwest Power Act, §7(b)(3), 94 Stat. 2724-5.]
839e(b)(4). The term "general requirements" as used in
this section means the public body, cooperative or Federal agency customer's
electric power purchased from the Administrator under section 839c(b) of
this title, exclusive of any new large single load. [Northwest Power Act,
§7(b)(3), 94 Stat. 2725.]
839e(c). Rates applicable to direct service industrial
customers
839e(c)(1). The rate or rates applicable to direct
service industrial customers shall be established--
839e(c)(1)(A). for the period prior to July 1, 1985,
at a level which the Administrator estimates will be sufficient to recover
the cost of resources the Administrator determines are required to serve
such customers' load and the net costs incurred by the Administrator
pursuant to section 839c(c) of this title, based upon the Administrator's
projected ability to make power available to such customers pursuant to
their contracts, to the extent that such costs are not recovered through
rates applicable to other customers; and [Northwest Power Act, §7(c)(1)(A),
94 Stat. 2725.]
839e(c)(1)(B). for the period beginning July 1, 1985,
at a level which the Administrator determines to be equitable in relation to
the retail rates charged by the public body and cooperative customers to
their industrial consumers in the region. [Northwest Power Act, §7(c)(1)(B),
94 Stat. 2725.]
839e(c)(2). The determination under paragraph (1)(B) of
this subsection shall be based upon the Administrator's applicable wholesale
rates to such public body and cooperative customers and the typical margins
included by such public body and cooperative customers in their retail
industrial rates but shall take into account--
839e(c)(2)(A). the comparative size and character of
the loads served, [Northwest Power Act, §7(c)(2)(A), 94 Stat. 2725.]
839e(c)(2)(B). the relative costs of electric
capacity, energy, transmission, and related delivery facilities provided and
other service provisions, and [Northwest Power Act, §7(c)(2)(B), 94 Stat.
2725.]
839e(c)(2)(C). direct and indirect overhead costs,
[Northwest Power Act, §7(c)(2)(C), 94 Stat. 2725.]
839e(c)(2) [cont.]. all as related to the delivery of power to industrial
customers, except that the Administrator's rates during such period shall in
no event be less than the rates in effect for the contract year ending on
June 30, 1985. [Northwest Power Act, §7(c)(2), 94 Stat. 2725.]
839e(c)(3). The Administrator shall adjust such rates
to take into account the value of power system reserves made available to
the Administrator through his rights to interrupt or curtail service to such
direct service industrial customers. [Northwest Power Act, §7(c)(3), 94
Stat. 2725.]
839e(d). Discount rates; special rates
839e(d)(1). In order to avoid adverse impacts on retail
rates of the Administrator's customers with low system densities, the
Administrator shall, to the extent appropriate, apply discounts to the rate
or rates for such customers. [Northwest Power Act, §7(d)(1), 94 Stat. 2725.]
839e(d)(2). In order to avoid adverse impacts of
increased rates pursuant to this chapter on any direct service industrial
customer using raw minerals indigenous to the region as its primary
resource, the Administrator, upon request of such customer showing such
impacts and after considering the effect of such request on his other
obligations under this chapter, is authorized, if the Administrator
determines that such impacts will be significant, to establish a special
rate applicable to such customer if all power sold to such customer may be
interrupted, curtailed, or withdrawn to meet firm loads in the region. Such
rate shall be established in accordance with this section and shall include
such terms and conditions as the Administrator deems appropriate. [Northwest
Power Act, §7(d)(2), 94 Stat. 2725.]
839e(e). Uniform rates; rates for sale of peaking
capacity; time-of-day, seasonal, and other rates
Nothing in this chapter prohibits the Administrator from establishing, in
rate schedules of general application, a uniform rate or rates for sale of
peaking capacity or from establishing time-of-day, seasonal rates, or other
rate forms. [Northwest Power Act, §7(e), 94 Stat. 2726.]
839e(f). Basis for rates
Rates for all other firm power sold by the Administrator for use in the
Pacific Northwest shall be based upon the cost of the portions of Federal
base system resources, purchases of power under section 839c(c) of this
title and additional resources which, in the determination of the
Administrator, are applicable to such sales. [Northwest Power Act, §7(f), 94
Stat. 2726.]
839e(g). Allocation of costs and benefits
Except to the extent that the allocation of costs and benefits is
governed by provisions of law in effect on December 5, 1980, or by other
provisions of this section, the Administrator shall equitably allocate to
power rates, in accordance with generally accepted ratemaking principles and
the provisions of this chapter, all costs and benefits not otherwise
allocated under this section, including, but not limited to, conservation,
fish and wildlife measures, uncontrollable events, reserves, the excess
costs of experimental resources acquired under section 839d of this title,
the cost of credits granted pursuant to section 839d of this title,
operating services, and the sale of or inability to sell excess electric
power. [Northwest Power Act, §7(g), 94 Stat. 2726.]
839e(h). Surcharges
Notwithstanding any other provision of this section (except the
provisions of subsection (a) of this section), the Administrator shall
adjust power rates to include any surcharges arising under section 838b(f)
of this title, and shall allocate any revenues from such charges in such
manner as the Administrator determines will help achieve the purposes of
section 838b(f) of this title. [Northwest Power Act, §7(h), 94 Stat. 2726.]
839e(i). Procedures
In establishing rates under this section, the Administrator shall use the
following procedures:
839e(i)(1). Notice of the proposed rates shall be
published in the Federal Register with a statement of the justification and
reasons supporting such rates. Such notice shall include a date for a
hearing in accordance with paragraph (2) of this subsection. [Northwest
Power Act, §7(i)(1), 94 Stat. 2726.]
839e(i)(2). One or more hearings shall be conducted as
expeditiously as practicable by a hearing officer to develop a full and
complete record and to receive public comment in the form of written and
oral presentation of views, data, questions, and argument related to such
proposed rates. In any such hearing--
839e(i)(2)(A). any person shall be provided an
adequate opportunity by the hearing officer to offer refutation or rebuttal
of any material submitted by any other person or the Administrator, and
[Northwest Power Act, §7(i)(2)(A), 94 Stat. 2726.]
839e(i)(2)(B). the hearing officer, in his discretion,
shall allow a reasonable opportunity for cross examination, which, as
determined by the hearing officer, is not dilatory, in order to develop
information and material relevant to any such proposed rate. [Northwest
Power Act, §7(i)(2)(B), 94 Stat. 2726.]
839e(i)(3). In addition to the opportunity to submit
oral and written material at the hearings, any written views, data,
questions, and arguments submitted by persons prior to, or before the close
of, hearings shall be made a part of the administrative record. [Northwest
Power Act, §7(i)(3), 94 Stat. 2726.]
839e(i)(4). After such a hearing, the Administrator may
propose revised rates, publish such proposed rates in the Federal Register,
and conduct additional hearings in accordance with this subsection.
[Northwest Power Act, §7(i)(4), 94 Stat. 2726.]
839e(i)(5). The Administrator shall make a final
decision establishing a rate or rates based on the record which shall
include the hearing transcript, together with exhibits, and such other
materials and information as may have been submitted to, or developed by,
the Administrator. The decision shall include a full and complete
justification of the final rates pursuant to this section. [Northwest Power
Act, §7(i)(5), 94 Stat. 2726-7.]
839e(i)(6). The final decision of the Administrator
shall become effective on confirmation and approval of such rates by the
Federal Energy Regulatory Commission pursuant to subsection (a)(2) of this
section. The Commission shall have the authority, in accordance with such
procedures, if any, as the Commission shall promptly establish and make
effective within one year after December 5, 1980, to approve the final rate
submitted by the Administrator on an interim basis, pending the Commission's
final decision in accordance with such subsection. Pending the establishment
of such procedures by the Commission, if such procedures are required, the
Secretary is authorized to approve such interim rates during such one-year
period in accordance with the applicable procedures followed by the
Secretary prior to December 5, 1980,. Such interim rates, at the discretion
of the Secretary, shall continue in effect until July 1, 1982. [Northwest
Power Act, §7(i)(6), 94 Stat. 2727.]
839e(j). Cost figures to be indicated on rates schedules
and power billings
All rate schedules adopted, and all power billings rendered, by the
Administrator pursuant to this section shall indicate--
839e(j)(1). the approximate cost contribution of
different resource categories to the Administrator's rates for the sale of
energy and capacity, and [Northwest Power Act, §7(j)(1), 94 Stat. 2727.]
839e(j)(2). the cost of resources acquired to meet load
growth within the region and the relation of such cost to the average cost
of resources available to the Administrator. [Northwest Power Act, §7(j)(2),
94 Stat. 2727.]
839e(k). Statutory basis for procedures used in
establishing rates or rate schedules
Notwithstanding any other provision of this chapter, all rates or rate
schedules for the sale of nonfirm electric power within the United States,
but outside the region, shall be established after December 5, 1980, by the
Administrator in accordance with the procedures of subsection (i) of this
section (other than the first sentence of paragraph (6) thereof) and in
accordance with the Bonneville Project Act [16 U.S.C. 832 et seq.], the
Flood Control Act of 1944, and the Federal Columbia River Transmission
System Act [16 U.S.C. 838 et seq.]. Notwithstanding section 201(f) of the
Federal Power Act [16 U.S.C. 824(f)], such rates or rate schedules shall
become effective after review by the Federal Energy Regulatory Commission
for conformance with the requirements of such Acts and after approval
thereof by the Commission. Such review shall be based on the record of
proceedings established under subsection (i) of this section. The parties to
such proceedings under subsection (i) of this section shall be afforded an
opportunity by the Commission for an additional hearing in accordance with
the procedures established for ratemaking by the Commission pursuant to the
Federal Power Act [16 U.S.C. 791a et seq.]. [Northwest Power Act, §7(k), 94
Stat. 2727.]
839e(l). Rates for sales outside United States;
negotiations
In order to further the purposes of this chapter and to protect the
consumers of the region, the Administrator may negotiate, or establish,
rates for electric power sold by the Administrator to any entity not located
in the United States which shall be equitable in relation to rates for all
electric power which is, or may be, purchased by the Administrator or the
Administrator's customers from entities outside the United States. In
establishing rates other than by negotiation, the provisions of subsection (i)
of this section shall apply. In the case of any negotiation with an entity
not located in the United States, the Administrator shall provide public
notice of any proposal to negotiate such rates. Such negotiated rates shall
be not less than rates established under this chapter for nonfirm power sold
within the United States but outside the region. The Administrator shall
also afford notice of any rates negotiated pursuant to this subsection.
[Northwest Power Act, §7(l), 94 Stat. 2727.]
839e(m). Impact aid payments; formula
839e(m)(1). Beginning the first fiscal year after the
plan and program required by section 838b(d) and (h) of this title are
finally adopted, the Administrator may, subject to the provisions of this
section, make annual impact aid payments to the appropriate local
governments within the region with respect to major transmission facilities
of the Administrator, as defined in section 3(c) of the Federal Columbia
River Transmission Act [16 U.S.C. 838a(c)]--
839e(m)(1)(A). which are located within the
jurisdictional boundaries of such governments, [Northwest Power Act,
§7(m)(1)(A), 94 Stat. 2727-8.]
839e(m)(1)(B). which are determined by the
Administrator to have a substantial impact on such governments, and
[Northwest Power Act, §7(m)(1)(B), 94 Stat. 2728.]
839e(m)(1)(C). where the construction of such
facilities, or any modification thereof, is completed after December 5,
1980, and, in the case of a modification of an existing facility, such
modification substantially increases the capacity of such existing
transmission facility. [Northwest Power Act, §7(m)(1)(C), 94 Stat. 2728.]
839e(m)(2). Payments made under this subsection for any
fiscal year shall be determined by the Administrator pursuant to a
regionwide, uniform formula to be established by rule in accordance with the
procedures set forth in subsection (i) of this section. Such rule shall
become effective on its approval, after considering its effect on rates
established pursuant to this section, by the Federal Energy Regulatory
Commission, In developing such formula, the Administrator shall identify,
and take into account, the local governmental services provided to the
Administrator concerning such facilities and the associated costs to such
governments as the result of such facilities. [Northwest Power Act,
§7(m)(2), 94 Stat. 2728.]
839e(m)(3). Payments made pursuant to this subsection
shall be made solely from the fund established by section 11 of the Federal
Columbia River Transmission System Act [16 U.S.C. 838i]. The provisions of
section 13 of such Act [16 U.S.C. 838k], and any appropriations provided to
the Administrator under any law, shall not be available for such payments.
The authorization of payments under this subsection shall not be construed
as an obligation of the United States. [Northwest Power Act, §7(m)(3), 94
Stat. 2728.]
839e(m)(4). No payment may be made under this
subsection with respect to any land or interests in land owned by the United
States within the region and administered by any Federal agency (other than
the Administrator), without regard to how the United States obtained
ownership thereof, including lands or interests therein acquired or
withdrawn by a Federal agency for purposes of such agency and subsequently
made available to the Administrator for such facilities. [Northwest Power
Act, §7(m)(4), 94 Stat. 2728.]
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