17 CFR 239.33 Form F-3, for registration under the Securities Act of
1933 of securities of certain foreign private issuers offered pursuant
to certain types of transactions.
This instruction sets forth registrant requirements and transaction
requirements for the use of Form F-3. Any foreign private issuer, as
defined in Rule 405 ( 230.405 of this chapter), which meets the
requirements of paragraph (a) of this section (Registrant requirements)
may use this Form for the registration of securities under the
Securities Act of 1933 (the Securities Act) which are offered in any
transaction specified in paragraph (b) of this section (Transaction
requirements), provided that the requirements applicable to the
specified transaction are met. With respect to majority-owned
subsidiaries, see Instruction (a)(6) below.
(a) Registrant requirements. All registrants must meet the following
conditions in order to use this Form F-3 for registration under the
Securities Act of securities offered in the transactions specified in
paragraph (b) of this section:
(1) The registrant has a class of securities registered pursuant to
section 12(b) of the Securities Exchange Act of 1934 (''Exchange Act'')
or has a class of equity securities registered pursuant to section 12(g)
of the Exchange Act or is required to file reports pursuant to section
15(d) of the Exchange Act and has filed annual reports on Form 20-F, on
Form 10-K ( 240.310 of this chapter) or, in the case of registrants
described in General Instruction A. (2) of Form 40-F, on Form 40-F (
249.240f of this chapter) under the Exchange Act.
(2) The registrant (i) has been subject to the requirements of
section 12 or 15(d) of the Exchange Act and has filed all the material
required to be filed pursuant to sections 13, 14 or 15(d) for a period
of at least thirty-six calendar months immediately preceding the filing
of the registration statement on this form; and (ii) has filed in a
timely manner all reports required to be filed during the twelve
calendar months and any portion of a month immediately preceding the
filing of the registration statement and, if the registrant has used
(during the twelve calendar months and any portion of a month
immediately preceding the filing of the registration statement) Rule
12b-25(b) ( 240.12b-25(b) of this chapter) under the Exchange Act with
respect to a report or a portion of a report, that report or portion
thereof has actually been filed within the time period prescribed by a
rule.
(3) Neither the registrant nor any of its consolidated or
unconsolidated subsidiaries have, since the end of their last fiscal
year for which certified financial statements of the registrant and its
consolidated subsidiaries were included in a report filed pursuant to
section 13(a) or 15(d) of the Exchange Act: (i) Failed to pay any
dividend or sinking fund installment on preferred stock; or (ii)
defaulted (A) on any installment or installments on indebtedness for
borrowed money, or (B) on any rental on one or more long term leases,
which defaults in the aggregate are material to the financial position
of the registrant and its consolidated and unconsolidated subsidiaries,
taken as a whole.
(4) The aggregate market value worldwide of the voting stock held by
non-affiliates of the registrant is the equivalent of $300 million or
more, except that the provisions of this paragraph do not apply if the
only securities being registered are to be offered in a transaction of
the type described in (b)(2) of the Transaction Requirements.
The aggregate market value of the registrant's outstanding voting
stock shall be computed by use of the price at which the stock was last
sold, or the average of the bid and asked prices of such stock, in the
principal market for such stock as of a date within 60 days prior to the
date of filing. (See the definition of affiliate in Securities Act Rule
405 ( 230.405 of this chapter).)
(5) If the registrant is a successor registrant, it shall be deemed
to have met conditions 1, 2, 3 and 4 above if: (i) Its predecessor and
it, taken together, do so, provided that the succession was primarily
for the purpose of changing the state or other jurisdiction of
incorporation of the predecessor or forming a holding company and that
the assets and liabilities of the successor at the time of succession
were substantially the same as those of the predecessor; or (ii) all
predecessors met the conditions at the time of succession and the
registrant has continued to do so since the succession.
(6) Majority owned subsidiaries. If a registrant is a majority-owned
subsidiary, security offerings may be registered on this form if:
(i) The registrant-subsidiary itself meets the Registrant
Requirements and the applicable Transaction Requirement;
(ii) The parent of the registrant-subsidiary meets the Registrant
Requirements and the conditions of Transaction Requirement (b)(2)
(Primary Offerings of Certain Debt Securities) are met; or
(iii) The parent of the registrant-subsidiary meets the Registrant
Requirements and the applicable Transaction Requirement and fully
guarantees the securities being registered as to principal and interest.
Note: In the situations described in paragraphs (a)(6) (i), (ii),
and (iii) of this section, the parent-guarantor is the issuer of a
separate security consisting of the guarantee which must be concurrently
registered but may be registered on the same registration statement as
are the guaranteed securities. Both the parent-guarantor and the
subsidiary shall each disclose the information required by this Form as
if each were the only registrant except that if the subsidiary will not
be eligible to file annual reports on Form 20-F or Form 40-F after the
effective date of the registration statement, then it shall disclose the
information specified in Form S-3 ( 239.13 of this chapter). Rule 3-10
of Regulation S-X ( 210.3-10 of this chapter) specifies the financial
statements required.
(b) Transaction requirements. Security offerings meeting any of the
following conditions and made by registrants meeting the Registrant
Requirements above may be registered on this Form:
(1) Primary offerings by certain registrants. Securities to be
offered for cash by or on behalf of a registrant, if the financial
statements in the registrant's latest filing on Form 20-F, Form 40-F or
Form 10-K comply with Item 18 of Form 20-F.
(2) Offerings of certain debt securities. Non-convertible debt
securities to be offered for cash if such debt securities are investment
grade debt securities, as defined below. A non-convertible debt
security is an investment grade debt security if, at the time of
effectiveness of the registration statement, at least one nationally
recognized statistical rating organization (as that term is used in Rule
15c3-1(c)(2)(vi)(F) under the Exchange Act ( 240.15c3-1(c)(2)(vi)(F) of
this chapter) has rated the security in one of its generic rating
categories that signifies investment grade; typically, the four highest
rating categories (within which there may be subcategories or gradations
indicating relative standing) signify investment grade.
(3) Transactions involving secondary offerings. Outstanding
securities to be offered for the account of any person other than the
issuer, including securities acquired by standby underwriters in
connection with the call or redemption by the issuer of warrants or a
class of convertible securities. In addition, Form F-3 may be used by
affiliates to register securities for resale pursuant to the conditions
specified in General Instruction C to Form S-8 ( 239.16b of this
chapter) if the financial statements in the registrant's latest filing
on Form 20-F, Form 40-F or Form 10-K comply with Item 18 of Form 20-F.
(4) Rights offerings, dividend or interest reinvestment plans, and
conversions or warrants. Securities to be offered: (i) Upon the
exercise of outstanding rights granted by the issuer of the securities
to be offered, if such rights are granted pro rata to all existing
security holders of the class of securities to which the rights attach;
or (ii) pursuant to a dividend or interest reinvestment plan; or (iii)
upon the conversion of outstanding convertible securities or upon the
exercise of outstanding transferable warrants issued by the issuer of
the securities to be offered, or by an affiliate of such issuer. The
registration of securities to be offered or sold in a standby
underwriting in the United States or similar arrangement is not
permitted pursuant to this paragraph. See paragraphs (b) (1), (2), and
(3) of this section.
(47 FR 54776, Dec. 6, 1982, as amended at 56 FR 30055, July 1, 1991)
Editorial Note: For Federal Register citations affecting Form F-3,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
17 CFR 239.34 Form F-4, for registration of securities of certain
foreign private issuers issued in certain business combination
transactions.
This form may be used by any foreign private issuer, as defined in
rule 405 ( 230.405 of this chapter), for registration under the
Securities Act of 1933 (''Securities Act'') of securities to be issued:
(a) In a transaction of the type specified in paragraph (a) of rule
145 ( 230.145 of this chapter);
(b) In a merger in which the applicable law would not require the
solicitation of the votes or consents of all of the securityholders of
the company being acquired;
(c) In an exchange offer for securities of the issuer or another
entity;
(d) In a public reoffering or resale of any such securities acquired
pursuant to this registration statement; or
(e) In more than one of the kinds of transactions listed in
paragraphs (a) through (d) registered on one registration statement.
(56 FR 30058, July 1, 1991)
Editorial Note: For Federal Register citations affecting Form F-4,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
239.35 (Reserved)
17 CFR 239.36 Form F-6, for registration under the Securities Act of
1933 of depositary shares evidenced by American Depositary Receipts.
Form F-6 may be used for the registration under the Securities Act of
1933 (the Securities Act) of Depositary shares evidenced by American
Depositary Receipts (ADRs) issued by a depositary against the deposit of
the securities of a foreign issuer (regardless of the physical location
of the certificates) if the following conditions are met:
(a) The holder of the ADRs is entitled to withdraw the deposited
securities at any time subject only to (1) temporary delays caused by
closing transfer books of the depositary or the issuer of the deposited
securities or the deposit of shares in connection with voting at a
shareholders' meeting, or the payment of dividends, (2) the payment of
fees, taxes, and similar charges, and (3) compliance with any laws or
governmental regulations relating to ADRs or to the withdrawal of
deposited securities;
(b) The deposited securities are offered or sold in transactions
registered under the Securities Act or in transactions that would be
exempt therefrom if made in the United States; and
(c) As of the filing date of this registration statement, the issuer
of the deposited securities is reporting pursuant to the periodic
reporting requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934 or the deposited securities are exempt therefrom by
Rule 12g3-2(b) ( 240.12g3-2(b) of this chapter) unless the issuer of the
deposited securities concurrently files a registration statement on
another form for the deposited securities.
(Secs. 6, 7, 8, 10, 19(a), 48 Stat. 78, 79, 81, 85; secs. 205, 209,
48 Stat. 906, 908; sec. 301, 54 Stat. 857; sec. 8, 68 Stat. 685;
sec. 1, 79 Stat. 1051; sec. 308(a)(2), 90 Stat. 57; secs. 12, 13,
15(d), 23(a), 48 Stat. 892, 894, 895, 901; secs. 1, 3, 8, 49 Stat.
1375, 1377, 1379; sec. 203(a), 49 Stat. 704; sec. 202, 68 Stat. 686;
secs. 3, 4, 6, 78 Stat. 565-568, 569, 570-574; secs. 1, 2, 82 Stat.
454; sec. 28(c), 84 Stat. 1435; secs. 1, 2, 84 Stat. 1497; sec.
105(b), 88 Stat. 1503; secs. 8, 9, 10, 18, 89 Stat. 117, 118, 119, 155;
sec. 308(b), 90 Stat. 57; secs. 202, 203, 204, 91 Stat. 1494, 1498,
1499, 1500; 15 U.S.C. 77f, 77g, 77h, 77j, 77s(a), 78l, 78m, 78o(d),
78w(a))
(48 FR 12348, Mar. 24, 1983)
17 CFR 239.37 Form F-7, for registration under the Securities Act of
1933 of securities of certain Canadian issuers offered for cash upon the
exercise of rights granted to existing securityholders.
(a) Form F-7 may be used for the registration under the Securities
Act of 1933 (the ''Securities Act'') of the registrant's securities
offered for cash upon the exercise of rights to purchase or subscribe
for such securities that are granted to its existing securityholders in
proportion to the number of securities held by them as of the record
date for the rights offer.
(b) Form F-7 is available to any registrant that:
(1) Is incorporated or organized under the laws of Canada or any
Canadian province or territory;
(2) Is a foreign private issuer; and
(3) Has had a class of its securities listed on The Montreal
Exchange, The Toronto Stock Exchange or the Senior Board of the
Vancouver Stock Exchange for the 12 calendar months immediately
preceding the filing of this Form, has been subject to the continuous
disclosure requirements of any securities commission or equivalent
regulatory authority in Canada for a period of at least 36 calendar
months immediately preceding the filing of this Form, and is currently
in compliance with obligations arising from such listing and reporting.
For purposes of this Form, ''foreign private issuer'' shall be
construed in accordance with Rule 405 under the Securities Act.
(c) If the registrant is a successor registrant subsisting after a
statutory amalgamation, merger, arrangement or other reorganization
requiring the vote of shareholders of the participating companies (a
''business combination''), the registrant shall be deemed to meet the
36-month reporting requirement and the 12-month listing requirement of
paragraph (b)(3) of this section if:
(1) The time the successor registrant has been subject to the
continuous disclosure requirements of any securities commission or
equivalent regulatory authority in Canada, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 36 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the reporting history calculation if the reporting
histories of predecessors whose assets and gross revenues, respectively,
would contribute at least 80 percent of the total assets and gross
revenues from continuing operations of the successor registrant, as
measured based on pro forma combination of such participating companies'
most recently completed fiscal years immediately prior to the business
combination, when combined with the reporting history of the successor
registrant in each case satisfy such 36-month reporting requirement;
(2) The time the successor registrant has been subject to the listing
requirements of the specified exchanges, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 12 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the listing history calculation if the listing histories
of predecessors whose assets and gross revenues, respectively, would
contribute at least 80 percent of the total assets and gross revenues
from continuing operations of the successor registrant, as measured
based on pro forma combination of such participating companies' most
recently completed fiscal years immediately prior to the business
combination, when combined with the listing history of the successor
registrant in each case satisfy such 12-month listing requirement; and
(3) The successor registrant has been subject to such continuous
disclosure requirements and listing requirements since the business
combination, and is currently in compliance with its obligations
thereunder.
(d) The rights in connection with the transaction granted to
securityholders that are U.S. holders shall be granted upon terms and
conditions not less favorable than those extended to any other holder of
the same class of securities. The securities offered or sold upon
exercise of rights granted to U.S. holders may not be registered on this
Form if such rights are transferable other than in accordance with
Regulation S under the Securities Act.
For purposes of this Form, the term ''U.S. holder'' shall mean any
person whose address appears on the records of the registrant, any
voting trustee, any depositary, any share transfer agent or any person
acting on behalf of the registrant as being located in the United
States.
(e) This Form shall not be used if the registrant is an investment
company registered or required to be registered under the Investment
Company Act of 1940.
(f) Any non-U.S. person acting as trustee with respect to the
securities being registered shall file a Form F-X ( 239.42 of this
chapter) with the Commission at the time of filing this Form.
(56 FR 30060, July 1, 1991)
Editorial Note: Form F-7 amended at 57 FR 10615, Mar. 27, 1992.
17 CFR 239.38 Form F-8, for registration under the Securities Act of
1933 of securities of certain Canadian issuers to be issued in exchange
offers or a business combination.
(a) Form F-8 may be used for registration under the Securities Act of
1933 (''Securities Act'') of securities to be issued in an exchange
offer or in connection with a statutory amalgamation, merger,
arrangement or other reorganization requiring the vote of shareholders
of the participating companies (a ''business combination''). Securities
may be registered on this Form whether they constitute the sole
consideration for such exchange offer or business combination, or are
offered in conjunction with cash.
(b) This Form shall not be used for registration of securities if no
takeover bid circular or issuer bid circular (in the case of an exchange
offer) or information circular (in the case of a business combination)
is prepared pursuant to the requirements of any Canadian jurisdiction
due to the availability of an exemption from such requirements. (c)
This Form may not be used for registration of derivative securities
except:
(1) Warrants, options and rights, provided that such securities and
the underlying securities to which they relate are issued by the
registrant, its parent or an affiliate of either; and
(2) Convertible securities, provided that such securities are
convertible only into securities of the registrant, its parent or an
affiliate of either.
For purposes of this Form, an ''affiliate'' of a person is anyone who
beneficially owns, directly or indirectly, or exercises control or
direction over, more than 10 percent of the outstanding equity shares of
such person. The determination of a person's affiliates shall be made
as of the end of such person's most recently completed fiscal year.
(d) In the case of an exchange offer, Form F-8 is available to any
registrant that:
(1) Is incorporated or organized under the laws of Canada, or any
Canadian province or territory;
(2) Is a foreign private issuer;
(3) Has had a class of its securities listed on The Montreal
Exchange, The Toronto Stock Exchange or the Senior Board of the
Vancouver Stock Exchange for the 12 calendar months immediately
preceding the filing of this Form, has been subject to the continuous
disclosure requirements of any securities commission or equivalent
regulatory authority in Canada for a period of at least 36 calendar
months immediately preceding the filing of this Form, and is currently
in compliance with obligations arising from such listing and reporting;
and
(4) Has an aggregate market value of the public float of its
outstanding equity shares of (CN) $75 million or more; provided,
however, that such public float requirement need not be satisfied if the
issuer of the securities to be exchanged is also the registrant on this
Form.
1. For purposes of this Form, ''foreign private issuer'' shall be
construed in accordance with rule 405 under the Securities Act.
2. For purposes of this Form, ''equity shares'' shall mean common
shares, non-voting equity shares and subordinate or restricted voting
equity shares, but shall not include preferred shares.
3. For purposes of this Form, the ''public float'' of specified
securities shall mean only such securities held by persons other than
affiliates of the issuer.
4. For purposes of this Form, the market value of the public float of
outstanding equity shares shall be computed by use of the price at which
such shares were last sold, or the average of the bid and asked prices
of such shares, in the principal market for such shares as of a date
within 60 days prior to the date of filing. If there is no market for
any of such securities, the book value of such securities computed as of
the latest practicable date prior to the filing of this Form shall be
used for purposes of calculating the market value, unless the issuer of
such securities is in bankruptcy or receivership or has an accumulated
capital deficit, in which case one-third of the principal amount, par
value or stated value of such securities shall be used.
(e) In the case of an exchange offer, the securities to be registered
on this Form shall be offered to U. S. holders upon terms and
conditions not less favorable than those offered to any other holder of
the same class of the securities to be exchanged (the ''subject
securities'') for the securities of the registrant.
(f) In the case of an exchange offer, if the registrant is a
successor registrant subsisting after a business combination, the
registrant shall be deemed to meet the 36-month reporting requirement
and the 12-month listing requirement of paragraph (d)(3) of this section
if:
(1) The time the successor registrant has been subject to the
continuous disclosure requirements of any securities commission or
equivalent regulatory authority in Canada, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 36 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the reporting history calculation if the reporting
histories of predecessors whose assets and gross revenues, respectively,
would contribute at least 80 percent of the total assets and gross
revenues from continuing operations of the successor registrant, as
measured based on pro forma combination of such participating companies'
most recently completed fiscal years immediately prior to the business
combination, when combined with the reporting history of the successor
registrant in each case satisfy such 36-month reporting requirement;
(2) The time the successor registrant has been subject to the listing
requirements of the specified exchanges, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 12 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the listing history calculation if the listing histories
of predecessors whose assets and gross revenues, respectively, would
contribute at least 80 percent of the total assets and gross revenues
from continuing operations of the successor registrant, as measured
based on pro forma combination of such participating companies' most
recently completed fiscal years immediately prior to the business
combination, when combined with the listing history of the successor
registrant in each case satisfy such 12-month listing requirement; and
(3) The successor registrant has been subject to such continuous
disclosure requirements and listing requirements since the business
combination, and is currently in compliance with its obligations
thereunder.
(g) In the case of an exchange offer, the issuer of the subject
securities shall be incorporated or organized under the laws of Canada
or any Canadian province or territory and be a foreign private issuer,
and less than 25 percent of the class of subject securities outstanding
shall be held by U. S. holders.
1. For purposes of exchange offers, the term ''U. S. holder'' shall
mean any person whose address appears on the records of the issuer of
the subject securities, any voting trustee, any depositary, any share
transfer agent or any person acting in a similar capacity on behalf of
the issuer of the subject securities as being located in the United
States.
2. With respect to any tender offer, including any exchange offer,
otherwise eligible to proceed in accordance with rule 14d-1(b) under the
Securities Exchange Act of 1934 (the ''Exchange Act''), the issuer of
the subject securities will be presumed to be a foreign private issuer
and U. S. holders will be presumed to hold less than 25 percent of such
outstanding securities, unless (a) the aggregate trading volume of that
class on national securities exchanges in the United States and on
NASDAQ exceeded its aggregate trading volume on securities exchanges in
Canada and on the Canadian Dealing Network, Inc. (''CDN'') over the 12
calendar month period prior to commencement of this offer, or if
commenced in response to a prior offer, over the 12 calendar month
period prior to commencement of the initial offer (based on volume
figures published by such exchanges and NASDAQ and CDN) ; (b) the most
recent annual report or annual information form filed or submitted by
the issuer with securities regulators of Ontario, Quebec, British
Columbia or Alberta (or, if the issuer of the subject securities is not
a reporting issuer in any of such provinces, with any other Canadian
securities regulator) or with the Commission indicates that U. S.
holders hold 25 percent or more of the outstanding subject class of
securities; or (c) the offeror has actual knowledge that the level of
U. S. ownership equals or exceeds 25 percent of such securities.
3. For purposes of this Form, if this Form is filed during the
pendency of one or more ongoing cash tender or exchange offers for
securities of the class subject to the offer that was commenced or was
eligible to be commenced on Schedule 13E-4F, Schedule 14D-1F, and/or
Form F-8 or Form F-80, the date for calculation of U.S. ownership shall
be the same as that date used by the initial bidder or issuer.
4. For purposes of this Form, the class of subject securities shall
not include any securities that may be converted into or are
exchangeable for the subject securities.
5. For purposes of exchange offers, the calculation of U. S.
holders shall be made as of the end of the subject issuer's last quarter
or, if such quarter terminated within 60 days of the filing date, as of
the end of such issuer's preceding quarter.
(h) In the case of a business combination, Form F-8 is available if:
(1) Each company participating in the business combination, including
the successor registrant, is incorporated or organized under the laws of
Canada or any Canadian province or territory and is a foreign private
issuer;
(2) Each company participating in the business combination other than
the successor registrant has had a class of its securities listed on The
Montreal Exchange, The Toronto Stock Exchange or the Senior Board of the
Vancouver Stock Exchange for the 12 calendar months immediately
preceding the filing of this Form, has been subject to the continuous
disclosure requirements of any securities commission or equivalent
regulatory authority in Canada for a period of at least 36 calendar
months immediately preceding the filing of this Form, and is currently
in compliance with obligations arising from such listing and reporting;
provided, however, that any such participating company shall not be
required to meet such 36-month reporting requirement or 12-month listing
requirement if other participating companies whose assets and gross
revenues, respectively, would contribute at least 80 percent of the
total assets and gross revenues from continuing operations of the
successor registrant, as measured based on pro forma combination of the
participating companies' most recently completed fiscal years, each meet
such reporting and listing requirements; and
(3) The aggregate market value of the public float of the outstanding
equity shares of each company participating in the business combination
other than the successor registrant is (CN) $75 million or more;
provided, however, that any such participating company shall not be
required to meet such public float requirement if other participating
companies whose assets and gross revenues, respectively, would
contribute at least 80 percent of the total assets and gross revenues
from continuing operations of the successor registrant, as measured
based on pro forma combination of the participating companies' most
recently completed fiscal years, each meet such public float
requirement; and, provided further, that such public float requirement
shall be deemed satisfied in the case of a participating company whose
equity shares were the subject of an exchange offer that was registered
or would have been eligible for registration on Form F-8, Form F-9, Form
F-10 or Form F-80, or a tender offer in connection with which Schedule
13E-4F or 14D-1F was filed or could have been filed, that terminated
within the last twelve months, if the participating company would have
satisfied such public float requirement immediately prior to
commencement of such exchange or tender offer.
(i) In the case of a business combination, less than 25 percent of
the class of securities to be offered by the successor registrant shall
be held by U.S. holders as if measured immediately after completion of
the business combination.
1. For purposes of business combinations, the term ''U.S. holder''
shall mean any person whose address appears on the records of a
participating company, any voting trustee, any depositary, any share
transfer agent or any person acting in a similar capacity on behalf of a
participating company as being located in the United States.
2. For purposes of business combinations, the calculation of U.S.
holders shall be made by a participant as of the end of such
participant's last quarter or, if such quarter terminated within 60 days
of the filing date, as of the end of such participant's preceding
quarter.
(j) In the case of a business combination, the securities to be
registered on this Form shall be offered to U.S. holders upon terms and
conditions not less favorable than those offered to any other holder of
the same class of such securities of the participating company.
(k) This Form shall not be used if the registrant or, in the case of
an exchange offer, the issuer of the subject securities, is an
investment company registered or required to be registered under the
Investment Company Act of 1940.
(l) Registrants and any non-U.S. person acting as trustee with
respect to the securities being registered shall each file a Form F-X (
239.42 of this chapter) with the Commission at the time of filing this
Form.
(56 FR 30061, July 1, 1991)
Editorial Note: Form F-8 amended at 57 FR 10615, Mar. 27, 1992.
17 CFR 239.39 Form F-9, for registration under the Securities Act of
1933 of certain investment grade debt or investment grade preferred
securities of certain Canadian issuers.
(a) Form F-9 may be used for the registration under the Securities
Act of 1933 (the ''Securities Act'') of investment grade debt or
investment grade preferred securities that are:
(1) Offered for cash or in connection with an exchange offer; and
(2) Either non-convertible or not convertible for a period of at
least one year from the date of issuance and, except as noted in
paragraph (e) of this section, are thereafter only convertible into a
security of another class of the issuer.
Securities shall be ''investment grade'' if, at the time of
effectiveness of the registration statement, at least one nationally
recognized statistical rating organization (as that term is used in
relation to Rule 15c3-1(c)(2)(vi)(F) under the Securities Exchange Act
of 1934 (the ''Exchange Act'') ( 240.15c3-1(c)(2)(vi)(F) of this
chapter) has rated the security in one of its generic rating categories
that signifies investment grade; typically the four highest rating
categories (within which there may be subcategories or gradations
indicating relative standing) signify investment grade.
(b) Form F-9 is available to any registrant that:
(1) Is incorporated or organized under the laws of Canada or any
Canadian province or territory;
(2) Is a foreign private issuer or a crown corporation;
(3) Has been subject to the continuous disclosure requirements of any
securities commission or equivalent regulatory authority in Canada for a
period of at least 36 calendar months (or, if a crown corporation, for a
period of at least 12 calendar months) immediately preceding the filing
of this Form, and is currently in compliance with such obligations;
(4) Has an aggregate market value of its outstanding equity shares of
(CN) $180 million or more; and
(5) Has an aggregate market value of the public float of its
outstanding equity shares of (CN) $75 million or more; provided,
however, that the requirements set forth in paragraphs (b)(4) and (b)(5)
of this section shall not apply if the securities being registered on
this Form are not convertible into another security.
1. For purposes of this Form, ''foreign private issuer'' shall be
construed in accordance with rule 405 under the Securities Act.
2. For purposes of this Form, the term ''crown corporation'' shall
mean a corporation all of whose common shares or comparable equity is
owned directly or indirectly by the Government of Canada or a Province
or Territory of Canada.
3. For purposes of this Form, the ''public float'' of specified
securities shall mean only such securities held by persons other than
affiliates of the issuer.
4. For purposes of this Form, an ''affiliate'' of a person is anyone
who beneficially owns, directly or indirectly, or exercises control or
direction over, more than 10 percent of the outstanding equity shares of
such person. The determination of a person's affiliates shall be made
as of the end of such person's most recently completed fiscal year.
5. For purposes of this Form, ''equity shares'' shall mean common
shares, non-voting equity shares and subordinate or restricted voting
equity shares, but shall not include preferred shares.
6. For purposes of this Form, the market value of outstanding equity
shares (whether or not held by affiliates) shall be computed by use of
the price at which such shares were last sold, or the average of the bid
and asked prices of such shares, in the principal market for such shares
as of a date within 60 days prior to the date of filing. If there is no
market for any of such securities, the book value of such securities
computed as of the latest practicable date prior to the filing of this
Form shall be used for purposes of calculating the market value, unless
the issuer of such securities is in bankruptcy or receivership or has an
accumulated capital deficit, in which case one-third of the principal
amount, par value or stated value of such securities shall be used.
(c) In the case of an exchange offer, the securities to be registered
on this Form shall be offered to U.S. holders upon terms and conditions
not less favorable than those offered to any other holder of the same
class of the securities to be exchanged (the ''subject securities'') for
the securities of the registrant.
(d) In the case of an exchange offer, the issuer of the subject
securities shall be incorporated or organized under the laws of Canada
or any Canadian province or territory and be a foreign private issuer or
a crown corporation.
1. For purposes of this Form, the term ''U.S. holder'' shall mean any
person whose address appears on the records of the issuer of the subject
securities, any voting trustee, any depositary, any share transfer agent
or any person acting in a similar capacity on behalf of the issuer of
the subject securities as being located in the United States.
2. For purposes of this Form, the class of subject securities shall
not include any securities that may be converted into or are
exchangeable for the subject securities.
(e) If the registrant is a majority-owned subsidiary offering debt
securities or preferred shares, it shall be deemed to meet the
requirements of paragraphs (b)(3), (b)(4) and (b)(5) of this section if
the parent of the registrant-subsidiary meets the requirements of
paragraph (b) of this section, as applicable, and fully and
unconditionally guarantees the securities being registered as to
principal and interest (if debt securities) or as to liquidation
preference, redemption price and dividends (if preferred securities);
provided, however, that the securities of the subsidiary are only
convertible or exchangeable, if at all, for the securities of the
parent.
(f) If the registrant is a successor registrant subsisting after a
statutory amalgamation, merger, arrangement or other reorganization
requiring the vote of shareholders of the participating companies (a
''business combination''), the registrant shall be deemed to meet the
36-month reporting requirement of paragraph (b)(3) of this section if:
(1) The time the successor registrant has been subject to the
continuous disclosure requirements of any securities commission or
equivalent regulatory authority in Canada, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 36 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the reporting history calculation if the reporting
histories of predecessors whose assets and gross revenues, respectively,
would contribute at least 80 percent of the total assets and gross
revenues from continuing operations of the successor registrant, as
measured based on pro forma combination of such participating companies'
most recently completed fiscal years immediately prior to the business
combination, when combined with the reporting history of the successor
registrant in each case satisfy such 36-month reporting requirement;
and
(2) The successor registrant has been subject to such continuous
disclosure requirements since the business combination, and is currently
in compliance with its obligations thereunder.
(g) This Form shall not be used for registration of securities if no
takeover bid circular or issuer bid circular (in the case of an exchange
offer) or prospectus (in all other cases) is prepared pursuant to the
requirements of any Canadian jurisdiction due to the availability of an
exemption from such requirements.
(h) This Form shall not be used if the registrant or, in the case of
an exchange offer, the issuer of the subject securities is an investment
company registered or required to be registered under the Investment
Company Act of 1940.
(i) Registrants and any non-U.S. person acting as trustee with
respect to the securities being registered shall each file a Form F-X (
239.42 of this chapter) with the Commission at the time of filing this
Form.
(56 FR 30063, July 1, 1991)
Editorial Note: Form F-9 amended at 57 FR 10615, Mar. 27, 1992.
17 CFR 239.40 Form F-10, for registration under the Securities Act of
1933 of securities of certain Canadian issuers.
(a) Form F-10 may be used for the registration of securities under
the Securities Act of 1933 (the ''Securities Act''), including
securities to be issued in an exchange offer or in connection with a
statutory amalgamation, merger, arrangement or other reorganization
requiring the vote of shareholders of the participating companies (a
''business combination'').
(b) This Form may not be used for registration of derivative
securities except:
(1) Warrants, options and rights, provided that such securities and
the underlying securities to which they relate are issued by the
registrant, its parent or an affiliate of either; and
(2) Convertible securities, provided that such securities are
convertible only into securities of the registrant, its parent or an
affiliate of either.
For purposes of this Form, an ''affiliate'' of a person is anyone who
beneficially owns, directly or indirectly, or exercises control or
direction over, more than 10 percent of the outstanding equity shares of
such person. The determination of a person's affiliates shall be made
as of the end of such person's most recently completed fiscal year.
(c) Form F-10 is available to any registrant that:
(1) Is incorporated or organized under the laws of Canada or any
Canadian province or territory;
(2) Is a foreign private issuer;
(3) Has been subject to the continuous disclosure requirements of any
securities commission or equivalent regulatory authority in Canada for a
period of at least 36 calendar months immediately preceding the filing
of this Form, and is currently in compliance with such obligations,
provided, however, that in the case of a business combination, each
participating company other than the successor registrant must meet such
36-month reporting obligation, except that any such participating
company shall not be required to meet such reporting requirement if
other participating companies whose assets and gross revenues,
respectively, would contribute at least 80 percent of the total assets
and gross revenues from continuing operations of the successor
registrant, as measured based on pro forma combination of the
participating companies' most recently completed fiscal years, each meet
such reporting requirement;
(4) Has an aggregate market value of its outstanding equity shares of
(CN) $360 million or more, provided, however, that in the case of a
business combination, the aggregate market value of the outstanding
shares of each participating company other than the successor registrant
is (CN) $360 million or more, except that any such participating company
shall not be required to meet such market value requirement if other
participating companies whose assets and gross revenues, respectively,
would contribute at least 80 percent of the total assets and gross
revenues from continuing operations of the successor registrant, as
measured based on pro forma combination of the participating companies'
most recently completed fiscal years, each meet such market value
requirement; and
(5) Has an aggregate market value of the public float of its
outstanding equity shares of (CN) $75 million or more; provided,
however, that in the case of a business combination, the aggregate
market value of the public float of the outstanding equity shares of
each participating company other than the successor registrant is (CN)
$75 million or more, except that any such participating company shall
not be required to meet such public float requirement if other
participating companies whose assets and gross revenues, respectively,
would contribute at least 80 percent of the total assets and gross
revenues from continuing operations of the successor registrant, as
measured based on pro forma combination of the participating companies'
most recently completed fiscal years, each meet such public float
requirement; and provided further, that in the case of a business
combination, such public float requirement shall be deemed satisfied in
the case of a participating company whose equity shares were the subject
of an exchange offer that was registered or would have been eligible for
registration on Form F-8, Form F-9, Form F-10 or Form F-80, or a tender
offer in connection with which Schedule 13E-4F or 14D-1F was filed or
could have been filed, that terminated within the last twelve months, if
the participating company would have satisfied such public float
requirement immediately prior to commencement of such exchange or tender
offer.
1. For purposes of this Form, ''foreign private issuer'' shall be
construed in accordance with rule 405 under the Securities Act.
2. For purposes of this Form, the ''public float'' of specified
securities shall mean only such securities held by persons other than
affiliates of the issuer.
3. For purposes of this Form, ''equity shares'' shall mean common
shares, non-voting equity shares and subordinate or restricted voting
equity shares, but shall not include preferred shares.
4. For purposes of this Form, the market value of outstanding equity
shares (whether or not held by affiliates) shall be computed by use of
the price at which such shares were last sold, or the average of the bid
and asked prices of such shares, in the principal market for such shares
as of a date within 60 days prior to the date of filing. If there is no
market for any of such securities, the book value of such securities
computed as of the latest practicable date prior to the filing of this
Form shall be used for purposes of calculating the market value, unless
the issuer of such securities is in bankruptcy or receivership or has an
accumulated capital deficit, in which case one-third of the principal
amount, par value or stated value of such securities shall be used.
(d) In the case of an exchange offer, the issuer of the securities to
be exchanged (the ''subject securities'') for securities of the
registrant shall be incorporated or organized under the laws of Canada
or any Canadian province or territory and be a foreign private issuer.
(e) In the case of a business combination, each participating company
shall be incorporated or organized under the laws of Canada or any
Canadian province or territory and be a foreign private issuer.
(f) In the case of an exchange offer, the securities to be registered
on this Form shall be offered to U.S. holders upon terms and conditions
not less favorable than those offered to any other holder of the same
class of the subject securities.
(g) In the case of a business combination, the securities to be
registered on this Form shall be offered to U.S. holders upon terms and
conditions not less favorable than those offered to any other holder of
the same class of such securities of the participating company.
1. For purposes of exchange offers, the term ''U.S. holder'' shall
mean any person whose address appears on the records of the issuer of
the subject securities, any voting trustee, any depositary, any share
transfer agent or any person acting in a similar capacity on behalf of
the issuer of the subject securities as being located in the United
States.
2. For purposes of business combinations, the term ''U.S. holder''
shall mean any person whose address appears on the records of a
participating company, any voting trustee, any depositary, any share
transfer agent or any person acting in a similar capacity on behalf of a
participating company as being located in the United States.
3. For purposes of this Form, the class of subject securities shall
not include any securities that may be converted into or are
exchangeable for the subject securities.
(h) With respect to registration of debt securities or preferred
securities on this Form, if the registrant is a majority-owned
subsidiary, it shall be deemed to meet the requirements of paragraphs
(c)(3), (c)(4) and (c)(5) of this section if the parent of the
registrant-subsidiary meets the requirements of paragraph (c) of this
section and fully and unconditionally guarantees the securities being
registered as to principal and interest (if debt securities) or as to
liquidation preference, redemption price and dividends (if preferred
shares); provided, however, that the securities of the subsidiary are
only convertible or exchangeable, if at all, for the securities of the
parent.
(i) If the registrant is a successor registrant subsisting after a
business combination, it shall be deemed to meet the 36-month reporting
requirement of paragraph (c)(3) of this section if:
(1) The time the successor registrant has been subject to the
continuous disclosure requirements of any securities commission or
equivalent regulatory authority in Canada, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 36 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the reporting history calculation if the reporting
histories of predecessors whose assets and gross revenues, respectively,
would contribute at least 80 percent of the total assets and gross
revenues from continuing operations of the successor registrant, as
measured based on pro forma combination of such participating companies'
most recently completed fiscal years immediately prior to the business
combination, when combined with the reporting history of the successor
registrant in each case satisfy such 36-month reporting requirement;
and
(2) The successor registrant has been subject to such continuous
disclosure requirements since the business combination, and is currently
in compliance with its obligations thereunder.
(j) This Form shall not be used for registration of securities if no
takeover bid circular or issuer bid circular (in the case of an exchange
offer) or information circular (in the case of a business combination)
or prospectus (in all other cases) is prepared pursuant to the
requirements of any Canadian jurisdiction due to the availability of an
exemption from such requirements.
(k) This Form shall not be used if the registrant or, in the case of
an exchange offer, the issuer of the subject securities is an investment
company registered or required to be registered under the Investment
Company Act of 1940.
(l) Registrants and any non-U.S. person acting as trustee with
respect to the securities being registered shall each file a Form F-X (
239.42 of this chapter) with the Commission at the time of filing this
Form.
(56 FR 30064, July 1, 1991)
Editorial Note: Form F-10 amended at 57 FR 10615, Mar. 27, 1992.
17 CFR 239.41 Form F-80, for registration under the Securities Act of
1933 of securities of certain Canadian issuers to be issued in exchange
offers or a business combination.
(a) Form F-80 may be used for registration under the Securities Act
of 1933 (''Securities Act'') of securities to be issued in an exchange
offer or in connection with a statutory amalgamation, merger,
arrangement or other reorganization requiring the vote of shareholders
of the participating companies (a ''business combination''). Securities
may be registered on this Form whether they constitute the sole
consideration for such exchange offer or business combination, or are
offered in conjunction with cash.
(b) This Form shall not be used for registration of securities if no
takeover bid circular or issuer bid circular (in the case of an exchange
offer) or information circular (in the case of a business combination)
is prepared pursuant to the requirements of any Canadian jurisdiction
due to the availability of an exemption from such requirements.
(c) This Form may not be used for registration of derivative
securities except:
(1) Warrants, options and rights, provided that such securities and
the underlying securities to which they relate are issued by the
registrant, its parent or an affiliate of either; and
(2) Convertible securities, provided that such securities are
convertible only into securities of the registrant, its parent or an
affiliate of either.
For purposes of this Form, an ''affiliate'' of a person is anyone who
beneficially owns, directly or indirectly, or exercises control or
direction over, more than 10 percent of the outstanding equity shares of
such person. The determination of a person's affiliates shall be made
as of the end of such person's most recently completed fiscal year.
(d) In the case of an exchange offer, Form F-80 is available to any
registrant that:
(1) Is incorporated or organized under the laws of Canada or any
Canadian province or territory;
(2) Is a foreign private issuer;
(3) Has had a class of its securities listed on The Montreal
Exchange, The Toronto Stock Exchange or the Senior Board of the
Vancouver Stock Exchange for the 12 calendar months immediately
preceding the filing of this Form, has been subject to the continuous
disclosure requirements of any securities commission or equivalent
regulatory authority in Canada for a period of at least 36 calendar
months immediately preceding the filing of this Form, and is currently
in compliance with obligations arising from such listing and reporting;
and
(4) Has an aggregate market value of the public float of its
outstanding equity shares of (CN) $75 million or more; provided,
however, that such public float requirement need not be satisfied if the
issuer of the securities to be exchanged is also the registrant on this
Form.
1. For purposes of this Form, ''foreign private issuer'' shall be
construed in accordance with Rule 405 under the Securities Act.
2. For purposes of this Form, ''equity shares'' shall mean common
shares, non-voting equity shares and subordinate or restricted voting
equity shares, but shall not include preferred shares.
3. For purposes of this Form, the ''public float'' of specified
securities shall mean only such securities held by persons other than
affiliates of the issuer.
4. For purposes of this Form, the market value of the public float of
outstanding equity shares shall be computed by use of the price at which
such shares were last sold, or the average of the bid and asked prices
of such shares, in the principal market for such shares as of a date
within 60 days prior to the date of filing. If there is no market for
any of such securities, the book value of such securities computed as of
the latest practicable date prior to the filing of this Form shall be
used for purposes of calculating the market value, unless the issuer of
such securities is in bankruptcy or receivership or has an accumulated
capital deficit, in which case one-third of the principal amount, par
value or stated value of such securities shall be used.
(e) In the case of an exchange offer, the securities to be registered
on this Form shall be offered to U. S. holders upon terms and
conditions not less favorable than those offered to any other holder of
the same class of the securities to be exchanged (the ''subject
securities'') for the securities of the registrant.
(f) In the case of an exchange offer, if the registrant is a
successor registrant subsisting after a business combination, the
registrant shall be deemed to meet the 36-month reporting requirement
and the 12-month listing requirement of paragraph (d) (3) of this
section if:
(1) The time the successor registrant has been subject to the
continuous disclosure requirements of any securities commission or
equivalent regulatory authority in Canada, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 36 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the reporting history calculation if the reporting
histories of predecessors whose assets and gross revenues, respectively,
would contribute at least 80 percent of the total assets and gross
revenues from continuing operations of the successor registrant, as
measured based on pro forma combination of such participating companies'
most recently completed fiscal years immediately prior to the business
combination, when combined with the reporting history of the successor
registrant in each case satisfy such 36-month reporting requirement;
(2) The time the successor registrant has been subject to the listing
requirements of the specified exchanges, when added separately to the
time each predecessor had been subject to such requirements at the time
of the business combination, in each case equals at least 12 calendar
months, provided, however, that any predecessor need not be considered
for purposes of the listing history calculation if the listing histories
of predecessors whose assets and gross revenues, respectively, would
contribute at least 80 percent of the total assets and gross revenues
from continuing operations of the successor registrant, as measured
based on pro forma combination of such participating companies' most
recently completed fiscal years immediately prior to the business
combination, when combined with the listing history of the successor
registrant in each case satisfy such 12-month listing requirement; and
(3) The successor registrant has been subject to such continuous
disclosure requirements and listing requirements since the business
combination, and is currently in compliance with its obligations
thereunder.
(g) In the case of an exchange offer, the issuer of the subject
securities shall be incorporated or organized under the laws of Canada
or any Canadian province or territory and be a foreign private issuer,
and less than 40 percent of the class of subject securities outstanding
shall be held by U.S. holders.
1. For purposes of exchange offers, the term ''U.S. holder'' shall
mean any person whose address appears on the records of the issuer of
the subject securities, any voting trustee, any depositary, any share
transfer agent or any person acting in a similar capacity on behalf of
the issuer of the subject securities as being located in the United
States.
2. With respect to any tender offer, including any exchange offer,
otherwise eligible to proceed in accordance with Rule 14d-1(b) under the
Securities Exchange Act of 1934 (the ''Exchange Act''), the issuer of
the subject securities will be presumed to be a foreign private issuer
and U.S. holders will be presumed to hold less than 40 percent of such
outstanding securities, unless (a) the aggregate trading volume of that
class on national securities exchanges in the United States and on
NASDAQ exceeded its aggregate trading volume on securities exchanges in
Canada and on the Canadian Dealing Network, Inc. (''CDN'') over the 12
calendar month period prior to commencement of this offer, or if
commenced in response to a prior offer, over the 12 calendar month
period prior to commencement of the initial offer (based on volume
figures published by such exchanges and NASDAQ and CDN); (b) the most
recent annual report or annual information form filed or submitted by
the issuer with securities regulators of Ontario, Quebec, British
Columbia or Alberta (or, if the issuer of the subject securities is not
a reporting issuer in any of such provinces, with any other Canadian
securities regulator) or with the Commission indicates that U.S. holders
hold 40 percent or more of the outstanding subject class of securities;
or (c) the offeror has actual knowledge that the level of U.S. ownership
equals or exceeds 40 percent of such securities.
3. For purposes of this Form, if this Form is filed during the
pendency of one or more ongoing cash tender or exchange offers for
securities of the class subject to the offer that was commenced or was
eligible to be commenced on Schedule 13E-4F, Schedule 14D-1F, and/or
Form F-8 or Form F-80, the date for calculation of U.S. ownership shall
be the same as that date used by the initial bidder or issuer.
4. For purposes of this Form, the class of subject securities shall
not include any securities that may be converted into or are
exchangeable for the subject securities.
5. For purposes of exchange offers, the calculation of U.S. holders
shall be made as of the end of the subject issuer's last quarter or, if
such quarter terminated within 60 days of the filing date, as of the end
of such issuer's preceding quarter.
(h) In the case of a business combination, Form F-80 is available if:
(1) Each company participating in the business combination, including
the successor registrant, is incorporated or organized under the laws of
Canada or any Canadian province or territory and is a foreign private
issuer;
(2) Each company participating in the business combination other than
the successor registrant has had a class of its securities listed on The
Montreal Exchange, The Toronto Stock Exchange or the Senior Board of the
Vancouver Stock Exchange for the 12 calendar months immediately
preceding the filing of this Form, has been subject to the continuous
disclosure requirements of any securities commission or equivalent
regulatory authority in Canada for a period of at least 36 calendar
months immediately preceding the filing of this Form, and is currently
in compliance with obligations arising from such listing and reporting;
provided, however, that any such participating company shall not be
required to meet such 36-month reporting requirement or 12-month listing
requirement if other participating companies whose assets and gross
revenues, respectively, would contribute at least 80 percent of the
total assets and gross revenues from continuing operations of the
successor registrant, as measured based on pro forma combination of the
participating companies' most recently completed fiscal years, each meet
such reporting and listing requirements; and
(3) The aggregate market value of the public float of the outstanding
equity shares of each company participating in the business combination
other than the successor registrant is (CN) $75 million or more;
provided, however, that any such participating company shall not be
required to meet such public float requirement if other participating
companies whose assets and gross revenues, respectively, would
contribute at least 80 percent of the total assets and gross revenues
from continuing operations of the successor registrant, as measured
based on pro forma combination of the participating companies' most
recently completed fiscal years, each meet such public float
requirement; and, provided further, that such public float requirement
shall be deemed satisfied in the case of a participating company whose
equity shares were the subject of an exchange offer that was registered
or would have been eligible for registration on Form F-8, Form F-9, Form
F-10 or Form F-80, or a tender offer in connection with which Schedule
13E-4F or 14D-1F was filed or could have been filed, that terminated
within the last twelve months, if the participating company would have
satisfied such public float requirement immediately prior to
commencement of such exchange or tender offer.
(i) In the case of a business combination, less than 40 percent of
the class of securities to be offered by the successor registrant shall
be held by U.S. holders, as if measured immediately after completion of
the business combination.
1. For purposes of business combinations, the term ''U.S. holder''
shall mean any person whose address appears on the records of a
participating company, any voting trustee, any depositary, any share
transfer agent or any person acting in a similar capacity on behalf of a
participating company as being located in the United States.
2. For purposes of business combinations, the calculation of U.S.
holders shall be made by a participant as of the end of such
participant's last quarter or, if such quarter terminated within 60 days
of the filing date, as of the end of such participant's preceding
quarter.
(j) In the case of a business combination, the securities to be
registered on this Form shall be offered to U.S. holders upon terms and
conditions not less favorable than those offered to any other holder of
the same class of such securities of the participating company.
(k) This Form shall not be used if the registrant or, in the case of
an exchange offer, the issuer of the subject securities is an investment
company registered or required to be registered under the Investment
Company Act of 1940.
(l) Registrants and any non-U.S. person acting as trustee with
respect to the securities being registered shall each file a Form F-X (
239.42 of this chapter) with the Commission at the time of filing this
Form.
(56 FR 30065, July 1, 1991)
Editorial Note: Form F-80 amended at 57 FR 10615, Mar. 27, 1992.
17 CFR 239.42 Form F-X, for appointment of agent for service of process
by issuers registering securities on Form F-8, F-9, F-10 or F-80 (
239.38, 239.39, 239.40 or 239.41 of this chapter), or registering
securities or filing periodic reports on Form 40-F ( 249.240f of this
chapter), or by any issuer or other non-U.S. person filing tender offer
documents on Schedule 13E-4F, 14D-1F or 14D-9F ( 240.13e-102,
240.14d-102 or 240.14d-103 of this chapter), or by any non-U.S. person
acting as trustee with respect to securities registered on Form F-7 (
239.37 of this chapter), F-8, F-9, F-10 or F-80.
Form F-X shall be filed with the Commission:
(a) By any issuer registering securities on Form F-8, F-9, F-10 or
F-80 under the Securities Act of 1933;
(b) By any issuer registering securities on Form 40-F under the
Securities Exchange Act of 1934;
(c) By any issuer filing a periodic report on Form 40-F, if it has
not previously filed a Form F-X in connection with the class of
securities in relation to which the obligation to file a report on Form
40-F arises;
(d) By any issuer or other non-U.S. person filing tender offer
documents on Schedule 13E-4F, 14D-1F or 14D-9F; and
(e) By any non-U.S. person acting as trustee with respect to
securities registered on Form F-7, F-8, F-9, F-10 or F-80.
(56 FR 30067, July 1, 1991)
Editorial Note: Form F-X amended at 57 FR 10615, Mar. 27, 1992.
17 CFR 239.43 Form F-N, appointment of agent for service of process by
foreign banks and foreign insurance companies and certain of their
holding companies and finance subsidiaries making public offerings of
securities in the United States.
Form F-N shall be filed with the Commission in connection with the
filing of a registration statement under the Act by those entities
specified in rule 489 (17 CFR 230.489).
(56 FR 56299, Nov. 4, 1991)
239.44 -- 239.60 (Reserved)
17 CFR 239.61 Form SR, report of sales of securities and use of
proceeds therefrom.
This form shall be used for filing a report of sales of securities in
use of proceeds pursuant to 230.463 of this chapter.
(46 FR 48142, Oct. 1, 1981)
17 CFR 239.62 Form ET, transmittal form for electronic format documents
under the EDGAR pilot.
This form shall accompany electronic filing under the EDGAR pilot
project when the filing medium is either diskette or magnetic tape.
(Secs. 6, 7, 8, 10, 19(a), 48 Stat. 78, 79, 81, 85; secs. 205, 209,
48 Stat. 906, 908; sec. 301, 54 Stat. 857; sec. 8, 68 Stat. 685;
sec. 308(a)(2), 90 Stat. 57; secs. 3(b), 12, 13, 14, 15(d), 23(a), 48
Stat. 882, 892, 894, 895, 901; secs. 203(a), 1, 3, 8, 49 Stat. 704,
1375, 1377, 1379; sec. 202, 68 Stat. 686; secs. 4, 5, 6(d), 78 Stat.
569, 570-574; secs. 1, 2, 3, 82 Stat. 454, 455; secs. 28(c), 1, 2, 3,
4, 5, 84 Stat. 1435, 1497; sec. 105(b), 88 Stat. 1503; secs. 8, 9,
10, 89 Stat. 117, 118, 119; sec. 308(b), 90 Stat. 57; sec. 18, 89
Stat. 155; secs. 202, 203, 204, 91 Stat. 1494, 1498-1500; sec. 20(a),
49 Stat. 833; sec. 319, 53 Stat. 1173; sec. 38, 54 Stat. 841; 15
U.S.C. 77f, 77g, 77h, 77j, 77s(a), 78c(b), 78l, 78m, 78n, 78o(d),
78w(a), 79t(a), 77sss(a), 80a-37)
(50 FR 40484, Nov. 4, 1985)
Editorial Note: Form ET amended at 50 FR 23291, June 3, 1985; 50 FR
40484, Oct. 4, 1985.
17 CFR 239.63 Form ID, uniform application for identification numbers
and passwords under the EDGAR pilot.
(a) Form ID is to be used by persons participating in the EDGAR Pilot
for the purpose of requesting assignment of:
(1) Company Identification Number (CIK) -- used internally by the
Commission to uniquely identify each registrant;
(2) Company Password -- a unique command assigned to a registrant
which is essential to obtain access to the electronic filing system for
the purpose of inputting data on behalf of that registrant;
(3) Personal Identification Number (PIN) -- a series of symbols,
which serves as a signature, to be assigned upon request to each
individual who may sign documents filed with the Commission.
(b)(1) CIK and Passwords may be requested only by the registrant or
by a duly authorized person (e.g., officer, director or trustee) on its
behalf.
(2) PIN may be requested only by the person to whom the number is to
be assigned.
(Secs. 6, 7, 8, 10, 19(a), 48 Stat. 78, 79, 81, 85; secs. 205, 209,
48 Stat. 906, 908; sec. 301, 54 Stat. 857; sec. 8, 68 Stat. 685;
sec. 308(a)(2), 90 Stat. 57; secs. 3(b), 12, 13, 14, 15(d), 23(a), 48
Stat. 882, 892, 894, 895, 901; secs. 203(a), 1, 3, 8, 49 Stat. 704,
1375, 1377, 1379; sec. 202, 68 Stat. 686; secs. 4, 5, 6(d), 78 Stat.
569, 570-574; secs. 1, 2, 3, 82 Stat. 454, 455; secs. 28(c), 1, 2, 3,
4, 5, 84 Stat. 1435, 1497; sec. 105(b), 88 Stat. 1503; secs. 8, 9,
10, 89 Stat. 117, 118, 119; sec. 308(b), 90 Stat. 57; sec. 18, 89
Stat. 155; secs. 202, 203, 204, 91 Stat. 1494, 1498-1500; sec. 20(a),
49 Stat. 833; sec. 319, 53 Stat. 1173; sec. 38, 54 Stat. 841; 15
U.S.C. 77f, 77g, 77h, 77j, 77s(a), 78c(b), 78l, 78m, 78n, 78o(d),
78w(a), 79t(a), 77sss(a), 80a-37)
(49 FR 28049, July 10, 1984)
Editorial Note: Form ID amended at 50 FR 23291, June 3, 1985; 50 FR
40484, Oct. 4, 1985.
17 CFR 239.64 Form SE, transmittal form for paper format documents
under the Edgar pilot.
This form shall be used for the filing of any exhibit(s) to be
incorporated by reference into a registration statement or report
pursuant to the Securities Act of 1933, the Securities Exchange Act of
1934, the Trust Indenture Act of 1939, the Public Utility Holding
Company Act of 1935 and the Investment Company Act of 1940 provided such
registrant:
(a) Is filing in an electronic format under the EDGAR Pilot project;
and
(b) Determines that it is impracticable, in its judgment, to file
such document(s) in an electronic format.
(Secs. 6, 7, 8, 10, 19(a), 48 Stat. 78, 79, 81, 85; secs. 205, 209,
48 Stat. 906, 908; sec. 301, 54 Stat. 857; sec. 8, 68 Stat. 685;
sec. 308(a)(2), 90 Stat. 57; secs. 3(b), 12, 13, 14, 15(d), 23(a), 48
Stat. 882, 892, 894, 895, 901; secs. 203(a), 1, 3, 8, 49 Stat. 704,
1375, 1377, 1379; sec. 202, 68 Stat. 686; secs. 4, 5, 6(d), 78 Stat.
569, 570-574; secs. 1, 2, 3, 82 Stat. 454, 455; secs. 28(c), 1, 2, 3,
4, 5, 84 Stat. 1435, 1497; sec. 105(b), 88 Stat. 1503; secs. 8, 9,
10, 89 Stat. 117, 118, 119; sec. 308(b), 90 Stat. 57; sec. 18, 89
Stat. 155; secs. 202, 203, 204, 91 Stat. 1494, 1498-1500; sec. 20(a),
49 Stat. 833; sec. 319, 53 Stat. 1173; sec. 38, 54 Stat. 841; 15
U.S.C. 77f, 77g, 77h, 77j, 77s(a), 78c(b), 78l, 78m, 78n, 78o(d),
78w(a), 79t(a), 77sss(a), 80a-37)
(49 FR 28050, July 10, 1984, as amended at 50 FR 40484, Oct. 4, 1985;
51 FR 11908, Apr. 8, 1986)
Editorial Note: Form SE revised 51 FR 11908, Apr. 8, 1986.
17 CFR 239.64 Subpart B -- Forms Pertaining to Exemptions
17 CFR 239.90 Form 1-A, offering statement under Regulation A.
This form shall be used for filing of a notification under 230.255
of Regulation A ( 230.251 -- 230.264 of this chapter).
(46 FR 41770, Aug. 18, 1981)
Editorial Note: Form 1-A revised at 47 FR 39992, Sept. 10, 1982.
17 CFR 239.91 Form 2-A, report pursuant to Rule 260 of Regulation A.
This form shall be used for report of sales pursuant to Rule 260 of
Regulation A ( 230.260 of this chapter).
17 CFR 239.92 Form 3-A, irrevocable appointment by an individual of
agent for service of process, pleadings, and other papers pursuant to
Rule 262 of Regulation A.
This form shall be used for irrevocable appointment by an individual
of an agent for service of process, pleadings, and other papers,
pursuant to Rule 262 of Regulation A ( 230.262 of this chapter).
17 CFR 239.93 Form 4-A, irrevocable appointment by a corporation (or
association or other form of organization) of agent for service of
process, pleadings, and other papers, pursuant to Rule 262 of Regulation
A.
This form shall be used for irrevocable appointment by a corporation
(or an association or other form of organization) of an agent for
service of process, pleadings, and other papers, pursuant to Rule 262 of
Regulation A ( 230.262 of this chapter).
17 CFR 239.94 Form 5-A, certificate of resolution authorizing
irrevocable appointment by a corporation (or association or other form
of organization) of agent for service of process, pleadings, and other
papers, pursuant to Rule 262 of Regulation A.
This form shall be used for the certificate of resolution authorizing
the irrevocable appointment by a corporation (or association or other
form of organization) of an agent for service of process, pleadings, and
other papers, pursuant to Rule 262 of Regulation A ( 230.262 of this
chapter).
17 CFR 239.95 Form 6-A, irrevocable appointment by partnership of agent
for service of process, pleadings, and other papers, pursuant to Rule
262 of Regulation A.
This form shall be used for irrevocable appointment by a partnership
of an agent for service of process, pleadings, and other papers,
pursuant to Rule 262 of Regulation A ( 230.262 of this chapter).
17 CFR 239.96 Form 7A, optional form of escrow for securities that are
subject to the provisions of Rule 253(c) of Regulation A ( 230.253(c) of
this chapter).
This form is an optional form of escrow for securities that are
subject to the provisions of Rule 253(c) of Regulation A ( 230.253(c) of
this chapter).
(46 FR 41770, Aug. 18, 1981)
Editorial Note: Form 7A revised at 47 FR 34946, Aug. 11, 1982.
239.97 -- 239.100 (Reserved)
17 CFR 239.101 Schedules and forms for offering sheets pertaining to
fractional undivided interests in oil or gas rights offered pursuant to
exemption under Regulation B ( 230.300-230.346 of this chapter).
(a) An offeror of fractional undivided interests in oil or gas rights
pursuant to 230.300-230.346 of this chapter shall file an offering
sheet, in accordance with 230.310 or 230.312 of this chapter, upon the
applicable schedule listed below:
(1) Schedule A. If the interests offered are producing landowners'
royalty interests.
(2) Schedule B. If the interests offered are nonproducing
landowners' royalty interests.
(3) Schedule C. If the interests offered are producing overriding
royalty interests, working interests, or participating interests, or are
oil payments, gas payments, or oil and gas payments to be made from
tracts represented to be producing at the time of the offering.
(4) Schedule D. If the interests offered are nonproducing overriding
royalty interests, working interests, or participating interests, or are
oil payments, gas payments, or oil and gas payments to be made from
tracts represented to be nonproducing at the time of the offering.
(b) An offeror will also have the obligation of filing the following
reports in accordance with 230.316 of this chapter:
(1) Form 1-G. One copy of this report will be filed with the
Commission within 15 days after the expiration of the offering sheet or
the termination of sales, whichever date is earlier. This form will
report the sales of oil or gas interests pursuant to 230.300 --
230.346 of this chapter.
(2) Form 3-G. Four copies of this report will be filed with the
Commission within 3 calendar months after the termination of any
offering pursuant to 230.300 -- 230.346 of this chapter. This form
will report the results of the offering.
Note: Copies of amended Form 1-G and newly adopted Form 3-G have
been filed with the Office of Federal Register as part of this document
and are available upon request at the Securities and Exchange
Commission, Washington, DC 20549.
(37 FR 23835, Nov. 9, 1972)
239.102 -- 239.143 (Reserved)
17 CFR 239.144 Form 144, for notice of proposed sale of securities
pursuant to 230.144 of this chapter.
(a) Except as indicated in paragraph (b) of this section, this form
shall be filed in triplicate with the Commission at its principal office
in Washington, DC, by each person who intends to sell securities in
reliance upon 230.144 of this chapter and shall be transmitted for
filing concurrently with either the placing with a broker of an order to
execute a sale of securities or the execution directly with a market
maker of a sale of securities.
(b) This form need not be filed if the amount of securities to be
sold during any period of 3 months does not exceed 500 shares or other
units and the aggregate sale price thereof does not exceed $10,000.
(c) Under sections 2(11), 4(1), 4(2), 4(4) and 19(a) of the
Securities Act of 1933 (17 CFR 230) and Rule 144 thereunder, the
Commission is authorized to solicit the information required to be
supplied by this form by persons desiring to sell unregistered
securities. Disclosure of the information specified in this form is
mandatory prior to processing notices of proposed sale of securities
under Rule 144, except for social security account numbers, disclosure
of which is voluntary. The information will be used for the primary
purpose of disclosing the proposed sale of unregistered securities by
persons deemed not to be engaged in the distribution of securities.
This notice will be made a matter of public record. Therefore, any
information given will be available for inspection by any member of the
public. Because of the public nature of the information, the Commission
can utilize it for a variety of purposes, including referral to other
governmental authorities or securities self-regulatory organizations for
investigatory purposes or in connection with litigation involving the
Federal securities laws or other civil, criminal or regulatory statutes
or provisions. Social security account numbers, if furnished, will
assist the Commission in identifying persons desiring to sell
unregistered securities and, therefore, in promptly processing notices
of proposed sale of securities. Failure to disclose the information
requested by Form 144, except for social security account numbers, would
make an exception under Rule 144 unavailable and may result in civil or
criminal action for violations of the Federal securities laws.
(37 FR 4329, Mar. 2, 1972, as amended at 40 FR 55319, Nov. 28, 1975;
43 FR 5423, Nov. 21, 1978)
Editorial Note: Form 144 amended at 55 FR 40162, Oct. 2, 1990.
239.145 -- 239.199 (Reserved)
17 CFR 239.200 Form 1-E, notification under Regulation E.
This form shall be used for notification pursuant to Rule 604 (
230.604 of this chapter) of Regulation E ( 230.601-230.610a of this
chapter) by a small business investment company or business development
company described in Rule 602 ( 230.602 of this chapter).
(Secs 3(b) and 3(c), Securities Act of 1933 (15 U.S.C. 77c (b) and
(c); sec. 38, Investment Company Act of 1940 (15 U.S.C. 80a-37))
(49 FR 35347, Sept. 7, 1984)
Editorial Note: Form 1-E amended at 49 FR 35347, Sept. 7, 1984.
17 CFR 239.201 Form 2-E, report of sales pursuant to Rule 609 of
Regulation E.
This form shall be used for report of sales of securities under
Regulation E ( 230.601 -- 230.610a of this chapter) by a small business
investment company described in Rule 602 ( 230.602 of this chapter) as
required by Rule 609 of Regulation E ( 230.609 of this chapter).
239.202 -- 239.299 (Reserved)
17 CFR 239.300 Form 1-F, notification under Regulation F.
This form shall be used for notification pursuant to Rule 652 (
230.652 of this chapter) of Regulation F ( 230.651 -- 230.656 of this
chapter) in connection with sales of assessable stock.
17 CFR 239.500 Form D, notice of sales of securities under Regulation D
and section 4(6) of the Securities Act of 1933.
(a) Five copies of a notice on this form shall be filed with the
Commission no later than 15 days after the first sale of securities in
an offering under Regulation D ( 230.501 -- 230.508 of this chapter) or
under section 4(6) of the Securities Act of 1933.
(b) One copy of every notice on Form D shall be manually signed by a
person duly authorized by the issuer.
(c) When sales are made under 230.505, the notice shall contain an
undertaking by the issuer to furnish to the Commission, upon the written
request of its staff, the information furnished to non-accredited
investors.
(d) Amendments to notices filed under paragraph (a) need only report
the issuer's name and the information required by Part C and any
material change in the facts from those set forth in Parts A and B.
(e) A notice on Form D shall be considered filed with the Commission
under paragraph (a) of this section:
(1) As of the date on which it is received at the Commission's
principal office in Washington DC; or
(2) As of the date on which the notice is mailed by means of United
States registered or certified mail to the Commission's principal office
in Washington, DC, if the notice is delivered to such office after the
date on which it is required to be filed.
(54 FR 11374, Mar. 20, 1989)
Editorial Note: Form D was revised at 51 FR 36387, Oct. 10, 1986.
17 CFR 239.701 Form 701, report of sales securities pursuant to a
compensatory benefit plan or contract relating to compensation.
This form shall be used for the report of sales of securities
pursuant to a compensatory benefit plan or contract relating to
compensation under Rule 701 ( 230.701 of this chapter).
(53 FR 12922, Apr. 20, 1988)
17 CFR 239.701 FINDING AIDS
A list of CFR titles, subtitles, chapters, subchapters and parts and
an alphabetical list of agencies publishing in the CFR are included in
the CFR Index and Finding Aids volume to the Code of Federal Regulations
which is published separately and revised annually.
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
List of CFR Sections Affected
Chap.
17 CFR 239.701 Table of CFR Titles and Chapters
17 CFR 239.701 Title 1 -- General Provisions
I Administrative Committee of the Federal Register (Parts 1 -- 49)
II Office of the Federal Register (Parts 50 -- 299)
III Administrative Conference of the United States (Parts 300 -- 399)
IV Miscellaneous Agencies (Parts 400 -- 500)
17 CFR 239.701 Title 2 -- (Reserved)
17 CFR 239.701 Title 3 -- The President
I Executive Office of the President (Parts 100 -- 199)
17 CFR 239.701 Title 4 -- Accounts
I General Accounting Office (Parts 1 -- 99)
II Federal Claims Collection Standards (General Accounting Office --
Department of Justice) (Parts 100 -- 299)
III General Accounting Office (CASB) (Parts 300 -- 499)
17 CFR 239.701 Title 5 -- Administrative Personnel
I Office of Personnel Management (Parts 1 -- 1199)
II Merit Systems Protection Board (Parts 1200 -- 1299)
III Office of Management and Budget (Parts 1300 -- 1399)
IV Advisory Committee on Federal Pay (Parts 1400 -- 1499)
V The International Organizations Employees Loyalty Board (Parts 1500
-- 1599)
VI Federal Retirement Thrift Investment Board (Parts 1600 -- 1699)
VII Advisory Commission on Intergovernmental Relations (Parts 1700 --
1799)
VIII Office of Special Council (Parts 1800 -- 1899)
IX Appalachian Regional Commission (Parts 1900 -- 1999)
XI United States Soldiers' and Airmen's Home (Parts 2100 -- 2199)
XIV Federal Labor Relations Authority, General Counsel of the Federal
Labor Relations Authority and Federal Service Impasses Panel (Parts 2400
-- 2499)
XV Office of Administration, Executive Office of the President (Parts
2500 -- 2599)
XVI Office of Government Ethics (Parts 2600 -- 2699)
17 CFR 239.701 Title 6 -- Economic Stabilization (Reserved)
17 CFR 239.701 Title 7 -- Agriculture
Subtitle A -- Office of the Secretary of Agriculture (Parts 0 -- 26)
Subtitle B -- Regulations of the Department of Agriculture
I Agricultural Marketing Service (Standards, Inspections, Marketing
Practices), Department of Agriculture (Parts 27 -- 209)
II Food and Nutrition Service, Department of Agriculture (Parts 210
-- 299)
III Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 300 -- 399)
IV Federal Crop Insurance Corporation, Department of Agriculture
(Parts 400 -- 499)
V Agricultural Research Service, Department of Agriculture (Parts 500
-- 599)
VI Soil Conservation Service, Department of Agriculture (Parts 600 --
699)
VII Agricultural Stabilization and Conservation Service (Agricultural
Adjustment), Department of Agriculture (Parts 700 -- 799)
VIII Federal Grain Inspection Service, Department of Agriculture
(Parts 800 -- 899)
IX Agricultural Marketing Service (Marketing Agreements and Orders;
Fruits, Vegetables, Nuts), Department of Agriculture (Parts 900 -- 999)
X Agricultural Marketing Service (Marketing Agreements and Orders;
Milk), Department of Agriculture (Parts 1000 -- 1199)
XI Agricultural Marketing Service (Marketing Agreements and Orders;
Miscellaneous Commodities), Department of Agriculture (Parts 1200 --
1299)
XIV Commodity Credit Corporation, Department of Agriculture (Parts
1400 -- 1499)
XV Foreign Agricultural Service, Department of Agriculture (Parts
1500 -- 1599)
XVI Rural Telephone Bank, Department of Agriculture (Parts 1600 --
1699)
XVII Rural Electrification Administration, Department of Agriculture
(Parts 1700 -- 1799)
XVIII Farmers Home Administration, Department of Agriculture (Parts
1800 -- 2099)
XXI Foreign Economic Development Service, Department of Agriculture
(Parts 2100 -- 2199)
XXII Office of International Cooperation and Development, Department
of Agriculture (Parts 2200 -- 2299)
XXV Office of the General Sales Manager, Department of Agriculture
(Parts 2500 -- 2599)
XXVI Office of Inspector General, Department of Agriculture (Parts
2600 -- 2699)
XXVII Office of Information Resources Management, Department of
Agriculture (Parts 2700 -- 2799)
XXVIII Office of Operations, Department of Agriculture (Parts 2800 --
2899)
XXIX Office of Energy, Department of Agriculture (Parts 2900 -- 2999)
XXX Office of Finance and Management, Department of Agriculture
(Parts 3000 -- 3099)
XXXI Office of Environmental Quality, Department of Agriculture
(Parts 3100 -- 3199)
XXXII Office of Grants and Program Systems, Department of Agriculture
(Parts 3200 -- 3299)
XXXIII Office of Transportation, Department of Agriculture (Parts
3300 -- 3399)
XXXIV Cooperative State Research Service, Department of Agriculture
(Parts 3400 -- 3499)
XXXVI National Agricultural Statistics Service, Department of
Agriculture (Parts 3600 -- 3699)
XXXVII Economic Research Service, Department of Agriculture (Parts
3700 -- 3799)
XXXVIII World Agricultural Outlook Board, Department of Agriculture
(Parts 3800 -- 3899)
XXXIX Economic Analysis Staff, Department of Agriculture (Parts 3900
-- 3999)
XL Economics Management Staff, Department of Agriculture (Parts 4000
-- 4099)
XLI National Agricultural Library, Department of Agriculture (Part
4100)
17 CFR 239.701 Title 8 -- Aliens and Nationality
I Immigration and Naturalization Service, Department of Justice
(Parts 1 -- 499)
17 CFR 239.701 Title 9 -- Animals and Animal Products
I Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 1 -- 199)
II Packers and Stockyards Administration, Department of Agriculture
(Parts 200 -- 299)
III Food Safety and Inspection Service, Meat and Poultry Inspection,
Department of Agriculture (Parts 300 -- 399)
17 CFR 239.701 Title 10 -- Energy
I Nuclear Regulatory Commission (Parts 0 -- 199)
II Department of Energy (Parts 200 -- 699)
III Department of Energy (Parts 700 -- 999)
X Department of Energy (General Provisions) (Parts 1000 -- 1099)
XV Office of the Federal Inspector for the Alaska Natural Gas
Transportation System (Parts 1500 -- 1599)
XVII Defense Nuclear Facilities Safety Board (Parts 1700 -- 1799)
17 CFR 239.701 Title 11 -- Federal Elections
I Federal Election Commission (Parts 1 -- 9099)
17 CFR 239.701 Title 12 -- Banks and Banking
I Comptroller of the Currency, Department of the Treasury (Parts 1 --
199)
II Federal Reserve System (Parts 200 -- 299)
III Federal Deposit Insurance Corporation (Parts 300 -- 399)
IV Export-Import Bank of the United States (Parts 400 -- 499)
V Office of Thrift Supervision, Department of The Treasury (Parts 500
-- 599)
VI Farm Credit Administration (Parts 600 -- 699)
VII National Credit Union Administration (Parts 700 -- 799)
VIII Federal Financing Bank (Parts 800 -- 899)
IX Federal Housing Finance Board (Parts 900 -- 999)
XI Federal Financial Institutions Examination Council (Parts 1100 --
1199)
XIII Farm Credit System Assistance Board (Parts 1300 -- 1399)
XIV Farm Credit System Insurance Corporation (Parts 1400 -- 1499)
XV Thrift Depositor Protection Oversight Board (Parts 1500 -- 1599)
XVI Resolution Trust Corporation (Parts 1600 -- 1699)
17 CFR 239.701 Title 13 -- Business Credit and Assistance
I Small Business Administration (Parts 1 -- 199)
III Economic Development Administration, Department of Commerce
(Parts 300 -- 399)
17 CFR 239.701 Title 14 -- Aeronautics and Space
I Federal Aviation Administration, Department of Transportation
(Parts 1 -- 199)
II Office of the Secretary, Department of Transportation (Aviation
Proceedings) (Parts 200 -- 399)
III Office of Commercial Space Transportation, Department of
Transportation (Parts 400 -- 499)
V National Aeronautics and Space Administration (Parts 1200 -- 1299)
17 CFR 239.701 Title 15 -- Commerce and Foreign Trade
Subtitle A -- Office of the Secretary of Commerce (Parts 0 -- 29)
Subtitle B -- Regulations Relating to Commerce and Foreign Trade
I Bureau of the Census, Department of Commerce (Parts 30 -- 199)
II National Institute of Standards and Technology, Department of
Commerce (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
IV Foreign-Trade Zones Board (Parts 400 -- 499)
VII Bureau of Export Administration, Department of Commerce (Parts
700 -- 799)
VIII Bureau of Economic Analysis, Department of Commerce (Parts 800
-- 899)
IX National Oceanic and Atmospheric Administration, Department of
Commerce (Parts 900 -- 999)
XI Technology Administration, Department of Commerce (Parts 1100 --
1199)
XII United States Travel and Tourism Administration, Department of
Commerce (Parts 1200 -- 1299)
XIII East-West Foreign Trade Board (Parts 1300 -- 1399)
XIV Minority Business Development Agency (Parts 1400 -- 1499)
Subtitle C -- Regulations Relating to Foreign Trade Agreements
XX Office of the United States Trade Representative (Parts 2000 --
2099)
Subtitle D -- Regulations Relating to Telecommunications and
Information
XXIII National Telecommunications and Information Administration,
Department of Commerce (Parts 2300 -- 2399)
17 CFR 239.701 Title 16 -- Commercial Practices
I Federal Trade Commission (Parts 0 -- 999)
II Consumer Product Safety Commission (Parts 1000 -- 1799)
17 CFR 239.701 Title 17 -- Commodity and Securities Exchanges
I Commodity Futures Trading Commission (Parts 1 -- 199)
II Securities and Exchange Commission (Parts 200 -- 399)
IV Department of the Treasury (Parts 400 -- 499)
17 CFR 239.701 Title 18 -- Conservation of Power and Water Resources
I Federal Energy Regulatory Commission, Department of Energy (Parts 1
-- 399)
III Delaware River Basin Commission (Parts 400 -- 499)
VI Water Resources Council (Parts 700 -- 799)
VIII Susquehanna River Basin Commission (Parts 800 -- 899)
XIII Tennessee Valley Authority (Parts 1300 -- 1399)
17 CFR 239.701 Title 19 -- Customs Duties
I United States Customs Service, Department of the Treasury (Parts 1
-- 199)
II United States International Trade Commission (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
17 CFR 239.701 Title 20 -- Employees' Benefits
I Office of Workers' Compensation Programs, Department of Labor
(Parts 1 -- 199)
II Railroad Retirement Board (Parts 200 -- 399)
III Social Security Administration, Department of Health and Human
Services (Parts 400 -- 499)
IV Employees' Compensation Appeals Board, Department of Labor (Parts
500 -- 599)
V Employment and Training Administration, Department of Labor (Parts
600 -- 699)
VI Employment Standards Administration, Department of Labor (Parts
700 -- 799)
VII Benefits Review Board, Department of Labor (Parts 800 -- 899)
VIII Joint Board for the Enrollment of Actuaries (Parts 900 -- 999)
IX Office of the Assistant Secretary for Veterans' Employment and
Training, Department of Labor (Parts 1000 -- 1099)
17 CFR 239.701 Title 21 -- Food and Drugs
I Food and Drug Administration, Department of Health and Human
Services (Parts 1 -- 1299)
II Drug Enforcement Administration, Department of Justice (Parts 1300
-- 1399)
17 CFR 239.701 Title 22 -- Foreign Relations
I Department of State (Parts 1 -- 199)
II Agency for International Development, International Development
Cooperation Agency (Parts 200 -- 299)
III Peace Corps (Parts 300 -- 399)
IV International Joint Commission, United States and Canada (Parts
400 -- 499)
V United States Information Agency (Parts 500 -- 599)
VI United States Arms Control and Disarmament Agency (Parts 600 --
699)
VII Overseas Private Investment Corporation, International
Development Cooperation Agency (Parts 700 -- 799)
IX Foreign Service Grievance Board Regulations (Parts 900 -- 999)
X Inter-American Foundation (Parts 1000 -- 1099)
XI International Boundary and Water Commission, United States and
Mexico, United States Section (Parts 1100 -- 1199)
XII United States International Development Cooperation Agency (Parts
1200 -- 1299)
XIII Board for International Broadcasting (Parts 1300 -- 1399)
XIV Foreign Service Labor Relations Board; Federal Labor Relations
Authority; General Counsel of the Federal Labor Relations Authority;
and the Foreign Service Impasse Disputes Panel (Parts 1400 -- 1499)
XV African Development Foundation (Parts 1500 -- 1599)
XVI Japan-United States Friendship Commission (Parts 1600 -- 1699)
17 CFR 239.701 Title 23 -- Highways
I Federal Highway Administration, Department of Transportation (Parts
1 -- 999)
II National Highway Traffic Safety Administration and Federal Highway
Administration, Department of Transportation (Parts 1200 -- 1299)
III National Highway Traffic Safety Administration, Department of
Transportation (Parts 1300 -- 1399)
17 CFR 239.701 Title 24 -- Housing and Urban Development
Subtitle A -- Office of the Secretary, Department of Housing and
Urban Development (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Housing and Urban Development
I Office of Assistant Secretary for Equal Opportunity, Department of
Housing and Urban Development (Parts 100 -- 199)
II Office of Assistant Secretary for Housing-Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 200 --
299)
III Government National Mortgage Association, Department of Housing
and Urban Development (Parts 300 -- 399)
V Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 500 --
599)
VI Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 600 --
699)
VII Office of the Secretary, Department of Housing and Urban
Development (Section 8 Housing Assistance Programs and Public and Indian
Housing Programs) (Parts 700 -- 799)
VIII Office of the Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Section 8
Housing Assistance Programs and Section 202 Direct Loan Program) (Parts
800 -- 899)
IX Office of Assistant Secretary for Public and Indian Housing,
Department of Housing and Urban Development (Parts 900 -- 999)
X Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Interstate
Land Sales Registration Program) (Parts 1700 -- 1799)
XI Solar Energy and Energy Conservation Bank, Department of Housing
and Urban Development (Parts 1800 -- 1899)
XII Office of Inspector General, Department of Housing and Urban
Development (Parts 2000 -- 2099)
XV Mortgage Insurance and Loan Programs under the Emergency
Homeowners' Relief Act, Department of Housing and Urban Development
(Parts 2700 -- 2799)
XX Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 3200 --
3699)
XXV Neighborhood Reinvestment Corporation (Parts 4100 -- 4199)
17 CFR 239.701 Title 25 -- Indians
I Bureau of Indian Affairs, Department of the Interior (Parts 1 --
299)
II Indian Arts and Crafts Board, Department of the Interior (Parts
300 -- 399)
III National Indian Gaming Commission (Parts 500 -- 599)
IV Office of Navajo and Hopi Indian Relocation (Parts 700 -- 799)
17 CFR 239.701 Title 26 -- Internal Revenue
I Internal Revenue Service, Department of the Treasury (Parts 1 --
799)
17 CFR 239.701 Title 27 -- Alcohol, Tobacco Products and Firearms
I Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury
(Parts 1 -- 299)
17 CFR 239.701 Title 28 -- Judicial Administration
I Department of Justice (Parts 0 -- 199)
III Federal Prison Industries, Inc., Department of Justice (Parts 300
-- 399)
V Bureau of Prisons, Department of Justice (Parts 500 -- 599)
VI Offices of Independent Counsel, Department of Justice (Parts 600
-- 699)
VII Office of Independent Counsel (Parts 700 -- 799)
17 CFR 239.701 Title 29 -- Labor
Subtitle A -- Office of the Secretary of Labor (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Labor
I National Labor Relations Board (Parts 100 -- 199)
II Bureau of Labor-Management Relations and Cooperative Programs,
Department of Labor (Parts 200 -- 299)
III National Railroad Adjustment Board (Parts 300 -- 399)
IV Office of Labor-Management Standards, Department of Labor (Parts
400 -- 499)
V Wage and Hour Division, Department of Labor (Parts 500 -- 899)
IX Construction Industry Collective Bargaining Commission (Parts 900
-- 999)
X National Mediation Board (Parts 1200 -- 1299)
XII Federal Mediation and Conciliation Service (Parts 1400 -- 1499)
XIV Equal Employment Opportunity Commission (Parts 1600 -- 1699)
XVII Occupational Safety and Health Administration, Department of
Labor (Parts 1900 -- 1999)
XX Occupational Safety and Health Review Commission (Parts 2200 --
2499)
XXV Pension and Welfare Benefits Administration, Department of Labor
(Parts 2500 -- 2599)
XXVI Pension Benefit Guaranty Corporation (Parts 2600 -- 2699)
XXVII Federal Mine Safety and Health Review Commission (Parts 2700 --
2799)
17 CFR 239.701 Title 30 -- Mineral Resources
I Mine Safety and Health Administration, Department of Labor (Parts 1
-- 199)
II Minerals Management Service, Department of the Interior (Parts 200
-- 299)
III Board of Surface Mining and Reclamation Appeals, Department of
the Interior (Parts 300 -- 399)
IV Geological Survey, Department of the Interior (Parts 400 -- 499)
VI Bureau of Mines, Department of the Interior (Parts 600 -- 699)
VII Office of Surface Mining Reclamation and Enforcement, Department
of the Interior (Parts 700 -- 999)
17 CFR 239.701 Title 31 -- Money and Finance: Treasury
Subtitle A -- Office of the Secretary of the Treasury (Parts 0 -- 50)
Subtitle B -- Regulations Relating to Money and Finance
I Monetary Offices, Department of the Treasury (Parts 51 -- 199)
II Fiscal Service, Department of the Treasury (Parts 200 -- 399)
IV Secret Service, Department of the Treasury (Parts 400 -- 499)
V Office of Foreign Assets Control, Department of the Treasury (Parts
500 -- 599)
VI Bureau of Engraving and Printing, Department of the Treasury
(Parts 600 -- 699)
VII Federal Law Enforcement Training Center, Department of the
Treasury (Parts 700 -- 799)
VIII Office of International Investment, Department of the Treasury
(Parts 800 -- 899)
17 CFR 239.701 Title 32 -- National Defense
Subtitle A -- Department of Defense
I Office of the Secretary of Defense (Parts 1 -- 399)
V Department of the Army (Parts 400 -- 699)
VI Department of the Navy (Parts 700 -- 799)
VII Department of the Air Force (Parts 800 -- 1099)
Subtitle B -- Other Regulations Relating to National Defense
XII Defense Logistics Agency (Parts 1200 -- 1299)
XVI Selective Service System (Parts 1600 -- 1699)
XIX Central Intelligence Agency (Parts 1900 -- 1999)
XX Information Security Oversight Office (Parts 2000 -- 2099)
XXI National Security Council (Parts 2100 -- 2199)
XXIV Office of Science and Technology Policy (Parts 2400 -- 2499)
XXVII Office for Micronesian Status Negotiations (Parts 2700 -- 2799)
XXVIII Office of the Vice President of the United States (Parts 2800
-- 2899)
17 CFR 239.701 Title 33 -- Navigation and Navigable Waters
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Corps of Engineers, Department of the Army (Parts 200 -- 399)
IV Saint Lawrence Seaway Development Corporation, Department of
Transportation (Parts 400 -- 499)
17 CFR 239.701 Title 34 -- Education
Subtitle A -- Office of the Secretary, Department of Education (Parts
1 -- 99)
Subtitle B -- Regulations of the Offices of the Department of
Education
I Office for Civil Rights, Department of Education (Parts 100 -- 199)
II Office of Elementary and Secondary Education, Department of
Education (Parts 200 -- 299)
III Office of Special Education and Rehabilitative Services,
Department of Education (Parts 300 -- 399)
IV Office of Vocational and Adult Education, Department of Education
(Parts 400 -- 499)
V Office of Bilingual Education and Minority Languages Affairs,
Department of Education (Parts 500 -- 599)
VI Office of Postsecondary Education, Department of Education (Parts
600 -- 699)
VII Office of Educational Research and Improvement, Department of
Education (Parts 700 -- 799)
17 CFR 239.701 Title 35 -- Panama Canal
I Panama Canal Regulations (Parts 1 -- 299)
17 CFR 239.701 Title 36 -- Parks, Forests, and Public Property
I National Park Service, Department of the Interior (Parts 1 -- 199)
II Forest Service, Department of Agriculture (Parts 200 -- 299)
III Corps of Engineers, Department of the Army (Parts 300 -- 399)
IV American Battle Monuments Commission (Parts 400 -- 499)
V Smithsonian Institution (Parts 500 -- 599)
VII Library of Congress (Parts 700 -- 799)
VIII Advisory Council on Historic Preservation (Parts 800 -- 899)
IX Pennsylvania Avenue Development Corporation (Parts 900 -- 999)
XI Architectural and Transportation Barriers Compliance Board (Parts
1100 -- 1199)
XII National Archives and Records Administration (Parts 1200 -- 1299)
17 CFR 239.701 Title 37 -- Patents, Trademarks, and Copyrights
I Patent and Trademark Office, Department of Commerce (Parts 1 --
199)
II Copyright Office, Library of Congress (Parts 200 -- 299)
III Copyright Royalty Tribunal (Parts 300 -- 399)
IV Assistant Secretary for Technology Policy, Department of Commerce
(Parts 400 -- 499)
V Under Secretary for Technology, Department of Commerce (Parts 500
-- 599)
17 CFR 239.701 Title 38 -- Pensions, Bonuses, and Veterans' Relief
I Department of Veterans Affairs (Parts 0 -- 99)
17 CFR 239.701 Title 39 -- Postal Service
I United States Postal Service (Parts 1 -- 999)
III Postal Rate Commission (Parts 3000 -- 3099)
17 CFR 239.701 Title 40 -- Protection of Environment
I Environmental Protection Agency (Parts 1 -- 799)
V Council on Environmental Quality (Parts 1500 -- 1599)
17 CFR 239.701 Title 41 -- Public Contracts and Property Management
Subtitle B -- Other Provisions Relating to Public Contracts
50 Public Contracts, Department of Labor (Parts 50-1 -- 50-999)
51 Committee for Purchase from the Blind and Other Severely
Handicapped (Parts 51-1 -- 51-99)
60 Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor (Parts 60-1 -- 60-999)
61 Office of the Assistant Secretary for Veterans Employment and
Training, Department of Labor (Parts 61-1 -- 61-999)
Subtitle C -- Federal Property Management Regulations System
101 Federal Property Management Regulations (Parts 101-1 -- 101-99)
105 General Services Administration (Parts 105-1 -- 105-999)
109 Department of Energy Property Management Regulations (Parts 109-1
-- 109-99)
114 Department of the Interior (Parts 114-1 -- 114-99)
115 Environmental Protection Agency (Parts 115-1 -- 115-99)
128 Department of Justice (Parts 128-1 -- 128-99)
132 Department of the Air Force (Parts 132-1 -- 132-99)
Subtitle D -- Other Provisions Relating to Property Management
(Reserved)
Subtitle E -- Federal Information Resources Management Regulations
System
201 Federal Information Resources Management Regulation (Parts 201-1
-- 201-99)
Subtitle F -- Federal Travel Regulation System
301 Travel Allowances (Parts 301-1 -- 301-99)
302 Relocation Allowances (Parts 302-1 -- 302-99)
303 Payment of Expenses Connected with the Death of Certain Employees
(Parts 303-1 -- 303-2)
304 Payment from a non-Federal source for travel expenses (Parts
304-1 -- 304-99)
17 CFR 239.701 Title 42 -- Public Health
I Public Health Service, Department of Health and Human Services
(Parts 1 -- 199)
IV Health Care Financing Administration, Department of Health and
Human Services (Parts 400 -- 499)
V Office of Inspector General-Health Care, Department of Health and
Human Services (Parts 1000 -- 1999)
17 CFR 239.701 Title 43 -- Public Lands: Interior
Subtitle A -- Office of the Secretary of the Interior (Parts 1 --
199)
Subtitle B -- Regulations Relating to Public Lands
I Bureau of Reclamation, Department of the Interior (Parts 200 --
499)
II Bureau of Land Management, Department of the Interior (Parts 1000
-- 9999)
17 CFR 239.701 Title 44 -- Emergency Management and Assistance
I Federal Emergency Management Agency (Parts 0 -- 399)
IV Department of Commerce and Department of Transportation (Parts 400
-- 499)
17 CFR 239.701 Title 45 -- Public Welfare
Subtitle A -- Department of Health and Human Services, General
Administration (Parts 1 -- 199)
Subtitle B -- Regulations Relating to Public Welfare
II Office of Family Assistance (Assistance Programs), Family Support
Administration, Department of Health and Human Services (Parts 200 --
299)
III Office of Child Support Enforcement (Child Support Enforcement
Program), Family Support Administration, Department of Health and Human
Services (Parts 300 -- 399)
IV Office of Refugee Resettlement, Administration for Children and
Families Department of Health and Human Services (Parts 400 -- 499)
V Foreign Claims Settlement Commission of the United States,
Department of Justice (Parts 500 -- 599)
VI National Science Foundation (Parts 600 -- 699)
VII Commission on Civil Rights (Parts 700 -- 799)
VIII Office of Personnel Management (Parts 800 -- 899)
X Office of Community Services, Family Support Administration,
Department of Health and Human Services (Parts 1000 -- 1099)
XI National Foundation on the Arts and the Humanities (Parts 1100 --
1199)
XII ACTION (Parts 1200 -- 1299)
XIII Office of Human Development Services, Department of Health and
Human Services (Parts 1300 -- 1399)
XVI Legal Services Corporation (Parts 1600 -- 1699)
XVII National Commission on Libraries and Information Science (Parts
1700 -- 1799)
XVIII Harry S. Truman Scholarship Foundation (Parts 1800 -- 1899)
XX Commission on the Bicentennial of the United States Constitution
(Parts 2000 -- 2099)
XXI Commission on Fine Arts (Parts 2100 -- 2199)
XXII Christopher Columbus Quincentenary Jubilee Commission (Parts
2200 -- 2299)
XXIV James Madison Memorial Fellowship Foundation (Parts 2400 --
2499)
17 CFR 239.701 Title 46 -- Shipping
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Maritime Administration, Department of Transportation (Parts 200
-- 399)
III Coast Guard (Great Lakes Pilotage), Department of Transportation
(Parts 400 -- 499)
IV Federal Maritime Commission (Parts 500 -- 599)
17 CFR 239.701 Title 47 -- Telecommunication
I Federal Communications Commission (Parts 0 -- 199)
II Office of Science and Technology Policy and National Security
Council (Parts 200 -- 299)
III National Telecommunications and Information Administration,
Department of Commerce (Parts 300 -- 399)
17 CFR 239.701 Title 48 -- Federal Acquisition Regulations System
1 Federal Acquisition Regulation (Parts 1 -- 99)
2 Department of Defense (Parts 200 -- 299)
3 Department of Health and Human Services (Parts 300 -- 399)
4 Department of Agriculture (Parts 400 -- 499)
5 General Services Administration (Parts 500 -- 599)
6 Department of State (Parts 600 -- 699)
7 Agency for International Development (Parts 700 -- 799)
8 Department of Veterans Affairs (Parts 800 -- 899)
9 Department of Energy (Parts 900 -- 999)
10 Department of the Treasury (Parts 1000 -- 1099)
12 Department of Transportation (Parts 1200 -- 1299)
13 Department of Commerce (Parts 1300 -- 1399)
14 Department of the Interior (Parts 1400 -- 1499)
15 Environmental Protection Agency (Parts 1500 -- 1599)
16 Office of Personnel Management Federal Employees Health Benefits
Acquisition Regulation (Parts 1600 -- 1699)
17 Office of Personnel Management (Parts 1700 -- 1799)
18 National Aeronautics and Space Administration (Parts 1800 -- 1899)
19 United States Information Agency (Parts 1900 -- 1999)
22 Small Business Administration (Parts 2200 -- 2299)
24 Department of Housing and Urban Development (Parts 2400 -- 2499)
25 National Science Foundation (Parts 2500 -- 2599)
28 Department of Justice (Parts 2800 -- 2899)
29 Department of Labor (Parts 2900 -- 2999)
34 Department of Education Acquisition Regulation (Parts 3400 --
3499)
35 Panama Canal Commission (Parts 3500 -- 3599)
44 Federal Emergency Management Agency (Parts 4400 -- 4499)
51 Department of the Army Acquisition Regulations (Parts 5100 --
5199)
52 Department of the Navy Acquisition Regulations (Parts 5200 --
5299)
53 Department of the Air Force Federal Acquisition Regulation
Supplement (Parts 5300 -- 5399)
57 African Development Foundation (Parts 5700 -- 5799)
61 General Services Administration Board of Contract Appeals (Parts
6100 -- 6199)
63 Department of Transportation Board of Contract Appeals (Parts 6300
-- 6399)
99 Cost Accounting Standards Board, Office of Federal Procurement
Policy, Office of Management and Budget (Parts 9900 -- 9999)
17 CFR 239.701 Title 49 -- Transportation
Subtitle A -- Office of the Secretary of Transportation (Parts 1 --
99)
Subtitle B -- Other Regulations Relating to Transportation
I Research and Special Programs Administration, Department of
Transportation (Parts 100 -- 199)
II Federal Railroad Administration, Department of Transportation
(Parts 200 -- 299)
III Federal Highway Administration, Department of Transportation
(Parts 300 -- 399)
IV Coast Guard, Department of Transportation (Parts 400 -- 499)
V National Highway Traffic Safety Administration, Department of
Transportation (Parts 500 -- 599)
VI Urban Mass Transportation Administration, Department of
Transportation (Parts 600 -- 699)
VII National Railroad Passenger Corporation (AMTRAK) (Parts 700 --
799)
VIII National Transportation Safety Board (Parts 800 -- 899)
X Interstate Commerce Commission (Parts 1000 -- 1399)
17 CFR 239.701 Title 50 -- Wildlife and Fisheries
I United States Fish and Wildlife Service, Department of the Interior
(Parts 1 -- 199)
II National Marine Fisheries Service, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 200 -- 299)
III International Regulatory Agencies (Fishing and Whaling) (Parts
300 -- 399)
IV Joint Regulations (United States Fish and Wildlife Service,
Department of the Interior and National Marine Fisheries Service,
National Oceanic and Atmospheric Administration, Department of
Commerce); Endangered Species Committee Regulations (Parts 400 -- 499)
V Marine Mammal Commission (Parts 500 -- 599)
VI Fishery Conservation and Management, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 600 -- 699)
17 CFR 239.701 CFR Index and Finding Aids Subject/Agency Index
List of Agency Prepared Indexes Parallel Table of Statutory Authorities
and Rules Acts Requiring Publication in the Federal Register List of CFR
Titles, Chapters, Subchapters, and Parts
17 CFR 239.701 Alphabetical List of Agencies Appearing in the CFR
CFR Title, Subtitle or
Agency
Chapter
ACTION 45, XII
Administrative Committee of the Federal Register 1, I
Administrative Conference of the United States 1, III
Advisory Commission on Intergovernmental Relations 5, VII
Advisory Committee on Federal Pay 5, IV
Advisory Council on Historic Preservation 36, VIII
African Development Foundation 22, XV; 48, 57
Agency for International Development 22, II; 48, 7
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Agriculture Department
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Animal and Plant Health Inspection Service 7, III; 9, I
Commodity Credit Corporation 7, XIV
Cooperative State Research Service 7, XXXIV
Economic Analysis Staff 7, XXXIX
Economic Research Service 7, XXXVII
Economics Management Staff 7, XL
Energy, Office of 7, XXIX
Environmental Quality, Office of 7, XXXI
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 4
Federal Crop Insurance Corporation 7, IV
Federal Grain Inspection Service 7, VIII
Finance and Management, Office of 7, XXX
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Economic Development Service 7, XXI
Forest Service 36, II
General Sales Manager, Office of 7, XXV
Grants and Program Systems, Office of 7, XXXII
Information Resources Management, Office of 7, XXVII
Inspector General, Office of 7, XXVI
International Cooperation and Development Office 7, XXII
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
Operations Office 7, XXVIII
Packers and Stockyards Administration 9, II
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Secretary of Agriculture, Office of 7, Subtitle A
Soil Conservation Service 7, VI
Transportation, Office of 7, XXXIII
World Agriculture Outlook Board 7, XXXVIII
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Federal Acquisition Regulation Supplement 48, 53
Alaska Natural Gas Transportation System, Office of the Federal
Inspector 10, XV
Alcohol, Tobacco and Firearms, Bureau of 27, I
AMTRAK 49, VII
American Battle Monuments Commission 36, IV
Animal and Plant Health Inspection Service 7, III; 9, I
Appalachian Regional Commission 5, IX
Architectural and Transportation Barriers Compliance Board 36, XI
Arms Control and Disarmament Agency, U.S. 22, VI
Army Department 32, V
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 51
Assistant Secretary for Technology Policy, Department of Commerce 37,
IV
Benefits Review Board 20, VII
Bicentennial of the United States Constitution, Commission on the 45,
XX
Bilingual Education and Minority Languages Affairs, Office of 34, V
Blind and Other Severely Handicapped, Committee for Purchase from 41,
51
Board for International Broadcasting 22, XIII
Budget, Office of Management and 5, III
Census Bureau 15, I
Central Intelligence Agency 32, XIX
Child Support Enforcement, Office of 45, III
Christopher Columbus Quincentenary Jubilee Commission 45, XXII
Civil Rights Commission 45, VII
Civil Rights, Office for (Education Department) 34, I
Claims Collection Standards, Federal 4, II
Coast Guard 33, I; 46, I, III; 49, IV
Commerce Department 44, IV
Census Bureau 15, I
Assistant Secretary for Technology Policy 37, IV
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Endangered Species Committee 50, IV
Export Administration Bureau 15, VII
Federal Acquisition Regulation 48, 13
Fishery Conservation and Management 50, VI
International Trade Administration 15, III; 19, III
National Institute of Standards and Technology 15, II
National Marine Fisheries Service 50, II, IV
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Telecommunications and Information Administration 15, XXIII;
47, III
Patent and Trademark Office 37, I
Productivity, Technology and Innovation, Assistant Secretary for 37,
IV
Secretary of Commerce, Office of 15, Subtitle A
Technology Administration 15, XI
Under Secretary for Technology 37, V
United States Travel and Tourism Administration 15, XII
Commercial Space Transportation, Office of, Department of
Transportation 14, III
Commission on the Bicentennial of the United States Constitution 45,
XX
Committee for Purchase from the Blind and Other Severely Handicapped
41, 51
Commodity Credit Corporation 7, XIV
Commodity Futures Trading Commission 17, I
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Community Services, Office of 45, X
Comptroller of the Currency 12, I
Construction Industry Collective Bargaining Commission 29, IX
Consumer Product Safety Commission 16, II
Cooperative State Research Service 7, XXXIV
Copyright Office 37, II
Copyright Royalty Tribunal 37, III
Cost Accounting Standards Board, Office of Federal Procurement Policy
48, 99
Council on Environmental Quality 40, V
Customs Service, United States 19, I
Defense Department 32, Subtitle A
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Army Department 32, V; 33, II; 36, III, 48, 51
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 2
Navy Department 32, VI; 48, 52
Secretary of Defense, Office of 32, I
Defense Logistics Agency 32, XII
Defense Nuclear Facilities Safety Board 10, XVII
Delaware River Basin Commission 18, III
Drug Enforcement Administration 21, II
East-West Foreign Trade Board 15, XIII
Economic Affairs, Under Secretary (Commerce) 37, V
Economic Analysis, Bureau of 15, VIII
Economic Analysis Staff, Department of Agriculture 7, XXXIX
Economic Development Administration 13, III
Economics Management Staff 7, XL
Economic Research Service 7, XXXVII
Education, Department of
Bilingual Education and Minority Languages Affairs, Office of 34, V
Civil Rights, Office for 34, I
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Federal Acquisition Regulation 48, 34
Postsecondary Education, Office of 34, VI
Secretary of Education, Office of 34, Subtitle A
Special Education and Rehabilitative Services, Office of 34, III
Vocational and Adult Education, Office of 34, IV
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Employees' Compensation Appeals Board 20, IV
Employees Loyalty Board, International Organizations 5, V
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Endangered Species Committee 50, IV
Energy, Department of 10, II, III, X; 41, 109
Federal Acquisition Regulation 48, 9
Federal Energy Regulatory Commission 18, I
Energy, Office of, Department of Agriculture 7, XXIX
Engineers, Corps of 33, II; 36, III
Engraving and Printing, Bureau of 31, VI
Environmental Protection Agency 40, I; 41, 115; 48, 15
Environmental Quality, Office of (Agriculture Department) 7, XXXI
Equal Employment Opportunity Commission 29, XIV
Equal Opportunity, Office of Assistant Secretary for 24, I
Executive Office of the President 3, I
Administration, Office of 5, XV
Export Administration Bureau 15, VII
Export-Import Bank of the United States 12, IV
Family Assistance, Office of 45, II
Family Support Administration 45, II, III, IV, X
Farm Credit Administration 12, VI
Farm Credit System Assistance Board 12, XIII
Farm Credit System Insurance Corporation 12, XIV
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 1
Federal Aviation Administration 14, I
Federal Claims Collection Standards 4, II
Federal Communications Commission 47, I
Federal Contract Compliance Programs, Office of 41, 60
Federal Crop Insurance Corporation 7, IV
Federal Deposit Insurance Corporation 12, III
Federal Election Commission 11, I
Federal Emergency Management Agency 44, I; 48, 44
Federal Energy Regulatory Commission 18, I
Federal Financial Institutions Examination Council 12, XI
Federal Financing Bank 12, VIII
Federal Grain Inspection Service 7, VIII
Federal Highway Administration 23, I, II; 49, III
Federal Home Loan Mortgage Corporation 1, IV
Federal Housing Finance Board 12, IX
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Inspector for the Alaska Natural Gas Transportation System,
Office of 10, XV
Federal Labor Relations Authority, and General Counsel of the Federal
Labor Relations Authority 5, XIV; 22, XIV
Federal Law Enforcement Training Center 31, VII
Federal Maritime Commission 46, IV
Federal Mediation and Conciliation Service 29, XII
Federal Mine Safety and Health Review Commission 29, XXVII
Federal Pay, Advisory Committee on 5, IV
Federal Prison Industries, Inc. 28, III
Federal Procurement Policy Office 48, 99
Federal Property Management Regulations 41, 101
Federal Property Management Regulations System 41, Subtitle C
Federal Railroad Administration 49, II
Federal Register, Administrative Committee of 1, I
Federal Register, Office of 1, II
Federal Reserve System 12, II
Federal Retirement Thrift Investment Board 5, VI
Federal Service Impasses Panel 5, XIV
Federal Trade Commission 16, I
Federal Travel Regulation System 41, Subtitle F
Finance and Management, Department of Agriculture 7, XXX
Fine Arts Commission 45, XXI
Fiscal Service 31, II
Fish and Wildlife Service, United States 50, I, IV
Fishery Conservation and Management 50, VI
Fishing and Whaling, International Regulatory Agencies 50, III
Food and Drug Administration 21, I
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Assets Control, Office of 31, V
Foreign Claims Settlement Commission of United States 45, V
Foreign Economic Development Service 7, XXI
Foreign Service Grievance Board 22, IX
Foreign Service Impasse Disputes Panel 22, XIV
Foreign Service Labor Relations Board 22, XIV
Foreign-Trade Zones Board 15, IV
Forest Service 36, II
General Accounting Office 4, I, II, III
General Sales Manager, Office of 7, XXV
General Services Administration
Contract Appeals Board 48, 61
Federal Acquisition Regulation 48, 5
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Property Management Regulations System 41, 101, 105
Federal Travel Regulation System 41, Subtitle F
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Reduction in Meeting and Training Allowance Payments 41, 304
Relocation Allowances 41, 302
Travel Allowances 41, 301
Geological Survey 30, IV
Government Ethics, Office of 5, XVI
Government National Mortgage Association 24, III
Grants and Program Systems, Office of 7, XXXII
Great Lakes Pilotage 46, III
Harry S. Truman Scholarship Foundation 45, XVIII
Health and Human Services, Department of 45, Subtitle A
Child Support Enforcement, Office of 45, III
Community Services, Office of 45, X
Family Assistance, Office of 45, II
Family Support Administration 45, II, III, IV, X
Federal Acquisition Regulation 48, 3
Food and Drug Administration 21, I
Health Care Financing Administration 42, IV
Human Development Services Office 45, XIII
Inspector General, Office of 42, V
Public Health Service 42, I
Refugee Resettlement, Office of 45, IV
Social Security Administration 20, III; 45, IV
Health Care Financing Administration 42, IV
Housing and Urban Development, Department of
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Equal Opportunity, Office of Assistant Secretary for 24, I
Federal Acquisition Regulation 48, 24
Government National Mortgage Association 24, III
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Inspector General, Office of 24, XII
Mortgage Insurance and Loan Programs Under Emergency Homeowners'
Relief Act 24, XV
Public and Indian Housing, Office of Assistant Secretary for 24, IX
Secretary, Office of 24, Subtitle B, VII
Solar Energy and Energy Conservation Bank 24, XI
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Human Development Services Office 45, XIII
Immigration and Naturalization Service 8, I
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Information Agency, United States 22, V; 48, 19
Information Resources Management, Office of, Agriculture Department
7, XXVII
Information Security Oversight Office 32, XX
Inspector General, Office of, Agriculture Department 7, XXVI
Inspector General, Office of, Health and Human Services Department
42, V
Inspector General, Office of, Housing and Urban Development
Department 24, XII
Inter-American Foundation 22, X
Intergovernmental Relations, Advisory Commission on 5, VII
Interior Department
Endangered Species Committee 50, IV
Federal Acquisition Regulation 48, 14
Federal Property Management Regulations System 41, 114
Fish and Wildlife Service, United States 50, I, IV
Geological Survey 30, IV
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Land Management Bureau 43, II
Minerals Management Service 30, II
Mines, Bureau of 30, VI
National Park Service 36, I
Reclamation Bureau 43, I
Secretary of the Interior, Office of 43, Subtitle A
Surface Mining and Reclamation Appeals, Board of 30, III
Surface Mining Reclamation and Enforcement, Office of 30, VII
United States Fish and Wildlife Service 50, I, IV
Internal Revenue Service 26, I
International Boundary and Water Commission, United States and Mexico
22, XI
International Cooperation and Development Office, Department of
Agriculture 7, XXII
International Development, Agency for 22, II
International Development Cooperation Agency 22, XII
International Development, Agency for 22, II
Overseas Private Investment Corporation 22, VII
International Joint Commission, United States and Canada 22, IV
International Organizations Employees Loyalty Board 5, V
International Regulatory Agencies (Fishing and Whaling) 50, III
International Trade Administration 15, III; 19, III
International Trade Commission, United States 19, II
Interstate Commerce Commission 49, X
Japan-United States Friendship Commission 22, XVI
Joint Board for the Enrollment of Actuaries 20, VIII
Justice Department 28, I; 41, 128
Drug Enforcement Administration 21, II
Federal Acquisition Regulation 48, 28
Federal Claims Collection Standards 4, II
Federal Prison Industries, Inc. 28, III
Foreign Claims Settlement Commission of the United States 45, V
Immigration and Naturalization Service 8, I
Offices of Independent Counsel 28, VI
Prisons, Bureau of 28, V
Labor Department
Benefits Review Board 20, VII
Employees' Compensation Appeals Board 20, IV
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Federal Acquisition Regulation 48, 29
Federal Contract Compliance Programs, Office of 41, 60
Federal Procurement Regulations System 41, 50
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Mine Safety and Health Administration 30, I
Occupational Safety and Health Administration 29, XVII
Pension and Welfare Benefits Administration 29, XXV
Public Contracts 41, 50
Secretary of Labor, Office of 29, Subtitle A
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Wage and Hour Division 29, V
Workers' Compensation Programs, Office of 20, I
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Land Management, Bureau of 43, II
Legal Services Corporation 45, XVI
Library of Congress 36, VII
Copyright Office 37, II
Management and Budget, Office of 5, III; 48, 99
Marine Mammal Commission 50, V
Maritime Administration 46, II
Merit Systems Protection Board 5, II
Micronesian Status Negotiations, Office for 32, XXVII
Mine Safety and Health Administration 30, I
Minerals Management Service 30, II
Mines, Bureau of 30, VI
Minority Business Development Agency 15, XIV
Miscellaneous Agencies 1, IV
Monetary Offices 31, I
Mortgage Insurance and Loan Programs Under the Emergency Homeowners'
Relief Act, Department of Housing and Urban Development 24, XV
National Aeronautics and Space Administration 14, V; 48, 18
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
National Archives and Records Administration 36, XII
National Bureau of Standards 15, II
National Capital Planning Commission 1, IV
National Commission for Employment Policy 1, IV
National Commission on Libraries and Information Science 45, XVII
National Credit Union Administration 12, VII
National Foundation on the Arts and the Humanities 45, XI
National Highway Traffic Safety Administration 23, II, III; 49, V
National Indian Gaming Commission 25, III
National Institute of Standards and Technology 15, II
National Labor Relations Board 29, I
National Marine Fisheries Service 50, II, IV
National Mediation Board 29, X
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Park Service 36, I
National Railroad Adjustment Board 29, III
National Railroad Passenger Corporation (AMTRAK) 49, VII
National Science Foundation 45, VI; 48, 25
National Security Council 32, XXI
National Security Council and Office of Science and Technology Policy
47, II
National Telecommunications and Information Administration 15, XXIII;
47, III
National Transportation Safety Board 49, VIII
Navy Department 32, VI; 48, 52
Neighborhood Reinvestment Corporation 24, XXV
Nuclear Regulatory Commission 10, I
Occupational Safety and Health Administration 29, XVII
Occupational Safety and Health Review Commission 29, XX
Office of Independent Counsel 28, VII
Office of Navajo and Hopi Indian Relocation 25, IV
Offices of Independent Counsel, Department of Justice 28, VI
Operations Office, Department of Agriculture 7, XXVIII
Overseas Private Investment Corporation 22, VII
Oversight Board 12, XV
Packers and Stockyards Administration 9, II
Panama Canal Commission 48, 35
Panama Canal Regulations 35, I
Patent and Trademark Office 37, I
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Peace Corps 22, III
Pennsylvania Avenue Development Corporation 36, IX
Pension and Welfare Benefits Administration, Department of Labor 29,
XXV
Pension Benefit Guaranty Corporation 29, XXVI
Personnel Management, Office of 5, I; 45, VIII; 48, 17
Federal Employees Health Benefits Acquisition Regulation 48, 16
Postal Rate Commission 39, III
Postal Service, United States 39, I
Postsecondary Education, Office of 34, VI
President's Commission on White House Fellowships 1, IV
Presidential Documents 3
Prisons, Bureau of 28, V
Productivity, Technology and Innovation, Assistant Secretary
(Commerce) 37, IV
Property Management Regulations System, Federal 41, Subtitle C
Public Contracts, Department of Labor 41, 50
Public Health Service 42, I
Railroad Retirement Board 20, II
Reclamation Bureau 43, I
Reduction in Meeting and Training Allowance Payments 41, 304
Refugee Resettlement, Office of 45, IV
Regional Action Planning Commissions 13, V
Relocation Allowances 41, 302
Research and Special Programs Administration 49, I
Resolution Trust Corporation 12, XVI
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Saint Lawrence Seaway Development Corporation 33, IV
Science and Technology Policy, Office of 32, XXIV
Science and Technology Policy, Office of, and National Security
Council 47, II
Secret Service 31, IV
Securities and Exchange Commission 17, II
Selective Service System 32, XVI
Small Business Administration 13, I; 48, 22
Smithsonian Institution 36, V
Social Security Administration 20, III; 45, IV
Soil Conservation Service 7, VI
Solar Energy and Energy Conservation Bank, Department of Housing and
Urban Development 24, XI
Soldiers' and Airmen's Home, United States 5, XI
Special Counsel, Office of 5, VIII
Special Education and Rehabilitative Services, Office of 34, III
State Department 22, I
Federal Acquisition Regulation 48, 6
Surface Mining and Reclamation Appeals, Board of 30, III
Susquehanna River Basin Commission 18, VIII
Technology Administration 15, XI
Tennessee Valley Authority 18, XIII
Thrift Supervision Office, Department of the Treasury 12, V
Trade Representative, United States, Office of 15, XX
Transportation, Department of 44, IV
Coast Guard 33, I; 46, I, III; 49, IV
Commercial Space Transportation, Office of 14, III
Contract Appeals Board 48, 63
Federal Acquisition Regulation 48, 12
Federal Aviation Administration 14, I
Federal Highway Administration 23, I, II; 49, III
Federal Railroad Administration 49, II
Maritime Administration 46, II
National Highway Traffic Safety Administration 23, II, III; 49, V
Research and Special Programs Administration 49, I
Saint Lawrence Seaway Development Corporation 33, IV
Secretary of Transportation, Office of 14, II; 49, Subtitle A
Urban Mass Transportation Administration 49, VI
Transportation, Office of, Department of Agriculture 7, XXXIII
Travel Allowance 41, 301
Travel and Tourism Administration, United States 15, XII
Treasury Department 17, IV
Alcohol, Tobacco and Firearms, Bureau of 27, I
Comptroller of the Currency 12, I
Customs Service, United States 19, I
Engraving and Printing, Bureau of 31, VI
Federal Acquisition Regulation 48, 10
Federal Law Enforcement Training Center 31, VII
Fiscal Service 31, II
Foreign Assets Control, Office of 31, V
Internal Revenue Service 26, I
Monetary Offices 31, I
Secret Service 31, IV
Secretary of the Treasury, Office of 31, Subtitle A
Thrift Supervision Office 12, V
United States Customs Service 19, I
Truman, Harry S. Scholarship Foundation 45, XVIII
Under Secretary for Technology, Department of Commerce 37, V
United States and Canada, International Joint Commission 22, IV
United States Arms Control and Disarmament Agency 22, VI
United States Customs Service 19, I
United States Fish and Wildlife Service 50, I, IV
United States Information Agency 22, V; 48, 19
United States International Development Cooperation Agency 22, XII
United States International Trade Commission 19, II
United States Postal Service 39, I
United States Soldiers' and Airmen's Home 5, XI
United States Trade Representative, Office of 15, XX
United States Travel and Tourism Adminstration 15, XII
Urban Mass Transportation Administration 49, VI
Veterans Affairs Department 38, I; 48, 8
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Vice President of the United States, Office of 32, XXVIII
Vocational and Adult Education, Office of 34, IV
Wage and Hour Division 29, V
Water Resources Council 18, VI
Workers' Compensation Programs, Office of 20, I
World Agriculture Outlook Board 7, XXXVIII
17 CFR 239.701 17 CFR (4-1-92 Edition)
17 CFR 239.701 List of CFR Sections Affected
17 CFR 239.701 List of CFR Sections Affected
All changes in this volume of the Code of Federal Regulations which
were made by documents published in the Federal Register since January
1, 1986, are enumerated in the following list. Entries indicate the
nature of the changes effected. Page numbers refer to Federal Register
pages. The user should consult the entries for chapters and parts as
well as sections for revisions.
For the period before January 1, 1986, see the ''List of CFR Sections
Affected, 1949-1963, 1964-1972, 1973-1985'' which is published in seven
separate volumes.
17 CFR 239.701 1986
17 CFR
51 FR
Page
Chapter II
200 Authority citation amended 1784, 4305, 25684
200.16a Added 4305
200.30-1 (d) revised 18882
(f)(12) added 25881
(f)(13) added 44275
200.30-3 (a)(46) added 739
(a)(27) revised 1785
(a)(35) revised 25882
200.30-6 (a)(3) revised 18882
200.30-15 Added 25684
200.80 (c)(1)(iii) introductory text corrected 5703
200.80e Revised 40790
200.503 Introductory text amended 5315
200.504 (g) revised; introductory text amended 5315
200.505 (c) amended 5315
200.508 (a) amended 5315
200.510 (a) amended 5315
200.511 (a) amended 5315
200.800 (b) table amended (OMB numbers) 9769
202.3a Effectiveness extended to 11-1-86 4160
Added; eff. to 9-1-87 40791
210 Authority citation revised 3770
210.3-05 (b)(1) introductory text amended 42056
210.3A-02 Revised 17330
210.4-08 (m) added 3770
211 Interpretative releases 739,
17331, 25194, 33886, 36007, 39652, 41080, 43594, 44446, 45314
229.202 (b)(9) revised 42056
229.304 Revised 42056
229.403 (a) amended 42056
229.601 Table revised 42057
Table corrected 45576
230 Authority citation amended 2475, 20262
230.151 Added 20262
230.157 (a) amended 25362
230.251 -- 230.264 (Regulation A) Authority citation revised 12842
230.255 (c) revised 12842
230.457 (b) through (m) redesignated as (c) through (n); new (f)(3)
and (g)(3) amended; new (b) added; new (c), (f)(1), and (h) revised
2475
230.503 Revised 36386
231 Interpretative releases 34462, 43594
239 Authority citation revised 11908
239.11 Form S-1 amended 42057
239.12 Form S-2 amended 42057
239.18 Form S-11 amended 42057
239.23 Form N-14 amended 42057
239.25 Form S-4 amended 42058
239.28 Form S-18 amended 12843, 42058
239.34 Form F-4 amended 42058
239.64 Heading, introductory text, and Form SE revised 11908
239.500 Form D revised 36387
17 CFR 239.701 1987
17 CFR
52 FR
Page
Chapter II
200.1 -- 200.30-15 (Subpart A) Authority citation amended 2677
200.11 (b) amended 2677
200.19b Revised 12148
200.30-3 (a)(6) revised 19856
200.30-4 (a)(7) revised 12148
200.30-5 (a)(8) added 2401
(a)(8) revised 18690
200.80 -- 200.83 (Subpart D) Authority citation amended 2677
Authority citation revised; section authority citations removed
24146
200.80 (c)(1)(iii) amended 2677
(a)(1)(iv), (2) introductory text, and (3), (b) introductory text,
(d)(5), (7)(i), and (8) introductory text, and (e)(5) amended;
(b)(7)(i), (c)(1) introductory text, (d) (1), (2), (4), and (6)(ii), and
(e) (1), (2), (4), and (7) introductory text revised; (e) (8) through
(14) added; (f) removed; interim 24146
Confirmed 48193
200.80b (a) removed; (b) amended and designation removed; interim
24148
Confirmed 48193
200.80c Heading and (a) amended; (b) revised; interim 24148
Confirmed 48193
200.80d Revised 24148
Confirmed 48193
200.80e Revised 24148
Confirmed 48193
200.301 -- 200.312 (Subpart H) Authority citation amended 2677
200.303 (a)(2) amended 2677
200.312 (a)(17) revised; (a)(22) removed; (a) (23) through (30)
redesignated as (a) (22) through (29) and revised 2677
201 Authority citation amended 25208
201.6 (b) revised 25208
202.3a Effectiveness extended to 9-1-88 33796
203.7 (a) revised 12148
210.6-07 Amended 23172
211 Interpretative releases 17396,
18200, 21933, 31027, 46454, 48193
229.10 (c)(1)(iii) amended 21260
229.301 Instructions amended 30919
229.302 (b) removed; (c) redesignated as (b) and amended 30919
229.303 Instructions amended 30919
229.304 Instructions amended 21939
229.401 (f) amended 48982
229.501 (c)(8) revised 21260
(c)(8) corrected 30145
229.502 (d)(2) revised 21260
(d)(2) corrected 30145
229.512 (j) added 21260
(h) heading and introductory text amended 21939
(j) corrected 30145
229.601 Instruction 1 (Item 601) revised 21260
230.423 Amended 21260
230.424 (a), (b), (c), and (e) revised; (c) Note added 21260
230.430A Added 21261
230.481 (b)(2) and (d)(2) revised 21262
(b)(2) corrected 30146
230.482 (a)(4) added 21262
230.497 (h) added 21262
230.499 (c)(7) amended 21262
239.13 Form S-3 amended 21262
Form S-3 corrected 30146
239.16b Form S-8 amended 21262
239.25 Form S-4 amended 21262, 21938
Form S-4 corrected 30146
239.33 Form F-3 amended 21263
Form F-3 corrected 30146
239.34 Form F-4 amended 21263, 21939
Form F-4 corrected 30146
17 CFR 239.701 1988
17 CFR
53 FR
Page
Chapter II
200 Authority citation revised 25882
Interpretation 42944
200.1 -- 200.30-15 (Subpart A) Authority citation revised 17458
200.30-1 (j) added 12921
200.30-3 (a)(6) revised 30839
(a)(47) added 51538
200.30-14 (f) added; authority citation removed 17458
200.81 Heading and (a) revised; (b) text and Note and (c) amended
12413
(a) revised 32605
200.601 -- 200.670 (Subpart L) Added 25882, 25885
200.670 (c) revised 25882
200.735-3 (b)(7)(ii) revised; (b)(7)(iii) amended 17458
200.735-5 Revised 18553
200.800 (b) table amended (OMB numbers) 9764
201.1 -- 201.29 (Subpart A) Authority citation added 28191
201.2 (e)(7) revised 26434
201.23 (e) added 28191
202.3a Effectiveness extended to 9-1-90 32891
211 Interpretative releases 109, 110, 865, 1341, 7892,29226,33454,
34715, 47801
229.304 Revised 12929
230.100 -- 230.215 Authority citation revised 17459
230.122 Amended 17459
230.144 (a)(3) revised 12921
230.174 (d) and (e) redesignated as (e) and (f); new (d) added 11845
230.215 (e) removed; (f) and (g) redesignated as (e) and (f); new
(g) added; (a), (c), new (f), and (h) revised; eff. 4-11-88 7868
230.420 Revised; eff. 5-1-88 3878
230.424 (a) revised; (f) added; eff. 5-1-88 3878
230.482 (a) introductory text and (1), (c) Note and (d) revised;
(a)(3) Note, (5), (6) and Note and (e) through (f) added; eff. 5-1-88
3879
(e)(1)(i) and (ii) eff. date deferred to 7-1-88 15022
Technical correction 9768
230.497 Heading, (a) and (g) revised; (i) added; eff. 5-1-88 3880
230.499 (c)(7) revised; eff. 5-1-88 3880
230.501 (a)(5) removed; (a)(6) and (7) redesignated as (a)(5) and
(6); (a)(1), (3), new (6) and (8) revised; new (a)(7) and (e)(3)
added; (c) amended; eff. 4-11-88 7868
230.502 (b)(2)(i)(A), (B), and (C) redesignated as (b)(2)(i)(B), (C),
and (D); new (b)(2)(i)(A) added; new (b)(2)(i)(B) heading and (C)
heading, (ii)(B) and (vi) revised; (b)(2)(i)(D) amended; eff. 4-11-88
7869
230.504 Heading, (b), and Notes 1 and 2 revised; Note 3 added 7869
230.701 Added 12921
230.702(T) Added (temporary) 12922
230.703(T) Added (temporary) 12922
231 Interpretative releases 29226
239.15A Form N-1A amended; eff. 5-1-88 3196, 3881
239.701 Added 12922
Designation and Form N-1A corrected 5269
17 CFR 239.701 1989
17 CFR
54 FR
Page
Chapter II
200 Authority citation removed 18100
200.1 -- 200.30-16 (Subpart A) Authority citation revised 18100
Authority citation amended 24331
200.15 Removed 18100
200.16 Revised 18100
200.19b Revised 24331
200.21 (b) redesignated as (c); (a) revised; new (b) added 18100
(a) amended 24331
Authority citation removed 24332
200.30-1 (d) revised; eff. 4-19-89 11371
200.30-3 (a)(48) added 28797
200.30-4 Introductory text and (a)(7) revised 24331
Authority citation removed 24331
200.30-8 Removed 18101
200.30-10 (b) redesignated as (c); new (b) added 53051
200.30-14 Introductory text revised; (g), (h), and (i) added 18101
(f) revised 33500
200.30-16 Added 18102
200.80 (b)(7)(i) introductory text, (A), (ii) and (8) revised 24331
200.200 -- 200.205 (Subpart G) Authority citation revised 40862
200.203 (c) introductory text amended; (c)(1)(i) through (vi)
revised; (c)(1)(vii), (viii), and (ix) removed 40862
200.301 -- 200.312 (Subpart H) Authority citation revised 40862
Authority citation corrected 46373
200.303 (a)(2) amended 40862
(a)(2) corrected 50307
200.312 (a) introductory text and (1) through (8) revised; (a)(9)
through (29) removed 24332
(a)(8), (10) and (18) removed; (a)(9), (11) through (17), and (19)
through (29) redesignated as (a)(8) through (a)(26) and republished
40863
(a)(8) revised 46373
Corrected 46373
200.402 (a)(5)(iv), (7)(i)(A), (ii), (8) and (9)(ii) revised 24332
Authority citation removed 24332
200.735-3 (b)(7)(ii) and (iii) revised; Footnote 6 unchanged 33500
200.800 Amended; OMB numbers 13057
201.31 Revised 53051
201.32 Revised 53051
201.33 (b) redesignated as (c); new (b) added 53051
201.34 (b) revised 53051
201.35 (a) revised 53051
201.36 (b) revised 53051
201.37 Revised 53051
201.41 (b) revised 53051
201.44 (c) removed; (b) redesignated as (c); new (b) added 53052
201.54 Revised 53052
201.55 (a) revised 53052
201.59 Revised 53052
201.61 -- 201.68 (Subpart C) Added 28799
202 Authority citation revised 24332
202.5 Authority citation removed; (b) revised 24332
203.2 Revised 24333
210.3-06 Added; eff. 4-12-89 10315
210.3-12 (d) and (e) redesignated as (e) and (f); new (d) added;
eff. 4-12-89 10316
211 Interpretative releases 22427
211 Staff Accounting Bulletin No. 81 added 14073
Staff Accounting Bulletin No. 82 added 29333
Staff Accounting Bulletin No. 83 added 32333
Staff Accounting Bulletin No. 84 added 32334
Staff Accounting Bulletin No. 85 added 39351
Staff Accounting Bulletin No. 86 added 41084
Staff Accounting Bulletin No. 87 added 51880
229.304 (a)(3) revised; eff. 4-7-89 9774
230.122 Amended 33501
230.215 Introductory text republished; (a) revised; eff. 4-19-89
11372
230.501 Introductory text, (a)(1), (c), (e)(2) and (h)(4) revised;
(e) introductory text and (h) introductory text republished; eff.
4-19-89 11372
230.502 Introductory text, (b)(1), Note, (2)(i), (D), (ii)
introductory text, (iii), (iv) and (d) introductory text revised; new
(b)(2)(vii) and (d) concluding text added; eff. 4-19-89 11372
230.503 (a) revised; eff. 4-19-89 11373
230.504 (b)(1) revised; new (b)(2)(ii) added; eff. 4-19-89 11373
230.505 (b)(1) and (2)(ii) revised; eff. 4-19-89 11373
230.506 (b)(1), (2)(i) and (ii) revised; eff. 4-19-89 11373
230.507 Added; eff. 4-19-89 11374
230.508 Added; eff. 4-19-89 11374
231 Comment time extended 17947
Interpretative releases 5600, 22427
239.17a Form N-3 amended; eff. 5-1-89 4776
239.17b Form N-4 amended; eff. 5-1-89 4778
239.500 Revised; eff. 4-19-89 11374
17 CFR 239.701 1990
17 CFR
55 FR
Page
Chapter II
200.1 -- 200.30-16 (Subpart A) Authority citation revised 11168
200.30-1 (g) and (h) removed; (i) and (j) redesignated as (g) and
(h) 11168
(i) added 17943
(j) added 18322
Technical correction 20894
200.30-3 (a)(49) added 19062
(a)(38) revised 45603
200.30-11 (e) added 11168
200.80 (c)(1) introductory text, (e)(7)(i) and (ii) revised;
(c)(1)(iii) amended 41188
200.80e Amended 41189
200.301 -- 200.312 (Subpart H) Authority citation revised 19872
200.313 Added 19872
200.400 -- 200.410 (Subpart I) Authority citation revised 10235
200.410 (d) added 10235
202.3a Effective date extended to 9-1-92 34011
211 Staff Accounting Bulletin No. 88 added 33284
229 Authority citation revised 23922
229.512 (f) and authority citation removed; (g), (h), (i), and (j)
redesignated as (f), (g), (h) and (i); new (h) introductory text
revised 23922
229.601 Authority citation revised; (b)(5) note added 23922
230 Authority citation amended 17943, 18322
Authority citation revised 23922
230.144 (d)(3) removed; (d)(4) redesignated as (d)(3); (a)(3),
(c)(2), (d)(1), (2), new (3)(iv) through (vii), and note, and (k)
revised; new (d)(3)(viii) added 17944
Technical correction 20894
230.144A Added 17945
Technical correction 20894
230.145 (d) revised 17944
Technical correction 20894
230.402 Authority citation removed; (c) added 23922
230.405 Amended 23923
230.416 Authority citation removed 23922
Heading revised; (c) added 23923
230.424 Authority citation removed 23922
(b) amended 23923
230.428 Added 23923
230.457 Authority citation removed 23922
(h) revised 23924
230.462 Added 23924
230.472 Authority citation removed 23922
(d) added 23924
230.475a Heading revised; introductory text amended 23924
230.501 -- 230.508 (Regulation D) Preliminary Note 7 revised 18322
230.502 (a) Note revised 18322
230.901 -- 230.904 (Regulation S) Added 18322
239.13 Form S-3 amended 23925
239.16b Revised 23925
Form S-8 revised 23925
239.33 Form F-3 amended 23924
239.144 Amended 40162
17 CFR 239.701 1991
17 CFR
56 FR
Page
Chapter II
200 Implementation 22824
200.1 -- 200.30-16 (Subpart A) Authority citation revised 22319,
30052
200.30-1 (e)(5) through (8) added 22319
(f)(14) added; authority citation removed 30053
200.30-3 (a)(50) added 27194
(a)(35) revised; authority citation removed 30053
200.30-5 (a)(9) added 12446
201 Authority citation revised 30053
201.24 Introductory text amended; authority citation removed 30053
210 Authority citation revised 30053, 57247
210.3-01 (h) revised; authority citation removed 30053
210.3-02 (d) revised; authority citation removed 30053
210.3-12 (f) revised; authority citation removed 30053
210.3-19 (a) revised; authority citation removed 30053
210.11-01 (a)(6) and (7) redesignated as (a)(7) and (8); new (a)(6)
added 57247
211 Staff Accounting Bulletin No. 89 added 951
Staff Accounting Bulletin No. 90 added 4939
Staff Accounting Bulletin No. 91 added 33376
Interpretive releases 37000
229 Authority citation revised 7265, 22319
229.302 (a)(5) introductory text revised; authority citation removed
30053
229.402 General Instruction 1 revised 30053
229.404 Authority citation removed 30053
Instruction 3 revised 30054
229.405 Added; eff. 5-1-91 7265
229.510 Amended 48103
229.512 (j) added 22319
229.601 (b)(10)(iii)(B)(5) revised 30054
229.901 -- 229.915 (Subpart 229.900) Added 57247
230 Authority citation revised 30054
Authority citation redesignated from 230.100 -- 230.215 authority
citation 56299
230.100 -- 230.215 Authority citation redesignated as part 230
authority citation 56299
230.158 (a) and (b) revised; authority citation removed 30054
230.175 (b)(1)(i) revised; authority citation removed 30054
230.424 (b)(3) revised; (b)(6) added 30054
230.430A (a)(2) revised 48103
230.467 Added 30054
230.473 Authority citation removed 30054
(d) revised 30055
230.480-230.489 Note revised 56299
230.482 (a)(6) amended; (a)(7) added; (d) revised; eff. 6-1-91
8124
230.489 Added 56299
230.502 Authority citation removed 30054
(b)(2)(i)(D) and (ii)(D) revised 30055
231 Interpretive releases 28986, 37000
239 Authority citation revised 30055
239.12 (e) revised; Form S-2 amended 30055
239.13 (a) (5) revised; Forms S-3 and S-4 amended 30055
Forms S-8 and S-11 amended 30056
239.15A Form N-1A amended; eff. 6-1-91 8129
239.17a Form N-3 amended; eff. 6-1-91 8129
239.17b Form N-4 amended; eff. 6-1-91 8129
239.25 Form S-4 amended 57254
239.31 Authority citation removed 30055
(a) revised; Form F-1 amended 30056
239.32 Authority citation removed 30054
(a), (b)(2), (d), (e) and (g) revised; Form F-2 amended 30056
239.33 Authority citation removed 30055
(a)(1), (6)(iii), (6) note, (b)(1) and (3) revised; Form F-3 amended
30057
239.34 Revised; Form F-4 amended 30058
Form F-4 amended 57254
239.37 Added 30060
239.38 Added 30061
239.39 Added 30063
239.40 Added 30064
239.41 Added 30065
239.42 Added 30067
239.43 Added 56299
17 CFR 239.701 1992
17 CFR
57 FR
Page
Chapter II
200.1 -- 200.30-16 (Subpart A) Authority citation corrected 10614
229 Authority citation corrected 10614
230.428 (b)(2) and Instruction 2 correctly revised 10614
239 Authority citation corrected 10614
239.15A Form N-1A amended 9829
239.32 Form F-2 corrected 10615
239.37 Form F-7 corrected 10615
239.38 Form F-8 corrected 10615
239.39 Form F-9 corrected 10615
239.40 Form F-10 corrected 10615
239.41 Form F-80 corrected 10615
239.42 Form F-X corrected 10615
17
Commodity and Securities Exchanges
PARTS 200 to 239
Revised as of April 1, 1992
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF APRIL 1, 1992
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
Washington, DC 20402-9328
17 CFR 239.701 Table of Contents
Page
Explanation v
Title 17:
Chapter II -- Securities and Exchange Commission
Finding Aids:
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
List of CFR Sections Affected
17 CFR 239.701 Explanation
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
name of the issuing agency. Each chapter is further subdivided into
parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16 as of January 1
Title 17 through Title 27 as of April 1
Title 28 through Title 41 as of July 1
Title 42 through Title 50 as of October 1
The appropriate revision date is printed on the cover of each volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
together to determine the latest version of any given rule.
To determine whether a Code volume has been amended since its
revision date (in this case, April 1, 1992), consult the ''List of CFR
Sections Affected (LSA),'' which is issued monthly, and the ''Cumulative
List of Parts Affected,'' which appears in the Reader Aids section of
the daily Federal Register. These two lists will identify the Federal
Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
Register since the last revision of that volume of the Code. Source
citations for the regulations are referred to by volume number and page
number of the Federal Register and date of publication. Publication
dates and effective dates are usually not the same and care must be
exercised by the user in determining the actual effective date. In
instances where the effective date is beyond the cut-off date for the
Code a note has been inserted to reflect the future effective date. In
those instances where a regulation published in the Federal Register
states a date certain for expiration, an appropriate note will be
inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires Federal
agencies to display an OMB control number with their information
collection request. Many agencies have begun publishing numerous OMB
control numbers as amendments to existing regulations in the CFR. These
OMB numbers are placed as close as possible to the applicable
recordkeeping or reporting requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
January 1, 1986, consult either the List of CFR Sections Affected,
1949-1963, 1964-1972, or 1973-1985, published in seven separate volumes.
For the period beginning January 1, 1986, a ''List of CFR Sections
Affected'' is published at the end of each CFR volume.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
and Finding Aids. This volume contains the Parallel Table of Statutory
Authorities and Agency Rules (Table I), and Acts Requiring Publication
in the Federal Register (Table II). A list of CFR titles, chapters, and
parts and an alphabetical list of agencies publishing in the CFR are
also included in this volume.
An index to the text of ''Title 3 -- The President'' is carried
within that volume.
The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ''Contents'' entries in
the daily Federal Register.
A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
in the Code of Federal Regulations.
INQUIRIES AND SALES
For a summary, legal interpretation, or other explanation of any
regulation in this volume, contact the issuing agency. Inquiries
concerning editing procedures and reference assistance with respect to
the Code of Federal Regulations may be addressed to the Director, Office
of the Federal Register, National Archives and Records Administration,
Washington, DC 20408 (telephone 202-523-3517). All mail order sales are
handled exclusively by the Superintendent of Documents, Attn: New
Orders, P.O. Box 371954, Pittsburgh, PA 15250-7954. Charge orders may
be telephoned to the Government Printing Office order desk at
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Martha L. Girard,
Director,
Office of the Federal Register.
April 1, 1992.
17 CFR 239.701 THIS TITLE
Title 17 -- Commodity and Securities Exchanges is composed of three
volumes. The first volume containing parts 1 to 199, comprises Chapter
I -- Commodity Futures Trading Commission. The second volume contains
Chapter II -- Securities and Exchange Commission, parts 200 to 239. The
third volume, comprising part 240 to End, contains the remaining
regulations of the Securities and Exchange Commission, and Chapter IV --
Department of the Treasury. The contents of these volumes represent all
current regulations issued by the Commodity Futures Trading Commission,
the Securities and Exchange Commission, and the Department of the
Treasury as of April 1, 1992.
The OMB control numbers for the Securities and Exchange Commission
appear in 200.800 of chapter II. For the convenience of the user,
200.800 is reprinted in the Finding Aids section of the volume
containing part 240 to End.
For this volume, Gertrude E. Belton was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Richard L. Claypoole, assisted by Alomha S. Morris.
18 CFR 0.0 18 CFR Ch. I (4-1-92 Edition)
18 CFR 0.0 Federal Energy Regulatory Commission
18 CFR 0.0 Title 18 -- Conservation of Power
18 CFR 0.0 and Water Resources
18 CFR 0.0 (This book contains parts 1 to 149)
Part
chapter i -- Federal Energy Regulatory Commission, Department of
Energy 1
Cross References: Applications and entries conflicting with lands
reserved or classified as power sites, or covered by power applications:
See Public Lands, Interior, 43 CFR subpart 2320.
Interstate Commerce Commission: See Transportation, 49 CFR chapter
X.
Irrigation projects; electrification, Bureau of Indian Affairs,
Department of the Interior: See Indians, 25 CFR parts 175 -- 177.
Regulations of the Bureau of Land Management relating to
rights-of-way for power, telephone, and telegraph purposes: See Public
Lands, Interior, 43 CFR Group 2800.
Rights-of-way over Indian lands: See Indians, 25 CFR parts 169, 170,
and 265.
Securities and Exchange Commission: See Commodity and Securities
Exchanges, 17 CFR chapter II.
Withdrawal of public lands: See Public Lands, Interior, 43 CFR Group
2300.
18 CFR 0.0 18 CFR Ch. I (4-1-92 Edition)
18 CFR 0.0 Federal Energy Regulatory Commission
18 CFR 0.0 CHAPTER I -- FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
18 CFR 0.0
18 CFR 0.0 SUBCHAPTER A -- GENERAL RULES
Part
Page
1 Rules of general applicability
1b Rules relating to investigations
2 General policy and interpretations
3 Organization; operation; information and requests
3a National security information
3b Collection, maintenance, use, and dissemination of records of
identifiable personal information
3c Standards of conduct
18 CFR 0.0 SUBCHAPTER B -- REGULATIONS UNDER THE FEDERAL POWER ACT
4 Licenses, permits, exemptions, and determination of project costs
6 Surrender or termination of license
8 Recreational opportunities and development at licensed projects
9 Transfer of license or lease of project property
11 Annual charges under Part I of the Federal Power Act
12 Safety of water power projects and project works
16 Procedures relating to takeover and relicensing of licensed
projects
20 Authorization of the issuance of securities by licensees and
companies subject to sections 19 and 20 of the Federal Power Act
24 Declaration of intention
25 Application for vacation of withdrawal and for determination
permitting restoration to entry
32 Interconnection of facilities
33 Application for sale, lease, or other disposition, merger or
consolidation of facilities, or for purchase or acquisition of
securities of a public utility
34 Application for authorization of the issuance of securities or the
assumption of liabilities
35 Filing of rate schedules
41 Accounts, records, and memoranda
45 Application for authority to hold interlocking positions
46 Public utility filing requirements and filing requirements for
persons holding interlocking positions
50 Filing of company procurement policies and practices
18 CFR 0.0 SUBCHAPTER C -- ACCOUNTS, FEDERAL POWER ACT
101 Uniform system of accounts prescribed for public utilities and
licensees subject to the provisions of the Federal Power Act
103 Steam road investments in road and equipment; application of ICC
classification
104 Note (Reserved)
116 Units of property for use in accounting for additions and
retirements of electric plant
125 Preservation of records of public utilities and licensees
18 CFR 0.0 SUBCHAPTER D -- APPROVED FORMS, FEDERAL POWER ACT
131 Forms
141 Statements and reports (schedules)
142-149 (Reserved)
Abbreviations: The following abbreviations are used in this chapter:
M.c.f.=Thousand cubic feet. B.t.u.=British thermal units.
ICC=Interstate Commerce Commission.
18 CFR 0.0 18 CFR Ch. I (4-1-92 Edition)
18 CFR 0.0 Federal Energy Regulatory Commission
18 CFR 0.0 SUBCHAPTER A -- GENERAL RULES
18 CFR 0.0 PART 1 -- RULES OF GENERAL APPLICABILITY
Sec.
18 CFR 0.0 Subpart A -- Definitions and Rules of Construction
1.101 Definitions.
1.102 Words denoting number, gender and so forth.
Authority: Dept. of Energy Organization Act, 42 U.S.C. 7101-7352;
E.O. 12009, 3 CFR 142 (1978); Administrative Procedure Act, 5 U.S.C.
Ch. 5.
18 CFR 0.0 Subpart A -- Definitions and Rules of Construction
18 CFR 1.101 Definitions.
The definitions set forth in this section apply for purposes of this
chapter, except as otherwise provided in this chapter:
(a) Commission means the Federal Energy Regulatory Commission.
(b) Chairman means the Chairman of the Commission.
(c) Commissioner and Member mean a member of the Commission.
(d) Secretary means the Secretary of the Commission.
(e) Executive Director means the Executive Director of the
Commission.
(f) General Counsel means the General Counsel of the Commission.
(g) DOE Act means the Department of Energy Organization Act.
(h) DOE means the Department of Energy.
(i) Administrative law judge means an officer appointed under section
3105 of title 5 of the United States Code.
(j) Attorney means an attorney admitted to practice before the
Supreme Court of the United States or the highest court of any State,
territory of the United States, or the District of Columbia, or any
other person with the requisite qualifications to represent others, who
acts in a representative capacity for any participant before the
Commission.
(k) State Commission means the regulatory body of any State or
municipality having jurisdiction to regulate rates or charges for the
sale of electric energy or natural gas to consumers or for the
transportation of oil by pipeline within the State or municipality.
(l) Oath includes affirmation and sworn includes affirmed.
(Order 225, 47 FR 19022, May 3, 1982; 48 FR 786, Jan. 7, 1983)
18 CFR 1.102 Words denoting number, gender and so forth.
In determining the meaning of any provision of this chapter, unless
the context indicates otherwise:
(a) The singular includes the plural;
(b) The plural includes the singular;
(c) The present tense includes the future tense; and
(d) Words of one gender include the other gender.
(Order 225, 47 FR 19022, May 3, 1982)
18 CFR 1.102 PART 1b -- RULES RELATING TO INVESTIGATIONS
Sec.
1b.1 Definitions.
1b.2 Scope.
1b.3 Scope of investigations.
1b.4 Types of investigations.
1b.5 Formal investigations.
1b.6 Preliminary investigations.
1b.7 Procedure after investigation.
1b.8 Requests for Commission investigations.
1b.9 Confidentiality of investigations.
1b.10 By whom conducted.
1b.11 Limitation on participation.
1b.12 Transcripts.
1b.13 Powers of persons conducting formal investigations.
1b.14 Subpoenas.
1b.15 Non-compliance with compulsory processes.
1b.16 Rights of witnesses.
1b.17 Appearance and practice before the Commission.
1b.18 Right to submit statements.
1b.19 Submissions.
1b.20 Request for confidential treatment.
Authority: Natural Gas Act, 15 U.S.C. 717 et seq. ; Federal Power
Act, 16 U.S.C. 792 et seq. ; Interstate Commerce Act, 49 U.S.C. 1 et
seq. ; Department of Energy Organization Act, Pub. L. 95-91; E.O.
12009, 42 FR 46267.
Source: 43 FR 27174, June 23, 1978, unless otherwise noted.
18 CFR 1b.1 Definitions.
For purposes of this part --
(a) Formal investigation means an investigation instituted by a
Commission Order of Investigation.
(b) Preliminary Investigation means an inquiry conducted by the
Commission or its staff, other than a formal investigation.
(c) Investigating officer means the individual(s) designated by the
Commission in an Order of Investigation as Officer(s) of the Commission.
18 CFR 1b.2 Scope.
This part applies to investigations conducted by the Commission but
does not apply to adjudicative proceedings.
18 CFR 1b.3 Scope of investigations.
The Commission may conduct investigations relating to any matter
subject to its jurisdiction.
18 CFR 1b.4 Types of investigations.
Investigations may be formal or preliminary, and public or private.
18 CFR 1b.5 Formal investigations.
The Commission may, in its discretion, initiate a formal
investigation by issuing an Order of Investigation. Orders of
Investigation will outline the basis for the investigation, the matters
to be investigated, the officer(s) designated to conduct the
investigation and their authority. The director of the office
responsible for the investigation may add or delete Investigating
Officers in the Order of Investigation.
18 CFR 1b.6 Preliminary investigations.
The Commission or its staff may, in its discretion, initiate a
preliminary investigation. In such investigations, no process is issued
or testimony compelled. Where it appears from the preliminary
investigation that a formal investigation is appropriate, the staff will
so recommend to the Commission.
18 CFR 1b.7 Procedure after investigation.
Where it appears that there has been or may be a violation of any of
the provisions of the acts administered by the Commission or the rules,
opinions or orders thereunder, the Commission may institute
administrative proceedings, initiate injunctive proceedings in the
courts, refer matters, where appropriate, to the other governmental
authorities, or take other appropriate action.
18 CFR 1b.8 Requests for Commission investigations.
(a) Any individual, partnership, corporation, association,
organization, or other Federal or State governmental entity, may request
the Commission to institute an investigation.
(b) Requests for investigations should set forth the alleged
violation of law with supporting documentation and information as
completely as possible. No particular forms or formal procedures are
requested.
(c) It is the Commission's policy not to disclose the name of the
person or entity requesting an investigation except as required by law,
or where such disclosure will aid the investigation.
18 CFR 1b.9 Confidentiality of investigations.
All information and documents obtained during the course of an
investigation, whether or not obained pursuant to subpoena, and all
investigative proceedings shall be treated as nonpublic by the
Commission and its staff except to the extent that (a) the Commission
directs or authorizes the public disclosure of the investigation; (b)
the information or documents are made a matter of public record during
the course of an adjudicatory proceeding; or (c) disclosure is required
by the Freedom of Information Act, 5 U.S.C. 552. Procedures by which
persons submitting information to the Commission during the course of an
investigation may specifically seek confidential treatment of
information for purposes of Freedom of Information Act disclosure are
set forth in 18 CFR part 3b and 1b.20. A request for confidential
treatment of information for purposes of Freedom of Information Act
disclosure shall not, however, prevent disclosure for law enforcement
purposes or when disclosure is otherwise found appropriate in the public
interest and permitted by law.
18 CFR 1b.10 By whom conducted.
Formal Commission investigations are conducted by the Commission or
by an individual(s) designated and authorized in the Order of
Investigation. Investigating Officers are officers within the meaning
of the statutes administered by the Commission and are authorized to
perform the duties of their office in accordance with the laws of the
United States and the regulations of the Commission. Investigating
Officers shall have such duties as the Commission may specify in an
Order of Investigation.
18 CFR 1b.11 Limitation on participation.
There are no parties, as that term is used in adjudicative
proceedings, in an investigation under this part and no person may
intervene or participate as a matter of right in any investigation under
this part. Section 2.72 of the rules is specifically not applicable to
private investigations conducted by the Commission or its staff.
18 CFR 1b.12 Transcripts.
Transcripts, if any, of investigative testimony shall be recorded
solely by the official reporter, or by any other person or means
designated by the investigating officer. A witness who has given
testimony in an investigation shall be entitled, upon written request,
to procure a transcript of the witness' own testimony on payment of the
appropriate fees, except that in a non-public formal investigation, the
office responsible for the investigation may for good cause deny such
request. In any event, any witness or his counsel, upon proper
identification, shall have the right to inspect the official transcript
of the witness' own testimony. This provision supersedes 385.1904(b)
of this chapter.
(43 FR 27174, June 23, 1978, as amended by Order 225, 47 FR 19054,
May 3, 1982)
18 CFR 1b.13 Powers of persons conducting formal investigations.
Any member of the Commission or the Investigating Officer, in
connection with any formal investigation ordered by the Commission, may
administer oaths and affirmations, subpoena witnesses, compel their
attendance, take evidence, and require the production of any books,
papers, correspondence, memoranda, contracts, agreements or other
records relevant or material to the investigation.
18 CFR 1b.14 Subpoenas.
(a) Service of a subpoena upon a person named therein shall be made
be the investigating officer (1) by personal delivery, (2) by certified
mail, (3) by leaving a copy thereof at the principle office or place of
business of the person to be served, (4) or by delivery to any person
designated as agent for service or the person's attorney.
(b) At the time for producing documents subpoenaed in an
investigation, the subpoenaed party shall submit a statement stating
that, if true, such person has made a diligent search for the subpoenaed
documents and is producing all the documents called for by the subpoena.
If any subpoenaed document(s) are not produced for any reason, the
subpoenaed party shall state the reason therefor.
(c) If any subpoenaed documents in an investigation are withheld
because of a claim of the attorney-client privilege, the subpoenaed
party shall submit a list of such documents which shall, for each
document, identify the attorney involved, the client involved, the date
of the document, the person(s) shown on the document to have prepared
and/or sent the document, and the person(s) shown on the document to
have received copies of the document.
18 CFR 1b.15 Non-compliance with compulsory processes.
In cases of failure to comply with Commission compulsory processes,
appropriate action may be initiated by the Commission or the Attorney
General, including but not limited to actions for enforcement or the
imposition of penalties.
18 CFR 1b.16 Rights of witnesses.
(a) Any person who is compelled or requested to furnish documentary
evidence or testimony in a formal investigation shall, upon request, be
shown the Commission's Order of Investigation. Copies of Orders of
Investigation shall not be furnished, for their retention, to such
persons requesting the same except with the express approval of the
director of the office responsible for the investigation. Such approval
shall not be given unless the director of the office responsible for the
investigation, in the director's discretion is satisfied that there
exist reasons consistent with the protection of privacy of persons
involved in the investigation and with the unimpeded conduct of the
investigation.
(b) Any person compelled to appear, or who appears in person at a
formal investigation by request or permission of the Investigating
Officer may be accompanied, represented and advised by counsel, as
provided by 385.2101 of this chapter and these rules, except that all
witnesses shall be sequestered and, unless permitted in the discretion
of the Investigating Officer, no witness or the counsel accompanying any
such witness shall be permitted to be present during the examination of
any other witness called in such proceeding. When counsel does
represent more than one person in an investigation, for example, where
the counsel is counsel to the witness and his employer, said counsel
shall inform the Investigating Officer and each client of said counsel's
possible conflict of interest in representing that client and, if said
counsel appears with a witness giving testimony on the record in an
investigation, counsel shall state on the record all persons said
counsel represents in the investigation.
(c) Any witness may be accompanied, represented, and advised by
counsel as follows:
(1) Counsel for a witness may advise the witness, in confidence, upon
his initiative or the witness' with respect to any question, and if the
witness refuses to answer a question, then the witness or counsel may
briefly state on the record the legal grounds for such refusal.
(2) Where it is claimed that the witness has a privilege to refuse to
answer a question on the grounds of self-incrimination, the witness must
assert the privilege personally.
(3) Following completion of the examination of a witness, such
witness may make a statement on the record and his counsel may on the
record question the witness to enable the witness to clarify any of the
witness' answers or to offer other evidence.
(4) The Investigating Officer shall take all necessary action to
regulate the course of the proceeding to avoid delay and prevent or
restrain obstructionist or contumacious conduct or contemptuous
language. Such officer may report to the Commission any instances where
an attorney or representative has refused to comply with his directions,
or has engaged in obstructionist or contumacious conduct or has used
contemptuous language in the course of the proceeding. The Commission
may thereupon take such further action as the circumstances may warrant,
including suspension or disbarment of counsel from further appearance or
practice before it, in accordance with 385.2101 of this chapter, or
exclusion from further participation in the particular investigation.
(d) Unless otherwise ordered by the Commission, in any public formal
investigation, if the record shall contain implications of wrongdoing by
any person, such person shall have the right to appear on the record;
and in addition to the rights afforded other witnesses hereby, he shall
have a reasonable opportunity of cross-examination and production of
rebuttal testimony or documentary evidence. Reasonable shall mean
permitting persons as full an opportunity to assert their position as
may be granted consistent with administrative efficiency and with
avoidance of undue delay. The determinations of reasonableness in each
instance shall be made in the discretion of the investigating officer.
(43 FR 27174, June 23, 1978, as amended by Order 225, 47 FR 19054,
May 3, 1982)
18 CFR 1b.17 Appearance and practice before the Commission.
The provisions of subpart U of part 385 of this chapters are
specifically applicable to all investigations.
(43 FR 27174, June 23, 1978, as amended by Order 225, 47 FR 19054,
May 3, 1982)
18 CFR 1b.18 Right to submit statements.
Any person may, at any time during the course of an investigation,
submit documents, statements of facts or memoranda of law for the
purpose of explaining said person's position or furnishing evidence
which said person considers relevant regarding the matters under
investigation.
18 CFR 1b.19 Submissions.
When the Investigating Officer determines it is appropriate in the
interest of the proper administration of the law, he may inform any
person that a recommendation may be made to the Commission that said
person be a defendant in a civil action to be brought by the Commission.
In such case, said person may submit a statement of fact, argument,
and/or memorandum of law, with such supporting documentation as said
person chooses showing why said person should not be a defendant in any
civil action brought by the Commission. The investigating officer shall
inform said potential defendant of the date by which such statement may
be submitted to said officer, and if such statement is submitted by such
date, it shall be presented to the Commission together with any
recommendation for enforcement action by the office responsible for the
investigation.
18 CFR 1b.20 Request for confidential treatment.
Any person compelled to produce documents in an investigation may
claim that some or all of the information contained in a particular
document(s) is exempt from the mandatory public disclosure requirements
of the Freedom of Information Act (5 U.S.C. 552), is information
referred to in 18 U.S.C. 1905, or is otherwise exempt by law from public
disclosure. In such case, the person making such claim shall, at the
time said person produces the document to the officer conducting the
investigation shall also produce a second copy of the document from
which has been deleted the information for which the person wishes to
claim confidential treatment. The person shall indicate on the original
document that a request for confidential treatment is being made for
some or all of the information in the document and shall file a
statement specifying the specific statutory justification for
non-disclosure of the information for which confidential treatment is
claimed. General claims of confidentiality are not sufficient.
Sufficient information must be furnished for the officer conducting the
investigation, or other appropriate official, to make an informed
decision on the request for confidential treatment. If the person
states that the information comes within the exception in 5 U.S.C.
552(b)(4) for trade secrets and commercial or financial information, the
person shall include a statement specifying why the information is
privileged or confidential. If the person filing a document does not
submit a second copy of the document with the confidential information
deleted, the Officer conducting the investigation may assume that there
is no objection to public disclosure of the document in its entirety.
The Commission retains the right to make the determination with regard
to any claim of confidentiality. Notice of the decision by the
investigating Officer or other appropriate official to deny a claim, in
whole or in part, and an opportunity to respond shall be given to a
person claiming confidentiality no less than 5 days before its public
disclosure.
18 CFR 1b.20 PART 2 -- GENERAL POLICY AND INTERPRETATIONS
18 CFR 1b.20 Pt. 2
Sec.
2.1 Initial notice; service; and information copies of formal
documents.
2.1a Public suggestions, comments, proposals on substantial
prospective regulatory issues and problems.
2.2 Transmission lines.
2.4 Suspension of rate schedules.
2.5 Filing of rate schedules by public utilities.
2.7 Recreational development at licensed projects.
2.8 Simplification of wholesale electric rate schedule filings.
2.9 Conditions in preliminary permits and licenses -- list of and
citations to ''P -- '' and ''L -- '' forms.
2.10 Actions for minimizing the consequences of bulk power supply
interruptions or shortages.
2.11 Reliability and adequacy of electric service.
2.12 Calculation of taxes for property of public utilities and
licensees constructed or acquired after January 1, 1970.
2.13 Design and construction.
2.15 Specified reasonable rate of return.
2.17 Price discrimination and anticompetitive effect (price squeeze
issue).
2.18 Phased electric rate increase filings.
2.19 State and Federal comprehensive plans.
2.51 (Reserved)
2.52 Suspension of rate schedules.
2.53 Certificate applications.
2.55 Definition of term used in section 7(c).
2.56 Area price levels for natural gas sales by independent
producers.
2.56a National rates for sales of natural gas from wells commenced on
or after January 1, 1973, and certain other sales.
2.56b National rate for sales of natural gas from wells commenced
prior to January 1, 1973.
2.57 Temporary certificates -- pipeline companies.
2.60 Facilities and activities during an emergency -- accounting
treatment of defense-related expenditures.
2.61 Pipeline companies -- natural gas reserves -- deliverability
life.
2.63 Express refund conditions in certain temporary certificates of
public convenience and necessity issued to independent producers of
natural gas.
2.64 Independent producers; transfer of producing acreage;
procedure.
2.65 Applications for certificates of public convenience and
necessity for offshore gas transmission facilities.
2.66 Pricing of certain new gas produced by pipelines and pipeline
affiliates.
2.67 Calculation of taxes for property of pipeline companies
constructed or acquired after January 1, 1970.
2.69 (Removed)
2.70 Measures for the protection of reliable and adequate natural gas
service.
2.71 (Reserved)
2.72 Availability in contested cases of information acquired by staff
investigation.
2.75 Optional procedure for certificating new producer sales of
natural gas.
2.76 Regulatory treatment of payments made in lieu of take-or-pay
obligations.
2.77 Policy on expedited producer abandonment.
2.78 Utilization and conservation of natural resources -- natural
gas.
2.79 Policy with respect to certification of pipeline transportation
agreements.
2.80 Detailed environmental statement.
2.90 Implementation of Executive Order No. 11615.
2.90a Implementation of Executive Order No. 11627 and 6 CFR 300.016.
2.90b Implementation of Executive Order No. 11723.
2.91 Automated computer regulatory information system.
2.100 -- 2.101 (Reserved)
2.102 Policy respecting production-related activities performed by an
interstate pipeline.
2.103 Statement of policy respecting take or pay provisions in gas
purchase contracts.
2.104 Mechanisms for passthrough of pipeline take-or-pay buyout and
buydown costs.
2.105 Gas supply charges.
2.201 (Reserved)
2.300 Statement of policy concerning allegations of fraud, abuse, or
similar grounds under section 601(c) of the NGPA.
2.400 Statement of interpretation of waste concerning natural gas as
the primary energy source for qualifying small power production
facilities.
Appendix C to Part 2 -- Nationwide Proceeding Computation of Federal
Income Tax Allowance Independent Producers, Pipeline Affiliates and
Pipeline Producers Continental U.S.
Authority: 42 U.S.C. 7101-7352; E.O. 12009, 3 CFR, 1978 Comp., p.
142; 16 U.S.C. 792-825r; 15 U.S.C. 717-717w; 16 U.S.C. 2601-2645;
and 42 U.S.C. 4321-4361.
18 CFR 1b.20 Statements of General Policy and Interpretations of the Commission
18 CFR 2.1 Initial notice; service; and information copies of formal
documents.
(a) Whenever appropriate, publication of an initial notice or order
in the Federal Register shall be the primary means of informing
interested persons and the general public that the proceeding to which
the notice or order relates has been instituted before the Commission.
The mailing of individual copies shall be confined to that which is
required by law, by the Commission's rules and regulations, or by other
considerations deemed valid by the Secretary in specific instances.
(1) It is the policy of the Commission to publish notice in the
Federal Register upon the institution of the following proceedings
before the Commission:
(i) Natural gas pipeline companies and public utility rate schedules
and tariffs. (A) Initial rate schedule filings and changes in rates
schedules proposed by public utilities and changes in rate schedules or
tariffs proposed by natural gas pipeline companies, including purchased
gas adjustment clauses.
(B) Changes in rates proposed by natural gas pipeline companies for
field sales.
(C)-(D) (Reserved)
(E) Tracking rate schedule or tariff filings made pursuant to
settlement agreements.
(F) Rate schedule or tariff filings made by natural gas pipeline
companies or public utilities in compliance with Commission orders.
(G) Reports of refunds by natural gas pipeline companies and public
utilities.
(H) (Reserved)
(I) Complaints against natural gas pipeline companies and public
utilities, unless otherwise directed.
(ii) Interconnections, service and exportation pursuant to the
Federal Power Act. (A) Applications for interconnection and service
under section 202(b).
(B) Applications for interconnection and service under section
202(c), unless otherwise directed.
(C) Applications for interconnections for emergency use only under
section 202(d), unless otherwise directed.
(D) Applications pursuant to section 207.
(E) Applications for authority to export electric energy to a foreign
country under section 202(e).
(iii) Hydroelectric, Federal Power Act. (A) Applications for
preliminary permits pursuant to section 4(f).
(B) Applications for licenses for constructed or unconstructed
projects, or notice of declaration of intention, sections 4(e),
23(a)(b).
(C) Applications for amendment of license, unless otherwise directed.
(D) Application for relicenses or nonpower licenses, or a
recommendation for takeover, sections 14 and 15.
(E) Applications for transfer of license, section 8.
(F) Applications for surrender of license, section 6.
(G) Proceeding for revocation or termination of license, sections 6,
13, 26.
(H) Issuance of annual licenses, section 15.
(I) Lands withdrawn pursuant to an application for preliminary permit
or license, and the vacation of such land withdrawals, section 24.
(J) Complaints against licensees, unless otherwise directed.
(iv) Corporate electric. (A) Applications pursuant to sections 203,
204, of the Federal Power Act, and applications or complaints pursuant
to section 305 of the Federal Power Act.
(v) Accounting, gas and electric. (A) Applications pursuant to
sections 4, 23, 301, and 302 of the Federal Power Act.
(B) Applications pursuant to sections 8 and 9 of the Natural Gas Act.
(vi) Federal rates. (A) Application for confirmation and approval of
rate schedules for Federal hydroelectric projects.
(vii) Natural gas pipeline certificates, exportations, and
importations, Natural Gas Act. (A) Applications for exemption under
section 1(c).
(B) Applications for authorization to import and export gas under
section 3.
(C) Applications for orders directing physical connection of
facilities and sale of natural gas under section 7(a).
(D) Applications for permission and approval to abandon under section
7(b).
(E) Applications for permanent certificates under section 7(c).
(F) (Reserved)
(G) Complaints against natural gas pipeline companies, filed by
individuals and companies, unless otherwise directed.
(viii) Independent producers. (A) Orders suspending rates for
independent producers and initiating a hearing thereon.
(B) Filing of offers of settlement.
(C) Small producer applications and petitions for relief relating to
small producer matters.
(D) Petitions for special relief under the Commission's area rate
opinions.
(ix) Presidential permits, gas and electric. (A) Applications for
permits under Executive Order No. 10485 (3 CFR, 1949-1954 Comp., p.
970).
(x) Environmental statements. (A) Notice to be published pursuant to
Order series 415.
(xi) Miscellaneous, gas and electric. (A) Order instituting an
investigation in which hearings are fixed or in which an opportunity is
given for filing comments or petitions to intervene.
(B) Show cause order, in which hearings are fixed or in which an
opportunity is given for filing comments or petitions to intervene.
(C) Order or notice consolidating proceedings for hearing purposes or
severing a proceeding formerly consolidated for hearing purposes.
(D) Applications for declaratory order, disclaimers of jurisdiction,
or waiver of Commission regulations, unless otherwise directed.
(E) Requests for redesignation pursuant to 3.5(a)(26) of this
subchapter, unless otherwise directed.
(F) Requests for extension of time pursuant to 3.75.302(j) of this
chapter, unless otherwise directed.
(G) Consolidations and severance pursuant to 375.302(f) of this
chapter, unless otherwise directed.
(H) Notice of correction of a document in any of the above
categories.
(I) Notice of meetings of advisory committees established by the
Commission.
(J) Notices of conferences in docketed rulemaking proceedings.
(K) Such other notices or orders as may be submitted by the Secretary
for publication.
(2) Otherwise directed, as referred to above, shall be interpreted to
mean notice given by the discretion of the Secretary.
(b) After notice has been given, the service of formal documents
issued in a proceeding shall be confined to the parties of record or
their attorneys, and the mailing of information copies shall be confined
to that which is required by the Commission's rules and regulations, by
courtesy in response to written requests for copies, or by other
considerations deemed valid by the Secretary in specific instances.
(Secs. 308, 309; 49 Stat. 858; 16 U.S.C. 825g, 825h; secs. 15, 16;
52 Stat. 829, 830; 15 U.S.C. 717n, 717o)
(Order 211, 24 FR 1345, Feb. 21, 1959, as amended by Order 463, 37 FR
28054, Dec. 20, 1972; 38 FR 3192, Feb. 2, 1973; 44 FR 34941, June 18,
1979; 45 FR 21224, Apr. 1, 1980)
18 CFR 2.1a Public suggestions, comments, proposals on substantial
prospective regulatory issues and problems.
(a) The Commission by this policy statement explicitly encourages the
public, including those persons subject to regulation by the Commission,
to submit suggestions, comments, or proposals concerning substantial
prospective regulatory policy issues and problems, the resolution of
which will have a substantial impact upon those regulated by the
Commission or others affected by the Commission's activities. This
policy is intended to serve as a means of advising the Commission on a
timely basis of potential significant issues and problems which may come
before it in the course of its activities and to permit the Commission
an early opportunity to consider argument regarding policy questions and
administrative reforms in a general context rather than in the course of
individual proceedings.
(b) Upon receipt of suggestions, comments, or proposals pursuant to
paragraph (a) of this section, the Commission shall review the matters
raised and take whatever action is deemed necessary with respect to the
filing, including, but not limited to, requesting further information
from the filing party, the public, or the staff, or prescribing an
informal public conference for initial discussion and consultation with
the Commission, a Commissioner, or the Staff, concerning the matter(s)
raised. In the absence of a notice of proposed rulemaking, any
conferences or procedures undertaken pursuant to this section shall not
be deemed by the Commission as meeting the requirements of the
Administrative Procedure Act with respect to notice of rulemakings, but
are to be utilized by the Commission as initial discussions for advice
as a means of determining the need for Commission action, investigation
or study prior to the issuance of a notice of proposed rulemaking to the
extent required by the Administrative Procedure Act, 5 U.S.C. 553.
(c) (Reserved)
(d) A person may not invoke this policy as a means of advocating ex
parte before the Commission a position in a proceeding pending at the
Commission and any such filing will be rejected. Comments must relate
to general conditions in industry or the public or policies or practices
of the Commission which may need reform, review, or initial
consideration by the Commission.
(Order No. 547, 41 FR 15004, Apr. 9, 1976, as amended by Order 225,
47 FR 19054, May 3, 1982)
18 CFR 2.1a Statements of General Policy and Interpretations Under the
Federal Power Act
Authority: Sections 2.2 through 2.13, issued under sec. 309, 49
Stat. 858; 16 U.S.C. 825h, unless otherwise noted.
18 CFR 2.2 Transmission lines.
In a public statement dated March 7, 1941, the Commission announced
its determination that transmission lines which are not primary lines
transmitting power from the power house or appurtenant works of a
project to the point of junction with the distribution system or with
the interconnected primary transmission system as set forth in section
3(11) of the Act are not within the licensing authority of the
Commission, and directed that future applications filed with it for such
licenses be referred for appropriate action to the Federal department
having supervision over the lands or waterways involved.
(Order 141, 12 FR 8471, Dec. 19, 1947. Redesignated by Order 147, 13
FR 8259, Dec. 23, 1948)
18 CFR 2.4 Suspension of rate schedules.
The Commission approved and adopted on May 29, 1945, the following
conclusions as to its powers of suspension of rate schedules under
section 205 of the act:
(a) The Commission cannot suspend a rate schedule after its effective
date.
(b) The Commission can suspend any new schedule making any change in
an existing filed rate schedule, including any rate, charge,
classification, or service, or in any rule, regulation, or contract
relating thereto, contained in the filed schedule.
(c) Included in such changes which may be suspended are:
(1) Increases.
(2) Reductions.
(3) Discriminatory changes.
(4) Cancellation or notice of termination.
(5) Changes in classification, service, rule, regulation or contract.
(d) An initial rate schedule can be suspended and an interim rate
established; both can be made subject to refund.
(e) Immaterial, unimportant or routine changes will not be suspended.
(f) During suspension, the prior existing rate schedule continues in
effect and should not be changed during suspension.
(g) Changes under escalator clauses may be suspended as changes in
existing filed schedules.
(h) Suspension of a rate schedule, within the ambit of the
Commission's statutory authority is a matter within the discretion of
the Commission.
(Natural Gas Act, 15 U.S.C. 717-717w (1976 & Supp. IV 1980); Federal
Power Act, 16 U.S.C. 791a-828c (1976 & Supp. IV 1980); Dept. of Energy
Organization Act, 42 U.S.C. 7101-7352 (Supp. IV 1980); E.O. 12009, 3
CFR part 142 (1978); 5 U.S.C. 553 (1976))
(Order 141, 12 FR 8471, Dec. 19, 1947. Redesignated by Order 147, 13
FR 8259, Dec. 23, 1948, and amended by Order 303, 48 FR 24361, June 1,
1983)
18 CFR 2.5 Filing of rate schedules by public utilities.
(a) The Commission has received a number of inquiries from public
utilities who are presently engaged in reviewing the status of their
wholesale power sales, in the light of the recent Supreme Court decision
in the Colton case, Federal Power Commission v. Southern California
Edison Company, 376 U.S. 205, 11 L ed. 2d 638, decided March 2, 1964,
as to the manner in which the Commission would expect to treat filings
made with it of existing wholesale sales which had not previously been
filed with this Commission. In response to such inquiries the
Commission believes it appropriate to advise all public utilities that,
while it of course cannot prejudge the possible rights of interested
third parties, its primary objective is in insuring that the rate
schedules for all jurisdictional sales are promptly filed with this
agency, as required by law, and that where such rate schedules are filed
with this agency by August 1, 1964, it does not intend on its own motion
to initiate any inquiry into past failures to file such schedules.
(b) In accordance with this policy the Commission, in the absence of
valid objection by any interested party, will permit all existing rate
schedules to be filed as initial rate schedules pursuant to the
provisions of 35.1(b) of this chapter and will give favorable
consideration to requests pursuant to the provisions of 35.11 of this
chapter to make such schedules effective as of the date of filing or
such earlier date as the public utility may show is consistent with the
public interest, if such filings are made on or before August 1, 1964.
Moreover, while the Commission will carefully review all such filings to
insure that they are consistent with the statutory standards, it is
contemplated that any Commission action resulting from such review would
normally be taken pursuant to the provisions of section 206 of the
Federal Power Act.
(c) It is recognized that despite the Supreme Court's latest
reiteration of the broad scope of this agency's jurisdiction over
wholesale sales of public utilities, there may remain some special
situations in which a company engaged in the wholesale sale of electric
energy, although it is interconnected with systems in other states
directly or indirectly, will wish to contest its jurisdictional status
as a public utility or the status of particular sales. However, the
Commission's existing procedures provide full protection for such
companies since they are free to file their wholesale rates with a
reservation of the question of jurisdiction, which could then be
adjudicated in an orderly way.
(Sec. 205, 49 Stat. 851; 16 U.S.C. 824d)
(Order 282, 29 FR 5544, Apr. 25, 1964)
18 CFR 2.7 Recreational development at licensed projects.
The Commission will evaluate the recreational resources of all
projects under Federal license or applications therefor and seek, within
its authority, the ultimate development of these resources, consistent
with the needs of the area to the extent that such development is not
inconsistent with the primary purpose of the project. Reasonable
expenditures by a licensee for public recreational development pursuant
to an approved plan, including the purchase of land, will be included as
part of the project cost. The Commission will not object to licensees
and operators of recreational facilities within the boundaries of a
project charging reasonable fees to users of such facilities in order to
help defray the cost of constructing, operating, and maintaining such
facilities. The Commission expects the licensee to assume the following
responsibilities:
(a) To acquire in fee and include within the project boundary enough
land to assure optimum development of the recreational resources
afforded by the project. To the extent consistent with the other
objectives of the license, such lands to be acquired in fee for
recreational purposes shall include the lands adjacent to the exterior
margin of any project reservoir plus all other project lands specified
in any approved recreational use plan for the project.
(b) To develop suitable public recreational facilities upon project
lands and waters and to make provisions for adequate public access to
such project facilities and waters and to include therein consideration
of the needs of physically handicapped individuals in the design and
construction of such project facilities and access.
(c) To encourage and cooperate with appropriate local, State, and
Federal agencies and other interested entities in the determination of
public recreation needs and to cooperate in the preparation of plans to
meet these needs, including those for sport fishing and hunting.
(d) To encourage governmental agencies and private interests, such as
operators of user-fee facilities, to assist in carrying out plans for
recreation, including operation and adequate maintenance of recreational
areas and facilities.
(e) To cooperate with local, State, and Federal Government agencies
in planning, providing, operating, and maintaining facilities for
recreational use of public lands administered by those agencies adjacent
to the project area.
(f)(1) To comply with Federal, State and local regulations for
health, sanitation, and public safety, and to cooperate with law
enforcement authorities in the development of additional necessary
regulations for such purposes.
(2) To provide either by itself or through arrangement with others
for facilities to process adequately sewage, litter, and other wastes
from recreation facilities including wastes from watercraft, at
recreation facilities maintained and operated by the licensee or its
concessionaires.
(g) To ensure public access and recreational use of project lands and
waters without regard to race, color, sex, religious creed or national
origin.
(h) To inform the public of the opportunities for recreation at
licensed projects, as well as of rules governing the accessibility and
use of recreational facilities.
(Order 313, 30 FR 16198, Dec. 29, 1965, as amended by Order 375-B, 35
FR 6315, Apr. 18, 1970; Order 508, 39 FR 16338, May 8, 1974)
18 CFR 2.8 Simplification of wholesale electric rate schedule filings.
(a) In making changes in rate schedules required to be on file with
the Commission, public utilities may find it advantageous to file
substitute sheets to reflect changes, in lieu of filing rate schedule
supplements.
(1) Identification -- substitute sheets. (i) At the top right of the
page, the sheet number may be designated as '' ------ Revised Sheet No.
------ '', followed by ''Superseding ------ Sheet No. ------ ''. The
first of these blanks would show the number of the revision (i.e.,
first, second, etc.) and the sheet number would be the same as the sheet
replaced. The third and fourth blanks would be filled according to the
numbering of the sheet replaced.
(ii) Sheets which are to be inserted between two consecutively
numbered sheets may be designated ''Original Sheet No. ------ '', with
the blank space filled with the appropriate number and a letter to
indicate an insertion (i.e., between Sheet Nos. 1 and 2, Original Sheet
No. 1a).
(iii) Customer agreement, if required, may be indicated on the bottom
of the page, by the signature of the person authorized to agree to the
proposed change. The name and title of the person authorized to file
the substitute sheet may also be shown on the bottom of the page.
(b) Whenever pursuant to 35.12 of this chapter an initial rate
schedule filing is to be made, or whenever pursuant to 35.13 of this
chapter a rate schedule is to be replaced in its entirety or extensively
revised (for example if a large number of the pages are to be changed),
public utilities may find it advantageous to use a simplified format,
such as the following:
(1) Format. A brief service agreement setting forth such items as
the name of the purchaser, service to be rendered, term of the
agreement, and signatures of the parties. Applicable points of delivery
and delivery voltages, applicable rates and charges and applicable terms
and conditions may be incorporated in the agreement by reference to
separate appendices attached thereto as follows:
(i) Appendix setting forth in detail delivery points, delivery
voltages and metering voltages.
(ii) Appendix containing a statement of the rates and charges, set
forth separately under appropriate headings such as: Demand charges,
energy charges, billing demand determinants, power factor clauses,
minimum bill provisions, etc.
(iii) Appendix containing terms and conditions, set forth separately
under appropriate headings such as: Services, facilities at the points
of connection, meter adjustments, continuity of service, liability, etc.
(2) Identification. (i) At the top right of the page, the sheet
number may be designated as ''Original Sheet No. ------ ''.
(ii) Sheets which are to be replaced or inserted may be designated in
the same manner suggested in paragraph (a)(1) of this section.
(Secs. 205, 206, 49 Stat. 851, 852; 16 U.S.C. 824d, 824e)
(Order 347, 32 FR 7494, May 20, 1967)
18 CFR 2.9 Conditions in preliminary permits and licenses -- list of
and citations to ''P -- '' and ''L -- '' forms.
(a) The Commission has approved several sets of standard conditions
for normal inclusion in preliminary permits or licenses for
hydroelectric developments. In a special situation, of course, the
Commission in issuing a permit or license for a project will modify or
eliminate a particular article (condition). For reference purposes the
sets of conditions are designated as ''Forms'' -- those for preliminary
permits are published in Form P-1, and those for licenses are published
in Form L's. There are different Form L's for different types of
licenses, and the forms have been revised from time to time. Thus at
any given time there will be several series of standard forms applicable
to the various vintages of different types of licenses. The forms and
their revisions are published in the Federal Power Commission reports
and citations thereto are listed below.
(b) New or revised forms may be approved after preparation of this
list (which is current as of October, 1975) and consequently do not
appear herein. Forms currently in use, including those forms which have
not yet appeared in the FPC reports, may be obtained from the Federal
Power Commission, Office of Public Information, Washington, DC 20426.
(c) Within each of the categories, unless retired, the last-listed
form is the one in use at the date of preparation of the list. The
dates in the list represent issuance dates of the orders with which the
particular forms were first published, or subsequently revised, in the
FPC reports.
P-1: Preliminary Permit, 11 F.P.C. 699 (December 2, 1952), 16 F.P.C.
1303 (December 4, 1956), 54 F.P.C. ------ (October -- , 1975).
L-1: Constructed Major Project Affecting Lands of the United States,
12 F.P.C. 1262 (September 25, 1953), 32 F.P.C. 71 (July 8, 1964), 54
F.P.C. ------ (October -- , 1975).
L-2: Unconstructed Major Project Affecting Lands of the United
States, 12 F.P.C. 1137 (August 7, 1953), 17 F.P.C. 62 (January 18,
1957), 31 F.P.C. 528 (March 10, 1964), 54 F.P.C. ------ (October -- ,
1975).
L-3: Constructed Major Project Affecting Navigable Waters of the
United States, 12 F.P.C. 836 (February 6, 1953), 17 F.P.C. 385 (March 4,
1957), 30 F.P.C. 1658 (November 21, 1963), 32 F.P.C. 1114 (October 15,
1964), 36 F.P.C. 971 (December 6, 1966), 40 F.P.C. 1136 (October 29,
1968), 54 F.P.C. ------ (October -- , 1975).
L-4: Unconstructed Major Project Affecting Navigable Waters of the
United States, 16 F.P.C. 1284 (November 29, 1956), 32 F.P.C. 839
(September 21, 1964), 42 F.P.C. 280 (July 30, 1969), 54 F.P.C. ------
(October -- , 1975).
L-5: Constructed Major Project Affecting Navigable Waters and Lands
of the United States, 12 F.P.C. 1329 (October 23, 1953), 17 F.P.C. 110
(January 13, 1957), 38 F.P.C. 203 (July 26, 1967), 54 F.P.C. ------
(October -- , 1975).
L-6: Unconstructed Major Project Affecting Navigable Waters and
Lands of the United States, 12 F.P.C. 1271 (September 29, 1953), 16
F.P.C. 1127 (October 29, 1956), 31 F.P.C. 284 (February 5, 1964), 34
F.P.C. 1114 (October 7, 1965), 54 F.P.C. ------ (October -- , 1975).
L-7 (retired): Minor Project Affecting Lands of the United States,
12 F.P.C. 911 (March 30, 1953), 17 F.P.C. 486 (April 2, 1957).
L-8 (retired): Minor-Part Project (Transmission Line), 12 F.P.C.
1017 (June 12, 1953), 41 F.P.C. 217 (March 5, 1969).
L-9: Constructed Minor Project Affecting Navigable Waters of the
United States, 32 F.P.C. 577 (August 10, 1964), 54 F.P.C. ------
(October -- , 1975).
L-10: Constructed Major Project Affecting the Interests of
Interstate or Foreign Commerce, 37 F.P.C. 860 (May 9, 1967), 40 F.P.C.
1489 (December 20, 1968), 54 F.P.C. ------ (October -- , 1975).
L-11: Unconstructed Major Project Affecting the Interests of
Interstate or Foreign Commerce, 34 F.P.C. 602 (August 26, 1965), 36
F.P.C. 687 (September 26, 1966), 41 F.P.C. 719 (June 6, 1969), 54 F.P.C.
------ (October -- , 1975).
L-12: Constructed Minor Project Affecting the Interests of
Interstate or Foreign Commerce, 35 F.P.C. 875 (June 3, 1966), 40 F.P.C.
1447 (December 10, 1968), 54 F.P.C. ------ (October -- , 1975).
L-13: (retired): Unconstructed Major Project Affecting the
Interests of Interstate or Foreign Commerce and Affecting Lands of the
United States, 42 F.P.C. 367 (August 6, 1969).
L-14: Unconstructed Minor Project Affecting Navigable Waters of the
United States, 54 F.P.C. ------ (October -- , 1975).
L-15: Unconstructed Minor Project Affecting the Interests of
Interstate or Foreign Commerce, 54 F.P.C. ------ (October -- , 1975).
L-16: Constructed Minor Project Affecting Lands of the United
States, 54 F.P.C. ------ (October -- , 1975).
L-17: Unconstructed Minor Project Affecting Lands of the United
States, 54 F.P.C. ------ (October -- , 1975).
L-18: Constructed Minor Project Affecting Navigable Waters and Lands
of the United States, 54 F.P.C. ------ (October -- , 1975).
L-19: Unconstructed Minor Project Affecting Navigable Waters and
Lands of the United States, 54 F.P.C. ------ (October -- , 1975).
L-20: Constructed Transmission Line Project, 54 F.P.C. ------
(October -- , 1975).
L-21: Unconstructed Transmission Line Project, 54 F.P.C. ------
(October -- , 1975).
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309 (41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617; 16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i), as amended, secs. 8, 10, and 16 (52 Stat. 825-826,
830; 15 U.S.C. 717g, 717i, 717o))
(Order 348, 32 FR 8521, June 14, 1967, as amended by Order 540, 40 FR
51998, Nov. 7, 1975; Order 567, 42 FR 30612, June 16, 1977)
18 CFR 2.10 Actions for minimizing the consequences of bulk power
supply interruptions or shortages.
Each regional reliability council, and every participating electric
utility system therein, investor owned, publicly owned or cooperatively
owned, is encouraged to review existing mutual assistance and emergency
condition operating procedures among control areas, and to promote the
simplification of all such procedures where warranted. In addition,
each regional council and participating system that has not already done
so, is urged to establish contingency plans for operating in emergency
situations, and contingency plans for possible load reduction or
curtailment. Also, each regional reliability council and participating
system that has not already done so, is urged to establish regional
information centers wherein current information will be maintained
concerning operable generation and transmission capacity and fuel
supplies within the region so that during emergencies the affected
utilities can immediately determine the extent and location of likely
sources of assistance throughout the region. In this regard,
appropriate communication systems and interregional liaison among
neighboring regions and utility systems will serve to accomplish similar
purposes on an interregional scale. Their full development is
encouraged.
(Order 445, 37 FR 782, Jan. 19, 1972, as amended by Order 53, 44 FR
61948, Oct. 29, 1979)
18 CFR 2.11 Reliability and adequacy of electric service.
(a) Participation of Federal Power Commission personnel in regional
reliability councils: The Federal Power Commission's responsibilities
under section 202(a) of the Federal Power Act, to promote and encourage
voluntary efforts by the various segments of the electric utility
industry to coordinate their activities, can best be carried out if each
regional reliability council or other coordinating organization which is
a member of the National Electric Reliability Council permits
participation by staff personnel on a nonvoting basis in its
deliberations. Accordingly, these organizations are requested to permit
nonvoting participation by FPC staff personnel in their principal
meetings, and upon occasion, as may be requested by the Chief of the
Commission's, Bureau of Power, in their important technical meetings.
(b) Participation of State Commission personnel in regional
reliability councils: It is the policy of the Commission that personnel
of appropriate State commissions be permitted to participate in the
meetings of regional reliability councils or other coordinating
organizations which are members of the National Electric Reliability
Council on the same basis as personnel of the Federal Power Commission.
(Order 383-2, 35 FR 6123, Apr. 15, 1970, as amended by Order 53, 44
FR 61948, Oct. 29, 1979)
18 CFR 2.12 Calculation of taxes for property of public utilities and
licensees constructed or acquired after January 1, 1970.
Pursuant to the provisions of section 441(a)(4)(A) of the Tax Reform
Act of 1969, 83 Stat. 487, 625, public utilities and licensees
regulated by the Commission under the Federal Power Act which have
exercised the option provided by that section to change from flow
through accounting will be permitted by the Commission, with respect to
liberalized depreciation, to employ a normalization method for computing
federal income taxes in their accounts and annual reports with respect
to property constructed or acquired after January 1, 1970, to the extent
with which such property increases the productive or operational
capacity of the utility and is not a replacement of existing capacity.
Such normalization will also be permitted for ratemaking purposes to the
extent such rates are subject to the Commission's ratemaking authority.
As to balances in Account 282 of the Uniform System of Accounts,
''Accumulated deferred income taxes -- Other property,'' it will remain
the Commission's policy to deduct such balances from rate base in rate
proceedings.
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309 (41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617; 16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i), as amended, Secs. 8, 10, and 16 (52 Stat. 825-826,
830; 15 U.S.C. 717g, 717i, 717o))
(Order 404, 35 FR 7964, May 23, 1970, as amended by Order 567, 42 FR
30612, June 16, 1977)
18 CFR 2.13 Design and construction.
(a) The Commission recognizes the importance of protecting and
enhancing natural, historic, scenic, and recreational values at projects
licensed or proposed to be licensed under the Federal Power Act.
(b) The Commission has adopted ''Guidelines for the Protection of
Natural, Historic, Scenic, and Recreational Values in the Design and
Location of Rights-of-Way and Transmission Facilities''1003 as set forth
in Order No. 414 issued November 27, 1970. The Commission will
consider these guidelines inter alia, in the determination of whether
applications for any licenses under the Federal Power Act are best
adapted to a comprehensive plan for developing a waterway. The
guidelines may be obtained from the Office of Public Information,
Federal Power Commission, Washington, DC 20426.
(c) In furtherance of these polices, the Commission will not (1)
permit the amendment of any license for the purpose of construction of
additional facilities or (2) authorize the disposition of any interest
in project lands for construction of any type, unless a showing is made
that the construction will be designed to avoid or minimize conflict
with the natural, historic, and scenic values and resources of the
project area, including compliance with the Commission's ''Guidelines
for the Protection of Natural, Historic, Scenic, and Recreational Values
in the Design and Location of Rights-of-Way and Transmission
Facilities''.
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309 (41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617; 16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i), as amended, Secs. 8, 10, and 16 (52 Stat. 825-826,
830; 15 U.S.C. 717g, 717i, 717o))
(Order 414, 35 FR 18586, Dec. 8, 1970, as amended by Order 567, 42 FR
30612, June 16, 1977)
0031Filed as part of the original document.
18 CFR 2.15 Specified reasonable rate of return.
(a) Pursuant to section 10(d) of the Federal Power Act, the
Commission has determined that the specified reasonable rate of return
used in computing amortization reserves for hydroelectric project
licenses shall be calculated annually based on current capital ratios
developed from an average of 13 monthly balances of amounts properly
includible in the licensee's long-term debt and proprietary capital
accounts, as listed in the Commission's Uniform System of Accounts. The
cost rate for such ratios shall be the weighted average cost of
long-term debt and preferred stock for the year, and the cost of common
equity shall be the interest rate on 10-year government bonds (reported
as the Treasury Department's 10-year constant maturity series) computed
on the monthly average for the year in question, plus four percentage
points (400 basis points).
(b) The Statement of Policy adopted herein shall be effective upon
issuance of this order.
(c) The Secretary shall cause prompt publication of this order to be
made in the Federal Register.
(d) All requests and suggestions not specifically dealt with herein
are hereby denied.
(e) The Secretary is hereby authorized to change the appropriate
license article upon application by the licensees to reflect the
specified reasonable rate of return as adopted herein.
(Order 550, 41 FR 27032, July 1, 1976)
18 CFR 2.17 Price discrimination and anticompetitive effect (price
squeeze issue).
To implement compliance with the Supreme Court decision in F.P.C. v.
Con-Way Corp., 426 U.S. 271 (1976), aff'g 510 F. 2d 1264 (D.C. Cir.
1975) and to expedite the consideration of price squeeze issues in
wholesale electric rate proceedings, the Commission adopts the following
procedures for raising price squeeze issues which are to be followed
unless they are demonstrated in an individual case to be inadequate:
(a) Any wholesale customer, state commission or other interested
person may file petitions to intervene alleging price discrimination and
anticompetitive effects of the wholesale rates. In order to have the
issue of price discrimination considered in the rate proceeding, the
intervening customer or other interested person must support its
allegation by a prima facie case. The elements of the prima facie case
shall include at a minimum:
(1) Specification of the filing utility's retail rate schedules with
which the intervening wholesale customer is unable to compete due to
purchased power costs;
(2) A showing that a competitive situation exists in that the
wholesale customer competes in the same market as the filing utility;
(3) A showing that the retail rates are lower than the proposed
wholesale rates for comparable service;
(4) The wholesale customer's prospective rate for comparable retail
service, i.e. the rate necessary to recover bulk power costs (at the
proposed wholesale rate) and distribution costs;
(5) An indication of the reduction in the wholesale rate necessary to
eliminate the price squeeze alleged.
(b) Where price squeeze is alleged, the Commission shall, in the
order granting intervention, direct the Administrative Law Judge to
convene a prehearing conference within 15 days from the date of the
order for the purpose of hearing intervenors' request for data required
to present their case, including prima facie showing, on price squeeze
issues.
(c) Within 30 days from the date of the conference the filing utility
shall respond to the data requests authorized by the Administrative Law
Judge.
(d) Within 30 days from the filing utility's response, the
intervenors shall file their case-in-chief on price squeeze issues,
which shall include their prima facie case, unless filed previously.
(e) The burden of proof (i.e. the risk of nonpersuasion) to rebut the
allegations of price squeeze and to justify the proposed rates are on
the utility proposing the rates under section 205(e) of the Federal
Power Act.
(f) In proceedings where price squeeze is an issue, the Secretary
shall include the state commission, agency or body which is responsible
for regulation of retail rates in the state affected in the service list
maintained under 385.2010(c) of this chapter.
(Order 563, 42 FR 16132, Mar. 25, 1977, as amended by Order 225, 47
FR 19054, May 3, 1982)
18 CFR 2.18 Phased electric rate increase filings.
(a) In general, when a public utility files a phased rate increase,
the Commission will determine the appropriate suspension period based on
the total increase requested in all phases. If a utility files a rate
increase within sixty days after filing another rate increase, the
Commission will consider the filings together to be a phased rate
increase request.
(b) This policy will not be applied if the increase is phased:
(1) To coordinate with new facilities coming on line;
(2) To implement a rate moderation plan;
(3) To avoid price squeeze;
(4) To comply with a settlement approved by the Commission; or
(5) If the utility makes a convincing showing that application of the
policy would be harsh and inequitable and that, therefore, good cause
has been shown not to apply the policy in the case.
(52 FR 11, Jan. 11, 1987)
18 CFR 2.19 State and Federal comprehensive plans.
(a) In determining whether the proposed hydroelectric project is best
adapted to a comprehensive plan under section (10)(a)(1) of the Federal
Power Act for improving or developing a waterway, the Commission will
consider the extent to which the project is consistent with a
comprehensive plan (where one exists) for improving, developing, or
conserving a waterway or waterways affected by the project that is
prepared by:
(1) An agency established pursuant to Federal law that has the
authority to prepare such a plan, or
(2) A state agency, of the state in which the facility is or will be
located, authorized to conduct such planning pursuant to state law.
(b) The Commission will treat as a state or Federal comprehensive
plan a plan that:
(1) Is a comprehensive study of one or more of the beneficial uses of
a waterway or waterways;
(2) Includes a description of the standards applied, the data relied
upon, and the methodology used in preparing the plan; and
(3) Is filed with the Secretary of the Commission.
(Order 481-A, 53 FR 15804, May 4, 1988)
18 CFR 2.19 Statements of General Policy and Interpretations Under the
Natural Gas Act
2.51 (Reserved)
18 CFR 2.52 Suspension of rate schedules.
The interpretation stated in 2.4 applies as well to the suspension
of rate schedules under section 4 of the Natural Gas Act.
(Natural Gas Act, 15 U.S.C. 717-717w (1976 & Supp. IV 1980); Federal
Power Act, 16 U.S.C. 791a-828c (1976 & Supp. IV 1980); Dept. of Energy
Organization Act, 42 U.S.C. 7101-7352 (Supp. IV 1980); E.O. 12009, 3
CFR part 142 (1978); 5 U.S.C. 553 (1976))
(Order 303, 48 FR 24361, June 1, 1983)
18 CFR 2.53 Certificate applications.
The Commission, in a letter dated December 20, 1945, addressed to all
natural gas companies, stated in part:
* * * It has come to the attention of the Commission, * * * that
certain natural gas companies subject to the jurisdiction of the
Commission have constructed, and in some instances operated, facilities
without having received prior authorization required by section 7 of the
Natural Gas Act. The Commission, therefore, gives notice to all
companies that appropriate action will be taken against any such company
constructing or operating facilities in violation of the Natural Gas
Act.
The Commission realizes that the problems of the reconversion period
came upon the industry suddenly, but believes that the natural gas
companies should now be able to plan their construction programs for the
reasonable future so as to avoid the filing of multiple applications
involving portions of what are essentially single extension projects.
Intermittent applications for piecemeal construction are costly in time
and money. Moreover, proper planning and timely application for
authority to construct new facilities will reduce so-called emergency
applications under section 7 of the Natural Gas Act, and thus provide
for adequate capacity and service. Time will also be conserved if all
applications are supported by complete data.
The Commission recognizes the possibility that natural gas companies
may be faced with real emergency situations, and is prepared to act
promptly to enable companies to deal with such contingencies when shown
to exist and where the public interest demands emergency action.
(Sec. 16, 52 Stat. 830; 15 U.S.C. 717o)
(Order 141, 12 FR 8471, Dec. 19, 1947. Redesignated by Order 147, 13
FR 8259, Dec. 23, 1948)
18 CFR 2.55 Definition of term used in section 7(c).
For the purposes of section 7(c) of the Natural Gas Act, as amended,
the word facilities as used therein shall be interpreted to exclude:
(a) Auxiliary installations. Installations (excluding gas
compressors) which are merely auxiliary or appurtenant to an existing
transmission pipe line system and which are installed only for the
purpose of obtaining more efficient or more economical operation of
authorized transmission facilities, such as: valves; drips; yard and
station piping; cathodic protection equipment; gas cleaning, cooling
and dehydration equipment; residual refining equipment; water pumping,
treatment and cooling equipment; electrical and communication
equipment; and buildings.
(b) Replacement of facilities. Facilities which constitute the
replacement of existing facilities which have or will soon become
physically deteriorated or obsolete to the extent that replacement is
deemed advisable to comply with Department of Transportation
regulations: Provided, That such replacement is excluded from the
definition of ''facilities'' only if:
(1) Replacement will not result in a reduction or abandonment of
service rendered by means of such facilities;
(2) Replacement facilities must have substantially equivalent
designed delivery capacity as the particular facilities being replaced;
(3) The pipeline facilities will be replaced within the existing
right-of-way, and other facilities and related construction operations
for any facilities will be restricted to the existing right-of-way
(originally disturbed construction area); and
(4) The replaced facilities are abandoned in compliance with 40 CFR
part 761 or as specifically permitted by the Environmental Protection
Agency (EPA) if the facilities to be replaced have been found by the EPA
to have been exposed to polychlorinated biphenyl (PCB) contamination
greater than 50 ppm.
(c) (Reserved)
(d) Taps. Taps on existing transmission pipelines which are
installed solely for the purpose of enabling a purchaser or transporter
to take delivery of gas from an independent producer as that term is
defined in 154.91 of this chapter.
(Sec. 7, 52 Stat. 824; 15 U.S.C. 717f)
(Order 148, 14 FR 681, Feb. 16, 1949, as amended by Order 220, 25 FR
2363, Mar. 19, 1960; Order 241, 27 FR 510, Jan. 18, 1962; Order 148-A,
38 FR 11450, May 8, 1973; 55 FR 33015, Aug. 13, 1990; Order 555, 56 FR
52381, Oct. 18, 1991)
Effective Date Note: At 56 FR 52381, Oct. 18, 1991, 2.69 was
removed, effective November 19, 1991. At 56 FR 58845, Nov. 22, 1991,
the effective date was delayed. A document will be published in the
Federal Register establishing the new effective date. For the
convenience of the user, the superseded text appears as follows:
2.55 Definition of term used in section 7(c).
(b) Replacement of facilities. Facilities which constitute the
replacement of existing facilities which have or will soon become
physically deteriorated or obsolete to the extent that replacement is
deemed advisable: Provided, That such replacement will not result in a
reduction or abandonment of service rendered by means of such
facilities: Provided further, That such replacement shall have
substantially equivalent designated delivery capacity as the particular
facilities being replaced. At least 30 days prior to the commencement
of any related construction or replacement activity which begins after
August 2, 1990, the company must file notification of such activity.
The notification must include the following information:
(1) A brief description of the facilities to be replaced (including
pipeline size and length, compression horsepower, design capacity, and
cost of construction);
(2) U.S. Geological Survey 7.5-minute series topographic maps showing
the location of the facilities to be replaced; and
(3) A description of the procedures to be used for erosion control,
revegetation and maintenance, and stream and wetland crossing.
18 CFR 2.56 Area price levels for natural gas sales by independent
producers.
(a) The Commission in its Statement of General Policy No. 61-1
issued September 28, 1960, first amendment thereto issued October 25,
1960, and second amendment thereto issued December 20, 1960, stated in
pertinent part:
This statement establishing rate standards for independent producers
of natural gas is issued on our own motion and is based on our
experience gained after six years of regulation of independent producers
under the Natural Gas Act. By this statement and the appended area
price schedules, Table No. 1, we will set standards for initial and
increased rate filings by producers for the sale of natural gas into
interstate commerce. These standards will serve as a guide to us and to
interested parties in determining whether proposed initial rates should
be certificated without a price condition and whether proposed rate
changes should be accepted or suspended.
* * * It is essential, particularly in the interest of the consumer
for whose protection the statute was enacted, that means be found for
making the most effective use possible of the Commission's limited
facilities in discharging the new and additional duties called for by
the regulation of producers of natural gas. In our opinion, the price
standards established by this statement will aid in effectively applying
the provisions of the Act to independent producers on a simple, clear
and administratively feasible basis, and in a manner fair to all whose
interests are affected by Commission regulation. * * *
* * * The geographical areas which we have used are convenient and
well known. They are not necessarily in complete accord with
geographical and economic factors which may be relevant to the
establishment of pricing areas. As experience and changing factors may
indicate, we will change or alter these areas from time to time in order
to eliminate such inequities as may appear to exist because of our use
of geographical boundaries.
In arriving at the price levels for the various areas set forth in
the appendix to this statement, we have considered all of the relevant
facts available to us. Such consideration included cost information
from all decided and pending cases, existing and historical price
structures, volumes of production, trends in production, price trends in
the various areas over a number of years, trends in exploration and
development, trends in demands, and the available markets for the gas.
Of necessity, we have not set forth the adjustments to these prices
which must be made to take into account every possible provision of
every contract which may affect the actual price, such as Btu
adjustments, conditions of delivery, etc. The relevance of such
adjustments to the basic contract price and the appropriate established
price standard must be considered as each filing is made. As it becomes
apparent that certain adjustments have general applicability in a
specific area, the area price standard will be revised and set forth in
greater detail with regard to the exact sale conditions to which the
rate applies. We should, however, make it clear that these present
price standards apply to pipeline quality gas as that term is generally
understood in each area and, except for the Louisiana prices, are
inclusive of all taxes.
Two price standards are set for each area. Initial prices in new
contracts are, and in many cases by virtue of economic factors, must be
higher than the prices contained in old contracts. For this reason, we
have found it advisable to adopt two schedules of prices, one pertaining
to initial prices in new contracts and one pertaining to escalated
prices in existing contracts. It is anticipated that these differences
in price levels will be reduced and eventually eliminated as subsequent
experience brings about revisions in the prices in the various areas.
These price levels * * * are for the purpose of guidance and initial
action by the Commission and their use will not deprive any party of
substantive rights or fix the ultimate justness and reasonableness of
any rate level. As with the areas, the prices will be adjusted from
time to time as such facts as may come before us compel such
adjustments. For the present, and in the absence of compelling evidence
calling for other action by us, proposed initial sales of natural gas by
independent producers which include rates higher than those indicated in
Table No. 1 shall be denied a certificate or certificated only upon the
condition that lower rates be filed, and all rate changes filed under
existing contracts which call for a rate exceeding the indicated price
level in Table No. 1 shall be suspended.
Sales by Independent Producers
Where a proposed price exceeds the indicated rate level and is
therefore conditioned or suspended we will, in determining whether the
higher price is justified, not necessarily consider only the financial
requirements of the individual producer proposing the price but will
consider all of the above elements relevant to the industry generally in
the area concerned. Similar evidence will also be required from
purchasers or their customers who object to any of the price levels or
any specific price. Our determination will be in the nature of setting
a price for the gas itself from any source questioned and not
necessarily a price applicable solely to the party proposing some other
price. In this connection we urge that all parties who have any
interest in changing an area price join in such a proceeding leading to
a determination of a proper revision, if any, in an area price or in the
geographical area itself. As there will undoubtedly be numerous parties
with an interest in such a proceeding full use should be made of
prehearing procedures to reduce the factual issues and consolidate
factual presentations to eliminate repetition and duplication of
evidence. Because of the impossibility of giving detailed instructions
for every proceeding, the precise course of each hearing and the
admissibility and relevant weight of each type of evidence must be
determined as hearings proceed and we expect to issue additional policy
statements from time to time clarifying various aspects of these
procedures and principles. The new area rate determinations resulting
from such proceedings will represent final determinations of just rates
for the areas involved as of the date of the decision and for prior
periods.
The initial rates at which sales of natural gas in the Rocky Mountain
area are to be certificated, without refund obligations for sales made
under contracts dated after October 1, 1968, are set forth in Table No.
1A and, subject to the additional requirements, restrictions, and
authorizations provided in the orders issuing such certificates
represent the area rate levels for the areas involved until such time as
the Commission shall promulgate applicable just and reasonable rates in
said area.
(b) As a result of our considerable experience with the effects of
favored-nation and price redetermination provisions upon independent
producer prices, we concluded that acceptance of settlement offers was
desirable in the public interest, appropriate to carry out the
provisions of the Natural Gas Act, and beneficial to ultimate consumers,
pipeline purchasers and independent producers. In view of the
foregoing, an adjustment to the price level for increased rates in Texas
District Nos. 2, 3, 4, and 6, when coupled with the elimination of
price redetermination provisions and favored-nation provisions in
existing filed rate schedules appears to be appropriate.
(1) Accordingly, the Commission provides that: For rate schedules
from which all price escalation clauses are being eliminated except for
provisions for future changes in tax reimbursement, the area price level
for increased rates for natural gas sales by independent producers in
Texas District Nos. 2, 3, 4, and 6 is 15.08 cents per Mcf at 14.73
p.s.i.a. (15 cents per Mcf at 14.65 p.s.i.a.), including tax
reimbursement.
(2) For rate schedules from which all price escalation clauses are
being eliminated except for periodic escalation provisions as specified
below and provisions for future changes in tax reimbursement, the area
price level for increased rates for natural gas sales by independent
producers in Texas District Nos. 2, 3, 4, and 6 is 14.68 cents per Mcf
at 14.73 p.s.i.a. (14.6 cents per Mcf 14.65 p.s.i.a.), including tax
reimbursement: Provided, however, That such revised rate schedules may
contain escalation clauses providing future separate increases in rate
not in excess of 1.01 cents per Mcf at 14.73 p.s.i.a. (1 cent per Mcf at
14.65 p.s.i.a.), the first such escalation not to be tendered for filing
prior to the effective date of the 14.68 cents rate and subsequent
escalations to be effective under the contract at not less than 5-year
intervals thereafter.
(3) Paragraphs (b)(1) and (2) of this section shall not be applicable
to a settlement offer unless at least five years remain of the term of
the contract comprising the rate schedule sought to be brought within
the provisions thereof.
(4) Paragraphs (b)(1) and (2) of this section shall not be applicable
to a settlement offer which proposes to eliminate from a rate schedule
(contract or agreement) only the right to present tax reimbursement.
(c) As a result of our continuing experience with the effects of
favored-nation and price redetermination provisions upon independent
producer prices, we conclude that extension of the applicable provisions
of the Second Amendment to this Statement, set out in paragraph (b) in
this section, to the areas set out below and to the extent there
provided is desirable in the public interest, appropriate to carry out
the provisions of the Natural Gas Act, and beneficial to ultimate
consumers, pipeline purchasers and independent producers. To that end
--
(1) For rate schedules from which all price escalations clauses are
being eliminated except for provisions for future changes in tax
reimbursement, the area price level for increased rates for natural gas
sales by independent producers from the various areas covered herein is
set forth in column B of Table No. 2.
(2) For rate schedules from which all price escalations are being
eliminated except for periodic escalation provisions as hereinafter
specified and provisions for future changes in tax reimbursement, the
area price level for increased rates for natural gas sales by
independent producers from the various areas covered herein is set forth
in column A of Table No. 2: Provided, however, That such revised rate
schedules may contain escalation clauses providing future separate
increases in rate not in excess of 1.01 cents per Mcf at 14.73 p.s.i.a.
(1 cent per Mcf at 14.65 p.s.i.a.), the first such escalation not to be
effective under the contract prior to November 1, 1968, and subsequent
escalations to be effective under the contract at not less than 5-year
intervals thereafter.
(3) Paragraphs (c)(1) and (2) of this section shall not be applicable
to a settlement offer unless at least five years remain of the term of
the contract comprising the rate schedule sought to be brought within
the provisions thereof.
(4) Paragraphs (c)(1) and (2) of this section shall not be applicable
to a settlement offer which proposes to eliminate from a rate schedule
(contract or agreement) only the right to present tax reimbursement.
(d)(1) All permanent certificates of public convenience and necessity
granting applications filed after April 15, 1965, will contain a
condition, substantially in the language set out in paragraph (d)(2) of
this section, precluding any filing of an increased rate at a price in
excess of those designated in Table No. 3 for the period prescribed
therein, unless at the time of filing such certificate application, or
within the time fixed in the notice of application for filing protests
or petitions to intervene, the applicant indicates in writing that it is
unwilling to accept such a condition in which event the application will
be set for formal hearing to determine, inter alia, whether any grant of
certificate shall be so conditioned.
Antitriggering Condition for Various Rate Areas
(2) Standard antitriggering condition:
No increase in rate shall be filed prior to ------------ at any price
which would exceed the ceiling prescribed for the given area by
paragraph (d) of the Commission's Statement of General Policy 61-1, as
amended.
(3) All permanent certificates of public convenience and necessity
granting applications filed on or after July 1, 1967, will contain a
condition, substantially in the language set out in paragraph (d)(4) of
this section, precluding any filing of an increased rate at a price in
excess of those designated in the table referred to in paragraph (d)(1)
of this section, prior to January 1, 1970, unless at the time of filing
such certificate application, or within the time fixed in the notice of
application for filing protests or petitions to intervene, the applicant
indicates in writing that it is unwilling to accept such a condition in
which event the application will be set for formal hearing to determine,
inter alia, whether any grant of certificate shall be so conditioned.
(4) Standard antitriggering condition: ''No increase in rate shall
be filed prior to January 1, 1970, at any price which would exceed the
ceiling prescribed for the given area by paragraph (d)(3) of the
Commission's Statement of General Policy No. 61-1, as amended.''
(e) For purposes of computing any area rate adjustments effectuated
pursuant to this section, the following conversion factors with the
results rounded to the nearest one-hundredth of a cent, shall be used in
converting to the 14.73 p.s.i.a. pressure base prescribed herein:
(f) Special policy for newly-discovered reservoirs on previously
committed acreage. (1) In the Permian Basin and Southern Louisiana
areas, the rate ceilings set forth in Table 1 of this section applicable
to gas-well gas (or residue gas derived therefrom) shall be determined
by the date of discovery of such reservoir, in lieu of the contract
date, in the case of production on or after November 1, 1969, from a new
reservoir on previously committed acreage. In all other areas, the
initial rate ceilings set forth in Table 1 of this section shall
determine the increased rate ceilings in the case of gas-well gas (or
residue gas derived therefrom) produced on or after November 1, 1969,
from a reservoir discovered on or after September 28, 1960, on
previously committed acreage.
(2) Where a producer is entitled to an increase in the price of its
gas based on the date of discovery of the reservoir from which gas-well
gas sales (or residue gas derived therefrom) are being made, it may file
a proposed price increase pursuant to section 4 of the Natural Gas Act,
indicating to what gas the higher price will be applicable. With each
filing the producer will include (i) copies of all documents filed with
or issued by local or State regulatory agencies relating to the
discovery of the reservoir from which the gas is produced, and (ii) a
statement by the buyer of the gas that the gas qualifies for the price
sought, or why the buyer believes it does not. The producer shall also
furnish any additional material in its possession or available to it
which the Commission may request in writing. Documents or other data
previously filed with this Commission, whether by the producer or
another, may be incorporated by reference in any filing hereunder.
Similar information shall be filed in any pending section 4 proceeding
to which it is relevant. The Commission will follow the determination
made by the appropriate State agency in determining the date of
discovery of a reservoir. In the event the State agency changes its
classification of a reservoir, the Commission shall follow such change
as of the date of the new classification. Whenever the reclassification
of a reservoir affects the applicable ceiling rate the producer and the
buyer shall notify the Commission.
(3) Reservoirs discovered on or after January 1, 1973. The rate for
new reservoirs discovered on or after January 1, 1973, as a result of a
well completion or recompletion commenced prior to January 1, 1973,
shall be priced at the rate determined by 2.56(a)(5).
(g) If the Commission decides to suspend a rate change filing made by
an independent producer under section 4(d) of the Natural Gas Act, and
such rate change is filed at least 60 days prior to its proposed
effective date, the suspension period will be 1 day from the proposed
effective date, or 1 day from the date of initial delivery, whichever is
later, unless the Commission waives the notice period required herein or
imposes a longer suspension period.
(Secs. 4, 5, 7, 52 Stat. 822, 823, 824; 15 U.S.C. 717c, 717d, 717f)
(Statement of General Policy 61-1, 25 FR 13969, Dec. 30, 1960)
Editorial Note: For Federal Register citations affecting 2.56, see
the List of CFR Sections Affected in the Finding Aids section of this
volume.
Cross Reference: See 154.109b of this title for definition of Rocky
Mountain area with respect to an amendment affecting tables 2 and 3 in
paragraph (c) and (d) respectively.
18 CFR 2.56a National rates for sales of natural gas from wells
commenced on or after January 1, 1973, and certain other sales.
(a) Base national rates. Notwithstanding any other provisions of the
General Rules of the Federal Power Commission, or the Regulations under
the Natural Gas Act, sales of natural gas in interstate commerce which
qualify under the provisions of this paragraph may be made at rates
herein provided.
(1) Sales of natural gas in interstate commerce for resale may be
made at a rate of $1.42 per Mcf (at 14.73 psia), exclusive of all State
or Federal production, severance or similar taxes, and subject to the
adjustments provided in this 2.56a, and the escalation provided in
paragraph (a)(2) of this section, provided:
(i) The sale is made from a well commenced on or after January 1,
1975.
(2) The price prescribed by paragraph (a)(1) of this section may be
increased by an amount not to exceed 1 cent per Mcf per quarter
commencing on October 1, 1976, and the first days of January, April,
July, and October of every year, thereafter, for the term of the
contract dedicating the subject gas for sale in interstate commerce
pursuant to the terms of the sales contract until such time as the price
prescribed in paragraph (a)(1) of this section shall be redetermined
according to the provisions of paragraph (m) of this section.
(3) Sales of natural gas in interstate commerce for resale may be
made at a rate of $0.93 per Mcf (at 14.73 psia), exclusive of all State
or Federal production, severance or similar taxes, and subject to the
adjustments provided in this section, and the escalation provided in
paragraph (a)(4) of this section, provided:
(i) The sale is made from a well commenced on or after January 1,
1973, and prior to January 1, 1975.
(4) The price prescribed by this paragraph (a)(3) of this section may
be increased by an amount not to exceed 1.0 cent per Mcf per annum
commencing on January 1, 1977, and the first day of every year
thereafter for the term of the contract dedicating the subject gas for
sale in interstate commerce pursuant to the terms of the sales contract
until such time as the price prescribed in paragraph (a)(3) of this
section shall be redetermined according to the provisions of paragraph
(m) of this section.
(5) Sales of natural gas in interstate commerce for resale may be
made at a rate of 52 cents per Mcf (at 14.73 psia), exclusive of all
State or Federal production, severance or similar taxes, and subject to
the adjustments provided in this 2.56a, and the escalation provided in
paragraph (a)(6) of this section, provided the sale is made pursuant to
(i) a replacement contract where the sale was formerly made pursuant to
a permanent certificate of unlimited duration under such prior contract
which expired by its own term on or after January 1, 1973, or pursuant
to a contract executed on or after January 1, 1973, where the prior
contract expired by its own terms prior to January 1, 1973; or (ii)
contracts for sale of natural gas in interstate commerce for gas from
wells commenced prior to January 1, 1973, and not previously sold in
interstate commerce prior to January 1, 1973, except pursuant to the
provisions of 2.68, 2.70, 157.22 or 157.29 (including sales made
pursuant to those sections as modified by Federal Power Commission Order
No. 491 et al.); or (iii) a completion operation into a different
formerly nonproductive reservoir commenced on or after January 1, 1973,
in a well commenced (spudded) prior to January 1, 1973.
(6) The price prescribed by paragraph (a)(5) of this section may be
increased by an amount not to exceed 1.0 cent per Mcf per annum
commencing on January 1, 1977, and the first day of every year
thereafter for the term of the contract dedicating the subject gas for
sale in interstate commerce pursuant to the terms of the sales contract
until such time as the price prescribed in paragraph (a)(5) of this
section shall be redetermined according to the provisions of paragraph
(m) of this section.
(b) Tax adjustments. The applicable rates prescribed in paragraph
(a) of this section shall be adjusted upward for all State or Federal
production, severance, or similar taxes, effective the date deliveries
are commenced, and shall be adjusted upward by 100 percent of any
increase in such taxes subsequent to the date deliveries were commenced,
and shall be adjusted downward by 100 percent of any decrease in such
taxes subsequent to the date deliveries were commenced.
(c) Quality adjustments. For natural gas sold in interstate commerce
for resale at any of the rates prescribed in paragraph (a) of this
section, quality standards and the resulting adjustments to the base
national rate shall be made as follows:
(1) Btu Adjustment. (i) For natural gas containing more than 1,000
Btu's per cubic foot, at 60 F. and 14.73 psia, upward adjustments shall
be made on a proportional basis from a base of 1,000 Btu's per cubic
foot; and for natural gas containing less than 1,000 Btu's per cubic
foot, at 60 F. and 14.73 psia, downward adjustments shall be made on a
proportional basis from a base of 1,000 Btu's per cubic foot.
(ii) This adjustment shall be made after the rate prescribed in
paragraph (a) of this section is adjusted for taxes pursuant to
paragraph (b) of this section.
(iii) The Btu content of the natural gas used in computing this rate
adjustment shall be the number of British thermal units (Btu) produced
by the combustion, at constant pressure, of the amount of the gas which
would occupy a volume of 1.0 cubic foot at a temperature of 60 F.
saturated with water vapor and under a pressure equivalent to that of
30.00 inches of mercury at 32 F. and under standard gravitational force
(980.665 centimeters per second squared) with air of the same
temperature and pressure as the gas, when the products of combustion are
cooled to the initial temperature of the gas and air and when the water
formed by combustion is condensed to the liquid state.
(2) Other quality adjustments. All quality standards and the
resulting adjustments to the rates prescribed in paragraph (a) of this
section shall be made in accordance with the provisions of the
particular gas sales contract except that all Btu adjustments shall be
governed by paragraph (a)(1) of this section.
(d) Gathering allowances. The base national rates prescribed in
paragraph (a) of this section, as adjusted for Btu content and
applicable taxes, shall be adjusted for gathering activities as follows:
(1) Appalachian-Illinois basin areas. The gathering allowance shall
be 1.0 cent per Mcf for all sales of natural gas made from wells located
in the Appalachian-Illinois Basin Areas.
(2) Hugoton-Anadarko area. The gathering allowance shall be the
amounts prescribed below where delivery of the gas is made after
substantial off-lease gathering by the producer, whether at a plant
tailgate or at a central point in the field.
(i) For gas produced in the Panhandle and Hugoton Fields, the
allowance shall be 2.5 cents per Mcf.
(ii) For gas produced from fields or reservoirs other than the
Panhandle or Hugoton Fields (the ''Other Fields''), the allowance shall
be 1.0 cent per Mcf.
(3) Other southwest area. The gathering allowance shall be the
amounts prescribed below where the gas is delivered to the buyer at a
central point in the field, the tailgate of a processing plant, a point
on the buyer's pipeline, or an off-shore platform on the buyer's
pipeline.
(i) For gas produced in the Other Oklahoma Area, Texas Railroad
District No. 9, and Northern Arkansas, the allowance shall be 1.5 cents
per Mcf.
(ii) For gas produced in Texas Railroad District Nos. 5 and 6,
Northern Louisiana, and Southern Arkansas, the allowance shall be 1.0
cent per Mcf.
(iii) For gas produced in Mississippi and Alabama, the allowance
shall be 1.25 cents per Mcf.
(4) Permian basin area. For gas produced in the Permian Basin Area,
the applicable gathering allowance shall be 1.5 cents per Mcf where
delivery is made after substantial off-lease gathering by the producer,
whether at a plant tailgate or a central point in the field.
(5) Rocky Mountain area. For gas produced in the Rocky Mountain
Area, the applicable gathering allowance shall be 1.0 cent per Mcf where
delivery is made to the buyer at a central point in the field, the
tailgate of a processing plant, or a point on the buyer's pipeline.
(6) Southern Louisiana area. For gas produced in the Southern
Louisiana Area, the applicable gathering allowance shall be 0.5 cent per
Mcf where the gas is delivered to the buyer at a central point in the
field, the tailgate of a processing plant, a point on the buyer's
pipeline, or an offshore platform on the buyer's pipeline.
(7) Texas Gulf Coast area. For gas produced in the Texas Gulf Coast
Area, the applicable gathering allowance shall be 0.4 cent per Mcf where
the gas is delivered to the buyer at a central point in the field, the
tailgate of a processing plant, a point on the buyer's pipeline, or an
offshore platform on the buyer's pipeline.
(e) Delivery of offshore gas by the producer to an onshore area. If
natural gas produced offshore is delivered onshore, at the sole cost of
producer, the uniform national rates shall be adjusted upward 1.0 cent
per Mcf for such offshore gas.
(f) Adjusted national rate. The uniform national rates prescribed in
paragraph (a) of this section, as adjusted pursuant to paragraphs (b),
(c), (d), and (e) of this section, are the adjusted national rates, and
such rates are applicable only to those jurisdictional sales described
in paragraph (a) of this section made within the United States including
the adjacent offshore Federal domain but excluding Alaska and Hawaii.
No seller may demand or receive any rate or charge in excess of the
rates prescribed by paragraph (a) of this section, except for such
adjustments described in paragraphs (b), (c), (d), and (e) of this
section as may be applicable to the particular sale, unless the
Commission after giving proper notice and providing an opportunity for
the submission of comments shall modify the rates set forth in paragraph
(a) of this section or grant a petition for special relief pursuant to
paragraph (g) of this section.
(g) (Reserved)
(h) Modification of area rate regulations. To the extent that the
Commission's Regulations Under the Natural Gas Act establishing area
rates and conditions for sales of natural gas from the Southern
Louisiana Area (18 CFR 154.105), Hugoton-Anadarko Area (18 CFR 154.106),
Appalachian Basin Area (18 CFR 154.107), Illinois Basin Area (18 CFR
154.109), Other Southwest Area (18 CFR 154.109a), or Rocky Mountain Area
(18 CFR 2.56(a), 154.109(b)), and the Permian Basin Area are
inconsistent with the provisions set forth above the same are hereby
modified to reflect the provisions set forth above. The provisions of
the rate structures for these areas are modified only with respect to
those sales which are certificated pursuant to the provisions of this
section and in all other respects remain in full force and effect.
Provisions pertaining to refund credits and contingent escalations are
contained in paragraph (i) of this section.
(i) Waiver of refund credits and contingent escalations. Any natural
gas certificated under the provisions of this section which a natural
gas producer elects to have credited against his existing refund
obligations in the Southern Louisiana, Texas Gulf Coast, Other
Southwest, or Permian Basin areas, or applied to the triggering volumes
for the contingent escalations for those areas, shall be priced at the
rate prescribed in the applicable area rate opinion and not at the
uniform national rates prescribed in this opinion. For purposes of this
section the applicable area rate opinions and Commission regulations
are:
(1) Area Rate Proceeding (Texas Gulf Coast Area), et al., Opinion No.
595, 45 F.P.C. 675 (1971); 18 CFR 154.109.
(2) Area Rate Proceeding (Southern Louisiana Area), et al., Opinion
No. 598, 46 F.P.C. 86 (1971); 18 CFR 154.105.
(3) Area Rate Proceeding (Other Southwest Area), et al., Opinion No.
607A, 47 F.P.C. 99 (1972); 18 CFR 154.109a.
(4) Area Rate Proceeding (Permian Basin Area II), Docket No. AR70-1
(Phase I), Opinion No. 662, 50 F.P.C. 390 (1973).
With respect to gas of a class described in paragraph (a) of this
section which is currently being sold in interstate commerce in
discharge of a refund obligation or was dedicated to interstate commerce
in partial satisfaction of the triggering volumes for the contingent
escalations in the described areas, such gas may be sold at the rates
prescribed in paragraph (a) of this section only if the seller files a
written waiver of the right with respect to such gas to discharge such
refund obligations or to trigger the contingent escalations concurrently
with the contractually authorized rate increase filing. The seller
shall further state the date on which the subject wells were commenced,
the present provisions under which the gas is being sold in interstate
commerce, the dollar amount of existing refund obligations previously
discharged by the sale of such gas, and the volumes (at 14.73 psia)
applied to trigger the contingent escalations.
(j) Effective date of rate filings and waivers of refund credits or
contingent escalations. (1) Any contractually authorized increased rate
filing made pursuant to the provisions of this order shall be effective
as of July 27, 1976, if the filing is made on or before August 26, 1976,
and any filing made thereafter will be subject to the thirty (30) day
notice requirement.
(2) A single filing may be made which covers the rates to become
effective July 27, 1976, and the 1.0 periodic escalations to be
effective October 1, 1976, January 1, 1977, April 1, 1977, and July 1,
1977, provided such filing clearly and distinctly shows the rates to be
effective on these respective dates.
(3) For those persons desiring to make separate filings to track the
1.0 periodic escalations to be effective October 1, 1976, January 1,
1977, April 1, 1977, and July 1, 1977, such filings will be subject to
the thirty (30) day notice requirement. Any filings made after August
26, 1976, will be subject to the thirty (30) day notice requirement.
(k) Pipeline production. Natural gas production from leases owned by
a pipeline or a pipeline affiliate may be priced at the rate prescribed
in paragraph (a) of this section pursuant to the provisions of 2.66(c)
of this part (18 CFR 2.66(c)).
(l) Termination of rate ceiling. The rates prescribed in paragraph
(a) of this section shall remain in effect until such time as rates are
established pursuant to paragraph (m) of this section.
(m) Review of national rate ceiling. Prior to January 1, 1977, the
Commission shall initiate such proceedings as shall be necessary to
establish a just and reasonable rate to be effective from the date of
establishment of rates by order of the Commission through December 31,
1978, for the sales described in paragraph (a) of this section and for
all wells commenced on or after January 1, 1977, and prior to January 1,
1979.
(n) Revision of 2.56(h) (18 CFR 2.56(h). By Opinion No. 699, the
Commission promulgated a national rate structure as paragraph (h) of
2.56 of its General Policy Statements and Interpretations (18 CFR
2.56(h)). By Opinion No. 699-E, said 2.56(h) was revised and designated
as 2.56a (18 CFR 2.56a). All certificates which may have been issued
prior to this date pursuant to 2.56(h) are hereby amended to reflect
the change in codification of the national rate structure.
(o) Effective date. The effective date of this 2.56a is July 27,
1976.
(p) Reporting requirements on new wells and completions. Where a
producer intends to drill a new well or perform a new completion
operation within an established proration unit in the same reservoir,
the producer is required to file a rate filing to collect the base rates
prescribed in paragraphs (a) (1) and (3) of this section, and such
filing shall be accompanied by a statement of eligibility for the rates
prescribed in paragraphs (a) (1) and (3) of this section, justifying the
need for the drilling of the new well or the performance of the
completion operation. With each filing the producer will include as
part of his statement of eligibility:
(1) A statement of the producer relating to the need for the drilling
of a new well or the performance of a completion operation and the date
of such drilling or recompletion,
(2) A statement of the producer relating to the date of the initial
drilling or recompletion of the existing well,
(3) Copies of all documents filed with or issued by local or State
regulatory agencies relating to the drilling of the new well or the
performance of the completion operation,
(4) A statement by the local or State regulatory agencies relating to
the need for an additional well or completion operation into the subject
reservoir, and
(5) A statement by the buyer of the gas that the gas qualifies for
the rates established in paragraphs (a) (1) and (3) of this section, or
why the buyer believes it does not.
The producer shall also furnish any additional material in its
possession or available to it which the Commission may request in
writing. Documents or other data previously filed with the Commission,
whether by the producer or another, may be incorporated by reference in
any filing hereunder.
(Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Opinion 770-A, 41 FR 50231, Nov. 15, 1976, as amended by Opinion
770-A, 42 FR 2954, Jan. 14, 1977; 49 FR 21912, May 23, 1984)
18 CFR 2.56b National rate for sales of natural gas from wells
commenced prior to January 1, 1973.
(a) Base national rate. (1) Notwithstanding any other provisions of
the general rules of the Federal Power Commission, or the regulations
under the National Gas Act, sales of natural gas which qualify under the
provisions set forth in paragraph (a)(2) of this section may be made in
interstate commerce at a rate not to exceed 23.5 cents per Mcf prior to
July 1, 1976, and 29.5 cents per Mcf on and after July 1, 1976 (at 14.73
psia and 60 F), exclusive of all State or Federal production, severance
or similar taxes, and subject to the adjustments provided in this
section.
(2)(i) Sales of natural gas in interstate commerce for resale may be
made at the rate prescribed in paragraph (a) (1) of this section
provided the sale is made from a well or wells commenced prior to
January 1, 1973, unless the rate for such sale is prescribed by a
certificate or authorization issued pursuant to rules or regulations set
forth in paragraph (a)(2)(ii) of this section or the rate for such sale,
as adjusted, prescribed in the area rate opinions and orders described
in paragraph (a)(2)(iii) of this section is greater than the rate, as
adjusted, prescribed in paragraph (a)(1) of this section.
(ii) The rules and regulations described in paragraph (a)(1) of this
section are:
(A) 18 CFR 2.56a;
(B) 18 CFR 2.70(b)(3);
(C) 18 CFR 2.75;
(D) Former 18 CFR 2.76;
(E) Former 18 CFR 2.77;
(F) 18 CFR 157.29; and
(G) 18 CFR 157.40.
(iii) The area rate opinions and orders described in paragraph (a)(1)
of this section are:
(A) Appalachian-Illinois Basin Area, Order No. 411, 44 F.P.C. 1112;
Order No. 411-A, 44 F.P.C. 1334; Order No. 411-B, 44 F.P.C. 1487
(1970) (Codified as 18 CFR 154.107, 154.108);
(B) Hugoton-Anadarko Area, Opinion No. 586, 44 F.P.C. 761 (1970)
(Codified as 18 CFR 154.106);
(C) Other Southwest Area, Opinion No. 607, 46 F.P.C. 900 (1971);
Opinion No. 607-A, 47 F.P.C. 99 (1972) (Codified as 18 CFR 154.109a);
(D) Permian Basin Area, Opinion No. 662, 50 F.P.C. 390; Opinion No.
662-A, 50 F.P.C. 932 (1973);
(E) Rocky Mountain Area, Order No. 435, 46 F.P.C. 68 (1971); 46
F.P.C. 620 (1970); Opinion No. 658, 49 F.P.C. 924 (1973); Opinion No.
699-H, ---- F.P.C. ---- (December 4, 1974) (Codified as 18 CFR 2.56(a)
(Table 1A), 154.109b);
(F) Southern Louisiana Area, Opinion No. 598, 46 F.P.C. 86; Opinion
No. 598-A, 46 F.P.C. 633 (1971) (Codified as 18 CFR 154.105); and
(G) Texas Gulf Coast Area, Opinion No. 595, 45 F.P.C. 674; Opinion
No. 595-A, 46 F.P.C. 827 (1971) (Codified as 18 CFR 154.109).
(b) Minimum rate. The minimum rate for natural gas subject to the
provisions of this section is 18.0 cents per Mcf (at 14.73 psia and 60
F). The adjustments prescribed in paragraphs (d), (e) and (f) of this
section do not apply to such minimum rate. This rate shall be adjusted
as prescribed in paragraph (c) of this section. Increases to the
minimum rate filed on or after the effective date of this order will be
granted notwithstanding contractual provisions to the contrary which are
hereby modified pro tanto.
(c) Production and severance tax adjustments. The applicable rate
prescribed in paragraph (a)(1) of this section shall be adjusted upward
for all State or Federal production, severance, or similar taxes,
effective the date deliveries are commenced, and shall be adjusted
upward by 100 percent of any increase in such taxes subsequent to the
date deliveries were commenced, and shall be adjusted downward by 100
percent of any decrease in such taxes subsequent to the date deliveries
were commenced.
(d) Quality adjustments. For natural gas sold in interstate commerce
for resale subject to the rate prescribed in paragraph (a)(1) of this
section, quality standards and the resulting adjustments to the base
national rate shall be made as follows:
(1) Btu adjustment. For natural gas containing more than 1,000 Btu's
per cubic foot, at 60 F and 14.73 psia, upward adjustments shall be
made on a proportional basis from a base of 1,000 Btu's per cubic foot;
and for natural gas containing less than 1,000 Btu's per cubic foot, at
60 F and 14.73 psia, downward adjustments shall be made on a
proportional basis from a least of 1,000 Btu's per cubic foot. This
adjustment shall be made after the rate prescribed in paragraph (a)(1)
of this section is adjusted for taxes pursuant to paragraph (c) of this
section. The Btu content of the natural gas used in computing this rate
adjustment shall be the number of British thermal units (Btu) produced
by the combustion, at constant pressure, of the amount of the gas which
would occupy a volume of 1.0 cubic feet at a temperature of 60 F
saturated with water vapor and under a pressure equivalent to that of
30.00 inches of mercury at 32 F and under standard gravitational force
(980.665 centimeters per second squared) with air of the same
temperature and pressure as the gas, when the products of combustion are
cooled to the initial temperature of the gas and air and when the water
formed by combustion is condensed to the liquid state.
(2) Other quality adjustments. All quality standards and the
resulting adjustments to the rate prescribed in paragraph (a)(1) of this
section shall be made in accordance with the provisions of the
particular gas sales contract except that all Btu adjustments shall be
governed by paragraph (d)(1) of this section.
(e) Gathering allowances. The base national rate prescribed in
paragraph (a)(1) of this section, as adjusted for Btu content and
applicable taxes, shall be adjusted for gathering activities as follows:
(1) Appalachian-Illinois Basin Areas. The gathering allowance shall
be 1.0 cents per Mcf for all sales of natural gas made from wells
located in the Appalachian-Illinois Basin Areas.
(2) Hugoton-Anadarko Area. The gathering allowance shall be the
amounts prescribed below where delivery of the gas is made after
substantial off-lease gathering by the producer, whether at a plant
tailgate or at a central point in the field.
(i) For gas produced in the Panhandle and Hugoton Fields, the
allowance shall be 2.5 cents per Mcf.
(ii) For gas produced from fields or reservoirs other than the
Panhandle or Hugoton Fields (the ''Other Fields''), the allowance shall
be 1.0 cents per Mcf.
(3) Other Southwest Area. The gathering allowance shall be the
amounts prescribed below where the gas is delivered to the buyer at a
central point in the field, the tailgate of a processing plant, a point
on the buyer's pipeline, or an offshore platform on the buyer's
pipeline.
(i) For gas produced in the Other Oklahoma Area, Texas Railroad
District No. 9, and Northern Arkansas, the allowance shall be 1.5 cents
per Mcf.
(ii) For gas produced in Texas Railroad District Nos. 5 and 6,
Northern Louisiana, and Southern Arkansas, the allowance shall be 1.0
cents per Mcf.
(iii) For gas produced in Mississippi and Alabama, the allowance
shall be 1.25 cents per Mcf.
(4) Permian Basin Area. For gas produced in the Permian Basin Area,
the applicable gathering allowance shall be 1.5 cents per Mcf where
delivery is made after substantial off-lease gathering by the producer,
whether at a plant tailgate or a central point in the field.
(5) Rocky Mountain Area. For gas produced in the Rocky Mountain
Area, the applicable gathering allowance shall be 1.0 cents per Mcf
where delivery is made to the buyer at a central point in the field, the
tailgate of a processing plant, or a point on the buyer's pipeline.
(6) Southern Louisiana Area. For gas produced in the Southern
Louisiana Area, the applicable gathering allowance shall be 0.5 cents
per Mcf where the gas is delivered to the buyer at a central point in
the field, the tailgate of a processing plant, a point on the buyer's
pipeline, or an offshore platform on the buyer's pipeline.
(7) Texas Gulf Coast Area. For gas produced in the Texas Gulf Coast
Area, the applicable gathering allowance shall be 0.4 cents per Mcf
where the gas is delivered to the buyer at a central point in the field,
the tailgate of a processing plant, a point on the buyer's pipeline, or
an offshore platform on the buyer's pipeline.
(f) Delivery of offshore gas by the producer to an onshore area. If
natural gas produced offshore is delivered onshore, at the sole cost of
producer, the uniform national rate shall be adjusted upward 1.0 cent
per Mcf for such offshore gas.
(g) Adjusted national rate. The uniform national rate prescribed in
paragraph (a)(1) of this section, as adjusted pursuant to paragraphs
(c), (d), (e), and (f), of this section is the adjusted national rate,
and such rate is applicable only to those jurisdictional sales described
in paragraph (a)(2) of this section made within the United States
including the adjacent offshore Federal domain but excluding Alaska and
Hawaii. No seller may demand or receive any rate or charge in excess of
the rate prescribed by paragraph (a) of this section, except for such
adjustments described in paragraphs (c), (d), (e), and (f) of this
section as may be applicable to the particular sale, unless the
Commission after giving proper notice and providing an opportunity for
the submission of comments shall modify the rate set forth in paragraph
(a) of this section or grant a petition for special relief pursuant to
paragraph (h) of this section.
(h) (Reserved)
(i) Modification of area rate regulations. To the extent that the
Commission's regulations under the Natural Gas Act establishing area
rates and conditions for sale of natural gas from the Southern Louisiana
Area (18 CFR 154.105), Hugoton-Anadarko Area (18 CFR 154.106),
Appalachian Basin Area (18 CFR 154.107), Illinois Basin Area (18 CFR
154.108), Texas Gulf Coast Area (18 CFR 154.109), Other Southwest Area
(18 CFR 154.109a), or Rocky Mountain Area (18 CFR 2.56(a), 154.109(b)),
and the Permian Basin Area are inconsistent with the provisions set
forth above the same are hereby modified to reflect the provisions set
forth above. The provisions of the rate structures for these are
modified only with respect to those sales which are covered pursuant to
the provisions of this section and in all other respects remain in full
force and effect. Provisions pertaining to refund credits and
contingent escalations are contained in paragraph (j) of this section.
(j) Waiver of refund credits and contingent escalations. Any natural
gas certificated under the provisions of this section which a natural
gas producer elects to have credited against his existing refund
obligations in the Southern Louisiana, Texas Gulf Coast, Other Southwest
Area, or the Permian Basin, or applied to the triggering volumes for the
Contingent escalations for those areas shall be priced at the rate
prescribed in the applicable area rate opinion and not at the uniform
national rate prescribed in this opinion. For purposes of this section,
the applicable area rate opinions and Commission regulations are:
(1) Area Rate Proceeding (Texas Gulf Coast Area), et al., Opinion No.
595, 45 F.P.C. 675 (1971); 18 CFR 154.109.
(2) Area Rate Proceeding (Southern Louisiana Area), et al., Opinion
No. 598, 46 F.P.C. 86 (1971); 18 CFR 154.195.
(3) Area Rate Proceeding (Other Southwest Area), et al., Opinion No.
607-A, 47 F.P.C. 99 (1972); 18 CFR 154.109a.
(4) Area Rate Proceeding (Permian Basin Area II), Docket No. AR70-1
(Phase I), Opinion No. 662, 50 F.P.C. 390 (1973).
With respect to gas of a class described in paragraph (a)(2) of this
section which is currently being sold in interstate commerce in
discharge of a refund obligation or was dedicated to interstate commerce
in partial satisfaction of the triggering volumes for the contingent
escalations in the described areas, such gas may be sold at the rate
prescribed in paragraph (a) of this section only if the seller files a
written waiver of the right with respect to such gas to discharge such
refund obligations or to trigger the contingent escalations concurrently
with the contractually authorized rate increase filing. The seller
shall further state the date on which the subject wells were commenced,
the present provisions under which the gas is being sold in interstate
commerce, the dollar amount of existing refund obligations previously
discharged by the sale of such gas, and the volumes (at 14.73 psia)
applied to trigger the contingent escalations.
(k) Effective date of rate filings and waivers of refund credits or
contingent escalations. Any contractually authorized increased rate
filing and/or written waiver of refund credits or contingent escalations
made pursuant to the provisions of this order shall be effective as of
January 1, 1976, if the filing is made on or before March 31, 1976, and
as of the date of filing if the filing is made subsequent thereto. A
single filing may be made which covers the rates to become effective
January 1, 1976, and the rates to become effective July 1, 1976,
provided such filing clearly and distinctly shows the rates to be
effective January 1, 1976, and July 1, 1976, respectively. For those
persons desiring to make separate filings to track the January 1, 1976,
and July 1, 1976, rate increases, such filing shall be made on or before
March 31, 1976, and May 31, 1976, to make the rate increases and/or
waiver of refund credits or contingent escalation effective as of
January 1, 1976, and July 1, 1976, respectively. Any filings made after
May 31, 1976, will be subject to the thirty (30) day notice
requirements.
(l) Pipeline production. Natural gas production not covered by 18
CFR 2.56a from leases acquired after October 7, 1969, by a pipeline or a
pipeline affiliate may be priced at the rate prescribed in paragraph (a)
of this section, pursuant to the provisions of 2.66(c) of this part (18
CFR 2.66(c)).
(m) Termination of rate ceiling. The rate prescribed in paragraph
(a) of this section shall remain in effect until such time as the
Commission upon its own motion or application of any person modifies the
rates established herein.
(n) The effective date of this 2.56b is January 1, 1976.
(Opinion 749, 41 FR 2815, Jan. 20, 1976, as amended by Opinion 749-A,
41 FR 9866, Mar. 8, 1976; 49 FR 21912, May 23, 1984)
18 CFR 2.57 Temporary certificates -- pipeline companies.
The Federal Power Commission will exercise the emergency powers set
forth in the second proviso of section 7(c) of the Natural Gas Act to
authorize in appropriate cases, by issuance of temporary certificates,
comparatively minor enlargements or extensions of an existing pipeline
system. It will not be the policy of the Commission, however, to
proceed summarily, i.e., without notice or hearing, in cases where the
proposed construction is of major proportions. Pipeline companies are
accordingly urged to conduct their planning and to submit their
applications for authority sufficiently early so that compliance with
the requirements relating to issuance of permanent certificates of
public convenience and necessity (when those requirements are deemed
applicable by the Commission) will not cause undue delay in the
commencement of necessary construction.
(52 Stat. 824; 56 Stat. 83; 15 U.S.C. 717f)
(Gen. Policy 62-1, 26 FR 10098, Oct. 27, 1961)
18 CFR 2.60 Facilities and activities during an emergency -- accounting
treatment of defense-related expenditures.
The Commission, cognizant of the need of the natural gas industry for
advice with respect to the applicability of the Natural Gas Act and the
Commission's regulations thereunder regarding activities and operations
of natural gas companies taking security measures in preparation for a
possible national emergency, sets forth the following interpretation and
statement of policy:
(a) Facilities. The definition of auxiliary installations in
2.55(a) for which no certificate authority is necessary includes such
defense-related facilities as (1) fallout shelters at compressor
stations and other operating and maintenance camps; (2) emergency
company headquarters or other similar installations; and (3) emergency
communication equipment.
(b) The Commission will consider reasonable investment in
defense-related facilities, such as those described in paragraph (a) of
this section, to be prudent investment for ratemaking purposes.
(c) When a person, not otherwise subject to the jurisdiction of the
Commission, files an application for a certificate of public convenience
and necessity authorizing the construction of facilities to be used
solely for operation in a national emergency for the delivery of gas to,
or receipt of gas from, a person subject to the Commission's
jurisdiction, the Commission will consider a request by such applicant
for waiver of the requirement to keep and maintain its accounts in
accordance with the Uniform System of Accounts for Natural Gas Companies
(parts 201 and 204 of this chapter) or to file the annual reports to the
Commission required by 260.1 and 260.2 of this chapter.
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309 (41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617; 16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i), as amended, secs. 8, 10, and 16 (52 Stat. 825-826,
830; 15 U.S.C. 717g, 717i, 717o))
(Order 274, 28 FR 12866, Dec. 4, 1963, as amended by Order 567, 42 FR
30612, June 16, 1977)
18 CFR 2.61 Pipeline companies -- natural gas reserves --
deliverability life.
Simultaneously with its promulgation of the annual report, FPC Form
No. 15, to be filed by certain pipeline companies with respect to total
gas supply and deliverability ( 260.7 of this chapter), the Commission
issued the following statement of policy:
(a) When a pipeline company has demonstrated through the annual
reports filed pursuant to 260.7 of this chapter that it has an active
gas procurement organization and its pipeline system extends into
production areas in which exploration is continuing, the twelve-year
deliverability life heretofore found to be a primary requisite by the
Commission will not necessarily be applied and the Commission's
deliverability requirement will be flexible. 1004
(b) Unless otherwise ordered by the Commission, existing pipeline
companies will not be required to file information with regard to gas
supply and deliverability in support of pipeline system expansions,
other than with respect to applications to serve major new markets or to
serve existing markets from new sources of gas supply by new routes
involving extensive expansion of existing facilities, but may rely on
the information set forth in filed annual reports, by reference thereto
( 157.13(b) of this chapter).
(c) The deliverability life showing of a new pipeline company seeking
to initiate service, or of an existing pipeline company seeking to serve
major new markets or to serve major existing markets from new sources of
supply over new routes will be dependent upon the future availability of
gas in its proposed new supply areas, but in no event shall the minimum
deliverability life of the incremental supply needed to serve the new or
expanded market be less than twelve years.
(Secs. 7, 10(a), 14(a), 52 Stat. 825, 826, 828, 56 Stat. 83; 15
U.S.C. 717f, 717i(a), 717m(a))
(Order 279, 29 FR 4874, Apr. 7, 1964)
1Deliverability as used herein represents the number of future years
during which a pipeline company can meet its annual requirements for its
presently certificated delivery capacity from presently committed
sources of supply. The availability of gas from these sources of supply
shall be governed by the physical capabilities of these sources to
deliver gas, by the terms of existing gas-purchase contracts and
limitations imposed by state or federal regulatory agencies.
18 CFR 2.63 Express refund conditions in certain temporary certificates
of public convenience and necessity issued to independent producers of
natural gas.
For the purpose of protecting consumers from the exaction of
out-of-line rates, temporary certificates authorizing sales of natural
gas by independent producers in areas where just and reasonable rates
have not been determined will contain an express refund condition fixed
at a level 2 cents below the applicable guideline rate set forth in the
statement of general policy No. 61-1, as amended ( 2.56), or the
previously determined applicable in-line rate, whichever is lower,
together with a proportional adjustment for B.t.u.'s of less than 1,000
per cubic foot, measured on a wet basis.
(Sec. 7, 52 Stat. 825, 56 Stat. 83; 15 U.S.C. 717f(c), 717f(e))
(Order 336, 32 FR 2845, Feb. 14, 1967)
18 CFR 2.64 Independent producers; transfer of producing acreage;
procedure.
(a) A natural gas producer who transfers all or part of his producing
acreage to another does not have to apply for an amendment to his
existing certificate of public convenience and necessity authorizing the
sale if the new producer is required to obtain a certificate to sell gas
from the property, i.e., in those cases where gas is being produced from
the assigned acreage or, if the acreage is nonproductive at the time of
transfer if the assignee initiates a sale for resale in interstate
commerce. In those cases where the assigned acreage is not productive
at the time of transfer, the assignor must obtain Commission
authorization to delete such acreage, either pursuant to an application
to amend his existing certificate to delete the assigned acreage or by
filing an application under section 7(b) of the Natural Gas Act to
abandon service from that acreage, unless, within 1 year from the date
of the assignment the successor in interest files an application for
certificate authorization to sell the gas for resale in interstate
commerce.
(b) A producer who transfers part of his acreage to a successor must
file the instruments of assignment as supplements to his FPC rate
schedules, as required by 154.97 of this chapter. The successor
producer must obtain certificate approval to continue the sale and must
file the gas purchase contracts and instruments of assignment as his own
rate schedules, as required by 154.92(d) of this chapter.
(Sec. 7, 52 Stat. 825, 56 Stat. 83; 15 U.S.C. 717f(c), 717f(e))
(Order 340, 32 FR 5990, Apr. 14, 1967)
18 CFR 2.65 Applications for certificates of public convenience and
necessity for offshore gas transmission facilities.
(a) It will be the general policy of the Commission to require that
applications for certificates of public convenience and necessity, filed
pursuant to section 7(c) of the Natural Gas Act, for the construction
and operation of offshore pipeline facilities, be filed on or before
September 1st of the year immediately preceding the proposed
installation. We direct our staff to review these applications on both
a joint and individual company basis with a view toward the development
of pipeline company gas exchange procedures that will minimize
cross-hauls and toward the promotion of joint use arrangements that will
assure the early full utilization of large capacity facilities in the
Outer-Continental Shelf area. To assist this Commission staff effort,
and to aid the Commission's disposition of offshore certificate
applications during our formal and statutory hearing procedures, an
applicant should include as a part of Exhibit Z to its application,
additional information which will:
(1) Detail with appropriate engineering and economic showings the
efforts it has made to utilize the existing and proposed offshore
facilities owned by other jurisdictional companies to transport
Applicant's gas;
(2) Demonstrate that it has consulted with other jurisdictional
entities with respect to the possibility of utilizing the proposed
facilities to transport gas to onshore installations for such entities;
(3) Utilize 30-inch (or larger if technologically possible) pipe for
its offshore main line facilities although upon good cause shown
Applicant may demonstrate in the alternative, the feasibility of a
smaller proposed line;
(4) Demonstrate that its proposed facilities will be utilized, either
by it individually or jointly with other pipeline companies, at a
minimum annual load factor of 60 percent of the annual capacity
available by the end of a 12-month period following the installation
thereof, unless a waiver is issued.
(b) It is the intention of the Commission to enforce the fourth
requirement by permitting offshore pipeline facilities, certificated
after the date of this order, to be included in Applicant's
cost-of-service in future rate proceedings at an average unit cost
predicated upon load factors of not less than 60 percent of the annual
capacity available.
(Sec. 7, 52 Stat. 824; 15 U.S.C. 717f)
(Order 363, 33 FR 8593, June 12, 1968, as amended by Order 555, 56 FR
52381, Oct. 18, 1991)
Effective Date Note: At 56 FR 52381, Oct. 18, 1991, 2.65 heading
was revised and paragraph (a) was amended, effective November 19, 1991.
At 56 FR 58845, Nov. 22, 1991, the effective date was delayed. A
document will be published in the Federal Register establishing the new
effective date. For the convenience of the user, the superseded text
appears as follows:
2.65 Applications for certificates of public convenience and
necessity for gas transmission facilities to be installed in the
off-shore southern Louisiana area.
(a) It will be the general policy of the Commission to require that
applications for certificates of public convenience and necessity, filed
pursuant to section 7(c) of the Natural Gas Act, for the construction
and operation of pipeline facilities to be installed in the southern
Louisiana offshore area, be filed on or before September 1st of the year
immediately preceding the proposed installation.
18 CFR 2.66 Pricing of certain new gas produced by pipelines and
pipeline affiliates.
(a) As a matter of policy in future pipeline rate proceedings, gas
produced by pipelines or by their affiliates from leases acquired after
the date of this order will be priced for ratemaking purposes at the
just and reasonable area rate applicable to gas of a vintage
corresponding to the date of completion of the first well on the lease,
otherwise at the in-line price, or, if there is no in-line price, on the
basis of the guideline price set forth in 2.56 with the following
exceptions:
(1) If a pipeline or pipeline affiliate acquires a developed lease
from which jurisdictional sales are being made and paragraph (a)(3) of
this section does not apply, the applicable price of gas shall be the
lower of (i) the contract price applicable to the gas, or (ii) the
applicable area price (or in-line or guideline price);
(2) If a pipeline or pipeline affiliate acquires a developed lease
from which nonjurisdictional sales are being made and paragraph (a)(3)
of this section does not apply, gas produced from the lease will be
priced at the just and reasonable area price applicable to gas of the
vintage corresponding to the date of lease acquisition (or in-line or
guideline price);
(3) If a pipeline or pipeline affiliate acquires a developed or
undeveloped lease, either directly or through intermediaries, from
another pipeline or affiliate which owned the lease prior to the date of
Opinion No. 568, the lease so acquired after the date of Opinion No.
568 shall be subject to cost-of-service treatment for ratemaking
purposes, subject to further determinations in Phase II of these
proceedings.
(4) If the pipeline is able to show in a rate proceeding that special
circumstances exist which justify different treatment, such a showing
should be made by means of a special schedule and supporting evidence
filed in addition to the material otherwise required by 154.63 of this
chapter.
(b) Pipelines acquiring production leases subsequent to the date of
this opinion either on their own part or through affiliates should:
(1) Where they have their own production, maintain separate
subdivisions of their plant and expense accounts related to production
properties and production activities, so as to show separately costs
related to production from present leases and costs related to
production from leases acquired after the date of this opinion;
(2) In making a rate filing, provide additional detail in
subdivisions within the production function, i.e., as between gas from
present leases and gas from leases acquired after the date of this
opinion with respect to their own production and also with respect to
any production of their affiliates.
(c) National rate for pipeline or pipeline affiliate production.
Notwithstanding any other provision of this 2.66, natural gas
production from any lease owned by a pipeline company or a pipeline
affiliate, regardless of the date of acquisition of the lease, shall be
priced for ratemaking purposes at the rates prescribed in 2.56a(a) of
this part if such production qualifies under the provisions set forth in
2.56a(a) of this part. The provisions of paragraph (f) of this section
(18 CFR 2.56(f)) shall apply to natural gas production which qualifies
for the national rate treatment pursuant to this paragraph (c).
(d) National rate for pipeline or pipeline affiliate production from
wells commenced prior to January 1, 1973. Notwithstanding any other
provision of this 2.66, natural gas production from a lease owned by a
pipeline company or a pipeline affiliate may be priced for ratemaking
purposes at the rate prescribed in 2.56B(a)(1) of this part if such
production qualifies under the provisions set forth in 2.56B(a)(2) of
this part, if such lease was acquired after October 7, 1969.
(e) Inapplicability to certain gas produced on or after December 1,
1978. This section does not apply to natural gas produced on or after
December 1, 1978. As to that gas, 154.42 is applicable.
(Natural Gas Act, 4, 5, and 8; 15 U.S.C. 717c, 717d, 717g (1982))
(34 FR 17804, Nov. 15, 1969, as amended at 35 FR 1104, Jan. 28, 1970;
Opinion 749-A, 41 FR 9867, Mar. 8, 1976; Opinion 770-A, 41 FR 50233,
Nov. 15, 1976; Order 98, 45 FR 53098, Aug. 11, 1980; Order 391, 49 FR
33858, Aug. 27, 1984)
18 CFR 2.67 Calculation of taxes for property of pipeline companies
constructed or acquired after January 1, 1970.
Pursuant to the provisions of section 441(a)(4)(A) of the Tax Reform
Act of 1969, 83 Stat. 487, 625, natural gas pipeline companies which
have exercised the option provided by that section to change from flow
through accounting will be permitted by the Commission, with respect to
liberalized depreciation, to employ a normalization method for computing
Federal income taxes in their accounts and annual reports with respect
to property constructed or acquired after January 1, 1970, to the extent
to which such property increases the productive or operational capacity
of the utility and is not a replacement of existing capacity. Such
normalization will also be permitted for ratemaking purposes. As to
balances in Account No. 282 of the Uniform System of Accounts,
''Accumulated deferred income taxes -- Other property,'' it will remain
the Commission's policy to deduct such balances from the rate base of
natural gas pipeline companies in rate proceedings.
(Secs. 3, 4, 5, 8, 9, 10, 15, 16, 301, 304, 308, and 309 (41 Stat.
1063-1066, 1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856,
858-859; 52 Stat. 822, 823, 825, 826; 76 Stat. 72; 82 Stat. 617; 16
U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c, 825g, 825h, 826i);
as amended, secs. 8, 10, and 16 (52 Stat. 825-826, 830; 15 U.S.C.
717c, 717d, 717g, 717h, 717i, 717o))
(Order 404, 35 FR 7964, May 23, 1970, as amended by Order 567, 42 FR
30612, June 16, 1977)
18 CFR 2.69 Guidelines to be followed by natural gas pipeline companies
in the planning, locating, clearing and maintenance of rights-of-way and
the construction of aboveground facilities.
(a) In the interest of preserving scenic, historic, wildlife and
recreational values, the construction and maintenance of facilities
authorized by certificates granted under section 7(c) of the Natural Gas
Act should be undertaken in a manner that will minimize adverse effects
on these values. Accordingly, the Commission believes that the
planning, locating, clearing and maintenance of rights-of-way and the
construction of aboveground facilities should, as a general practice,
conform to the guidelines set forth below. The National Environmental
Policy Act of 1969, Pub. L. 91-190, 83 Stat. 852, title I, section 102
thereof, directs agencies of the Federal Government to utilize a
systematic, interdisciplinary approach which will insure integrated use
of the natural and social sciences and the environmental design arts in
planning and in decision-making which may have an impact on man's
environment. Congress has declared as a national policy the critical
importance of restoring and maintaining environmental quality and
directed that all practicable means be used to create and maintain
conditions under which man and nature can exist in productive harmony,
and fulfill the social and economic requirements of present and future
generations of Americans. There is increasing need to fit the
construction of pipeline facilities into an overall plan for land
development and use in Federal, State, and regional land use planning
and development. While these guidelines would require greater advance
planning and earlier filing of applications than has been the past
practice, it is clear that such earlier planning and filing would
generally result in minimizing the time delay caused by considering
location as part of an overall plan for land development and use. To
the extent landowners may have special interests concerning the
planning, locating, clearing and maintenance of rights-of-way and the
construction of aboveground facilities on their property, those desires
may be taken into account by natural gas companies so long as the result
is consistent with local laws relating to land use. These guidelines do
not affect an applicant's obligation to comply with the applicable
safety regulations of the Department of Transportation, pursuant to the
Natural Gas Pipeline Safety Act of 1968.
(1) Pipeline construction. (i) In locating proposed facilities,
consideration should be given to the utilization, enlargement or
extension of existing rights-of-way belonging to either applicant or
others, such as pipelines, electric powerlines, highways, and railroads.
(ii) Where practical, rights-of-way should avoid the national
historic places listed in the National Register of Historic Places and
natural landmarks listed in the National Register of Natural Landmarks
maintained by the Secretary of the Interior, and parks, scenic,
wildlife, and recreational lands, officially designated by duly
constituted public authorities. If rights-of-way must be routed through
such historic places, parks, wildlife, or scenic areas, they should be
located in areas or placed in a manner so as to be least visible from
areas of public view and so far as possible in a manner designed to
preserve the character of the area.
(iii) Rights-of-way should avoid heavily timbered areas and steep
slopes, where practical.
(iv) Right-of-way clearings should be kept to the minimum necessary
width to prevent interference of trees or other vegetation with the
construction of proposed transmission facilities.
(v) The method of clearing rights-of-way should take into account
matters of soil stability, protection of natural vegetation and the
protection of adjacent resources.
(vi) Trees and other vegetation cleared from rights-of-way in areas
of public view should be disposed of without undue delay. In all phases
of construction, including burning of debris, such measures shall be
taken for the prevention and control of fire and other hazards as are
required by applicable law and regulations. Tree stumps which are
adjacent to roads and other areas of public view should be cut close to
the ground or removed.
(vii) Trees and shrubs which are not cleared should not be
unnecessarily damaged during construction.
(viii) Efforts should be made to avoid clearance of rights-of-way to
the mineral soil, except in the ditch itself. Where this does occur in
scattered areas of the rights-of-way, the surface should be restored and
stabilized without undue delay.
(ix) Soil which has been excavated during construction and not used
should be evenly filled back onto the cleared area or removed from the
site. The soil should be graded to comport with terrain of the adjacent
land and vegetation planted and fertilized, where appropriate.
(x) Terraces and other erosion control devices should be constructed
where necessary to prevent soil erosion on slopes on which rights-of-way
are located.
(xi) Where rights-of-way cross streams and other bodies of water, the
banks should be stabilized to prevent erosion. Construction on
rights-of-way should be conducted in such manner as to keep to a minimum
damage to shorelines, recreational areas and fish and wildlife habitats.
(xii) Replacement of earth adjacent to water crossings should be at
slopes equal to or less than the normal angle of response for the soil
type involved and sandbagging, seeding, or other methods of soil
stabilization should be accomplished without undue delay.
(xiii) Blasting should not be done within or near stream channels
without prior consultation with Federal and State conservation
authorities having jurisdiction to determine what protective measures
should be taken to minimize damage to fish and other aquatic life.
(xiv) Any potholes, marshes or similar water areas drained to
facilitate construction should be reestablished to their preconstruction
water levels and flow characteristics following completion of
construction, if such reestablishment is consistent with landowner
wishes.
(xv) Cofferdam or other diversionary techniques to lay pipe across
streams should be used where necessary and practical to permit flow in
one part of the stream while construction work is being performed in
another part.
(xvi) Care should be taken to avoid oil spills and other types of
pollution while work is performed in streams and other bodies of water
and in their immediate drainage areas.
(xvii) Water used for pipeline testing taken from streams or other
bodies of water should be taken in such manner as to minimize harm to
the ecology, fish and wildlife resources, or aesthetic values of the
areas. When testing water is released, it should be done in such a
manner as not to cause erosion and siltation or damage to the ecology of
the area.
(xviii) Excess construction materials and other debris should be
removed from the right-of-way or otherwise suitably disposed of.
(xix) In wooded areas long views of cleared rights-of-way, visible
from highways and other areas of public view, should be avoided. The
rights-of-way alignment of these locations should be deflected before
entering and leaving highways and areas of public view where such
deflection is consistent with safe and sound engineering practice and
accomplishes the desired results.
(xx) Where practical, rights-of-way should not cross hills and other
high points at the crests, particularly where such crossing is in
forested areas and clearly visible from highways and other areas of
public view. When they must do so the alignment should be deflected
near the crests where such deflection is consistent with safe and sound
engineering practice and accomplishes the desired result of eliminating
the notch in the tree line at the crests.
(xxi) Where rights-of-way enter dense timber from a meadow or other
clearing and where such entrance is visible from highways and other
areas of public view, screen planting should be employed.
(xxii) Temporary roads used for construction should be designed for
proper drainage and built in such manner as to minimize soil erosion.
Upon abandonment, such roads should be stabilized without undue delay.
(2) Right-of-way maintenance. (i) Once a cover of vegetation has
been established on a right-of-way, it should be properly maintained.
(ii) Access roads and service roads should be maintained with proper
cover, water bars and the proper slope in order to minimize soil
erosion. They should be jointly used with other utilities and land
management agencies where practical.
(iii) When chemicals are used for weed control, they should be
applied at such time and in such manner as to minimize the impact of
temporary discoloration of the foliage. Care should be taken to assure
that chemicals used to control the growth of tree stumps do not damage
the vegetation or add to water or soil pollution.
(iv) During inspection of rights-of-way attention should be given to
locate gullies and fallen timber and to observe the condition of the
vegetation. The use of aircraft to inspect and maintain rights-of-way
should be encouraged.
(3) Construction of aboveground appurtenant facilities. (i) The
proposed exterior plans and location of compressor stations and other
aboveground facilities, including meter and regulator stations and
communication towers, should be made appropriately available to local
agencies which have jurisdiction.
(ii) Unobstrusive sites should be selected where practical for the
location of aboveground facilities.
(iii) Potential noise should be considered when the location for
compressor stations is being determined. Such facilities should be
located in areas where sound resonation would be minimal; consideration
should be given to the use of accoustical treatment as a further means
of noise abatement.
(iv) The size of aboveground facilities should be kept to the minimum
feasible.
(v) The exterior of compressor stations and other aboveground
facilities, to the extent consistent with the functional needs and
economic feasibility of construction of such facilities, should not
unduly detract from the surroundings and other buildings in the area.
(vi) In areas adjacent to such aboveground facilities, trees and
shrubs should be planted, or other appropriate landscaping installed, in
order to enhance the appearance of such facilities, consistent with
operating needs.
(vii) Storage tanks should be placed below ground where technology
and economics make it feasible.
(viii) Yards and surrounding areas should be kept clean and free of
unused or discarded materials.
(ix) The design and operation of aboveground facilities should
conform to applicable air and water quality standards.
(Secs. 7(c), 7(e), 52 Stat. 825, 56 Stat. 83, 84; 15 U.S.C. 717(c),
717f(e); Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 407, 35 FR 11389, July 16, 1970)
Effective Date Note: At 56 FR 52381, Oct. 18, 1991, 2.69 was
removed, effective November 19, 1991. At 56 FR 58845, Nov. 22, 1991,
the effective date was delayed until further notice. A document will be
published in the Federal Register establishing the new effective date.
18 CFR 2.70 Measures for the protection of reliable and adequate
natural gas service.
(a) This Commission, charged with the responsibility for natural gas
reliability, hereby promulgates as a statement of general policy that
jurisdictional pipeline companies shall take all steps necessary for the
protection of as reliable and adequate service as present supplies and
capacities will permit during the 1971-72 heating season and thereafter,
including adequate injection into storage in anticipation of the heating
season.
(b) In order to effectuate the foregoing:
(1) During the storage injection season all natural gas pipelines
subject to the jurisdiction of the Commission should make every
reasonable effort to fill all storage fields supplied by such pipelines
to a capacity sufficient to meet the anticipated heating season demands.
(2)(i) All jurisdictional pipelines will within 30 days hereof,
submit a written report (four copies) to the Secretary of the Commission
indicating how the instant statement of policy will be implemented.
Pipelines responding that curtailment will be necessary will file a
tariff sheet, pursuant to sections 4 and 5 of the Natural Gas Act and
the Commission's regulations thereunder, setting forth a curtailment
plan to effectuate the instant policy or state that the curtailment
program, if any, currently on file will effectuate this policy. The
curtailment plan proposed may be divided between the injection season
and the heating season, since different objectives may require different
treatment.
(ii) Consideration should be given to the curtailment of volumes
equivalent to all interruptible sales and to the curtailment of large
boiler fuel sales where alternate fuels are available.
(3) The Commission, recognizing that additional short-term purchases
of natural gas may be necessary to meet a pipeline's system demands for
the immediate future, will continue the sixty (60) day emergency sales
commenced under 157.29 (18 CFR 157.29) pursuant to the certification
provisions of this subsection. If a pipeline demonstrates continued
emergency need, after complying with paragraphs (b) (1) and (2) of this
section, the Commission will consider authorizing the pipeline to make
gas purchases for a limited term at a rate above the national rate level
prescribed in 2.56(h) (18 CFR 2.56(h)) and will authorize abandonment
of the sale at the time the certificate is issued if the same is
demonstrated to be in the public interest: Provided, however, The
certification authority set forth in this section shall apply to sales
of natural gas from the offshore Federal domain only where the sales are
made at the rate prescribed in 2.56(h).
(4) Where emergency gas purchases are made and/or a curtailment
program is instituted to implement the above policy the pipeline should
place, or already have in effect, volumetric limitations on sales at
current levels.
(5) Notice should be taken that the Commission will reexamine
existing commodity rate levels and, to the extent necessary, may
redesign existing commodity-demand rate relationships in present and
future pipeline rate cases.
(6) Pipelines who can do so are encouraged to propose exchange
arrangements with other pipelines.
(7) Jurisdictional pipelines have the responsibility in the first
instance to adopt a curtailment program by filing appropriate tariffs.
Such tariffs, if approved by the Commission, will control in all
respects notwithstanding inconsistent provisions in sales contracts,
jurisdictional and nonjurisdictional, entered into prior to the date of
the approval of the tariff.
(c) Nothing stated herein should be construed as placing a limitation
on measures to be taken by jurisdictional pipelines to effectuate the
instant policy.
(Secs. 4, 5, 7, 8, 10, 16; 52 Stat. 83, 85; 15 U.S.C. 717c, 717d,
717f, 717g, 717i, 717o)
(Order 431, 36 FR 7505, Apr. 21, 1971, as amended by Opinion 699-B,
39 FR 33206, Sept. 16, 1974)
2.71 (Reserved)
18 CFR 2.72 Availability in contested cases of information acquired by
staff investigation.
Pursuant to the Commission's authority under the Natural Gas Act,
particularly subsection (b) of section 8 thereof, upon request by a
party to the proceedings, or as required in conjunction with the
presentation of a Commission staff case or staff's cross-examination of
any other presentation therein, all relevant information acquired by
Commission staff, including workpapers pursuant to any staff
investigation conducted under sections 8, 10, or 14 of the Natural Gas
Act shall, without further order of the Commission, be free from the
restraints of said subsection (b) of section 8 regarding the divulgence
of information, with respect to any matter hereafter set for formal
hearing.
(Subsec. (b), sec. 8, 52 Stat. 825, 15 U.S.C. 717g; sec. 16, 52
Stat. 830, 15 U.S.C. 717o)
(Order 509-A, 39 FR 31631, Aug. 30, 1974)
18 CFR 2.75 Optional procedure for certificating new producer sales of
natural gas.
(a) Notwithstanding any other provisions in the general rules of
practice and procedure of the Federal Power Commission, or the
regulations under the Natural Gas Act of the Federal Power Commission,
applications for certification of future sales of natural gas produced
within the United States may, at the option of the signatory parties to
sales contracts, be submitted in accordance with the provisions of this
section. To the extent that any Federal Power Commission general rules
of practice and procedure or regulations under the Natural Gas Act are
inconsistent herewith, the same are hereby amended to permit the
optional procedure herein set forth.
(b) The provisions of this section shall be available if each of the
following conditions exists:
(1) A contract covering the sale of natural gas in interstate
commerce has been executed for gas produced from a well or wells
commenced after April 6, 1972; or a contract covering the sale of
natural gas in interstate commerce has been executed for gas not
previously sold in interstate commerce except under the provisions of
Orders 402, 418, or 431 issued May 6, and December 10, 1970, April 15,
1971, respectively.
(2) All parties whose gas is to be sold under the terms and
conditions of such contract, except for the royalty interest therein,
must agree to the submission of the same for certification in accord
with the provision of this section.
(3) The purchaser under such contract is a jurisdictional pipeline.
(4) The seller under such contract established that he has
discharged, or is prepared by plan or program to discharge, refund
obligations in the geographical pricing area in which the seller would
commit gas under such contract, prescribed by prior orders or opinion of
this Commission. It is provided, however, that any such seller may make
the showing here required without prejudice to his claim in any case now
pending on judicial review that such obligations were unlawfully imposed
by the Commission.
(5) The gas covered by the contract offered for certification is
produced from a well or wells commenced on or after April 6, 1972; or
the gas offered for certification has not been previously sold in the
interstate market (unless abandonment has been previously granted or a
sale was made under Orders 402, 418, or 431), nor has an application
been previously filed with the Commission for certification of the sale
of such gas, except for an emergency sale under Orders 402, 418, or 431.
(c) If all of foregoing conditions precedent exist, the parties to
the contract may tender the same to the Commission and request the
issuance of a certificate of public convenience and necessity to the
seller for sales of natural gas thereunder. Each party to the
application shall certify to his portion that all parties to the
contract, except those having a royalty interest only, desire
certification in accordance with the terms and provisions of this
section, that the seller expressly agrees to the waivers and elections
hereinafter provided for in paragraphs (m) and (o) of this section, and
that all conditions precedent as set forth in paragraph (b) of this
section are met.
(d) A certificate of public convenience and necessity issued and
accepted under this section shall not be subject to change by
determinations or orders whether heretofore made or hereafter to be made
in producer or pipeline rate proceedings initiated under section 4 of
the Act, and orders issued hereunder shall not constitute establishment
of an area or nationwide rate: Provided, however, That nothing herein
shall limit the applicability of section 5 of the Natural Gas Act.
Nothing done hereunder shall be recognized by the Commission as
triggering any existing contract escalation clauses.
(e) Applications presented hereunder will be considered for permanent
certification, either with or without pregranted abandonment,
notwithstanding that the contract rate may be in excess of an area
ceiling rate established in a prior opinion or order of this Commission.
(f) No contract shall be accepted for filing if it includes any type
of indefinite pricing clause except B.t.u. price adjustment clauses,
clauses to reflect changes in State production taxes, and clauses
allowing for the recovery of compression and dehydration charges.
Indefinite pricing clauses shall include, but are not limited to area
rate or FPC clauses, a price redetermination or renegotiation clause, or
a special escalation clause.
(g) A seller-applicant under this section shall state the ground for
claiming that the present or future public convenience and necessity
require issuance of a certificate on the terms proposed in the
application, and shall provide factual support for such claims. The
application shall contain a contract summary as prescribed in 250.5 of
this title under the Natural Gas Act.
(h) The purchaser under a contract filed under this section shall
certify that the present or future public convenience and necessity
require issuance of a certificate to the seller, and shall provide
information in support of such certification with respect to the
purchaser's (1) system-wide supply, (2) present and estimated 3-year
peak day and average day demands, (3) present and estimated 3-year
requirements of customers on its system, (4) deliverability life, (5)
implementation, if any of curtailment plans, (6) emergency purchases of
gas under Order 431, or 157.22 or 157.29 of these regulations, and (7)
purchases of LNG or attachment of other supplemental supplies.
(i) The information required by paragraphs (g) and (h) of this
section may be submitted by cross-reference and incorporation of
information already on file with the Commission.
(j) Applications requesting issuance of certificates of public
convenience and necessity as authorized in this section shall be
processed in accordance with the procedural requirements, including
those relating to notice, intervention, and hearing, set out in part 157
of this chapter of the Commission's regulations under the Natural Gas
Act.
(k) Pursuant to the authority contained in and subject to the
jurisdiction conferred upon the Federal Power Commission by sections 7
and 15 of the Natural Gas Act and the Commission's rules of practice and
procedure, a statutory hearing will be held before the Commission
without further notice on all applications for certificates under this
section in which no petition to intervene in opposition is filed within
the time required, if the Commission on its own review of the matter
believes that a grant of a certificate is required by the public
convenience and necessity. Where the Commission believes that a formal
hearing is required notice of such hearing will be duly given.
(l) A final order of this Commission, issuing a certificate as
applied for, or issuing a conditioned certificate acceptable to the
applicants, shall constitute a final determination that the rates,
charges, and services therein specified are just, reasonable, and
required by the present and future public convenience and necessity.
(m) By acceptance of a certificate issued hereunder, the
seller-applicant unconditionally agrees to (1) waive all rights to seek
future rate increases under section 4 of the Natural Gas Act with
respect to the contract submitted, other than price escalations, if any,
as certificated by the Commission; and (2) waive all rights to
contingent adjustment of flowing gas rates as provided by the Commission
in area-rate decisions heretofore decided, for flowing gas which the
seller-applicant produces in the same geographical pricing area as the
pricing area of the production covered by the application made under
this section.
(n) Upon the filing of an application under this section, deliveries
pursuant to the provisions of the tendered contract may be commenced,
pending review of such application by the Commission. Notice of
commencement of deliveries shall be given to the Commission within 10
days after deliveries first commence, and shall include all pertinent
information concerning the deliveries. Any such deliveries so commenced
may be terminated (1) if such contract for any reason shall terminate or
be terminated prior to the issuance by the Commission of a final order
upon review of such application, or (2) upon the issuance of a
certificate containing conditions unacceptable to the party adversely
affected. If the Commission by final order shall deny such application,
or if the party or parties to the contract adversely affected shall not
accept the terms and conditions prescribed by the Commission, deliveries
thereunder shall be terminated. Within 30 days after termination of
deliveries, the seller shall notify the Commission of such termination,
and shall report the date of termination, volumes delivered, and
revenues received.
(o)(1) If the parties elect to commence deliveries as set forth in
paragraph (n) of this section, such deliveries will be made at rates no
higher than the prevailing nationwide ceiling rate and shall so continue
for 9 months.
(2) If the Commission determines that it will not be able before the
expiration of the 9-month period to issue its final order, it may issue
an order extending the 9-month period until such final order is issued.
Deliveries during the period of the extension will continue to be made
at rates no higher than the prevailing nationwide rate.
(3) If the final Commission order establishes a just and reasonable
rate in excess of the prevailing nationwide rate which was charged
during the period of any extension under paragraph (o)(2) of this
section, the applicant may recoup by means of a surcharge the excess of
(i) the amount which would have been collected had such just and
reasonable rate been in effect during such period over (ii) the amount
actually collected during such period, plus interest on such excess.
The surcharge shall be collected over such period and in such manner as
the Commission prescribes in its final order.
(4) If the Commission does not extend the 9-month period in the
accordance with paragraph (o)(2) of this section, then at the end of
such 9-month period (if the Commission has not made its final order),
the seller upon the filing of a notice of change in rate pursuant to
154.94 of this chapter of the Commission's regulations shall be entitled
to receive without refund obligation and the purchaser shall be entitled
to pay, the rates specified in the contract initially filed, and such
contract rates shall continue as the effective rates until the
Commission enters its final order on the certificate application.
(p) No application can be filed under this section after May 8, 1984.
(Secs. 4, 5, 7, 16; 52 Stat. 822, 823, 824, 825, 830; 56 Stat. 83,
84; 61 Stat. 459; 76 Stat. 72, 15 U.S.C. 717c, 717d, 717f, 717o)
(Order 455, 37 FR 16196, Aug. 11, 1972, as amended by Order 455-A, 37
FR 18723, Sept. 15, 1972; Order 455-B, 39 FR 41840, Dec. 3, 1974;
Order 455-C, 43 FR 23565, May 31, 1978; 49 FR 21913, May 23, 1984)
18 CFR 2.76 Regulatory treatment of payments made in lieu of
take-or-pay obligations.
With respect to payments made to a first seller of natural gas as
consideration for waiving or revising any agreement for the first sale
of natural gas, as defined by section (2)(21) of the Natural Gas Policy
Act (NGPA), the Commission sets forth the following statement of general
policy and interpretation of law.
(a) Payments in consideration. A first seller of natural gas that
receives payments as consideration for amending or waiving the
take-or-pay or similar minimum payment provisions of a contract for the
first sale of natural gas is not in violation of section 504(a) of the
NGPA.
(b) Recovery in rates. A pipeline that makes any payments referred
to under paragraph (a) of this section, to first sellers may file to
recover such costs in any section 4(e) rate filing other than a filing
to recover purchased gas costs.
(c) Case-specific review. A pipeline's method of recovering these
costs and how it should apportion them among customers will be addressed
on a case-by-case basis in the context of individual rate case filings.
(d) Customers' rights. When a pipeline seeks to recover payments
referred to under paragraph (a) of this section, its customers will have
the full opportunity contemplated by section 4 of the Natural Gas Act to
raise questions as to the prudence of such payments, the apportionment
of costs among customers proposed by the filing pipeline, and any other
reasonably related matters.
(e) Certificate amendments and abandonment. With regard to natural
gas the sale of which is subject to the Commission's jurisdiction under
the Natural Gas Act, if any payments referred to under paragraph (a) of
this section are accompanied by a change in or a termination of, the
first seller's contractual obligation to provide natural gas service,
the Commission will, as a general policy under sections 7(c) and 7(b) of
the Natural Gas Act, expeditiously grant any certificate amendments or
abandonment authorizations, required to effectuate such contractual or
service modifications.
In cases where a producer abandonment application is based on
payments made pursuant to this policy statement, the interstate pipeline
making the payments will be deemed to have waived any right to oppose
the abandonment.
(50 FR 16080, Apr. 24, 1985, as amended by Order 436, 50 FR 42487,
Oct. 18, 1985)
18 CFR 2.77 Policy on expedited producer abandonment.
(a) Situations in which expedited producer abandonment will be
appropriate. Abandonment, including partial or temporary abandonments,
of service by a producer will be reviewed on an expedited case-by-case
basis and will be granted where permitted by the public convenience and
necessity, in cases where:
(1) The producer is subject to substantially reduced takes without
payment; or
(2) The parties have entered into a take-or-pay buy-out pursuant to
2.76.
(b) Procedures. (1) Applications will be noticed promptly and a
period not to exceed 15 days after publication of the notice in the
Federal Register will be provided for comments or interventions.
(2) In cases where the applications are unopposed, as a matter of
policy they will be promptly granted by the Director, Office of Pipeline
and Producer Regulation, pursuant to delegation of authority contained
in 18 CFR 375.307 (1985).
(3) In cases where certificate or abandonment applications are
opposed, the Commission will consider the objections and rule on the
applications if possible or, if necessary will set the applications for
expedited hearing. The Commission will require that initial decisions
be issued not more than 60 days following the close of the record and
will endeavor to issue a final decision within 60 days following
issuance of the initial decision.
(4) Parties requesting expedited consideration under these procedures
should include in their application a request for expedition and a
reference to Docket No. RM85-1-000.
(Order 436, 50 FR 42487, Oct. 18, 1985, as amended at 50 FR 52274,
Dec. 23, 1985)
18 CFR 2.78 Utilization and conservation of natural resources --
natural gas.
(a)(1) The national interests in the development and utilization of
natural gas resources throughout the United States will be served by
recognition and implementation of the following priority-of-service
categories for use during periods of curtailed deliveries by
jurisdictional pipeline companies:
(i) Residential, small commercial (less than 50 Mcf on a peak day).
(ii) Large commercial requirements (50 Mcf or more on a peak day),
firm industrial requirements for plant protection, feedstock and process
needs, and pipeline customer storage injection requirements.
(iii) All industrial requirements not specified in paragraph
(a)(1)(ii), (iv), (v), (vi), (vii), (viii), or (ix) of this section.
(iv) Firm industrial requirements for boiler fuel use at less than
3,000 Mcf per day, but more than 1,500 Mcf per day, where alternate fuel
capabilities can meet such requirements.
(v) Firm industrial requirements for large volume (3,000 Mcf or more
per day) boiler fuel use where alternate fuel capabilities can meet such
requirements.
(vi) Interruptible requirements of more than 300 Mcf per day, but
less than 1,500 Mcf per day, where alternate fuel capabilities can meet
such requirements.
(vii) Interruptible requirements of intermediate volumes (from 1,500
Mcf per day through 3,000 Mcf per day), where alternate fuel
capabilities can meet such requirements.
(viii) Interruptible requirements of more than 3,000 Mcf per day, but
less than 10,000 Mcf per day, where alternate fuel capabilities can meet
such requirements.
(ix) Interruptible requirements of more than 10,000 Mcf per day,
where alternate fuel capabilities can meet such requirements.
(2) The priorities-of-deliveries set forth above will be applied to
the deliveries of all jurisdictional pipeline companies during periods
of curtailment on each company's system; except, however, that, upon a
finding of extraordinary circumstances after hearing initiated by a
petition filed under 385.207 of this chapter, exceptions to those
priorities may be permitted.
(3) The above list of priorities requires the full curtailment of the
lower priority category volumes to be accomplished before curtailment of
any higher priority volumes is commenced. Additionally, the above list
requires both the direct and indirect customers of the pipeline that use
gas for similar purposes to be placed in the same category of priority.
(4) The tariffs filed with this Commission should contain provisions
that will reflect sufficient flexibility to permit pipeline companies to
respond to emergency situations (including environmental emergencies)
during periods of curtailment where supplemental deliveries are required
to forestall irreparable injury to life or property.
(b) Request for relief from curtailment shall be filed under
385.1501 of this chapter. Those petitions shall use the priorities set
forth in (paragraph (a)(1) of this section) above, the definitions
contained in paragraph (b)(3) of this section and shall contain the
following minimal information:
(1) The specific amount of natural gas deliveries requested on peak
day and monthly basis, and the type of contract under which the
deliveries would be made.
(2) The estimated duration of the relief requested.
(3) A breakdown of all natural gas requirements on peak day and
monthly bases at the plantsite by specific end-uses.
(4) The specific end-uses to which the natural gas requested will be
utilized and should also reflect the scheduling within each particular
end-use with and without the relief requested.
(5) The estimated peak day and monthly volumes of natural gas which
would be available with and without the relief requested from all
sources of supply for the period specified in the request.
(6) A description of existing alternate fuel capabilities on peak day
and monthly bases broken down by end-uses as shown in paragraph (b)(3)
of this section.
(7) For the alternate fuels shown in paragraph (b)(5) of this
section, provide a description of the existing storage facilities and
the amount of present fuel inventory, names and addresses of existing
alternate fuel suppliers, and anticipated delivery schedules for the
period for which relief is sought.
(8) The current price per million Btu for natural gas supplies and
alternate fuels supplies.
(9) A description of efforts to secure natural gas and alternate
fuels, including documentation of contacts with the Federal Energy
Office and any state or local fuel allocation agencies or public utility
commission.
(10) A description of all fuel conservation activities undertaken in
the facility for which relief is sought.
(11) If petitioner is a local natural gas distributor, a description
of the currently effective curtailment program and details regarding any
flexibility which may be available by effectuating additional
curtailment to its existing industrial customers. The distributor
should also provide a breakdown of the estimated disposition of its
natural gas estimated to be available by end-use priorities established
in paragraph (a)(1) of this section for the period for which relief is
sought.
(c) When used in paragraphs (a) and (b) of this section, the
following terms will be defined as follows:
(1) Residential. Service to customers which consists of direct
natural gas usage in a residential dwelling for space heating, air
conditioning, cooking, water heating, and other residential uses.
(2) Commercial. Service to customers engaged primarily in the sale
of goods or services including institutions and local, state, and
federal government agencies for uses other than those involving
manufacturing or electric power generation.
(3) Industrial. Service to customers engaged primarily in a process
which creates or changes raw or unfinished materials into another form
or product including the generation of electric power.
(4) Firm service. Service from schedules or contracts under which
seller is expressly obligated to deliver specific volumes within a given
time period and which anticipates no interruptions, but which may permit
unexpected interruption in case the supply to higher priority customers
is threatened.
(5) Interruptible service. Service from schedules or contracts under
which seller is not expressly obligated to deliver specific volumes
within a given time period, and which anticipates and permits
interruption on short notice, or service under schedules or contracts
which expressly or impliedly require installation of alternate fuel
capability.
(6) Plant protection gas. Is defined as minimum volumes required to
prevent physical harm to the plant facilities or danger to plant
personnel when such protection cannot be afforded through the use of an
alternate fuel. This includes the protection of such material in
process as would otherwise be destroyed, but shall not include
deliveries required to maintain plant production. For the purposes of
this definition propane and other gaseous fuels shall not be considered
alternate fuels.
(7) Feedstock gas. Is defined as natural gas used as raw material
for its chemical properties in creating an end product.
(8) Process gas. Is defined as gas use for which alternate fuels are
not technically feasible such as in applications requiring precise
temperature controls and precise flame characteristics. For the
purposes of this definition propane and other gaseous fuels shall not be
considered alternate fuels.
(9) Boiler fuel. Is considered to be natural gas used as a fuel for
the generation of steam or electricity, including the utilization of gas
turbines for the generation of electricity.
(10) Alternate fuel capabilities. Is defined as a situation where an
alternate fuel could have been utilized whether or not the facilities
for such use have actually been installed; Provided, however, Where the
use of natural gas is for plant protection, feedstock, or process uses
and the only alternate fuel is propane or other gaseous fuel then the
consumer will be treated as if he had no alternate fuel capability.
(Sec. 4, 52 Stat. 822, 76 Stat. 72 (15 U.S.C. 717c); Sec. 5, 52
Stat. 823 (15 U.S.C. 717d); Sec. 7, 52 Stat. 824, 825, 56 Stat. 83, 84,
61 Stat. 459 (15 U.S.C. 717f); Sec. 10, 52 Stat. 826 (15 U.S.C. 717i);
Sec. 14, 52 Stat. 820 (15 U.S.C. 717m); Sec. 15, 52 Stat. 829 (15
U.S.C. 717n); Sec. 16, 52 Stat. 930 (15 U.S.C. 717o); Pub. L. 96-511,
94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 467A, 38 FR 2171, Jan. 22, 1973, as amended by Order 467B, 38
FR 6386, Mar. 9, 1973; Order 493-A, 38 FR 30433, Nov. 5, 1973; Order
467-C, 39 FR 12984, Apr. 10, 1974; Order 225, 47 FR 19055, May 3, 1982)
18 CFR 2.79 Policy with respect to certification of pipeline
transportation agreements.
(a) The national interest in the protection of natural gas service to
consumers who use natural gas for high priority end uses during periods
of curtailed deliveries by jurisdictional pipeline companies will be
served by the Commission's accepting for filing and approving, if
required by the present or future public convenience and necessity,
applications for certificates of public convenience and necessity filed
by natural gas companies to transport gas sold by producers of natural
gas from both the on-shore domain (both federal and non-federal) and/or
the off-shore non-federal domain directly to non-resale industrial and
commercial customers for Priority 2 uses or for those Priority 3 uses
that would otherwise have been in Priority 2 had the gas been purchased
on a firm basis.
(b) As used in this section, the term natural gas company is used to
refer to any person engaged in, or who proposes to engage in, the
transportation of natural gas in interstate commerce subject to the
jurisdiction of the Commission under section 1(b) of the Natural Gas Act
and which has available unused capacity to transport such natural gas.
(c) As used in paragraph (a) of this section, Priorities 2 and 3 uses
refer to the uses covered by Priorities 2 and 3 as set forth in 2.78 of
the Commission's General Policy and Interpretations, 2.78(a) for which
there exists no alternate fuel capabilities, as defined in 2.78(c)(10).
(d) This policy is not intended to apply to gas which is already
committed to jurisdictional pipelines under an advance payment plan, or
to gas sold by an affiliate of a jurisdictional pipeline, or to gas sold
by a producing division of a jurisdictional pipeline.
(e) This policy is intended to apply only to those existing
industrial and commercial consumers whose deliveries for the high
priority uses specified in paragraph (a) of this section are curtailed
because of curtailments by their jurisdictional pipeline supplier, or
whose deliveries for such high priority uses are subject to imminent
curtailment because of curtailments by their jurisdictional supplier,
when no other reasonable method of averting an emergency exists;
Provided, That, unless authorized to the contrary pursuant to paragraph
(f) of this section, the volume which is transported shall be the lesser
of existing contract quantities, or existing requirements, for high
priority uses described in paragraph (a) of this section; Provided
further, That the gas which is transported shall not be used directly or
indirectly to supply uses other than the high priority uses specified in
paragraph (a) of this section; Provided further, That the gas may be
used during an authorized six month extension of the transportation
authorization.
(f) In those cases in which arrangements cannot be made to vary the
volumes of gas transported as the level of curtailment of gas used for
the high priority purposes specified in paragraph (a) of this section
fluctuates, it will be our policy to issue transportation certificates
upon the condition that the non-resale industrial or commercial consumer
agree to reduce the volumes he would receive under the curtailment plan
of his existing natural gas supplier(s) for the high priority uses
specified in paragraph (a) of this section to the extent that the
volumes of gas transported under the transportation certificate exceeds
the volumes of curtailment experienced by that customer in the eligible
Priority 2 or 3 categories.
(g) All applications for a transportation certificate must be
accompanied by the fee prescribed in part 381 of this chapter or a
petition for waiver pursuant to 381.106 of this chapter, and the
following information in addition to any other information submitted in
support of the application:
(1) Interstate pipelines transporting gas pursuant to this policy
must file the information set forth in paragraphs (g)(1) (i) through
(vii) of this section. Intrastate pipelines transporting gas pursuant
to this policy may file either a joint application with the interstate
pipeline or an abbreviated application as provided in 157.7, including
the information set forth in paragraph (g)(1)(viii) of this section.
(i) Indicate volumes to be transported on a peak day, average day and
annual basis;
(ii) Indicate the pipeline capacity available to perform the
transport service on a peak day, average day and annual basis;
(iii) Indicate the impact of the proposed transport on the pipeline's
ability to provide systemwide deliveries for Priority 1 requirements;
(iv) Provide a copy of the proposed transportation agreement,
indicating the proposed transportation rate together with a breakdown
and justification of the proposed rate level. Include therein, a
comparison of existing transportation rates for comparable services;
(v) Provide a detailed explanation as to why the subject natural gas
supply was not secured as part of the pipeline's system gas supply;
(vi) Provide an analysis as to how the gas transported will modify
curtailments during the period of the proposed transport to the direct
industrial consumer and/or the distributor customers involved in the
transaction;
(vii) Indicate the distributor's capacity to perform the transport
service on a peak-day, average-day, and annual basis through the
distribution system to the non-resale high priority industrial or
commercial customer whose gas is being transported pursuant to this
policy statement.
(viii) Provide a general description of the facilities and specify
their location or include a map thereof; provide a statement concerning
their proposed rates and Schedules L, M and N of 154.63. For purposes
of this paragraph (g)(1)(viii), there is no requirement that omission of
other filing requirements be justified. For purposes of this paragraph
(g)(1)(viii), the following provisions are waived:
(A) 18 CFR part 154 -- Rate Schedules and Tariffs;
(B) 18 CFR 157.13 -- Form of exhibits to be attached to applications;
(C) 18 CFR 157.14 -- Exhibits;
(D) 18 CFR part 159 -- Fees and annual charges under the Natural Gas
Act;
(E) 18 CFR part 201 -- Uniform system of accounts for natural gas
companies; and
(F) 18 CFR part 260 -- Statements and reports (schedules).
(2) Non-resale industrial and commercial consumers whose gas is
transported pursuant to this policy must:
(i) Indicate volumes of natural gas to be purchased under the
proposed transport on a peak day and average day for each month of the
proposed transport period;
(ii) Indicate the proposed end-use of such consumption by end-use
priorities contained in 2.78(a) for each month;
(iii) Indicate the total end-use requirements for natural gas at the
plant location which the transport gas will be used;
(iv) Indicate the availability of other sources of natural gas at
this location. Specify daily contract volumes, type of contract and
anticipated availability of natural gas from each source for the
transport period and the end-use thereof;
(v) Provide a copy of the gas purchase contract with the producer
underlying the proposed transportation, including the Btu content of the
gas supply;
(vi) Provide a detailed description of the nature of the emergency
necessitating the authorization of the proposed transportation including
but not limited to the curtailment anticipated with respect to each
priority of end use at the plant.
(vii) Provide a sworn statement by the consumer, supported by
substantial evidence, that it has made a good faith effort to inquire
into alternate fuel capability and conversion potential and further that
it cannot develop such capability during the proposed use of 533
supplies;
(viii) Provide a complete description of the end use application and
the facility in which the gas will be utilized, e.g., size and type of
burner(s);
(ix) Provide a map showing the location of the wells and description
of the acreage involved, along with the location of the nearest
interstate and intrastate transportation facility;
(x) Provide available information as to whether or not gas has
previously been sold from the acreage, if so, to whom, through what
facilities and at what prices.
(xi) Provide available information as to:
(A) The ownership of adjoining acreage, and if productive,
information as to whom the gas is being sold, and at what price;
(B) The current price, terms, and conditions of intrastate purchases
for comparable gas produced within the immediate vicinity;
(C) Negotiations for the sale of the supply to any other purchaser
(intrastate or interstate) and the suggested price;
(xii) If an intermediary participates in the transaction between the
industrial customer and the producer and charges a fee, indicate the
amount of the fee and terms of payment and the intermediary's
affiliation, if any, with the producer and/or pipeline;
(xiii) If either the producer or the industrial customer assumes the
cost of the construction of any gathering facilities in order to
consummate the purchase, provide the cost, terms of payment, ownership
and date of construction of the facilities.
(3) The information required by paragraphs (g)(2)(i) through (xiii)
of this section may be supplied by the applicant for a transportation
certificate through submission of an appropriate affidavit from the
non-resale industrial and commercial consumer whose gas is transported
pursuant to this policy.
(h) It will be our policy to attach as a condition to any
transportation certificate we issue the following conditions:
(1) For each certificated transportation arrangement the delivering
natural gas companies shall submit a monthly report to the Commission
indicating the name of the producer, the volumes transported, the point
of delivery to the distributor and/or non-resale industrial or
commercial consumer, the name of the distributor and/or ultimate
non-resale industrial or commercial consumer. An original and four
copies of each such report shall be filed within 20 days after the end
of each month included in the term of the transportation certificate.
The delivering natural gas company shall submit a monthly report for any
month during which gas was not transported.
(2) Each non-resale industrial or commercial consumer must provide
the transporting natural gas company with a monthly report which shall
be transmitted by the natural gas company to the Commission as an
attachment to the report described in paragraph (h)(1) of this section.
The report required by this subsection must contain the amount of
natural gas consumed during the month covered by the report, the end-use
of such consumption according to the end-use priorities contained in
2.78, the amount of natural gas consumed from other sources during the
month, the end-use of the gas from those other sources together with a
list of those other sources.
(i) Any transportation certificate we issue pursuant to this
statement of policy will be limited to a maximum term of two years which
will cover two successive heating seasons.
(j) If an industrial consumer is unable to receive gas supplies for
which it has paid under the take-or-pay provision in the underlying
sales contract, the transporting pipelines may file a request for a
six-month extension of the certificate authorization. The request shall
include a statement of the undelivered volumes and the time necessary to
complete delivery thereof. Upon receipt of a letter from the Secretary
of the Commission acknowledging the filing, the requested extension
shall be deemed approved.
(k) Outstanding certificates. Any holder of a certificate issued
pursuant to this section may file a blanket application to amend the
certificates by replacing any end-use restrictions with limitations as
provided in paragraph (m) of this section.
(l) New certificates. (1) In any certificate issued pursuant to this
section after October 5, 1979, the Commission intends to incorporate the
limitations contained in paragraph (m) instead of a condition
incorporating paragraphs (e) and (f).
(2) Each certificate shall specify a maximum daily volume authorized
to be transported under the certificate issued pursuant to this section
which does not exceed the customer's requirements for uses specified in
paragraph (a) of this section.
(m) Volumetric and End-Use Restrictions -- (1) Inapplicability of
certain use and volumetric restrictions. Except as provided in
paragraph (m)(2), a certificate issued under this section to which this
paragraph applies:
(i) Does not limit the customer from purchasing any volumes of
natural gas from its suppliers which does not exceed its normal
entitlement, and
(ii) Does not impose any end-use restriction upon the natural gas
transported under the certificate.
(2) Volumetric limitations. The customer's aggregate supply volumes
may not exceed the greater of:
(i) The customers high priority requirements, or
(ii) The sum of:
(A) The customer's normal entitlement, plus
(B) The fuel oil displacement volume authorized to be delivered under
subpart F of part 284, plus
(C) The direct sale volumes authorized to be delivered under
certificates issued pursuant to subpart E of part 157.
(n) Definitions -- For the purpose of this section:
(1) Aggregate supply means the total volume of natural gas actually
received by a customer from all sources including system supplies,
direct sales, and the supplemental supplies of the local distribution
company.
(2) Normal entitlement means the volume of natural gas that the
consumer would have been entitled to receive from its supplier if the
consumer had not received natural gas under any certificate issued
pursuant to this section.
(3) High priority requirements means the aggregate volume of natural
gas requirements for any use:
(i) Specified in paragraph (a) of this section; or
(ii) Certified by the Secretary of Agriculture under 7 CFR 2900.3 as
an essential agricultural use pursuant to section 401(c) of the Natural
Gas Policy Act of 1978; or
(iii) By a person who uses natural gas in a hospital or school or
similar institution as defined in 281.103(a) (11) and (12) of this
chapter; or
(iv) Certified by the Secretary of Energy as an essential industrial
process or feedstock use pursuant to section 402(c) of the Natural Gas
Policy Act of 1978.
(4) Supplier means:
(i) An interstate pipeline in the case of a direct industrial
customer, or
(ii) A local distribution company in case of an indirect customer of
an interstate pipeline.
(o) Nothing in this 2.79 is intended to amend, modify, or in any way
change any existing rule or regulation.
(Secs. 7, 15, and 16 (52 Stat. 824, 825, 829, 930; 56 Stat. 83, 84;
61 Stat. 459; 15 U.S.C. 717f, 717n, and 717o); Pub. L. 96-511, 94
Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 533, 40 FR 41767, Sept. 9, 1975, as amended at 43 FR 5371 Feb.
8, 1978; 44 FR 60082, Oct. 18, 1979; Order 2-A, 46 FR 53653, Oct. 30,
1981; Order 433, 50 FR 40345, Oct. 3, 1985)
18 CFR 2.79 Statement of General Policy To Implement Procedures for
Compliance With the National Environmental Policy Act of 1969
Authority: Sections 2.80-2.82 issued under secs. 4, 10, 15, 307,
309, 311 and 312 (41 Stat. 1065, 1066, 1068, 1070; 46 Stat. 798, 49
Stat. 839, 840, 841, 842, 843, 844, 856, 857, 858, 859, 860, Stat. 501,
82 Stat. 617; 16 U.S.C. 797, 803, 808, 825f, 825h, 825j, 825k), and the
Natural Gas Act, particularly secs. 7 and 16 (52 Stat. 824, 825, 830,
56 Stat. 83, 84; 61 Stat. 459; 15 U.S.C. 717f, 717o), and the National
Environmental Policy Act of 1969, Pub. L. 91-190, approved January 1,
1970, particularly secs. 102 and 103 (83 Stat. 853, 854), unless
otherwise noted.
18 CFR 2.80 Detailed environmental statement.
(a) It will be the general policy of the Federal Energy Regulatory
Commission to adopt and to adhere to the objectives and aims of the
National Environmental Policy Act of 1969 (NEPA) in its regulations
promulgated for statutes under the jurisdiction of the Commission,
including the Federal Power Act, the Natural Gas Act and the Natural Gas
Policy Act. The National Environmental Policy Act of 1969 requires,
among other things, all Federal agencies to include a detailed
environmental statement in every recommendation or report on proposals
for legislation and other major Federal actions significantly affecting
the quality of the human environment.
(b) Therefore, in compliance with the National Environmental Policy
Act of 1969, the Commission staff will make a detailed environmental
statement when the regulatory action taken by the Commission under the
statutes under the jurisdiction of the Commission will have a
significant environmental impact. The specific regulations implementing
NEPA are contained in part 380 of the Commission's regulations.
(Order 486, 52 FR 47910, Dec. 17, 1987)
18 CFR 2.80 Statement of General Policy To Implement the Economic
Stabilization Act of 1970, as Amended, and Executive Orders 11615 and
11627
Authority: Sections 2.90 through 2.102 issued under 84 Stat. 799,
as amended, 85 Stat. 38, unless otherwise noted.
18 CFR 2.90 Implementation of Executive Order No. 11615.
18 CFR 2.90 Phase I (August 15, 1971-November 13, 1971)
(a)(1) It is the general policy of the Federal Power Commission to
implement the Economic Stabilization Act of 1970, as amended, and E.O.
No. 11615 (Attachment A)1005 concerning the stabilization of prices,
rents, wages, and salaries insofar as those laws pertain to the
Commission's regulatory jurisdiction under the Natural Gas Act (52 Stat.
821 et seq. as amended), the Federal Power Act (41 Stat. 1063 et seq. as
amended), and all other statutes vesting legal authority in this
Commission, including such regulations, definitions, orders, exceptions
and exemptions as may be hereinafter issued by the President or the Cost
of Living Council.
(2) Unless otherwise provided, this Phase I Statement of Policy (18
CFR 2.90, 36 FR 16902, August 26, 1971, as amended) shall remain in full
force and effect until modified by order, rule or regulation issued by
the Commission.
(b)(1) In any situation where it is unlawful to collect rates or
charges except in accordance with a rate schedule in effect pursuant to
the Regulations of the Commission, no natural gas company, public
utility, nor licensee (herein company) will be deemed in default of any
law, or regulation thereunder, administered by the Commission because
that company has complied with E.O. 11615, or any modification thereof.
In our view, the Executive order precludes upward revision of any rate
schedule in effect during the 30-day period ending August 14, 1971. In
the event of a change in rate schedule during that 30-day period, the
rate schedule last permitted to go into effect by the Commission shall
control.
(2) A rate which is being collected on August 14, 1971, whether or
not subject to refund, shall continue to be collected, subject to
further Commission order.
(3) Any rate filing made subsequent to August 14, 1971 (or such
filing having been made prior to August 14, 1971, but with rates to
become effective after August 14, 1971, whether by termination of a
suspension period or by automatic or other escalations, including
tracking, or otherwise), which rate would be an increase proscribed by
E.O. 11615, shall not take effect for the duration of the period set
forth in the Executive order, including any extension or modification
thereof, or for the duration of any suspension period set by the
Commission pursuant to the Natural Gas Act or the Federal Power Act,
whichever is longer.
(4) The Charges of small producers (as defined in Order No. 428,
issued March 18, 1971, 36 FR 5598, March 25, 1971) shall be stabilized
at levels not greater than the highest of those pertaining to a
substantial volume of actual transactions by each individual small
producer during the 30-day period ending August 14, 1971, for so long as
E.O. No. 11615 is applicable.
(c) Nothing herein contained shall be construed as preventing any
filing permitted by the Federal Power Act, the Natural Gas Act, or other
authorities, and the regulations issued thereunder. The Commission's
regulatory functions shall continue to be operative and shall be in
accordance with the requirements, purposes, and policies of those Acts,
subject to E.O. No. 11615, as it may affect implementation of Commission
orders.
(Order 437, 36 FR 16902, Aug. 26, 1971, as amended by Order 437A, 36
FR 22368, Nov. 25, 1971)
0051Filed as part of the original document. See also 36 FR 15727.
18 CFR 2.90a Implementation of Executive Order No. 11627 and 6 CFR
300.016.
(a) No public utility as defined in 6 CFR 300.016 subject to the
jurisdiction of this Commission shall increase a rate or charge without
having first received the approval of this Commission.
(b) For the purposes of the Economic Stabilization Act, as amended,
and pursuant to 6 CFR 300.016(a), all increases in rates or charges
appearing in Commission orders issued after November 13, 1971, shall be
effective on the date and under the conditions specified in the
Commission order, but in no event will such increases be retroactive
prior to 12:01 a.m., November 14, 1971.
(c) For the purposes of the Economic Stabilization Act as amended and
pursuant to 6 CFR 300.016(b), the Commission hereby announces that its
actions with respect to increases in rates or charges in orders
heretofore issued containing a provision that they are subject to the
policy announced in Order No. 437 will be reviewed for consistency with
the purposes of the Economic Stabilization Act of 1970, as amended.
After such review, increases in rates or charges approved as being
consistent with such purposes will be reported as supplements to this
order and shall be effective as of 12:01 a.m., November 14, 1971.
(d) For the purposes of the Economic Stabilization Act, as amended,
the Commission announces that its actions with respect to increases in
rates or charges otherwise effective, but for the policy announced in
Order No. 437, where the applicability of Order No. 437 is not
reflected in any Commission order, such actions will be reviewed for
consistency with the Economic Stabilization Act, as amended, and, after
such review, increases in rates or charges approved as being consistent
with such purposes will be reported as supplements to this order and
shall be effective as of 12:01 a.m., November 14, 1971.
(e) Orders heretofore issued containing a provision that they are
subject to Order No. 437, but which do not authorize increases in rates
or charges, will also be reviewed, and actions taken thereon will also
be reported as supplements to this order, with appropriate indications
as to relief from any requirement imposed by Order No. 437.
(Order 437A, 36 FR 22368, Nov. 25, 1971)
18 CFR 2.90b Implementation of Executive Order No. 11723.
(a) No public utility subject to the jurisdiction of this Commission
shall increase a rate or charge without having first received the
approval of this Commission;
(b) The Commission will continue to carry out its responsibilities
under the Natural Gas Act (15 U.S.C. 717, et seq.) and the Federal Power
Act (16 U.S.C. 792, et seq.) by establishing just and reasonable rates
with a view toward consistency of those rates with the Economic
Stabilization Act of 1970, as amended;
(c) All public utilities subject to the jurisdiction of this
Commission shall comply fully with the Economic Stabilization Act of
1970, as amended, the E.O. No. 11723, and the rules and regulations
promulgated thereunder by the Cost of Living Council.
(Order 437-B, 38 FR 17183, June 29, 1973)
18 CFR 2.91 Automated computer regulatory information system.
(a) By this order the Federal Power Commission declares the policy to
establish a fully automated computer regulatory information system,
which when developed and fully operative will assist the Commission in
carrying out its responsibilities imposed by the Federal Power Act and
the Natural Gas Act and provide prompt and ready access to industry and
the public at large of data contained in a central electronic data bank
designed for such system. The central electronic data bank will be
designed with a view to:
(1) Further eliminate duplication in information now collected;
(2) Provide the speed of access which is required by public interest
priorities and available through full computer technology;
(3) Facilitate further evaluation and analysis of all data;
(4) Facilitate reduction of the quantity of existing manual files;
and
(5) Accommodate the development of new regulatory techniques.
(b) The Commission hereby establishes a central point of contact and
coordination within the Office of the Executive Director of the
Commission to ensure continued coordination and liaison with industry,
industry associations, and all other persons or entities who have or may
express interest in the development plans, progress and status of the
fully automated computer regulatory information system to be established
pursuant to this order.
(c) The development of the automatic computer regulatory information
system will be effected through the adoption of phased rulemaking orders
wherein the various Federal Power Commission reporting procedures and
report forms will be restructured to computer regulatory form with
accounting and other data gathering requirements to conform therein.
Transitional periods will be provided during which existing and proposed
computer reporting techniques will be observed, and thereafter,
inconsistent existing processes will be eliminated.
(1) In restructuring the current methods of reporting data to the
Commission by using EDP technology, the Commission contemplates the
redesign and consolidation of all existing hard copy public use forms,
eliminating redundancies and providing clarifying instructions. EDP
reporting of public use form information will be replaced by the
submission of individual data elements within a general data element and
code scheme which will be compatible with EDP media and data
communications technology. It is anticipated that this major systems
revision will result in the reduction of the total number of data items
currently transmitted to the Commission by the respondents. This order
does not affect any other rules or rulemakings regarding the submission
of data in EDP format issued prior to this order.
(2) The Commission contemplates the issuance of FPC agency EDP
standards to be employed in the said system which shall be in accordance
with the requirements of Pub. L. 89-306, Office of Management and
Budget (OMB) Circular No. A-86, and other applicable Federal standards.
The Commission intends to issue references to Federal EDP standards and
to promulgate FPC agency standards consisting of data elements and codes
for use by persons submitting data to the Commission.
(3) Inasmuch as many utilities and natural gas companies reporting
data to the Commission also report similar data to State or other
governmental agencies, the Commission will coordinate this program plan
with the appropriate State and other governmental agencies so as to
avoid undue burden on the reporting companies. Any redesign of existing
public use forms will also be coordinated with appropriate state and
other governmental agencies.
(d) Upon establishment of a fully developed automated computer
regulatory information system, the Commission will operate a centralized
electronic information data bank of all Federal Power Commission
regulatory and administrative information.
(1) In applying the technology of computers, terminals and data
communications to Commission operations, the Commission will install the
necessary terminals and communication devices in each of its
organizational entities to facilitate the use of the central data bank.
The installation of this equipment will be in accordance with the
Commission's EDP management plan and under the direction of the
Commission's EDP unit. The EDP unit will be the focal point of new
computer applications within the Commission as well as maintaining
state-of-the-art knowledge of computers, terminals, communications and
software as applicable to regulatory functions. The Commission has
concluded previously that cost of development and operation of a fully
automated computer regulatory information system is a cost effective
mode of operations for the conduct of Commission activities.
(2) Even though the consolidated public use forms will be maintained
in the Office of Public Information, the same data will be available on
high speed microfilm readers located in OPI, making specific information
available rapidly. Hard copy printout will also be available.
(3) The system will permit the Commission and its staff access to
process data via terminals or other devices for the express purpose of
regulation as provided in the Federal Power Act, 16 U.S.C. 4321, and all
other applicable laws and requirements.
(4) This statement of policy may be amended from time to time as
circumstances require.
(Order 494, 38 FR 27814, Oct. 9, 1973, as amended by Order 494, 39 FR
7928, Mar. 1, 1974)
2.100 -- 2.101 (Reserved)
18 CFR 2.102 Policy respecting production-related activities performed
by an interstate pipeline.
(a) Policy. (1) If an interstate pipeline purchases natural gas in a
first sale, then in any proceeding brought under the Natural Gas Act to
determine the lawfulness of the rates and charges of such pipeline, a
production-related service provided by the pipeline with respect to the
purchase of such gas, or by another on behalf of the pipeline, shall be
deemed prudent, unless the terms of the gas sales contract governing the
pipeline's purchase of the gas expressly provide that the seller perform
the activity.
(2) Any production-related service not deemed prudent under paragraph
(a)(1) of this section, and the level of costs to perform any
production-related service, is not deemed imprudent. The prudence of
such service, or of the level of costs, is to be determined in an
appropriate pipeline rate or certificate proceeding brought under the
Natural Gas Act.
(b) Definitions. For purposes of this section the following
definitions apply:
(1) The terms first sale and interstate pipeline have the same
meaning as such terms have under the NGPA.
(2) The term production-related service has the same meaning as that
term has under 271.1104(c)(6) of this part.
(Order 94-A, 48 FR 5177, Feb. 3, 1983)
18 CFR 2.103 Statement of policy respecting take or pay provisions in
gas purchase contracts.
(a) Recognizing that take or pay contract obligations may be
shielding the prices of deregulated and other higher cost gas from
market constraints, the Commission sets forth its general policy
regarding prepayments for natural gas pursuant to take or pay provisions
in gas contracts and amendments thereto between producers and interstate
pipelines which become effective December 23, 1982. The provisions of
this policy statement do not establish a binding norm but instead
provide general guidance. In particular cases, both the underlying
validity of the policy and its application to particular facts may be
challenged and are subject to further consideration.
(b) With respect to gas purchase contracts entered into on or after
December 23, 1982, the Commission intends to apply a rebuttable
presumption in general rate cases that prepayments to producers will not
be given rate base treatment if the prepayments are made pursuant to
take or pay requirements in such gas purchase contracts or amendments
which exceed 75 percent of annual deliverability.
(Natural Gas Act, 15 U.S.C. 717-717w; Natural Gas Policy Act of
1978, Pub. L. No. 95-621, 92 Stat. 3350, 15 U.S.C. 3301-3432)
(47 FR 57269, Dec. 23, 1982)
18 CFR 2.104 Mechanisms for passthrough of pipeline take-or-pay buyout
and buydown costs.
(a) General Policy. The Commission as a matter of policy will
provide two distinct mechanisms for passthrough of take-or-pay buyout
and buydown costs of interstate natural gas pipelines. The first is
pursuant to existing Commission policy and practice. Under this method,
pipelines may pass through prudently incurred take-or-pay buyout and
buydown costs in their sales commodity rates. The second method is
available to pipelines which agree to an equitable sharing of
take-or-pay costs and which transport under part 284 of this chapter
(other than under the grandfather provisions of 284.105 or 284.223).
Qualifying pipelines may utilize the alternative passthrough mechanisms
described in this section. Where a pipeline agrees to absorb from 25 to
50 percent of take-or-pay buyout and buydown costs, the Commission will
permit the pipeline to recover through a fixed charge an amount equal to
(but not greater than) the amount absorbed. Any remaining costs up to
50 percent of total buyout and buydown costs may be recovered either
through a commodity rate surcharge or a volumetric surcharge on total
throughput.
(b) Cost allocation procedures. A pipeline's volume-based surcharges
must be based on the volumes which underlie its most recent
Commission-approved rates. Fixed charges must be based on each
customer's cumulative deficiency in purchases in recent years (during
which the current take-or-pay liabilities of the pipelines were
incurred) measured in relation to that customer's purchases during a
representative period during which take-or-pay liabilities were not
incurred. The allocation formula employed must incorporate the
following guidelines:
(1) A representative base period must be selected. The base period
must reflect a representative level of purchases by the pipeline's firm
customers during a period preceding the onset of changed conditions
which resulted in reduced purchases and growth of the take-or-pay
problem.
(2) Firm purchases by each customer during the base year under firm
rate schedules or contracts for firm service must be determined.
(3) Firm sales purchase deficiency volumes for each subsequent year
must be determined.
(4) A fixed charge based on each customer's cumulative deficiencies
as compared to total cumulative deficiencies must be derived. The
filing pipeline will be free to select for rate calculation and filing
purposes a reasonable amortization period for buyout and buydown costs
being recovered through fixed charges or volumetric surcharges. The
pipeline will be entitled to interest at the rate set forth in part 154
of this chapter on unamortized amounts.
(c) Implementing procedures. (1) Pipelines acting pursuant to this
section may submit on or before December 31, 1990, a non-PGA rate filing
under section 4(e) of the Natural Gas Act. Pipelines may include in
their filings a fixed charge and a volumetric surcharge to recover
buyout and buydown costs actually paid as of the date of filing plus
similar costs which are known and measurable within the following nine
months. Detailed support for the amounts claimed and for the
calculation of customer surcharges must be provided. In addition, the
pipeline must disclose and describe all consideration, both cash and
noncash, given to producers in exchange for take-or-pay relief.
(2) In any filings made under this section, pipelines must include
proposals for periodic (preferably annual) adjustments to customer
surcharges, together with any necessary accounting procedures, designed
to assure that revenues recovered by the pipeline remain in balance with
buyout and buydown costs covered by the filing and actually incurred by
the pipeline.
(d) Prudence. (1) The Commission will examine the issue of prudence
if it is raised by a party in an individual proceeding. If it is
raised, the pipeline will be required to demonstrate the prudence of
take-or-pay buyout and buydown costs which it seeks to recover from its
customers through both fixed and volume-based charges.
(2) The Commission intends to exercise its authority to the full
extent permitted by the Natural Gas Act to approve take-or-pay
settlements. The Commission intends to approve uncontested take-or-pay
settlements which are consistent with this section and found to be in
the public interest. The Commission will also, if it appears reasonable
and permissible to do so, approve contested settlements as to all
consenting parties and initiate separate hearings to establish the rates
for opposing parties. Alternatively, the Commission will approve
contested settlements on the merits if supported by substantial evidence
in the record. In any case where hearings are held as to the prudence
of take-or-pay buyout and buydown costs, the Commission will permit the
pipeline the opportunity to recover all take-or-pay costs found to be
prudent from the contesting parties on a proportional basis, even if the
amount allowed is greater than the amounts initially sought to be
recovered by the pipeline.
(e) Flowthrough by downstream pipelines. Downstream pipelines must
flow through approved take-or-pay fixed charges based on the cumulative
purchase deficiencies of their customers. Volumetrically-based
surcharges must be flowed through on a volumetric basis. Customers of
downstream pipelines have the right in connection with either PGA or
general rate filings to challenge the purchasing practices of such
pipelines. Remedies for purchasing practices found by the Commission to
be imprudent will be determined on a case-by-case basis.
(f) Ongoing proceedings. Pipeline rate proceedings pending September
15, 1987 may be utilized as a forum for implementing the approved cost
recovery mechanisms set forth in this section. Permission will be
granted in cases where implementation of this policy in pending
proceedings appears feasible, will not result in inordinate delay, or
can be expected to result in unnecessary or cumulative rate filings with
the Commission. In the event permission is granted, the presiding
judge(s) will allow pipelines to supplement their filings to the extent
necessary to assure compliance with the filing and data requirements set
forth herein. The presiding judges shall also establish any procedures
necessary to protect the rights of all parties. Any rates established
pursuant to this section will be permitted to become effective only
prospectively upon Commission approval.
(g) Scope. This section does not go beyond the Commission's
determination in the April 10, 1985, policy statement (Docket No.
PL85-1-000) that take-or-pay buyout and buydown costs do not violate the
pricing provision of the Natural Gas Policy Act of 1978 (NGPA). It is
not intended to affect take-or-pay prepayments made by pipelines and
included in account 165 and in their rate bases. Nor does it address
the issue of whether take-or-pay prepayments to a producer for gas not
taken and which cannot be made up violate the Title I pricing provisions
of the NGPA. This policy statement applies only to buyout and buydown
costs paid by pipelines that are transporting under part 284 of this
chapter, under existing contracts, and is not intended to disturb in any
way take-or-pay settlements previously entered into between pipelines
and their producer suppliers.
(Order 500, 52 FR 30351, Aug. 14, 1987, as amended at 52 FR 35539,
Sept. 22, 1987; Order 500-F, 53 FR 50924, Dec. 19, 1988; 54 FR 52394,
Dec. 21, 1989)
18 CFR 2.105 Gas supply charges.
An interstate natural gas pipeline that transports under part 284 of
this chapter may include in its tariff a charge, not related to
facilities, for standing ready to supply gas to sales customers in
accordance with the following principles:
(a) The pipeline may not recover take-or-pay or similar charges from
suppliers by any other means.
(b) The pipeline must allow its sales customers to nominate levels of
service freely within their firm sales entitlements or otherwise employ
a mechanism for the renegotiation of levels of service at regular
intervals.
(c) The pipeline must announce prior to nominations by the customers
a firm price or pricing formula for the service, and hold that price or
pricing formula firm during the interval arranged in paragraph (b) of
this section.
(d) By nominating a new level of service lower than its current
level, a customer has consented to any abandonment sought by the
pipeline commensurate with the difference between the current level of
service and the nominated level.
(Order 500, 52 FR 30352, Aug. 14, 1987; 52 FR 35539, Sept. 22, 1987,
and 54 FR 52394, Dec. 21, 1989)
18 CFR 2.105 Rules of General Applicability
2.201 (Reserved)
18 CFR 2.105 Statement of General Policy and Interpretations Under the Natural Gas Policy Act of 1978
18 CFR 2.300 Statement of policy concerning allegations of fraud,
abuse, or similar grounds under section 601(c) of the NGPA.
Recognizing the potential for an increasing number of intervenor
complaints predicated on the fraud, abuse, or similar grounds exception
to guaranteed passthrough, the Commission sets forth the elements of a
cognizable claim under section 601(c)(2) which it expects to apply in
cases in which fraud, abuse, or similar grounds is raised. The
provisions of this policy statement do not establish a binding norm but
instead provide general guidance. In particular cases, both the
underlying validity of the policy and its application to particular
facts may be challenged and are subject to further consideration. The
procedure prescribed conforms with the NGPA's general guarantee of
passthrough by placing the burden of pleading the elements and proving
the elements of a case on intervenors who would allege fraud, abuse, or
similar grounds as a basis for denying passthrough of gas prices
incurred by an interstate pipeline.
(a) In order for the issue of fraud, as that term is used in section
601(c) of the NGPA, to be considered in a proceeding, an intervenor or
intervenors must file a complaint alleging that:
(1) The interstate pipeline, any first seller who sells natural gas
to the interstate pipeline, or both acting together, have made a
fraudulent misrepresentation or concealment; and
(2) Because of that fraudulent misrepresentation or concealment, the
amount paid by the interstate pipeline to any first seller of natural
gas was higher than it would have been absent the fraudulent conduct.
(b) In order for the issue of abuse, as that term is used in section
601(c) of the NGPA, to be considered in a proceeding, an intervenor or
intervenors must file a complaint alleging that:
(1) The interstate pipeline, a first seller who sells to the
interstate pipeline, or both acting together, have made a negligent
misrepresentation or concealment, or other misrepresentation or
concealment in disregard of a duty; and
(2) Because of that negligent misrepresentation or concealment, or
other misrepresentation or concealment in disregard of a duty, the
amount paid by the interstate pipeline to any first seller of natural
gas was higher than it would have been absent the negligent
misrepresentation or concealment, or other misrepresentation or
concealment made in disregard of a duty.
(c) In order for the issue of similar grounds, as that term is used
in section 601(c) of the NGPA, to be considered in a proceeding, an
intervenor or intervenors must file a complaint alleging that:
(1) The interstate pipeline, any first seller who sells natural gas
to the interstate pipeline, or both acting together, have made an
innocent misrepresentation of fact; and
(2) Because of that innocent misrepresentation of facts, the amount
paid by the interstate pipeline to any first seller of natural gas was
higher than it would have been absent the innocent misrepresentation of
fact.
(Natural Gas Policy Act of 1978, Pub. L. 95-621, 92 Stat. 3350, (15
U.S.C. 3301-3432))
(47 FR 6262, Feb. 11, 1982)
18 CFR 2.300 Statement of Interpretation Under the Public Utility Regulatory Policies Act of 1978
18 CFR 2.400 Statement of interpretation of waste concerning natural
gas as the primary energy source for qualifying small power production
facilities.
For purposes of deciding whether natural gas may be considered as
waste as the primary energy source pursuant to 292.204(b)(1)(i) of this
chapter, the Commission will use the criteria described in paragraphs
(a), (b) and (c) of this section.
(a) Category 1. Except as provided in paragraph (b) of this section,
natural gas with a heating value of 300 Btu per standard cubic foot
(scf) or below will be considered unmarketable.
(b) Category 2. In determining whether natural gas with a heating
value above 300 Btu but not more than 800 Btu per scf and natural gas
produced in the Moxa Arch area is unmarketable, the Commission will
consider the following information:
(1) The percentages of the chemical components of the gas, the
wellhead pressure, and the flow rate;
(2) Whether the applicant offered the gas to all potential buyers
located within 20 miles of the wellhead under terms and conditions
commensurate with those prevailing in the region and that such potential
buyers refused to buy the gas; and
(3) A study, which may be submitted by an applicant, that evaluates
the economics of upgrading the gas for sale and transporting the gas to
a pipeline. The study should include estimates of the revenues which
could be derived from the sale of the gas and the fixed and variable
costs of upgrading.
(c) Category 3. In determining whether natural gas with a heating
value above 800 Btu per scf is marketable, the Commission will consider
the information included in paragraph (b) of this section and whether:
(1) The gas has actually been flared, vented to the atmosphere, or
continously injected into a non-producing zone for a period of one year,
pursuant to legal authority; or
(2) The gas has been certified as waste, i.e., suitable for disposal,
by an appropriate state authority.
(Order 471, 52 FR 19310, May 22, 1987)
18 CFR 2.400 Pt. 2, App. C
18 CFR 2.400 -- -- PART 3 -- ORGANIZATION; OPERATION; INFORMATION AND
REQUESTS
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); E.O. 12009, 3 CFR 1978 Comp., p. 142 (1978);
Administrative Procedure Act, 5 U.S.C. 551-557 (1982); Natural Gas Act,
15 U.S.C. 717-717z (1982); Federal Power Act, 16 U.S.C. 791a-828c
(1982); Natural Gas Policy Act, 15 U.S.C. 3301-3432 (1982); Public
Utility Regulatory Policies Act, 16 U.S.C. 2601-2645 (1982); Interstate
Commerce Act, 49 U.S.C. 1-27 (1976); Freedom of Information Act, 5
U.S.C. 552 (1982) as amended by Freedom of Information Reform Act of
1986.
18 CFR 2.400 -- -- Subpart A -- Organization; Delegations of Authority
18 CFR 3.4 Organization.
(a) The Oil Pipeline Board, responsible for carrying out the
Commission's functions under sections 4, 6(3), 6(6), 15(7), 19a, and
20(1), 20(2), 20(3), 20(4), 20(5), 20(11) of the Interstate Commerce
Act. Any reference to a Commission Division or a Review Board in the
Interstate Commerce Act or rules of practice shall be deemed to refer to
the full FERC for purposes of the operation of the Oil Pipeline Board
herein established the review of its actions.
(43 FR 6765, Feb. 16, 1978, and 45 FR 21224, Apr. 1, 1980, as amended
by Order 376, 49 FR 21704, May 23, 1984)
18 CFR 3.4 PART 3a -- NATIONAL SECURITY INFORMATION
Sec.
3a.1 Purpose.
3a.2 Authority.
3a.11 Classification of official information.
3a.12 Authority to classify official information.
3a.13 Classification responsibility and procedure.
3a.21 Authority to downgrade and declassify.
3a.22 Declassification and downgrading.
3a.23 Review of classified material for declassification purposes.
3a.31 Classification markings and special notations.
3a.41 Access requirements.
3a.51 Designation of security officers.
3a.61 Storage and custody of classified information.
3a.71 Accountability for classified material.
3a.81 Transmittal of classified material.
3a.91 Data index system.
Authority: E.O. 11652 (37 FR 5209, March 10, 1972), National
Security Council Directive of May 17, 1972 (37 FR 10053, May 19, 1972),
sec. 309 of the Federal Power Act (49 Stat. 858, 859; 16 U.S.C. 825h)
and sec. 16 of the Natural Gas Act (52 Stat. 830; 15 U.S.C. 717o).
Source: Order 470, 38 FR 5161, Feb. 26, 1973, unless otherwise
noted.
18 CFR 3.4 General
18 CFR 3a.1 Purpose.
This part 3a describes the Federal Power Commission program to govern
the classification, downgrading, declassification, and safeguarding of
national security information. The provisions and requirements cited
herein are applicable to the entire agency except that material
pertaining to personnel security shall be safeguarded by the Personnel
Security Officer and shall not be considered classified material for the
purpose of this part.
18 CFR 3a.2 Authority.
Official information or material referred to as classified in this
part is expressly exempted from public disclosure by 5 U.S.C.
552(b)(1). Wrongful disclosure thereof is recognized in the Federal
Criminal Code as providing a basis for prosecution. E.O. 11652, March
8, 1972 (37 FR 5209, March 10, 1972), identifies the information to be
protected, prescribes classification, downgrading, declassification, and
safeguarding procedures to be followed and establishes a monitoring
system to insure its effectiveness. National Security Council Directive
Governing the Classification, Downgrading, Declassification and
Safeguarding of National Security Information, May 17, 1972 (37 FR
10053, May 19, 1972), implements E.O. 11652.
18 CFR 3a.2 Classification
18 CFR 3a.11 Classification of official information.
(a) Security Classification Categories. Information or material
which requires protection against unauthorized disclosure in the
interest of the national defense or foreign relations of the United
States (hereinafter collectively termed national security) is classified
Top Secret, Secret or Confidential, depending upon the degree of its
significance to national security. No other categories are to be used
to identify official information or material requiring protection in the
interest of national security, except as otherwise expressly provided by
statute. These classification categories are defined as follows:
(1) Top Secret. Top Secret refers to national security information
or material which requires the highest degree of protection. The test
for assigning Top Secret classification is whether its unauthorized
disclosure could reasonably be expected to cause exceptionally grave
damage to the national security. Examples of exceptionally grave damage
include armed hostilities against the United States or its allies;
disruption of foreign relations vitally affecting the national security;
the compromise of vital national defense plans or complex cryptologic
and communications intelligence systems; the revelation of sensitive
intelligence operations; and the disclosure of scientific or
technological developments vital to national security. This
classification is to be used with the utmost restraint.
(2) Secret. Secret refers to national security information or
material which requires a substantial degree of protection. The test
for assigning Secret classification shall be whether its unauthorized
disclosure could reasonably be expected to cause serious damage to the
national security. Examples of serious damage include disruption of
foreign relations significantly affecting the national security;
significant impairment of a program or policy directly related to the
national security; revelation of significant military plans or
intelligence operations; and compromise of significant scientific or
technological developments relating to national security. The
classification Secret shall be sparingly used.
(3) Confidential. Confidential refers to national security
information or material which requires protection, but not to the degree
described in paragraphs (a) (1) and (2) of this section. The test for
assigning Confidential classification shall be whether its unauthorized
disclosure could reasonably be expected to cause damage to the national
security.
(b) Classified information will be assigned the lowest classification
consistent with its proper protection. Documents will be classified
according to their own content and not necessarily according to their
relationship to other documents.
(c) The overall classification of a file or group of physically
connected documents will be at least as high as that of the most highly
classified document therein. When put together as a unit or complete
file, the classification of the highest classified document contained
therein will be marked on a cover sheet, file folder (front and back),
or other similar covering, and on any transmittal letters, comments, or
endorsements.
(d) Administrative Control Designations. These designations are not
security classification designations, but are used to indicate a
requirement to protect material from unauthorized disclosure. Material
identified under the provisions of this subparagraph will be handled and
protected in the same manner as material classified Confidential except
that it will not be subject to the central control system described in
3a.71. Administrative Control designations are:
(1) For Official Use Only. This designation is used to identify
information which does not require protection in the interest of
national security, but requires protection in accordance with statutory
requirements or in the public interest and which is exempt from public
disclosure under 5 U.S.C. 552(b) and 388.105(n) of this chapter.
(2) Limited Official Use. This administrative control designation is
used by the Department of State to identify nondefense information
requiring protection from unauthorized access. Material identified with
this notation must be limited to persons having a definite need to know
in order to fulfill their official responsibilities.
(e) A letter or other correspondence which transmits classified
material will be classified at a level at least as high as that of the
highest classified attachment or enclosure. This is necessary to
indicate immediately to persons who receive or handle a group of
documents the highest classification involved. If the transmittal
document does not contain classified information, or if the information
in it is classified lower than in an enclosure, the originator will
include a notation to that effect. (See 3a.31(e).)
(Order 470, 38 FR 5161, Feb. 26, 1973, as amended by Order 225, 47 FR
19055, May 3, 1982)
18 CFR 3a.12 Authority to classify official information.
(a) The authority to classify information or material originally
under E.O. 11652 is restricted to those offices within the executive
branch which are concerned with matters of national security, and is
limited to the minimum number absolutely required for efficient
administration.
(b) The authority to classify information or material originally as
Top Secret is to be exercised only by such officials as the President
may designate in writing and by the heads of the following departments
and agencies and such of their principal staff officials as the heads of
these departments and agencies may designate in writing;
Such offices in the Executive Office of the President as the
President may designate in writing.
Central Intelligence Agency.
Atomic Energy Commission.
Department of State.
Department of the Treasury.
Department of Defense.
Department of the Army.
Department of the Navy.
Department of the Air Force.
U.S. Arms Control and Disarmament Agency
Department of Justice.
National Aeronautics and Space Administration.
Agency for International Development.
(c) The authority to classify information or material originally as
Secret is exercised only by:
(1) Officials who have Top Secret classification authority under
3a.11(b); and
(2) The heads of the following departments and agencies and such
principal staff officials as they may designate in writing:
Department of Transportation.
Federal Communications Commission.
Export-Import Bank of the United States.
Department of Commerce.
U.S. Civil Service Commission.
U.S. Information Agency.
General Services Administration.
Department of Health, Education, and Welfare.
Civil Aeronautics Board.
Federal Maritime Commission.
Federal Power Commission.
National Science Foundation.
Overseas Private Investment Corporation.
(d) The authority to classify information or material originally as
Confidential is exercised by officials who have Top Secret or Secret
classification authority.
(e) Pursuant to E.O. 11652, the authority to classify information or
material originally as Secret or Confidential in the FPC shall be
exercised only by the Chairman, the Vice Chairman, and the Executive
Director. When an incumbent change occurs in these positions, the name
of the new incumbent will be reported to the Interagency Classification
Review Committee NSC.
18 CFR 3a.13 Classification responsibility and procedure.
(a) Each FPC official who has classifying authority ( 3a.12) shall be
held accountable for the propriety of the classifications attributed to
him. Unnecessary classification and overclassification shall be
avoided. Classification shall be solely on the basis of national
security considerations. In no case shall information be classified in
order to conceal inefficiency or administrative error, to prevent
embarrassment to the FPC or any of its officials or employees, or to
prevent for any other reason the release of information which does not
require protection in the interest of national security.
(b) Each classified document shall show on its face its
classification and whether it is subject to or exempt from the General
Declassification Schedule ( 3a.22(b)). It also shall show the office of
origin, the date of preparation and classification and, to the extent
practicable, be so marked as to indicate which portions are classified,
at what level, and which portions are not classified in order to
facilitate excerpting and other use. Material which merely contains
references to classified materials, which references do not reveal
classified information, shall not be classified.
(c) Material classified under this part shall indicate on its face
the identity of the highest authority authorizing the classification.
Where the individual who signs or otherwise authenticates a document or
item has also authorized the classification, no further annotation as to
his identity is required.
(d) Classified information or material furnished to the United States
by a foreign government or international organization shall either
retain its original classification or be assigned a U.S.
classification. In either case, the classification shall assure a degree
of protection equivalent to that required by the government or
international organization which furnished the information or material.
(e) Whenever information or material classified by an authorized
official is incorporated in another document or other material by any
person other than the classifier, the previously assigned security
classification category shall be reflected thereon together with the
identity of the classifier.
(f) As a holder of classified information or material, the FPC shall
observe and respect the classification assigned by the originator. If
it is believed that there is unnecessary classification; that the
assigned classification is improper, or that the document is subject to
declassification under E.O. 11652, the FPC will so inform the originator
who is then required by the Executive order to reexamine the
classification.
18 CFR 3a.13 Declassification and Downgrading
18 CFR 3a.21 Authority to downgrade and declassify.
(a) The authority to downgrade and declassify information or material
shall be exercised as follows:
(1) Information or material may be downgraded or declassified by the
official authorizing the original classification, by a successor or by a
supervisory official of either.
(2) Downgrading and declassification authority may also be exercised
by an official specifically authorized under regulations issued by the
head of the Department listed in sections 2 A and B of E.O. 11652, March
10, 1972.
(3) In the case of classified information or material transferred
pursuant to statute or Executive order in conjunction with a transfer of
function and not merely for storage purposes, the receiving department
or agency shall be deemed to be the originating department or agency for
all purposes under E.O. 11652, including downgrading and
declassification.
(4) In the case of classified information or material not officially
transferred under paragraph (a)(3) of this section, but originated in a
department or agency which has since ceased to exist, each department or
agency in possession shall be deemed to be the originating department or
agency for all purposes. Such information or material may be downgraded
and declassified after consulting with any other departments or agencies
having an interest in the subject matter.
(5) Classified information or material transferred to the General
Services Administration for accession to the Archives of the United
States shall be downgraded and declassified by the Archivist of the
United States in accordance with E.O. 11652, directives of the President
issued through the National Security Council, and pertinent regulations
of the departments and agencies.
18 CFR 3a.22 Declassification and downgrading.
(a) When classified information of material no longer requires the
level of protection assigned to it, it shall be downgraded or
declassified in order to preserve the effectiveness and integrity of the
classification system. The Chairman, Vice Chairman, and Executive
Director exercise downgrading and declassification authority in the FPC.
(b) Information and material classified prior to June 1, 1972, and
assigned to Group 4 under E.O. 10501, as amended by E.O. 10964, unless
declassified earlier by the original classifying authority, shall be
declassified and downgraded in accordance with the following General
Declassification Schedule.
(1) Top Secret. Information or material originally classified TOP
SECRET becomes automatically downgraded to Secret at the end of the
second full calendar year following the year in which it was originated,
downgraded to Confidential at the end of the fourth full calendar year
following the year in which it was originated, and declassified at the
end of the 10th full calendar year following the year in which it was
originated.
(2) Secret. Information and material originally classified Secret
becomes automatically downgraded to Confidential at the end of the
second full calendar year following the year in which it was originated,
and declassified at the end of the eighth full calendar year following
the year in which it was originated.
(3) Confidential. Information and material originally classified
Confidential becomes automatically declassified at the end of the sixth
full calendar year following the year in which it was originated.
(c) To the fullest extent applicable, there shall be indicated on
each such FPC originated classified document whether it can be
downgraded or declassified at a date earlier than under the above
schedule, or after a specified event, or upon the removal of classified
attachments or enclosures. Classified information in the possession of
the Federal Power Commission, but not bearing a marking for automatic
downgrading or declassification, will be marked or designated by the
Chairman or the Security Officer designated by 3a.51 hereof for
automatic downgrading or declassification in accordance with the rules
and regulations of the department or agency which originally classified
the information or material.
(d) When the FPC official having classification authority downgrades
or cancels the classification of a document before its classification
status changes automatically, each addressee to whom the document was
transmitted shall be notified of the change unless the addressee has
previously advised that the document was destroyed. Addressees must be
notified similarly when it has been determined that a document must be
upgraded.
(e) When classified information from more than one source is
incorporated into a new document or other material, the document or
other material shall be classified, downgraded, or declassified in
accordance with the provisions of E.O. 11652 and NSC directives
thereunder applicable to the information requiring the greatest
protection.
(f) All information or material classified prior to June 1, 1972,
other than that described in paragraph (b) of this section, is excluded
from the General Classification Schedule. However, at any time after
the expiration of 10 years from the date of origin it shall be subject
to classification review and disposition by FPC provided:
(1) A department or agency or member of the public requests review;
(2) The request describes the record with sufficient particularity to
enable FPC to identify it; and
(3) The record can be obtained with a reasonable amount of effort.
(g) All classified information or material which is 30 years old or
more will be declassified under the following conditions:
(1) All information and material classified after June 1, 1972, will,
whether or not declassification has been requested, become automatically
declassified at the end of 30 full calendar years after the date of its
original classification except for such specifically identified
information or material which the Chairman personally determines in
writing to require continued protection because such continued
protection is essential to the national security, or disclosure would
place a person in immediate jeopardy. In such case, the Chairman also
will specify the period of continued classification.
(2) All information and material classified before June 1, 1972 and
more than 30 years old will be systematically reviewed for
declassification by the Archivist of the United States by the end of the
30th full calendar year following the year in which it was originated.
In his review, the Archivist will separate and keep protected only such
information or material as is specifically identified by the Chairman in
accordance with paragraph (g) (1) of this section. In such case, the
Chairman also will specify the period of continued classification.
(3) The Executive Director, acting for the Chairman, is assigned to
assist the Archivist of the United States in the exercise of his
responsibilities indicated in paragraph (g)(2) of this section. He
will:
(i) Provide guidance and assistance to archival employees in
identifying and separating those materials originated in FPC which are
deemed to require continued classification; and
(ii) Develop a list for submission to the Chairman which identifies
the materials so separated, with recommendations concerning continued
classification. The Chairman will then make the determination required
under paragraphs (g) (1) and (2) of this section and cause a list to be
created which identifies the documents included in the determination,
indicates the reason for continued classification, and specifies the
date on which such material shall be declassified.
18 CFR 3a.23 Review of classified material for declassification
purposes.
(a) All information and material classified after June 1, 1972, and
determined in accordance with Chapter 21, title 44, United States Code,
to be of sufficient historical or other value to warrant preservation
shall be systematically reviewed on a timely basis for the purpose of
making such information and material publicly available according to the
declassification determination at the time of classification. During
each calendar year the FPC shall segregate to the maximum extent
possible all such information and material warranting preservation and
becoming declassified at or prior to the end of such year. Promptly
after the end of such year the FPC, or the Archives of the United States
if transferred thereto, shall make the declassified information and
material available to the public to the extent permitted by law.
(b) Departments and agencies and members of the public may direct
requests for review for declassification, as described in 3a.22(f), to:
Office of the Secretary, Federal Power Commission,1 Washington, DC
20426.
The Office of the Secretary will assign the request to the
appropriate Bureau or Office for action and will acknowledge in writing
the receipt of the request. If the request requires the rendering of
services for which fair and equitable fees should be charged pursuant to
Title 5 of the Independent Offices Appropriations Act, 1952, 31 U.S.C.
483a, the requester shall be so notified. The Bureau or Office which is
assigned action will make a determination within 30 days of receipt or
explain why further time is necessary. If at the end of 60 days from
receipt of the request for review no determination has been made, the
requester may apply to the FPC Review Committee (paragraph (g) of this
section) for a determination. Should the Bureau or Office assigned the
action on a request for review determine that under the criteria set
forth in section 5(B) of E.O. 11652 continued classification is
required, the requester will be notified promptly and, whenever
possible, provided with a brief statement as to why the requested
information or material cannot be declassified. The requester may
appeal any such determination to the FPC Review Committee and the notice
of determination will advise him of this right.
(c) The FPC Review Committee will establish procedures to review and
act within 30 days upon all applications and appeals regarding requests
for declassification. The chairman, acting through the committee, is
authorized to overrule previous determinations in whole or in part when,
in its judgment, continued protection is no longer required. If the
committee determines that continued classification is required under the
criteria of section 5(B) of E.O. 11652, it will promptly so notify the
requester and advise him that he may appeal the denial to the
Interagency Classification Review Committee.
(d) A request by a department or agency or a member of the public to
review for declassification documents more than 30 years old shall be
referred directly to the Archivist of the United States, and he shall
have the requested documents reviewed for declassification. If the
information or material requested has been transferred to the General
Services Administration for accession into the Archives, the Archivist
shall, together with the chairman, have the requested documents reviewed
for declassification. Classification shall be continued in either case
only when the chairman makes the personal determination indicated in
3a.22(g)(1). The Archivist shall notify the requester promptly of such
determination and of his right to appeal the denial to the Interagency
Classification Review Committee.
(e) For purposes of administrative determinations under paragraph
(b), (c), or (d) of this section, the burden is on the FPC to show that
continued classification is warranted. Upon a determination that the
classified material no longer warrants classification, it will be
declassified and made available to the requester if not otherwise exempt
from disclosure under section 552(b) of Title 5, U.S.C. (Freedom of
Information Act) or other provisions of law.
(f) A request for classification review must describe the document
with sufficient particularity to enable the FPC to identify it and
obtain it with a reasonable amount of effort. Whenever a request is
deficient in its description of the record sought, the requester will be
asked to provide additional identifying information whenever possible.
Before denying a request on the ground that it is unduly burdensome, the
requester will be asked to limit his request to records that are
reasonably obtainable. If the requester then does not describe the
records sought with sufficient particularity, or the record requested
cannot be obtained with a reasonable amount of effort, the requester
will be notified of the reasons why no action will be taken and of his
right to appeal such decision.
(g) The FPC Review Committee will consist of the Executive Director,
as Committee Chairman, the Secretary, and the Director, Office of Public
Information, as members. In addition to the activities described in
this paragraph, the Review Committee has authority to act on all
suggestions and complaints with respect to administration of E.O. 11652
and this part 3a.
(h) The FPC Review Committee is also responsible for recommending to
the chairman appropriate administrative action to correct abuse or
violation of any provision of E.O. 11652 or NSC directives thereunder,
including notifications by warning letter, formal reprimand, and to the
extent permitted by law, suspension without pay and removal.
(i) The Chairman of the Review Committee will submit through the
chairman, FPC, a report quarterly to the Interagency Classification
Review Committee, NSC, of actions on classification review requests,
classification abuses, and unauthorized disclosures.
1Now known as the Federal Energy Regulatory Commission.
18 CFR 3a.23 Classification Markings and Special Notations
18 CFR 3a.31 Classification markings and special notations.
(a) After the chairman, the vice chairman, or the executive director
determines that classified information is contained in an original
document or other item, the appropriate marking, i.e., Secret or
Confidential, will be applied as indicated herein. In addition, each
classified document will reflect its date of origin and the Bureau,
Office, or Regional Office responsible for its preparation and issuance,
and the identity of the highest authority authorizing the
classification. Where the individual who signs or otherwise
authenticates the document or other item has also authorized the
classification, no further annotation as to his identity is required.
Each classified document will also show on its face whether it is
subject to or exempt from the General Declassification Schedule
described in 3a.22(b).
(1) For marking documents which are subject to the General
Declassification Schedule, the following stamp will be used:
(Top Secret, Secret, or Confidential) Classified by ------------ .
Subject to General Declassification Schedule of E.O. 11652,
automatically downgraded at 2-year intervals and declassified on
December 31, ------------ (insert year).
(2) For marking documents which are to be automatically declassified
on a given event or date earlier than the General Declassification
Schedule the following stamp will be used:
(Top Secret, Secret, or Confidential) Classified by ------------ .
Automatically declassified on -------------------- (effective date or
event).
(3) For marking documents which are exempt from the General
Declassification Schedule the following stamp will be used:
(Top Secret, Secret, or Confidential) Classified by ------------ .
Exempt from General Declassification Schedule of E.O. 11652, Exemption
Category (section 5B (1), (2), (3), or (4). Automatically declassified
on -------------------- (effective date or event, if any).
(b) Should the classifier fail to mark such document with one of the
foregoing stamps, the document shall be deemed to be subject to the
General Declassification Schedule. The person who signs or finally
approves a document or other material containing classified information
shall be deemed to be the classifier. If the classifier is other than
such person he shall be identified on the stamp as indicated.
(c) On documents, the classification markings Secret and Confidential
will be stamped in red ink, printed, or written in letters considerably
larger than those used in the text of the document. On documents which
are typewritten in elite, pica or executive size type, the above
markings should be in letters not less than three-sixteenths inch in
height. No markings, other than those indicated above, are authorized
to designate that a document or material requires protection in the
interests of national security. The overall classification assigned to
a document will be conspicuously marked on the top and bottom of each
page and on the outside of the front and back covers, if any. Letters
of transmittal, endorsements, routing slips, or any other papers of any
size which conceal or partially conceal the cover, the title page, or
first page, will bear the marking of the overall classification.
(d) Whenever a classified document contains either more than one
security classification category or unclassified information, each
section, part or paragraph should be marked to the extent practicable to
show its classification category or that it is unclassified.
(e) Letters of transmittal or other covering documents which are
classified solely because of classified enclosures or attachments, or
which are classified in a lower category than such enclosures or
attachments, will bear either of the following markings, as appropriate.
(1) If the covering document is classified on its own, but has
enclosures or attachments of a higher classification, or is a component
(i.e., an endorsement or comment) or a file in which other components
bear a higher classification:
Regarded
(appropriate classification)
When separated from
(identify higher classified
components)
(2) If unclassified when separated from its classified enclosures or
attachments:
When the Attachments Are Removed, This Transmittal Letter Becomes
Unclassified.
(f) In addition to the classification category markings prescribed
above, the first or title page of each classified document will contain
instructions as appropriate, in accordance with the following:
(1) Regarding instructions. The declassification and downgrading
notation, as described in 3a.31(g) will be applied to classified
documents only. The notation will not be carried forward to
unclassified letters of transmittals or other cover documents. When
such cover documents are classified by their own content, they will be
annotated with the notwithstanding instructions which pertain to the
enclosures.
(2) ''Special Handling'' notation. Classified information will not
be released or disclosed to any foreign national without proper specific
authorization. This applies even when the classified material does not
bear the special handling notice described below. The special handling
notice indicated only that the material has been reviewed and a specific
determination made that the information is not releasable to foreign
nationals. If it is anticipated that the handling or distribution of a
classified document will make it liable to inadvertent disclosure to
foreign nationals it will be marked with a separate special handling
notation, which will be carried forward to letters of transmittals or
other cover documents. The notation reads:
(g) Whenever classified material is upgraded, downgraded, or
declassified, the material will be marked to reflect:
(1) The change in classification.
(2) The authority for the action.
(3) The effective date.
(4) The person or unit taking the action.
When classification changes are made, the classification markings
themselves will be changed or canceled, and each copy or item of the
material will be marked with the citation of authority. The notation
below will be used for this purpose:
Classification
(changed)
(canceled)
To
Effective on
(date)
Under authority of
(authorizing official or office)
By
(person or office taking action)
(h) In addition to the foregoing marking requirements, warning
notices shall be displayed prominently on classified documents or
materials as prescribed below. When display of these warning notices on
the documents or other materials is not feasible, the warnings shall be
included in the written notification of the assigned classification.
(1) Restricted data. For classified information or material
containing restricted data as defined in the Atomic Energy Act of 1954,
as amended:
This document contains restricted data as defined in the Atomic
Energy Act of 1954. Its dissemination or disclosure to any unauthorized
person is prohibited.
(2) Formerly restricted data. For classified information or material
containing solely Formerly Restricted Data, as defined in section 142.d,
Atomic Energy Act of 1954, as amended:
Unauthorized disclosure subject to administrative and criminal
sanctions. Handle as restricted data in foreign dissemination, section
114.b., Atomic Energy Act, 1954.
(3) Information other than restricted data or formerly restricted
data. For classified information or material furnished to persons
outside the Executive Branch of Government other than as described in
paragraphs (h)(1) and (2) of this section.
Unauthorized disclosure subject to criminal sanctions.
(4) Sensitive intelligence information. For classified information
or material relating to sensitive intelligence sources and methods, the
following warning notice shall be used, in addition to and in
conjunction with those prescribed in paragraph (h)(1), (2), or (3), of
this section, as appropriate:
18 CFR 3a.31 Access to Classified Materials
18 CFR 3a.41 Access requirements.
(a) The Personnel Security Officer, on a continuing current basis,
will certify to the Security Officer, the head of each bureau and office
and each regional engineer, the names of officers and employees who have
been granted a security clearance for access to classified material and
the level of such clearance (Top Secret, Secret, Confidential). The
Personnel Security Officer will maintain accurate and current listings
of personnel who have been granted security clearances in accordance
with the standards and criteria of Executive Orders 10450 and 10865 and
as prescribed by this part.
(b) In addition to a security clearance, staff members must have a
need for access to classified information or material in connection with
the performance of duties. The determination for the need-to-know will
be made by the official having responsibility for the classified
information or material.
(c) When a staff member no longer requires access to classified
information or material in connection with performance of official
duties, the Personnel Security Officer will administratively withdraw
the security clearance. Additionally, when a staff member no longer
needs access to a particular security classification category, the
security clearance will be adjusted to the classification category
required. In both cases, this action will be without prejudice to the
staff member's eligibility for a security clearance or upgrading of
category should the need again arise.
(d) Access to classified information or material originated by the
FPC may be authorized to persons outside the Executive Branch of the
Government engaged in historical research and to former Presidential
appointees as provided in paragraphs VI B and C of the NSC directive
dated May 17, 1972. The determination of access authorization will be
made by the Chairman.
(e) Except as otherwise provided in section 102 of the National
Security Act of 1947, 61 Stat. 495, 50 U.S.C. 403, classified
information or material originating in one department or agency shall
not be disseminated outside any other department or agency to which it
has been made available without the consent of the originating
organization.
18 CFR 3a.41 Security Officers
18 CFR 3a.51 Designation of security officers.
(a) The Director, Office of Administrative Operations (OAO) is
designated as Top Secret Control Officer and Security Officer for
classified material for the Federal Power Commission. The Director,
OAO, will designate alternate Top Secret Control Officers and alternated
Security Officers, who will be authorized, subject to such limitations
as may be imposed by the Director, to perform the duties for which the
Top Secret Control Officer and Security Officer is responsible. As used
hereinafter, the terms Top Secret Control Officer and Security Officer
shall be interpreted as including the alternate Top Secret Control
Officers and Security Officers. The FPC Security Officer is authorized
and directed to insure the proper application of the provisions of
Executive Order 11652 and of this part.
(b) Regional Engineers are designated as Regional Security Officers
for the purpose of carrying out the functions assigned herein.
(c) The Director, OAO, will appoint in writing appropriately cleared
staff members to act as couriers for transmittal, as necessary, for
classified information or material.
18 CFR 3a.51 Storage and Custody of Classified Information
18 CFR 3a.61 Storage and custody of classified information.
(a) Unless specifically authorized by the Chairman or Executive
Director, classified information and materials within the Washington
office will be stored only in GSA-approved security containers in the
Office of Administrative Operations. Such containers will be of steel
construction with built-in, three-position, dial-type,
manipulation-proof, changeable combination locks.
(b) A custodian and one or more alternate custodians will be assigned
responsibility for the security of each container under his jurisdiction
in which classified information is stored. Such assignment will be made
a matter of record by executing GSA Optional Form 63, Classified
Container Registration, and affixing it to the container concerned.
Custodians will be responsible for assuring that combinations are
changed as required and that locking and checking functions are
accomplished daily in compliance with paragraphs (g) and (h) of this
section.
(c) GSA Optional Form 63 is a 3-sheet form, each sheet having a
specific purpose and disposition, as follows:
(1) Sheet 1 records the names, addresses, and home telephone numbers
of the custodian and alternate custodians. Sheet 1 is affixed to the
outside of the container.
(2) Sheet 2 records the combination of the container and is placed
inside Sheet 3, which is an envelope.
(3) Sheet 3, an envelope, is a carbon copy of Sheet 1. When the
container combination is recorded on Sheet 2, it is sealed inside Sheet
3 which is then forwarded to the FPC Top Secret Control Officer.
(d) GSA Optional Form 62, Safe or Cabinet Security Record, will be
attached conspicuously to the outside of each container used to store
classified information. The form is used to certify the opening and
locking of a container, and the checking of a container at the end of
each working day or whenever it is opened and locked during the day.
(e) Combinations of containers used to store classified materials
will be assigned classifications equal to the highest category of
classified information stored therein. Active combinations are subject
to the safeguarding and receipting requirements of this instruction.
Superseded combinations become declassified automatically and
certificates of destruction therefore are unnecessary.
(f) Knowledge of or access to the combination of a container used for
the storage of classified material will be given only to those
appropriately cleared individuals who are authorized access to the
information stored therein.
(g) Combinations of containers used to store classified material will
be changed at least once a year. A combination will be changed also
whenever anyone knowing or having access to it is transferred; when the
combination has been subjected to compromise; when the security
classification of the container is upgraded; and at any other time as
may be deemed necessary. Combinations to locks on security containers
will be changed only by individuals having a security clearance equal to
the highest category of classified material stored therein. Changing
lock combinations is a responsibility of OAO. (See FPC Special
Instruction No. AM 2162.2, Periodic Change of Combination on Locks.)
(h) The individual who unlocks a container will indicate the date and
time and initial entry on GSA Optional Form 62. At the close of each
workday, or when the container is locked at earlier time, the individual
locking the container will make the appropriate entry on GSA Optional
Form 62. An individual other than the one who locked the container will
check to insure that it is properly closed and locked and will make the
appropriate entry on GSA Optional Form 62. When a container has not
been opened during the day, the checker will enter the date and the
notation ''Not Opened'' and make appropriate entry in the ''Checked By''
column.
(i) The red and white reversible ''Closed-Open'' cardboard sign will
be used on all classified containers to indicate whether the container
is open or locked.
(j) Typewriter ribbons used in the preparation of classified
information will be safeguarded in the manner appropriate for the degree
of classification involved. Cloth ribbons are considered insecure until
both upper and lower lines have been cycled through the typewriter at
least twice. Carbon paper or film ribbons are insecure at all times
since the imprint thereon cannot be obliterated and such ribbon must be
destroyed as classified waste. Insecure ribbons will not be left in
typewriters overnight but will be stored in appropriate classified
container.
18 CFR 3a.61 Accountability For Classified Material
18 CFR 3a.71 Accountability for classified material.
(a) The Office of Administrative Operations is the central control
registry for the receipt and dispatch of classified material in the
Washington office and maintains the accountability register of all
classified material. In addition, each Regional Engineer will maintain
an accountability register for classified material of which he has
custody.
(b) With the exception of the Chairman, Vice Chairman, and Executive
Director, no individual, bureau, or office is authorized to receive,
open, or dispatch classified material other than the authorized
personnel in OAO or the Regional Engineers. Classified material
received by other than the OAO or Regional Engineers will be delivered
promptly and unopened to the Security Officer or Regional Engineer in
order that it may be brought under accountable control.
(c) Each classified document received by or originating in the FPC
will be assigned an individual control number by the central control
registry, OAO. Control numbers will be assigned serially within a
calendar year. The first digit of the four-digit control number will
indicate the calendar year in which the document was originated or
received in the FPC. Control numbers assigned to top secret material
will be separate from the sequence for other classified material and
will be prefixed by the letters ''TS''. Examples:
9006 -- Sixth classified document controlled by the central control
registry in calendar year 1969.
TS 1006 -- Sixth Top Secret document controlled by the central
control registry in calendar year 1971.
(d) The accounting system for control of classified documents will be
effected through the use of FPC Form 55, Classified Document Control
Record and Receipt. This form will be used to:
(1) Register an accurate, unclassified description of the document;
its assigned control number; and the date it is placed under
accountability.
(2) Serve as the accountability register for classified material.
(3) Record all changes in status or custody of the document during
its classification life or the period it is retained under
accountability in the FPC.
(4) Serve as the principal basis for all classified document
inventory and tracer actions.
(5) Serve as a receipt for the central control registry when the
document is transferred.
(e) For Top Secret documents only, an access register, FPC Form 1286,
Top Secret Access Record, for recording the names of all individuals
having access to the document, will be prepared in addition to FPC Form
55. In addition, a physical inventory of all Top Secret documents will
be conducted during June of each year by the Top Secret Control Officer
and witnessed by a staff member holding a Top Secret clearance.
(f) When classified documents are regraded, declassified, or
destroyed, the change in status will be recorded in the file copy of FPC
Form 55 in the central control registry.
(g) Classified documents will not be reproduced by any means except
on the specific written authority of the FPC Security Officer.
(h) In the Washington Office, classified material will be destroyed
by OAO and will be accomplished by burning in the presence of a
destroying official and a witnessing official. Destroying and
witnessing officials will be alternate Security Officers from OAO. A
record of destruction of each classified document will be maintained on
FPC Form 1285. Classified Document Destruction Certificate. In
addition, the date of destruction and the destruction certificate number
will be recorded on the file copy of FPC Form 55 in the central control
registry. The original signed copy of the destruction certificate will
be retained in the central control registry. The duplicate copy will be
retained by the destroying official. Regional Engineers will follow
these instructions for destruction of classified material in their
possession, except that the destroying official shall be the Regional
Engineer and the witnessing official shall be any other individual
having appropriate security clearance.
(i) It is the responsibility of any staff member who has knowledge of
the loss or possible compromise of classified information immediately to
report the circumstances to the Director, OAO. The Director, OAO, will
notify the originating Department and any other interested Department of
the loss or possible compromise in order that a damage assessment can be
conducted. An immediate inquiry will be initiated by the Director, OAO,
for the purpose of taking corrective action and for recommendations to
the chairman, through the Review Committee, for appropriate
administrative, disciplinary, or legal action.
18 CFR 3a.71 Transmittal of Classified Material
18 CFR 3a.81 Transmittal of classified material.
(a) A continuous receipting system, using copies of FPC Form 55, will
record all transfers of classified items between elements or officials
within the FPC. Receipts for transmittal of classified items from the
central registry to the first recipient will be acknowledged on copy
number one (original) of FPC Form 55. This copy will be returned to and
become part of the central register, where it will remain as an active
record until the item is either destroyed or transmitted outside the FPC
control registry system. Receipts for subsequent transmittals through
the FPC will be recorded on the remaining copies of FPC Form 55.
(b) A recipient will acknowledge receipt and assumption of custody of
classified material exactly as it is described on FPC Form 55. If it is
determined that parts are missing, it is incorrectly numbered, or
otherwise recorded in error on FPC Form 55. The recipient will not sign
for the material but will return it promptly to the transmitting
element, notifying them accordingly.
(c) Whenever a classified or protected document is being internally
transmitted, or is in use, it will be covered by either FPC Label 19,
Top Secret Cover Sheet (yellow); FPC Label 20, Secret Cover Sheet
(red); FPC Label 21, Confidential Cover Sheet (blue), or FPC Label 22,
Official Use Only (Limited Official Use) green. In addition, the red
back sheet, FPC Label 23, will be used. With the exception of the FPC
Form 55, no transmittal paper or other material will be placed over the
label, and no writing will be applied thereon.
(d) The transmission or transfer of custody of classified material
outside of the FPC Washington offices or the Regional Offices will be
covered by FPC Form 1284, Classified Document Receipt and/or Tracer,
prepared in duplicate (one post card and one paper copy). The post card
will be enclosed, along with the material being transferred, in the
inner envelope, wrapping or container, and the paper copy retained in
the central registry pending return of the signed post card.
(e) Classified material transmitted outside of the FPC Washington
offices or the Regional Offices will be dispatched in two opaque
envelopes or double wrapped in opaque wrapping paper. The outgoing
material will be prepared for transmission by:
(1) Preparing and enclosing an appropriate receipt (see paragraph (d)
of this section) in the inner envelope or wrapping.
(2) Addressing, return addressing, and sealing or taping the inner
envelope or wrapping.
(3) Marking the security classification and other required notations
on the front and back of the inner cover. If the nature of the contents
deem it necessary or advisable, the inner cover may be marked with the
following or a similar notation ''To Be Opened By Addressee Only.'' When
this notation is used, an appropriate ''Attention'' line must be
contained in the address on the outer envelope to insure delivery to the
intended recipient.
(4) Enclosing the inner envelope or wrapping in an opaque outer
envelope wrapper containing the appropriate address information. These
outer covers will not contain any of the markings contained on the inner
cover. If the outer cover does not fully conceal the markings on the
inner envelope or wrapper, a sheet of plain paper should be folded
around the inner wrapper to conceal the markings.
(f) Transmittal of Top Secret information and material shall be
effected preferably by oral discussion in person between the officials
concerned. Otherwise the transmission of Top Secret information and
material shall be by specifically designated personnel, by State
Department diplomatic pouch, by a messenger-courier system especially
created for that purpose, over authorized communications circuits in
encrypted form or by other means authorized by the National Security
Council.
(g) Transmittal of material classified Secret or Confidential to any
addressee in the 48 contiguous States and the District of Columbia, the
State of Hawaii, the State of Alaska, the Commonwealth of Puerto Rico,
and Canadian Government installations by the FPC Washington offices or
the Regional offices will be by registered mail only. Transmittal
outside these specified areas will be as stated in paragraph C(2),
Appendix B, of the NSC Directive of May 17, 1972.
18 CFR 3a.81 Data Index System
18 CFR 3a.91 Data index system.
A data index system shall be established for Top Secret, Secret, and
Confidential information in selected categories prescribed by the
Interagency Classification Review Committee, in accordance with section
VII of the National Security Council Directive Governing the
Classification, Downgrading, Declassification, and Safeguarding of
National Security Information, May 17, 1972.
18 CFR 3a.91 PART 3b -- COLLECTION, MAINTENANCE, USE, AND DISSEMINATION OF RECORDS OF IDENTIFIABLE PERSONAL INFORMATION
18 CFR 3a.91 Subpart A -- General
Sec.
3b.1 Purpose.
3b.2 Definitions.
3b.3 Notice requirements.
3b.4 Government contractors.
3b.5 Legal guardians.
18 CFR 3a.91 Subpart B -- Standards for Maintenance and Collection of
Records
3b.201 Content of records.
3b.202 Collection of information from individuals concerned.
3b.203 Rules of conduct.
3b.204 Safeguarding information in manual and computer-based record
systems.
18 CFR 3a.91 Subpart C -- Rules for Disclosure of Records
3b.220 Notification of maintenance of records to individuals
concerned.
3b.221 Access of records to individuals concerned.
3b.222 Identification requirements.
3b.223 Fees.
3b.224 Requests to amend records and disputes thereon.
3b.225 Written consent for disclosure.
3b.226 Accounting of disclosures.
3b.227 Mailing lists.
18 CFR 3a.91 Subpart D -- Rules for Exemptions
3b.250 Specific exemptions.
Authority: Federal Power Act, as amended, sec. 309, 49 Stat.
858-859 (16 U.S.C. 825h); Natural Gas Act, as amended, sec. 16, 52
Stat. 830 (15 U.S.C. 717o); and Pub. L. 93-579 (88 Stat. 1896).
Source: Order 536, 40 FR 44288, Sept. 25, 1975, unless otherwise
noted.
18 CFR 3a.91 Subpart A -- General
18 CFR 3b.1 Purpose.
Part 3b describes the Federal Power Commission's program to implement
the provisions of the Privacy Act of 1974 (Pub. L. No. 93-579, 88 Stat.
1896) to allow individuals to have a say in the collection and use of
information which may be used in determinations affecting them. The
program is structured to permit an individual to determine what records
pertaining to him and filed under his individual name, or some other
identifying particular, are collected, maintained, used or disseminated
by the Commission, to permit him access to such records, and to correct
or amend them, and to provide that the Commission collect, use, maintain
and disseminate such information in a lawful manner for a necessary
purpose.
18 CFR 3b.2 Definitions.
In this part:
(a) Agency, as defined in 5 U.S.C. 551(1) as ''* * * each authority
of the Government of the United States, whether or not it is within or
subject to review by another agency, * * *'', includes any executive
department, military department, Government corporation, Government
controlled corporation, or other establishment in the executive branch
of the Government (including the Executive Office of the President), or
any independent regulatory agency (5 U.S.C. 552(e));
(b) Individual means a citizen of the United States or an alien
lawfully admitted for permanent residence;
(c) Maintain includes, maintain, collect, use, or disseminate;
(d) Record means any item, collection or grouping of information
about an individual that is maintained by an agency, including, but not
limited to, his education, financial transactions, medical history, and
criminal or employment history and that contains his name, or the
identifying number, symbol, or other identifying particular assigned to
the individual, such as a finger or voice print or a photograph;
(e) System of records means a group of any records under the control
of any agency from which information is retrieved by the name of the
individual or by some identifying number, symbol, or other identifying
particular assigned to the individual;
(f) Statistical record means a record in a system of records
maintained for statistical research or reporting purposes only and not
used in whole or in part in making any determination about an
identifiable individual, except as provided by section 8 of title 13 of
the United States Code;
(g) Routine use means, with respect to the disclosure of a record,
the use of such record for a purpose which is compatible with the
purpose for which it was collected; and
(h) Disclosure means either the transmittal of a copy of a record or
the granting of access to a record, by oral, written, electronic or
mechanical communication.
18 CFR 3b.3 Notice requirements.
(a) The Commission will publish at least annually in the Federal
Register a notice identifying the systems of records currently
maintained by the Commission. For each system of records, the notice
will include the following information:
(1) The name and location of the system;
(2) The categories of individuals on whom records are maintained in
the system;
(3) The categories of records maintained in the system;
(4) The specific statutory provision or executive order, or rule or
regulation issued pursuant thereto, authorizing the maintenance of the
information contained in the system;
(5) Each routine use of the records contained in the system,
including the categories of users and the purposes of such use;
(6) The policies and practices regarding the storage, retrievability,
access controls, and retention and disposal of the records;
(7) The title and business address of the Commission official who is
responsible for the system of records;
(8) The procedures whereby an individual can be notified at his
request if the system of records contains a record pertaining to him;
(9) The procedures whereby an individual can be notified at his
request how he can gain access to any record pertaining to him contained
in the system of records, and how he can contest its contents; and
(10) The categories of sources of records in the system.
(b) At least thirty days prior to its operation, the Commission will
publish in the Federal Register a notice of its intention to establish a
new system of records reciting the information required pursuant to
paragraphs (a) (1) through (10) of this section and notice of any major
change to an existing system.
(c) The Commission will publish in the Federal Register a notice of
its intention to establish any new or intended routine use of the
information in an existing system of records at least thirty days prior
to the disclosure of the record for that routine use. A new routine use
is one which involves disclosure of records for a new purpose compatible
with the purpose for which the record is maintained or which involves
disclosure to a new recipient or category of recipients. At a minimum,
the notice will contain the following information:
(1) The name of the system of records for which the routine use is to
be established;
(2) The authority authorizing the maintenance of the information
contained in the system;
(3) The categories of records maintained in the system;
(4) The proposed routine use(s);
(5) The categories of recipients for each proposed routine use; and
(6) Reference to the public notice in the Federal Register under
which the existing system had already been published.
18 CFR 3b.4 Government contractors.
Systems of records operated by a contractor, pursuant to a contract,
on behalf of the Commission, which are designed to accomplish a
Commission function, are considered, for the purposes of this part, to
be maintained by the Commission. A contract covers any contract,
written or oral, subject to the Federal Procurement Regulations. The
contractual instrument will specify, to the extent consistent with the
Commission's authority to require it, that the systems of records be
maintained in accordance with the requirements of this part.
18 CFR 3b.5 Legal guardians.
For the purposes of this part, the parent of any minor, or the legal
guardian of any individual who has been declared to be incompetent due
to physical or mental incapacity or age by a court of competent
jurisdiction, may act on behalf of the individual.
18 CFR 3b.5 Subpart B -- Standards for Maintenance and Collection of Records
18 CFR 3b.201 Content of records.
(a) All records which are maintained by the Commission in a system of
records will contain only such information about an individual that is
relevant and necessary to accomplish a purpose of the Commission as
required to be accomplished by statute or by executive order of the
President. Pursuant to 3b.3(a)(4) of this part, the Commission will
identify in the Federal Register the specific provisions in law which
authorize it to maintain information in a system of records. In
determining the relevance and necessity of records, the following
considerations will govern:
(1) Whether each item of information relates to the purposes, in law,
for which the system is maintained;
(2) The adverse consequences, if any, of not collecting the
information;
(3) Whether the need for the information could be met through the
maintenance of the information in a non-individually identifiable form;
(4) Whether the information in the record is required to be collected
on every individual who is the subject of a record in the system or
whether a sampling procedure would suffice;
(5) The length of time it is necessary to retain the information;
(6) The financial cost of maintaining the record as compared to the
adverse consequences of not maintaining it; and
(7) Whether the information, while generally relevant and necessary
to accomplish a statutory purpose, is specifically relevant and
necessary only in certain cases.
(b) All records which the Commission maintains in a system of records
and which are used to make a determination about an individual will be
maintained with such accuracy, relevance, timeliness, and completeness
as is reasonably necessary to assure fairness to the individual in the
determination. Where practicable, in questionable instances,
reverification of pertinent information with the individual to whom the
record pertains may be appropriate. In pursuit of completeness in the
collection of information, the Commission will limit its records to
those elements of information which clearly bear on the determination
for which the records are intended to be used, assuring that all
elements necessary to the determination are present before the
determination is made.
(c) Prior to disseminating any records in a system of records, the
Commission will make reasonable efforts to assure that such records are
as accurate, relevant, timely, and complete as appropriate for the
purposes for which they are collected and/or maintained, except when
they are disclosed to a member of the public under the Freedom of
Information Act, 5 U.S.C. 552, as amended, or to another agency.
(d) No records of the Commission in a system of records shall
describe how any individual exercises his First Amendment rights unless
expressly authorized by statute or by the individual about whom the
record is maintained or unless pertinent to and within the scope of an
authorized law enforcement activity. The exercise of these rights
includes, but is not limited to, religious and political beliefs,
freedom of speech and of the press, and freedom of assembly and
petition. In determining whether or not a particular activity
constitutes the exercise of a right guaranteed by the First Amendment,
the Commission will apply the broadest reasonable interpretation.
18 CFR 3b.202 Collection of information from individuals concerned.
(a) Any information collected by the Commission for inclusion in a
system of records which may result in adverse determinations about an
individual's rights, benefits, and privileges under Federal programs,
will, to the greatest extent practicable, be collected directly from the
subject individual (see paragraph (d) of this section).
(b) The Commission will inform each individual whom it asks to supply
information about himself, on the form which it uses to collect the
information, or on a separate sheet that can be easily retained by the
individual, in language which is explicit, informative, and easily
understood, and not so lengthy as to deter an individual from reading
it, of:
(1) The specific provision of the statute or executive order of the
President, including the brief title or subject of that statute or order
which authorizes the solicitation of the information; whether
disclosure of such information is mandatory or voluntary; and whether
the Commission is authorized or required to impose penalties for failing
to respond;
(2) The principal purpose or purposes for which the information is
intended to be used;
(3) The routine uses which may be made of the information, as
described in the Federal Register in the notice of the system of records
in which the information is maintained, and which are relatable and
necessary to a purpose described pursuant to paragraph (b)(2) of this
section; and
(4) The effects (beneficial and adverse) on the individual if any, of
not providing all or any part of the requested information.
(c) Social security numbers will not be required from individuals
whom the Commission asks to supply information unless the disclosure of
the number is required by Federal statute or unless disclosure is to the
Commission maintaining a system of records in existence and operating
before January 1, 1975, if such disclosure was required pursuant to a
statute or regulation adopted prior to such date to verify the identity
of an individual. When an individual is requested to disclose his
social security number to the Commission, he will be informed under what
statutory or other authority such number is solicited, what uses will be
made of it, whether disclosure is mandatory or voluntary, and if it is
mandatory, under what provisions of law or regulation.
(d) The use of third-party sources to collect information about an
individual may be appropriate in certain circumstances. In determining
when the use of third-party sources would be appropriate, the following
considerations will govern:
(1) When the information needed can only be obtained from a third
party;
(2) When the cost of collecting the information directly from the
individual concerned far exceeds the cost of collecting it from a third
party;
(3) When there is little risk that the information proposed to be
collected from the third party, if inaccurate, could result in an
adverse determination about the individual concerned.
(4) When there is a need to insure the accuracy of information
supplied by an individual by verifying it with a third party, or there
is a need to obtain a qualitative assessment of the individual's
capabilities or character; or
(5) When there are provisions for verifying any third-party
information with the individual concerned before making a determination
based on that information.
Third party sources, where feasible, will be informed of the purposes
for which information which they are asked to provide will be used. In
appropriate circumstances, pursuant to 5 U.S.C. 552a(k) (2), (5), and
(7), the Commission may assure a third party that his identity will not
be revealed to the subject of the collected information.
18 CFR 3b.203 Rules of conduct.
(a) The Executive Director of the Commission has the overall
administrative responsibility for implementing the provisions of the
Privacy Act of 1974 and overseeing the conduct of all Commission
employees with respect to the act.
(b) It is the responsibility of the Comptroller of the Commission,
under the guidance of the Executive Director, to prepare the appropriate
internal administrative procedures to assure that all persons involved
in the design, development, or operation of any system of records, or in
collecting, using, or disseminating any individual record, and who have
access to any system of records, are informed of all rules and
requirements of the Commission to protect the privacy of the individuals
who are the subjects of the records, including the applicable provisions
of the FPC Standards of Conduct for Employees, Special Government
Employees and Commissioners, specifically 18 CFR 3.207(e) and 3.228(d).
(c) The Director, Office of Personnel Programs, is responsible for
establishing and conducting an adequate training program for such
persons whose official duties require access to and collection,
maintenance, use, and dissemination of such records.
(d) The General Counsel of the Commission is responsible for
providing legal interpretation of the Privacy Act of 1974, and for
preparing all agency rules and notices for official publication in
compliance with the act.
(e) Commission employees will be informed of all the implications of
their actions in this area, including especially:
(1) That there are criminal penalties for knowing and willful
unauthorized disclosure of material within a system of records; for
willful failure to publish a public notice of the existence of a system
of records; and for knowingly and willfully requesting or obtaining
records under false pretenses;
(2) That the Commission may be subject to civil suit due to failure
to amend an individual's record in accordance with his request or
failure to review his request in conformity with 3b.224; refusal to
comply with an individual's request of access to a record under 3b.221;
willful or intentional failure to maintain a record accurately pursuant
to 3b.201(b) and consequently a determination is made which is adverse
to the individual; or willful or intentional failure to comply with any
other provision of the Privacy Act of 1974, or any rule promulgated
thereunder, in such a way as to have an adverse effect upon an
individual.
18 CFR 3b.204 Safeguarding information in manual and computer-based
record systems.
(a) The administrative and physical controls to protect the
information in the manual and computer-based record systems from
unauthorized access or disclosure will be specified for each system in
the Federal Register. The system managers, who are responsible for
providing protection and accountability of such records at all times and
for insuring that the records are secured in proper containers whenever
they are not in use or under direct control of authorized persons, will
be identified for each system of records in the Federal Register.
(b) Whenever records in the manual or computer-based record systems,
including input and output documents, punched cards, and magnetic tapes
or disks, are not under the personal control of an authorized person,
they will be stored in lockable containers and/or in a secured room, or
in alternative storage systems which furnish an equivalent or greater
degree of physical security. In this regard, the Commission may refer
to security guidelines prepared by the General Services Administration,
the Department of Commerce (National Bureau of Standards), or other
agencies with appropriate knowledge and expertise.
(c) Access to and use of records will only be permitted to persons
pursuant to 3b.221, 3b.224, and 3b.225. Access to areas where records
are stored will be limited to those persons whose official duties
require work in such areas. Proper control of data, in any form,
associated with the manual and computer-based record systems will be
maintained at all times, including maintenance of an accounting of
removal of the records from the storage area.
18 CFR 3b.204 Subpart C -- Rules for Disclosure of Records
18 CFR 3b.220 Notification of maintenance of records to individuals
concerned.
(a) Upon written request, either in person or by mail, to the
appropriate system manager specified for each system of records, an
individual will be notified whether a system of records maintained by
the Commission and named by the individual contains a record or records
pertaining to him and filed under his individual name, or some other
identifying particular.
(b) The system manager may require appropriate identification
pursuant to 3b.222, and if necessary, may request from the individual
additional information needed to locate the record which the individual
should reasonably be expected to know, such as, but not limited to, date
of birth, place of birth, and a parent's first name.
(c) When practicable, the system manager will provide a written
acknowledgement of the inquiry within ten days of receipt of the inquiry
(excluding Saturdays, Sundays and legal public holidays) and
notification of whether or not a system of records maintained by the
Commission and named by the individual contains a record pertaining to
him and filed under his individual name or some other identifying
particular. If the system manager is unable to provide an answer within
the ten-day period, he will so inform the individual in writing, stating
the reasons therefor (for good cause shown), and when it is anticipated
that notification will be made. Such an extension will not exceed
fifteen days from receipt of the inquiry (excluding Saturdays, Sundays,
and legal public holidays).
(d) For good cause shown, as used in all sections of this part,
includes circumstances such as the following: Where a search for and/or
collection of requested records from inactive storage, field offices, or
other establishments is required; where a voluminous amount of data is
involved; where information on other individuals must be separated or
expunged from the record; or where consultations are required with
other agencies or with others having a substantial interest in the
determination of the request.
18 CFR 3b.221 Access of records to individuals concerned.
(a) Upon written request, either in person or by mail, to the
appropriate system manager specified for each system of records, any
individual may gain access to records or information in a system of
records pertaining to him and filed under his individual name, or some
other identifying particular, to review and to have a copy made of all
or any portion thereof in a form comprehensible to him.
(b) A person of his own choosing may accompany the individual to whom
the record pertains when the record is disclosed (see 3b.222(e)).
(c) Before disclosure, the following procedure may apply:
Medical or psychological records will be disclosed directly to the
individual to whom they pertain unless, in the judgment of the system
manager, in consultation with a medical doctor or a psychologist, access
to such records could have an adverse effect upon the individual. When
the system manager and a doctor determine that the disclosure of such
information could have an adverse effect upon the individual to whom it
pertains, the system manager may transmit such information to a medical
doctor named by the requesting individual.
(d) The system manager will provide a written acknowledgement of the
receipt of a request for access within ten days of receipt (excluding
Saturdays, Sundays, and legal public holidays). Such acknowledgement
may, if necessary, request any additional information needed to locate
the record which the individual may reasonably be expected to know, and
may require appropriate identification pursuant to 3b.222 of this part.
No acknowledgment is required if access can be granted within the
ten-day period.
(1) If access can be granted, the system manager will notify the
individual, in writing, as to when, and whether access will be granted
in person or by mail, so that access will be provided within twenty days
of the receipt of the request (excluding Saturdays, Sundays, and legal
public holidays). If the system manager is unable to provide access
within twenty days of receipt of the request, he will inform the
individual in writing as to the reasons therefor (for good cause shown),
and when it is anticipated that access will be granted. If the expected
date of access indicated in the written notification to the individual
cannot be met, the system manager will advise the individual in writing
of the delay, the reasons therefor (for good cause shown), and of a
revised date when access will be granted. Such extensions will not
exceed thirty days from receipt of the request (excluding Saturdays,
Sundays, and legal public holidays).
(2) If access cannot be granted, the system manager will inform the
individual, in writing, within twenty days of receipt of the request
(excluding Saturdays, Sundays, and legal public holidays) of the refusal
of his request; the reasons for the refusal; the right of the
individual, within thirty days of receipt of the refusal, to request in
writing a review of the refusal by the Chairman of the Federal Power
Commission, 825 North Capitol Street, NE., Washington, DC 20426, or by
an officer designated by the Chairman pursuant to 3b.224(f); and the
right of the individual to seek advice or assistance from the system
manager in obtaining such a review.
(e) The Chairman, or officer designated pursuant to 3b.224(f), not
later than thirty days (excluding Saturdays, Sundays, and legal public
holidays) from the date of receipt of the individual's request for
review will complete such review, unless, for good cause shown, the
Chairman, or designated officer, extends the thirty-day period in
writing to the individual with reasons for the delay and the approximate
date on which the review is expected to be completed. Such an extension
will not exceed thirty-five days from receipt of the request for review
(excluding Saturdays, Sundays and legal public holidays). The Chairman,
or designated officer, will make one of the following determinations:
(1) Grant the individual access to the requested record and notify
the individual, in writing, as to when, and whether access will be
granted in person or by mail; or
(2) Inform the individual in writing of the refusal, the reasons
therefor, and the right of the individual to seek judicial review of the
refusal of his request for access.
(f)(1) The Commission will deny an individual access to the following
records pertaining to him:
(i) Information compiled in reasonable anticipation of a civil action
or proceeding;
(ii) Records listed in the Federal Register as exempt from certain
provisions of the Privacy Act of 1974, pursuant to subpart D of this
part; and
(iii) Records which may be required to be withheld under other
statutory provisions.
(2) The Commission will not deny an individual access to a record
pertaining to him because that record is permitted to be withheld from
members of the public under the Freedom of Information Act, 5 U.S.C.
552, as amended.
(g) Disclosure of an original record will take place in the presence
of the Commission representative having physical custody of the record.
18 CFR 3b.222 Identification requirements.
The appropriate system manager specified for each system of records
will require reasonable identification from individuals to assure that
records in a system of records are disclosed to the proper person.
Identification requirements will be consistent with the nature of the
records being disclosed.
(a) Disclosure of records to the individual to whom the record
pertains, or under whose name or some other identifying particular the
record is filed, in person, requires that the individual show an
identification card. Employee identification, a Medicare card, or a
driver's license are examples of acceptable identification. Documents
incorporating a picture and signature of the individual are preferred.
(b) For records disclosed by mail, the system manager will require
certain minimum identifying information: name, date of birth, or the
system's personal identifier if known to the individual. A comparison
of the signatures of the requester and those in the record will be used
to determine identity.
(c) If the system manager determines that the data in the record is
so sensitive that unauthorized access could cause harm or embarrassment
to the individual involved, a signed notarized statement asserting
identity or some other reasonable means to verify identity will be
required.
(d) If an individual can provide no suitable information or documents
for identification, the system manager will require a signed statement
from the individual asserting his identity and stipulating that the
individual understands that knowingly or willfully seeking or obtaining
access to records about an individual under false pretenses is a
misdemeanor punishable by a fine of up to $5,000.
(e) The system manager will require an individual who wishes to be
accompanied by another person when reviewing his records to furnish a
signed written statement authorizing discussion of his records in the
presence of the accompanying person.
(f) The appropriate identification requirements of this section may
be required by a system manager from an individual to whom a record does
not pertain who seeks access to the record pursuant to 3b.225 of this
part.
(g) No individual will be denied notification of maintenance of a
record pursuant to 3b.220 or access to a record pursuant to 3b.221
and 3b.224 for refusing to disclose a social security number.
(h) No verification of identity will be required of individuals
seeking notification of or access to records which are otherwise
available to a member of the public under the Freedom of Information
Act, 5 U.S.C. 552, as amended.
18 CFR 3b.223 Fees.
(a) Fees will be charged for the direct cost of duplication of
records in a system of records when copies are requested by the
individual seeking access to the records. Any person may obtain a copy
of the Commission's schedule of fees by telephone, by mail or by coming
in person to the office of the appropriate system manager who is
responsible for the protection and accountability of the desired record.
Requests for copies of requested records and payment therefor must be
made to the system manager. Fees will only be charged for costs of $2
or more.
(b) Where practicable, self-service duplication of requested
documents may also be made on duplicating machines by the person
requesting the records, on a reimbursable basis to the system manager,
in the presence of the Commission representative having physical custody
of the record. Where data has been extracted from one of the
Commission's systems of records on magnetic tape or disks, or computer
files, copies of the records of these files may be secured on a
reimbursable basis upon written request to the appropriate system
manager. The fee will vary for each requirement, depending on size and
complexity.
(c) No fee will be charged in the following instances:
(1) When the system manager determines that he can grant access to
records only by providing a copy of the record through the mail because
he cannot provide reasonable means for the individual to have access in
person;
(2) For search and review of requested records to determine if they
fall within the disclosure requirements of this part; and
(3) When the system manager makes a copy of the record as a necessary
part of the process of making it available for review.
(d) Except for requests made by Government agencies, certification of
copies of any official Commission record shall be accompanied by a fee
of $2 per document.
18 CFR 3b.224 Requests to amend records and disputes thereon.
(a) Upon written request, either in person or by mail, to the
appropriate system manager specified for each system of records, any
individual may amend records in a system of records pertaining to him
and filed under his individual name or some other identifying
particular. Such requests should contain identifying information needed
to locate the record, a brief description of the item or items of
information to be amended, and information in support of the request for
amendment. The individual may obtain assistance in preparing his
request to amend a record from the appropriate system manager.
(b) The system manager will provide a written acknowledgement of the
receipt of a request to amend within ten days of receipt (excluding
Saturdays, Sundays, and legal public holidays). Such an acknowledgement
may, if necessary, request any additional information needed to make a
determination which the individual may reasonably be expected to know,
and verification of identity consistent with 3b.222. The
acknowledgement will clearly describe the request and advise the
individual requesting the amendment when he may expect to be notified of
action taken on the request. No acknowledgement is required if the
request can be reviewed, processed, and the individual notified of
compliance or denial within the ten-day period.
(c) The system manager will complete the review and advise the
individual in writing of the results within twenty days of the receipt
of the request (excluding Saturdays, Sundays, and legal public
holidays). If the system manager is unable to complete the review
within twenty days of the receipt of the request, he will inform the
individual in writing as to the reasons therefor (for good cause shown)
and when it is anticipated that the review will be completed. If the
completion date for the review indicated in the acknowledgement cannot
be met, the system manager will advise the individual in writing of the
delay, the reasons therefor (for good cause shown), and of a revised
date when the review may be expected to be completed. Such extensions
will not exceed thirty days from receipt of the request (excluding
Saturdays, Sundays, and legal public holidays). The system manager will
take one of the following actions:
(1) Make the requested correction or amendment; so advise the
individual in writing; and, where an accounting of the disclosure of
the record was made pursuant to 3b.226, advise all previous recipients
of the record in writing of the fact that the amendment was made and the
substance of the amendment (see 3b.225(d)); or
(2) Inform the individual in writing of the refusal to amend the
record in accordance with the request; the reasons for the refusal
including any of the standards which were employed pursuant to paragraph
(d) of this section in conducting the review; the right of the
individual, within thirty days of receipt of the refusal, to request in
writing a review of the refusal by the Chairman of the Federal Power
Commission, 825 North Capitol Street, NE., Washington, DC 20426, or by
an officer designated by the Chairman pursuant to paragraph (f) of this
section; and the right of the individual to seek advice or assistance
from the system manager in obtaining such a review.
(d) In reviewing a record in response to a request to amend, the
system manager and the Chairman, or the officer he designates pursuant
to paragraph (f) of this section, shall assess the accuracy, relevance,
timeliness and completeness of the record. They shall consider the
record in terms of the criteria established in 3b.201 of this part.
(e) The Chairman, or officer designated pursuant to paragraph (f) of
this section, not later than thirty days (excluding Saturdays, Sundays,
and legal public holidays) from the date of receipt of the individual's
request for review, will complete such review, unless, for good cause
shown, the Chairman, or designated officer, extends the thirty-day
period in a writing to the individual with reasons for the delay and the
approximate date on which the review is expected to be completed. Such
an extension will not exceed thirty-five days from receipt of the
request for review (excluding Saturdays, Sundays, and legal public
holidays). The Chairman, or designated officer, will make one of the
following determinations:
(1) Make the correction in accordance with the individual's request
and proceed as in paragraph (c)(1) of this section; or
(2) Inform the individual in writing of:
(i) The refusal to amend the record in accordance with the request,
(ii) The reasons therefor, including any of the standards which were
employed pursuant to paragraph (d) of this section in conducting the
review;
(iii) The right of the individual to file with the Chairman, or
designated officer, a concise written statement setting forth the
reasons for his disagreement with the decision;
(iv) The fact that the statement of disagreement will be made
available to anyone to whom the record is subsequently disclosed,
together with the portion of the record which is disputed clearly noted,
and, with, at the discretion of the Chairman, or designated officer, a
brief statement by the Chairman, or designated officer, summarizing the
reasons for refusing to amend the record;
(v) Where an accounting of the disclosure of the record was made
pursuant to 3b.226 of this part, the fact that prior recipients of the
disputed record will be provided a copy of the individual's statement of
disagreement, with the portion of the record which is disputed clearly
noted, and, at the Chairman's or designated officer's discretion, the
statement summarizing the refusal to amend (see 3b.225(d)); and
(vi) The individual's right to seek judicial review of the refusal to
amend.
(f) The Chairman may designate, in writing, another officer of the
Commission to act in his capacity for the purposes of this part. The
officer will be organizationally independent of or senior to the system
manager who made the initial determination and will conduct a review
independent of the initial determination.
18 CFR 3b.225 Written consent for disclosure.
(a) The Commission will not disclose any record which is contained in
a system of records by any means of communication to any person, or to
any other agency, unless it has the written request by, or the prior
written consent of, the individual to whom the record pertains and under
whose individual name, or some other identifying particular, the record
is filed. The written request or consent should include, at a minimum,
the general purposes for or the types of recipients to whom disclosure
may be made. The fact that an individual is informed of the purposes
for which information will be used when information is collected
pursuant to 3b.202(b)(2) will not constitute consent.
(b) A written request or consent is not required if the disclosure
is:
(1) To those officers and employees of the Commission who have a need
for the record in the performance of their duties;
(2) Required under the provisions of the Freedom of Information Act,
5 U.S.C. 552, as amended;
(3) For a routine use as defined in 3b.2(g) of this part and as
described in the public notice for each system of records;
(4) To the Bureau of the Census for purposes of planning or carrying
out a census or survey or related activity pursuant to the provisions of
title 13 of the United States Code;
(5) To a recipient who has provided the appropriate system manager
specified for each system of records with advance adequate written
assurance that the record will be used solely as a statistical research
or reporting record, and the record is to be transferred in a form that
is not individually identifiable. The written statement of assurance
should include at a minimum:
(i) A statement of the purpose for requesting the record; and
(ii) Certification that the record will only be used for statistical
purposes.
In addition to stripping personally identifying information from
records released for statistical purposes, the system manager will
ensure that the identity of the individual cannot reasonably be deduced
or determined by combining various statistical records, or by reference
to public records or other available sources of information;
(6) To the National Archives of the United States, pursuant to 44
U.S.C. 2103, as a record which has sufficient historical or other value
to warrant its continued preservation by the United States Government,
or for the evaluation by the Administrator of General Services or his
designee to determine whether the record has such value;
(7) To another agency or to an instrumentality of any governmental
jurisdiction within or under the control of the United States for a
civil or criminal law enforcement activity if the activity is authorized
by law, and if the head of the agency or instrumentality, or his
delegated official, has made a written request to the appropriate system
manager specifying the particular portion of the record desired and the
law enforcement activity for which the record is being sought;
(8) To a person pursuant to a showing of compelling circumstances
affecting the health or safety of an individual (not necessarily the
individual to whom the record pertains), if, upon disclosure,
notification of such is sent to the last known address of the individual
to whom the record pertains;
(9) To either House of Congress, or to any committee or subcommittee
thereof, on a matter within its jurisdiction;
(10) To the Comptroller General, or any of his authorized
representatives, in the course of the performance of the duties of the
General Accounting Office; or
(11) Pursuant to the order of a court of competent jurisdiction.
(c) When a record is disclosed under compulsory legal process and
such process becomes a matter of public record, the system manager will
make reasonable efforts to notify the individual to whom the record
pertains. A notice will be sent to the individual's last known address
noted in the Commission's files.
(d) The appropriate system manager shall notify all prior recipients
of records, disclosure to whom an accounting was made pursuant to
3b.226, of any amendments made to the records, including corrections,
amendments and notations of dispute made pursuant to 3b.224(c)(1) and
3b.224(e)(1) and (2)(v), within ten days of receipt of the corrected
information or notation of dispute (excluding Saturdays, Sundays, and
legal public holidays), except under unusual circumstances (see
circumstances described in 3b.220(d)).
(e) The content of the records disclosed under this section shall be
maintained pursuant to the standards established in 3b.201(c).
18 CFR 3b.226 Accounting of disclosures.
(a) The appropriate system manager specified for each system of
records will keep an accurate written account of all disclosures of
records made to any person or to any other agency with the written
consent or at the written request of the individual to whom the record
pertains and pursuant to 3b.225(b)(3) through (11). The account will
include the following information:
(1) The date, nature, and purpose of each disclosure;
(2) The name and address of the person or agency to whom the
disclosure is made; and
(3) A reference to the justification or basis upon which the release
was made, including reference to any written document required as when
records are released for statistical or law enforcement purposes
pursuant to 3b.225(b) (5) and (7).
(b) Each system manager will retain the accounting made under
paragraph (a) of this section for at least five years from the date of
disclosure for which the accounting is made, or the life of the record,
which ever is longer.
(c) Except for disclosures made for law enforcement purposes pursuant
to 3b.225(b)(7), and unless the system of records has been exempted
from this provision pursuant to subpart D of this part, each system
manager will make the accounting made under paragraph (a) of this
section available to the individual named in the record at his written
request.
(d) The accounting of disclosures is not a system of records under
the definition in 3b.2(e) and no accounting will be maintained for
disclosure of the accounting of disclosures.
18 CFR 3b.227 Mailing lists.
An individual's name and address maintained by the Commission will
not be sold or rented for commercial or other solicitation purposes not
related to the purposes for which the information was collected, unless
such sale or rental is specifically authorized by law. This provision
shall not be construed to require the withholding of names or addresses
otherwise permitted to be made public, as pursuant to the Freedom of
Information Act, 5 U.S.C. 552, as amended.
18 CFR 3b.227 Subpart D -- Rules for Exemptions
18 CFR 3b.250 Specific exemptions.
Any system of records maintained by the Commission may be exempt from
certain provisions of the Privacy Act of 1974, and the appropriate
sections of this part promulgated pursuant thereto, if the following
requirements are met:
(a) The system of records falls within one or more of the following
categories:
(1) Records subject to the provisions of 5 U.S.C. 552(b)(1) as
classified material;
(2) Investigatory material compiled for law enforcement purposes
(except to the extent that the system is more broadly exempt under 5
U.S.C. 552a(j)(2) covering records maintained by an agency whose
principal function pertains to the enforcement of criminal laws)
provided, however, that is such record is used as a basis for denying an
individual any right, privilege, or benefit to which the individual
would be entitled in the absence of that record, the individual must be
granted access to that record except to the extent that access would
reveal the identity of a confidential source who furnished the
information to the Government under an express promise that his identity
would be held in confidence, or, prior to September 27, 1975, under an
implied promise that his identity would be held in confidence;
(3) Records maintained to provide protective services to the
President of the United States or other individuals pursuant to 18
U.S.C. 3056;
(4) Records required by statute to be maintained and used solely as
statistical records;
(5) Investigatory material compiled solely for determining
suitability, eligibility, or qualifications for Federal civilian
employment, military service, Federal contracts, or access to classified
information, but only to the extent that disclosure of such material
would reveal the identity of a source who furnished information to the
Government under an express promise that his identity would be held in
confidence, or, prior to September 27, 1975, under an implied promise
that his identity would be held in confidence;
(6) Testing or examination material used solely to determine
individual qualifications for appointment or promotion in the Federal
service the disclosure of which would compromise the objectivity or
fairness of the testing or examination process; or
(7) Material used to evaluate potential for promotion in the armed
services, but only to the extent that the disclosure of such material
would reveal the identity of a source who furnished the information to
the Government under an express promise that his identity would be held
in confidence, or, prior to September 27, 1975, under an implied promise
that his identity would be held in confidence;
(b) Publication in the Federal Register is made in accordance with
the requirements (including general public notice) of the Administrative
Procedure Act, 5 U.S.C. 553, to include, at a minimum:
(1) The name of the system of records;
(2) The specific provision or provisions of the Privacy Act of 1974,
and the appropriate sections of this part promulgated pursuant thereto,
from which the system is to be exempted; and
(3) The reasons for the exemption; and
(c) The system of records is exempted from one or more of the
following provisions of the Privacy Act and the appropriate sections of
this part promulgated pursuant thereto:
(1) 5 U.S.C. 552a(c)(3); 18 CFR 3b.226(c) -- Making the accounting
of disclosures available to the individual named in the record at his
request;
(2) 5 U.S.C. 552a(d); 18 CFR 3b.221, 3b.224 -- Granting an
individual the right of access to his records and permitting him to
request amendment of such;
(3) 5 U.S.C. 552a(e)(1); 18 CFR 3b.201(a) -- Requiring maintenance
of relevant and necessary information in a system of records as required
by statute or Executive order of the President;
(4) 5 U.S.C. 552a(e)(4)(G); 18 CFR 3b.3(a)(8) -- Requiring a
description of procedures for determining if a system contains a record
on an individual in the public notice of the system of records;
(5) 5 U.S.C. 552a(e)(4)(H); 18 CFR 3b.3(a)(9) -- Requiring a
description of procedures for gaining access to and contesting the
contents of a record in the public notice of the system of records;
(6) 5 U.S.C. 552a(e)(4)(I); 18 CFR 3b.3(a)(10) -- Requiring a
description of the categories of the sources of records in the public
notice of the system of records; and
(7) 5 U.S.C. 552a(f); 18 CFR 3b.220-3b.224 -- Requiring agency rules
for determining if an individual is the subject of a record, for
handling requests for access, for granting requests for access, for
amending records, and for fees.
18 CFR 3b.250 PART 3c -- STANDARDS OF CONDUCT
18 CFR 3b.250 Subpart A -- Standards of Conduct for Employees
Sec.
3c.1 Purpose.
3c.2 Coverage.
3c.3 Notice to employees.
3c.4 Definitions.
3c.5 Conflicts of interest.
3c.6 Ethical conduct.
3c.7 Statements of employment and financial interests.
3c.8 Interpretation and advisory service.
3c.9 Procedure for reviewing statements of employment and financial
interests and reporting conflicts of interest.
3c.10 Disciplinary and other remedial action.
3c.11 Miscellaneous statutes and regulations.
18 CFR 3b.250 Subpart B -- Standards of Conduct for Special Government
Employees
3c.101 Purpose.
3c.102 Coverage.
3c.103 Notice and receipt.
3c.104 Definitions.
3c.105 Classification of special Government employees.
3c.106 Conflicts of interest.
3c.107 Ethical conduct.
3c.108 Statements of employment and financial interests.
3c.109 Interpretation and advisory service.
3c.110 Procedure for reviewing statements of employment and financial
interests and reporting conflicts of interest.
3c.111 Disciplinary and other remedial action.
3c.112 Miscellaneous statutes and regulations.
18 CFR 3b.250 Subpart C -- Standards of Conduct for Commissioners
3c.201 Purpose.
3c.202 Coverage.
3c.203 Definitions.
3c.204 Conflicts of interest.
3c.205 Ethical conduct.
3c.206 Miscellaneous statutes and regulations.
Authority: E.O. 11222, 3 CFR 1964-1965 Comp., p. 306; 5 CFR
735.104.
Source: Order 532, 40 FR 29275, July 11, 1975, unless otherwise
noted. Redesignated by Order 564, 42 FR 17451, Apr. 1, 1977.
18 CFR 3b.250 Subpart A -- Standards of Conduct for Employees
18 CFR 3c.1 Purpose.
(a) The Commission recognizes that the maintenance of high standards
of honesty, integrity, impartiality of Commission employees is essential
to assure the proper performance of Commission business and the
maintenance of confidence by citizens in the integrity of their
Government. The avoidance of misconduct and conflicts of interest on
the part of Commission employees through informed judgment is
indispensable to the maintenance of these standards. The Commission,
acting under authority conferred by the Federal Power Act and pursuant
to sections 201(b) and 702 of Executive Order 11222 of May 8, 1965, 30
FR 6469 (3 CFR 1965 Supp., p. 130), as amended by Executive Order 11590
of April 22, 1971, 36 FR 7831, and the implementing regulations issued
by the Civil Service Commission, 30 FR 12529, 5 CFR part 735, issued
this subpart A to advise all Commission employees of the standards of
conduct each is expected to observe while employed by the Federal Power
Commission.
(b) The summaries of statutory provisions, such as the conflict of
interest provisions of 18 U.S.C. 201-218, which appear in this subpart A
are not intended and should not be construed as verbatim quotations of
the law. The statutes should be consulted in any situation in which
they might apply. Section 3c.11 contains a list of applicable statutes
and regulations for ready reference.
18 CFR 3c.2 Coverage.
This subpart A applies to Commission employees, whether on leave
without pay, sick leave or annual leave except to the extent that they
are expressly exempt from any of the specific provisions. It does not
apply to special Government employees and Commissioners. Special
Government employees are subject to the provisions of subpart B of part
3c of the Commission's Standard's of Conduct and Commissioners are
subject to the provisions of Executive Order 11222 and subpart C of this
part.
18 CFR 3c.3 Notice to employees.
Each employee shall be provided with a copy of this subpart A.
Employees shall be advised of this subpart A at least once each year and
shall be promptly informed of any change therein. New employees shall
be provided with a copy of this subpart A at the time of entrance on
duty. All employees shall complete FPC Form 1119, acknowledging receipt
of a copy of this subpart A in accordance with the provisions of 3c.7.
18 CFR 3c.4 Definitions.
(a) Conflict of interest means a situation in which an employee's
private interest, usually of an economic nature, conflicts or raises a
reasonable question of potential conflict with the efficient and
impartial conduct of his official duties and responsibilities. The
conflict is of concern whether it is real or only apparent.
(b) Employee means an officer or employee of the Federal Power
Commission but does not include a special Government employee or
Commissioners.
(c) Executive order means Executive Order 11222 of May 8, 1965 (30 FR
6469) as amended by Executive Order 11590 of April 22, 1971 (36 FR
7831).
(d) Member of employee's immediate household means blood relations of
the employee who are permanent residents of the employee's household.
(e) Official responsibility means the direct administrative or
operating authority, whether intermediate or final, and either
exercisable alone or with others, and either personally or through
subordinates, to approve, disapprove, or otherwise direct government
action. (18 U.S.C. 202(b))
(f) Person means an individual, a corporation, a company, an
association, a firm, a partnership, a society, a joint stock company, or
any other group, organization or institution.
(g) Serve means to render service, whether with or without
compensation.
(h) Special Government employee means a special Government employee
as defined in section 202(a) of title 18 U.S.C., who is employed by the
Commission.
The term special Government employee shall mean an officer or
employee of * * * any independent agency of the United States * * * who
is retained, designated, appointed, or employed to perform, with or
without compensation, for not to exceed 130 days during any period of
365 consecutive days, temporary duties either or a full-time or
intermittent basis, * * * (18 U.S.C. 202(a)).
18 CFR 3c.5 Conflicts of interest.
(a) Outside compensation in matters affecting the government. (1) An
employee shall not receive any salary or anything of monetary value from
a private source as compensation for his services to the Commission.
(18 U.S.C. 209)
(2) This prohibition does not prevent continued, participation in
bona fide pension, retirement, group life, health or accident insurance,
profit-sharing, stock bonus or other employee welfare or benefit plans
maintained by a former employer.
(3) An employee is prohibited from accepting any compensation, except
as provided by law for the proper discharge of official duties, for any
services rendered in relation to a particular matter in which the United
States is a party or has a direct and substantial interest. (18 U.S.C.
203)
(b) Financial interests. (1) An employee shall not:
(i) Have a direct or indirect financial interest that conflicts
substantially, or appears to conflict substantially, with his Commission
duties and responsibilities.
(ii) Engage, directly or indirectly, in a financial transaction as a
result of, or primarily relying on, information obtained through his
Commission employment.
(iii) These financial interests also include interests of the
employee's spouse, minor child or member of his immediate household.
(2) An employee is prohibited, under penalty of fine or imprisonment,
from participating personally and substantially as a Government officer
or employee in any matter in which, to his knowledge, he, his spouse,
minor child, partner, organization in which he is serving as officer,
director, trustee, partner or employee, or person with whom he is
negotiating for employment, has a financial interest. However, this
prohibition does not apply if, prior to such participation, and upon
complete disclosure of the financial interest, the Chairman1014 of the
Commission determines that the employee's interest is not so substantial
as to affect the employee's services to the Commission. (18 U.S.C. 208)
(3)(i) An employee or the spouse, minor child, or member of the
immediate household of an employee shall not own, directly or
indirectly, or participate in the purchase of any securities of any
public utility, licensee, or natural gas company subject to the
jurisdiction of the Commission. This prohibition shall also apply to
securities of parent companies having jurisdictional subsidiaries or
subsidiaries of jurisdictional parent companies. The prohibition shall
not apply to investments in mutual funds or private investment groups
where an employee or the spouse, minor child, or member of the immediate
household of an employee does not have the right to participate in or
control management decisions relating to what securities will be held in
the funds. The prohibition shall not apply to investments in mutual
savings banks.
(ii) All employees shall report such securities and security
acquisitions on appropriate forms in the manner and at the time
specified in 3c.7 (a), (b), and (d).
(iii) Such securities, regardless of the manner of acquisition, shall
be disposed of promptly upon request by the Director, Office of
Personnel Programs. Disposition of securities shall include sale of the
securities or transfer of title of the securities into a blind trust
which denies control and knowledge to the grantor of the securities held
in trust. Should an employee decide to dispose of securities through a
blind trust agreement it must first be approved by the Director of the
Office of Personnel Programs upon review and advice of the General
Counsel.
(iv) All employees shall submit reports on appropriate forms in the
manner and at the time specified in 3c.7 (a), (b), and (d) regarding:
(A) Any securities presently held directly or indirectly by the
employee or his spouse, minor child, or member of his immediate
household, in an enterprise whose status under the Federal Power Act or
Natural Gas Act comes before the Commission for determination.
(B) Any securities owned by or personal interest of the employee or
his spouse, minor child, or member of his immediate household in any
person, firm, association, or corporation intervening on a matter before
the Commission to which the employee has been assigned to work.
(c) Gifts, entertainment, loans and favors. (1) Unless permitted by
paragraph (c)(2) of this section, no employee shall solicit or accept,
directly or indirectly, any gift, gratuity, favor, entertainment, loan
or any other thing of monetary value, from any person who:
(i) Has or is seeking to obtain, approval or denial by the Commission
of actions required under statute, or the Commission's rules and
regulations; or
(ii) Conducts operations or activities which are regulated by the
Commission or concerning which determinations of status are pending
before the Commission; or
(iii) Has, or is seeking to obtain, contractual or other business or
financial relations with the Commission; or
(iv) Has interests which may be substantially affected by the
performance or nonperformance of the employee's official duty; or
(v) Is in any way attempting to influence the employee's official
actions.
(2) The requirements of paragraph (c)(1) of this section do not apply
to:
(i) Obvious family or personal relationships where circumstances make
it clear that it is those relationships rather than the business of the
persons concerned which are the motivating factors -- the clearest
illustration being the parents, children, or spouses of employees.
(ii) Acceptance of food and refreshments of nominal value on
infrequent occasions in the course of a luncheon, dinner, or other
meeting or on an inspection tour where an employee may properly be in
attendance. Employees on an inspection tour may also accept necessary
arrangements for travel and lodging when no other reasonable
alternatives are available.
(iii) Acceptance of loans from banks or other financial institutions
on customary terms to finance proper and usual activities of the
employee, such as, for example, home mortgage loans.
(iv) Acceptance of unsolicited advertising or promotional material of
nominal intrinsic value such as pens, pencils, note pads, calendars, and
other similar items.
(3) An employee shall not:
(i) Solicit a contribution from another employee for a gift to an
official superior;
(ii) Make a donation as a gift to an official superior; or
(iii) Accept a gift from an employee receiving less pay than himself
(5 U.S.C. 7351).
(4) The prohibitions of paragraphs (c) (1), (2), and (3) of this
section are not intended to prohibit voluntary gifts or donations of
nominal value made to an employee on a special occasion such as
marriage, illness, resignation or retirement.
(5) An employee shall not accept a gift, present, decoration, or any
other thing from a foreign government unless authorized by Congress as
provided by the Constitution and in Pub. L. 89-673, 80 Stat. 952.
(d) Representation of others. (1) During Commission employment. An
employee is prohibited, except as permitted in the proper discharge of
his official duties or by express statutory exemption, from acting with
or without compensation as agent or attorney before a court or
Government agency in a matter in which the United States is a party or
has a direct and substantial interest. (18 U.S.C. 203 and 205) This
prohibition does not prevent an employee from;
(i) Representing any person without compensation in disciplinary,
loyalty, or other personnel matters, when not inconsistent with faithful
performance of duty;
(ii) Representing, with or without compensation, a parent, spouse,
child, or person or estate he serves as fiduciary, on matters in which
the United States is a party or has an interest except matters subject
to the employee's official responsibility or in which the employee has
participated personally and substantially, if the employee has first
obtained the express written approval of the Chairman of the Commission.
2015
(iii) Giving testimony under oath or making statements required to be
made under penalty for perjury and contempt. (18 U.S.C. 205)
(2) Following termination of Commission employment. (i) An employee
shall not, after his employment has ceased, knowingly act as agent or
attorney for anyone other than the United States in any matter involving
a specific party or parties in which the United States is a party or has
a direct and substantial interest and in which the employee participated
personally and substantially during his Commission employment. (18
U.S.C. 207(a))
(ii) An employee shall not, within 1 year after his Commission
employment has ceased, appear personally before any court or Government
agency as agent or attorney for any one other than the United States in
any matter involving a specific party or parties in which the United
States is a party or has a direct and substantial interest which was
under his official responsibility as a Commission employee at any time
within 1 year prior to the termination of such responsibility. (18
U.S.C. 207(b))
(3) Section 385.2103 of this chapter prohibits a former employee from
acting as attorney, expert witness or representative in connection with
any proceeding before the Commission in which the employee participated
during his service with the Commission unless such appearance is
expressly authorized by the Commission upon a verified showing that it
would not be contrary to the public interest and unethical or
prejudicial to the interests of the Commission or in violation of (d)(2)
(i) and (ii), supra.
(e) Outside employment. (1) Incompatible activities. An employee
shall not engage in outside activity not compatible with the full and
proper discharge of the duties and responsibilities of his Commission
employment. Incompatible outside employment and activities include but
are not limited to:
(i) Outside employment by a public utility, licensee, or natural gas
company subject to the jurisdiction of the Commission, or by a parent
corporation of any of the foregoing, or by a person whose status under
the Federal Power Act or the Natural Gas Act is before the Commission
for determination; or by a person in any Commission proceeding; or
granted intervention; or
(ii) Acceptance of a fee, compensation, gift, payment of expense, or
any other thing of monetary value in circumstances in which acceptance
may result in, or create the appearance of, a conflict of interest; or
(iii) Outside employment which tends to impair the mental or physical
capacity of the employee to perform his Commission duties and
responsibilities in an acceptable manner; or
(iv) Outside employment under conditions or arrangements that may
involve violation of law. See 3.211 for a list of the main, relevant
statutes and regulations. But see section 209(c) (16 U.S.C. 824(c)),
Federal Power Act, and section 17(c), (15 U.S.C. 717p), Natural Gas Act,
regarding availability to States of Commission experts as witnesses.
(2) Teaching, lecturing, writing. Employees are encouraged to engage
in teaching, lecturing, and writing that is not prohibited by law, the
Executive Order, or the regulations in this subpart C.
(i) Employees shall not, either for or without compensation, engage
in teaching, lecturing, or writing, including teaching, lecturing, or
writing for the purpose of the special preparation of a person or class
of persons for an examination of the Civil Service Commission or of the
Board of Examiners for the Foreign Service, that is dependent on
information obtained as a result of Commission employment, except when
that information has been made available to the general public or will
be made available on request or when the Executive Director has given
written authorization for the use of nonpublic information on the basis
that the use is in the public interest. For additional requirements and
procedures relating to the misuse and disclosure of information see
3c.6(b).
(ii) Employees shall not receive compensation or anything of monetary
value for any consultation, lecture, discussion, writing or appearance,
the subject matter of which is devoted substantially to the
responsibilities, programs, or operations of the Commission.
(3) An employee may not receive nongovernment reimbursement for
travel or expenditures on official business.
(4) Limitations on prohibitions of paragraphs (e)(1), (2), and (3) of
this section. The prohibitions of paragraphs (e)(1), (2), and (3) of
this section do not preclude an employee from:
(i) Participation in the affairs of or acceptance of an award for a
meritorious public contribution or achievement given by a charitable,
religious, professional, social, fraternal, nonprofit educational and
recreational, public service, or civic organization.
(ii) Participation in the activites of national or state political
parties not proscribed by law. But see 3.211(d) for reference to the
prohibitions against political activity.
(5) Procedure for reporting outside employment. Employees who are
presently employed or intend to engage in any outside employment shall
report this information on appropriate forms in the manner and at the
time specified in 3c.7(a)(1). Any employee who is uncertain of the
propriety of any prospective outside employment under the provisions of
this subpart C shall submit an inquiry regarding the matter to the
Agency Counselor in accordance with the provisions of 3c.8.
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
0141As the Government official responsible for appointment of the
employee to his position. In the case of Commissioners this
determination is made by the President as the appointing official. In
the case of personnel employed regularly and full time in the immediate
office of a Commissioner other than the Chairman, the determination is
made by that Commissioner.
0152As the government official responsible for appointment of the
employee to his position. In the case of personnel employed regularly
and full time in the immediate office of a Commissioner other than the
Chairman, the determination is made by that Commissioner.
18 CFR 3c.6 Ethical conduct.
(a) Use of Government property. An employee shall not directly or
indirectly use, or allow the use of, Government property of any kind,
including property leased to the Government, for other than officially
approved activities. An employee has a positive duty to protect and
conserve Government property, including equipment, supplies, and other
property entrusted or issued to him.
(b) Misuse of information. An employee shall not use inside
information obtained as a result of his Commission employment for
private gain for himself or another person either by direct action on
his part or by counsel, recommendation, or suggestion to another person,
particularly one with whom he has family, business, or financial ties.
Inside information means information obtained under Commission authority
which has not become part of the body of public information.
(c) Part 388 of this chapter sets up the procedures for making
available to the public information in the public files and records of
the Commission and specifies the particular files and records which are
not generally available to the public. Section 388.107 of this chapter
defines the responsibilities of employees when served with a subpoena
duces tecum and outlines the procedures to be followed when the material
sought is not part of the public files and records of the Com- mission.
(d) Section 301(b) (16 U.S.C. 825(c)), of the Federal Power Act and
section 8(b) (15 U.S.C. 717g) of the Natural Gas Act prohibit any
employee, in the absence of Commission or court direction, from
divulging any fact or information which may come to his knowledge during
the course of examination of books or other accounts.
(e) The nature and time of any proposed action by the Commission are
confidential and shall not be divulged to anyone outside the Commission.
The Secretary of the Commission has the exclusive responsibility and
authority for authorizing the initial public releases of information
concerning Commission actions or decisions.
(f) Section 385.2201 states the prohibitions against ex parte
communications in on-the-record proceedings to Commissioners, members of
their personal staffs, administrative law judges or other employees
participating in the decision in such proceedings.
(g) Indebtedness. Employees shall pay each just financial obligation
in a proper and timely manner especially one imposed by law such as
Federal, State or local taxes. A just financial obligation means one
acknowledged by the employee or reduced to judgment by a court or one
imposed by law such as Federal, State or local taxes, and in a proper
and timely manner means in a manner which the Commission determines does
not, under the circumstances, reflect adversely on the Government as his
employer. In the event of dispute between an employee and an alleged
creditor, the Commission shall not be required to determine the validity
or amount of the disputed debt. Each employee should arrange his
personal financial affairs to avoid any request to the Commission for
administrative action to assist in the collection of debts.
(h) Gambling, betting, and lotteries. An employee shall not
participate, while on government-owned or leased property or while on
duty for the Government, in any gambling activity, including the
operation of a gambling device, in conducting a lottery or pool, in a
game for money or property, or in selling or purchasing a numbers slip
or ticket. This paragraph does not preclude fund-raising activities by
employee organizations under section 3 of Executive Order 10927, March
18, 1961, 26 FR 2383.
(i) General conduct. (1) Employees shall conduct themselves in such
a manner that the work of the Commission is effectively accomplished and
shall also observe the requirements of courtesy, consideration, and
promptness in dealing with or serving the public.
(2) Employees shall avoid any action, whether or not specifically
prohibited by 3c.5 and 3c.6 which might result in or create the
appearance of:
(i) Using public office for private gain; or
(ii) Giving preferential treatment to any person; or
(iii) Losing complete independence or impartiality of action; or
(iv) Making a government decision outside official channels; or
(v) Impeding government efficiency or economy; or
(vi) Affecting adversely the confidence of the public in the
integrity of the government and the Federal Power Commission.
(j) Employees shall not engage in criminal, infamous, dishonest,
immoral, or notoriously disgraceful conduct, or other conduct
prejudicial to the government and to the Commission.
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
18 CFR 3c.7 Statements of employment and financial interests.
(a) Forms. A copy of each of the following forms is appended to this
subpart A. 3 016
(1) FPC Form 498 -- Confidential Statement of Employment and
Financial Interest.
(2) FPC Form 1119 -- Acknowledgment of Receipt of Standards of
Conduct.
(b) Place of submission. All FPC forms listed in paragraph (a)
section shall be submitted to the Office of Personnel Programs.
(c) Commissioners are not required to submit. Commissioners are
subject to separate reporting requirements established under section 401
of the Executive Order and are therefore not required to submit FPC
Forms 709, 1119 and 498.
(d) Employees required to submit; time of submission. (1) FPC Form
498 Confidential Statement of Employment and Financial Interest. All
employees shall submit FPC Form 498:
(i) At the time of entrance on duty.
(ii) Within 30 days of the date of acquisition by the employee,
employee's spouse, minor child, or member of the employee's immediate
household of any security.
(iii) On June 30 of each year for the purpose of annual review.
Where there are not changes in or additions to the original information
submitted, a negative report shall be filed.
(iv) Notwithstanding the filing of the annual report required by this
section, each employee shall at all times avoid acquiring a financial
interest that could result, or taking an action that could result in a
violation of the conflicts of interest provisions of 3c.5.
(2) FPC Form 709 -- Report of outside employment. All new employees
are required to submit FPC Form 709, at the time of entrance on duty.
All employees engaged in outside employment on the effective date of
this subpart C shall submit FPC Form 709 within 30 days thereafter. All
employees, who engage in outside employment after the effective date of
this subpart C shall submit FPC Form 709 on or before the time of
entering upon such outside employment. See 3c.5(e)(5).
(3) FPC Form 1119-Acknowledgment of Receipt of Standards of Conduct.
All employees shall within 5 days after receipt of a copy of this
subpart A, as provided in 3c.3 sign FPC Form 1119 and return it to the
Director, Office of Personnel Programs.
(e) Confidentiality. The Executive Director, the Director, Office of
Personnel Programs, and the Agency Counselor shall be responsible for
keeping all FPC Forms listed in paragraph (a) of this section strictly
confidential and shall not grant access to, or permit disclosure of
information from, these forms except to carry out the purpose of these
regulations. Information contained thereon will not be disclosed except
in accordance with the regulations of the Civil Service Commission or on
a determination of good cause made by the Chairman of the Federal Power
Commission or except as provided by law.
(f) Interests of employee's relatives. The interest of a spouse,
minor child, or other member of an employee's immediate household (as
defined in 3.204(d)) is considered to be an interest of the employee.
(g) Effect of submission of forms on other requirements. Submission
of any FPC forms listed in paragraph (a) of this section is in addition
to, and not in substitution for, or in derogation of, any similar
requirement imposed by law, order, or regulation. An em- ployee's
submission of any of these forms does not permit him or any other person
to participate in a matter which his or the other person's participation
is prohibited by law, order, or regulation.
(h) Information not required. An employee is not required to supply
information relating to his connection with, except employment required
to be reported under 3c.5(e) or interest in, a professional society or
a charitable, religious, social, fraternal, recreational, public
service, civic, or political organization or any similar organization
not conducted as a business enterprise and which is not engaged in the
ownership or conduct of a business enterprise. Educational and other
institutions doing research and development or related work involving
grants of money from or contracts with the Government are deemed
business enterprises and are required to be included. Information
showing the value of securities, other financial interests, and real
property and the amount of indebtedness is also not required.
(i) Provisions relating only to FPC Form 498; information not known
by employees. If any information required to be included on FPC Form
498, including holdings placed in trust, is not known to the employee
but is known to another person, the employee shall request that other
person to submit the information in his behalf. In the event that an
employee's holdings are held in a previously approved blind trust, the
employee should report on his filed Form 498, ''Unknown securities held
in blind trust.''
0163Forms available from the Director, Office of Personnel Programs.
18 CFR 3c.8 Interpretation and advisory service.
(a) An interpretation and advisory service consisting of an Agency
Counselor is established to provide counsel and advice to all Commission
employees regarding the interpretation and applicability of the
provisions and subject matter of this subpart C.
(b) Agency Counselor. (1) Designation. The General Counsel of the
Federal Power Commission is designated as the Agency Counselor.
(2) Duties. The Agency Counselor shall:
(i) Serve as the Commission's designee to the Civil Service
Commission regarding the matters covered by this subpart C.
(ii) Coordinate and direct the Commission's interpretation and
advisory service.
(iii) Issue interpretations and advisory opinions as required
concerning matters covered by this subpart A.
(iv) Transmit to the persons specified in 3c.9(e) with a written
statement of his views and recommendations, all conflicts of interest
reports prepared by the Director, Office of Personnel Programs in
accordance with the provisions of 3c.9(e) and notify the employee of
the transmittal.
(v) In accordance with the provisions of 3c.7(e) relating to
confidentiality, exercise responsibility, together with the Executive
Director and the Director, Office of Personnel Programs for keeping all
FPC forms listed in paragraph (a) of 3c.7 strictly confidential.
(vi) Duty of employee to consult. Any employee who is uncertain as
to the application of any provision of this subpart A or is uncertain as
to whether any contemplated action is permissible or who believes any
provision will cause him undue hardship should submit his question,
view, or request to the Agency Counselor.
18 CFR 3c.9 Procedure for reviewing statements of employment and
financial interests and reporting conflicts of interest.
(a) Except as provided in 3c.7(b), the Director, Office of Personnel
Programs shall review all statements of employment and financial
interests (FPC Forms 709 and 498) submitted by employees pursuant to
this subpart C to determine whether there are any actual or apparent
conflicts of interest.
(b) The Director, Office of Personnel Programs shall receive and
investigate complaints and information from all sources, including other
Federal agencies, concerning the conduct of employees.
(c) Bureau and office heads shall report any misconduct or violation
of this subpart A by employees under their supervision and direction to
the Director, Office of Personnel Programs.
(d) When the Director, Office of Personnel Programs believes, on the
basis of information submitted in statements of employment and financial
interests, and from other sources, that an actual or apparent conflict
of interest exists, he shall immediately:
(1) Notify the Agency Counselor and the Executive Director.
(2) Inform the employee concerned and provide him with full
opportunity to explain the actual or apparent conflict to the Director,
Office of Personnel Programs or the Agency Counselor.
(3) Endeavor to resolve the conflict in accordance with the standards
and requirements of this subpart A.
(4) Conflicts of interest relating to intervenors. (i) Where the
actual or apparent conflicts of interest arises out of an employee's
ownership of securities or personal interest in a person intervening in
a matter before the Commission on which the employee has been assigned
to work (see 3c.5(b)(3)(iv)(B), the Director, Office of Personnel
Programs shall immediately consult with the employee's Bureau Chief or
other office head to determine whether it is in the interest of the
Commission that the employee continue the assignment. In making this
determination the Director, Office of Personnel Programs shall consider
the general desirability of avoiding situations that will require
resolution of conflict of interest problems, the extent to which the
employee's activities will be supervised and all other factors bearing
on the particular situation which may be presented.
(ii) Where the employee is permitted to continue his assignment, the
Director Office of Personnel Programs shall prepare a written report
describing the nature of the employee's interest and all other factors
taken into account in resolving the potential conflict and shall provide
the employee, the Agency Counselor and the Executive Director with a
copy.
(e)(1) When actual or apparent conflicts of interest are not resolved
by the Director, Office of Personnel Programs, he shall report, through
the Agency Counselor, all information concerning the matter to:
(i) In the case of personnel employed regularly and full time in the
immediate office of a Commissioner other than the Chairman, to that
Commissioner; or
(ii) In all other cases, to the Chairman and/or the Executive
Director.
In each case, the Director, Office of Personnel Programs shall notify
the employee that such a report has been made.
(2) The employee, at his own requests, shall be given an opportunity
to explain the actual or apparent conflict to the Chairman and/or the
Executive Director, or in the case of employees in the immediate offices
of Commissioners other than the Chairman to a Commissioner and/or the
Commission.
18 CFR 3c.10 Disciplinary and other remedial action.
(a) Disciplinary action. Violation of the provisions of this subpart
A by any Commission employee may be cause for appropriate disciplinary
action which may be in addition to any penalty prescribed by law.
Appropriate disciplinary action shall be effected in accordance with
applicable laws, executive orders and regulations and may include one or
more of the following: Removal, suspension, reduction in grade. The
disciplinary action taken will depend upon the seriousness of the
violation and pertinent conditions and circumstances. In instances
where criminal violation is indicated, the matter will be referred by
the Commission to the Department of Justice for appropriate action.
(b) Other remedial action. Other remedial action shall be effected
in accordance with applicable laws, executive orders and regulations and
may include:
(1) Divestment of the employee of his conflicting interest.
(2) Changes in assigned duties.
(3) Disqualification for a particular assignment.
(c) Procedure. (1) Except as provided in paragraph(c)(2) of this
section after receipt from the Agency Counselor of the conflicts of
interest report prepared by the Director, Office of Personnel Programs
in accordance with the provisions of 3c.8(b)(2)(iv) and 3c.9(e)(1) and
after consideration of the explanation provided by the employee, the
Chairman shall take such appropriate disciplinary or other remedial
action as may be required. If the Chairman concludes that there is no
actual or apparent conflict of interest or if no disciplinary or other
remedial action is required, the Chairman shall so inform the employee.
(2) In the case of personnel employed regularly and full time in the
immediate office of a Commissioner other than the Chairman, that
Commissioner shall execute the provisions of paragraph (c)(1) of this
paragraph. Any Commissioner may, in his discretion, refer the matter to
another Commissioner or to the Commission for resolution.
18 CFR 3c.11 Miscellaneous statutes and regulations.
Each employee shall acquaint himself with the following statutes and
regulations relating to ethical conduct. The full texts of these
statutes and regulations are available in the Offices of the Agency
Counselor and Director, Office of Personnel Programs.
(a) General. (1) House Concurrent Resolution 175, 85th Congress, 2d
Session, 72 Stat. B12, the ''Code of Ethics for Government Service,''
and Federal Power Commission Administrative Order No. 66, July 23,
1958, setting forth canons of conduct based on H. Con. Res. 175.
(2) Executive Order 11222, May 8, 1965, 30 FR 6469, as amended by
Executive Order 11590, April 23, 1971, 36 FR 7831, Prescribing Standards
of Ethical Conduct for Government Officers and Employees and the
implementing regulations issued by the Civil Service Commission, 30 FR
12529, 5 CFR part 735.
(3) Violation of any law, rule, or regulation, administered by the
Civil Service Commission, or failure to adhere to established policies,
regulations, standards, and instructions on personnel management subject
to the jurisdiction of the Commission. (Civil Service rule 5.4, 5 CFR
5.4)
(4) Refusal to furnish testimony or information to authorized
representatives of the Civil Service Commission in regard to matters
inquired of arising under the laws, rules, and regulations administered
by the Commission. (Civil Service Regulations 731.201(d), 5 CFR
731.201(d))
(5) Executive Order 10927, March 18, 1961, 26 FR 2383, abolishing the
President's Committee on Fundraising within the Federal Service and
providing for the conduct of fundraising activities.
(6) The prohibitions relating to gifts to superiors. (5 U.S.C.
7351)
(b) Personal conduct. (1) The provision relating to the habitual use
of intoxicants to excess. (5 U.S.C. 7352)
(2) The prohibition against criminal, infamous, dishonest, immoral,
or notoriously disgraceful conduct. (Civil Service Regulation
731.201(b), 5 CFR 731.201(b))
(c) Disloyalty and striking. (1) The prohibitions against disloyalty
and striking. (5 U.S.C. 7311, 18 U.S.C. 1918) (See Note below.)
(2) The prohibition against the employment of a member of a Communist
organization. (50 U.S.C. 784) (See Note below.)
Note: An employee who advocates the overthrow of our constitutional
form of government, or is a member of an organization knowing it so
advocates, shall be dismissed. Strikes against the government are
forbidden as well as membership in government employee organizations
which assert the right to strike against any Federal department or
agency.
(d) Foreign governments. (1) The prohibition against accepting a
gift, present, decoration, or any other thing from a foreign government
unless authorized by Congress as provided by the Constitution and in
Pub. L. 89-673, 80 Stat. 952.
(2) The prohibition against serving while on annual leave or leave
without pay, with or without remuneration, for any foreign government,
corporation, partnership or individual that is in competition with
American industry. (Executive Order 5221, November 11, 1929, 18 CFR
3.735-11)
(3) The prohibition against an employee acting as the agency of a
foreign principal registered under the Foreign Agents Registration Act.
(18 U.S.C. 219)
(e) Political activities. (1) The prohibitions against political
activities (the former Hatch Act) in subchapter III of chapter 73 of
title 5, U.S.C. and 18 U.S.C. 602, 603, 607, and 608. The prohibitions,
and exemptions therefrom, with respect to government employees holding
state, territorial or municipal offices. (Civil Service Regulations, 5
CFR part 733)
(2) The prohibition against lobbying with appropriated funds. (18
U.S.C. 1913.) No part of the money appropriated by any enactment of
Congress shall, in absence of express authorization by Congress, be used
directly or indirectly to pay for any personal service, advertisement,
telegram, telephone, letter, printed or written matter, or other device,
intended or designed to influence in any manner a member of Congress, to
favor or oppose, by vote or otherwise, any legislation or appropriation
by Congress, whether before or after the introduction of any bill or
resolution proposing such legislation or appropriation; but this shall
not prevent officers or employees of the United States or of its
departments or agencies from communicating to Members of Congress on the
request of any Member or to Congress, through the proper official
channels, requests for legislation or appropriations which they deem
necessary for the efficient conduct of the public business. The penalty
for violation includes fine or imprisonment and removal.
(f) Disclosure of information. (1) Section 301(b) (16 U.S.C. 825b)
of the Federal Power Act and section 8(b) (15 U.S.C. 717g) of the
Natural Gas Act forbid employees, in the absence of Commission or court
direction from divulging information gained in examining books or
accounts.
(2) Part 388 of this chapter outlines what is public information and
what is not.
(3) Section 388.2201 of this chapter describes the prohibitions
against ex parte communications.
(4) Federal Power Commission Administrative Order 56, July 11, 1956,
describes standards of conduct relating to ''Official Staff Contracts
Outside the Commission.''
(5) The prohibitions against (i) the disclosure of classified
information (18 U.S.C. 798, 50 U.S.C. 783); and (ii) the disclosure of
confidential information. (18 U.S.C. 1905)
(g) Bribery, graft, and conflicts of interest. (1) Chapter 11 of
title 18 U.S.C., especially:
Sec. 201 Bribery of public officials and witnesses.
Sec. 202 Definitions.
Sec. 203 and 209 Outside compensation in matters affecting the
government.
Sec. 205 Activities in claims against and other matters affecting the
government.
Sec. 207 Disqualification of former officers and employees in matters
connected with former duties.
Sec. 208 Acts affecting personal financial interests.
Sec. 210 Offer to procure appointive public office.
Sec. 211 Acceptance or solicitation to obtain appointive public
office.
(2) Section 385.2103 of this chapter states the restrictions against
appearance by former employees.
(h) Fraud and deceit, embezzlement, extortion. (1) The prohibition
against the use of deceit in an examination or personnel action in
connection with government employment (18 U.S.C. 1917). The prohibition
against intentional false statements or deception or fraud in
examination for appointment (Civil Service Regulation 731.201(c) 5 CFR
731.201(c)). The prohibition against influencing another to withdraw
from competition for any position in the competitive service for the
purpose of either improving or injuring the prospects of any applicant
for appointment. (Civil Service Rule 4.3, 5 CFR 4.3)
(2) The prohibition against fraud or false statements in a government
matter. (18 U.S.C. 1001)
(3) The prohibition against counterfeiting and forging transportation
requests. (18 U.S.C. 508)
(4) The prohibitions against:
(i) Embezzlement of government money or property (18 U.S.C. 641);
(ii) Failing to account for public money (18 U.S.C. 643); and
(iii) Embezzlement of the money or property of another person in the
possession of an employee by reason of his employment. (18 U.S.C. 654)
(5) The prohibition against extortion. (18 U.S.C. 872)
(i) Misuse of government property. (1) The prohibition against the
misuse of a government vehicle. (31 U.S.C. 638a(c))
(2) The prohibition against the misuse of the franking privilege.
(18 U.S.C. 1719)
(3) The prohibition against mutilating or destroying a public record.
(18 U.S.C. 2071)
(4) The prohibition against unauthorized use of documents relating to
claims from or by the government. (18 U.S.C. 285)
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
18 CFR 3c.11 Subpart B -- Standards of Conduct for Special Government Employees
18 CFR 3c.101 Purpose.
(a) The Commission recognizes that the maintenance of high standards
of honesty, integrity, impartiality, and conduct by special Government
employees is essential to assure the proper performance of Commission
business and the maintenance of confidence by citizens in the integrity
of their government. The avoidance of misconduct and conflicts of
interest on the part of special Government employees through informed
judgment is indispensable to the maintenance of these standards. The
Commission, acting under authority conferred by the Federal Power Act
and pursuant to sections 201(b) and 702 of the Executive Order 11222 of
May 8, 1965, 30 FR 6469, as amended by Executive Order 11590 of April
22, 1971, 36 FR 7831, and the implementing regulations issued by the
Civil Service Commission, 30 FR 12529, 5 CFR part 735, issues this
subpart B to advise all special Government employees of the standards of
conduct each is expected to observe while employed by the Federal Power
Commission.
(b) The summaries of statutory provisions, such as the conflict of
interest provisions of Title 18 U.S.C. 201-218, which appear in this
subpart B at 3c.111 are not intended and should not be construed as
verbatim quotations of the law. The statutes should be consulted in any
situation in which they might apply.
18 CFR 3c.102 Coverage.
This subpart D applies only to special Government employees, usually
consultants and advisors, as defined in 3c.104(h).
18 CFR 3c.103 Notice and receipt.
Each special Government employee in the employ of the Commission
shall be provided with a copy of this subpart B and shall, within 5 days
after receipt, sign and return to the Director, Office of Personnel
Programs, the certification of receipt and agreement to comply with
conditions and requirements (FPC Form 855). At the time his appointment
is processed, each new special Government employee shall be provided
with a copy of this subpart B and shall sign and return to the Director,
Office of Personnel Programs, the certification of receipt and agreement
to comply with conditions and requirements. Special Government
employees shall be advised of this subpart B at least once each year and
shall be promptly informed of any change therein.
18 CFR 3c.104 Definitions.
(a) Conflicts of interest means a situation in which a special
Government employee's private interest, usually of an economic nature,
conflicts or raises a reasonable question of potential conflict with the
efficient and impartial conduct of his official duties and
responsibilities. The conflict is of concern whether it is real or only
apparent.
(b) Employed means the period of time for which a special Government
employee is appointed by the Federal Power Commission and/or other
Federal agencies to render services, including those days on which no
services are rendered.
(c) Executive order means Executive Order 11222 of May 8, 1965 (30 FR
6469), as amended by Executive Order 11590 of April 22, 1971 (36 FR
7831).
(d) Member of the special Government employee's immediate household
means blood relations of the special Government employee who are
permanent residents of the special Government employee's household.
(e) Official responsibility means ''the direct administrative or
operating authority, whether intermediate or final, and either
exercisable alone or with others, and either personally or through
subordinates, to approve, disapprove, or otherwise direct Government
action.'' (18 U.S.C. 202(b))
(f) Person means an individual, a corporation, a company, an
association, a firm, a partnership, a society, a joint stock company, or
any other group, organization or institution.
(g) Serve means to render services, whether with or without
compensation.
(h) Special Government employee means a special Government employee,
as defined in section 202(a) of Title 18 of the United States Code, who
is employed by the Commission:
The term special Government employee shall mean an officer or
employee of . . . any independent agency of the United States . . .
who is retained, designated, appointed, or employed to perform, with or
without compensation, for not to exceed 130 days during any period of
365 consecutive days, temporary duties either on a full-time or
intermittent basis. . . . (18 U.S.C. 202(a))
18 CFR 3c.105 Classification of special Government employees.
(a) FPC Service. Classification as a special Government employee
shall be made on the basis of an estimate of the number of days the
Commission will require the services of the employee during the 365 days
following his appointment which shall not extend for more than 365 days.
Only employees whose service is estimated at 130 days or less shall be
classified as special Government employees. Despite inaccuracies,
employees shall retain, throughout each 365-day period, the
classification assigned on the basis of the estimate for that period. A
part of a day shall be counted as a full day and a Saturday, Sunday, or
holiday on which duty is to be performed shall be counted equally with a
regular workday.
(b) Multiagency service. A special Government employee who
undertakes to serve one or more other Federal departments or agencies
shall inform the Federal Power Commission of his arrangement with the
others. The Director, Office of Personnel Programs, Federal Power
Commission, shall coordinate the classification of special Government
employees with the designated coordinator in the other agencies. If the
employee's appointments with two or more agencies are made on the same
date, the aggregate of the service estimates made by each agency shall
be considered determinative of his classification by each. If after
being employed by one agency, a special Government employee is appointed
to serve in the same capacity by one or more other agencies, each agency
shall make an estimate of the amount of the employee's service to it for
the remaining portion of the 365-day period covered by the original
estimate of the first agency. The sum of these estimates and of the
actual number of days of the employee's service to the first agency
during the prior portion of such 365-day period shall be considered
determinative of the employee's classification by each agency during the
remaining portion.
18 CFR 3c.106 Conflicts of interest.
(a) Use of Commission employment. A special Government employee
shall not use his Commission employment for a purpose that is, or gives
the appearance of being, motivated by the desire for private gain for
himself or another person, particularly one with whom he has family,
business or financial ties.
(b) Coercion. A special Government employee shall not use his
Commission employment to coerce, or give the appearance of coercing, a
person to provide financial benefit to himself or another person,
particularly one with whom he has family, business or financial ties.
(c) Outside compensation in matters affecting the government.
Special Government employees are prohibited from accepting any
compensation, except as provided by law for the proper discharge of
official duties, for any services rendered in relation to a particular
matter involving a specific party or parties in which the United States
is a party or has a direct and substantial interest and in which the
special Government employee participated personally and substantially in
the course of his Commission duties. Special Government employees who
have served the Commission for more than 60 days during the immediately
preceeding period of 365 consecutive days are also subject to a similar
prohibition with respect to matters pending before the Commission during
their period of service, even though they have not participated
personally and substantially in those matters (18 U.S.C. 203).
(d) Financial interests. (1) A special Government employee shall
not:
(i) Have a direct or indirect financial interest that conflicts
substantially, or appears to conflict substantially, with his Commission
duties and responsibilities.
(ii) Engage, directly or indirectly, in a financial transaction as a
result of, or primarily relying on, information obtained through his
Commission employment.
(2) These financial interests also include interests of the special
Government employee's spouse, minor child or member of his immediate
household.
(3) A special Government employee is prohibited, under penalty of
fine or imprisonment, from participating personally and substantially as
a government officer or special Government employee in any matter in
which, to his knowledge, he, his spouse, minor child, partner,
organization in which he is serving as officer, director, trustee,
partner or employee, or person with whom he is negotiating for
employment has a financial interest. However, this prohibition does not
apply if, prior to such participation, and upon complete disclosure of
the financial interest, the Chairman1017 of the Commission determines
that the special Government employee's interest is not so substantial as
to affect the special Government employee's services to the Commission.
(18 U.S.C. 208)
(4)(i) A special Government employee or the spouse, minor child, or
member of the immediate household of a special Government employee shall
not own, directly or indirectly, or participate in the purchase of any
securities of any public utility, licensee, or natural gas company
subject to the jurisdiction of the Commission. This prohibition shall
also apply to securities of parent companies having jurisdictional
subsidiaries or subsidiaries of jurisdictional parent companies. The
prohibition shall not apply to investments in mutual funds or private
investment groups where a special Government employee or the spouse,
minor child, or member of the immediate household of a special
Government employee does not have the right to participate in or control
management decisions relating to what securities will be held in the
funds. The prohibition shall not apply to investments in mutual savings
banks.
(ii) All special Government employees shall report such securities
and security acquisitions on appropriate forms in the manner and at the
time specified in 3c.108 (a), (b), and (c).
(iii) Such securities, regardless of the manner of acquisition, shall
be disposed of promptly upon request by the Director, Office of
Personnel Programs. Disposition of securities shall include sale of the
securities or transfer of title of the securities into a blind trust
which denies control and knowledge to the grantor of the securities held
in trust. Should a special Government employee decide to dispose of
securities through a blind trust agreement, it must first be approved by
the Director, Office of Personnel Programs, upon review and advice of
the General Counsel.
(iv) All special Government employees shall submit reports on
appropriate forms in the manner and at the time specified in 3c.108
(a), (b), and (c) regarding:
(A) Any securities presently held directly or indirectly by a special
Government employee or his spouse, minor child or member of his
immediate household, in an enterprise whose status under the Federal
Power Act or Natural Gas Act comes before the Commission for
determination.
(B) Any securities owned by or personal interest of a special
Government employee or his spouse, minor child, or member of his
immediate household in any person, firm, association, or corporation
intervening on a matter before the Commission to which the special
Government employee has been assigned to work.
(e) Gifts, entertainment, loans and favors. (1) Unless permitted by
paragraph (e)(2) of this section, a special Government employee, while
so employed or in connection with his employment, shall not solicit or
accept, directly or indirectly, any gift, gratuity, favor,
entertainment, loan, or any other thing of monetary value, for himself
or another person, particularly one with whom he has family, business,
or financial ties, from any person who:
(i) Has, or is seeking to obtain, approval or denial by the
Commission of actions required under statute, or the Commission's rules
and regulations; or
(ii) Conducts operations or activities which are regulated by the
Commission or concerning which determinations of status are pending
before the Commission; or
(iii) Has, or is seeking to obtain, contractual or other business or
financial relations with the Commission; or
(iv) Has interests which may be substantially affected by the
performance or nonperformance of the special Government employee's
official duty; or
(v) Is in any way attempting to influence the special Government em-
ployee's official actions.
(2) The requirements of paragraph (e)(1) of this section do not apply
to:
(i) Obvious family or personal relationships where circumstances make
it clear that it is those relationships rather than the business of the
persons concerned which are the motivating factors -- the clearest
illustration being the parents, children, or spouses of employees;
(ii) Acceptance of food and refreshments of nominal value on
infrequent occasions in the course of a luncheon, dinner, or other
meeting or on an inspection tour where a special Government employee may
properly be in attendance. Special Government employees on an
inspection tour may also accept necessary arrangements for travel and
lodging when no other reasonable alternatives are available.
(iii) Acceptance of loans from banks or other financial institutions
on customary terms to finance proper and usual activities of the special
Government employee, such as for example, home mortgage loans.
(iv) Acceptance of unsolicited advertising or promotional material of
nominal intrinsic value, such as pens, pencils, note pads, calendars,
and other similar items.
(v) A special Government employee, while so employed, or in
connection with his employment, shall not:
(A) Solicit contributions from another employee for a gift to an
employee in a superior official position.
(B) Make a donation as a gift to an employee in a superior official
position.
(C) Accept a gift presented as a contribution from employees
receiving less salary than himself.
(D) The prohibitions of paragraphs (e)(2)(v) (A), (B), and (C) of
this section are not intended to prohibit voluntary gifts or donations
of nominal value made to a special Government employee on a special
occasion such as marriage, illness, resignation, or retirement.
(3) A special Government employee shall not accept a gift, present,
decoration, or any other thing from a foreign government unless
authorized by Congress as provided by the U.S. Constitution and in Pub.
L. 89-673, 80 Stat. 952.
(f) Representation of others. (1) During Commission employment. A
special Government employee is prohibited, except as permitted in the
proper discharge of his official duties or by express statutory
exemption, from acting as agent or attorney, with or without
compensation, in a particular matter involving a specific party or
parties in which the United States is a party or has a direct and
substantial interest and in which the special Government employee
participated personally and substantially. Special Government employees
who have served the Commission for more than 60 days during the
immediately preceding period of 365 days are also subject to a similar
prohibition with respect to particular matters pending before the
Commission during their period of service even though they have not
participated personally and substantially in such matters. These
prohibitions are limited by the following exemptions:
(i) A special Government employee may act as agent or attorney for
another person in the performance of work under grant by or contract
with the United States if the head of the department or agency concerned
with the grant or contract first makes a written certification,
submitted for publication in the Federal Register, that such
representation is required in the national interest.
(ii) When not inconsistent with faithful performance of duty, special
Government employees may also represent any person, without
compensation, in disciplinary, loyalty, or other personnel matters.
(iii) Subject to the express written approval of the Chairman of the
Commission,2018 a special Government employee may, with or without
compensation, represent a parent, spouse, child, or person or estate he
serves as fiduciary on matters in which the United States is a party or
has an interest except matters in which he has participated personally
and substantially, as a special Government employee or which are the
subject of his official responsibility.
(iv) A special Government employee may also give testimony under oath
or make statements required to be made under penalty for perjury or
contempt. (18 U.S.C. 203 and 205)
(2) Following termination of Commission employment. (i) A special
Government employee shall not, after his employment has ceased,3019
knowingly act as agent or attorney for anyone other than the United
States in any matter involving a specific party or parties in which the
United States is a party or has a direct and substantial interest and in
which the special Government employee participated personally and
substantially during his Commission employment (18 U.S.C. 207(a))
(ii) A special Government employee shall not, within 1 year after his
Commission employment has ceased, appear personally before any court or
Government agency as agent or attorney for anyone other than the United
States in any matter involving a specific party or parties in which the
United States is a party or has a direct and substantial interest which
was under his official responsibility as a special Government employee
at any time within 1 year prior to the termination of such
responsibility (18 U.S.C. 207(b))
(iii) Section 385.2103 of this chapter prohibits a former special
Government employee from acting as attorney, expert witness or
representative in connection with any proceeding before the Commission
in which the special Government employee participated during his service
with the Commission unless such appearance is expressly authorized by
the Commission upon a verified showing that it would not be contrary to
the public interest and unethical or prejudicial to the interests of the
Commission, or in violation of 2(a) and 2(b), supra.
(g) Special Government employees shall not, either for or without
compensation, engage in teaching, lecturing, or writing, including
teaching, lecturing, or writing for the purpose of the special
preparation of a person or class of persons for an examination of the
Civil Service Commission or of the Board of Examiners for the Foreign
Service, that is dependent on information obtained as a result of
Commission employment, except when that information has been made
available to the general public or will be made available on request or
when the Executive Director has given written authorization for the use
of nonpublic information on the basis that the use is in the public
interest. For additional requirements and procedures relating to the
misuse and disclosure of information, see 3c.111(f).
(h) Special Government employees shall not receive compensation or
anything of monetary value for any consultation, lecture, discussion,
writing, or appearance, the subject matter of which is devoted
substantially to the responsibilities, programs, or operations of the
Commission.
(i) A special Government employee may not receive nongovernment
reimbursement for travel or expenditures on official business.
(j) Limitations on prohibitions of paragraphs (d), (e) and (f) of
this section. The prohibitions of paragraphs (d), (e) and (f) of this
section do not preclude a special Government employee from:
(1) Participation in the affairs of or acceptance of an award for a
meritorious public contribution or achievement given by a charitable,
religious, professional, social, fraternal, nonprofit educational and
recreational, public service, or civic organization.
(2) Participation in the activities of national or state political
parties not proscribed by law. But see 3c.111(f) for reference to the
prohibitions against political activity.
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
0171As the Government official responsible for appointment of the
special Government employee to his position. In the case of
Commissioners, this determination is made by the President as the
appointing official. In the case of personnel employed regularly and
full time in the immediate office of a Commissioner other than the
Chairman, the determination is made by that Commissioner.
0182As the Government official responsible for appointment of the
special Government employee to his position.
0193For the purposes of 18 U.S.C. 207, the employment of a special
Government employee ceases on the day his appointment expires or is
otherwise terminated, as distinguished from the date on which he last
performs service.
18 CFR 3c.107 Ethical conduct.
(a) Use of government property. A special Government employee shall
not directly or indirectly use, or allow the use of, government property
of any kind, including property leased to the government, for other than
officially approved activities. A special Government employee has a
positive duty to protect and conserve government property, including
equipment, supplies, and other property entrusted or issued to him.
(b) Misuse of information. (1) A special Government employee shall
not use inside information obtained as a result of his Commission
employment for private gain for himself or another person either by
direct action on his part or by counsel, recommendation, or suggestion
to another person, particularly one with whom he has family, business,
or financial ties. Inside information means information obtained under
Commission authority which has not become part of the body of public
information.
(2) Section 388.107 of this chapter sets up the procedures for making
available to the public, information in the public files and records of
the Commission and specifies the particular files and records which are
not generally available to the public. Section 388.107 of this chapter
including special Government employees, when served with a subpoena
duces tecum and outlines the procedures to be followed when the material
sought is not part of the public files and records of the Commission.
(3) Section 301(b) (16 U.S.C. 825(c)) of the Federal Power Act and
section 8(b) (15 U.S.C. 717g) of the Natural Gas Act prohibit any
employee, including a special Government employee, in the absence of
Commission or court direction, from divulging any fact or information
which may come to his knowledge during the course of examination of
books or other accounts.
(4) The nature and time of any proposed action by the Commission are
confidential and shall not be divulged to anyone outside the Commission.
The Secretary of the Commission has exclusive responsibility and
authority for authorizing the initial public releases of information
concerning Commission actions or decisions.
(5) Section 385.2201 of this chapter states the prohibitions against
ex parte communications in on-the-record proceedings to Commissioners,
members of their personal staffs, administrative law judges or other
employees, including special Government employees, participating in the
decision in such proceedings.
(c) Indebtedness. Special Government employees shall pay each just
financial obligation in a proper and timely manner, especially one
imposed by law such as Federal, State, or local taxes. A just financial
obligation means one acknowledged by the special Government employee or
reduced to judgment by a court, or one imposed by law such as Federal,
State or local taxes, and in a proper and timely manner means in a
manner which the Commission determines does not, under the
circumstances, reflect adversely on the government as his employer. In
the event of dispute between a special Government employee and an
alleged creditor, the Commission shall not be required to determine the
validity or amount of the disputed debt. Each special Government
employee should arrange his personal financial affairs to avoid any
request to the Commission for administrative action to assist in the
collection of debts.
(d) Gambling, betting and lotteries. A special Government employee
shall not participate, while on government-owned or leased property or
while on duty for the government, in any gambling activities, including
the operation of a gambling device, in conducting a lottery or pool, in
a game for money or property, or in selling or purchasing a numbers slip
or ticket. This paragraph does not preclude fundraising activities by
employee organizations under section 3 of Executive Order 10927, March
18, 1961, 26 FR 2383.
(e) General conduct. Special Government employees shall conduct
themselves in such manner that the work of the Commission is effectively
accomplished and shall also observe the requirements of courtesy,
consideration, and promptness in dealing with or serving the public.
(f) Special Government employees shall avoid any action, whether or
not specifically prohibited by 3c.106 and 3c.107, which might result
in or create the appearance of:
(1) Using public office for private gain; or
(2) Giving preferential treatment to any person; or
(3) Losing complete independence or impartiality of action; or
(4) Making a government decision outside official channels; or
(5) Impeding government efficiency or economy; or
(6) Affecting adversely the confidence of the public in the integrity
of the government and the Federal Power Commission.
(g) Special Government employees shall not engage in criminal,
infamous, dishonest, immoral, or notoriously disgraceful conduct, or
other conduct prejudicial to the government and to the Commission.
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
18 CFR 3c.108 Statements of employment and financial interests.
(a) Forms. A copy of each of the following forms is appended to this
subpart B. 4 020
(1) FPC Form 498 -- Confidential Statement of Employment and
Financial Interests.
(2) FPC Form 855 -- Certification of receipt and agreement for
special Government employees.
(b) Special Government employees required to submit; time of
submission. (1) FPC Form 498 Confidential Statement of Employment and
Financial Interest. All special Government employees shall submit FPC
Form 498:
(2) At the time of entrance on duty.
(3) Within 30 days of the date of acquisition by the special
Government employee, his spouse, minor child, or member of the special
Government employee's immediate household of any security.
(4) On June 30 of each year for the purpose of annual review. Where
there are no changes in or additions to the original information
submitted, a negative report shall be filed.
(5) Notwithstanding the filing of the annual report required by this
section, each special Government employee shall at all times avoid
acquiring a financial interest that could result, or taking an action
that could result, in a violation of the conflicts of interest
provisions of 3c.106.
(6) FPC Form 855 -- Certification of receipt and agreement for
special Government employees. All special Government employees in the
employ of the Commission shall complete this form within 5 days after
receipt of this subpart B.
(c) Place of submission. All FPC Forms listed in paragraph (a) of
this section shall be submitted to the Director, Office of Personnel
Programs, in an envelope marked ''Personal Attention: Director, Office
of Personnel Programs.
(d) Confidentiality. The Executive Director, the Director, Office of
Personnel Programs, and the Agency Counselor shall be responsible for
keeping all FPC Forms listed in paragraph (a) of this section strictly
confidential and shall not grant access to, or permit disclosure of
information from, these forms except to carry out the purpose of these
regulations. Information contained thereon will not be disclosed except
in accordance with the regulations of the Civil Service Commission or on
a determination of good cause made by the Chairman of the Federal Power
Commission, or except as provided by law.
(e) Interests of special Government employee's relatives. The
interest of a spouse, minor child, or other member of a special
Government employee's immediate household (as defined in 3c.104(d)) is
considered to be an interest of the special Government employee.
(f) Effect of submission of forms on other requirements. Submission
of any FPC forms listed in paragraph (a) of this section is in addition
to, and not in substitution for, or in derogation of, any other person
to participate in a law, order, or regulation. A special Government
employee's submission of any of these forms does not permit him or any
other person to participate in a matter which his or the other person's
participation is prohibited by law, order or regulation.
(g) Information not required. A special Government employee is not
required to supply information relating to his connection with, except
employment required to be reported under 3c.105(b) or interest in, a
professional society or a charitable, religious, social, fraternal,
recreational, public service, civic, or political organization or any
similar organization not conducted as a business enterprise and which is
not engaged in the ownership or conduct of a business enterprise.
Educational and other institutions doing research and development or
related work involving grants of money from or contracts with the
government are deemed business enterprises and are required to be
included. Information showing the value of securities, other financial
interests, and real property and the amount of indebtedness is also not
required.
(h) Provisions relating only to FPC Form 498; information not known
by special Government employees. If any information required to be
included on FPC Form 498, including holdings placed in trust, is not
known to the special Government employee but is known to another person,
the special Government employee shall request that other person to
submit the information in his behalf. In the event that a special
Government employee's holdings are held in a previously approved blind
trust, the special Government employee should report on his filed Form
498 ''Unknown securities held in blind trust.''
0204Forms available from Director, Office of Personnel Programs.
18 CFR 3c.109 Interpretation and advisory service. 5 021
(a) Availability. The interpretation and advisory service
established under 3c.8 is available to all special Government employees
seeking counsel and advice regarding the interpretation and
applicability of the provisions and subject matter of this subpart B.
(b) Duty of special Government employee to consult. Any special
Government employee, who is uncertain as to the application of any
provision of this subpart B or is uncertain as to whether any
contemplated action is permissible, or who believes any provision will
cause him undue hardship, should submit his question, view or request to
the Agency Counselor, either orally or in writing. The Agency Counselor
shall inform the special Government employee of his views,
recommendations, and reasons therefor, either orally or in writing when
requested by the special Government employee or when the Agency
Counselor, in his discretion, considers a written reply advisable. The
Agency Counselor shall also send a memorandum or a copy of his written
reply to the Director of the Office of Personnel Programs for
consideration and appropriate determination and action.
0215See Subpart C, ''Interpretation and Advisory Service.''
18 CFR 3c.110 Procedure for reviewing statements of employment and
financial interests and reporting conflicts of interest.
(a) The Director, Office of Personnel Programs, shall review all
statements of employment and financial interests (FPC Forms 709 and 498)
submitted by special Government employees pursuant to this subpart B to
determine whether there are any actual or apparent conflicts of
interests.
(b) The Director, Office of Personnel Programs, shall receive and
investigate complaints and information from all sources, including other
Federal agencies, concerning the conduct of special Government
employees.
(c) Bureau and office heads shall report any misconduct or violation
of this subpart B by special Government employees under their
supervision and direction to the Director, Office of Personnel Programs.
(d) When the Director, Office of Personnel Programs, believes, on the
basis of information submitted in statements of employment and financial
interests, and from other sources, that an actual or apparent conflict
of interest exists, he shall immediately:
(1) Notify the Agency Counselor and the Executive Director.
(2) Inform the special Government employee concerned and provide him
with full opportunity to explain the actual or apparent conflict to the
Director, Office of Personnel Programs, or the Agency Counselor.
(3) Endeavor to resolve the conflict in accordance with the standards
and requirements of this subpart B.
(e) Conflicts of interest relating to intervenors. (1) Where the
actual or apparent conflicts of interest arises out of a special
Government employee's ownership of securities or personal interest in a
person intervening in a matter before the Commission on which the
special Government employee has been assigned to work, the Director,
Office of Personnel Programs, shall immediately consult with the special
Government employee's Bureau Chief or other office head to determine
whether it is in the interest of the Commission that the special
Government employee continue the assignment. In making this
determination, the Director, Office of Personnel Programs, shall
consider the general desirability of avoiding situations that will
require resolution of conflict of interest problems, the extent to which
the special Government employee's activities will be supervised and all
other factors bearing on the particular situation which may be
presented.
(2) Where the special Government employee is permitted to continue
his assignment, the Director, Office of Personnel Programs, shall
prepare a written report describing the nature of the special Government
employee's interest and all other factors taken into account in
resolving the potential conflict and shall provide the special
Government employee, the Agency Counselor, and the Executive Director
with a copy.
(f)(1) When actual or apparent conflicts of interest are not resolved
by the Director, Office of Personnel Programs, he shall report, through
the Agency Counselor, all information concerning the matter to:
(2) In the case of personnel employed regularly and full time in the
immediate office of a Commissioner other than the Chairman, to that
Commissioner; or
(3) In all other cases, to the Chairman and/or the Executive
Director.
In each case, the Director, Office of Personnel Programs shall notify
the special Government employee that such a report has been made.
(4) The special Government employee, at his own request, shall be
given an opportunity to explain the actual or apparent conflict to the
Chairman and/or the Executive Director, or in the case of special
Government employees in the immediate offices of Commissioners other
than the Chairman to a Commissioner and/or the Commission.
18 CFR 3c.111 Disciplinary and other remedial action.
(a) Disciplinary action. Violation of the provisions of this subpart
D by any special Government employee may be cause for appropriate
disciplinary action which may be in addition to any penalty prescribed
by law. Appropriate disciplinary action shall be effected in accordance
with applicable laws, executive orders, and regulations and may include
one or more of the following: Removal, suspension, reduction in grade.
The disciplinary action taken will depend upon the seriousness of the
violation and pertinent conditions and circumstances. In instances
where criminal violation is indicated, the matter will be referred by
the Commission to the Department of Justice for appropriate action.
(b) Other remedial action. Other remedial action shall be effected
in accordance with the applicable laws, executive orders, and
regulations and may include:
(1) Divestment by the special Government employee of his conflicting
interest.
(2) Changes in assigned duties.
(3) Disqualification for a particular assignment.
(c) Procedure. (1) Except as provided in paragraph (c)(2) of this
section, after receipt from the Agency Counselor of the conflicts of
interest report prepared by the Director, Office of Personnel Programs,
in accordance with the provisions of 3.208(B)(2)(d) and 3.230(D), and
after consideration of the explanation provided by the special
Government employee, the Chairman shall take such appropriate
disciplinary or other remedial action as may be required. If the
Chairman concludes that there is no actual or apparent conflict of
interest or if no disciplinary or other remedial action is required, the
Chairman shall so inform the special Government employee.
(2) In the case of personnel employed in the immediate office of a
Commissioner other than the Chairman, that Commissioner shall execute
the provisions of paragraph (c)(1) of this section. Any Commissioner
may, in his discretion, refer the matter to another Commissioner or to
the Commission for resolution.
(Order No. 564, 42 FR 20459, Apr. 20, 1977)
18 CFR 3c.112 Miscellaneous statutes and regulations.
Each special Government employee shall acquaint himself with the
following statutes and regulations relating to ethical conduct. The
full texts of these statutes and regulations are available in the
offices of the Agency Counselor, and Director, Office of Personnel
Programs.
(a) General. (1) House Concurrent Resolution 175, 85th Congress, 2nd
Session, 72 Stat. B12, the ''Code of Ethics for Government Service,''
and Federal Power Commission Administrative Order No. 66, July 23,
1958, setting forth canons of conduct based on H. Con. Res. 175.
(2) Executive Order 11222, May 8, 1965, Prescribing Standards of
Ethical Conduct for Government Officers and Employees, 30 FR 6469, as
amended by Executive Order 11590 of April 23, 1971, 36 FR 7831, and the
implementing regulations issued by the Civil Service Commission, 30 FR
12529, 5 CFR part 735.
(3) Violation of any law, rule, or regulation, administered by the
Civil Service Commission, or failure to adhere to established policies,
regulations, standards, and instructions on personnel management subject
to the jurisdiction of the Commission. (Civil Service Rule 5.4, 5 CFR
5.4)
(4) Refusal to furnish testimony or information to authorized
representatives of the Civil Service Commission in regard to matters
inquired of arising under the laws, rules, and regulations administered
by the Commission. (Civil Service Regulations 731.201(d), 5 CFR
731.201(d))
(5) Executive Order 10927, March 18, 1961, 26 FR 2383, Abolishing the
President's Committee on Fundraising within the Federal Service and
providing for the conduct of fundraising activities.
(6) The prohibitions relating to gifts to superiors. (5 U.S.C.
7351)
(b) Personal conduct. (1) The provision relating to the habitual use
of intoxicants to excess. (5 U.S.C. 7352)
(2) The prohibition against criminal, infamous, dishonest, immoral,
or notoriously disgraceful conduct. (Civil Service Regulations
731.201(d), 5 CFR 731.201(d))
(c) Disloyalty and striking. (1) The prohibitions against disloyalty
and striking. (5 U.S.C. 7311, 18 U.S.C. 1918)1
(2) The prohibition against the employment of a member of a Communist
organization. (50 U.S.C. 784)1
(d) Foreign Governments. (1) The prohibition against accepting a
gift, present, decoration, or any other thing from a foreign government
unless authorized by Congress as provided by the Constitution and Pub.
L. 89-673, 80 Stat. 952.
(2) The prohibition against serving while on annual leave or leave
without pay with or without remuneration, for any foreign government,
corporation, partnership or individual that is in competition with
American industry. (Executive Order 5221, November 11, 1929)
(3) The prohibition against an employee acting as the agent of a
foreign principal registered under the Foreign Agents Registration Act.
(18 U.S.C. 219)
(e) Political activities. (1) The prohibitions against political
activities (the former Hatch Act) in subchapter III of chapter 73 of
Title 5, U.S.C. and 18 U.S.C. 602, 603, 607, and 608. The prohibitions,
and exemptions therefrom, with respect to Government employees holding
state, territorial or municipal offices. (Civil Service Regulations, 5
CFR part 733)
(2) The prohibition against lobbying with appropriated funds. (18
U.S.C. 1913)
No part of the money appropriated by an enactment of Congress shall,
in absence of express authorization by Congress, be used directly or
indirectly, to pay for any personal services, advertisement, telegram,
telephone, letter, printed or written matter, or other device, intended
or designed to influence in any manner a member of Congress to favor or
oppose, by vote or otherwise, any legislation or appropriation by
Congress, whether before or after the introduction of any bill or
resolution proposing such legislation or appropriation; but this shall
not prevent officers or special Government employees of the United
States or of its departments or agencies from communicating to Members
of Congress on the request of any Member or to Congress, through the
proper official channels, requests for legislation or appropriations
which they deem necessary for the efficient conduct of the public
business.
The penalty for violation includes fine or imprisonment and removal.
(f) Disclosure of information. (1) Section 301(b) (16 U.S.C. 825b)
of the Federal Power Act and section 8(b) (15 U.S.C. 717g) of the
Natural Gas Act forbid employees, in the absence of Commission or court
direction, from divulging information gained in examining books or
accounts.
(2) Section 1.36 of the Federal Power Commission's Rules of Practice
and Procedure (18 CFR 1.36) outlines what is public information and what
is not.
(3) Section 1.4(d) of the Federal Power Commission's Rules of
Practice and Procedure (18 CFR 1.4(d)) describes the prohibitions
against ex parte communications.
(4) Federal Power Commission Administrative Order No. 56, July 11,
1956, describes standards of conduct relating to ''Official Staff
Contacts Outside the Commission.''
(g) The prohibitions against:
(1) The disclosure of classified information (18 U.S.C. 798, 50
U.S.C. 783); and
(2) The disclosure of confidential information (18 U.S.C. 1905).
(h) Bribery, graft, and conflicts of interest. (1) Chapter 11 of
Title 18, United States Code, especially:
201 Bribery of public officials and witnesses.
202 Definitions.
203 and 209 Outside compensation in matters affecting the government.
205 Activities in claims against and other matters affecting the
government.
207 Disqualification of former officers and employees in matters
connected with former duties.
208 Acts affecting personal financial interests.
210 Offer to procure appointive public office.
211 Acceptance or solicitation to obtain appointive public office.
(2) Section 385.2103 of this chapter states the restrictions against
appearances by former employees.
(i) Fraud and deceit, embezzlement, extortion. (1) The prohibitions
against the use of deceit in an examination or personnel action in
connection with the government employment (18 U.S.C. 1917). The
prohibition against intentional false statements or deception or fraud
in examination for appointment (Civil Service Regulation 731.201(c), 5
CFR 731.201(c)). The prohibition against influencing another to withdraw
from competition for any position in the competitive service for the
purpose of either improving or injuring the prospects of any applicant
for appointment. (Civil Service Rule 4.3, 5 CFR 4.3)
(2) The prohibition against fraud or false statements in a government
matter. (18 U.S.C. 1001)
(3) The prohibition against counterfeiting and forging transportation
requests. (18 U.S.C. 508)
(4) The prohibitions against (a) embezzlement of government money or
property (18 U.S.C. 641); (b) failure to account for public money (18
U.S.C. 643); and (c) embezzlement of the money or property of another
person in the possession of an employee by reason of his employment (18
U.S.C. 654).
(5) The prohibition against extortion. (18 U.S.C. 872)
(6) Misuse of government property.
(7) The prohibition against the misuse of a government vehicle. (31
U.S.C. 638a(c))
(8) The prohibition against the misuse of the franking privilege.
(18 U.S.C. 1719)
(9) The prohibition against mutilating or destroying a public record.
(18 U.S.C. 2071)
(10) The prohibition against unauthorized use of documents relating
to claims from or by the government. (18 U.S.C. 285) (Order 319, 31 FR
4118, March 9, 1966, as amended by Order 353, 32 FR 15239, 15240,
November 3, 1967)
(Order 564, 42 FR 20459, Apr. 20, 1977, as amended by Order 225, 47
FR 19055, May 3, 1982)
1An employee who advocates the overthrow of our constitutional form
of government, or is a member of an organization knowing it so
advocates, shall be dismissed. Strikes against the Government are
forbidden as well as membership in government employee organizations
which assert the right to strike against any Federal department or
agency.
18 CFR 3c.112 Subpart C -- Standards of Conduct for Commissioners
18 CFR 3c.201 Purpose.
(a) The Commission recognizes that the maintenance of high standards
of honesty, integrity, impartiality, and conduct by Commissioners is
essential to assure the proper performance of Commission business and
the maintenance of confidence by citizens in the integrity of their
government. The avoidance of misconduct and conflicts of interest on
the part of Commissioners through informed judgment is indispensable to
the maintenance of these standards. The Commission, acting under
authority conferred by the Federal Power Act and pursuant to sections
201(b) and 702 of the Executive Order 11222 of May 8, 1965, 30 FR 6469
(3 CFR 1965, Supp., p. 130), as amended by Executive Order 11590 of
April 22, 1971, 36 FR 7831, and the implementing regulations issued by
Civil Service Commission, 30 FR 12529, 5 CFR part 735, issues this
subpart C to advise the Commissioners to the standards of conduct each
is expected to observe while as a member of the Federal Power
Commission.
(b) The summaries of statutory provisions, such as the conflict of
interest provisions of title 18 U.S.C. 201-218, which appear in this
subpart C are not intended and should not be construed as verbatim
quotations of the laws. The statutes should be consulted in any
situation in which they might apply. Section 3c.206 contains a list of
applicable statutes and regulations for ready reference.
18 CFR 3c.202 Coverage.
This subpart E applies to Commissioners whether on leave without pay,
sick leave or annual leave.
18 CFR 3c.203 Definitions.
(a) Commissioner means a member of the Federal Power Commission
appointed pursuant to the provisions of section 1 of the Federal Power
Act.
(b) Executive order means Executive Order 11222 of May 8, 1965 (30 FR
6469) as amended by Executive Order 11590 of April 22, 1971 (36 FR
7831).
(c) Conflict of interest means a situation in which a Commissioner's
private interest conflicts with the Standards of Conduct set forth in
the Executive order or the Standards set forth in this subpart C.
18 CFR 3c.204 Conflicts of interest.
(a) Outside compensation in matters affecting the government. (1) A
Commissioner shall not receive any salary or anything of monetary value
from a private source as compensation for his services to the
Commission. (18 U.S.C. 209)
(2) This prohibition does not prevent continued participation in bona
fide pension, retirement, group life, health or accident insurance,
profit-sharing, stock bonus or other Commissioner welfare or benefit
plans maintained by a former employer.
(3) A Commissioner is prohibited from accepting any compensation
except as provided by law for the proper discharge of official duties
for any services rendered in relation to a particular matter in which
the United States is a party or has a direct and substantial interest.
(18 U.S.C. 203)
(b) Financial interests: (1) A Commissioner shall not hold any
financial interest determined by the Chairman of the Civil Service
Commission to be inconsistent with the Standards of the Executive order.
Commissioners are required to submit financial statements in accordance
with the provisions of section 401(a) of the Executive order.
(2) Commissioners are subject to the following prohibition of the
Federal Power Act which is applied as a matter of Commission policy to
like interests in natural gas companies, as defined in section 2 of the
Natural Gas Act (15 U.S.C. 717a).
* * * 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 pecuniarily
interested therein, shall enter upon the duties of or hold the office of
Commissioner. Said Commissioners shall not engage in any other
business, vocation, or employment. * * *
(16 U.S.C. 792)
(3) A Commissioner is prohibited, under penalty of fine or
imprisonment, from participating personally and substantially as a
government officer or employee in any manner in which, to his knowledge,
he, his spouse, minor child, partner, organization in which he is
serving as officer, director, trustee, partner, or employee, or person
with whom he is negotiating for employment, has a financial interest.
However, this prohibition does not apply if, prior to such
participation, and upon complete disclosure of the financial interest,
the President of the United States determines that the Commissioner's
interest is not so substantial as to affect the Commissioner's services
to the Commission (18 U.S.C. 208).
(c) Gifts, entertainment, loans and favors. (1) Unless permitted
paragraph (b)(2) of this section, no Commissioner shall solicit or
accept, directly or indirectly, any gift, gratuity, favor,
entertainment, loan or any other thing of monetary value, from any
person who:
(i) Has or is seeking to obtain, approval or denial by the Commission
of actions required under statute, or the Commission's rules and
regulations; or
(ii) Conducts operations or activities which are regulated by the
Commission or concerning which determinations of status are pending
before the Commission; or
(iii) Has, or is seeking to obtain, contractual or other business or
financial relations with the Commission; or
(iv) Has interests which may be substantially affected by the
performance or nonperformance of the Commissioner's official duty; or
(v) Is in any way attempting to influence the Commissioner's official
actions.
(2) The requirements of paragraph (c)(1) of this section do not apply
to:
(i) Obvious family or personal relationships where circumstances make
it clear that it is those relationships rather than the business of the
persons concerned which are the motivating factors -- the clearest
illustration being the parents, children, or spouses of Commissioners.
(ii) Acceptance of food and refreshments of nominal value on
infrequent occasions in the course of a luncheon, dinner or other
meeting or on an inspection tour where a Commissioner may properly be in
attendance. Commissioners on an inspection tour may also accept
necessary arrangements for travel and lodging when no other reasonable
alternatives are available.
(iii) Acceptance of loans from banks or other financial institutions
on customary terms to finance proper and usual activities of the
Commissioner, such as, for example, home mortgage loans.
(iv) Acceptance of unsolicited advertising or promotional material of
nominal intrinsic value such as pens, pencils, note pads, calendars and
other similar items.
(v) A Commissioner shall not accept a gift, present, decoration, or
any other thing from a foreign government unless authorized by Congress
as provided by the Constitution and in Pub. L. 89-673, 80 Stat. 952.
(d) Representation of others. (1) During Commission employment. A
Commissioner is prohibited, except as permitted in the proper discharge
of his official duties or by express statutory exemption, from acting
with or without compensation as agent or attorney before a court or
government agency in a matter in which the United States is a party or
has a direct and substantial interest. (18 U.S.C. 203 and 205) This
prohibition does not prevent a Commissioner from:
(i) Representing any person without compensation in disciplinary,
loyalty, or other personnel matters, when not inconsistent with faithful
performance of duty;
(ii) Representing, with or without compensation, a parent, spouse,
child, or person or estate he serves as fiduciary, on matters in which
the United States is a party or has an interest except matters subject
to the Commissioner's official responsibility or in which the
Commissioner has participated personally and substantially, if the
Commissioner has first obtained the express written approval of the
President of the United States.
(iii) Giving the testimony under oath or making statements required
to be under penalty for perjury and contempt. (18 U.S.C. 205)
(2) Following termination of Commission employment. (i) A
Commissioner shall not, after his employment has ceased, knowingly act
as agent or attorney for anyone other than the United States in any
matter involving a specific party or parties in which the United States
is a party or has a direct and substantial interest and in which the
Commissioner at any time within one year substantially during his
Commission employment. (18 U.S.C. 207(a))
(ii) A Commissioner shall not, within one year after his Commission
employment has ceased, appear personally before any court or government
agency as agent or attorney for anyone other than the United States in
any matter involving a specific party or parties in which the United
States is a party or has a direct and substantial interest which was
under his official responsibility as a Commissioner at any time within
one year prior to the termination of such responsibility (18 U.S.C.
207(b)).
(iii) Section 385.2103 of this chapter prohibits a former
Commissioner from acting as attorney, expert witness, or representative
in connection with any proceeding before the Commission in which the
Commissioner participated during his service with the Commission unless
such appearance is expressly authorized by the Commission upon a
verified showing that it would not be contrary to the public interest
and unethical or prejudicial to the interests of the Commission.
(e) Outside employment -- (1) Incompatible activities. (i) A
Commissioner shall not engage in outside employment or other outside
activity not compatible with the full and proper discharge of the duties
and responsibilities of his Commission employment. Incompatible outside
employment and activities include, but are not limited to:
(ii) Outside employment of Commissioners in contravention of the
following provisions of section 1 of the Federal Power Act:
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 pecuniarily interested
therein, shall enter upon the duties of or hold the office of
Commissioner. Said Commissioners shall not engage in any other
business, vocation or employment. (16 U.S.C. 792)
Pursuant to Commission policy, Commissioners are subject to identical
restrictions in their employment relations to natural gas companies as
defined in section 2 of the Natural Gas Act. (15 U.S.C. 717a)
(iii) Outside employment by a public utility, licensee, or natural
gas company subject to the jurisdiction of the Commission, or by a
parent corporation of any of the foregoing, or by a person whose status
under the Federal Power Act or the Natural Gas Act is before the
Commission for determination; or by a person in any Commission
proceeding; or granted intervention.
(iv) Acceptance of a fee, compensation, gift, payment of expense, or
any other thing of monetary value in circumstances in which acceptance
may result in, or create the appearance of, a conflict of interest; or
(v) Outside employment which tends to impair the mental or physical
capacity of the Commissioner to perform his Commission duties and
responsibilities in an acceptable manner; or
(vi) Outside employment under conditions or arrangements that may
involve violation of law.
(2) Teaching, lecturing, writing. Commissioners are encouraged to
engage in teaching, lecturing, and writing that is not prohibited by
law, the Executive order, or the regulations in this subpart C.
(i) Commissioners shall not receive compensation or anything of
monetary value for any consultation, lecture, discussion, writing, or
appearance, the subject matter of which is devoted substantially to the
responsibilities, programs, or operations of the Commission.
(ii) Commissioners shall not, either for or without compensation,
engage in teaching, lecturing, or writing, including teaching, lecturing
or writing for the purpose of the special preparation of a person or
class of persons for an examination of the Civil Service Commission or
of the Board of Examiners for the Foreign Service, that is dependent on
information obtained as a result of Commission employment, except when
that information has been made available to the public or will be made
available on request or when the Executive Director has given written
authorization for the nonpublic information on the basis that the use is
in the public interest. For additional requirements and procedures
relating to the misuse and disclosure of information see 3c.206 (f) and
(g).
(f) Commissioners may not receive nongovernment reimbursement for
travel or expenditures on official business.
(g) Limitations on prohibitions of paragraphs (b) and (c) of this
section. The prohibitions of paragraphs (b) and (c) of this section do
not preclude a Commissioner from:
(1) Participation in the affairs of or acceptance of an award for a
meritorious public contribution or achievement given by charitable,
religious, professional, social, fraternal, nonprofit educational and
recreational, public service, or civil organization.
(2) Participation in the activities of national or state political
parties not prescribed by law.
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
18 CFR 3c.205 Ethical conduct.
(a) Use of government property. A Commissioner shall not directly or
indirectly use, or allow the use of, government property of any kind,
including property leased to the government, for other than officially
approved activities. A Commissioner has a positive duty to protect and
conserve government property, including equipment, supplies, and other
property entrusted or issued to him.
(b) Misuse of information. (1) For the purpose of furthering a
private interest, a Commissioner shall not, except as provided in
3c.204(e)(2) and paragraph (b)(3) of this section, directly or
indirectly use, or allow the use of, official information obtained
through or in connection with his Commission employment which has not
been made available to the general public.
(2) Part 388 of this chapter sets up the procedures for making
available to the public, information in the public files and records of
the Commission and specifies the particular files and records which are
not generally available to the public. Section 388.107 of this chapter
defines the responsibilities of Commissioners when served with a
subpoena duces tecum and outlines the procedures to be followed when the
material sought is not part of the public files and records of the
Commission.
(3) Section 30(b) (16 U.S.C. 825b) of the Federal Power Act and
section 8(b) (15 U.S.C. 717g) of the Natural Gas Act prohibit any
Commissioner in the absence of Commission or court direction, from
divulging any fact or information which may come to his knowledge during
the course of examination of books or other accounts.
(4) The nature and time of any proposed action by the Commission are
confidential and shall not be divulged to anyone outside the Commission.
The Secretary of the Commission has the exclusive responsibility and
authority for authorizing the initial public releases of information
concerning Commission actions or decisions.
(5) Section 385.2201 of this chapter states the prohibitions against
ex parte communications in on-the-record proceedings to Commissioners,
members of their personal staffs, Administrative Law Judge or other
employees participating in the decision in such proceedings.
(c) Indebtedness. Commissioners shall pay each just financial
obligation in a proper and timely manner, especially one imposed by law
such as Federal, State, or local taxes. A just financial obligation
means one acknowledged by the Commissioner or reduced to judgment by a
court, or one imposed by law such as Federal, State or local taxes, and
in a proper and timely manner means in a manner which the Commission
determines does not, under the circumstances, reflect adversely on the
Government as his employer. In the event of dispute between a
Commissioner and an alleged creditor, the Commission shall not be
required to determine the validity or amount of the disputed debt. Each
Commissioner should arrange his personal financial affairs to avoid any
request to the Commission for administrative action to assist in the
collection of debts.
(d) A Commissioner shall not participate, while on Government-owned
or leased property or while on duty for the Government, in any gambling
activity, including the operation of a gambling device, in conducting a
lottery or pool, in a game for money or property, or in selling or
purchasing a numbers slip or ticket. This paragraph does not preclude
fundraising activities by employee organizations under section 3 of the
Executive Order 10927, March 18, 1961, 26 FR 2383.
(e) Commissioners shall conduct themselves in such a manner that the
work of the Commission is effectively accomplished and shall also
observe the requirements of courtesy, consideration, and promptness in
dealing with or serving the public.
(f) Commissioners shall avoid any action, whether or not specifically
prohibited by 3c.204 and 3c.206 which might result in or create the
appearance of:
(1) Using public office for private gain; or
(2) Giving preferential treatment to any person; or
(3) Impeding government efficiency or economy; or
(4) Losing complete independence or impartiality of action;
(5) Making a government decision outside official channels; or
(6) Affecting adversely the confidence of the public in the integrity
of the Government and the Federal Power Commission.
(7) Commissioners shall not engage in criminal, infamous, dishonest,
immoral, or notoriously disgraceful conduct, or other conduct
prejudicial to the Government and to the Commission.
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
18 CFR 3c.206 Miscellaneous statutes and regulations.
Each Commissioner shall acquaint himself with the following statutes
and regulations relating to ethical conduct. The full texts of these
statutes and regulations are available in the offices of the Agency
Counselor and Director, Office of Personnel Programs.
(a) General. (1) House Concurrent Resolution 175, 85th Congress, 2d
Session, 72 Stat. B12, the ''Code of Ethics for Government Service,''
and Federal Power Commission Administrative Order No. 66, July 23,
1958, setting forth canons of conduct based on H. Con. Res. 175.
(2) Executive Order 11222, May 8, 1965, Prescribing Standards of
Ethical Conduct for Government Officers and Employees, 30 FR 6469, as
amended by Executive Order 11590 of April 22, 1971, 36 FR 7831, and the
implementing regulations issued by the Civil Service Commission, 30 FR
12529, 5 CFR part 735.
(3) Violation of any law, rule, or regulation, administered by the
Civil Service Commission, or failure to adhere to established policies,
regulations, standards, and instructions on personnel management subject
to the jurisdiction of the Commission (Civil Service Rule 5.4, 5 CFR
5.4).
(4) Refusal to furnish testimony or information to authorized
representatives of the Civil Service Commission in regard to matters
inquired of arising under the laws, rules, and regulations administered
by the Commission (Civil Service Regulation 731.201(d), 5 CFR
731.201(d)).
(5) Executive Order 10927, March 18, 1961, 26 FR 2383, Abolishing the
President's Committee on Fundraising within the Federal Service and
providing for the conduct of fundraising activities.
(6) The prohibitions relating to gifts to superiors (5 U.S.C. 7351).
(b) Personal conduct. (1) The provision relating to the habitual use
of intoxicants to excess. (5 U.S.C. 7352).
(2) The prohibition against criminal, infamous, dishonest, immoral,
or notoriously disgraceful conduct. (Civil Service Regulation
731.201(b), 5 CFR 731.201(b)).
(c) Disloyalty and striking. (1) The prohibitions against disloyalty
and striking (5 U.S.C. 7311, 18 U.S.C. 1918).1
(2) The prohibition against the employment of a member of a Communist
organization (50 U.S.C. 784).1 023
(d) Foreign governments. (1) The prohibition against accepting a
gift, present, decoration, or any other thing from a foreign government
unless authorized by Congress as provided by the Constitution and in
Pub. L. 89-673, 80 Stat. 952.
(2) The prohibition against serving while on annual leave or leave
without pay, with or without remuneration, for any foreign government,
corporation, partnership or individual that is in competition with
American industry (Executive Order 5221, November 11, 1929). (18 CFR
3.735-11)
(3) The prohibition against an employee acting as the agent of a
foreign principal registered under the Foreign Agents Registration Act
(18 U.S.C. 219).
(e) Political activities. (1) The prohibitions against political
activities (the former Hatch Act) in subchapter III of chapter 73 of
title 5, U.S.C. and 18 U.S.C. 602, 603, 607, and 608. The prohibitions,
and exemptions therefrom, with respect to Government employees holding
state, territorial, or municipal offices. (Civil Service Regulations, 5
CFR part 733)
(2) The prohibition against lobbying with appropriated funds (18
U.S.C. 1913).
(3) No part of the money appropriated by any enactment of Congress
shall, in absence of express authorization by Congress, be used directly
or indirectly to pay for any personal service, advertisement, telegram,
telephone, letter, printed or written matter, or other device, intended
or designed to influence in any manner a member of Congress, to favor or
oppose, by vote or otherwise, any legislation or appropriation by
Congress, whether before or after the introduction of any bill or
resolution proposing such legislation or appropriation; but this shall
not prevent officers or employees of the United States or of its
departments or agencies from communicating to Members of Congress on the
request of any Member or to Congress, through the proper official
channels, requests for legislation or appropriations which they deem
necessary for the efficient conduct of the public business. The penalty
for violation includes fine or imprisonment and removal.
(f) Disclosure of information. (1) Section 301(b) (16 U.S.C. 825b)
of the Federal Power Act and section 8(b) (15 U.S.C. 717g) of the
Natural Gas Act forbid employees, in the absence of Commission or court
direction from divulging information gained in examining books or
accounts.
(2) Part 388 of this chapter outlines what is public information and
what is not.
(3) Section 385.2201 describes the prohibitions against ex parte
communications.
(4) Federal Power Commission Administrative Order No. 56, July 11,
1956, describes standards of conduct relating to ''Official Staff
Contacts Outside the Commission''.
(g) The prohibitions against (1) the disclosure of classified
information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of
confidential information. (18 U.S.C. 1905)
(h) Bribery, graft, and conflicts of interest. (1) Chapter 11 of
title 18, United States Code, especially:
Sec. 201 Bribery of public officials and witnesses.
Sec. 202 Definitions.
Sec. 203 and 209 Outside compensation in matters affecting the
government.
Sec. 205 Activities in claims against and other matters affecting the
government.
Sec. 207 Disqualification of former officers and employees in matters
connected with former duties.
Sec. 208 Acts affecting personal financial interests.
Sec. 210 Offer to procure appointive public office.
Sec. 211 Acceptance or solicitation to obtain appointive public
office.
(2) Federal Power Act, section 1 (16 U.S.C. 792) restricting outside
employment and financial interests of Commissioners.
(3) Section 385.2103 of this chapter states the restrictions against
appearances by former employees.
(i) Fraud and deceit, embezzlement, extortion. (1) The prohibition
against the use of deceit in an examination or personnel action in
connection with Government employment (18 U.S.C. 1917). The prohibition
against intentional false statements or deception or fraud in
examination for appointment (Civil Service Regulation 731.201(c), 5 CFR
731.201(c)). The prohibition against influencing another to withdraw
from competition for any position in the competitive service for the
purpose of either improving or injuring the prospects of any applicant
for appointment. (Civil Service Rule 4.3, 5 CFR 4.3)
(2) The prohibition against fraud or false statements in a Government
matter. (18 U.S.C. 1001)
(3) The prohibition against counterfeiting and forging transportation
requests. (18 U.S.C. 508)
(4) The prohibition against (i) embezzlement of Government money or
property (18 U.S.C. 641); (ii) failing to account for public money (18
U.S.C. 643); and (iii) embezzlement of the money or property of another
person in the possession of an employee by reason of his employment.
(18 U.S.C. 654)
(5) The prohibition against extortion. (18 U.S.C. 872)
(j) Misuse of Government property. (1) The prohibition against the
misuse of a Government vehicle. (31 U.S.C. 638a(c))
(2) The prohibition against the misuse of the franking privilege.
(18 U.S.C. 1719)
(3) The prohibition against mutilating or destroying a public record.
(18 U.S.C. 2071)
(4) The prohibition against unauthorized use of documents relating to
claims from or by the Government (18 U.S.C. 285). (Order 319, 31 FR
4118, March 9, 1966, as amended by Order 353, 32 FR 15239, 15240,
November 3, 1967.)
(Order 532, 40 FR 29275, July 11, 1975. Redesignated by Order 564, 42
FR 17451, Apr. 1, 1977, and amended by Order 225, 47 FR 19055, May 3,
1982)
0231An employee who advocates the overthrow of our constitutional
form of government, or is a member of an organization knowing it so
advocates, shall be dismissed. Strikes against the government are
forbidden as well as membership in government employee organizations
which assert the right to strike against any Federal department or
agency.
18 CFR 3c.206 SUBCHAPTER B -- REGULATIONS UNDER THE FEDERAL POWER ACT
18 CFR 3c.206 PART 4 -- LICENSES, PERMITS, EXEMPTIONS, AND DETERMINATION OF PROJECT COSTS
18 CFR 3c.206 Pt. 4
18 CFR 3c.206 Subpart A -- Determination of Cost of Projects
Constructed Under License
Sec.
4.1 Initial cost statement.
4.3 Report on project cost.
4.4 Service of report.
4.5 Time for filing protest.
4.6 Burden of proof.
4.7 Findings.
18 CFR 3c.206 Subpart B -- Determination of Fair Value of Constructed
Projects, Under Section 23(a) of the Act
4.10 Valuation data.
4.11 Reports.
4.12 Service of report.
4.13 Time for filing protest.
4.14 Hearing upon report.
18 CFR 3c.206 Subpart C -- Determination of Cost of Constructed
Projects not Subject to Section 23(a) of the Act
4.20 Initial statement.
4.21 Reports.
4.22 Service of report.
4.23 Time for filing protest.
4.24 Determination of cost.
4.25 Findings.
18 CFR 3c.206 Subpart D -- Application for Preliminary Permit, License
or Exemption: General Provisions
4.30 Applicability and definitions.
4.31 Initial or competing application: who may file.
4.32 Acceptance for filing or rejection; information to be made
available to the public; requests for additional studies.
4.33 Limitations on submitting applications.
4.34 Hearings on applications; consultation on terms and conditions;
motions to intervene.
4.35 Amendment of application; date of acceptance.
4.36 Competing applications: deadlines for filing; notices of
intent; comparisons of plans of development.
4.37 Rules of preference among competing applications.
4.38 Consultation requirements.
4.39 Specifications for maps and drawings.
18 CFR 3c.206 Subpart E -- Application for License for Major
Unconstructed Project and Major Modified Project
4.40 Applicability.
4.41 Contents of application.
18 CFR 3c.206 Subpart F -- Application for License for Major Project --
Existing Dam
4.50 Applicability.
4.51 Contents of application.
18 CFR 3c.206 Subpart G -- Application for License for Minor Water
Power Projects and Major Water Power Projects 5 Megawatts or Less
4.60 Applicability and notice to agencies.
4.61 Contents of application.
18 CFR 3c.206 Subpart H -- Application for License for Transmission
Line Only
4.70 Applicability.
4.71 Contents of application.
18 CFR 3c.206 Subpart I -- Application for Preliminary Permit;
Amendment and Cancellation of Preliminary Permit
4.80 Applicability.
4.81 Contents of application.
4.82 Amendments.
4.83 Cancellation and loss of priority.
4.84 Surrender of permit.
18 CFR 3c.206 Subpart J -- Exemption of Small Conduit Hydroelectric
Facilities
4.90 Applicability and purpose.
4.91 (Reserved)
4.92 Contents of exemption application.
4.93 Action on exemption applications.
4.94 Standard terms and conditions of exemption.
4.95 Surrender of exemption.
4.96 Amendment of exemption.
18 CFR 3c.206 Subpart K -- Exemption of Small Hydroelectric Power
Projects of 5 Megawatts or Less
4.101 Applicability.
4.102 Surrender of exemption.
4.103 General provisions for case-specific exemption.
4.104 Amendment of exemption.
4.105 Action on exemption applications.
4.106 Standard terms and conditions of case-specific exemption from
licensing.
4.107 Contents of application for exemption from licensing.
4.108 Contents of application for exemption from provisions other
than licensing.
18 CFR 3c.206 Subpart L -- Application for Amendment of License
4.200 Applicability.
4.201 Contents of application.
4.202 Alteration and extension of license.
18 CFR 3c.206 Subpart M -- Fees Under Section 30(e) of the Act
4.300 Purpose, definitions, and applicability.
4.301 Notice to fish and wildlife agencies and estimation of fees
prior to filing.
4.302 Fees at filing.
4.303 Post-filing procedures.
4.304 Payment.
4.305 Enforcement.
Authority: 16 U.S.C. 791a-825r; 16 U.S.C. 2601-2645; 42 U.S.C.
7l0l-7352; E.O. 12009, 3 CFR, 1978 Comp., p. 142.
Source: Order 141, 12 FR 8485, Dec. 19, 1947, unless otherwise
noted.
18 CFR 3c.206 Subpart A -- Determination of Cost of Projects Constructed Under License
18 CFR 4.1 Initial cost statement.
(a) Notification of Commission. When a project is constructed under
a license issued under the Federal Power Act, the licensee shall, within
one year after the original project is ready for service, file with the
Commission a letter, in quadruplicate, declaring that the original costs
have been booked in compliance with the Commission's Uniform System of
Accounts and the books of accounts are ready for audit.
(b) Licensee's books. The licensee's books of accounts for each
project shall be maintained in such a fashion that each year's
additions, betterments, and delections to the project may be readily
ascertained.
(c) Availability of information to the public. The information made
available to the Commission in accordance with this section must be
available to the public for inspection and copying when specifically
requested.
(d) Compliance with the Act. Compliance with the provisions of this
section satisfies the filing requirements of section 4(b) of the Federal
Power Act (16 U.S.C. 797(b)).
(Order 53, 44 FR 61948, Oct. 29, 1979)
18 CFR 4.3 Report on project cost.
(a) Scheduling an audit. When the original cost declaration letter,
filed in accordance with 4.1 is received by the Commission, its
representative will sechedule and conduct an audit of the books, cost
records, engineering reports, and other records supporting the project's
original cost. The audit may include an inspection of the project
works.
(b) Project records. The cost records shall be supported by
memorandum accounts reflecting the indirect and overhead costs prior to
their spread to primary accounts as well as all the details of
allocations including formulas utilized to spread the indirect and
overhead costs to primary accounts.
(c) Report by Commission staff. Upon completion of the audit, a
report will be prepared for the Commission setting forth the audit
findings and recommendations with respect to the cost as claimed.
(Order 53, 44 FR 61948, Oct. 29, 1979)
18 CFR 4.4 Service of report.
Copies of such report will be served by certified mail upon said
licensees, and copies will also be sent to the State public service
commission, or if the States has not regulatory agency, to the Governor
of the State where such project is located, and to such other parties as
the Commission shall prescribe, and the report will be made available
for public inspection at the time of service upon the licensee.
(Administrative Procedure Act, 5 U.S.C. 551-557 (1976); Federal
Power Act, as amended, 16 U.S.C. 291-628 (1976 & Supp. V 1981), Dept.
of Energy Organization Act 42 U.S.C. 7101-7352 (Supp. V 1981); E.O.
12009, 3 CFR 142 (1978))
(Order 141, 12 FR 8485, Dec. 19, 1947, as amended by Order 344, 48 FR
49010, Oct. 24, 1983)
18 CFR 4.5 Time for filing protest.
Thirty days after service thereof will be allowed to such licensee
within which to file a protest to such reports. If no protest is filed
within the time allowed, the Commission will issue such order as may be
appropriate. If a protest is filed, a public hearing will be ordered in
accordance with subpart E of part 385 of this chapter.
(Order 141, 12 FR 8485, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 4.6 Burden of proof.
The burden of proof to sustain each item of claimed cost shall be
upon the licensee and only such items as are in the opinion of the
Commission supported by satisfactory proof may be entered in the
electric plant accounts of the licensee.
(Order 53, 44 FR 61948, Oct. 29, 1979)
18 CFR 4.7 Findings.
(a) Commission determination. Final action by the Commission will be
in the form of an order served upon all parties to the proceeding. One
copy of the order will be furnished to the Secretary of Treasury by the
Commission.
(b) Adjustments to licensee's books. The licensee's books of account
for the project shall be adjusted to conform to the actual legitimate
cost as revised by the order of the Commission. These adjustments and
the project may be audited by Commission representatives, as scheduled.
(Order 53, 44 FR 61948, Oct. 29, 1979)
18 CFR 4.7 Subpart B -- Determination of Fair Value of Constructed Projects, Under Section 23(a) of the Act
18 CFR 4.10 Valuation data.
(a) Notification of Commission. In every case arising under section
23(a) of the Federal Power Act that requires the determination of the
fair value of a project already constructed, the licensee shall, within
six months after the date of issuance of a license, file with the
Commission a letter, in quadruplicate.
(b) Contents of letter. The letter referred to in paragraph (a)
shall contain a statement to the effect that an inventory and appraisal
in detail, as of the effective date of the license, of all property
subject thereto and to be so valued has been completed. The letter
shall also include a statement to the effect that the actual legitimate
original cost, or if not known, the estimated original cost, and accrued
depreciation of the property, classified by prime accounts as prescribed
in the Commission's Uniform System of Accounts, have been established.
(c) Licensee's books. The licensee's books of account for each
project shall be maintained in such a fashion that each year's
additions, betterments, and deletions to the projects may be readily
ascertained.
(d) Availability of information to the public. The information made
available to the Commission in accordance with this section must be
available for inspection and copying by the public when specifically
requested.
(Order 53, 44 FR 61948, Oct. 29, 1979)
18 CFR 4.11 Reports.
Representatives of the Commission will inspect the project works,
engineering reports, and other records of the project, check the
inventory and make an appraisal of the property and an audit of the
books, records, and accounts of the licensee relating to the property to
be valued, and will prepare a report of their findings with respect to
the inventory, appraisal, original cost, accrued depreciation, and fair
value of the property.
18 CFR 4.12 Service of report.
A copy of such report will be served by certified mail upon said
licensee, and copies will also be sent to the State public service
commission, or if the State has no regulatory agency, to the Governor of
the State where such project is located. The report will be made
available for public inspection at the time of service upon the
licensee.
(Administrative Procedure Act, 5 U.S.C. 551-557 (1976); Federal
Power Act, as amended, 16 U.S.C. 291-628 (1976 & Supp. V 1981), Dept.
of Energy Organization Act 42 U.S.C. 7101-7352 (Supp. V 1981); E.O.
12009, 3 CFR 142 (1978))
(Order 141, 12 FR 8485, Dec. 19, 1947, as amended by Order 344, 48 FR
49010, Oct. 24, 1983)
18 CFR 4.13 Time for filing protest.
Thirty days after service thereof will be allowed to the licensee
within which to file a protest to such report.
18 CFR 4.14 Hearing upon report.
(a) Public hearing. After the expiration of the time within which a
protest may be filed, a public hearing will be ordered in accordance
with subpart E of part 385 of this chapter.
(b) Commission determination. After the conclusion of the hearing,
the Commission will make a finding of fair value, accompanied by an
order which will be served upon the licensee and all parties to the
proceeding. One copy of the order shall be furnished to the Secretary
of the Treasury by the Commission.
(c) Adjustment to licensee's books. The licensee's books of account
for the project shall be adjusted to conform to the fair value of the
project as revised by the order of the Commission. These adjustments
and the project may be audited by Commission representatives, as
scheduled.
(Order 53, 44 FR 61949, Oct. 29, 1979, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 4.14 Subpart C -- Determination of Cost of Constructed Projects not Subject to Section 23(a) of the Act
18 CFR 4.20 Initial statement.
(a) Notification of Commission. In all cases where licenses are
issued for projects already constructed, but which are not subject to
the provisions of section 23(a) of the Act (49 Stat. 846; 16 U.S.C.
816), the licensee shall, within 6 months after the date of issuance of
license, file with the Commission a letter, in quadruplicate.
(b) Contents of letter. The letter referred to in paragraph (a) of
this section shall contain a statement to the effect that an inventory
in detail of all property included under the license, as of the
effective date of such license, has been completed. The letter shall
also include a statement to the effect that actual legitimate original
cost, or if not known, the estimated original cost, and accrued
depreciation of the property, classified by prime accounts as prescribed
in the Commission's Uniform System of Accounts, have been established.
(c) Licensee's books. The licensee's books of account for each
project shall be maintained in such a fashion that each year's
additions, betterments, and deletions to the project may be readily
ascertained.
(d) Availability of information to the public. The information made
available to the Commission in accordance with this section must be
available for inspection and copying by the public when specifically
requested.
(e) Compliance with the Act. Compliance with the provisions of this
section satisfies the filing requirements of section 4(b) of the Federal
Power Act (16 U.S.C. 797(b)).
(Order 53, 44 FR 61949, Oct. 29, 1979)
18 CFR 4.21 Reports.
Representatives of the Commission will inspect the project works,
engineering reports, and other records of the project, check the
inventory and estimated depreciation, make an audit of the books,
records, and accounts of the licensee relating to the property under
license, and prepare a report of their findings with respect to the
inventory, the original cost of the property, and the estimated accrued
depreciation thereon.
18 CFR 4.22 Service of report.
Copies of such report will be served by certified mail upon said
licensees, and copies will also be sent to the State public service
commission, or if the State has no regulatory agency, to the Governor of
the State where such project is located, and to such other parties as
the Commission shall prescribe, and the report will be made available
for public inspection at the time of service upon the licensee.
(Administrative Procedure Act, 5 U.S.C. 551-557 (1976); Federal
Power Act, as amended, 16 U.S.C. 291-628 (1976 & Supp. V 1981), Dept.
of Energy Organization Act 42 U.S.C. 7101-7352 (Supp. V 1981); E.O.
12009, 3 CFR 142 (1978))
(Order 141, 12 FR 8485, Dec. 19, 1947, as amended by Order 344, 48 FR
49010, Oct. 24, 1983)
18 CFR 4.23 Time for filing protest.
Thirty days after service thereof will be allowed to such licensee
within which to file a protest to such reports. If no protest is filed
within the time allowed, the Commission will issue such order as may be
appropriate. If a protest is filed, a public hearing will be ordered in
accordance with subpart E of part 385 of this chapter.
(Order 141, 12 FR 8485, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 4.24 Determination of cost.
The Commission, after receipt of the reports, or after the conclusion
of the hearing if one is held, will determine the amounts to be included
in the electric plant accounts of the licensee as the cost of the
property and the accrued depreciation thereon.
18 CFR 4.25 Findings.
(a) Commission determination. Final action by the Commission will be
in the form of an order served upon all parties to the proceeding. One
copy of the order shall be furnished to the Secretary of Treasury by the
Commission.
(b) Adjustment to licensee's books. The licensee's books of account
for the project shall be adjusted to conform to the actual legitimate
cost as revised by the order of the Commission. These adjustments and
the project may be audited by Commission representatives, as scheduled.
(Order 53, 44 FR 61949, Oct. 29, 1979)
18 CFR 4.25 Subpart D -- Application for Preliminary Permit, License or
Exemption: General Provisions
Authority: Federal Power Act, as amended, 16 U.S.C. 792-828c;
Department of Energy Organization Act, 42 U.S.C. 7101-7352; E.O.
12009, 42 FR 46267; Public Utility Regulatory Policies Act of 1978, 16
U.S.C. 2601-2645; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et
seq.).
18 CFR 4.30 Applicability and definitions.
(a) This subpart applies to any application for preliminary permit,
license, or exemption from licensing.
(b) For the purposes of this part --
(1)(i) Competing development application means any application for a
license or exemption from licensing for a proposed water power project
that would develop, conserve, and utilize, in whole or in part, the same
or mutually exclusive water resources that would be developed,
conserved, and utilized by a proposed water power project for which an
initial preliminary permit or initial development application has been
filed and is pending before the Commission.
(ii) Competing preliminary permit application means any application
for a preliminary permit for a proposed water power project that would
develop, conserve, and utilize, in whole or in part, the same or
mutually exclusive water resources that would be developed, conserved
and utilized by a proposed water power project for which an initial
preliminary permit or initial development application has been filed and
is pending before the Commission.
(2) Conduit means any tunnel, canal, pipeline, aqueduct, flume,
ditch, or similar manmade water conveyance that is operated for the
distribution of water for agricultural, municipal, or industrial
consumption and not primarily for the generation of electricity. The
term not primarily for the generation of electricity includes but is not
limited to a conduit:
(i) Which was built for the distribution of water for agricultural,
municipal, or industrial consumption and is operated for such a purpose;
and
(ii) To which a hydroelectric facility has been or is proposed to be
added.
(3) Construction of a dam, for the purposes of provisions governing
application for exemption of a small conduit hydroelectric facility,
means any construction, repair, reconstruction, or modification of a dam
that creates a new impoundment or increases the normal maximum surface
elevation or the normal maximum surface area of an existing impoundment.
(4)(i) Dam, for the purposes of provisions governing application for
license of a major project -- existing dam, means any structure for
impounding or diverting water.
(ii) Dam, for the purposes of provisions governing application for
exemption of a small conduit hydroelectric facility, means any structure
that impounds water.
(iii) Dam, for the purposes of provisions governing application for
exemption of a small hydroelectric power project, means any structure
for impounding water, including any diversion structure that is designed
to obstruct all or substantially all of the flow of a natural body of
water.
(5) Development application means any application for either a
license or exemption from licensing for a proposed water power project.
(6)(i) Existing dam, for the purposes of provisions governing
application for license of a major project -- existing dam, means any
dam (as defined in paragraph (b)(4)(i) of this section) that has already
been constructed and which does not require any construction or
enlargement of impoundment structures other than repairs or
reconstruction.
(ii) Existing dam, for the purposes of provisions governing
application for exemption of a small hydroelectric power project, means
any dam, the construction of which was completed on or before April 20,
1977, and which does not require any construction or enlargement of
impoundment structures (other than repairs or reconstruction) in
connection with the installation of any small hydroelectric power
project.
(7) Existing impoundment, for the purposes of provisions governing
application for license of a major project -- existing dam, means any
body of water that an existing dam impounds.
(8) Federal lands, for the purposes of provisions governing
application for exemption of a small hydroelectric power project, means
any lands to which the United States holds fee title.
(9)(i) Fish and wildlife agencies means the United States Fish and
Wildlife Service, the National Marine Fisheries Service, and the state
agency in charge of administrative management over fish and wildlife
resources of the state in which a proposed hydropower project is
located.
(ii) Fish and wildlife recommendation means any recommendation
designed to protect, mitigate damages to, or enhance any wild member of
the animal kingdom, including any migratory or nonmigratory mammal,
fish, bird, amphibian, reptile, mollusk, crustacean, or other
invertebrate, whether or not bred, hatched, or born in captivity, and
includes any egg or offspring thereof, related breeding or spawning
grounds, and habitat. A ''fish and wildlife recommendation'' includes a
request for a study which cannot be completed prior to licensing, but
does not include a request that the proposed project not be constructed
or operated, a request for additional pre-licensing studies or analysis
or, as the term is used in 4.34(e)(2) and 4.34(f)(3), a recommendation
for facilities, programs, or other measures to benefit recreation or
tourism.
(iii) Fishway means any structure, facility, or device used for the
passage of fish through, over, or around the project works of a
hydropower project, such as fish ladders, fish locks, fish lifts and
elevators, and similar physical contrivances, where passage of a
population is necessary for the life cycle of a fish species; and those
screens, barriers, and similar devices that operate to guide fish to a
fishway; and flows within the fishway necessary for its operation.
(10) Indian tribe means, in reference to a proposal to apply for a
license or exemption for a hydropower project, an Indian tribe which is
recognized by treaty with the United States, by federal statute, or by
the U.S. Department of the Interior in its periodic listing of tribal
governments in the Federal Register in accordance with 25 CFR 83.6(b),
and whose legal rights as a tribe may be affected by the development and
operation of the hydropower project proposed (as where the operation of
the proposed project could interfere with the management and harvest of
anadromous fish or where the project works would be located within the
tribe's reservation).
(11)(i) Initial development application means any acceptable
application for either a license or exemption from licensing for a
proposed water power project that would develop, conserve, and utilize,
in whole or in part, water resources for which no other acceptable
application for a license or exemption from licensing has been submitted
for filing and is pending before the Commission.
(ii) Initial preliminary permit application means any acceptable
application for a preliminary permit for a proposed water power project
that would develop, conserve, and utilize, in whole or in part, water
resources for which no other acceptable preliminary permit application
has been submitted for filing and is pending before the Commission.
(12) Install or increase, for the purposes of provisions governing
application for exemption of a small hydroelectric power project, means
to add new generating capacity at a site that has no existing generating
units, to replace or rehabilitate an abandoned or unused existing
generating unit, or to increase the generating capacity of any existing
power plant by installing an additional generating unit or by
rehabilitating an operable generating unit in a way that increases its
rated electric power output.
(13) Licensed water power project means a project, as defined in
section 3(11) of the Federal Power Act, that is licensed under Part I of
the Federal Power Act.
(14) Major modified project means any major project -- existing dam,
as defined in paragraph (b)(16) of this section, that would include:
(i) Any repair, modification or reconstruction of an existing dam
that would result in a significant change in the normal maximum surface
area or the normal maximum surface elevation of an existing impoundment;
or
(ii) Any change in existing project works or operations that would
result in a significant environmental impact.
(15) Major unconstructed project means any unlicensed water power
project that would:
(i) Have a total installed generating capacity of more than 1.5 MW;
and
(ii) Use the water power potential of a dam and impoundment which, at
the time application is filed, have not been constructed.
(16) Major project -- existing dam means a licensed or unlicensed,
existing or proposed water power project that would:
(i) Have a total installed generating capacity or more than 2,000
horsepower (1.5 MW); and
(ii) Not use the water power potential provided by any dam except an
existing dam.
(17) Minor water power project means any licensed or unlicensed,
existing or proposed water power project that would have a total
installed generation capacity of 2,000 horsepower (1.5 MW), or less.
(18) New development, for the purposes of provisions governing
application for license of a major project -- existing dam, means any
construction, installation, repair, reconstruction, or other change in
the existing state of project works or appurtenant facilities, including
any dredging and filling in project waters.
(19) New license means any license, except an annual license issued
under section 15 of the Federal Power Act, for a water power project
that is issued under the Federal Power Act after the initial license for
that project.
(20)(i) Non-Federal lands, for the purposes of provisions governing
application for exemption of a small conduit hydroelectric facility,
means any lands except lands to which the United States holds fee title.
(ii) Non-Federal lands, for the purposes of provisions governing
application for exemption of a small hydroelectric power project, mean
any lands other than Federal lands defined in paragraph (b)(8) of this
section.
(21) Person means any individual and, as defined in section 3 of the
Federal Power Act, any corporation, municipality, or state.
(22) Project, for the purposes of provisions governing application
for exemption of a small hydroelectric power project, means:
(i) The impoundment and any associated dam, intake, water conveyance
facility, power plant, primary transmission line, and other appurtenant
facility if a lake or similar natural impoundment or a manmade
impoundment is used for power generation; or
(ii) Any diversion structure other than a dam and any associated
water conveyance facility, power plant, primary transmission line, and
other appurtenant facility if a natural water feature other than a lake
or similar natural impoundment is used for power generation.
(23) Qualified exemption applicant means any person who meets the
requirements specified in 4.31(c)(2) with respect to a small
hydroelectric power project for which exemption from licensing is
sought.
(24) Qualified license applicant means any person to whom the
Commission may issue a license, as specified in section 4(e) of the
Federal Power Act.
(25) Ready for environmental analysis means the point in the
processing of an application for an original or new license or exemption
from licensing which has been accepted for filing, where substantially
all additional information requested by the Commission has been filed
and found adequate.
(26) Real property interests, for the purposes of provisions
governing application for exemption of a small conduit hydroelectric
facility or a small hydroelectric power project, includes ownership in
fee, rights-of-way, easements, or leaseholds.
(27) Resource agency means a Federal, state, or interstate agency
exercising administration over the areas of flood control, navigation,
irrigation, recreation, fish and wildlife, water resource management
(including water rights), or cultural or other relevant resources of the
state or states in which a project is or will be located.
(28) Small conduit hydroelectric facility means an existing or
proposed hydroelectric facility that is constructed, operated, or
maintained for the generation of electric power, and includes all
structures, fixtures, equipment, and lands used and useful in the
operation or maintenance of the hydroelectric facility, but excludes the
conduit on which the hydroelectric facility is located or the
transmission lines associated with the hydroelectric facility and which:
(i) Utilizes for electric power generation the hydroelectric
potential of a conduit;
(ii) Is located entirely on non-Federal lands, as defined in
paragraph (b)(20)(i) of this section;
(iii) Has an installed generating capacity of 15 MW or less;
(iv) Is not an integral part of a dam;
(v) Discharges the water it uses for power generation either:
(A) Into a conduit;
(B) Directly to a point of agricultural, municipal, or industrial
consumption; or
(C) Into a natural water body if a quantity of water equal to or
greater than the quantity discharged from the hydroelectric facility is
withdrawn from that water body downstream into a conduit that is part of
the same water supply system as the conduit on which the hydroelectric
facility is located; and
(vi) Does not rely upon construction of a dam, which construction
will create any portion of the hydrostatic head that the facility uses
for power generation unless that construction would occur for
agricultural, municipal, or industrial consumptive purposes even if
hydroelectric generating facilities were not installed.
(29) Small hydroelectric power project means any project in which
capacity will be installed or increased after the date of notice of
exemption or application under subpart K of this chapter, which will
have a total installed capacity of not more than 5 MW, and which:
(i) Would utilize for electric power generation the water power
potential of an existing dam that is not owned or operated by the United
States or by an instrumentality of the Federal Government, including the
Tennessee Valley Authority; or
(ii)(A) Would utilize for the generation of electricity a natural
water feature, such as a natural lake, waterfall, or the gradient of a
natural stream, without the need for a dam or man-made impoundment; and
(B) Would not retain water behind any structure for the purpose of a
storage and release operation.
(30) PURPA benefits means benefits under section 210 of the Public
Utility Regulatory Policies Act of 1978 (PURPA). Section 210(a) of
PURPA requires electric utilities to purchase electricity from, and to
sell electricity to, qualifying facilities.
(Order 413, 50 FR 11676, Mar. 25, 1985, as amended by Order 487, 52
FR 48404, Dec. 22, 1987; Order 499, 53 FR 27001, July 18, 1988; Order
503, 53 FR 36567, Sept. 21, 1988; 56 FR 23146, May 20, 1991; 56 FR
61154, Dec. 2, 1991; 57 FR 10809, Mar. 31, 1992)
18 CFR 4.31 Initial or competing application: who may file.
(a) Application for a preliminary permit or a license. Any citizen,
association of citizens, domestic corporation, municipality, or state
may submit for filing an initial application or a competing application
for a preliminary permit or a license for a water power project under
Part I of the Federal Power Act.
(b) Application for exemption of a small conduit hydroelectric
facility -- (1) Exemption from provisions other than licensing. Any
citizen, association of citizens, domestic corporation, municipality, or
state that has all of the real property interests in the lands necessary
to develop and operate that project, or an option to obtain those
interests, may apply for exemption of a small conduit hydroelectric
facility from provisions of Part I of the Federal Power Act, other than
licensing provisions.
(2) Exemption from licensing. Any person having all the real
property interests in the lands necessary to develop and operate the
small conduit hydroelectric facility, or an option to obtain those
interests, may apply for exemption of that facility from licensing under
Part I of the Federal Power Act.
(c) Application for case-specific exemption of a small hydroelectric
power project -- (1) Exemption from provisions other than licensing.
Any qualified license applicant or licensee seeking amendment of its
license may apply for exemption of the related project from provisions
of Part I of the Federal Power Act other than licensing provisions.
(2) Exemption from licensing -- (i) Only Federal lands involved. If
only rights to use or occupy Federal lands would be necessary to develop
and operate the proposed small hydroelectric power project, any person
may apply for exemption of that project from licensing.
(ii) Some non-Federal lands involved. If real property interests in
any non-Federal lands would be necessary to develop and operate the
proposed small hydroelectric power project, any person who has all of
the real property interests in non-Federal lands necessary to develop
and operate that project, or an option to obtain those interests, may
apply for exemption of that project from licensing.
(Order 413, 50 FR 11678, Mar. 25, 1985)
18 CFR 4.32 Acceptance for filing or rejection; information to be made
available to the public; requests for additional studies.
(a) Each application must:
(1) For a preliminary permit or license, identify every person,
citizen, association of citizens, domestic corporation, municipality, or
state that has or intends to obtain and will maintain any proprietary
right necessary to construct, operate, or maintain the project;
(2) For a preliminary permit or a license, identify (providing names
and mailing addresses):
(i) Every county in which any part of the project, and any Federal
facilities that would be used by the project, would be located;
(ii) Every city, town, or similar local political subdivision:
(A) In which any part of the project, and any Federal facilities that
would be used by the project, would be located; or
(B) That has a population of 5,000 or more people and is located
within 15 miles of the project dam;
(iii) Every irrigation district, drainage district, or similar
special purpose political subdivision:
(A) In which any part of the project, and any Federal facilities that
would be used by the project, would be located; or
(B) That owns, operates, maintains, or uses any project facilities or
any Federal facilities that would be used by the project;
(iv) Every other political subdivision in the general area of the
project that there is reason to believe would likely be interested in,
or affected by, the application; and
(v) All Indian tribes that may be affected by the project.
(3)(i) For a license (other than a license under section 15 of the
Federal Power Act) state that the applicant has made, either at the time
of or before filing the application, a good faith effort to give
notification by certified mail of the filing of the application to:
(A) Every property owner of record of any interest in the property
within the bounds of the project, or in the case of the project without
a specific boundary, each such owner of property which would underlie or
be adjacent to any project works including any impoundments; and
(B) The entities identified in paragraph (a)(2) of this section, as
well as any other Federal, state, municipal or other local government
agencies that there is reason to believe would likely be interested in
or affected by such application.
(ii) Such notification must contain the name, business address, and
telephone number of the applicant and a copy of the Exhibit G contained
in the application, and must state that a license application is being
filed with the Commission.
(4)(i) As to any facts alleged in the application or other materials
filed, be subscribed and verified under oath in the form set forth in
paragraph (a) (3)(ii) of this section by the person filing, an officer
thereof, or other person having knowledge of the matters sent forth. If
the subscription and verification is by anyone other than the person
filing or an officer thereof, it shall include a statement of the
reasons therefor.
(ii) This (application, etc.) is executed in the
State of
County of
by: --------------------
(Name) --------------------
(Address)
being duly sworn, depose(s) and say(s) that the contents of this
(application, etc.) are true to the best of (his or her) knowledge or
belief. The undersigned applicant(s) has (have) signed the
(application, etc.) this ------ day of ------------ , 19 ---- .
--
(Applicant(s))
By:
Subscribed and sworn to before me, a (Notary Public, or title of
other official authorized by the state to notarize documents, as
appropriate) of the State of ------------ this day of ---------- , 19
---- .
/SEAL/ (if any)
--
(Notary Public, or other authorized official)
(5) Contain the information and documents prescribed in the following
sections of this chapter, according to the type of application:
(i) Preliminary permit: 4.81;
(ii) License for a minor water power project and a major water power
project 5 MW or less: 4.61;
(iii) License for a major unconstructed project and a major modified
project: 4.41;
(iv) License for a major project -- existing dam: 4.51;
(v) License for a transmission line only: 4.71;
(vi) Nonpower license for a licensed project: 16.7;
(vii) Exemption of a small conduit hydroelectric facility: 4.92;
(viii) Case-specific exemption of a small hydroelectric power
project: 4.107; or
(ix) License or exemption for a project located at a new dam or
diversion where the applicant seeks PURPA benefits: 292.208.
(b)(1) Each applicant for a preliminary permit or a license must
submit to the Commission's Secretary for filing an original and fourteen
copies of the application and five sets of full-sized prints. The
applicant must serve one copy of the application on the Commission's
Regional Engineer for the appropriate region and on each consulted
agency. The application may also include reduced prints of maps and
drawings conforming to 4.39(d). The originals (microfilm) of maps and
drawings included in a license application under 4.39(a) are not to be
filed initially, but will be requested pursuant to paragraph (d) of this
section.
(2) Each applicant for exemption must submit to the Commission's
Secretary for filing an original and fourteen copies of the application
and five sets of full-sized prints. An applicant must serve one copy of
the application on the Commission's Regional Engineer for the
appropriate region and on each consulted agency. Maps and drawings need
not conform to the requirements of 4.39, but must be of sufficient
size, scale, and quality to permit easy reading and understanding. The
original (microfilm) of maps and drawings are not to be filed initially,
but will be requested pursuant to paragraph (d) of this section.
(3)(i) An applicant must make information regarding its proposed
project reasonably available to the public for inspection and
reproduction, from the date on which the applicant files its application
for a license or exemption until the licensing or exemption proceeding
for the project is terminated by the Commission. This information
includes a copy of the complete application for license or exemption,
together with all exhibits, appendices and any amendments, and any
comments, pleadings, supplementary or additional information, or
correspondence filed by the applicant with the Commission in connection
with the application.
(ii) An applicant must delete from any information made available to
the public under this section, specific site or property locations the
disclosure of which would create a risk of harm, theft, or destruction
of archeological or Native American cultural resources or to the site at
which the sources are located, or would violate any federal law,
including the Archaeological Resources Protection Act of l979, 16 U.S.C.
470w-3, and the National Historic Preservation Act of 1966, 16 U.S.C.
470hh.
(4)(i) An applicant must make available the information specified in
paragraph (b)(3) of this section in a form that is readily accessible,
reviewable, and reproducible, at the same time as the information is
filed with the Commission or required by regulation to be made
available.
(ii) An applicant must make the information specified in paragraph
(b)(3) of this section available to the public for inspection:
(A) At its principal place of business or at any other location that
is more accessible to the public, provided that all the information is
available in at least one location;
(B) During regular business hours; and
(C) In a form that is readily accessible, reviewable and
reproducible.
(iii) The applicant must provide a copy of the complete application
(as amended) to a public library or other convenient public office
located in each county in which the proposed project is located.
(iv) An applicant must make requested copies of the information
specified in paragraph (b)(3) of this section available either:
(A) At its principal place of business or at any other location that
is more accessible to the public, after obtaining reimbursement for
reasonable costs of reproduction; or
(B) Through the mail, after obtaining reimbursement for postage fees
and reasonable costs of reproduction.
(5) Anyone may file a petition with the Commission requesting access
to the information specified in paragraph (b)(3) of this section if it
believes that an applicant is not making the information reasonably
available for public inspection or reproduction. The petition must
describe in detail the basis for the petitioner's belief.
(6) An applicant must publish notice twice of the filing of its
application, no later than 14 days after the filing date, in a daily or
weekly newspaper of general circulation in each county in which the
project is located. The notice must disclose the filing date of the
application and briefly summarize it, including the applicant's name and
address, the type of facility applied for, its proposed location, the
places where the information specified in paragraph (b)(3) of this
section is available for inspection and reproduction, and the date by
which any requests for additional scientific studies are due under
paragraph (b)(7) of this section, and must state that the Commission
will publish subsequent notices soliciting public participation if the
application is found acceptable for filing. The applicant must promptly
provide the Commission with proof of the publications of this notice.
(7) If any resource agency, Indian tribe, or person believes that an
additional scientific study should be conducted in order to form an
adequate factual basis for a complete analysis of the application on its
merits, the resource agency, Indian tribe, or person must file a request
for the study with the Commission not later than 60 days after the
application is filed and serve a copy of the request on the applicant.
The Commission will issue public notice of the tendering for filing of
each application for hydropower license or exemption; each such
applicant must submit a draft of this notice to the Commission with its
application. For any such additional study request, the requester must
describe the recommended study and the basis for the request in detail,
including who should conduct and participate in the study, its
methodology and objectives, whether the recommended study methods are
generally accepted in the Scientific community, how the study and
information sought will be useful in furthering the resource goals that
are affected by the proposed facilities, and approximately how long the
study will take to complete, and must explain why the study objectives
cannot be achieved using the data already available. In addition, in
the case of a study request by a resource agency or Indian tribe that
had failed to request the study during the pre-filing consultation
process under 4.38 of this part or 16.8 of this chapter, the agency or
Indian tribe must explain why this request was not made during the
pre-filing consultation process and show good cause why its request for
the study should be considered by the Commission.
(8) An applicant may file a response to any such study request within
30 days of its filing, serving a copy of the response on the requester.
(9) The requirements of paragraphs (b)(3) to (b)(8) of this section
only apply to an application for license or exemption filed on or after
May 20, 1991. Paragraphs (b)(3) and (b)(4) of this section do not apply
to applications subject to the requirements of 16.7 of this chapter.
(c)(1) Every application for a licensee or exemption for a project
with a capacity of 80 megawatts or less must include in its application
copies of the statements made under 4.38(b)(1)(vi).
(2) If an applicant reverses a statement of intent not to seek PURPA
benefits:
(i) Prior to the Commission issuing a license or exemption, the
reversal of intent will be treated as an amendment of the application
under 4.35 and the applicant must:
(A) Repeat the pre-filing consultation process under 4.38; and
(B) Satisfy all the requirements in 292.208 of this chapter; or
(ii) After the Commission issues a license or exemption for the
project, the applicant is prohibited from obtaining PURPA benefits.
(d) When any application is found to conform to the requirements of
paragraphs (a), (b) and (c) of this section, the Commission or its
delegate will:
(1) Notify the applicant that the application has been accepted for
filing, specifying the project number assigned and the date upon which
the application was accepted for filing, and, for a license or exemption
application, direct the filing of the originals (microfilm) of required
maps and drawings;
(2)(i) For an application for a preliminary permit or a license,
issue public notice of the application as required in the Federal Power
Act;
(ii) For an application for exemption from licensing, publish notice
once in a daily or weekly newspaper of general circulation in each
county in which the project is or will be located; and
(3) If the project affects lands of the United States, notify the
appropriate Federal office of the application and the specific lands
affected, pursuant to section 24 of the Federal Power Act.
(4) For an application for a license seeking benefits under section
210 of the Public Utility Regulatory Policies Act of 1978, as amended,
for a project that would be located at a new dam or diversion, serve the
public notice issued for the application under paragraph (d)(2)(i) of
this section to interested agencies at the time the applicant is
notified that the application is accepted for filing.
(e) In order for an application to conform adequately to the
requirements of paragraphs (a), (b) and (c) of this section and of
4.38, an application must be completed fully. No blanks should be left
in the application. No material or information required in the
application should be omitted. If an applicant believes that its
application conforms adequately without containing certain required
material or information, it must explain in detail why the material or
information is not being submitted and what steps were taken by the
applicant to provide the material or information. If the Commission
finds that an application does not adequately conform to the
requirements of paragraphs (a), (b) and (c) of this section and of
4.38, the Commission or its designee will consider the application
either deficient or patently deficient.
(1) Deficient applications. (i) An application that in the judgment
of the Director of the Office of Hydropower Licensing does not conform
to the requirements of paragraphs (a), (b) and (c) of this section and
of 4.38, may be considered deficient. An applicant having a deficient
application will be afforded additional time to correct deficiencies,
not to exceed 45 days from the date of notification in the case of an
application for a preliminary permit or exemption from licensing or 90
days from the date of notification in the case of an application for
license. Notification will be by letter or, in the case of minor
deficiencies, by telephone. Any notification will specify the
deficiencies to be corrected. Deficiencies must be corrected by
submitting an original and the number of copies specified in paragraph
(b) of this section of the specified materials or information to the
Secretary within the time specified in the notification of deficiency.
(ii) Upon submission of a conforming application, action will be
taken in accordance with paragraph (d) of this section.
(iii) If the revised application is found not to conform to the
requirements of paragraphs (a), (b) and (c) of this section and of
4.38, or if the revisions are not timely submitted, the revised
application will be rejected. Procedures for rejected applications are
specified in paragraph (e)(2)(iii).
(2) Patently deficient applications. (i) If, within 90 days of its
filing date, the Director of the Office of Hydropower Licensing
determines that an application patently fails to substantially comply
with the requirements of paragraph (a), (b), and (c) of this section and
of 4.38 of this part or 16.8 of this chapter, or is for a project that
is precluded by law, the application will be rejected as patently
deficient with the specification of the deficiencies that render the
application patently deficient.
(ii) If, after 90 days of its filing date, the Director of the Office
of Hydropower Licensing determines that an application patently fails to
substantially comply with the requirements of paragraphs (a), (b), and
(c) of this section and of 4.38 of this part or 16.8 of this chapter,
or is for a project that is precluded by law:
(A) The application will be rejected by order of the Commission, if
the Commission determines it is patently deficient; or
(B) The application will be considered deficient under paragraph
(e)(1) of this section, if the Commission determines it is not patently
deficient.
(iii) Any application that is rejected may be resubmitted if the
deficiencies are corrected and if, in the case of a competing
application, the resubmittal is timely. The date the rejected
application is resubmitted will be considered the new filing date for
purposes of determining its timeliness under 4.36 and the disposition
of competing applications under 4.37.
(f) Any application will be considered accepted for filing as of the
application filing date if the Secretary receives all of the information
and documents necessary to conform to the requirements of paragraphs
(a), (b) and (c) of this section and of 4.38 within the time prescribed
by the Commission or its delegate under paragraph (e) of this section.
(g) An applicant may be required to submit any additional information
or documents that the Commission or its designee considers relevant for
an informed decision on the application. The information or documents
must take the form, and must be submitted within the time, that the
Commission or its designee prescribes. An applicant may also be
required to provide within a specified time additional copies of the
complete application, or any of the additional information or documents
that are filed, to the Commission or to any person, agency, or other
entity that the Commission or its designee specifies. If an applicant
fails to provide timely additional information, documents, or copies of
submitted materials as required, the Commission or its designee may
dismiss the application, hold it in abeyance, or take other appropriate
action under this chapter or the Federal Power Act.
(h) A prospective applicant, prior to submitting its application for
filing, may seek advice from the Commission staff regarding the
sufficiency of the application. For this purpose, five copies of the
draft application should be submitted to the Director of the Division of
Project Management. An applicant or prospective applicant may confer
with the Commission staff at any time regarding deficiencies or other
matters related to its application. All conferences are subject to the
requirements of 385.2201 of this chapter governing ex parte
communications. The opinions or advice of the staff will not bind the
Commission or any person delegated authority to act on its behalf.
(i) Intervention in any preliminary permit proceeding will not
constitute intervention in any subsequent licensing or exemption
proceeding.
(j) Any application, the effectiveness of which is conditioned upon
the future occurrence of any event or circumstance, will be rejected.
(Order 413, 50 FR 11678, Mar. 25, 1985, as amended by Order 480, 52
FR 37285, Oct. 6, 1987; Order 487, 52 FR 48404, Dec. 22, 1987; Order
499, 53 FR 27001, July 18, 1988; Order 533, 56 FR 23147, May 20, 1991;
56 FR 61155, Dec. 2, 1991)
18 CFR 4.33 Limitations on submitting applications.
(a) Limitations on submission and acceptance of a preliminary permit
application. The Commission will not accept an application for a
preliminary permit for project works that:
(1) Would develop, conserve, and utilize, in whole or in part, the
same water resources that would be developed, conserved, and utilized by
a project for which there is an unexpired preliminary permit.
(2) Would develop, conserve, and utilize, in whole or in part, the
same water resources that would be developed, conserved, and utilized by
a project for which an initial development application has been filed
unless the preliminary permit application is filed not later than the
time allowed under 4.36(a) for the filing of applications in
competition against an initial application for a preliminary permit that
would develop, conserve, and utilize, in whole or in part, the same
resources.
(b) Limitations on submission and acceptance of a license
application. The Commission will not accept an application for a
license for project works that would develop, conserve, and utilize, in
whole or in part, the same water resources that would be developed,
conserved, and utilized by a project for which there is an unexpired
preliminary permit, unless the permittee has submitted an application
for license.
(c) Limitations on submission and acceptance of an application for a
license that would affect an exempted project. (1) Except as permitted
under 4.33(c)(2), 4.94(d), or 4.106 (c), (e) or (f), the Commission
will not accept an application for a license for project works that are
already exempted from licensing under this part.
(2) If a project is exempted from licensing pursuant to 4.103 or
4.109 and real property interests in any non-Federal lands would be
necessary to develop or operate the project, any person who is both a
qualified license applicant and has any of those real property interests
in non-Federal lands may submit a license application for that project.
If a license application is submitted under this clause, any other
qualified license applicant may submit a competing license application
in accordance with 4.36.
(d) Limitations on submission and acceptance of exemption
applications -- (1) Unexpired permit or license. (i) If there is an
unexpired permit in effect for a project, the Commission will accept an
application for exemption of that project from licensing only if the
exemption applicant is the permittee. Upon acceptance for filing of the
permittee's application, the permit will be considered to have expired.
(ii) If there is an unexpired license in effect for a project, the
Commission will accept an application for exemption of that project from
licensing only if the exemption applicant is the licensee.
(2) Pending license applications. If an accepted license application
for a project was submitted by a permittee before the preliminary permit
expired, the Commission will not accept an application for exemption of
that project from licensing submitted by a person other than the former
permittee.
(3) Submitted by qualified exemption applicant. If the first
accepted license application for a project was filed by a qualified
exemption applicant, the applicant may request that its license
application be treated initially as an application for exemption from
licensing by so notifying the Commission in writing and, unless only
rights to use or occupy Federal lands would be necessary to develop and
operate the project, by submitting documentary evidence showing that the
applicant holds the real property interests required under 4.31. Such
notice and documentation must be submitted not later than the last date
for filing protests or motions to intervene prescribed in the public
notice issued for its license application under 4.32(d)(2).
(e) Priority of exemption applicant's earlier permit or license
application. Any accepted preliminary permit or license application
submitted by a person who later applies for exemption of the project
from licensing will retain its validity and priority under this subpart
until the preliminary permit or license application is withdrawn or the
project is exempted from licensing.
(Order 413, 50 FR 11680, Mar. 25, 1985, as amended by Order 499, 53
FR 27002, July 18, 1988)
18 CFR 4.34 Hearings on applications; consultation on terms and
conditions; motions to intervene.
(a) Trial-type hearing. The Commission may order a trial-type
hearing on an application for a preliminary permit, a license, or an
exemption from licensing upon either its own motion or the motion of any
interested party of record. Any trial-type hearing will be limited to
the issues prescribed by order of the Commission. In all other cases
the hearings will be conducted by notice and comment procedures.
(b) Notice and comment hearings. All comments (including mandatory
and recommended terms and conditions or prescriptions) on an application
for exemption or license must be filed with the Commission no later than
60 days after issuance by the Commission of public notice declaring that
the application is ready for environmental analysis. All reply comments
must be filed within 105 days of that notice. All comments and reply
comments and all other filings described in this section must be served
on all persons listed in the service list prepared by the Commission, in
accordance with the requirements of 385.2010 of this chapter. If a
party or interceder (as defined in 385.2201 of this Chapter) submits
any written material to the Commission relating to the merits of an
issue that may affect the responsibilities of a particular resource
agency, the party or interceder must also serve a copy of the submission
on this resource agency. The Commission may allow for longer comment or
reply comment periods if appropriate. A commenter or reply commenter
may obtain an extension of time from the Commission only upon a showing
of good cause or extraordinary circumstances in accordance with
385.2008 of this chapter. Late-filed fish and wildlife recommendations
will not be subject to the requirements of paragraphs (e), (f)(1)(ii),
and (f)(3) of this section, and late-filed terms and conditions or
prescriptions will not be subject to the requirements of paragraphs
(f)(1)(iv), (f)(1)(v), and (f)(2) of this section. Late-filed fish and
wildlife recommendations, terms and conditions, or prescriptions will be
considered by the Commission under section 10(a) of the Federal Power
Act if such consideration would not delay or disrupt the proceeding.
(1) Agencies responsible for mandatory terms and conditions and
presentations. Any agency responsible for mandatory terms and
conditions or prescriptions for licenses or exemptions, pursuant to
sections 4(e), 18, and 30(c) of the Federal Power Act and section 405(d)
of the Public Utility Regulatory Policies Act of l978, as amended, must
provide these terms and conditions or prescriptions in its initial
comments filed with the Commission pursuant to paragraph (b) of this
section. In those comments, the agency must specifically identify and
explain the mandatory terms and conditions or prescriptions and their
evidentiary and legal basis. If ongoing agency proceedings to determine
the terms and conditions or prescriptions are not completed by the date
specified, the agency must submit to the Commission by the due date:
(i) Preliminary terms and conditions or prescriptions and a schedule
showing the status of the agency proceedings and when the terms and
conditions or prescriptions are expected to become final; or
(ii) A statement waiving the agency's right to file the terms and
conditions or prescriptions or indicating the agency does not intend to
file terms and conditions or prescriptions.
(2) Fish and Wildlife agencies and Indian tribes. All fish and
wildlife agencies must set forth any recommended terms and conditions
for the protection, mitigation of damages to, or enhancement of fish and
wildlife, pursuant to the Fish and Wildlife Coordination Act and section
10(j) of the Federal Power Act, in their initial comments filed with the
Commission by the date specified in paragraph (b) of this section. All
Indian tribes must submit recommendations (including fish and wildlife
recommendations) by the same date. In those comments, a fish and
wildlife agency or Indian tribe must discuss its understanding of the
resource issues presented by the proposed facilities and the evidentiary
basis for the recommended terms and conditions.
(3) Other Government agencies and members of the public. Resource
agencies, other governmental units, and members of the public must file
their recommendations in their initial comments by the date specified in
paragraph (b) of this section. The comments must clearly identify all
recommendations and present their evidentiary basis.
(4) Submittal of modified recommendations, terms and conditions or
prescriptions. (i) If the information and analysis (including
reasonable alternatives) presented in a draft environmental impact
statement, issued for comment by the Commission, indicate a need to
modify the recommendations or terms and conditions or prescriptions
previously submitted to the Commission pursuant to paragraphs (b)(1),
(b)(2), or (b)(3) of this section, the agency, Indian tribe, or member
of the public must file with the Commission any modified recommendations
or terms and conditions or prescriptions on the proposed project (and
reasonable alternatives) no later than the due date for comments on the
draft environmental impact statement. Modified recommendations or terms
and conditions or prescriptions must be clearly distinguished from
comments on the draft statement.
(ii) If an applicant files an amendment to its application that would
materially change the project's proposed plans of development, as
provided in 4.35, an agency, Indian tribe or member of the public may
modify the recommendations or terms and conditions or prescriptions it
previously submitted to the Commission pursuant to paragraphs (b)(1),
(b)(2), or (b)(3) of this section no later than the due date specified
by the Commission for comments on the amendment.
(c) Additional procedures. If necessary or appropriate the
Commission may require additional procedures (e.g., a pre-hearing
conference, further notice and comment on specific issues or oral
argument). A party may request additional procedures in a motion that
clearly and specifically sets forth the procedures requested and the
basis for the request. Replies to such requests may be filed within 15
days of the request.
(d) Consultation procedures. Pursuant to the Federal Power Act and
the Public Utility Regulatory Policies Act of 1978, as amended, the
Commission will coordinate as appropriate with other government agencies
responsible for mandatory terms and conditions for exemptions and
licenses for hydropower projects. Pursuant to the Federal Power Act and
the Fish and Wildlife Coordination Act, the Commission will consult with
fish and wildlife agencies concerning the impact of a hydropower
proposal on fish and wildlife and appropriate terms and conditions for
license to adequately and equitably protect, mitigate damages to, and
enhance fish and wildlife (including related spawning grounds and
habitat). Pursuant to the Federal Power Act and the Endangered Species
Act, the Commission will consult with the U.S. Fish and Wildlife Service
or the National Marine Fisheries Service, as appropriate, concerning the
impact of a hydropower proposal on endangered or threatened species and
their critical habitat.
(e) Consultation on recommended fish and wildlife conditions;
section 10(j) process. (1) In connection with its environmental review
of an application for license, the Commission will analyze all terms and
conditions timely recommended by fish and wildlife agencies pursuant to
the Fish and Wildlife Coordination Act for the protection, mitigation of
damages to, and enhancement of fish and wildlife affected by the
development, operation, and management of the proposed project.
Submission of such recommendations marks the beginning of the process
under section 10(j) of the Federal Power Act.
(2) Within 45 days of the filing of any fish and wildlife
recommendation, the Commission may seek clarification of it, unless this
deadline is extended by the Commission upon notice to the fish and
wildlife agency concerned. If the Commission's request for
clarification is communicated in writing, copies of the request will be
sent by the Commission to all parties, affected resource agencies, and
Indian tribes, which may file a response to the request for
clarification within the time period specified by the Commission.
(3) The Commission will make a preliminary determination of
inconsistency of the fish and wildlife recommendation with the purposes
and requirements of the Federal Power Act or other applicable law. This
preliminary determination will be done in writing and shall include an
explanation of its basis, including appropriate references to the
environmental analysis conducted on the license application. A copy of
the environmental analysis will be provided with the determination, and
will be sent to all parties, affected resource agencies, and Indian
tribes.
(4) Any party, affected resource agency, or Indian tribe may file
comments in response to the preliminary determination of inconsistency
within 45 days of its issuance. In this filing, the fish and wildlife
agency concerned may also request a meeting, telephone or video
conference or other additional procedure to attempt to resolve any
preliminary determination of inconsistency.
(5) If the Commission decides to conduct any meeting, telephone or
video conference, or other procedure to address issues raised by its
preliminary determination of inconsistency and comments thereon, the
Commission will give at least 15 days' advance notice to each party,
affected resource agency, or Indian tribe, which may participate in the
meeting or conference. Any meeting, conference, or additional procedure
to address these issues will be scheduled to take place within 75 days
of the date the Commission issues a preliminary determination of
inconsistency. The Commission will prepare a written summary of any
meeting held under this subsection to discuss 10(j) issues, and a copy
of the summary will be sent to all parties, affected resource agencies,
and Indian tribes. If the Commission believes that any fish and
wildlife recommendation submitted by a fish and wildlife agency may be
inconsistent with the purposes and requirements of the Federal Power Act
or other applicable law, the Commission will attempt to resolve any such
inconsistency by appropriate means, giving due weight to the
recommendations, expertise, and statutory responsibilities of the fish
and wildlife agency.
(6) The section 10(j) process ends when the Commission issues an
order granting or denying the license application in question.
(f) Licenses and exemption conditions and required findings -- (1)
License conditions. (i) All licenses shall be issued on the conditions
specified in section 10 of the Federal Power Act and such other
conditions as the Commission determines are lawful and in the public
interest.
(ii) Subject to paragraph (f)(3) of this section, fish and wildlife
conditions shall be based on recommendations timely received from the
fish and wildlife agencies pursuant to the Fish and Wildlife
Coordination Act.
(iii) The Commission will consider the timely recommendations of
resource agencies, other governmental units, and members of the public,
and the timely recommendations (including fish and wildlife
recommendations) of Indian tribes affected by the project.
(iv) Licenses for a project located within any Federal reservation
shall be issued only after the findings required by, and subject to any
conditions that may be timely received pursuant to, section 4(e) of the
Federal Power Act.
(v) The Commission will require the construction, maintenance, and
operation by a licensee at its own expense of such fishways as may be
timely prescribed by the Secretary of Commerce or the Secretary of the
Interior, as appropriate, pursuant to section 18 of the Federal Power
Act.
(2) Exemption conditions. Any exemption from licensing issued for
conduit facilities, as provided in section 30 of the Federal Power Act,
or for small hydroelectric power projects having a proposed installed
capacity of 5,000 kilowatts or less, as provided in section 405(d) of
the Public Utility Regulatory Policies Act of 1978, as amended, shall
include such terms and conditions as the fish and wildlife agencies may
timely determine are appropriate to carry out the responsibilities
specified in section 30(c) of the Federal Power Act.
(3) Required findings. If, after attempting to resolve
inconsistencies between the fish and wildlife recommendations of a fish
and wildlife agency and the purposes and requirements of the Federal
Power Act or other applicable law, the Commission does not adopt in
whole or in part a fish and wildlife recommendation of a fish and
wildlife agency, the Commission will publish the findings and statements
required by section 10(j)(2) of the Federal Power Act.
(g) Application. The provisions of paragraphs (b) through (d) and
(f) of this section apply only to applications for license or exemption;
paragraph (e) applies only to applications for license.
(Order 533, 56 FR 23148, May 20, 1991, as amended at 56 FR 61155,
Dec. 2, 1991)
18 CFR 4.35 Amendment of application; date of acceptance.
(a) General rule. Except as provided in paragraph (d) of this
section, if an applicant amends its filed application as described in
paragraph (b) of this section, the date of acceptance of the application
under 4.32(f) is the date on which the amendment to the applicant was
filed.
(b) Paragraph (a) of this section applies if an applicant:
(1) Amends its filed license or preliminary permit application in
order to change the status or identity of the applicant or to materially
amend the proposed plans of development; or
(2) Amends its filed application for exemption from licensing in
order to materially amend the proposed plans of development, or
(3) Amends its filed application in order to change its statement of
intent of whether or not it will seek benefits under section 210 of
PURPA, as originally filed under 4.32(c)(1).
(c) An application amended under paragraph (a) is a new filing for:
(1) The purpose of determining its timeliness under 4.36 of this
part;
(2) Disposing of competing applications under 4.37; and
(3) Reissuing public notice of the application under 4.32(d)(2).
(d) If an application is amended under paragraph (a) of this section,
the Commission will rescind any acceptance letter already issued for the
application.
(e) Exceptions. This section does not apply to:
(1) Any corrections of deficiencies made pursuant to 4.32(e)(1);
(2) Any amendments made pursuant to 4.37(b)(4) by a State or a
municipality to its proposed plans of development to make them as well
adapted as the proposed plans of an applicant that is not a state or a
municipality;
(3) Any amendments made pursuant to 4.37(c)(2) by a priority
applicant to its proposed plans of development to make them as well
adapted as the proposed plans of an applicant that is not a priority
applicant;
(4) Any amendments made by a license or an exemption applicant to its
proposed plans of development to satisfy requests of resource agencies
or Indian tribes submitted after an applicant has consulted under 4.38
or concerns of the Commission; and
(5)(i) Any license or exemption applicant with a project located at a
new dam or diversion who is seeking PURPA benefits and who:
(A) Has filed an adverse environmental effects (AEE) petition
pursuant to 292.211 of this chapter; and
(B) Has proposed measures to mitigate the adverse environmental
effects which the Commission, in its initial determination on the AEE
petition, stated the project will have.
(ii) This exception does not protect any proposed mitigative measures
that the Commission finds are a pretext to avoid the consequences of
materially amending the application or are outside the scope of
mitigating the adverse environmental effects.
(f) Definitions. (1) For the purposes of this section, a material
amendment to plans of development proposed in an application for a
license or exemption from licensing means any fundamental and
significant change, including but not limited to:
(i) A change in the installed capacity, or the number or location of
any generating units of the proposed project if the change would
significantly modify the flow regime associated with the project;
(ii) A material change in the location, size, or composition of the
dam, the location of the powerhouse, or the size and elevation of the
reservoir if the change would:
(A) Enlarge, reduce, or relocate the area of the body of water that
would lie between the farthest reach of the proposed impoundment and the
point of discharge from the powerhouse; or
(B) Cause adverse environmental impacts not previously discussed in
the original application; or
(iii) A change in the number of discrete units or development to be
included within the project boundary.
(2) For purposes of this section, a material amendment to plans of
development proposed in an application for a preliminary permit means a
material change in the location of the powerhouse or the size and
elevation of the reservoir if the change would enlarge, reduce, or
relocate the area of the body of water that would lie between the
farthest reach of the proposed impoundment and the point of discharge
from the powerhouse.
(3) For purposes of this section, a change in the status of an
applicant means:
(i) The acquisition or loss of preference as a state or a
municipality under section 7(a) of the Federal Power Act; or
(ii) The loss of priority as a permittee under section 5 of the
Federal Power Act.
(4) For purposes of this section, a change in the identity of an
applicant means a change that either singly, or together with previous
amendments, causes a total substitution of all the original applicants
in a permit or a license application.
(Order 413, 50 FR 11680, Mar. 25, 1985, as amended by Order 499, 53
FR 27002, July 18, 1988; Order 533, 56 FR 23149, May 20, 1991)
18 CFR 4.36 Competing applications: deadlines for filing; notices of
intent; comparisons of plans of development.
The public notice of an initial preliminary permit application or an
initial development application shall prescribe the deadline for filing
protests and motions to intervene in that proceeding (the prescribed
intervention deadline).
(a) Deadlines for filing applications in competition with an initial
preliminary permit application. (1) Any preliminary permit application
or any development application not filed pursuant to a notice of intent
must be submitted for filing in competition with an initial preliminary
permit application not later than the prescribed intervention deadline.
(2) Any preliminary permit application filed pursuant to a notice of
intent must be submitted for filing in competition with an initial
preliminary permit application not later than 30 days after the
prescribed intervention deadline.
(3) Any development application filed pursuant to a notice of intent
must be submitted for filing in competition with an initial preliminary
permit application not later than 120 days after the prescribed
intervention deadline.
(b) Deadlines for filing applications in competition with an initial
development application. (1) Any development application not filed
pursuant to a notice of intent must be submitted for filing in
competition with an initial development application not later than the
prescribed intervention deadline.
(2) Any development application filed pursuant to a notice of intent
must be submitted for filing in competition with an initial development
application not later than 120 days after the prescribed intervention
deadline.
(3) If the Commission has accepted an application for exemption of a
project from licensing and the application has not yet been granted or
denied, the applicant for exemption may submit a license application for
the project if it is a qualified license applicant. The pending
application for exemption from licensing will be considered withdrawn as
of the date the Commission accepts the license application for filing.
If a license application is accepted for filing under this provision,
any qualified license applicant may submit a competing license
application not later than the prescribed intervention deadline set for
the license application.
(4) Any preliminary permit application must be submitted for filing
in competition with an initial development application not later than
the deadlines prescribed in paragraphs (a)(1) and (a)(2) for the
submission of preliminary permit applications filed in competition with
an initial preliminary permit application.
(c) Notices of intent. (1) Any notice of intent to file an
application in competition with an initial preliminary permit or an
initial development application must be submitted for filing not later
than the prescribed intervention deadline for the initial application.
(2) A notice of intent must include:
(i) The exact name, business address, and telephone number of the
prospective applicant; and
(ii) An unequivocal statement of intent to submit a preliminary
permit application or a development application (specify which type of
application).
(d) Requirements for competing applications. (1) Any competing
application must:
(i) Conform to all requirements for filing an initial application;
and
(ii) Include proof of service of a copy of the competing application
on the person(s) designated in the public notice of the initial
application for service of pleadings, documents, or communications
concerning the initial application.
(2) Comparisons of plans of development. (i) After the deadline for
filing applications in competition against an initial development
application has expired, the Commission will notify each license and
exemption applicant of the identity of the other applicants.
(ii) Not later than 14 days after the Commission serves the
notification described in paragraph (d)(2)(i) of this section, if a
license or exemption applicant has not already done so, it must serve a
copy of its application on each of the other license and exemption
applicants.
(iii) Not later than 60 days after the Commission serves the
notification described in paragraph (d)(2)(i) of this section, each
license and exemption applicant must file with the Commission a detailed
and complete statement of how its plans are as well or better adapted
than are the plans of each of the other license and exemption applicants
to develop, conserve, and utilize in the public interest the water
resources of the region. These statements should be supported by any
technical analyses that the applicant deems appropriate to support its
proposed plans of development.
(Order 413, 50 FR 11680, Mar. 25, 1985; 50 FR 23947, June 7, 1985)
18 CFR 4.37 Rules of preference among competing applications.
Except as provided in 4.33(f), the Commission will select among
competing applications on the following bases:
(a) If an accepted application for a preliminary permit and an
accepted application for a license propose project works that would
develop, conserve, and utilize, in whole or in part, the same water
resources, and the applicant for a license has demonstrated its ability
to carry out its plans, the Commission will favor the license applicant
unless the permit applicant substantiates in its filed application that
its plans are better adapted to develop, conserve, and utilize in the
public interest the water resources of the region.
(b) If two or more applications for preliminary permits or two or
more applications for licenses (not including applications for a new
license under section 15 of the Federal Power Act) are filed by
applicants for project works that would develop, conserve, and utilize,
in whole or in part, the same water resources, and if none of the
applicants is a preliminary permittee whose application for license was
accepted for filing within the permit period, the Commission will select
between or among the applicants on the following bases:
(1) If both of two applicants are either a municipality or a state,
the Commission will favor the applicant whose plans are better adapted
to develop, conserve, and utilize in the public interest the water
resources of the region, taking into consideration the ability of each
applicant to carry out its plans.
(2) If both of two applicants are either a municipality or a state,
or neither of them is a municipality or a state, and the plans of the
applicants are equally well adapted to develop, conserve, and utilize in
the public interest the water resources of the region, taking into
consideration the ability of each applicant to carry out its plans, the
Commission will favor the applicant with the earliest application
acceptance date.
(3) If one of two applicants is a municipality or a state, and the
other is not, and the plans of the municipality or a state are at least
as well adapted to develop, conserve, and utilize in the public interest
the water resources of the region, the Commission will favor the
municipality or state.
(4) If one of two applicant is a municipality or a state, and the
other is not, and the plans of the applicant who is not a municipality
or a state are better adapted to develop, conserve, and utilize in the
public interest the water resources of the region, the Commission will
inform the municipality or state of the specific reasons why its plans
are not as well adapted and afford a reasonable period of time for the
municipality or state to render its plans at least as well adapted as
the other plans. If the plans of the municipality or state are rendered
at least as well adapted within the time allowed, the Commission will
favor the municipality or state. If the plans are not rendered at least
as well adapted within the time allowed, the Commission will favor the
other applicant.
(c) If two or more applications for licenses are filed for project
works which would develop, conserve, and utilize, in whole or in part,
the same water resources, and one of the applicants was a preliminary
permittee whose application was accepted for filing within the permit
period (priority applicant), the Commission will select between or among
the applicants on the following bases:
(1) If the plans of the priority applicant are at least as well
adapted as the plans of each other applicant to develop, conserve, and
utilize in the public interest the water resources of the region, taking
into consideration the ability of each applicant to carry out its plans,
the Commission will favor the priority applicant.
(2) If the plans of an applicant who is not a priority applicant are
better adapted than the plans of the priority applicant to develop,
conserve, and utilize in the public interest the water resources of the
region, taking into consideration the ability of each applicant to carry
out its plans, the Commission will inform the priority applicant of the
specific reasons why its plans are not as well adapted and afford a
reasonable period of time for the priority applicant to render its plans
at least as well adapted as the other plans. If the plans of the
priority applicant are rendered at least as well adapted within the time
allowed, then the Commission will favor the priority applicant. If the
plans of the priority applicant are not rendered as well adapted within
the time allowed, the criteria specified in paragraph (b) will govern.
(3) The criteria specified in paragraph (b) will govern selection
among applicants other than the priority applicant.
(d) With respect to a project for which an application for an
exemption from licensing has been accepted for filing, the Commission
will select among competing applications on the following bases:
(1) If an accepted application for a preliminary permit and an
accepted application for exemption from licensing propose to develop
mutually exclusive small hydroelectric power projects, the Commission
will favor the applicant whose substantiated plans in the application
received by the Commission are better adapted to develop, conserve, and
utilize in the public interest the water resources of the region. If
the substantiated plans are equally well adapted, the Commission will
favor the application for exemption from licensing.
(2) If an application for a license and an application for exemption
from licensing, or two or more applications for exemption from licensing
are each accepted for filing and each proposes to develop a mutually
exclusive project, the Commission will favor the applicant whose plans
are better adapted to develop, conserve, and utilize in the public
interest the water resources of the region. If the plans are equally
well adapted, the Commission will favor the applicant with the earliest
application acceptance date.
(e) A municipal applicant must provide evidence that the municipality
is competent under applicable state and local laws to engage in the
business of developing, transmitting, utilizing, or distributing power,
or such applicant will be considered a non-municipal applicant for the
purpose of determining the disposition of competing applications.
(Order 413, 50 FR 11682, Mar. 25, 1985)
18 CFR 4.38 Consultation requirements.
(a) Requirement to consult. (1) Before it files any application for
an original license or an exemption from licensing that is described in
paragraph (a)(4) of this section, a potential applicant must consult
with the relevant Federal, State, and interstate resource agencies,
including the National Marine Fisheries Service, the United States Fish
and Wildlife Service, the National Park Service, the United States
Environmental Protection Agency, the Federal agency administering any
United States lands or facilities utilized or occupied by the project,
the appropriate State fish and wildlife agencies, the appropriate State
water resource management agencies, the certifying agency under section
401(a)(1) of the Federal Water Pollution Control Act (Clean Water Act),
33 U.S.C. 1341(c)(1), and any Indian tribe that may be affected by the
proposed project.
(2) The Director of the Office of Hydropower Licensing or the
Regional Director responsible for the area in which the project is
located will, upon request, provide a list of known appropriate Federal,
state, and interstate resource agencies and Indian tribes.
(3) An applicant for an exemption from licensing or an applicant for
a license seeking benefits under section 210 of the Public Utility
Regulatory Policies Act, as amended, for a project that would be located
at a new dam or diversion must, in addition to meeting the requirements
of this section, comply with the consultation requirements in 4.301.
(4) The pre-filing consultation requirements of this section apply
only to an application for:
(i) Original license;
(ii) Exemption;
(iii) Amendment to an application for original license or exemption
that materially amends the proposed plans of development as defined in
4.35(f)(1);
(iv) Amendment to an existing license that would increase the
capacity of the project as defined in 4.201(b); or
(v) Amendment to an existing license that would not increase the
capacity of the project as defined in 4.201(b), but that would involve:
(A) The construction of a new dam or diversion in a location where
there is no existing dam or diversion;
(B) Any repair, modification, or reconstruction of an existing dam
that would result in a significant change in the normal maximum surface
area or elevation of an existing impoundment; or
(C) The addition of new water power turbines other than to replace
existing turbines.
(5) Before it files a non-capacity related amendment as defined in
4.201(c), an applicant must consult with the resource agencies and
Indian tribes listed in paragraph (a)(1) of this section to the extent
that the proposed amendment would affect the interests of the agencies
or tribes. When consultation is necessary, the applicant must, at a
minimum, provide the resource agencies and Indian tribes with copies of
the draft application and allow them at least 60 days to comment on the
proposed amendment. The amendment as filed with the Commission must
summarize the consultation with the resource agencies and Indian tribes
on the proposed amendment, propose reasonable protection, mitigation, or
enhancement measures to respond to impacts identified as being caused by
the proposed amendment, and respond to any objections, recommendations,
or conditions submitted by the agencies or Indian tribes. Copies of all
written correspondence between the applicant, the agencies, and the
tribes must be attached to the application.
(6) This section does not apply to any application for a new license,
a nonpower license, a subsequent license, or surrender of a license
subject to sections 14 and 15 of the Federal Power Act.
(7) If a potential applicant has any doubt as to whether a particular
application or amendment would be subject to the pre-filing consultation
requirements of this section or if a waiver of the pre-filing
requirements would be appropriate, the applicant may file a written
request for clarification or waiver with the Director, Office of
Hydropower Licensing.
(b) First stage of consultation. (1) A potential applicant must
promptly contact each of the appropriate resource agencies and affected
Indian tribes; provide them with a description of the proposed project
and supporting information; and confer with them on project design, the
impact of the proposed project (including a description of any existing
facilities, their operation, and any proposed changes), reasonable
hydropower alternatives, and what studies the applicant should conduct.
The potential applicant must provide to the resource agencies, Indian
tribes, and the Commission the following information:
(i) Detailed maps showing project boundaries, if any, proper land
descriptions of the entire project area by township, range, and section,
as well as by state, county, river, river mile, and closest town, and
also showing the specific location of all proposed project facilities,
including roads, transmission lines, and any other appurtenant
facilities;
(ii) A general engineering design of the proposed project, with a
description of any proposed diversion of a stream through a canal or a
penstock;
(iii) A summary of the proposed operational mode of the project;
(iv) Identification of the environment to be affected, the
significant resources present, and the applicant's proposed
environmental protection, mitigation, and enhancement plans, to the
extent known at that time;
(v) Streamflow and water regime information, including drainage area,
natural flow periodicity, monthly flow rates and durations, mean flow
figures illustrating the mean daily streamflow curve for each month of
the year at the point of diversion or impoundment, with location of the
stream gauging station, the method used to generate the streamflow data
provided, and copies of all records used to derive the flow data used in
the applicant's engineering calculations;
(vi)(A) A statement (with a copy to the Commission) of whether or not
the applicant will seek benefits under section 210 of PURPA by
satisfying the requirements for qualifying hydroelectric small power
production facilities in 292.203 of this chapter;
(B) If benefits under section 210 of PURPA are sought, a statement on
whether or not the applicant believes the project is located at a new
dam or diversion (as that term is defined in 292.202(p) of this
chapter) and a request for the agencies' view on that belief, if any;
(vii) Detailed descriptions of any proposed studies and the proposed
methodologies to be employed; and
(viii) Any statement required by 4.301(a).
(2) No earlier than 30 days, but no later than 60 days, from the date
of the potential applicant's letter transmitting the information to the
agencies and Indian tribes under paragraph (b)(1) of this section, the
potential applicant must:
(i) Hold a joint meeting at a convenient place and time, including an
opportunity for a site visit, with all pertinent agencies and Indian
tribes to explain the applicant's proposal and its potential
environmental impact, to review the information provided, and to discuss
the data to be obtained and studies to be conducted by the potential
applicant as part of the consultation process;
(ii) Consult with the resource agencies and Indian tribes on the
scheduling and agenda of the joint meeting; and
(iii) No later than 15 days in advance of the joint meeting, provide
the Commission with written notice of the time and place of the meeting
and a written agenda of the issues to be discussed at the meeting.
(3) Members of the public must be informed of and invited to attend
the joint meeting held pursuant to paragraph (b)(2)(i) of this section
by means of the public notice published in accordance with paragraph (g)
of this section. Members of the public attending the meeting are
entitled to participate in the meeting and to express their views
regarding resource issues that should be addressed in any application
for license or exemption that may be filed by the potential applicant.
Attendance of the public at any site visit held pursuant to paragraph
(b)(2)(i) of this section will be at the discretion of the potential
applicant. The potential applicant must make either audio recordings or
written transcripts of the joint meeting, and must promptly provide
copies of these recordings or transcripts to the Commission and, upon
request, to any resource agency and Indian tribe.
(4) Not later than 60 days after the joint meeting held under
paragraph (b)(2) of this section (unless extended within this time
period by a resource agency or Indian tribe for an additional 60 days by
sending written notice to the applicant and the Director of OHL within
the first 60 day period, with an explanation of the basis for the
extension), each interested resource agency and Indian tribe must
provide a potential applicant with written comments:
(i) Identifying its determination of necessary studies to be
performed or information to be provided by the potential applicant;
(ii) Identifying the basis for its determination;
(iii) Discussing its understanding of the resource issues and its
goals and objectives for these resources;
(iv) Explaining why each study methodology recommended by it is more
appropriate than other available methodology alternatives, including
those identified by the potential applicant pursuant to paragraph
(b)(1)(vii) of this section;
(v) Documenting that the use of each study methodology recommended by
it is a generally accepted practice; and
(vi) Explaining how the studies and information requested will be
useful to the agency or Indian tribe in furthering its resource goals
and objectives that are affected by the proposed project.
(5)(i) If a potential applicant and a resource agency or Indian tribe
disagree as to any matter arising during the first stage of consultation
or as to the need to conduct a study or gather information referenced in
paragraph (c)(2) of this section, the potential applicant or resource
agency or Indian tribe may refer the dispute in writing to the Director
of the Office of Hydropower Licensing (Director) for resolution.
(ii) At the same time as the request for dispute resolution is
submitted to the Director, the entity referring the dispute must serve a
copy of its written request for resolution on the disagreeing party and
any affected resource agency or Indian tribe, which may submit to the
Director a written response to the referral within 15 days of the
referral's submittal to the Director.
(iii) Written referrals to the Director and written responses thereto
pursuant to paragraphs (b)(5)(i) or (b)(5)(ii) of this section must be
filed with the Secretary of the Commission in accordance with the
Commission's Rules of Practice and Procedure, and must indicate that
they are for the attention of the Director pursuant to 4.38(b)(5).
(iv) The Director will resolve disputes by letter provided to the
potential applicant and all affected resource agencies and Indian
tribes.
(v) If a potential applicant does not refer a dispute regarding a
request for information (other than a dispute regarding the information
specified in paragraph (b)(1) of this section) or a study to the
Director under paragraph (b)(5)(i) of this section, or if a potential
applicant disagrees with the Director's resolution of a dispute
regarding a request for information (other than a dispute regarding the
information specified in paragraph (b)(1) of this section) or a study,
and if the potential applicant does not provide the requested
information or conduct the requested study, the potential applicant must
fully explain the basis for its disagreement in its application.
(vi) Filing and acceptance of an application will not be delayed, and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2), merely because the application does
not include a particular study or particular information if the Director
had previously found, under paragraph (b)(5)(iv) of this section, that
such study or information is unreasonable or unnecessary for an informed
decision by the Commission on the merits of the application or use of
the study methodology requested is not a generally accepted practice.
(6) The first stage of consultation ends when all participating
agencies and Indian tribes provide the written comments required under
paragraph (b)(4) of this section or 60 days after the joint meeting held
under paragraph (b)(2) of this section, whichever occurs first, unless a
resource agency or Indian tribe timely notifies the applicant and the
Director of OHL of its need for more time to provide written comments
under paragraph (b)(4) of this section, in which case the first stage of
consultation ends when all the participating agencies and Indian tribes
provide the written comments required under paragraph (b)(4) of this
section or 120 days after the joint meeting held under paragraph (b)(2)
of this section, whichever occurs first.
(c) Second stage of consultation. (1) Unless determined to be
unnecessary by the Director pursuant to paragraph (b)(5) of this
section, a potential applicant must diligently conduct all reasonable
studies and obtain all reasonable information requested by resource
agencies and Indian tribes under paragraph (b) of this section that are
necessary for the Commission to make an informed decision regarding the
merits of the application. These studies must be completed and the
information obtained:
(i) Prior to filing the application, if the results:
(A) Would influence the financial (e.g., instream flow study) or
technical feasibility of the project (e.g., study of potential mass soil
movement); or
(B) Are needed to determine the design or location of project
features, reasonable alternatives to the project, the impact of the
project on important natural or cultural resources (e.g., resource
surveys), or suitable mitigation or enhancement measures, or to minimize
impact on significant resources (e.g., wild and scenic river, anadromous
fish, endangered species, caribou migration routes);
(ii) After filing the application but before issuance of a license or
exemption, if the applicant otherwise complied with the provisions of
paragraph (b)(1) of this section and the study or information gathering
would take longer to conduct and evaluate than the time between the
conclusion of the first stage of consultation and the expiration of the
applicant's preliminary permit or the application filing deadline set by
the Commission;
(iii) After a new license or exemption is issued, if the studies can
be conducted or the information obtained only after construction or
operation of proposed facilities, would determine the success of
protection, mitigation, or enhancement measures (e.g., post-construction
monitoring studies), or would be used to refine project operation or
modify project facilities.
(2) If, after the end of the first stage of consultation as defined
in paragraph (b)(6) of this section, a resource agency or Indian tribe
requests that the potential applicant conduct a study or gather
information not previously identified and specifies the basis and
reasoning for its request, under paragraphs (b)(4) (i)-(vi) of this
section, the potential applicant must promptly initiate the study or
gather the information, unless the study or information is unreasonable
or unnecessary for an informed decision by the Commission on the merits
of the application or use of the methodology requested by a resource
agency or Indian tribe for conducting the study is not a generally
accepted practice. The applicant may refer any such request to the
Director of the Office of Hydropower Licensing for dispute resolution
under the procedures set forth in paragraph (b)(5) of this section and
need not conduct prior to filing any study determined by the Director to
be unreasonable or unnecessary or to employ a methodology that is not
generally accepted.
(3)(i) The results of studies and information-gathering referenced in
paragraphs (c)(1)(ii) and (c)(2) of this section will be treated as
additional information; and
(ii) Filing and acceptance of an application will not be delayed and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2) merely because the study or
information gathering is not complete before the application is filed.
(4) A potential applicant must provide each resource agency and
Indian tribe with:
(i) A copy of its draft application that:
(A) Indicates the type of application the potential applicant expects
to file with the Commission; and
(B) Responds to any comments and recommendations made by any resource
agency and Indian tribe either during the first stage of consultation or
under paragraph (c)(2) of this section;
(ii) The results of all studies and information-gathering either
requested by that resource agency or Indian tribe in the first stage of
consultation (or under paragraph (c)(2) of this section if available) or
which pertain to resources of interest to that resource agency or Indian
tribe and which were identified by the potential applicant pursuant to
paragraph (b)(1)(vii) of this section, including a discussion of the
results and any proposed protection, mitigation, or enhancement
measures; and
(iii) A written request for review and comment.
(5) A resource agency or Indian tribe will have 90 days from the date
of the potential applicant's letter transmitting the paragraph (c)(4)
information to it to provide written comments on the information
submitted by a potential applicant under paragraph (c)(4) of this
section.
(6) If the written comments provided under paragraph (c)(5) of this
section indicate that a resource agency or Indian tribe has a
substantive disagreement with a potential applicant's conclusions
regarding resource impacts or its proposed protection, mitigation, or
enhancement measures, the potential applicant will:
(i) Hold a joint meeting with the disagreeing resource agency or
Indian tribe and other agencies with similar or related areas of
interest, expertise, or responsibility not later than 60 days from the
date of the written comments of the disagreeing agency or Indian tribe
to discuss and to attempt to reach agreement on its plan for
environmental protection, mitigation, or enhancement measures;
(ii) Consult with the disagreeing agency or Indian tribe and other
agencies with similar or related areas of interest, expertise, or
responsibility on the scheduling of the joint meeting; and
(iii) At least 15 days in advance of the meeting, provide the
Commission with written notice of the time and place of the meeting and
a written agenda of the issues to be discussed at the meeting.
(7) The potential applicant and any disagreeing resource agency or
Indian tribe may conclude a joint meeting with a document embodying any
agreement among them regarding environmental protection, mitigation, or
enhancement measures and any issues that are unresolved.
(8) The potential applicant must describe all disagreements with a
resource agency or Indian tribe on technical or environmental
protection, mitigation, or enhancement measures in its application,
including an explanation of the basis for the applicant's disagreement
with the resource agency or Indian tribe, and must include in its
application any document developed pursuant to paragraph (c)(7) of this
section.
(9) A potential applicant may file an application with the Commission
if:
(i) It has complied with paragraph (c)(4) of this section and no
resource agency or Indian tribe has responded with substantive
disagreements by the deadline specified in paragraph (c)(5) of this
section; or
(ii) It has complied with paragraph (c)(6) of this section and a
resource agency or Indian tribe has responded with substantive
disagreements.
(10) The second stage of consultation ends:
(i) Ninety days after the submittal of information pursuant to
paragraph (c)(4) of this section in cases where no resource agency or
Indian tribe has responded with substantive disagreements; or
(ii) At the conclusion of the last joint meeting held pursuant to
paragraph (c)(6) of this section in cases where a resource agency or
Indian tribe has responded with substantive disagreements.
(d) Third stage of consultation. (1) The third stage of consultation
is initiated by the filing of an application for a license or exemption,
accompanied by a transmittal letter certifying that at the same time
copies of the application are being mailed to the resource agencies,
Indian tribes, and other government offices specified in paragraph
(d)(2) of this section.
(2) As soon as an applicant files such application documents with the
Commission, or promptly after receipt in the case of documents described
in paragraph (d)(2)(iii) of this section, as the Commission may direct
the applicant must serve on every resource agency and Indian tribe
consulted and on other government offices copies of:
(i) Its application for a license or an exemption from licensing;
(ii) Any deficiency correction, revision, supplement, response to
additional information request, or amendment to the application; and
(iii) Any written correspondence from the Commission requesting the
correction of deficiencies or the submittal of additional information.
(e) Waiver of compliance with consultation requirements. (1) If a
resource agency or Indian tribe waives in writing compliance with any
requirement of this section, a potential applicant does not have to
comply with that requirement as to that agency or tribe.
(2) If a resource agency or Indian tribe fails to timely comply with
a provision regarding a requirement of this section, a potential
applicant may proceed to the next sequential requirement of this section
without waiting for the resource agency or Indian tribe to comply.
(3) The failure of a resource agency or Indian tribe to timely comply
with a provision regarding a requirement of this section does not
preclude its participation in subsequent stages of the consultation
process.
(f) Application requirements documenting consultation and any
disagreements with resource agencies. An applicant must show in Exhibit
E of its application that it has met the requirements of paragraphs (b)
through (d) and paragraphs (g) and (h) of this section, and must include
a summary of the consultation process and:
(1) Any resource agency's or Indian tribe's letters containing
comments, recommendations, and proposed terms and conditions;
(2) Any letters from the public containing comments and
recommendations;
(3) Notice of any remaining disagreement with a resource agency or
Indian tribe on:
(i) The need for a study or the manner in which a study should be
conducted and the applicant's reasons for disagreement, and
(ii) Information on any environmental protection, mitigation, or
enhancement measure, including the basis for the applicant's
disagreement with the resource agency or Indian tribe;
(4) Evidence of any waivers under paragraph (e) of this section;
(5) Evidence of all attempts to consult with a resource agency or
Indian tribe, copies of related documents showing the attempts, and
documents showing the conclusion of the second stage of consultation;
(6) An explanation of how and why the project would, would not, or
should not, comply with any relevant comprehensive plan as defined in
2.l9 of this chapter and a description of any relevant resource agency
or Indian tribe determination regarding the consistency of the project
with any such comprehensive plan;
(7)(i) With regard to certification requirements for a license
applicant under section 401(a)(1) of the Federal Water Pollution Control
Act (Clean Water Act):
(A) A copy of the water quality certification;
(B) A copy of the request for certification, including proof of the
date on which the certifying agency received the request; or
(C) Evidence of waiver of water quality certification as described in
paragraph (f)(7)(ii) of this section.
(ii) A certifying agency is deemed to have waived the certification
requirements of section 401(a)(1) of the Clean Water Act if the
certifying agency has not denied or granted certification by one year
after the date the certifying agency received a written request for
certification. If a certifying agency denies certification, the
applicant must file a copy of the denial within 30 days after the
applicant received it.
(iii) Notwithstanding any other provision in title 18, chapter I,
subpart B, any application to amend an existing license, and any
amendment to a pending application for a license, requires a new request
for water quality certification pursuant to paragraph (f)(7)(i) of this
section if the amendment would have a material adverse impact on the
water quality in the discharge from the project or proposed project.
(8) A description of how the applicant's proposal addresses the
significant resource issues raised at the joint meeting held pursuant to
paragraph (b)(2) of this section; and
(9) A list containing the name and address of every federal, state,
and interstate resource agency and Indian tribe with which the applicant
consulted pursuant to paragraph (a)(1) of this section.
(g) Public participation. (1) At least 14 days in advance of the
joint meeting held pursuant to paragraph (b)(2) of this section, the
potential applicant must publish notice, at least once, of the purpose,
location, and timing of the joint meeting, in a daily or weekly
newspaper published in each county in which the proposed project or any
part thereof is situated. The notice shall include a summary of the
major issues to be discussed at the joint meeting.
(2)(i) A potential applicant must make available to the public for
inspection and reproduction the information specified in paragraph
(b)(1) of this section from the date on which the notice required by
paragraph (g)(1) of this section is first published until the date of
the joint meeting required by paragraph (b)(2) of this section.
(ii) The provisions of 4.32(b) will govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(iii) A potential applicant must make available to the public for
inspection at the joint meeting required by paragraph (b)(2) of this
section at least two copies of the information specified in paragraph
(b)(1) of this section.
(h) Transition provisions. (1) The provisions of this section are
not applicable to applications filed before June 19, 1991.
(2) The provisions of paragraphs (a) and (b) of this section are not
applicable to potential applicants that complied with the provisions of
paragraphs (a) and (b)(1) of this section prior to June 19, 1991.
(3) The provisions of paragraph (c) of this section are not
applicable to potential applicants that complied with the provisions of
paragraph (b)(2) of this section prior to June 19, 1991.
(4)(i) Any applicant that files its application on or after June 19,
1991, and that complied with the provisions of paragraphs (a) and (b)(1)
of this section prior to June 19, 1991, must hold a public meeting,
within 90 days from June 19, 1991, at or near the site of the proposed
project, to generally explain the potential applicant's proposal for the
site and to obtain the views of the public regarding resource issues
that should be addressed in any application for license or exemption
that may be filed by the potential applicant. The public meeting must
include both day and evening sessions, and the potential applicant must
make either audio recordings or written transcripts of both sessions.
(ii)(A) At least 15 days in advance of the meeting, the potential
applicant must provide all affected resource agencies, Indian tribes,
and the Commission with written notice of the time and place of the
meeting and a written agenda of the issues to be discussed at the
meeting.
(B) At least 14 days in advance of the meeting, the potential
applicant must publish notice, at least once, of the purpose, location,
and timing of the meeting, in a daily or weekly newspaper published in
each county in which the proposed project or any part thereof is
situated.
(iii)(A) A potential applicant must make available to the public for
inspection and reproduction information comparable to that specified in
paragraph (b)(1) of this section from the date on which the notice
required by paragraph (h)(4)(ii) of this section is first published
until the date of the public meeting required by paragraph (h)(4)(i) of
this section.
(B) The provisions of 4.32(b) will govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(C) A potential applicant must make available to the public for
inspection at both sessions of the public meeting required by paragraph
(h)(4)(i) of this section at least two copies of the information
specified in paragraph (h)(4)(iii)(A) of this section.
(D) A potential applicant must promptly provide copies of the audio
recordings or written transcripts of the sessions of the public meeting
to the Commission and, upon request, to any resource agency or Indian
tribe consulted.
(iv) Any applicant holding a public meeting pursuant to paragraph
(h)(4)(i) of this section must include in its filed application a
description of how the applicant's proposal addresses the significant
resource issues raised during the public meeting.
(Order 533, 56 FR 23153, May 20, 1991, as amended at 56 FR 61155,
Dec. 2, 1991)
18 CFR 4.39 Specifications for maps and drawings.
All required maps and drawings must conform to the following
specifications, except as otherwise prescribed in this chapter:
(a) Each original map or drawing must consist of a print on silver or
gelatin 35mm microfilm mounted on Type D (3 1/4'' by 7 3/8'') aperture
cards. Two duplicates must be made of each original. Full-sized prints
of maps and drawings must be on sheets no smaller than 24 by 36 inches
and no larger than 28 by 40 inches. A space five inches high by seven
inches wide must be provided in the lower right corner of each sheet.
The upper half of this space must bear the title, numerical and
graphical scale, and other pertinent information concerning the map or
drawing. The lower half of the space must be left clear. If the
drawing size specified in this paragraph limits the scale of drawings
described in paragraph (c) of this section, a smaller scale may be used
for those drawings.
(b) Each map must have a scale in full-sized prints no smaller than
one inch equals 0.5 miles for transmission lines, roads, and similar
linear features and no smaller than one inch equals 1,000 feet for other
project features. Where maps at these scales do not show sufficient
detail, larger scale maps may be required under 4.31(f). Each map must
show:
(1) True and magnetic meridians;
(2) State, county, and town lines; and
(3) Boundaries of public lands and reservations of the United States
(see 16 U.S.C. 796 (1) and (2)), if any. If a public land survey is
available, the maps must show all lines of that survey crossing the
project area and all official subdivisions of sections for the public
lands and reservations, including lots and irregular tracts, as
designated on the official plats of survey that may be obtained from the
Bureau of Land Management, Washington, DC, or examined in the local land
survey office; to the extent that a public land survey is not available
for public lands and reservations of the United States, the maps must
show the protractions of townships and section lines, which, if
possible, must be those recognized by the Federal agency administering
those lands.
(c) Drawings depicting details of project structures must have a
scale in full-sized prints no smaller than:
(1) One inch equals 50 feet for plans, elevations, and profiles; and
(2) One inch equals 10 feet for sections.
(d) Each map or drawing must be drawn and lettered to be legible when
it is reduced to a print that is 11 inches on its shorter side.
Following notification to the applicant that the application has been
accepted for filing (see 4.31(c)), prints reduced to that size must be
bound in each copy of the application which is required to be submitted
to the Commission or provided to any person, agency, or other entity.
(Order 54, 44 FR 61334, Oct. 25, 1979. Redesignated by Order 413, 50
FR 11678, Mar. 25, 1985)
18 CFR 4.39 Subpart E -- Application for License for Major Unconstructed Project and Major Modified Project
18 CFR 4.40 Applicability.
(a) Applicability. The provisions of this subpart apply to any
application for an initial license for a major unconstructed project
that would have a total installed capacity of more than 5 megawatts, and
any application for an initial or new license for a major modified
project with a total installed capacity more than 5 megawatts. An
applicant for license for any major unconstructed or major modified
water power project that would have a total installed generating
capacity of 5 megawatts or less must submit application under subpart G
( 4.60 and 4.61).
(b) Guidance from Commission staff. A prospective applicant for a
license for a major unconstructed project or major modified project may
seek advice from the Commission's Division of Hydropower Licensing
regarding the applicability of this subpart to its project (see
4.32(h)), including the determinations whether any proposed repair,
modification or reconstruction of an existing dam would result in a
significant change in the normal maximum surface elevation of an
existing impoundment, or whether any proposed change in existing project
works or operation would result in a significant environmental impact.
(Order 184, 46 FR 55936, Nov. 13, 1981, as amended by Order 413, 50
FR 11683, Mar. 25, 1985; Order 499, 53 FR 27002, July 18, 1988)
18 CFR 4.41 Contents of application.
Any application under this subpart must contain the following
information in the form prescribed:
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a (license or new license, as appropriate) for the (name
of project) water power project, as described in the attached exhibits.
(Specify any previous FERC project number designation.)
(2) The location of the proposed project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
(3) The exact name, business address, and telephone number of the
applicant are:
-- --
(4) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
State, as appropriate) and (is/is not) claiming preference under section
7(a) of the Federal Power Act. See 16 U.S.C. 796.
(5)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located and that affect the project as
proposed 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 accomplish the
purposes of the license under the Federal Power Act, are: (provide
citation and brief identification of the nature of each requirement; if
the applicant is a municipality, the applicant must submit copies of
applicable state or local laws or a municipal charter or, if such laws
or documents are not clear, any other appropriate legal authority,
evidencing that the municipality is competent under such laws to engage
in the business of developing, transmitting, utilizing, or distributing
power.)
(ii) The steps which the applicant has taken, or plans to take, to
comply with each of the laws cited above are: (provide brief
description for each requirement)
(b) Exhibit A is a description of the project. If the project
includes more than one dam with associated facilities, each dam and the
associated component parts must be described together as a discrete
development. The description for each development must contain:
(1) The physical composition, dimensions, and general configuration
of any dams, spillways, penstocks, powerhouses, tailraces or other
structures proposed to be included as part of the project;
(2) The normal maximum water surface area and normal maximum water
surface elevation (mean sea level), gross storage capacity of any
impoundments to be included as part of the project;
(3) The number, type and rated capacity of any proposed turbines or
generators to be included as part of the project;
(4) The number, length, voltage and interconnections of any primary
transmission lines proposed to be included a part of the project (See 16
U.S.C. 796(11));
(5) The description of any additional mechanical, electrical, and
transmission equipment appurtenant to the project; and
(6) All lands of the United States, including lands patented subject
to the provisions of section 24 of the Act, 16 U.S.C. 818, that are
enclosed within the project boundary described under paragraph (h) of
this section (Exhibit G), identified and tabulated by legal subdivisions
of a public land survey, by the best available legal description. The
tabulation must show the total acreage of the lands of the United States
within the project boundary.
(c) Exhibit B is a statement of project operation and resource
utilization. If the project includes more than one dam with associated
facilities, the information must be provided separately for each
discrete development. The exhibit must contain:
(1) A description of each alternative site considered in selecting of
the proposed site;
(2) A description of any alternative facility designs, processes, and
operations that were considered.
(3) A statement as to whether operation of the power plant will be
manual or automatic, an estimate of the annual plant factor, and a
statement of how the project will be operated during adverse, mean, and
high water years;
(4) An estimate of the dependable capacity and average annual energy
production in kilowatt-hours (or mechanical equivalent), supported by
the following data:
(i) The minimum, mean, and maximum recorded flows in cubic feet per
second of the stream or other body of water at the powerplant intake or
point of diversion, with a specification of any adjustment made for
evaporation, leakage minimum flow releases (including duration of
releases) or other reductions in available flow; a flow duration curve
indicating the period of record and the gauging stations used in
deriving the curve; and a specification of the critical streamflow used
to determine the dependable capacity;
(ii) An area-capacity curve showing the gross storage capacity and
usable storage capacity of the impoundment, with a rule curve showing
the proposed operation of the impoundment and how the usable storage
capacity is to be utilized;
(iii) The estimated hydraulic capacity of the powerplant in terms of
flow and efficiency (cubic feet per second at one-half, full and best
gate), and the corresponding generator output in kilowatts;
(iv) A tailwater rating curve; and
(v) A curve showing powerplant capability versus head and specifying
maximum, normal, and minimum heads;
(5) A statement of system and regional power needs and the manner in
which the power generated at the project is to be utilized, including
the amount of power to be used on-site, if any, supported by the
following data:
(i) Load curves and tabular data, if appropriate;
(ii) Details of conservation and rate design programs and their
historic and projected impacts on system loads; and
(iii) The amount of power to be sold and the identity of proposed
purchaser(s); and
(6) A statement of the applicant's plans for future development of
the project or of any other existing or proposed water power project on
the affected stream or other body of water, indicating the approximate
location and estimated installed capacity of the proposed developments.
(d) Exhibit C is a proposed construction schedule for the project.
The information required may be supplemented with a bar chart. The
construction schedule must contain:
(1) The proposed commencement and completion dates of any new
construction, modification, or repair of major project works;
(2) The proposed commencement date of first commercial operation of
each new major facility and generating unit; and
(3) If any portion of the proposed project consists of previously
constructed, unlicensed water power structures or facilities, a
chronology of original completion dates of those structures or
facilities specifying dates (approximate dates must be identified as
such) of:
(i) Commencement and completion of construction or installation;
(ii) Commencement of first commercial operation; and
(iii) Any additions or modifications other than routine maintenance.
(e) Exhibit D is a statement of project costs and financing. The
exhibit must contain:
(1) A statement of estimated costs of any new construction,
modification, or repair, including:
(i) The cost of any land or water rights necessary to the
development;
(ii) The total cost of all major project works;
(iii) Indirect construction costs such as costs of construction
equipment, camps, and commissaries;
(iv) Interest during construction; and
(v) Overhead, construction, legal expenses, and contingencies;
(2) If any portion of the proposed project consists of previously
constructed, unlicensed water power structures or facilities, a
statement of the original cost of those structures or facilities
specifying for each, to the extent possible, the actual or approximate
total costs (approximate costs must be identified as such) of:
(i) Any land or water rights necessary to the existing project works;
(ii) All major project works; and
(iii) Any additions or modifications other than routine maintenance;
(3) If the applicant is a licensee applying for a new license, and is
not a municipality or a state, an estimate of the amount which would be
payable if the project were to be taken over pursuant to section 14 of
the Federal Power Act, 16 U.S.C. 807, upon expiration of the license in
effect including:
(i) Fair value;
(ii) Net investment; and
(iii) Severance damages;
(4) A statement of the estimated average annual cost of the total
project as proposed, specifying any projected changes in the costs
(life-cycle costs) over the estimated financing or licensing period if
the applicant takes such changes into account, including:
(i) Cost of capital (equity and debt);
(ii) Local, state, and Federal taxes;
(iii) Depreciation or amortization, and
(iv) Operation and maintenance expenses, including interim
replacements, insurance, administrative and general expenses, and
contingencies;
(5) A statement of the estimated annual value of project power based
on a showing of the contract price for sale of power or the estimated
average annual cost of obtaining an equivalent amount of power (capacity
and energy) from the lowest cost alternative source of power, specifying
any projected changes in the costs (life-cycle costs) of power from that
source over the estimated financing or licensing period if the applicant
takes such changes into account;
(6) A statement describing other electric energy alternatives, such
as gas, oil, coal and nuclear-fueled powerplants and other conventional
and pumped storage hydroelectric plants;
(7) A statement and evaluation of the consequences of denial of the
license application and a brief perspective of what future use would be
made of the proposed site if the proposed project were not constructed;
and
(8) A statement specifying the sources and extent of financing and
annual revenues available to the applicant to meet the costs identified
in paragraphs (e) (1) and (4) of this section.
(f) Exhibit E is an Environmental Report. Information provided in
the report must be organized and referenced according to the itemized
subparagraphs below. See 4.38 for consultation requirements. The
Environmental Report must contain the following information,
commensurate with the scope of the project:
(1) General description of the locale. The applicant must provide a
general description of the environment of the proposed project area and
its immediate vicinity. The description must include location and
general information helpful to an understanding of the environmental
setting.
(2) Report on water use and quality. The report must discuss water
quality and flows and contain baseline data sufficient to determine the
normal and seasonal variability, the impacts expected during
construction and operation, and any mitigative, enhancement, and
protective measures proposed by the applicant. The report must be
prepared in consultation with the state and Federal agencies with
responsibility for management of water quality and quantity in the
affected stream or other body of water. The report must include:
(i) A description of existing instream flow uses of streams in the
project area that would be affected by construction and operation;
estimated quantities of water discharged from the proposed project for
power production; and any existing and proposed uses of project waters
for irrigation, domestic water supply, industrial and other purposes;
(ii) A description of the seasonal variation of existing water
quality for any stream, lake, or reservoir that would be affected by the
proposed project, including (as appropriate) measurements of:
significant ions, chlorophyll a, nutrients, specific conductance, pH,
total dissolved solids, total alkalinity, total hardness, dissolved
oxygen, bacteria, temperature, suspended sediments, turbidity and
vertical illumination;
(iii) A description of any existing lake or reservoir and any of the
proposed project reservoirs including surface area, volume, maximum
depth, mean depth, flushing rate, shoreline length, substrate
classification, and gradient for streams directly affected by the
proposed project;
(iv) A quantification of the anticipated impacts of the proposed
construction and operation of project facilities on water quality and
downstream flows, such as temperature, turbidity and nutrients;
(v) A description of measures recommended by Federal and state
agencies and the applicant for the purpose of protecting or improving
water quality and stream flows during project construction and
operation; an explanation of why the applicant has rejected any
measures recommended by an agency; and a description of the applicant's
alternative measures to protect or improve water quality stream flow;
(vi) A description of groundwater in the vicinity of the proposed
project, including water table and artesian conditions, the hydraulic
gradient, the degree to which groundwater and surface water are
hydraulically connected, aquifers and their use as water supply, and the
location of springs, wells, artesian flows and disappearing streams; a
description of anticipated impacts on groundwater and measures proposed
by the applicant and others for the mitigation of impacts on
groundwater; and
(3) Report on fish, wildlife, and botanical resources. The applicant
must provide a report that describes the fish, wildlife, and botanical
resources in the vicinity of the proposed project; expected impacts of
the project on these resources; and mitigation, enhancement, or
protection measures proposed by the applicant. The report must be
prepared in consultation with the state agency or agencies with
responsibility for these resources, the U.S. Fish and Wildlife Service,
the National Marine Fisheries Service (if the proposed project may
affect anadromous, estuarine, or marine fish resources), and any state
or Federal agency with managerial authority over any part of the
proposed project lands. The report must contain:
(i) A description of existing fish, wildlife, and plant communities
of the proposed project area and its vicinity, including any downstream
areas that may be affected by the proposed project and the area within
the transmission line corridor or right-of-way. A map of vegetation
types should be included in the description. For species considered
important because of their commercial or recreational value, the
information provided should include temporal and spatial distributions
and densities of such species. Any fish, wildlife, or plant species
proposed or listed as threatened or endangered by the U.S. Fish and
Wildlife Service or National Marine Fisheries Service (see 50 CFR 17.11
and 17.12) must be identified;
(ii) A description of the anticipated impacts on fish, wildlife and
botanical resources of the proposed construction and operation of
project facilities, including possible changes in size, distribution,
and reproduction of essential population of these resources and any
impacts on human utilization of these resources;
(iii) A description of any measures or facilities recommended by
state or Federal agencies for the mitigation of impacts on fish,
wildlife, and botanical resources, or for the protection or enhancement
of these resources, the impact on threatened or endangered species, and
an explanation of why the applicant has determined any measures or
facilities recommended by an agency are inappropriate as well as a
description of alternative measures proposed by applicant to protect
fish, wildlife and botanical resources; and
(iv) The following materials and information regarding any mitigation
measures or facilities, identified under clause (iii), proposed for
implementation or construction:
(A) Functional design drawings;
(B) A description of proposed operation and maintenance procedures
for any proposed measures or facilities;
(C) An implementation, construction and operation schedule for any
proposed measures or facilities;
(D) An estimate of the costs of construction, operation, and
maintenance of any proposed facilities or implementation of any
measures;
(E) A statement of the sources and amount of financing for mitigation
measures or facilities; and
(F) A map or drawing showing, by the use of shading, crosshatching or
other symbols, the identity and location of any proposed measures or
facilities.
(4) Report on historic and archaeological resources. The applicant
must provide a report that discusses any historical and archaeological
resources in the proposed project area, the impact of the proposed
project on those resources and the avoidance, mitigation, and protection
measures proposed by the applicant. The report must be prepared in
consultation with the State Historic Preservation Officer (SHPO) and the
National Park Service of the U.S. Department of Interior. The report
must contain:
(i) A description of any discovery measures, such as surveys,
inventories, and limited subsurface testing work, recommended by the
specified state and Federal agencies for the purpose of locating,
identifying, and assessing the significance of historic and
archaeological resources that would be affected by construction and
operation of the proposed project, together with a statement of the
applicant's position regarding the acceptability of the recommendations;
(ii) The results of surveys, inventories, and subsurface testing work
recommended by the state and Federal agencies listed above, together
with an explanation by the applicant of any variations from the survey,
inventory, or testing procedures recommended;
(iii) An identification (without providing specific site or property
locations) of any historic or archaeological site in the proposed
project area, with particular emphasis on sites or properties either
listed in, or recommended by the SHPO for inclusion in, the National
Register of Historic Places that would be affected by the construction
of the proposed project;
(iv) A description of the likely direct and indirect impacts of
proposed project construction or operation on sites or properties either
listed in, or recommended as eligible for, the National Register of
Historic Places;
(v) A management plan for the avoidance of, or mitigation of, impacts
on historic or archaeological sites and resources based upon the
recommendations of the state and Federal agencies listed above and
containing the applicant's explanation of variations from those
recommendations; and
(vi) The following materials and information regarding the mitigation
measures described under paragraph (f)(4)(v) of this section:
(A) A schedule for implementing the mitigation proposals;
(B) An estimate of the cost of the measures; and
(C) A statement of the sources and extent of financing.
(vii) The applicant must provide five copies (rather than the
fourteen copies required under 4.32(b)(1) of the Commission's
regulations) of any survey, inventory, or subsurface testing reports
containing specific site and property information, and including maps
and photographs showing the location and any required alteration of
historic and archaeological resources in relation to proposed project
facilities.
(5) Report on socio-economic impacts. The applicant must provide a
report which identifies and quantifies the impacts of constructing and
operating the proposed project on employment, population, housing,
personal income, local governmental services, local tax revenues and
other factors within the towns and counties in the vicinity of the
proposed project. The report must include:
(i) A description of the socio-economic impact area;
(ii) A description of employment, population and personal income
trends in the impact area;
(iii) An evaluation of the impact of any substantial in-migration of
people on the impact area's governmental facilities and services, such
as police, fire, health and educational facilities and programs;
(iv) On-site manpower requirements and payroll during and after
project construction, including a projection of total on-site employment
and construction payroll provided by month;
(v) Numbers of project construction personnel who:
(A) Currently reside within the impact area;
(B) Would commute daily to the construction site from places situated
outside the impact area; and
(C) Would relocate on a temporary basis within the impact area;
(vi) A determination of whether the existing supply of available
housing within the impact area is sufficient to meet the needs of the
additional population;
(vii) Numbers and types of residences and business establishments
that would be displaced by the proposed project, procedures to be
utilized to acquire these properties, and types and amounts of
relocation assistance payments that would be paid to the affected
property owners and businesses; and
(viii) A fiscal impact analysis evaluating the incremental local
government expenditures in relation to the incremental local government
revenues that would result from the construction of the proposed
project. Incremental expenditures may include, but are not be limited
to, school operating costs, road maintenance and repair, public safety,
and public utility costs.
(6) Report on geological and soil resources. The applicant must
provide a report on the geological and soil resources in the proposed
project area and other lands that would be directly or indirectly
affected by the proposed action and the impacts of the proposed project
on those resources. The information required may be supplemented with
maps showing the location and description of conditions. The report
must contain:
(i) A detailed description of geological features, including bedrock
lithology, stratigraphy, structural features, glacial features,
unconsolidated deposits, and mineral resources;
(ii) A detailed description of the soils, including the types,
occurrence, physical and chemical characteristics, erodability and
potential for mass soil movement;
(iii) A description showing the location of existing and potential
geological and soil hazards and problems, including earthquakes, faults,
seepage, subsidence, solution cavities, active and abandoned mines,
erosion, and mass soil movement, and an identification of any large
landslides or potentially unstable soil masses which could be aggravated
by reservior fluctuation;
(iv) A description of the anticipated erosion, mass soil movement and
other impacts on the geological and soil resources due to construction
and operation of the proposed project; and
(v) A description of any proposed measures of facilities for the
mitigtion of impacts on soils.
(7) Report on recreational resources. The applicant must prepare a
report containing a proposed recreation plan describing utilization,
design and development of project recreational facilities, and public
access to the project area. Development of the plan should include
consideration of the needs of the physically handicapped. Public and
private recreational facilities provided by others that would abut the
project should be noted in the report. The report must be prepared in
consultation with appropriate local, regional, state and Federal
recreation agencies and planning commissions, the National Park Service
of the U.S. Department of the Interior, and any other state or Federal
agency with managerial responsibility for any part of the project lands.
The report must contain:
(i) A description of any areas within or in the vicinity of the
proposed project boundary that are included in, or have been designated
for study for inclusion in:
(A) The National Wild and Scenic Rivers Systems (see 16 U.S.C.
1271);
(B) The National Trails System (see 16 U.S.C. 1241); or
(C) A wilderness area designated under the Wilderness Act (see 16
U.S.C. 1132);
(ii) A detailed description of existing recreational facilities
within the project vicinity, and the public recreational facilities
which are to be provided by the applicant at its sole cost or in
cooperation with others no later than 3 years from the date of first
commercial opertion of the proposed project and those recreation
facilities planned for future development based on anticipated demand.
When public recreation facilities are to be provided by other entities,
the applicant and those entities should enter into an agreement on the
type of facilities to be provided and the method of operation. Copies
of agreements with cooperating entities are to be appended to the plan;
(iii) A provision for a shoreline buffer zone that must be within the
project boundary, above the normal maximum surface elevation of the
project reservoir, and of sufficient width to allow public access to
project lands and waters and to protect the scenic, public recreational,
cultural, and other environmental values of the reseroir shoreline;
(iv) Estimates of existing and future recreational use at the
project, in daytime and overnight visitation (recreation days), with a
description of the methodology used in developing these data;
(v) A development schedule and cost estimates of the construction,
operation, and maintenance of existing, initial, and future public
recreational facilities, including a statement of the source and extent
of financing for such facilities;
(vi) A description of any measures or facilities recommended by the
agencies consulted for the purpose of creating, preserving, or enhancing
recreational opportunities at the proposed project, and for the purpose
of ensuring the safety of the public in its use of project lands and
waters, including an explanation of why the applicant has rejected any
measures or facilities recommended by an agency; and
(vii) A drawing or drawings, one of which describes the entire
project area, clearly showing:
(A) The location of project lands, and the types and number of
existing recreational facilities and those proposed for initial
development, including access roads and trails, and facilities for
camping, picnicking, swimming, boat docking and launching, fishing and
hunting, as well as provisions for sanitation and waste disposal;
(B) The location of project lands, and the type and number of
recreational facilities planned for future development;
(C) The location of all project lands reserved for recreational uses
other than those included in paragraphs (f)(7)(vii) (A) and (B) of this
section; and
(D) The project boundary (excluding surveying details) of all areas
designated for recreational development, sufficiently referenced to the
appropriate Exhibit G drawings to show that all lands reserved for
existing and future public recreational development and the shoreline
buffer zone are included within the project boundary. Recreational
cottages, mobile homes and year-round residences for private use are not
to be considered as public recreational facilities, and the lands on
which these private facilities are to be developed are not to be
included within the proposed project boundary.
(8) Report on aesthetic resources. The applicant must provide a
report that describes the aesthetic resources of the proposed project
area, the expected impacts of the project on these resources, and the
mitigation, enhancement or protection measures proposed. The report
must be prepared following consultation with Federal, state, and local
agencies having managerial responsibility for any part of the proposed
project lands or lands abutting those lands. The report must contain:
(i) A description of the aesthetic character of lands and waters
directly and indirectly affected by the proposed project facilities;
(ii) A description of the anticipated impacts on aesthetic resources
from construction activity and related equipment and material, and the
subsequent presence of proposed project facilities in the landscape;
(iii) A description of mitigative measures proposed by the applicant,
including architectural design, landscaping, and other reasonable
treatment to be given project works to preserve and enhance aesthetic
and related resources during construction and operation of proposed
project facilities; and
(iv) Maps, drawings and photographs sufficient to provide an
understanding of the information required under this paragraph. Maps or
drawings may be consolidated with other maps or drawings required in
this exhibit and must conform to the specifications of 4.39.
(9) Report on land use. The applicant must provide a report that
describes the existing uses of the proposed project lands and adjacent
property, and those land uses which would occur if the project is
constructed. The report may reference the discussions of land uses in
other sections of this exhibit. The report must be prepared following
consultation with local and state zoning or land management authorities,
and any Federal or state agency with managerial responsibility for the
proposed project or abutting lands. The report must include:
(i) A description of existing land use in the proposed project area,
including identification of wetlands, floodlands, prime or unique
farmland as designated by the Soil Conservation Service of the U.S.
Department of Agriculture, the Special Area Management Plan of the
Office of Coastal Zone Management, National Oceanic and Atmospheric
Administration, and lands owned or subject to control by government
agencies;
(ii) A description of the proposed land uses within and abutting the
project boundary that would occur as a result of development and
operation of the project; and
(iii) Aerial photographs, maps, drawings or other graphics sufficient
to show the location, extent and nature of the land uses referred to in
this section.
(10) Alternative locations, designs, and energy sources. The
applicant must provide an environment assessment of the following:
(i) Alternative sites considered in arriving at the selection of the
proposed project site;
(ii) Alternative facility designs, processes, and operations that
were considered and the reasons for their rejection;
(iii) Alternative electrical energy sources, such as gas, oil, coal,
and nuclear-fueled power plants, purchased power or diversity exchange,
and other conventional and pumped-storage hydroelectric plants; and
(iv) The overall consequences if the license application is denied.
(11) List of literature. Exhibit E must include a list of all
publications, reports, and other literature which were cited or
otherwise utilized in the preparation of any part of the environmental
report.
(g) Exhibit F consists of general design drawings of the principal
project works described under paragraph (b) of this section (Exhibit A)
and supporting information used as the basis of design. If the Exhibit
F submitted with the application is preliminary in nature, applicant
must so state in the application. The drawings must conform to the
specifications of 4.39.
(1) The drawings must show all major project structures in sufficient
detail to provide a full understanding of the project, including:
(i) Plans (overhead view);
(ii) Elevations (front view);
(iii) Profiles (side view); and
(iv) Sections.
(2) The applicant may submit preliminary design drawings with the
application. The final Exhibit F may be submitted during or after the
licensing process and must show the precise plans and specifications for
proposed structures. If the project is licensed on the basis of
preliminary designs, the applicant must submit a final Exhibit F for
Commission approval prior to commencement of any construction of the
project.
(3) Supporting design report. The applicant must furnish, at a
minimum, the following supporting information to demonstrate that
existing and proposed structures are safe and adequate to fulfill their
stated functions and must submit such information in a separate report
at the time the application is filed. The report must include:
(i) An assessment of the suitability of the site and the reservoir
rim stability based on geological and subsurface investigations,
including investigations of soils and rock borings and tests for the
evaluation of all foundations and construction materials sufficient to
determine the location and type of dam structure suitable for the site;
(ii) Copies of boring logs, geology reports and laboratory test
reports;
(iii) An identification of all borrow areas and quarry sites and an
estimate of required quantities of suitable construction material;
(iv) Stability and stress analyses for all major structures and
critical abutment slopes under all probable loading conditions,
including seismic and hydrostatic forces induced by water loads up to
the Probable Maximum Flood as appropriate; and
(v) The bases for determination of seismic loading and the Spillway
Design Flood in sufficient detail to permit independent staff
evaluation.
(4) The applicant must submit five copies (not fourteen copies as
required under 4.31(b) of this part) of the supporting design report
described in paragraph (g)(3) of this section at the time preliminary
and final design drawings are submitted to the Commission for review.
If the report contains preliminary drawings, it must be designated a
''Preliminary Supporting Design Report.''
(h) Exhibit G is a map of the project that must conform to the
specifications of 4.39. If more than one sheet is used, the sheets must
be numbered consecutively, and each sheet must bear a small insert
sketch showing the entire project and indicating that portion of the
project depicted on that sheet. If at any time after the application is
filed there is any change in the project boundary, the applicant must
submit, within a reasonable period following the completion of project
construction, a final Exhibit G showing the extent of such changes. The
map must show:
(1) Location of the project and principal features. The map must
show the location of the project as a whole with reference to the
affected stream or other body of water and, if possible, to a nearby
town or any other permanent monuments or objects, such as roads,
transmission lines or other structures, that can be noted on the map and
recognized in the field. The map must also show the relative locations
and physical interrelationships of the principal project works and other
features described under paragraph (b) of this section (Exhibit A).
(2) Project boundary. The map must show a project boundary enclosing
all project works and other features described under paragraph (b) of
this section (Exhibit A) that are to be licensed. If accurate survey
information is not available at the time the license application is
filed, the applicant must so state, and a tentative boundary may be
submitted. The boundary must enclose only those lands necessary for
operation and maintenance of the project and for other project purposes,
such as recreation, shoreline control, or protection of environmental
resources (see paragraph (f) of this section (Exhibit E)). Existing
residential, commercial, or other structures may be included within the
boundary only to the extent that underlying lands are needed for project
purposes (e.g., for flowage, public recreation, shoreline control, or
protection of environmental resources). If the boundary is on land
covered by a public survey, ties must be shown on the map at sufficient
points to permit accurate platting of the position of the boundary
relative to the lines of the public land survey. If the lands are not
covered by a public land survey, the best available legal description of
the position of the boundary must be provided, including distances and
directions from fixed monuments or physical features. The boundary must
be described as follows:
(i) Impoundments. (A) The boundary around a project impoundment must
be described by one of the following:
(1) Contour lines, including the contour elevation (preferred
method);
(2) Specified courses and distances (metes and bounds);
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must be located no more than 200 feet (horizontal
measurement) from the exterior margin of the reservoir, defined by the
normal maximum surface elevation, except where deviations may be
necessary in describing the boundary according to the above methods or
where additional lands are necessary for project purposes, such as
public recreation, shoreline control, or protection of environmental
resources.
(ii) Continuous features. The boundary around linear (continuous)
project features such as access roads, transmission lines, and conduits
may be described by specified distances from center lines or offset
lines of survey. The width of such corridors must not exceed 200 feet
unless good cause is shown for a greater width. Several sections of a
continuous feature may be shown on a single sheet with information
showing the sequence of contiguous sections.
(iii) Noncontinuous features. (A) The boundary around noncontinuous
project works such as dams, spillways, and powerhouses must be described
by one of the following:
(1) Contour lines;
(2) Specified courses and distances;
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must enclose only those lands that are necessary for
safe and efficient operation and maintenance of the project or for other
specified project purposes, such as public recreation or protection of
environmental resources.
(3) Federal lands. Any public lands and reservations of the United
States (Federal lands) (see 16 U.S.C. 796 (1) and (2)) that are within
the project boundary, such as lands administered by the U.S. Forest
Service, Bureau of Land Management, or National Park Service, or Indian
tribal lands, and the boundaries of those Federal lands, must be
identified as such on the map by:
(i) Legal subdivisions of a public land survey of the affected area
(a protraction of identified township and section lines is sufficient
for this purpose); and
(ii) The Federal agency, identified by symbol or legend, that
maintains or manages each identified subdivision of the public land
survey within the project boundary; or
(iii) In the absence of a public land survey, the location of the
Federal lands according to the distances and directions from fixed
monuments or physical features. When a Federal survey monument or a
Federal bench mark will be destroyed or rendered unusable by the
construction of project works, at least two permanent, marked witness
monuments or bench marks must be established at accessible points. The
maps show the location (and elevation, for bench marks) of the survey
monument or bench mark which will be destroyed or rendered unusable, as
well as of the witness monuments or bench marks. Connecting courses and
distances from the witness monuments or bench marks to the original must
also be shown.
(4) Non-Federal lands. For those lands within the project boundary
not identified under paragraph (h)(3) of this section, the map must
identify by legal subdivision:
(i) Lands owned in fee by the applicant and lands that the applicant
plans to acquire in fee; and
(ii) Lands over which the applicant has acquired or plans to acquire
rights to occupancy and use other than fee title, including rights
acquired to be required by easement or lease.
(Order 184, 46 FR 55936, Nov. 13, 1981; 48 FR 4459, Feb. 1, 1983, as
amended by Order 413, 50 FR 11684, Mar. 25, 1985; Order 464, 52 FR
5449, Feb. 23, 1987)
18 CFR 4.41 Subpart F -- Application for License for Major Project --
Existing Dam
Authority: Federal Power Act, as amended (16 U.S.C. 792-828c);
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601-2645);
Department of Energy Organization Act (42 U.S.C. 7101-7352); E.O.
12009, 42 FR 46267; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et
seq.).
18 CFR 4.50 Applicability.
(a) Applicability. (1) Except as provided in paragraph (a)(2) of
this section, the provisions of this subpart apply to any application
for either an initial license or new license for a major project --
existing dam that is proposed to have a total installed capacity of more
than 5 megawatts.
(2) This subpart does not apply to any major project -- existing dam
(see 4.40) that is proposed to entail or include:
(i) Any repair, modification or reconstruction of an existing dam
that would result in a significant change in the normal maximum surface
area or normal maximum surface elevation of an existing impoundment; or
(ii) Any new development or change in project operation that would
result in a significant environmental impact.
(3) An applicant for license for any major project -- existing dam
that would have a total installed capacity of 5 megawatts or less must
submit application under subpart G ( 4.60 and 4.61).
(b) Guidance from Commission staff. A prospective applicant for a
major license -- existing dam may seek advice from the Commission staff
regarding the applicability of these sections to its project (see
4.32(h)), including the determinations whether any proposed repair or
reconstruction of an existing dam would result in a significant change
in the normal maximum surface area or the normal maximum surface
elevation of an existing impoundment, or whether any proposed new
development or change in project operation would result in a significant
environmental impact.
(Order 59, 44 FR 67651, Nov. 27, 1979, as amended by Order 184, 46 FR
55942, Nov. 13, 1981; Order 413, 50 FR 11684, Mar. 25, 1985; Order
499, 53 FR 27002, July 18, 1988)
18 CFR 4.51 Contents of application.
An application for license under this subpart must contain the
following information in the form specified. As provided in paragraph
(f) of this section, the appropriate Federal, state, and local resource
agencies must be given the opportunity to comment on the proposed
project, prior to filing of the application for license for major
project -- existing dam. Information from the consultation process must
be included in this Exhibit E, as appropriate.
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a (license or new license, as appropriate) for the (name
of project) water power project, as described in the attached exhibits.
(Specify any previous FERC project number designation.)
(2) The location of the project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
(3) The exact name and business address of the applicant are:
-- -- --
The exact name and business address of each person authorized to act
as agent for the applicant in this application are:
-- -- --
(4) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
state, as appropriate) and (is/is not) claiming preference under section
7(a) of the Federal Power Act. See 16 U.S.C. 796.
(5)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located that affect the project as proposed,
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 accomplish the purposes of the
license under the Federal Power Act, are: (Provide citation and brief
identification of the nature of each requirement; if the applicant is a
municipality, the applicant must submit copies of applicable state and
local laws or a municipal charter, or, if such laws or documents are not
clear, other appropriate legal authority, evidencing that the
municipality is competent under such laws to engage in the business of
developing, transmitting, utilizing, or distributing power.)
(ii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
description for each law).
(6) The applicant must provide the name and address of the owner of
any existing project facilities. If the dam is federally owned or
operated, provide the name of the agency.
(b) Exhibit A is a description of the project. This exhibit need not
include information on project works maintained and operated by the U.S.
Army Corps of Engineers, the Bureau of Reclamation, or any other
department or agency of the United States, except for any project works
that are proposed to be altered or modified. If the project includes
more than one dam with associated facilities, each dam and the
associated component parts must be described together as a discrete
development. The description for each development must contain:
(1) The physical composition, dimensions, and general configuration
of any dams, spillways, penstocks, powerhouses, tailraces, or other
structures, whether existing or proposed, to be included as part of the
project;
(2) The normal maximum surface area and normal maximum surface
elevation (mean sea level), gross storage capacity, and usable storage
capacity of any impoundments to be included as part of the project;
(3) The number, type, and rated capacity of any turbines or
generators, whether existing or proposed, to be included as part of the
project;
(4) The number, length, voltage, and interconnections of any primary
transmission lines, whether existing or proposed, to be included as part
of the project (see 16 U.S.C. 796(11));
(5) The specifications of any additional mechanical, electrical, and
transmission equipment appurtenant to the project; and
(6) All lands of the United States that are enclosed within the
project boundary described under paragraph (h) of this section (Exhibit
G), identified and tabulated by legal subdivisions of a public land
survey of the affected area or, in the absence of a public land survey,
by the best available legal description. The tabulation must show the
total acreage of the lands of the United States within the project
boundary.
(c) Exhibit B is a statement of project operation and resource
utilization. If the project includes more than one dam with associated
facilities, the information must be provided separately for each such
discrete development. The exhibit must contain:
(1) A statement whether operation of the powerplant will be manual or
automatic, an estimate of the annual plant factor, and a statement of
how the project will be operated during adverse, mean, and high water
years;
(2) An estimate of the dependable capacity and average annual energy
production in kilowatt-hours (or a mechanical equivalent), supported by
the following data:
(i) The minimum, mean, and maximum recorded flows in cubic feet per
second of the stream or other body of water at the powerplant intake or
point of diversion, with a specification of any adjustments made for
evaporation, leakage, minimum flow releases (including duration of
releases), or other reductions in available flow; a flow duration curve
indicating the period of record and the gauging stations used in
deriving the curve; and a specification of the period of critical
streamflow used to determine the dependable capacity;
(ii) An area-capacity curve showing the gross storage capacity and
usable storage capacity of the impoundment, with a rule curve showing
the proposed operation of the impoundment and how the usable storage
capacity is to be utilized;
(iii) The estimated hydraulic capacity of the powerplant (maximum
flow through the powerplant) in cubic feet per second;
(iv) A tailwater rating curve; and
(v) A curve showing powerplant capability versus head and specifying
maximum, normal, and minimum heads;
(3) A statement, with load curves and tabular data, if necessary, of
the manner in which the power generated at the project is to be
utilized, including the amount of power to be used on-site, if any, the
amount of power to be sold, and the identity of any proposed purchasers;
and
(4) A statement of the applicant's plans, if any, for future
development of the project or of any other existing or proposed water
power project on the stream or other body of water, indicating the
approximate location and estimated installed capacity of the proposed
developments.
(d) Exhibit C is a construction history and proposed construction
schedule for the project. The construction history and schedules must
contain:
(1) If the application is for an initial license, a tabulated
chronology of construction for the existing projects structures and
facilities described under paragraph (b) of this section (Exhibit A),
specifying for each structure or facility, to the extent possible, the
actual or approximate dates (approximate dates must be identified as
such) of:
(i) Commencement and completion of construction or installation;
(ii) Commencement of commercial operation; and
(iii) Any additions or modifications other than routine maintenance;
and
(2) If any new development is proposed, a proposed schedule
describing the necessary work and specifying the intervals following
issuance of a license when the work would be commenced and completed.
(e) Exhibit D is a statement of costs and financing. The statement
must contain:
(1) If the application is for an initial license, a tabulated
statement providing the actual or approximate original cost (approximate
costs must be identified as such) of:
(i) Any land or water right necessary to the existing project; and
(ii) Each existing structure and facility described under paragraph
(b) of this section (Exhibit A).
(2) If the applicant is a licensee applying for a new license, and is
not a municipality or a state, an estimate of the amount which would be
payable if the project were to be taken over pursuant to section 14 of
the Federal Power Act upon expiration of the license in effect (see 16
U.S.C. 807), including:
(i) Fair value;
(ii) Net investment; and
(iii) Severance damages.
(3) If the application includes proposals for any new development, a
statement of estimated costs, including:
(i) The cost of any land or water rights necessary to the new
development; and
(ii) The cost of the new development work, with a specification of:
(A) Total cost of each major item;
(B) Indirect construction costs such as costs of construction
equipment, camps, and commissaries;
(C) Interest during construction; and
(D) Overhead, construction, legal expenses, taxes, administrative and
general expenses, and contingencies.
(4) A statement of the estimated average annual cost of the total
project as proposed, specifying any projected changes in the costs over
the estimated financing or licensing period if the applicant takes such
changes into account, including:
(i) Cost of capital (equity and debt);
(ii) Local, state, and Federal taxes;
(iii) Depreciation or amortization, and
(iv) Operation and maintenance expenses, including interim
replacements, insurance, administrative and general expenses, and
contingencies.
(5) A statement of the estimated annual value of project power, based
on a showing of the contract price for sale of power or the estimated
average annual cost of obtaining an equivalent amount of power (capacity
and energy) from the lowest cost alternative source, specifying any
projected changes in the cost of power from that source over the
estimated financing or licensing period if the applicant takes such
changes into account.
(6) A statement specifying the sources and extent of financing and
annual revenues available to the applicant to meet the costs identified
in paragraphs (e) (3) and (4) of this section.
(f) Exhibit E is an Environmental Report. Information provided in
the report must be organized and referenced according to the itemized
subparagraphs below. See 4.38 for consultation requirements. The
Environmental Report must contain the following information,
commensurate with the scope of the proposed project:
(1) General description of the locale. The applicant must provide a
general description of the environment of the project and its immediate
vicinity. The description must include general information concerning
climate, topography, wetlands, vegetative cover, land development,
population size and density, the presence of any floodplain and the
occurrence of flood events in the vicinity of the project, and any other
factors important to an understanding of the setting.
(2) Report on water use and quality. The report must discuss the
consumptive use of project waters and the impact of the project on water
quality. The report must be prepared in consultation with the state and
Federal agencies with responsibility for management of water quality in
the affected stream or other body of water. Consultation must be
documented by appending to the report a letter from each agency
consulted that indicates the nature, extent, and results of the
consultation. The report must include:
(i) A description (including specified volume over time) of existing
and proposed uses of project waters for irrigation, domestic water
supply, steam-electric plant, industrial, and other consumptive
purposes;
(ii) A description of existing water quality in the project
impoundment and downstream water affected by the project and the
applicable water quality standards and stream segment classifications;
(iii) A description of any minimum flow releases specifying the rate
of flow in cubic feet per second (cfs) and duration, changes in the
design of project works or in project operation, or other measures
recommended by the agencies consulted for the purposes of protecting or
improving water quality, including measures to minimize the short-term
impacts on water quality of any proposed new development of project
works (for any dredging or filling, refer to 40 CFR part 230 and 33 CFR
320.3(f) and 323.3(e)) /1/ ;
(iv) A statement of the existing measures to be continued and new
measures proposed by the applicant for the purpose of protecting or
improving water quality, including an explanation of why the applicant
has rejected any measures recommended by an agency and described under
paragraph (f)(2)(iii) of this section.
(v) A description of the continuing impact on water quality of
continued operation of the project and the incremental impact of
proposed new development of project works or changes in project
operation; and
(3) Report on fish, wildlife, and botanical resources. The report
must discuss fish, wildlife, and botanical resources in the vicinity of
the project and the impact of the project on those resources. The
report must be prepared in consultation with any state agency with
responsibility for fish, wildlife, and botanical resources, the U.S.
Fish and Wildlife Service, the National Marine Fisheries Service (if the
project may affect anadromous fish resources subject to that agency's
jurisdiction), and any other state or Federal agency with managerial
authority over any part of the project lands. Consultation must be
documented by appending to the report a letter from each agency
consulted that indicates the nature, extent, and results of the
consultation. The report must include:
(i) A description of the fish, wildlife, and botanical resources of
the project and its vicinity, and of downstream areas affected by the
project, including identification of any species listed as threatened or
endangered by the U.S. Fish and Wildlife Service (See 50 CFR 17.11 and
17.12);
(ii) A description of any measures or facilities recommended by the
agencies consulted for the mitigation of impacts on fish, wildlife, and
botanical resources, or for the protection or improvement of those
resources;
(iii) A statement of any existing measures or facilities to be
continued or maintained and any measures or facilities proposed by the
applicant for the mitigation of impacts on fish, wildlife, and botanical
resources, or for the protection or improvement of such resources,
including an explanation of why the applicant has rejected any measures
or facilities recommended by an agency and described under paragraph
(f)(3)(ii) of this section.
(iv) A description of any anticipated continuing impact on fish,
wildlife, and botanical resources of continued operation of the project,
and the incremental impact of proposed new development of project works
or changes in project operation; and
(v) The following materials and information regarding the measures
and facilities identified under paragraph (f)(3)(iii) of this section:
(A) Functional design drawings of any fish passage and collection
facilities, indicating whether the facilities depicted are existing or
proposed (these drawings must conform to the specifications of 4.39
regarding dimensions of full-sized prints, scale, and legibility);
(B) A description of operation and maintenance procedures for any
existing or proposed measures or facilities;
(C) An implementation or construction schedule for any proposed
measures or facilities, showing the intervals following issuance of a
license when implementation of the measures or construction of the
facilities would be commenced and completed;
(D) An estimate of the costs of construction, operation, and
maintenance, of any proposed facilities, and of implementation of any
proposed measures, including a statement of the sources and extent of
financing; and
(E) A map or drawing that conforms to the size, scale, and legibility
requirements of 4.39 showing by the use of shading, cross-hatching, or
other symbols the identity and location of any measures or facilities,
and indicating whether each measure or facility is existing or proposed
(the map or drawings in this exhibit may be consolidated).
(4) Report on historical and archeological resources. The report
must discuss the historical and archeological resources in the project
area and the impact of the project on those resources. The report must
be prepared in consultation with the State Historic Preservation Officer
and the National Park Service. Consultation must be documented by
appending to the report a letter from each agency consulted that
indicates the nature, extent, and results of the consultation. The
report must contain:
(i) Identification of any sites either listed or determined to be
eligible for inclusion in the National Register of Historic Places that
are located in the project area, or that would be affected by operation
of the project or by new development of project facilities (including
facilities proposed in this exhibit);
(ii) A description of any measures recommended by the agencies
consulted for the purpose of locating, identifying, and salvaging
historical or archaeological resources that would be affected by
operation of the project, or by new development of project facilities
(including facilities proposed in this exhibit), together with a
statement of what measures the applicant proposes to implement and an
explanation of why the applicant rejects any measures recommended by an
agency.
(iii) The following materials and information regarding the survey
and salvage activities described under paragraph (f)(4)(ii) of this
section:
(A) A schedule for the activities, showing the intervals following
issuance of a license when the activities would be commenced and
completed; and
(B) An estimate of the costs of the activities, including a statement
of the sources and extent of financing.
(5) Report on recreational resources. The report must discuss
existing and proposed recreational facilities and opportunities at the
project. The report must be prepared in consultation with local, state,
and regional recreation agencies and planning commissions, the National
Park Service, and any other state or Federal agency with managerial
authority over any part of the project lands. Consultation must be
documented by appending to the report a letter from each agency
consulted indicating the nature, extent, and results of the
consultation. The report must contain:
(i) A description of any existing recreational facilities at the
project, indicating whether the facilities are available for public use;
(ii) An estimate of existing and potential recreational use of the
project area, in daytime and overnight visits;
(iii) A description of any measures or facilities recommended by the
agencies consulted for the purpose of creating, preserving, or enhancing
recreational opportunities at the project and in its vicinity (including
opportunities for the handicapped), and for the purpose of ensuring the
safety of the public in its use of project lands and waters;
(iv) A statement of the existing measures or facilities to be
continued or maintained and the new measures or facilities proposed by
the applicant for the purpose of creating, preserving, or enhancing
recreational opportunities at the project and in its vicinity, and for
the purpose of ensuring the safety of the public in its use of project
lands and waters, including an explanation of why the applicant has
rejected any measures or facilities recommended by an agency and
described under paragraph (f)(5)(iii) of this section; and
(v) The following materials and information regarding the measures
and facilities identified under paragraphs (f)(5) (i) and (iv) of this
section:
(A) Identification of the entities responsible for implementing,
constructing, operating, or maintaining any existing or proposed
measures or facilities;
(B) A schedule showing the intervals following issuance of a license
at which implementation of the measures or construction of the
facilities would be commenced and completed;
(C) An estimate of the costs of construction, operation, and
maintenance of any proposed facilities, including a statement of the
sources and extent of financing;
(D) A map or drawing that conforms to the size, scale, and legibility
requirements of 4.39 showing by the use of shading, cross-hatching, or
other symbols the identity and location of any facilities, and
indicating whether each facility is existing or proposed (the maps or
drawings in this exhibit may be consolidated); and
(vi) A description of any areas within or in the vicinity of the
proposed project boundary that are included in, or have been designated
for study for inclusion in, the National Wild and Scenic Rivers System,
or that have been designated as wilderness area, recommended for such
designation, or designated as a wilderness study area under the
Wilderness Act.
(6) Report on land management and aesthetics. The report must
discuss the management of land within the proposed project boundary,
including wetlands and floodplains, and the protection of the
recreational and scenic values of the project. The report must be
prepared following consultation with local and state zoning and land
management authorities and any Federal or state agency with managerial
authority over any part of the project lands. Consultation must be
documented by appending to the report a letter from each agency
consulted indicating the nature, extent, and results of the
consultation. The report must contain:
(i) A description of existing development and use of project lands
and all other lands abutting the project impoundment;
(ii) A description of the measures proposed by the applicant to
ensure that any proposed project works, rights-of-way, access roads, and
other topographic alterations blend, to the extent possible, with the
surrounding environment; (see, e.g., 44 F.P.C. 1496, et seq.);
(iii) A description of wetlands or floodplains within, or adjacent
to, the project boundary, any short-term or long-term impacts of the
project on those wetlands or floodplains, and any mitigative measures in
the construction or operation of the project that minimize any adverse
impacts on the wetlands or floodplains;
(iv) A statement, including an analysis of costs and other
constraints, of the applicant's ability to provide a buffer zone around
all or any part of the impoundment, for the purpose of ensuring public
access to project lands and waters and protecting the recreational and
aesthetic values of the impoundment and its shoreline;
(v) A description of the applicant's policy, if any, with regard to
permitting development of piers, docks, boat landings, bulkheads, and
other shoreline facilities on project lands and waters; and
(vi) Maps or drawings that conform to the size, scale and legibility
requirements of 4.39, or photographs, sufficient to show the location
and nature of the measures proposed under paragraph (f)(6)(ii) of this
section (maps or drawings in this exhibit may be consolidated).
(7) List of literature. The report must include a list of all
publications, reports, and other literature which were cited or
otherwise utilized in the preparation of any part of the environmental
report.
(g) Exhibit F consists of general design drawings of the principal
project works described under paragraph (b) of this section (Exhibit A)
and supporting information used to demonstrate that existing project
structures are safe and adequate to fulfill their stated functions.
(1) The drawings must show all major project structures in sufficient
detail to provide a full understanding of the project, including:
(i) Plans (overhead view);
(ii) Elevations (front view); and
(iii) Sections (side view).
(2) Supporting design report. The applicant must furnish, at a
minimum, the following supporting information to demonstrate that
existing structures are safe and adequate to fulfill their stated
functions, and must submit such infomation in a separate report at the
time the application is filed. The report must include:
(i) A description of the physical condition or state of maintenance
and repair of any existing and proposed structures or equipment; and
(ii) Information relating to composition and competency of
foundations and other structures, gradation of filter and riprap
material, design strength and ultimate strength of concrete and steel,
stress and stability analysis, spillway rating curves, water levels, and
other appropriate data.
(3) The applicant must submit five copies of the supporting design
report as described in paragraph (g)(2) of this section (rather than the
fourteen copies required under 4.32(b)(1) of the Commission's
regulations) at the time general design drawings are submitted to the
Commission for review.
(h) Exhibit G is a map of the project. The map must conform to the
specifications of 4.39. If more than one sheet is used, the sheets must
be numbered consecutively and each sheet must bear a small inset sketch
showing the entire project (or development) and indicating the portion
depicted on the sheet. The map must show:
(1) Location of the project and principal features. The map must
show the location of the project as a whole with reference to the
affected stream or other body of water and, if possible, to a nearby
town or any permanent monuments or objects, such as roads, transmission
lines or other structures, that can be noted on the map and recognized
in the field. The map must also show the relative locations and
physical interrelationships of the principal project works and other
features described under paragraph (b) of this section (Exhibit A).
(2) Project boundary. The map must show a project boundary enclosing
all of the principal project works and other features described under
paragraph (b) of this section (Exhibit A) that are to be licensed. If
accurate survey information is not available at the time the license
application is filed, the applicant must so state, and a tentative
boundary may be submitted. The boundary must enclose only those lands
necessary for operation and maintenance of the project and for other
project purposes, such as recreation, shoreline control, or protection
of environmental resources (see paragraph (f) of this section (Exhibit
E)). Existing residential, commercial, or other structures may be
included within the boundary only to the extent that underlying lands
are needed for project purposes (e.g., for flowage, public recreation,
shoreline control, or protection of environmental resources). If the
boundary is on land covered by a public land survey, ties must be shown
on the map at sufficient points to permit accurate platting of the
position of the boundary relative to the lines of the public land
survey. If the lands are not covered by a public land survey, the best
available legal description of the position of the boundary must be
provided, including distances and directions from fixed monuments or
physical features. The boundary must be described as follows:
(i) Impoundments. (A) The boundary around a project impoundment may
be described by any of the following:
(1) Contour lines, including the contour elevation (preferred
method);
(2) Specified courses and distances (metes and bounds);
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must be located no more than 200 feet (horizontal
measurement) from the exterior margin of the reservoir, defined by the
normal maximum surface elevation, except where deviations may be
necessary in describing the boundary according to the above methods, or
where additional lands are necessary for project purposes, such as
public recreation, shoreline control, or protection of environmental
resources.
(ii) Continuous features. The boundary around linear (continuous)
project features such as access roads, transmission lines, and conduits
may be described by specified distances from center lines or offset
lines of survey. The width of such corridors must not exceed 200 feet,
unless good cause is shown for a greater width. Several sections of a
continuous feature may be shown on a single sheet, with information
showing the sequence of contiguous sections.
(iii) Noncontinuous features. (A) the boundary around noncontinuous
project works such as dams, spillways, and powerhouses may be described
by:
(1) Contour lines;
(2) Specified courses and distances;
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must enclose only those lands that are necessary for
safe and efficient operation and maintenance of the project, or for
other specified project purposes, such as public recreation or
protection of environmental resources.
(3) Federal lands. Any public lands and reservations of the United
States (see 16 U.S.C. 796(1) and (2)) (Federal lands) that are within
the project boundary, e.g., lands adminstered by the U.S. Forest
Service, Bureau of Land Management, National Park Service, or Indian
tribal lands, and the boundaries of those Federal lands, must be
identified on the map:
(i) By legal subdivisions of a public land survey of the affected
area (a protraction of identified township and section lines is
sufficient for this purpose);
(ii) By the Federal agency, identified by symbol or legend if
desired, that maintains or manages each identified subdivision of the
public land survey within the project boundary; and
(iii) In the absence of a public land survey, by the location of the
Federal lands according to the distances and directions from fixed
monuments or physical features. When a Federal survey monument or a
Federal bench mark will be destroyed or rendered unusable by the
construction of project works, at least two permanent, marked, witness
monuments or bench marks must be established at accessible points. The
maps must show the location (and elevation, for bench marks) of the
survey monument or bench mark which will be destroyed or rendered
unusable, as well as of the witness monuments or bench marks.
Connecting courses and distances from the witness monuments or bench
marks to the original must also be shown.
(4) Non-Federal lands. For those lands within the project boundary
not identified under paragraph (h)(3) of this section, the map must
identify by legal subdivision:
(i) Lands owned in fee by the applicant and lands that the applicant
plans to acquire in fee; and
(ii) Lands over which the applicant has acquired or plans to acquire
rights to occupancy and use other than fee title, including rights
acquired or to be required by easement or lease.
(Order 141, 12 FR 8485, Dec. 19, 1947, as amended by Order 123, 46 FR
9029, Jan. 28, 1981; Order 183, 46 FR 55251, Nov. 9, 1981; Order 184,
46 FR 55942, Nov. 13, 1981; Order 413, 50 FR 11684, Mar. 25, 1985;
Order 464, 52 FR 5449, Feb. 23, 1987)
/1/ 33 CFR part 323 was revised at 47 FR 31810, July 22, 1982, and
323.3(e) no longer exists.
18 CFR 4.51 Subpart G -- Application for License for Minor Water Power Projects and Major Water Power Projects 5 Megawatts or Less
18 CFR 4.60 Applicability and notice to agencies.
(a) Applicability. The provisions of this subpart apply to any
application for an initial license or a new license for:
(1) A minor water power project, as defined in 4.30(b)(17);
(2) Any major project -- existing dam, as defined in 4.30(b)(16),
that has a total installed capacity of 5 MW or less; or
(3) Any major unconstructed project or major modified project, as
defined in 4.30 (b) (15) and (14) respectively, that has a total
installed capacity of 5 MW or less.
(b) Notice to agencies. The Commission will supply interested
Federal, state, and local agencies with notice of any application for
license for a water power project 5 MW or less and request comment on
the application. Copies of the application will be available for
inspection at the Commission's Division of Public Information. The
applicant shall also furnish copies of the filed application to any
Federal, state, or local agency that so requests.
(c) Unless an applicant for a license for a minor water power project
requests in its application that the Commission apply the following
provisions of Part I of the Federal Power Act when it issues a minor
license for a project, the Commission, unless it determines it would not
be in the public interest to do so, will waive:
(1) Section 4(b), insofar as it requires a licensee to file a
statement showing the actual legitimate costs of construction of a
project;
(2) Section 4(e), insofar as it relates to approval by the Chief of
Engineers and the Secretary of the Army of plans affecting navigation;
(3) Section 6, insofar as it relates to the acceptance and expression
in the license of terms and conditions of the Federal Power Act that are
waived in the licensing order;
(4) Section 10(c), insofar as it relates to a licensee's maintenance
of depreciation reserves;
(5) Sections 10(d) and 10(f);
(6) Section 14, with the exception of the right of the United States
or any state or municipality to take over, maintain, and operate a
project through condemnation proceedings; and
(7) Sections 15, 16, 19, 20 and 22.
(Order 413, 50 FR 11685, Mar. 25, 1985, as amended by Order 513, 54
FR 23806, June 2, 1989)
18 CFR 4.61 Contents of application.
(a) General instructions. (1) Entry upon land. No work may be
started on any proposed project works until the applicant receives a
signed license from the Commission. Acceptance of an application does
not authorize entry upon public lands or reservations of the United
States for any purpose. The applicant should determine whether any
additional Federal, state, or local permits are required.
(2) Exhibits F and G must be submitted on separate drawings.
Drawings for Exhibits F and G must have identifying title blocks and
bear the following certification: ''This drawing is a part of the
application for license made by the undersigned this ------ day of
---------- , 19 ---- .''
(3) Each application for a license for a water power project 5
megawatts or less must include the information requested in the initial
statement and lettered exhibits described by paragraphs (b) through (f)
of this section, and must be provided in the form specified. The
Commission reserves the right to require additional information, or
another filing procedure, if data provided indicate such action to be
appropriate.
(b) Initial statement.
(1) ---------- (Name of Applicant) applies to the Federal Energy
Regulatory Commission for ---------- (license or new license, as
appropriate) for the ---------- (name of project) water power project,
as described hereinafter. (Specify any previous FERC project number
designation.)
(2) The location of the project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
(3) The exact name, address, and telephone number of the applicant
are:
-- -- --
(4) The exact name, address, and telephone number of each person
authorized to act as agent for the applicant in this application, if
applicable, are:
-- -- --
(5) The applicant is a ------ (citizen of the United States,
association of citizens of the United States, domestic corporation,
municipality, or State, as appropriate) and (is/is not) claiming
perference under section 7(a) of the Federal Power Act. See 16 U.S.C.
796.
(6)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located that affect the project as proposed
with respect to bed and banks and 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 accomplish the purposes of the license
under the Federal Power Act, are: (provide citation and brief
identification of the nature of each requirement; if the applicant is a
municipality, the applicant must submit copies of applicable state or
local laws or a municipal charter or, if such laws or documents are not
clear, any other appropriate legal authority, evidencing that the
municipality is competent under such laws to engage in the business of
developing, transmitting, utilizing, or distributing power.)
(ii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
description for each requirement)
(7) Brief project description
(i) Proposed installed generating capacity ------ MW.
(ii) Check appropriate box:
existing dam unconstructed dam existing dam, major modified
project (see 4.30(b)(14))
(8) Lands of the United States affected (shown on Exhibit G):
Surveyed land Unsurveyed land
(9) Construction of the project is planned to start within ----
months, and is planned to be completed within ---- months, from the date
of issuance of license.
(c) Exhibit A is a description of the project and the proposed mode
of operation.
(1) The exhibit must include, in tabular form if possible, as
appropriate:
(i) The number of generating units, including auxiliary units, the
capacity of each unit, and provisions, if any, for future units;
(ii) The type of hydraulic turbine(s);
(iii) A description of how the plant is to be operated, manual or
automatic, and whether the plant is to be used for peaking;
(iv) The estimated average annual generation in kilowatt-hours or
mechanical energy equivalent;
(v) The estimated average head on the plant;
(vi) The reservoir surface area in acres and, if known, the net and
gross storage capacity;
(vii) The estimated hydraulic capacity of the plant (flow through the
plant) in cubic feet per second and estimated average flow of the stream
or water body at the plant or point of diversion; for projects with
installed capacity of more than 1.5 megawatts, a flow duration curve and
a description of the drainage area for the project site must be
provided;
(viii) Sizes, capacities, and construction materials, as appropriate,
of pipelines, ditches, flumes, canals, intake facilities, powerhouses,
dams, transmission lines, and other appurtenances; and
(ix) The estimated cost of the project.
(2) State the purposes of project (for example, use of power output).
(d) Exhibit E is an Environmental Report.
(1) For major unconstructed and major modified projects 5 MW or less.
Any application must contain an Exhibit E conforming with the data and
consultation requirements of 4.41(f) of this chapter, if the
application is for license for a water power project which has or is
proposed to have a total installed generating capacity greater than 1.5
MW but not greater than 5 MW, and which:
(i) Would use the water power potential of a dam and impoundment
which, at the time of application, has not been constructed (see
4.30(b)(15)); or
(ii) Involves any repair, modification or reconstruction of an
existing dam that would result in a significant change in the normal
maximum surface area or elevation of an existing impoundment or involves
any change in existing project works or operations that would result in
a significant environmental impact (see 4.30(b)(14)).
(2) For minor projects and major projects at existing dams 5 MW or
less. An application for license for either a minor water power project
with a total proposed installed generating capacity of 1.5 MW or less or
a major project -- existing dam with a proposed total installed capacity
of 5 MW or less must contain an Exhibit E under this subparagraph. See
4.38 for consultation requirements. The Environmental Report must
contain the following information:
(i) A description, including any maps or photographs which the
applicant considers appropriate, of the environmental setting of the
project, including vegetative cover, fish and wildlife resources, water
quality and quantity, land and water uses, recreational uses, historical
and archeological resources, and scenic and aesthetic resources. The
report must include a discussion of endangered or threatened plant and
animal species, any critical habitats, and any sites included in, or
eligible for inclusion in, the National Register of Historic Places.
The applicant may obtain assistance in the preparation of this
information from state natural resources agencies, the state historic
preservation officer, and from local offices of Federal natural
resources agencies.
(ii) A description of the expected environmental impacts from
proposed construction or development and the proposed operation of the
power project, including any impacts from any proposed changes in the
capacity and mode of operation of the project if it is already
generating electric power, and an explanation of the specific measures
proposed by the applicant, the agencies, and others to protect and
enhance environmental resources and values and to mitigate adverse
impacts of the project on such resources. The applicant must explain
its reasons for not undertaking any measures proposed by any agency
consulted.
(iii) A description of the steps taken by the applicant in consulting
with Federal, state, and local agencies with expertise in environmental
matters during the preparation of this exhibit prior to filing the
application for license with the Commission. In this report, the
applicant must:
(A) Indicate which agencies were consulted during the preparation of
the environmental report and provide copies of letters or other
documentation showing that the applicant consulted or attempted to
consult with each of the relevant agencies (specifying each agency)
before filing the application, including any terms or conditions of
license that those agencies have determined are appropriate to prevent
loss of, or damage to, natural resources; and
(B) List those agencies that were provided copies of the application
as filed with the Commission, the date or dates provided, and copies of
any letters that may be received from agencies commenting on the
application.
(iv) Any additional information the applicant considers important.
(e) Exhibit F consists of general drawings of the principal project
works. The drawings need not conform to the specifications of 4.39.
The exhibit must conform to the following requirements:
(1) The exhibit must consist of ink drawings, or drawings of similar
quality, on sheets no smaller than 8 and one-half inches by 11 inches,
drawn to a scale no smaller than 1 inch equals 50 feet for plans,
elevations, and profiles, and 1 inch equals 10 feet for sections. After
initial review of the application, an original and 2 copies of any
drawing must be submitted on 35mm microfilm, if requested by Commission
staff.
(2) The drawings must show a plan, elevation, profile, and section of
the dam structure and powerplant. Generating and auxiliary equipment
proposed must be clearly and simply depicted and described. A north
arrow must be included on the plan view.
(f) Exhibit G is a map of the project. The map need not conform to
the specifications of 4.39. The exhibit must instead conform to the
following requirements:
(1) The exhibit is a map or maps that show the location of all
project works and their location in relation to the stream or other
water body on which the project is located and to the nearest town or
any permanent monuments or objects, such as roads, transmission lines,
or other structures, that can be noted on the map and recognized in the
field. In the case of unsurveyed public land, or land that is not
public land, give the best legal description available. If surveyed
land, provide sections, subdivisions, range and township, and principal
base and meridian.
(2) The map must consist of ink drawings or drawings of similar
quality on sheets no smaller than 8 and one-half inches by 11 inches and
not larger than 24 inches by 36 inches, drawn to a scale no smaller than
one inch equals 1,000 feet. After review of the application, the
applicant must submit an original of the map(s), if requested by
Commission staff. Each original map must consist of a print on silver
or gelatin 35mm microfilm mounted on Type D (3 1/4'' x 7 3/8'') aperture
cards. Two duplicates of each original must also be submitted at that
time.
(3)(i) If an application for a license for a minor water power
project that will not occupy any public lands or reservations of the
United States does not contain a statement that the applicant requests
the Commission to apply the provisions of Part I of the Federal Power
Act enumerated in 4.60(c), the applicant:
(A) Must provide a reasonably accurate description of the project
location and all project works and features; and
(B) Must identify, in Exhibit G of its application, the owners of all
lands necessary for the construction and operation of the project; but
(C) Need not show a project boundary.
(ii) If an application for a license for a minor water power project
contains a statement that the applicant requests the Commission to apply
the provisions of Part I of the Federal Power Act enumerated in
4.60(c), the applicant must show the project boundary on the map it
submits as Exhibit G to its application, as specified in 4.41(h)(2).
(iii) If an application for a license for a minor water power project
proposes that the project would occupy any public lands or reservations
of the United States, the applicant must show the project boundaries on
public lands and reservations on the map it submits as Exhibit G to its
application, as specified in 4.41(h)(2).
(4) Water power projects not excepted by paragraph (f)(3) of this
section must include a project boundary as follows:
(i) The project boundary must enclose all project works, such as the
dam, reservoir, pipelines, access and other roads, powerplant, and
transmission lines. The boundary must be set at the minimum feasible
distance from project works necessary to allow operation and maintenance
of the project and control of the shoreline and reservoir. The project
boundary may be contour elevation lines, specified courses and
distances, or lines upon or parallel to public land survey lines.
(ii) The project boundary must be depicted on the map by use of
contour lines (preferred method), courses and distances, public land
survey, or lines parallel to the lines of the survey, or any combination
of those methods for reservoirs and impoundments, and the project
boundary around dams, spillways, and powerhouses; and must be depicted
by specified distances from a surveyed center line or offset lines of
survey for continuous features such as access roads, transmission lines,
pipelines, or canals. A tape-compass survey is acceptable for
determining courses and distances.
(iii) Federal lands. Any public lands and reservations of the United
States (see 16 U.S.C. 796 (1) and (2)) (Federal lands) that are within
the project boundary, e.g., lands administered by the U.S. Forest
Service, Bureau of Land Management, National Park Service, or Indian
tribal lands, and the boundaries of those Federal lands, must be
identified on the map:
(A) By legal subdivisions of a public land survey of the affected
area (a protraction of identified township and section lines is
sufficient for this purpose);
(B) By the Federal agency, identified by symbol or legend if desired,
that maintains or manages each identified subdivision of the public land
survey within the project boundary; and
(C) In the absence of a public land survey, by the location of the
Federal lands according to the distances and directions from fixed
monuments or physical features.
(iv) For clarity, use inset sketches to a larger scale than that used
for the overview map to show relationships of project works, natural
features, and property lines.
(v) Show one or more ties by distance and bearing from a definite,
identifiable point or points on project works or the project boundary to
established corners of the public land survey or other survey monuments,
if available.
(vi) If the project affects unsurveyed Federal lands, the protraction
of township and section lines must be shown. Such protractions,
whenever available, must be those recognized by the agency of the United
States having jurisdiction over the lands. On unsurveyed lands, show
ties by distance and bearing to fixed recognizable objects.
(Order 185, 46 FR 55949, Nov. 13, 1981, as amended by Order 413, 50
FR 11685, Mar. 25, 1985; Order 464, 52 FR 5449, Feb. 23, 1987; Order
513, 54 FR 23806, June 2, 1989)
18 CFR 4.61 Subpart H -- Application for License for Transmission Line Only
18 CFR 4.70 Applicability.
This subpart applies to any application for license issued solely for
a transmission line that transmits power from a licensed water power
project or other hydroelectric project authorized by Congress to the
point of junction with the distribution system or with the
interconnected primary transmission system.
(Order 184, 46 FR 55942, Nov. 13, 1981)
18 CFR 4.71 Contents of application.
An application for license for transmission line only must contain
the following information in the form specified.
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a (license or new license, as appropriate) for the (name
of project) transmission line only, as described in the attached
exhibits, that is connected with FERC Project No. ------ , for which a
license (was issued, or application was made, as appropriate) on the
------ day of ---------- , 19 ---- .
(2) The location of the transmission line would be:
State or territory:
County:
Township or nearby town:
(3) The proposed use or market for the power to be transmitted.
(4) The exact name, business address, and telephone number of the
applicant are:
(5) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
State, as appropriate) and (is/is not) claiming preference under section
7(a) of the Federal Power Act. See 16 U.S.C. 796.
(6)(i) (For any applicant which, at the time of application for
license for transmission line only, is a non-licensee.) The statutory or
regulatory requirements of the state(s) in which the project would be
located and that affect the project as proposed 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 distribution power and in any other
business necessary to accomplish the purposes of the license under the
Federal Power Act, are: (provide citation and brief identification of
the nature of each requirement; if the applicant is a municipality, the
applicant must submit copies of applicable state or local laws or a
municipal charter or, if such laws or documents are not clear, other
appropriate legal authority, evidencing that the municipality is
competent under such laws to engage in the business of developing,
transmitting, utilizing, or distributing power.)
(ii) (For any applicant which, at the time of application for license
for transmission line only, is a licensee.) The statutory or regulatory
requirements of the state(s) in which the transmission line would be
located and that affect the project as proposed with respect to bed and
banks and to the appropriation, diversion, and use of water for power
purposes, are: (provide citations and brief identification of the
nature of each requirement.)
(iii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
descriptions for each law.)
(b) Required exhibits. The application must contain the following
exhibits, as appropriate:
(1) For any transmission line that, at the time the application is
filed, is not constructed and is proposed to be connected to a licensed
water power project with an installed generating capacity of more than 5
MW -- Exhibits A, B, C, D, E, F, and G under 4.41 of this chapter;
(2) For any transmission line that, at the time the application is
filed, is not constructed and is proposed to be connected to a licensed
water power project with an installed generating capacity of 5 MW or
less -- Exhibits E, F, and G under 4.61 of this chapter; and
(3) For any transmission line that, at the time the application is
filed, has been constructed and is proposed to be connected to any
licensed water power project -- Exhibits E, F, and G under 4.61 of this
chapter.
(Order 184, 46 FR 55942, Nov. 13, 1981, as amended by Order 413, 50
FR 11685, Mar. 25, 1985)
18 CFR 4.71 Subpart I -- Application for Preliminary Permit; Amendment
and Cancellation of Preliminary Permit
Authority: Federal Power Act, as amended 16 U.S.C. 792-828c;
Department of Energy Organization Act, 42 U.S.C. 7101-7352; E.O.
12009, 42 FR 46267; Public Utility Regulatory Policies Act of 1978, 16
U.S.C. 2601-2645, unless otherwise noted.
18 CFR 4.80 Applicability.
Sections 4.80 through 4.83 pertain to preliminary permits under Part
I of the Federal Power Act. The sole purpose of a preliminary permit is
to secure priority of application for a license for a water power
project under Part I of the Federal Power Act while the permittee
obtains the data and performs the acts required to determine the
feasibility of the project and to support an application for a license.
(Order 54, 44 FR 61336, Oct. 25, 1979, as amended by Order 413, 50 FR
11685, Mar. 25, 1985)
18 CFR 4.81 Contents of application.
Each application for a preliminary permit must include the following
initial statement and numbered exhibits containing the information and
documents specified:
(a) Initial statement:
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a preliminary permit for the proposed (name of project)
water power project, as described in the attached exhibits. This
application is made in order that the applicant may secure and maintain
priority of application for a license for the project under Part I of
the Federal Power Act while obtaining the data and performing the acts
required to determine the feasibility of the project and to support an
application for a license.
(2) The location of the proposed project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
--
(3) The exact name, business address, and telephone number of the
applicant are:
-- -- --
The exact name and business address of each person authorized to act
as agent for the applicant in this application are:
-- -- --
(4) (Name of applicant) is a (citizen, association, citizens,
domestic corporation, municipality, or State, as appropriate) and (is/is
not) claiming preference under section 7(a) of the Federal Power Act.
(If the applicant is a municipality, the applicant must submit copies of
applicable state or local laws or a municipal charter or, if such laws
or documents are not clear, any other appropriate legal authority,
evidencing that the municipality is competent under such laws to engage
in the business of development, transmitting, utilizing, or distributing
power).
(5) The proposed term of the requested permit is (period not to
exceed 36 months).
(6) If there is any existing dam or other project facility, the
applicant must provide the name and address of the owner of the dam and
facility. If the dam is federally owned or operated, provide the name
of the agency.
(b) Exhibit 1 must contain a description of the proposed project,
specifying and including, to the extent possible:
(1) The number, physical composition, dimensions, general
configuration and, where applicable, age and condition, of any dams,
spillways, penstocks, powerhouses, tailraces, or other structures,
whether existing or proposed, that would be part of the project;
(2) The estimated number, surface area, storage capacity, and normal
maximum surface elevation (mean sea level) of any reservoirs, whether
existing or proposed, that would be part of the project;
(3) The estimated number, length, voltage, interconnections, and,
where applicable, age and condition, of any primary transmission lines
whether existing or proposed, that would be part of the project (see 16
U.S.C. 796(11));
(4) The total estimated average annual energy production and
installed capacity (provide only one energy and capacity value), the
hydraulic head for estimating capacity and energy output, and the
estimated number, rated capacity, and, where applicable, the age and
condition, of any turbines and generators, whether existing or proposed,
that would be part of the project works;
(5) All lands of the United States that are enclosed within the
proposed project boundary described under paragraph (e)(3) of this
section, identified and tabulated on a separate sheet by legal
subdivisions of a public land survey of the affected area, if available;
and
(6) Any other information demonstrating in what manner the proposed
project would develop, conserve, and utilize in the public interest the
water resources of the region.
(c) Exhibit 2 is a description of studies conducted or to be
conducted with respect to the proposed project, including field studies.
Exhibit 2 must supply the following information:
(1) General requirement. For any proposed project, a study plan
containing a description of:
(i) Any studies, investigations, tests, or surveys that are proposed
to be carried out, and any that have already taken place, for the
purposes of determining the technical, economic, and financial
feasibility of the proposed project, taking into consideration its
environmental impacts, and of preparing an application for a license for
the project; and
(ii) The approximate locations and nature of any new roads that would
be built for the purpose of conducting the studies; and
(2) Work plan for new dam construction. For any development within
the project that would entail new dam construction, a work plan and
schedule containing:
(i) A description, including the approximate location, of any field
study, test, or other activity that may alter or disturb lands or waters
in the vicinity of the proposed project, including floodplains and
wetlands; measures that would be taken to minimize any such
disturbance; and measures that would be taken to restore the altered or
disturbed areas; and
(ii) A proposed schedule (a chart or graph may be used), the total
duration of which does not exceed the proposed term of the permit,
showing the intervals at which the studies, investigations, tests, and
surveys, identified under this paragraph are proposed to be completed.
(iii) For purposes of this paragraph, new dam construction means any
dam construction the studies for which would require test pits, borings,
or other foundation exploration in the field.
(3) Waiver. The Commission may waive the requirements of paragraph
(c)(2) pursuant to 385.207 of this chapter, upon a showing by the
applicant that the field studies, tests, and other activities to be
conducted under the permit would not adversely affect cultural resources
or endangered species and would cause only minor alterations or
disturbances of lands and waters, and that any land altered or disturbed
would be adequately restored.
(d) Exhibit 3 must contain a statement of costs and financing,
specifying and including, to the extent possible:
(1) The estimated costs of carrying out or preparing the studies,
investigations, tests, surveys, maps, plans or specifications identified
under paragraph (c) of this section;
(2) The expected sources and extent of financing available to the
applicant to carry out or prepare the studies, investigations, tests,
surveys, maps, plans, or specifications identified under paragraph (c)
of this section; and
(3) A description of the proposed market for the power generated at
the project, including:
(i) The identity of the proposed purchaser(s) of the power, and any
information that is available concerning the revenues to be derived from
the sale of the power; or
(ii) If the applicant proposes to utilize the power output, the size
of the applicant's power system, system peak demand and annual energy
requirements, and the number of customers served by the applicant.
(e) Exhibit 4 must include a map or series of maps, to be prepared on
United States Geological Survey topographic quadrangle sheets or similar
topographic maps of a State agency, if available. The maps need not
conform to the precise specifications of 4.39 (a) and (b). If the
scale of any base map is not sufficient to show clearly and legibly all
of the information required by this paragraph, the maps submitted must
be enlarged to a scale that is adequate for that purpose. (If Exhibit 4
comprises a series of maps, it must also include an index sheet showing,
by outline, the parts of the entire project covered by each map of the
series.) The maps must show:
(1) The location of the project as a whole with reference to the
affected stream or other body of water and, if possible, to a nearby
town or any permanent monuments or objects that can be noted on the maps
and recognized in the field;
(2) The relative locations and physical interrelationships of the
principal project features identified under paragraph (b) of this
section;
(3) A proposed boundary for the project, enclosing:
(i) All principal project features identified under paragraph (b) of
this section, including but not limited to any dam, reservoir, water
conveyance facilities, powerplant, transmission lines, and other
appurtenances; if the project is located at an existing Federal dam,
the Federal dam and impoundment must be shown, but may not be included
within the project boundary;
(ii) Any non-Federal lands and any public lands or reservations of
the United States (see 16 U.S.C. 796 (1) and (2)) necessary for the
purposes of the project. To the extent that those public lands or
reservations are covered by a public land survey, the project boundary
must enclose each of and only the smallest legal subdivisions
(quarter-quarter section, lots, or other subdivisions, identified on the
map by subdivision) that may be occupied in whole or in part by the
project.
(4) Areas within or in the vicinity of the proposed project boundary
which are included in or have been designated for study for inclusion in
the National Wild and Scenic Rivers System; and
(5) Areas within the project boundary that, under the provisions of
the Wilderness Act, have been:
(i) Designated as wilderness area;
(ii) Recommended for designation as wilderness area; or
(iii) Designated as wilderness study area.
(Federal Power Act, as amended, 16 U.S.C. 792-828c (1976);
Department of Energy Organization Act, 42 U.S.C. 7101-7352 (Supp. IV
1980); E.O. 12009, 3 CFR part 142 (1978); 5 U.S.C. 553 (Supp. IV
1980))
(Order 54, 44 FR 61336, Oct. 25, 1979, as amended by Order 123, 46 FR
9029, Jan. 28, 1981; 46 FR 11811, Feb. 11, 1981; Order 225, 47 FR
19056, May 3, 1982; Order 413, 50 FR 11685, Mar. 25, 1985)
18 CFR 4.82 Amendments.
(a) Any permittee may file an application for amendment of its
permit, including any extension of the term of the permit that would not
cause the total term to exceed three years. (Transfer of a permit is
prohibited by section 5 of the Federal Power Act.) Each application for
amendment of a permit must conform to any relevant requirements of 4.81
(b), (c), (d), and (e).
(b) If an application for amendment of a preliminary permit requests
any material change in the proposed project, public notice of the
application will be issued as required in 4.32(d)(2)(i).
(c) If an application to extend the term of a permit is submitted not
less than 30 days prior to the termination of the permit, the permit
term will be automatically extended (not to exceed a total term for the
permit of three years) until the Commission acts on the application for
an extension. The Commission will not accept extension requests that
are filed less than 30 days prior to the termination of the permit.
(Order 413, 50 FR 11685, Mar. 25, 1985, as amended by Order 499, 53
FR 27002, July 18, 1988)
18 CFR 4.83 Cancellation and loss of priority.
(a) The Commission may cancel a preliminary permit after notice and
opportunity for hearing if the permittee fails to comply with the
specific terms and conditions of the permit. The Commission may also
cancel a permit for other good cause shown after notice and opportunity
for hearing. Cancellation of a permit will result in loss of the
permittee's priority of application for a license for the proposed
project.
(b) Failure of a permittee to file an acceptable application for a
license before the permit expires will result in loss of the permittee's
priority of application for a license for the proposed project.
(Order 413, 50 FR 11686, Mar. 25, 1985)
18 CFR 4.84 Surrender of permit.
A permittee must submit a petition to the Commission before the
permittee may voluntarily surrender its permit. Unless the Commission
issues an order to the contrary, the permit will remain in effect
through the thirtieth day after the Commission issues a public notice of
receipt of the petition.
(Order 413, 50 FR 11686, Mar. 25, 1985)
18 CFR 4.84 Subpart J -- Exemption of Small Conduit Hydroelectric Facilities
18 CFR 4.90 Applicability and purpose.
This subpart implements section 30 of the Federal Power Act and
provides procedures for obtaining an exemption for constructed or
unconstructed small conduit hydroelectric facilities, as defined in
4.30(b)(26), from all or part of the requirements of Part I of the
Federal Power Act, including licensing, and the regulations issued under
Part I.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11686, Mar. 25, 1985)
4.91 (Reserved)
18 CFR 4.92 Contents of exemption application.
(a) An application for exemption for this subpart must include:
(1) An introductory statement, including a declaration that the
facility for which application is made meets the requirements of
4.30(b)(26), the facility qualifies but for the discharge requirement of
4.30(b)(26)(v), the introductory statement must identify that fact and
state that the application is accompanied by a petition for waiver of
4.30(b)(26)(v), filed pursuant to 385.207 of this chapter);
(2) Exhibits A, B, E, and G;
(3) An appendix containing documentary evidence showing that the
applicant has the real property interests required under 4.31(b); and
(4) Identification of all Indian tribes that may be affected by the
project.
(b) Introductory Statement. The introductory statement must be set
forth in the following format:
(Name of applicant) applies to the Federal Energy Regulatory
Commission for an exemption for the (name of facility), a small conduit
hydroelectric facility that meets the requirements of (insert the
following language, as appropriate: '' 4.30(b)(26) of this subpart'' or
'' 4.30(b)(26) of this subpart, except paragraph (b)(26)(v)''), from
certain provisions of Part I of the Federal Power Act.
The location of the facility is:
State or Territory:
County:
Township or nearby town:
The exact name and business address of each applicant is:
--
The exact name and business address of each person authorized to act
as agent for the applicant in this application is:
--
(Name of applicant) is (a citizen of the United States, an
association of citizens of the United States, a municipality, State, or
a corporation incorporated under the laws of (specify the United States
or the state of incorporation, as appropriate), as appropriate).
The provisions of Part I of the Federal Power Act for which exemption
is requested are:
(List here all sections or subsections for which exemption is
requested.)
(If the facility does not meet the requirement of 4.30(b)(26)(v),
add the following sentence: ''This application is accompanied by a
petition for waiver of 4.30(b)(26)(v), submitted pursuant to 18 CFR
385.207.'')
(c) Exhibit A. Exhibit A must describe the small conduit
hydroelectric facility and proposed mode of operation with appropriate
references to Exhibits B and G. To the extent feasible the information
in this exhibit may be submitted in tabular form. The following
information must be included:
(1) A brief description of any conduits and associated consumptive
water supply facilities, intake facilities, powerhouses, and any other
structures associated with the facility.
(2) The proximate natural sources of water that supply the related
conduit.
(3) The purposes for which the conduit is used.
(4) The number of generating units, including auxiliary units, the
capacity of each unit, and provisions, if any, for future units.
(5) The type of each hydraulic turbine.
(6) A description of how the plant is to be operated, manually or
automatically, and whether the plant is to be used for peaking.
(7) Estimations of:
(i) The average annual generation in kilowatt hours;
(ii) The average head of the plant;
(iii) The hydraulic capacity of the plant (flow through the plant) in
cubic feet per second;
(iv) The average flow of the conduit at the plant or point of
diversion (using best available data and explaining the sources of the
data and the method of calculation); and
(v) The average amount of the flow described in paragraph (c)(7)(iv)
of this section available for power generation.
(8) The planned date for beginning construction of the facility.
(9) If the hydroelectric facility discharges directly into a natural
body of water and a petition for waiver of 4.30(b)(26)(v) has not been
submitted, evidence that a quantity of water equal to or greater than
the quantity discharged from the hydroelectric facility is withdrawn
from that water body downstream into a conduit that is part of the same
water supply system as the conduit on which the hydroelectric facility
is located.
(10) If the hydroelectric facility discharges directly to a point of
agricultural, municipal, or industrial consumption, a description of the
nature and location of that point of consumption.
(11) A description of the nature and extent of any construction of a
dam that would occur in association with construction of the proposed
small conduit hydroelectric facility, including a statement of the
normal maximum surface area and normal maximum surface elevation of any
existing impoundment before and after that construction; and any
evidence that the construction would occur for agricultural, municipal,
or industrial consumptive purposes even if hydroelectric generating
facilities were not installed.
(d) Exhibit B. Exhibit B is a general location map that must show
the following information:
(1) The physical structures of the small conduit hydroelectric
facility in relation to the conduit and any dam to which any of these
structures is attached;
(2) A proposed project boundary enclosing all project works to be
exempted from licensing; and
(3) The ownership of the parcels of land within the proposed boundary
for the small conduit hydroelectric facility.
(e) Exhibit E. This exhibit is an Environmental Report. It must be
prepared pursuant to 4.38 and must include the following information,
commensurate with the scope and environmental impact of the facility's
construction and operation:
(1) A description of the environmental setting in the vicinity of the
facility, including vegetative cover, fish and wildlife resources, water
quality and quantity, land and water uses, recreational use,
socio-economic conditions, historical and archeological resources, and
visual resources. The report must give special attention to endangered
or threatened plant and animal species, critical habitats, and sites
eligible for or included on the National Register of Historic Places.
The applicant may obtain assistance in the preparation of this
information from State natural resources agencies, the State historic
preservation officer, and from local offices of Federal natural
resources agencies.
(2) A description of the expected environmental impacts resulting
from the continued operation of an existing small conduit hydroelectric
facility, or from the construction and operation of a proposed small
conduit hydroelectric facility, including a discussion of the specific
measures proposed by the applicant and others to protect and enhance
environmental resources and to mitigate adverse impacts of the facility
on them.
(3) A description of alternative means of obtaining an amount of
power equivalent to that provided by the proposed or existing facility.
(4) Any additional information the applicant considers important.
(f) Exhibit G. Exhibit G is a set of drawings showing the structures
and equipment of the small conduit hydroelectric facility. The drawings
must include plan, elevation, profile, section views of the power plant,
and any other principal facility structure and of any dam to which a
facility structure is attached. Each drawing must be an ink drawing or
a drawing of similar quality on a sheet no smaller than eight and
one-half inches by eleven inches, with a scale no smaller than one inch
equals 50 feet for plans and profiles and one inch equals 10 feet for
sections. Generating and auxiliary equipment must be clearly and simply
depicted and described. For purposes of this subpart, these drawing
specifications replace those required in 4.39 of the Commission's
regulations.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11686, Mar. 25, 1985; Order 533, 56 FR 23153, May 20, 1991)
18 CFR 4.93 Action on exemption applications.
(a) An application for exemption that does not meet the eligibility
requirements of 4.30(b)(26)(v) may be accepted, provided the
application has been accompanied by a request for waiver under
4.92(a)(1) and the waiver request has not been denied. Acceptance of an
application that has been accompanied by a request for waiver under
4.92(a)(1) does not constitute a ruling on the waiver request, unless
expressly stated in the acceptance.
(b) The Commission will circulate a notice of application for
exemption to interested agencies and Indian tribes at the time the
applicant is notified that the application is accepted for filing.
(c) In granting an exemption the Commission may prescribe terms or
conditions in addition to those set forth in 4.94, in order to:
(1) Protect the quality or quantity of the related water supply for
agricultural, municipal, or industrial consumption;
(2) Otherwise protect life, health, or property;
(3) Avoid or mitigate adverse environmental impact; or
(4) Conserve, develop, or utilize in the public interest the water
power resources of the region.
(d) Conversion to license application. (1) If an application for
exemption under this subpart is denied by the Commission, the applicant
may convert the exemption application into an application for license
for the hydroelectric project.
(2) The applicant must provide the Commission with written
notification, within 30 days after the date of issuance of the order
denying exemption, that it intends to convert the exemption application
into a license application. The applicant must submit to the
Commission, no later than 90 days after the date of issuance of the
order denying exemption, additional information that is necessary to
conform the exemption application to the relevant regulations for a
license application.
(3) If all the information timely submitted is found sufficient,
together with the application for exemption, to conform to the relevant
regulations for a license application, the converted application will be
considered accepted for filing as of the date that the exemption
application was accepted for filing.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11687, Mar. 25, 1985; Order 533, 56 FR 23153, May 20, 1991)
18 CFR 4.94 Standard terms and conditions of exemption.
Any exemption granted under 4.93 for a small conduit hydroelectric
facility is subject to the following standard terms and conditions:
(a) Article 1. The Commission reserves the right to conduct
investigations under sections 4(g), 306, 307, and 311 of the Federal
Power Act with respect to any acts, complaints, facts, conditions,
practices, or other matters related to the construction, operation, or
maintenance of the exempt facility. If any term or condition of the
exemption is violated, the Commission may revoke the exemption, issue a
suitable order under section 4(g) of the Federal Power Act, or take
appropriate action for enforcement, forfeiture, or penalties under Part
III of the Federal Power Act.
(b) Article 2. The construction, operation, and maintenance of the
exempt project must comply with any terms and conditions that the United
States Fish and Wildlife Service, the National Marine Fisheries Service,
and any state fish and wildlife agencies have determined are appropriate
to prevent loss of, or damage to, fish or wildlife resources or
otherwise to carry out the purposes of the Fish and Wildlife
Coordination Act, as specified in exhibit E of the application for
exemption from licensing or in the comments submitted in response to the
notice of exemption application.
(c) Article 3. The Commission may revoke this exemption if actual
construction of any proposed generating facilities has not begun within
two years or has not been completed within four years from the effective
date of this exemption. If an exemption is revoked under this article,
the Commission will not accept from the prior exemption holder a
subsequent application for exemption from licensing or a notice of
exemption from licensing for the same project within two years of the
revocation.
(d) Article 4. In order to best develop, conserve, and utilize in
the public interest the water resources of the region, the Commission
may require that the exempt facilities be modified in structure or
operation or may revoke this exemption.
(e) Article 5. The Commission may revoke this exemption if, in the
application process, material discrepancies, inaccuracies, or falsehoods
were made by or on behalf of the applicant.
(f) Article 6. Before transferring any property interests in the
exempt project, the exemption holder must inform the transferee of the
terms and conditions of the exemption. Within 30 days of transferring
the property interests, the exemption holder must inform the Commission
of the identity and address of the transferee.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11687, Mar. 25, 1985; Order 413-A, 56 FR 31331, July 10, 1991)
18 CFR 4.95 Surrender of exemption.
(a) To voluntarily surrender its exemption, a holder of an exemption
for a small conduit hydroelectric facility must file a petition with the
Commission.
(b)(1) If construction has begun, prior to filing a petition with the
Commission, the exemption holder must consult with the fish and wildlife
agencies in accordance with 4.38, substituting for the information
required under 4.38(b)(1) information appropriate to the disposition
and restoration of the project works and lands. The petition must set
forth the exemption holder's plans with respect to disposition and
restoration of the project works and lands.
(2) If construction has begun, public notice of the petition will be
given, and, at least 30 days thereafter, the Commission will act upon
the petition.
(c) If no construction has begun, unless the Commission issues an
order to the contrary, the exemption will remain in effect through the
thirtieth day after the Commission issues a public notice of receipt of
the petition. New applications involving the site of the surrendered
exemption may be filed on the next business day.
(d) Exemptions may be surrendered only upon fulfillment by the
exemption holder of such obligations under the exemption as the
Commission may prescribe and, if construction has begun, upon such
conditions with respect to the disposition of such project works and
restoration of project lands as may be determined by the Commission and
the Federal and state fish and wildlife agencies.
(Order 413, 50 FR 11687, Mar. 25, 1985)
18 CFR 4.96 Amendment of exemption.
(a) An exemption holder must construct and operate its project as
described in the exemption application approved by the Commission or its
delegate.
(b) If an exemption holder desires to change the design, location,
method of construction or operation of its project, it must first notify
the appropriate Federal and state fish and wildlife agencies and inform
them in writing of the changes it intends to implement. If these
agencies determine that the changes would not cause the project to
violate the terms and conditions imposed by the agencies, and if the
changes would not materially alter the design, location, method of
construction or operation of the project, the exemption holder may
implement the changes. If any of these agencies determines that the
changes would cause the project to violate the terms and conditions
imposed by the agencies, or if the changes would materially alter the
design, location, method of construction or the operation of the project
works, the exemption holder may not implement the changes without first
acquiring authorization from the Commission to amend its exemption, or
acquiring a license that authorizes the project, as changed.
(c) An application to amend an exemption may be filed only by the
holder of the exemption. An application to amend an exemption will be
governed by the Commission's regulations governing applications for
exemption. The Commission will not accept applications in competition
with an application to amend an exemption, unless the Director of the
Office of Hydropower Licensing determines that it is in the public
interest to do so.
(Order 413, 50 FR 11687, Mar. 25, 1985)
18 CFR 4.96 Subpart K -- Exemption of Small Hydroelectric Power Projects of 5 Megawatts or Less
18 CFR 4.101 Applicability.
This subpart provides procedures for exemption on a case-specific
basis from all or part of Part I of the Federal Power Act (Act),
including licensing, for small hydroelectric power projects as defined
in 4.30(b)(27).
(Energy Security Act of 1980, Pub. L. 96-294, 94 Stat. 611; Federal
Power Act, as amended (16 U.S.C. 792-828c); Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601-2645); and the Department of
Energy Organization Act (42 U.S.C. 7101-7352); E.O. 12009, 3 CFR 142
(1978))
(Order 202, 47 FR 4243, Jan. 29, 1982, as amended by Order 413, 50 FR
11687, Mar. 25, 1985; Order 482, 52 FR 39630, Oct. 23, 1987)
18 CFR 4.102 Surrender of exemption.
(a) To voluntarily surrender its exemption, a holder of an exemption
for a small hydroelectric power project must file a petition with the
Commission.
(b)(1) If construction has begun, prior to filing a petition with the
Commission, the exemption holder must consult with the fish and wildlife
agencies in accordance with 4.38, substituting for the information
required under 4.38(b)(1) information appropriate to the disposition
and restoration of the project works and lands. The petition must set
forth the exemption holder's plans with respect to disposition and
restoration of the project works and lands.
(2) If construction has begun, public notice of the petition will be
given, and, at least 30 days thereafter, the Commission will act upon
the petition. New applications involving the site may be filed on the
next business day.
(c) If no construction had begun, unless the Commission issues an
order to the contrary, the surrender will take effect at the close of
the thirtieth day after the Commission issues a public notice of receipt
of the petition. New applications involving the site may be filed on
the next business day.
(d) Exemptions may be surrendered only upon fulfillment by the
exemption holder of such obligations under the exemption as the
Commission may prescribe and, if construction has begun, upon such
conditions with respect to the disposition of such project works and
restoration of project lands as may be determined by the Commission and
the Federal and state fish and wildlife agencies.
(e) Where occupancy of United States lands or reservations has been
permitted by a Federal agency having supervision over such lands, the
exemption holder must concurrently notify that agency of the petition to
surrender and of the steps that will be taken to restore the affected
U.S. lands or reservations.
(Order 413, 50 FR 11688, Mar. 25, 1985)
18 CFR 4.103 General provisions for case-specific exemption.
(a) Exemptible projects. Subject to the provisions in paragraph (b)
of this section, 4.31(c), and 4.105 and 4.106, the Commission may
exempt on a case-specific basis any small hydroelectric power project
from all or part of Part I of the Act, including licensing requirements.
Any applications for exemption for a project shall conform to the
requirements of 4.107 or 4.108, as applicable.
(b) Limitation for licensed water power project. The Commission will
not accept for filing an application for exemption from licensing for
any project that is only part of a licensed water power project.
(c) Waiver. In applying for case-specific exemption from licensing,
a qualified exemption applicant may petition under 385.207 of this
chapter for waiver of any specific provision of 4.102 through 4.107.
The Commission will grant a waiver only if consistent with section 408
of the Energy Security Act of 1980.
(Order 413, 50 FR 11688, Mar. 25, 1985, as amended by Order 503, 53
FR 36568, Sept. 21, 1988)
18 CFR 4.104 Amendment of exemption.
(a) An exemption holder must construct and operate its project as
described in the exemption application approved by the Commission or its
delegate.
(b) If an exemption holder desires to change the design, location,
method of construction or operation of its project, it must first notify
the appropriate Federal and state fish and wildlife agencies and inform
them in writing of the changes it intends to implement. If these
agencies determine that the changes would not cause the project to
violate the terms and conditions imposed by the agencies, and if the
changes would not materially alter the design, location, method of
construction or operation of the project, the exemption holder may
implement the changes. If any of these agencies determines that the
changes would cause the project to violate the terms and conditions
imposed by that agency, or if the changes would materially alter the
design, location, method of construction or the operation of the project
works, the exemption holder may not implement the changes without first
acquiring authorization from the Commission to amend its exemption or
acquiring a license for the project works that authorizes the project,
as changed.
(c) An application to amend an exemption may be filed only by the
holder of an exemption. An application to amend an exemption will be
governed by the Commission's regulations governing applications for
exemption. The Commission will not accept applications in competition
with an application to amend an exemption, unless the Director of the
Office of Hydropower Licensing determines that it is in the public
interest to do so.
(Order 413, 50 FR 11688, Mar. 25, 1985)
18 CFR 4.105 Action on exemption applications.
(a) Exemption from provisions other than licensing. An application
for exemption of a small hydroelectric power project from provisions of
Part I of the Act other than the licensing requirement will be processed
and considered as part of the related application for license or
amendment of license.
(b)(1) Consultation. The Commission will circulate a notice of
application for exemption from licensing to interested agencies and
Indian tribes at the time the applicant is notified that the application
is accepted for filing.
(2) Non-standard terms and conditions. In approving any application
for exemption from licensing, the Commission may prescribe terms or
conditions in addition to those set forth in 4.106 in order to:
(i) Protect the quality or quantity of the related water supply;
(ii) Otherwise protect life, health, or property;
(iii) Avoid or mitigate adverse environmental impact; or
(iv) Better conserve, develop, or utilize in the public interest the
water resouces of the region.
(Energy Security Act of 1980, Pub. L. 96-294, 94 Stat. 611; Federal
Power Act, as amended (16 U.S.C. 792-828c); Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601-2645); and the Department of
Energy Organization Act (42 U.S.C. 7101-7352); E.O. 12009, 3 CFR 142
(1978))
(Order 106, 45 FR 76123, Nov. 18, 1980, as amended by Order 202, 47
FR 4246, Jan. 29, 1982; Order 413, 50 FR 11688, Mar. 25, 1985; Order
533, 56 FR 23154, May 20, 1991)
18 CFR 4.106 Standard terms and conditions of case-specific exemption
from licensing.
Any case-specific exemption from licensing granted for a small
hydroelectric power project is subject to the following standard terms
and conditions:
(a) Article 1. The Commission reserves the right to conduct
investigations under sections 4(g), 306, 307, and 311 of the Federal
Power Act with respect to any acts, complaints, facts, conditions,
practices, or other matters related to the construction, operation, or
maintenance of the exempt project. If any term or condition of the
exemption is violated, the Commission may revoke the exemption, issue a
suitable order under section 4(g) of the Federal Power Act, or take
appropriate action for enforcement, forfeiture, or penalties under Part
III of the Federal Power Act.
(b) Article 2. The construction, operation, and maintenance of the
exempt project must comply with any terms and conditions that the United
States Fish and Wildlife Service, the National Marine Fisheries Service,
and any state fish and wildlife agencies have determined are appropriate
to prevent loss of, or damage to, fish or wildlife resources or
otherwise to carry out the purposes of the Fish and Wildlife
Coordination Act, as specified in exhibit E of the application for
exemption from licensing or in the comments submitted in response to the
notice of exemption application.
(c) Article 3. The Commission may revoke this exemption if actual
construction of any proposed generating facilities has not begun within
two years or has not been completed within four years from the date on
which this exemption was granted. If an exemption is revoked under this
article, the Commission will not accept from the prior exemption holder
a subsequent application for exemption from licensing for the same
project within two years of the revocation.
(d) Article 4. This exemption is subject to the navigation servitude
of the United States if the project is located on navigable waters of
the United States.
(e) Article 5. This exemption does not confer any right to use or
occupy any Federal lands that may be necessary for the development or
operation of the project. Any right to use or occupy any Federal lands
for those purposes must be obtained from the administering Federal land
agencies. The Commission may accept a license application submitted by
any qualified license applicant and revoke this exemption, if any
necessary right to use or occupy Federal lands for those purposes has
not been obtained within one year from the date on which this exemption
was granted.
(f) Article 6. In order to best develop, conserve, and utilize in
the public interest the water resources of the region, the Commission
may require that the exempt facilities be modified in structure or
operation or may revoke this exemption.
(g) Article 7. The Commission may revoke this exemption if, in the
application process, material discrepancies, inaccuracies, or falsehoods
were made by or on behalf of the applicant.
(h) Article 8. Any exempted small hydroelectric power project that
utilizes a dam that is more than 33 feet in height above streambed, as
defined in 18 CFR 12.31(c) of this chapter, impounds more than 2,000
acre-feet of water, or has a significant or high hazard potential, as
defined in 33 CFR part 222, is subject to the following provisions of 18
CFR part 12, as it may be amended:
(1) Section 12.4(b)(1) (i) and (ii), (b)(2) (i) and (iii), (b)(iv),
and (b)(v);
(2) Section 12.4(c);
(3) Section 12.5;
(4) Subpart C; and
(5) Subpart D.
For the purposes of applying these provisions of 18 CFR part 12, the
exempted project is deemed to be a licensed project development and the
owner of the exempted project is deemed to be a licensee.
(i) Before transferring any property interests in the exempt project,
the exemption holder must inform the transferee of the terms and
conditions of the exemption. Within 30 days of transferring the
property interests, the exemption holder must inform the Commission of
the identity and address of the transferee.
(Order 106, 45 FR 76123, Nov. 18, 1980; 45 FR 77420, Nov. 24, 1980,
as amended by Order 202, 47 FR 4246, Jan. 29, 1982; Order 413, 50 FR
11688, Mar. 25, 1985; Order 482, 52 FR 39630, Oct. 23, 1987; Ordr
413-A, 56 FR 31331, July 10, 1991)
18 CFR 4.107 Contents of application for exemption from licensing.
(a) General requirements. An application for exemption from
licensing submitted under this subpart must contain the introductory
statement, the exhibits described in this section, the fee prescribed in
381.601 of this chapter and, if the project structures would use or
occupy any lands other than Federal lands, an appendix containing
documentary evidence showing that applicant has the real property
interests required under 4.31(c)(2)(ii).The applicant must identify in
its application all Indian tribes that may be affected by the project.
(b) Introductory statement. The application must include an
introductory statement that conforms to the following format:
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for an exemption for (name of project), a small hydroelectric
power project that is proposed to have an installed capacity of 5
megawatts or less, from licensuing under the Federal Power Act. (If
applicable: The project is currently licensed as FERC Project No. - --
.)
(2) The location of the project is:
(State or territory)
(County)
(Township or nearby town)
(Stream or body of water)
(3) The exact name and business address of each applicant are:
(4) The exact name and business address of each person authorized to
act as agent for the applicant in this application are:
(5) (Name of applicant) is (specify, as appropriate: a citizen of
the United States or other identified nation; an association of
citizens of the United States or other identified nation; a
municipality; a state; or a corporation incorporated under the laws of
(specify the United States or the state or nation of incorporation, as
appropriate).)
(c) Exhibit A. Exhibit A must describe the small hydroelectric power
project and its proposed mode of operation. To the extent feasible, the
information in this exhibit may be submitted in tabular form. The
applicant must submit the following information:
(1) A brief description of any existing dam and impoundment proposed
to be utilized by the small hydroelectric power project and any other
existing or proposed project works and appurtenant facilities, including
intake facilities, diversion structures, powerhouses, primary
transmission lines, penstocks, pipelines, spillways, and other
structures, and the sizes, capacities, and construction materials of
those structures.
(2) The number of existing and proposed generating units at the
project, including auxiliary units, the capacity of each unit, any
provisions for future units, and a brief description of any plans for
retirement or rehabilitation of existing generating units.
(3) The type of each hydraulic turbine of the small hydroelectric
power project.
(4) A description of how the power plant is to be operated, that is,
run-of-river or peaking.
(5) A graph showing a flow duration curve for the project. Identify
stream gauge(s) and period of record used. If a synthetic record is
utilized, provide details concerning its derivation. Furnish
justification for selection of installed capacity if the hydraulic
capacity of proposed generating unit(s) plus the minimum flow
requirements, if not usable for power production, is less than the
stream flow that is exceeded 25 percent of the time.
(6) Estimations of:
(i) The average annual generation in kilowatt-hours;
(ii) The average and design head of the power plant;
(iii) The hydraulic capacity of each turbine of the power plant (flow
through the plant) in cubic feet per second;
(iv) The number of surface acres of the man-made or natural
impoundment used, if any, at its normal maximum surface elevation and
its net and gross storage capacities in acre-feet.
(7) The planned date for beginning and completing the proposed
construction or development of generating facilities.
(8) A description of the nature and extent of any repair,
reconstruction, or other modification of a dam that would occur in
association with construction or development of the proposed small
hydroelectric power project, including a statement of the normal maximum
surface area and normal maximum surface elevation of any existing
impoundment before and after construction.
(d) Exhibit B. Exhibit B is a general location map, which may be
prepared on United States Geological Survey topographic quadrangle
sheets or similar topographic maps of a state agency, enlarged, if
necessary, to show clearly and legibly all of the information required
by this paragraph. The map must show the following information:
(1) The location of the existing and proposed physical structures of
the small hydroelectric power project, including any dam or diversion
structure, reservoir or impoundment, penstocks, pipelines, power plants,
access roads, transmission lines, and other important features.
(2) The relationship of the project structures to the stream or other
body of water on which the project is located and to the nearest town or
other permanent objects that can be readily recognized in the field.
(3) A description of who owns or otherwise has real property
interests in any tract of land occupied by the small hydroelectric power
project or the structures to which it is directly connected.
(4) A proposed project boundary enclosing project works to be
exempted from licensing.
(e) Exhibit E. This exhibit is an environmental report that must
include the following information, commensurate with the scope and
environmental impact of the construction and operation of the small
hydroelectric power project. See 4.38 for consultation requirements.
(1) A description of the environmental setting of the project,
including vegetative cover, fish and wildlife resources, water quality
and quantity, land and water uses, recreational uses, historical and
archeological resources, and scenic and aesthetic resources. The report
must list any endangered or threatened plant and animal species, any
critical habitats, and any sites eligible for or included on the
National Register of Historic Places. The applicant may obtain
assistance in the preparation of this information from state natural
resources agencies, the state historic preservation officer, and from
local offices of Federal natural resources agencies.
(2) A description of the expected environmental impacts from the
proposed construction or development and the proposed operation of the
small hydroelectric power project, including any impacts from any
proposed changes in the capacity and mode of operation of the project if
it is already generating electric power, and an explanation of the
specific measures proposed by the applicant, the agencies consulted, and
others to protect and enhance environmental resources and values and to
mitigate adverse impacts of the project on such resources.
(3) Any additional information the applicant considers important.
(f) Exhibit G. Exhibit G is a set of drawings showing the structures
and equipment, that is, the proposed and existing project works, of the
small hydroelectric power project. The drawings must include plan,
elevation, and section views of the power plant, any existing dam or
diversion structure, and any other principal structure of the project.
(Order 106, 45 FR 76123, Nov. 18, 1980, as amended by Order 225, 47
FR 19056, May 3, 1982; Order 413, 50 FR 11689, Mar. 25, 1985; Order
494, 53 FR 15381, Apr. 29, 1988; Order 533, 56 FR 23154, May 20, 1991)
18 CFR 4.108 Contents of application for exemption from provisions
other than licensing.
An application for exemption of a small hydroelectric power project
from provisions of Part I of the Act other than the licensing
requirement need not be prepared according to any specific format, but
must be included as an identified appendix to the related application
for license or amendment of license. The application for exemption must
list all sections or subsections of Part I of the Act for which
exemption is requested.
(Order 106, 45 FR 76123, Nov. 18, 1980)
18 CFR 4.108 Subpart L -- Application for Amendment of License
18 CFR 4.200 Applicability.
This part applies to any application for amendment of a license, if
the applicant seeks to:
(a) Make a change in the physical features of the project or its
boundary, or make an addition, betterment, abandonment, or conversion,
of such character as to constitute an alteration of the license;
(b) Make a change in the plans for the project under license; or
(c) Extend the time fixed on the license for commencement or
completion of project works.
(Order 184, 46 FR 55943, Nov. 13, 1981)
18 CFR 4.201 Contents of application.
An application for amendment of a license for a water power project
must contain the following information in the form specified.
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for an amendment of license for the (name of project) water
power project.
(2) The exact name, business address, and telephone number of the
applicant are:
-- -- --
(3) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
state, as appropriate, see 16 U.S.C. 796), licensee for the water power
project, designated as Project No. ------ in the records of the Federal
Energy Regulatory Commission, issued on the ------ day of ---------- ,
19 ---- .
(4) The amendments of license proposed and the reason(s) why the
proposed changes are necessary, are: (Give a statement or description)
(5)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located that affect the project as proposed
with respect to bed and banks and to the appropriation, diversion, and
use of water for power purposes are: (provide citation and brief
identification of the nature of each requirement.)
(ii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
description for each law.)
(b) Required exhibits for capacity related amendments. Any
application to amend a license for a hydropower project that involves
additional capacity not previously authorized, and that would increase
the actual or proposed total installed capacity of the project, would
result in an increase in the maximum hydraulic capacity of the project
of 15 percent or more, and would result in an increase in the installed
name-plate capacity of 2 megawatts or more, must contain the following
exhibits, or revisions or additions to any exhibits on file,
commensurate with the scope of the licensed project:
(1) For amendment of a license for a water power project that, at the
time the application is filed, is not constructed and is proposed to
have a total installed generating capacity of more than 5 MW -- Exhibits
A, B, C, D, E, F, and G under 4.41 of this chapter;
(2) For amendment of a license for a water power project that, at the
time the application is filed, is not constructed and is proposed to
have a total installed generating capacity of 1.5 MW or less -- Exhibits
E, F, and G under 4.61 of this chapter;
(3) For amendment of a license for a water power project that, at the
time the application is filed, is not constructed and is proposed to
have a total installed generating capacity of 5 MW or less, but more
than 1.5 MW -- Exhibits F and G under 4.61 of this chapter, and Exhibit
E under 4.41 of this chapter;
(4) For amendment of a license for a water power project that, at the
time the application for amendment is filed, has been constructed, and
is proposed to have a total installed generating capacity of 5 MW or
less -- Exhibit E, F and G under 4.61 of this chapter;
(5) For amendment of a license for a water power project that, at the
time the application is filed, has been constructed and is proposed to
have a total installed generating capacity of more than 5 MW -- Exhibits
A, B, C, D, E, F, and G under 4.51 of this chapter.
(c) Required exhibits for non-capacity related amendments. Any
application to amend a license for a water power project that would not
be a capacity related amendment as described in paragraph (b) of this
section must contain those exhibits that require revision in light of
the nature of the proposed amendments.
(d) Consultation and waiver. (1) If an applicant for license under
this subpart believes that any exhibit required under paragraph (b) of
this section is inappropriate with respect to the particular amendment
of license sought by the applicant, a petition for waiver of the
requirement to submit such exhibit may be submitted to the Commission
under 385.207(c)(4) of this chapter, after consultation with the
Commission's Division by Hydropower Licensing.
(2) A licensee wishing to file an application for amendment of
license under this section may seek advice from the Commission staff
regarding which exhibits(s) must be submitted and whether the proposed
amendment is consistent with the scope of the existing licensed project.
(Order 184, 46 FR 55943, Nov. 13, 1981, as amended by Order 225, 47
FR 19056, May 3, 1982; 48 FR 4459, Feb. 1, 1983; 48 FR 16653, Apr. 19,
1983; Order 413, 50 FR 11689, Mar. 25, 1985; Order 533, 56 FR 23154,
May 20, 1991)
18 CFR 4.202 Alteration and extension of license.
(a) If it is determiend that approval of the application for
amendment of license would constitute a significant alteration of
license pursuant to section 6 of the Act, 16 U.S.C. 799, public notice
of such application shall be given at least 30 days prior to action upon
the application.
(b) Any application for extension of time fixed in the license for
commencement or completion of construction of project works must be
filed with the Commission not less than three months prior to the date
or dates so fixed.
(Order 184, 46 FR 55943, Nov. 13, 1981)
18 CFR 4.202 Subpart M -- Fees Under Section 30(e) of the Act
Source: Order 487, 52 FR 48404, Dec. 22, 1987, unless otherwise
noted.
18 CFR 4.300 Purpose, definitions, and applicability.
(a) Purpose. This subpart implements the amendments of section 30 of
the Federal Power Act enacted by section 7(c) of the Electric Consumers
Protection Act of 1986 (ECPA). It establishes procedures for
reimbursing fish and wildlife agencies for costs incurred in connection
with applications for an exemption from licensing and applications for
licenses seeking benefits under section 210 of the Public Utility
Regulatory Policies Act of 1978, as amended, for a project that would
impound or divert the water of a natural watercourse by means of a new
dam or diversion.
(b) Definitions. For the purposes of this subpart --
(1) Cost means an expenditure made by a fish and wildlife agency:
(i) On or after the effective date of this regulation for an
application filed on or after the effective date of this regulation;
and
(ii) Directly related to setting mandatory terms and conditions for a
proposed project pursuant to section 30(c) of the Federal Power Act.
(2) Cost statement means a statement of the total costs for which a
fish and wildlife agency requests reimbursement including an itemized
schedule of costs including, but not limited to, costs of fieldwork and
testing, contract costs, travel costs, personnel costs, and
administrative and overhead costs.
(3) Mandatory terms and conditions means terms and conditions of a
license or exemption that a fish and wildlife agency determines are
appropriate to prevent loss of, or damage to, fish and wildlife
resources pursuant to section 30(c) of the Federal Power Act.
(4) New dam or diversion license applicant means an applicant for a
license for a project that would impound or divert the water of a
natural watercourse by means of a new dam or diversion, as defined in
section 210(k) of the Public Utility Regulatory Policies Act of 1978, as
amended.
(5) PURPA benefits means benefits under section 210 of the Public
Utility Regulatory Policies Act of 1978, as amended.
(6) Section 30(c) application means an application for an exemption
from licensing or a new dam or diversion license application seeking
PURPA benefits.
(c) Applicability. Except as provided in paragraph (d) of this
section, this subpart applies to:
(1) Any application for exemption filed on or after the effective
date of these regulations for costs incurred by fish and wildlife
agencies after the effective date of these regulations;
(2) Any new dam or diversion license application seeking PURPA
benefits filed on or after April 16, 1988;
(3) Any new dam or diversion license application seeking PURPA
benefits filed after the effective date of this regulation, but before
April 16, 1988, if the applicant fails to demonstrate in a monetary
resources petition filed with the Commission pursuant to 292.208 of
this chapter that, before October 16, 1986, it had committed substantial
monetary resources directly related to the development of the proposed
project and to the diligent and timely completion of all requirements of
the Commission for filing an acceptable application; and
(4) Any new dam or diversion license application seeking PURPA
benefits filed after the effective date of this regulation, if the
application is not accepted for filing before October 16, 1989.
(d) Exceptions. (1) This subpart does not apply to any new dam or
diversion license application seeking PURPA benefits if the moratorium
described in section 8(e) of ECPA is in effect. The moratorium will end
at the expiration of the first full session of Congress following the
session during which the Commission reports to Congress on the results
of the study required under section 8(d) of ECPA.
(2) This subpart does not apply to any new dam or diversion license
application seeking PURPA benefits for a project located at a Government
dam, as defined in section 3(10) of the Federal Power Act, at which
non-Federal hydroelectric development is permissible.
18 CFR 4.301 Notice to fish and wildlife agencies and estimation of
fees prior to filing.
(a) Notice to agencies -- (1) New dam or diversion license
applicants. During the initial stage or pre-filing agency consultation
under 4.38(b)(1), a prospective new dam or diversion license applicant
must inform each fish and wildlife agency consulted in writing with a
copy to the Commission whether it will seek PURPA benefits.
(2) Exemption applicants. During the initial stage of pre-filing
agency consultation under 4.38(b)(1), a prospective exemption applicant
must notify each fish and wildlife agency consulted that it will seek an
exemption from licensing.
(b) Estimate of fees. Within the comment period provided in
4.38(b)(2)(iv), a fish and wildlife agency must provide a prospective
section 30(c) applicant with a reasonable estimate of the total costs
the agency anticipates it will incur to set mandatory terms and
conditions for the proposed project. An agency may provide an applicant
with an updated estimate as it deems necessary. If an agency believes
that its most recent estimate will be exceeded by more than 25 percent,
it must supply the prospective applicant or applicant with a new
estimate and submit a copy to the Commission.
18 CFR 4.302 Fees at filing.
(a) Filing requirement. A section 30(c) application must be
accompanied by a fee or a bond, together with copies of the most recent
cost estimates provided by fish and wildlife agencies pursuant to
4.301(b).
(b) Amount. The fee required under paragraph (a) of this section
must be in an amount equal to 50 percent of the most recent cost
estimates provided by fish and wildlife agencies pursuant to 4.301(b).
In lieu of this amount, an applicant may provide an unlimited term
surety bond from a company on the Department of Treasury's list of
companies certified to write surety bonds. Applicants bonded by a
company whose certification by the Department of the Treasury lapses
must provide evidence of purchase of another bond from a certified
company. A bond must be for an amount no less than 100 percent of the
agencies' most recent cost estimates pursuant to 4.301(b).
(c) Failure to file. The Commission will reject a section 30(c)
application if the applicant fails to comply with the provisions of
paragraphs (a) and (b) of this section.
18 CFR 4.303 Post-filing procedures.
(a) Submission of cost statement -- (1) Accepted applications.
Within 60 days after the last date for filing mandatory terms and
conditions pursuant to 4.32(c)(4) for a new dam or diversion license
application seeking PURPA benefits, 4.93(b) for an application for
exemption of a small conduit hydroelectric facility, or 4.105(b)(1) for
an application for case-specific exemption of a small hydroelectric
power project, a fish and wildlife agency must file with the Commission
a cost statement of the reasonable costs the agency incurred in setting
mandatory terms and conditions for the proposed project. An agency may
request, in writing, along with any supporting documentation an
extension of this 60-day period.
(2) Rejected, withdrawn or dismissed applications. The Director of
the Office of Hydropower Licensing (Director) will, by letter, notify
each fish and wildlife agency if a section 30(c) application is
rejected, withdrawn or dismissed. Within 60 days from the date of
notification, a fish and wildlife agency must file with the Commission a
cost statement of the reasonable costs the agency incurred prior to the
date the application was rejected, withdrawn, or dismissed. An agency
may submit a written request for an extension of this 60-day period
along with any supporting documentation.
(b) If an agency has not submitted a cost statement or extension
request within the time provided in paragraph (a)(2) of this section, it
waives its right to receive fees for that project pursuant to this
subpart.
(c) Billing. After the Commission receives a cost statement from all
fish and wildlife agencies as required by paragraph (a) of this section,
the Commission will bill the section 30(c) applicant. The bill will
show:
(1) The cost statement submitted to the Commission by each fish and
wildlife agency;
(2) Any amounts already paid by the applicant pursuant to 4.302;
and
(3)(i) The amount due, if the amount already paid by the applicant
pursuant to 4.302 is less than the total of all the cost statements;
or
(ii) The amount to be refunded to the applicant, if the amount
already paid by the applicant pursuant to 4.302 is more than the total
of all the cost statements.
(d) Within 45 days from the date of a bill issued under paragraph (b)
of this section, a section 30(c) applicant must pay in full to the
Commission any remaining amounts due on the cost statements regardless
of whether any of these amounts are in dispute.
(e) Dispute procedures -- (1) When to dispute. Any dispute regarding
the reasonableness of any fish and wildlife agency cost statement must
be made within 45 days from the date of a bill issued under paragraph
(b) of this section.
(2) Assessment of disputed cost statements The burden of showing that
an agency's cost statement is unreasonable is on the applicant.
However, a fish and wildlife agency must supply the disputing applicant
and the Commission with the documentation necessary to support its cost
statement. The Director of the Office of Hydropower Licensing will
determine the reasonableness of a disputed fish and wildlife agency cost
statement. The Director's decision will be in writing. The Director
will notify the disputing applicant and the fish and wildlife agency of
the decision by letter. Any decision of the Director may be appealed by
either party pursuant to 18 CFR 385.1902. In deciding whether or not a
disputed cost statement is reasonable, the Director will review the
application, the disputed cost statement and any other documentation
relating to the particular environmental problems associated with the
disputing applicant's proposed project. The Director will consider such
factors as:
(i) The time the fish and wildlife agency spent reviewing the
application;
(ii) The proportion of the cost statement to the time the fish and
wildlife agency spent reviewing the application;
(iii) Whether the fish and wildlife agency's expenditures conform to
Federal expenditure guidelines for such items as travel, per diem,
personnel, and contracting; and
(iv) Whether the studies conducted by the agency, if any, are
duplicative, limited to the proposed project area, unnecessary to
determine the impacts to or mitigation measures for the particular fish
and wildlife resources affected by the proposed project, or otherwise
unnecessary to set terms and conditions for the proposed project.
(3) Unreasonable cost statements. If the Director determines that a
disputed fish and wildlife agency cost statement is unreasonable, the
disputing applicant and the fish and wildlife agency will be afforded 45
days from the date of notification to attempt to reach an agreement
regarding the reimbursable costs of the agency. If the disputing
applicant and the fish and wildlife agency fail to reach an agreement on
the disputed cost statement within 45 days from the date of
notification, the Director will determine the costs that the agency
should reasonably have incurred.
(f) Refunds. (1) If the amount paid by a section 30(c) applicant
under 4.302 exceeds the total amount of the cost statements submitted
by fish and wildlife agencies under paragraph (a) of this section, the
Commission will notify the Treasury to refund the difference to the
applicant within 45 days from the date of the bill issued to the
applicant under paragraph (b) of this section.
(2) If the amount paid by a section 30(c) applicant exceeds the
amount determined to be reasonable by the Director pursuant to paragraph
(d)(2) of this section, the Commission will notify the Treasury to
refund the difference to the applicant within 45 days of the resolution
of all dispute proceedings.
18 CFR 4.304 Payment.
(a) A payment required under this subpart must be made by check
payable to the United States Treasury. The check must indicate that the
payment is for ECPA Fees.
(b) If a payment required under this subpart is not made within the
time period prescribed for making such payment, interest and penalty
charges will be assessed. Interest and penalty charges will be computed
in accordance with 31 U.S.C. 3717 and 4 CFR part 102.
(c) The Commission will not issue a license or exemption, unless the
applicant has made full payments of any fees due under 4.303(c).
18 CFR 4.305 Enforcement.
(a) The Commision may take any appropriate action permitted by law if
a section 30(c) applicant does not make a payment required under this
subpart. The Commission will not be liable to any fish and wildlife
agency for failure to collect any amounts under this subpart.
(b) If the Commission is unable to collect the full amount due by a
section 30(c) applicant on behalf of more than one agency, the amount
the Commission does collect will be distributed to the agencies on a
pro-rata basis except if an agency's cost statement is greater than its
most recent estimate to the applicant under 4.301(b), then the
difference between the estimate and the cost statement will not be
reimbursed until any amounts owed to other agencies have been paid.
18 CFR 4.305 PART 6 -- SURRENDER OR TERMINATION OF LICENSE
Sec.
6.1 Application for surrender.
6.2 Surrender of license.
6.3 Termination of license.
6.4 Termination by implied surrender.
6.5 Annual charges.
Authority: Secs. 6, 10(i), 13, 41 Stat. 1067, 1068, 1071, as
amended, sec. 309, 49 Stat. 858; 16 U.S.C. 799, 803(i), 806, 825h;
Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.), unless
otherwise noted.
18 CFR 6.1 Application for surrender.
Every application for surrender of a license shall state the reason
therefor; and, except in the case of an application for surrender of a
license for a minor project, or for a transmission line only, shall be
executed by the licensee and filed in the same form and manner as the
application for license, and shall be accompanied by the license and all
amendments thereof. Public notice of such application shall be given at
least 30 days prior to action upon the application.
(Secs. 308 and 309; 49 Stat. 858, 859 (16 U.S.C. 825g, 825h))
(Order No. 570, 42 FR 40191, Aug. 9, 1977)
Cross References: For application for license, general provisions,
see 4.30 to 4.33, inclusive, of this chapter. For application for
license for proposed major project or minor part thereof, see 4.40 to
4.42, inclusive, of this chapter. For application for license for
constructed major project or minor part thereof, see 4.50 and 4.51 of
this chapter. For forms for application for licenses, see 131.2 to
131.6, inclusive, of this chapter.
18 CFR 6.2 Surrender of license.
Licenses may be surrendered only upon the fulfillment by the licensee
of such obligations under the license as the Commission may prescribe,
and, if the project works authorized under the license have been
constructed in whole or in part, upon such conditions with respect to
the disposition of such works as may be determined by the Commission.
Where project works have been constructed on lands of the United States
the licensee will be required to restore the lands to a condition
satisfactory to the Department having supervision over such lands and
annual charges will continue until such restoration has been
satisfactorily completed.
(Order 175, 19 FR 5217, Aug. 18, 1954)
18 CFR 6.3 Termination of license.
Licenses may be terminated by written order of the Commission not
less than 90 days after notice thereof shall have been mailed to the
licensee by certified mail to the last address whereof the Commission
has been notified by the licensee, if there is failure to commence
actual construction of the project works within the time prescribed in
the license, or as extended by the Commission. Upon like notice, the
authority granted under a license with respect to any separable part of
the project works may be terminated if there is failure to begin
construction of such separable part within the time prescribed or as
extended by the Commission.
(Administrative Procedure Act, 5 U.S.C. 551-557 (1976); Federal
Power Act, as amended, 16 U.S.C. 291-628 (1976 & Supp. V 1981), Dept.
of Energy Organization Act 42 U.S.C. 7101-7352 (Supp. V 1981); E.O.
12009, 3 CFR 142 (1978))
(Order 141, 12 FR 8491, Dec. 19, 1947, as amended by Order 344, 48 FR
49010, Oct. 24, 1983)
18 CFR 6.4 Termination by implied surrender.
If any licensee holding a license subject to the provisions of
section 10(i) of the Act shall cause or suffer essential project
property to be removed or destroyed, or become unfit for use, without
replacement, or shall abandon, or shall discontinue good faith operation
of the project for a period of three years, the Commission will deem it
to be the intent of the licensee to surrender the license; and not less
than 90 days after public notice may in its discretion terminate the
license.
(Order 141, 12 FR 8491, Dec. 19, 1947)
18 CFR 6.5 Annual charges.
Annual charges arising under a license surrendered or terminated
shall continue until the effective date set forth in the Commission's
order with respect to such surrender or termination.
(Order 175, 19 FR 5217, Aug. 18, 1954)
Cross Reference: For annual charges, see part 11 of this chapter.
18 CFR 6.5 PART 8 -- RECREATIONAL OPPORTUNITIES AND DEVELOPMENT AT
LICENSED PROJECTS
Sec.
8.1 Publication of license conditions relating to recreation.
8.2 Posting of project lands as to recreational use and availability
of information.
8.3 Discrimination prohibited.
8.11 Information respecting use and development of public
recreational opportunities.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Administrative Procedure Act, 5
U.S.C. 551-557 (1983).
18 CFR 8.1 Publication of license conditions relating to recreation.
Following the issuance or amendment of a license, the licensee shall
make reasonable efforts to keep the public informed of the availability
of project lands and waters for recreational purposes, and of the
license conditions of interest to persons who may be interested in the
recreational aspects of the project or who may wish to acquire lands in
its vicinity. Such efforts shall include but not be limited to: the
publication of notice in a local newspaper once each week for 4 weeks of
the project's license conditions which relate to public access to and
the use of the project waters and lands for recreational purposes,
recreational plans, installation of recreation and fish and wildlife
facilities, reservoir water surface elevations, minimum water releases
or rates of change of water releases and such other conditions of
general public interest as the Commission may designate in the order
issuing or amending the license.
(Order 299, 30 FR 7313, June 3, 1965)
18 CFR 8.2 Posting of project lands as to recreational use and
availability of information.
(a) Following the issuance or amendment of a license, the licensee
shall post and shall maintain at all points of public access which are
required by the license (or at such access points as are specifically
designated for this purpose by the licensee) and at such other points as
are subsequently prescribed by the Commission on its own motion or upon
the recommendation of a public recreation agency operating in the area
in which the project is located, a conspicuous sign giving the name of
the project and the owner of the project, a statement that it is
licensed by the Commission and the project number, directions to the
areas of the project which are available for public recreation use,
permissible times and activities, and other regulations regarding such
use, and advising that further information may be obtained at local
offices of the licensee in the vicinity of the project. In addition,
the licensee shall post at such locations conspicuous notice that the
recreation facilities are open to all members of the public without
discrimination.
(b) The licensee shall make available for inspection at its local
offices in the vicinity of the project the recreation plan approved by
the Commission and the entire license instrument, properly indexed for
easy reference to the license conditions designated for publications in
8.1.
(Order 299, 30 FR 7313, June 3, 1965, as amended by Order 341, 32 FR
6488, Apr. 27, 1967; 32 FR 11640, Aug. 11, 1967)
18 CFR 8.3 Discrimination prohibited.
Every licensee maintaining recreation facilities for the use of the
public at a licensed project, or employing or permitting any other
person to maintain such facilities, shall permit, or require such other
person to permit, equal and unobstructed use of such facilities to all
members of the public without regard to race, color, religious creed or
national origin.
(Order 341, 32 FR 6488, Apr. 27, 1967)
18 CFR 8.11 Information respecting use and development of public
recreational opportunities.
(a) Applicability. (1) Except as provided in paragraph (b) of this
section, each licensee of a project under major or minor Commission
license shall prepare with respect to each development within such
project an original and two conformed copies of FERC Form No. 80
prescribed by 141.14 of this chapter and submit them to a Commission
Regional Office pursuant to the requirements in the General Information
portion of the form.
(2) FERC Form No. 80 is due on April 1, 1991, for data compiled
during the calendar year ending December 31, 1990. Thereafter, FERC
Form No. 80 is due on April 1 of every fourth year for data compiled
during the previous calendar year.
(3) The Form No. 80 shall be completed in its entirety for each
initial filing of the report. Filings of Form No. 80 made subsequent
to an initial filing of the report shall be completed only to the extent
necessary to change, delete or add to the information supplied in a
previously-filed form.
(4) A copy of the Form No. 80 should be retained by the respondent
licensee in its file.
(b) Initial Form No. 80 filings. Each licensee of an unconstructed
project shall file an initial Form No. 80 after such project has been
in operation for a full calendar year prior to the filing deadline.
Each licensee of an existing (constructed) project shall file an initial
Form No. 80 after such project has been licensed for a full calendar
year prior to the filing deadline.
(c) Exemptions. A licensee who has filed a Form No. 80 may request
an exemption from any further filing of the form for any development
that has no existing or potential recreational use by submitting a
statement not later than 6 months prior to the due date for the next
filing, stating that Form No. 80 has been filed previously for such
development and setting out the basis for believing that the development
has no existing or potential recreational use.
(Approved by the Office of Management and Budget under control number
1902-0106)
(46 FR 50059, Oct. 9, 1981, as amended by 49 FR 5073, Feb. 10, 1984;
Order 419, 50 FR 20096, May 14, 1985)
18 CFR 8.11 PART 9 -- TRANSFER OF LICENSE OR LEASE OF PROJECT PROPERTY
Sec.
9.1 Filing.
9.2 Contents of application.
9.3 Transfer.
9.10 Filing.
Authority: Sec. 8, 41 Stat. 1068, sec. 309, 49 Stat. 858; 16
U.S.C. 801, 825h; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et
seq.)
Cross Reference: For application for approval of transfer of
license, see 131.20 of this chapter.
18 CFR 8.11 Application for Transfer of License
18 CFR 9.1 Filing.
Any licensee desiring to transfer a license or rights thereunder
granted, and the person, association, corporation, State, or
municipality desiring to acquire the same, shall jointly or severally
file an application for approval of such transfer and acquisition. Such
application shall be verified, shall conform to 131.20 of this chapter,
and shall be filed in accordance with 4.31 of this chapter.
(Order 501, 39 FR 2267, Jan. 18, 1974)
18 CFR 9.2 Contents of application.
Every application for approval of such transfer and acquisition by
the proposed transferee shall set forth in appropriate detail the
qualifications of the transferee to hold such license and to operate the
property under license, which qualifications shall be the same as those
required of applicants for license.
(Order 141, 12 FR 8491, Dec. 19, 1947)
Cross References: For administrative rules relating to applicants
for license, see part 385 of this chapter. For regulations as to
licenses and permits, see part 4 of this chapter.
18 CFR 9.3 Transfer.
(a) Approval by the Commission of transfer of a license is contingent
upon the transfer of title to the properties under license, delivery of
all license instruments, and a showing that such transfer is in the
public interest. The transferee shall be subject to all the conditions
of the license and to all the provisions and conditions of the act, as
though such transferee were the original licensee and shall be
responsible for the payment of annual charges which accrue prior to the
date of transfer.
(b) When the Commission shall have approved the transfer of the
license, its order of approval shall be forwarded to the transferee for
acknowledgment of acceptance. Unless application for rehearing is
filed, or unless the order is stayed by the Commission, the order shall
become final thirty (30) days from date of issuance and the
acknowledgment of acceptance shall be filed in triplicate with the
Commission within sixty (60) days from date of issuance accompanied by a
certified copy of the deed of conveyance or other instrument evidencing
transfer of the property under license, together with evidence of the
recording thereof.
(Order 175, 19 FR 5217, Aug. 18, 1954)
18 CFR 9.3 Application for Lease of Project Property
18 CFR 9.10 Filing.
Any licensee desiring to lease the project property covered by a
license or any part thereof, whereby the lessee is granted the exclusive
occupancy, possession, or use of project works for purposes of
generating, transmitting, or distributing power, and the person,
association, or corporation, State, or municipality desiring to acquire
such project property by lease, shall file as many copies of such
proposed lease together with as many copies of the application as
required in accordance with 4.31 of this chapter. Such application and
action thereon by the Commission will, in general, be subject to the
provisions of 9.1 through 9.3.
(Order 501, 39 FR 2267, Jan. 18, 1974)
18 CFR 9.10 PART 11 -- ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT
18 CFR 9.10 Subpart A -- Charges for Costs of Administration, Use of
Tribal Lands and Other Government Lands, and Use of Government Dams
Sec.
11.1 Costs of administration.
11.2 Use of government lands.
11.3 Use of government dams, excluding pumped storage projects.
11.4 Use of government dams for pumped storage projects, and use of
tribal lands.
11.5 Exemption of minor projects.
11.6 Exemption of State and municipal licensees.
11.7 Effective date.
11.8 Adjustment of annual charges.
18 CFR 9.10 Subpart B -- Charges for Headwater Benefits
11.10 General provision; waiver and exemption; definitions.
11.11 Energy gains method of determining headwater benefits charges.
11.12 Determination of section 10(f) costs.
11.13 Energy gains calculations.
11.14 Procedures for establishing charges without an energy gains
investigation.
11.15 Procedures for determining charges by energy gains
investigations.
11.16 Filing requirements.
11.17 Procedures for payment of charges and costs.
18 CFR 9.10 Subpart C -- General Procedures
11.20 Time for payment.
11.21 Penalties.
Appendix A to Part 11
Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352; E.O. 12009,
3 CFR 1978 Comp., p. 142.
18 CFR 9.10 Subpart A -- Charges for Costs of Administration, Use of Tribal Lands and Other Government Lands, and Use of Government Dams
18 CFR 11.1 Costs of administration.
Reasonable annual charges will be assessed by the Commission against
each licensee to reimburse the United States for the costs of
administration of Part I of the Federal Power Act as follows:
(a) For licensees, other than State or municipal, of projects of more
than 2,000 horsepower of installed capacity:
(1) A determination shall be made for each fiscal year of the costs
of administration of Part I of the Federal Power Act chargeable to such
licensees, from which shall be deducted such administrative costs
allocated by the Commission to minor part licenses for which
administrative charges are waived under section 10(i) of the Act and
those fixed by the Commission in determining headwater benefit payments.
(2) For each fiscal year the costs of administration determined under
paragraph (a)(1) of this section will be assessed against such licensee
in the proportion that the annual charge factor for each such project
bears to the total of the annual charge factors under all such
outstanding licenses.
(3) The annual charge factor for each such project shall be found as
follows:
(i) For a conventional project the factor is its authorized installed
capacity (horsepower) plus 150 times its annual energy output in
millions of kilowatt-hours.
(ii) For a pure pumped storage project the factor is the authorized
horsepower.
(iii) For a mixed conventional-pumped storage project the factor is
its authorized installed capacity (horsepower) plus 150 times its gross
annual energy output in millions of kilowatt-hours less 100 times the
annual energy used for pumped storage pumping in millions of
kilowatt-hours.
(4) To enable the Commission to determine such charges annually, each
licensee must file with the Commission, on or before November 1 of each
year, a statement under oath showing the gross amount of power generated
(or produced by nonelectrical equipment) and the amount of power used
for pumped storage pumping by the project during the preceding fiscal
year, expressed in kilowatt hours. If any licensee does not report the
gross energy output of its project within the time specified above, the
Commission's staff will estimate the energy output and this estimate may
be used in lieu of the filings required by this section made by such
licensee after November 1.
(5) No licensee under a license issued prior to August 26, 1935,
shall be required to pay annual charges in an amount greater than that
prescribed in such license.
(b) For State or municipal licensees of projects of more than 100
horsepower of installed capacity:
(1) A determination shall be made for each fiscal year of the cost of
administration under Part I of the Federal Power Act chargeable to such
licensees from which shall be deducted the total amount assessed against
State and municipal licensees holding minor and minor-part licenses.
(2) For each fiscal year such total actual cost of administration as
determined under paragraph (b)(1) of this section will be assessed
against each such licensee in the proportion that the authorized
horsepower installed capacity of each such project bears to the total
such capacity under all such outstanding licenses.
(3) After such assessment each fiscal year, an exemption will be
granted to a licensee to the extent, if any, to which they may be
entitled under section 10(e) of the Act provided the data is submitted
as requested in paragraphs (b)(4) and (5) of this section.
(4) To enable the Commission to compute on the bill for annual
charges the exemption to which such licensee is entitled because of the
use of power by the licensee for State or municipal purposes, each such
licensee must file with the Commission, on or before November 1 of each
year, a statement under oath showing the following information with
respect to the power generated by the project and the disposition
thereof during the preceding fiscal year, expressed in kilowatt-hours:
(i) Gross amount of power generated by the project.
(ii) Amount of power used for station purposes and lost in
transmission, etc.
(iii) Net amount of power available for sale or use by licensee,
classified as follows:
(a) Used by licensee.
(b) Sold by licensee.
(5) When the power from a licensed project owned by a State or
municipality enters into its electric system, making it impracticable to
meet the requirements of paragraph (b)(4) of this section with respect
to the disposition of project power, such licensee may, in lieu thereof,
furnish similar information with respect to the disposition of the
available power of the entire electric system of the licensee.
(c) For licensees of projects of 2,000 horsepower or less of
installed capacity the charge for costs of administration shall be 5
cents per horsepower with a minimum charge of $5 per annum for each such
license except for those licenses for which administrative charges are
waived under section 10(i) of the Act. No licensee under a license
issued prior to August 26, 1935, shall be required to pay annual charges
in an amount greater than that prescribed in such license.
(d) For projects involving transmission lines only the administration
charge shall be a minimum of $5 per annum.
(e) For projects not covered by the above subsections, reasonable
annual charges will be fixed by the Commission after consideration of
the facts in each case.
(f) In making their annual reports to the Commission on their costs
in administering Part I of the Federal Power Act, the United States Fish
and Wildlife Service and the National Marine Fisheries Service are to
deduct any amounts that were deposited into their Treasury accounts
during that year as reimbursements for conducting studies and reviews
pursuant to section 30(e) of the Federal Power Act.
(Sec. 304(a), 49 Stat. 855; 16 U.S.C. 825c(a))
(Order 205, 23 FR 4313, June 13, 1958, as amended by Order 272-A, 29
FR 8059, June 25, 1964; Order 309, 30 FR 15093, Dec. 7, 1965; Order
447, 37 FR 1164, Jan. 26, 1972. Redesignated at 51 FR 24318, July 3,
1986; Order No. 469, 52 FR 18208, May 14, 1987; Order 487, 52 FR
48406, Dec. 22, 1987)
18 CFR 11.2 Use of government lands.
(a) Reasonable annual charges for recompensing the United States for
the use, occupancy, and enjoyment of its lands (other than lands
adjoining or pertaining to Government dams or other structures owned by
the United States Government) or its other property, will be fixed by
the Commission. In fixing such charges the Commission may take into
consideration such factors as commercial value, the most profitable use
for which the lands or other property may be suited, the beneficial
purpose for which said lands or other property have been or may be used,
and such other factors as the Commission may deem pertinent.
(b) Pending further order of the Commission and subject to
adjustments as conditions may warrant, annual charges for the use of
government lands will be payable in advance, and will be set on the
basis of the schedule of rental fees for linear rights-of-way as set out
in Appendix A of this part. Annual charges for transmission line
rights-of-way will be equal to the per-acre charges established by the
above schedule. Annual charges for other project lands will be equal to
twice the charges established by the schedule. The Commission, by its
designee the Executive Director, will update its fees schedule to
reflect changes in land values established by the Forest Service. The
Executive Director will publish the updated fee schedule in the Federal
Register.
(c)(1) The annual land use charge payable for the nine month
transition year of the implementation of this rule (1987) will be
payable in three equal installments, with an installment included in the
land use charges bills for 1988, 1989, and 1990.
(2) The charge for one year will equal an amount as computed under
the procedures outlined in this section, or twice the previous full
normal year's bill (not including the installments described in
paragraph (c)(1) of this section), whichever is less.
(d) The minimum annual charge for use of Government lands under any
license will be $25.
(e) No licensee under a license issued prior to August 26, 1935,
shall be required to pay annual charges in an amount greater than that
prescribed in such license, except as may be otherwise provided in the
license.
(Order 560, 42 FR 1229, Jan. 6, 1977; 42 FR 6366, Feb. 2, 1977.
Redesignated at 51 FR 24318, July 3, 1986; Order No. 469, 52 FR 18209,
May 14, 1987; 53 FR 44859, Nov. 7, 1988)
18 CFR 11.3 Use of government dams, excluding pumped storage projects.
(a) General rule. (1) Any licensee whose non-Federal project uses a
Government dam or other structure for electric power generation and
whose annual charges are not already specified in final form in the
license must pay the United States an annual charge for the use of that
dam or other structure as determined in accordance with this section.
Payment of such annual charge is in addition to any reimbursement paid
by a licensee for costs incurred by the United States as a direct result
of the licensee's project development at such Government dam.
(2) Any licensee that is obligated under the terms of a license
issued on or before September 16, 1986 to pay specified annual charges
for the use of a Government dam must continue to pay the annual charges
prescribed in the project license pending any readjustment of the annual
charge for the project made pursuant to section 10(e) of the Federal
Power Act.
(b) Graduated flat rates. Annual charges for the use of Government
dams or other structures owned by the United States are 1 mill per
kilowatt-hour for the first 40 gigawatt-hours of energy a project
produces, 1 1/2 mills per kilowatt-hour for over 40 up to and including
80 gigawatt-hours, and 2 mills per kilowatt-hour for any energy the
project produces over 80 gigawatt-hours.
(c) Information reporting. (1) Except as provided in paragraph
(c)(2) of this section, each licensee must file with the Commission, on
or before November 1 of each year, a sworn statement showing the gross
amount of energy generated during the preceding fiscal year and the
amount of energy provided free of charge to the Government. The
determination of the annual charge will be based on the gross energy
production less the energy provided free of charge to the Government.
(2) A licensee who has filed these data under another section of part
11 or who has submitted identical data with FERC or the Energy
Information Administration for the same fiscal year is not required to
file the information described in paragraph (c)(1) of this section.
Referenced filings should be identified by company name, date filed,
docket or project number, and form, number.
(d) Credits. A licensee may file a request with the Director of the
Office of Hydropower Licensing for a credit for contractual payments
made for construction, operation, and maintenance of a Government dam at
any time before 30 days after receiving a billing for annual charges
determined under this section. The Director, or his designee, will
grant such a credit only when the licensee demonstrates that a credit is
reasonably justified. The Director, or his designee, shall consider,
among other factors, the contractual arrangements between the licensee
and the Federal agency which owns the dam and whether these arrangements
reveal clearly that substantial payments are being made for power
purposes, relevant legislation, and other equitable factors.
(Order 379, 49 FR 22778, June 1, 1984, as amended by Order 379-A, 49
FR 33862, Aug. 27, 1984. Redesignated at 51 FR 24318, July 3, 1986;
Order No. 469, 52 FR 18209, May 14, 1987; 52 FR 33802, Sept. 8, 1987;
53 FR 44859, Nov. 7, 1988)
18 CFR 11.4 Use of government dams for pumped storage projects, and use
of tribal lands.
(a) General Rule. The Commission will determine on a case-by-case
basis under section 10(e) of the Federal Power Act the annual charges
for any pumped storage project using a Government dam or other structure
and for any project using tribal lands within Indian reservations.
(b) Information reporting. (1) Except as provided in paragraph
(b)(2) of this section a Licensee whose project includes pumped storage
facilities must file with the Commission, on or before November 1 of
each year, a sworn statement showing the gross amount of energy
generated during the preceding fiscal year, and the amount of energy
provided free of charge to the Government, and the amount of energy used
for pumped storage pumping.
(2) A licensee who has filed these data under another section of part
11 or who has submitted identical data with FERC or the Energy
Information Administration for the same fiscal year is not required to
file the information required in paragraph (b)(1) of this section.
Referenced filings should be identified by company name, date filed,
docket or project number, and form number.
(Order 379, 49 FR 22778, June 1, 1984. Redesignated at 51 FR 24318,
July 3, 1986; Order No. 469, 52 FR 18209, May 14, 1987; 52 FR 33802,
Sept. 8, 1987)
18 CFR 11.5 Exemption of minor projects.
No exemption will be made from payment of annual charges for the use
of Government dams or tribal lands within Indian reservations but
licenses may be issued without charges other than for such use for the
development, transmission, or distribution of power for domestic,
mining, or other beneficial use in minor projects.
(Order 141, 12 FR 8492, Dec. 19, 1947. Redesignated by Order 379, 49
FR 22778, June 1, 1984. Redesignated at 51 FR 24318, July 3, 1986)
18 CFR 11.6 Exemption of State and municipal licensees.
(a) Bases for exemption. A State or municipal licensee may claim
total or partial exemption upon one or more of the following grounds:
(1) The project was primarily designed to provide or improve
navigation;
(2) To the extent that power generated, transmitted, or distributed
by the project was sold directly or indirectly to the public (ultimate
consumer) without profit;
(3) To the extent that power generated, transmitted, or distributed
by the project was used by the licensee for State or municipal purposes.
(b) Projects primarily for navigation. No State or municipal
licensee shall be entitled to exemption from the payment of annual
charges on the ground that the project was primarily designed to provide
or improve navigation unless the licensee establishes that fact from the
actual conditions under which the project was constructed and was
operated during the calendar year for which the charge is made.
(c) State or municipal use. A State or municipal licensee shall be
entitled to exemption from the payment of annual charges for the project
to the extent that power generated, transmitted, or distributed by the
project is used by the licensee itself for State or municipal purposes,
such as lighting streets, highways, parks, public buildings, etc., for
operating licensee's water or sewerage system, or in performing other
public functions of the licensee.
(d) Sales to public. No State or municipal licensee shall be
entitled to exemption from the payment of annual charges on the ground
that power generated, transmitted, or distributed by the project is sold
to the public without profit, unless such licensee shall show:
(1) That it maintains an accounting system which segregates the
operations of the licensed project and reflects with reasonable accuracy
the revenues and expenses of the project;
(2) That an income statement, prepared in accordance with the
Commission's Uniform System of Accounts, shows that the revenues from
the sale of project power do not exceed the total amount of operating
expenses, maintenance, depreciation, amortization, taxes, and interest
on indebtedness, applicable to the project property. Periodic accruals
or payments for redemption of the principal of bonds or other
indebtedness may not be deducted in determining the net profit of the
project.
(e) Sales for resale. Notwithstanding compliance by a State or
municipal licensee with the requirements of paragraph (d) of this
section, it shall be subject to the payment of annual charges to the
extent that electric power generated, transmitted, or distributed by the
project is sold to another State, municipality, person, or corporation
for resale, unless the licensee shall show that the power was sold to
the ultimate consumer without profit. The matter of whether or not a
profit was made is a question of fact to be established by the licensee.
(f) Interchange of power. Notwithstanding compliance by a State or
municipal licensee with the requirements of paragraph (d) of this
section, it shall be subject to the payment of annual charges to the
extent that power generated, transmitted, or distributed by the project
was supplied under an interchange agreement to a State, municipality,
person, or corporation for sale at a profit (which power was not offset
by an equivalent amount of power received under such interchange
agreement) unless the licensee shall show that the power was sold to
ultimate consumers without profit.
(g) Construction period. During the period when the licensed project
is under construction and is not generating power, it will be considered
as operating without profit within the meaning of this section, and
licensee will be entitled to total exemption from the payment of annual
charges, except as to those charges relating to the use of a Government
dam or tribal lands within Indian reservations.
(h) Optional showing. When the power from the licensed project
enters into the electric power system of the State or municipal
licensee, making it impracticable to meet the requirements set forth in
this section with respect to the operations of the project only, such
licensee may, in lieu thereof, furnish the same information with respect
to the operations of said electric power system as a whole.
(i) Application for exemption. Application for exemption from
payment of annual charges shall be prepared on forms prescribed by the
Commission and shall be signed by an authorized executive officer or
chief accounting officer of the licensee and verified under oath. An
original and three copies of such application shall be filed with the
Commission within the time allowed (by 11.28) for the payment of the
annual charges: Provided, however, That if the licensee shall within
the time allowed for the payment of the annual charges file notice that
it intends to file application for exemption, an additional period of 30
days is allowed within which to complete and file the application for
exemption.
(Order 143, 13 FR 6681, Nov. 13, 1948. Redesignated and amended by
Order 379, 49 FR 22778, June 1, 1984. Redesignated at 51 FR 24318, July
3, 1986)
Cross Reference: For form of application by municipalities for
exemption from payment of annual charges, see 131.70 of this chapter.
18 CFR 11.7 Effective date.
All annual charges imposed under this subpart will be computed
beginning on the effective date of the license unless some other date is
fixed in the license.
(51 FR 24318, July 3, 1986)
18 CFR 11.8 Adjustment of annual charges.
All annual charges imposed under this subpart continue in effect as
fixed unless changed as authorized by law.
(51 FR 24318, July 3, 1986)
18 CFR 11.8 Subpart B -- Charges for Headwater Benefits
Source: 51 FR 24318, July 3, 1986, unless otherwise noted.
18 CFR 11.10 General provision; waiver and exemptions; definitions.
(a) Headwater benefits charges. (1) The Commission will assess or
approve charges under this subpart for direct benefits derived from
headwater projects constructed by the United States, a licensee, or a
pre-1920 permittee. Charges under this subpart will amount to an
equitable part of the annual costs of interest, maintenance, and
depreciation expenses of such headwater projects and the costs to the
Commission of determining headwater benefits charges. Except as
provided in paragraph (b) of this section, the owner of any non-Federal
downstream project that receives headwater benefits must pay charges
determined under this subpart.
(2) Headwater benefits are the additional electric generation at a
downstream project that results from regulation of the flow of the river
by the headwater, or upstream, project, usually by increasing or
decreasing the release of water from a storage reservoir.
(b) Waiver and exemptions. The owner of a downstream project with
installed generating capacity of 1.5 MW (2000 horsepower) or less or for
which the Commission has granted an exemption from section 10(f) is not
required to pay headwater benefits charges.
(c) Definitions. For purposes of this subpart:
(1) Energy gains means the difference between the number of
kilowatt-hours of energy produced at a downstream project with the
headwater project and that which would be produced without the headwater
project.
(2) Generation means gross generation of electricity at a
hydroelectric project, including generation needed for station use or
the equivalent for direct drive units, measured in kilowatt-hours. It
does not include energy used for or derived from pumping in a pumped
storage facility.
(3) Headwater project costs means the total costs of an upstream
project constructed by the United States, a licensee, or pre-1920
permittee.
(4) Separable cost means the difference between the cost of a
multiple-function headwater project with and without any particular
function.
(5) Remaining benefits means the difference between the separable
cost of a specific function in a multiple-function project and the
lesser or:
(i) The benefits of that function in the project, as determined by
the responsible Federal agency at the time the project or function was
authorized; or
(ii) The cost of the most likely alternative single-function project
providing the same benefits.
(6) Joint-use cost means the difference between the total project
cost and the total separable costs. Joint-use costs are allocated among
the project functions according to each function's percentage of the
total remaining benefits.
(7) Specific power cost means that portion of the headwater project
costs that is directly attributable to the function of power generation
at the headwater project, including, but not limited to, the cost of the
electric generators, turbines, penstocks, and substation.
(8) Joint-use power cost means the portion of the joint-use cost
allocated to the power function of the project.
(9) Section 10(f) costs means the annual interest, depreciation, and
maintenance expense portion of the joint-use power cost, including costs
of non-power functions required by statute to be paid by revenues from
the power function.
(10) Party means:
(i) The owner of a non-Federal downstream hydroelectric project which
is directly benefited by a headwater project constructed by the United
States, a licensee, or a pre-1920 permittee;
(ii) The owner of a headwater project constructed by the United
States, a licensee, or a pre-1920 permittee;
(iii) An operating agency of, or an agency marketing power from, a
headwater project constructed by the United States; or
(iv) Any party, as defined in 385.102(c) of this chapter.
(11) Final charge means a charge assessed on an annual basis to
recover section 10(f) costs and which represents the final determination
of the charge for the period for which headwater benefits are assessed.
Final charges may be established retroactively, to finalize an interim
charge, or prospectively.
(12) Interim charge means a charge assessed to recover section 10(f)
costs for a specified period of headwater benefits pending determination
of a final charge for that period.
(13) Investment cost means the sum of:
(i) Project construction costs, including cost of land, labor and
materials, cost of pre- and post-authorization investigations, and cost
of engineering, supervision, and administration during construction of
the project; and
(ii) Interest during construction.
18 CFR 11.11 Energy gains method of determining headwater benefits
charges.
(a) Applicability. This section applies to any determination of
headwater benefits charges, unless:
(1) The Commission has approved headwater benefits charges pursuant
to an existing coordination agreement among the parties;
(2) The parties reach, and the Commission approves, a settlement with
respect to headwater benefits charges, pursuant to 11.14(a) of this
subpart; or
(3) Charges may be assessed under 11.14(b).
(b) General rule -- (1) Summary. Except as provided in paragraph
(b)(3) of this section, a headwater benefits charge for a downstream
project is determined under this subpart by apportioning the section
10(f) costs of the headwater project among the headwater project and all
downstream projects that are not exempt from or waived from headwater
benefits charges under 11.10(b) of this chapter, according to each
project's share of the total energy benefits to those projects resulting
from the headwater project.
(2) Calculation; headwater benefits formula. The annual headwater
benefits charge for a downstream project is derived by multiplying the
section 10(f) cost by the ratio of the energy gains received by the
downstream project to the sum of total energy gains received by all
downstream projects (except those projects specified in 11.10(b) of
this chapter) plus the energy generated at the headwater project that is
assigned to the joint-use power cost, as follows:
In which:
P=annual payment to be made for headwater benefits received by a
downstream project,
Cp=annual section 10(f) cost of the headwater project,
En=annual energy gains received at a downstream project, or group of
projects if owned by one entity,
Ed=annual energy gains received at all downstream projects (except
those specified in 11.10(b) of this chapter), and
Ej=portion of the annual energy generated at the headwater project
assigned to the joint-use power cost.
(3) If power generation is not a function of the headwater project,
section 10(f) costs will be apportioned only among the downstream
projects.
(4) If the headwater project is constructed after the downstream
project, liability for headwater benefits charges will accrue beginning
on the day on which any energy losses at the downstream project due to
filling the headwater reservoir have been offset by subsequent energy
gains. If the headwater project is constructed prior to the downstream
project, liability for headwater benefits charges will accrue beginning
on the day on which benefits are first realized by the downstream
project.
(5) No final charge assessed by the Commission under this subpart may
exceed 85 percent of the value of the energy gains. If a party
demonstrates, within the time specified in 11.17(b)(3) for response to
a preliminary assessment, that any final charge assessed under this
subpart, not including the cost of the investigation assessed under
11.17(c), exceeds 85 percent of the value of the energy gains provided
to the downstream project for the period for which the charge is
assessed, the Commission will reduce the charge to not more than 85
percent of the value. For purposes of this paragraph, the value of the
energy gains is the cost of obtaining an equivalent amount of
electricity from the most likely alternative source during the period
for which the charge is assessed.
18 CFR 11.12 Determination of section 10(f) costs.
(a) for non-Federal headwater projects. If the headwater project was
constructed by a licensee or pre-1920 permittee and a party requests the
Commission to determine charges, the Commission will determine on a
case-by-case basis what portion of the annual interest, maintenance, and
depreciation costs of the headwater project constitutes the section
10(f) costs, for purposes of this subpart.
(b) For Federal headwater projects. (1) If the headwater project was
constructed or is operated by the United States, and the Commission has
not approved a settlement between the downstream project owner and the
headwater project owner, the section 10(f) cost will be determined by
deriving, from information provided by the headwater project owner
pursuant to 11.16 of this subpart, the joint-use power cost and the
portion of the annual joint-use power cost that represents the interest,
maintenance, and depreciation costs of the project.
(2) If power is not an authorized function of the headwater project,
the section 10(f) cost is the annual interest, maintenance, and
depreciation portion of the headwater project costs designated as the
joint-use power cost, derived by deeming a power function at the
project. The value of the benefits assigned to the deemed power
function, for purposes of determining the value of remaining benefits of
the joint-use power cost, is the total value of downstream energy gains
included in the headwater benefits formula.
(3) For purposes of this paragraph, total value of downstream energy
gains means the lesser of:
(i) The cost of generating an equivalent amount of electricity at the
most likely alternative facility at the time the headwater project
became operational; or
(ii) The incremental cost of installing electrical generation at the
headwater project at the time the project became operational.
18 CFR 11.13 Energy gains calculations.
(a) Energy gains at a downstream project. (1) Energy gains at a
downstream project are determined by simulating operation of the
downstream project with and without the effects of the headwater
project. Except for determinations which are not complex or in which
headwater benefits are expected to be small, calculations will be made
by application of the Headwater Benefits Energy Gains Model, as
presented in The Headwater Benefits Energy Gains (HWBEG) Model
Description and Users Manual, which is available for the National
Technical Information Service, U.S. Department of Commerce, 5285 Port
Royal Road, Springfield, VA 22161.
(2) If more than one headwater project provide energy gains to a
downstream project, the energy gains at the dowstream project are
attributed to the headwater projects according to the time sequence of
commencement of operation in which each headwater project provided
energy gains at the downstream project, by:
(i) Crediting the headwater project that is first in time with the
amount of energy gains that it provided to the downstream project prior
to operation of the headwater project that is next in time; and
(ii) Crediting any subsequent headwater project with the additional
increment of energy gains provided by it to the downstream project.
(3) Annual energy losses at a downstream project, or group of
projects owned by the same entity, that are attributable to the
headwater project will be subtracted from energy gains for the same
annual period at the downstream project or group of projects. A net
loss in one calendar year will be subtracted from net gains in
subsequent years until no net loss remains.
(b) Energy generated at the headwater project. (1) Except as
provided in paragraphs (b)(2) and (b)(3) of this section, the portion of
the total annual energy generation at the headwater project that is to
be attributed to the joint-use power cost is derived by multiplying the
total annual generation at the headwater project and the ratio of the
project investment cost assigned to the joint-use power cost to the sum
of the investment cost assigned to both the specific power cost and the
joint-use power cost of the headwater project, as follows:
In which:
Ej=annual energy generated at the headwater project to be attributed
to the joint-use power cost,
E=total annual generation at the headwater project,
Cj=project investment costs assigned to the joint-use power cost, and
Cs=project investment costs assigned to specific power costs.
(2) If the headwater project contains a pumped storage facility,
calculation of the portion of the total annual energy generation at the
headwater project that is attributable to the joint-use power cost will
be determined on a case-by-case basis.
(3) If no power is generated at the headwater project, the amount of
energy attributable to the joint-use power cost under this section is
the total of all downstream energy gains included in the headwater
benefits formula.
18 CFR 11.14 Procedures for establishing charges without an energy
gains investigation.
(a) Settlements. (1) Owners of downstream and headwater projects
subject to this subpart may negotiate a settlement for headwater
benefits charges. Settlements must be filed with the Commission for its
approval, according to the provisions of 385.602.
(2) If the headwater project is a Federal project, any settlement
under this section must result in headwater benefits payments that
approximate those that would result under the energy gains method.
(b) Continuation of previous headwater benefits determinations. (1)
For any downstream project being assessed headwater benefit charges on
or before September 16, 1986, the Commission will continue to assess
charges to that project on the same basis until changes occur in the
river basin, including hydrology or project development, that affect
headwater benefits.
(2) Any procedures that apply to 11.17(b)(5) of this subpart will
apply to any prospectively fixed charges that are continued under this
paragraph.
18 CFR 11.15 Procedures for determining charges by energy gains
investigation.
(a) Purpose of investigations; limitation. Except as permitted under
11.14, the Commission will conduct an investigation to obtain
information for establishing headwater benefits charges under this
subpart. The Commission will investigate and determine charges for a
project downstream from a non-Federal headwater project only if the
parties are unable to agree to a settlement and one of the parties
requests the Commission to determine charges.
(b) Notification. The Commission will notify each downstream project
owner and each headwater project owner when it initiates an
investigation under this section, and the period of project operations
to be studied will be specified. An investigation will continue until a
final charge has been established for all years studied in the
investigation.
(c) Jurisdictional objections. If any project owner wishes to object
to the assessment of a headwater benefits charge on jurisdictional
grounds, such objection must:
(1) Be raised within 30 days after the notice of the investigation is
issued; and
(2) State in detail the grounds for its objection.
(d) Investigations. (1) For any downstream project for which a final
charge pursuant to an investigation has never been established, the
Commission will conduct an initial investigation to determine a final
charge.
(2) The Commission may, for good cause shown by a party or on its own
motion, initiate a new investigation of a river basin to determine
whether, because of any change in the hydrology, project development, or
other characteristics of the river basin that effects headwater
benefits, it should:
(i) Establish a new final charge to replace a final charge previously
established under 11.17(b)(5); or
(ii) Revise any variable of the headwater benefits formula that has
become a constant in calculating a final charge.
(3) Scope of investigations. (i) The Commission will establish a
final charge pursuant to an investigation based on information available
to the Commission through the annual data submission requirements of
11.16, if such information is adequate to establish a reasonably
accurate final charge.
(ii) If the information available to the Commission is not sufficient
to provide a reasonably accurate calculation of the final charge, the
Commission will request additional data and conduct any studies,
including studies of the hydrology of the river basin and project
operations, that it determines necessary to establish the charge.
18 CFR 11.16 Filing requirements.
(a) Applicability. (1) Any party subject to a headwater benefits
determination under this subpart must supply project-specific data, in
accordance with this section, by February 1 of each year for data from
the preceding calendar year.
(2) Within 30 days of notice of initiation of an investigation under
11.15, a party must supply project-specific data, in accordance with
this section, for the years specified in the notice.
(b) Data required from owner of the headwater project. The owner of
any headwater project constructed by the United States, a licensee, or a
pre-1920 permittee that is upstream from a non-Federal hydroelectric
project must submit the following:
(1) Name and location of the headwater project, including the name of
the stream on which it is located.
(2) The total nameplate rating of installed generating capacity of
the project, expressed in kilowatts, with the portion of total capacity
that represents pumped storage generating capacity separately
designated.
(3) A description of the total storage capacity of the reservoir and
allocation of storage capacity to each of its functions, such as dead
storage, power storage, irrigation storage, and flood control storage.
Identification, by reservoir elevation, of the portion of the reservoir
assigned to each of its respective storage functions.
(4) An elevation-capacity curve, or a tabulation of reservoir pool
elevations with corresponding reservoir storage capacities.
(5) A copy of rule curves, coordination contracts, agreements, or
other relevant data governing the release of water from the reservoir,
including a separate statement of their effective dates.
(6) A curve or tabulation showing actual reservoir pool elevations
throughout the immediately preceding calendar year and for each year
included in an investigation.
(7) The total annual gross generation of the hydroelectric plant in
kilowatt-hours, not including energy from pumped storage operation.
(8) The total number of kilowatt-hours of energy produced from pumped
storage operation.
(9) The investigation costs attributed to the power generation
function of the project as of the close of the calendar year or at a
specified date during the year, categorized according to that portion
that is attributed to the specific power costs, and that portion that is
attributed to the joint-use power costs.
(10) The portion of the joint-use power cost, and other costs
required by law to be allocated to joint-use power cost, each item shown
separately, that are attributable to the annual costs of interest,
maintenance, and depreciation, identifying the annual interest rate and
the method used to compute the depreciation charge, or the interest rate
and period used to compute amortization if used in lieu of depreciation,
including any differing interest rates used for major replacements or
rehabilitation.
(c) Data required from owners of downstream projects. The owner of
any hydroelectric project which is downstream from a headwater project
constructed by the United States, a licensee, or pre-1920 permittee must
submit the following:
(1) Name and location of the downstream project, including the name
of the stream on which it is located.
(2) Total nameplate rating of the installed generating capacity of
the plant, expressed in kilowatts, with the portion of total capacity
that represents pumped storage generating capacity separately
designated.
(3) Record of daily gross generation, not including energy used for
pumped storage, and any unit outage which may have occurred.
(4) The total number of kilowatt-hours of energy produced from pumped
storage operation.
(d) Abbreviated data submissions. (1) For those items in paragraphs
(b) and (c) of this section in which data for the current period are the
same as data furnished for a prior period, the data need not be
resubmitted if the owner identifies the last period for which the data
were reported.
(2) The Commission will notify the project owner that certain data
items in paragraphs (b) and (c) are no longer required to be submitted
annually if:
(i) A variable in the headwater benefits formula has become a
constant; or
(ii) A prospective final charge, as described in 11.17(b)(5), has
been established.
(e) Additional data. Owners of headwater projects or downstream
projects must furnish any additional data required by the Commission
staff under paragraph (a) of this section and may provide other data
which they consider relevant.
18 CFR 11.17 Procedures for payment of charges and costs.
(a) Payment for benefits from a non-Federal headwater project. Any
billing procedures and payments determined between a non-Federal
headwater project owner and a downstream project owner will occur
according to the agreement of those parties.
(b) Charges and payment for benefits from a Federal headwater
project.
(1) Interim charges. (i) If the Commission has not established a
final charge and an investigation is pending, the Commission will issue
a downstream project owner a bill for the interim charge and costs and a
staff report explaining the calculation of the interim charge.
(ii) An interim charge will be a percentage of the estimate by the
Commission staff of what the final charge will be, as follows:
(A) 100 percent of the estimated final charge if the Commission
previously has completed an investigation of the project for which it is
assessed; or
(B) 80 percent of the estimated final charge if the Commission has
not completed an investigation of the project for which it is assessed.
(iii) When a final charge is established for a period for which an
interim charge was paid, the Commission will apply the amount paid to
the final charge.
(2) Preliminary assessment of a final charge. Unless the project
owner was assessed a final charge in the previous year, the Commission
will issue to the downstream project owner a preliminary assessment of
any final charge when it is determined. A staff technical report
explaining the basis of the assessment will be enclosed with the
preliminary assessment. Copies of the preliminary assessment will be
mailed to all parties.
(3) Opportunity to respond. After issuance of a preliminary
assessment of a final charge, parties may respond in writing within 60
days after the preliminary assessment.
(4) Order and bill. (i) After the opportunity for written response
by the parties to the preliminary assessment of a final charge, the
Commission will issue to the downstream project owner an order
establishing the final charge. Copies of the order will be mailed to
all parties. A bill will be issued for the amount of the final charge
and costs.
(ii) If a final charge is not established prospectively under
paragraph (b)(5) of this section, the Commission will issue an order and
a bill for the final charge and costs each year until prospective final
charges are established. After the Commission issues an order
establishing a prospective final charge, a bill will be issued annually
for the amount of the final charge and costs.
(5) Prospective final charges. When the Commission determines that
historical data, including the hydrology, development, and other
characteristics of the river basin, demonstrate sufficient stability to
project average energy gains and section 10(f) costs, the Commission
will issue to the downstream project owner an order establishing the
final charge from future years. Copies of the order will be mailed to
all parties. The prospective final charge will remain in effect until a
new investigation is initiated under 11.15(d)(2).
(6) Payment under protest. Any payment of a final charge required by
this section may be made under protest if a party is also appealing the
final charge pursuant to 385.1902, or requesting rehearing. If payment
is made under protest, that party will avoid any penalty for failure to
pay under 11.21.
(7) Accounting for payments pending appeal or rehearing. The
Commission will retain any payment received for final charges from bills
issued pursuant to this section in a special account. No disbursements
to the U.S. Treasury will be made from the account until 31 days after
the bill is issued. If an appeal under 385.1902 or a request for
rehearing is filed by any party, no disbursements to the U.S. Treasury
will be made until final disposition of the appeal or request for
rehearing.
(c) Charges for costs of determinations of headwater benefits
charges. (1) Any owner of a downstream project that benefits from a
Federal headwater project must pay to the United States the cost of
making any investigation, study, or determination relating to the
assessment of the relevant headwater benefits charge under this subpart.
(2) If any owner of a headwater or downstream project requests that
the Commission determine headwater benefits charges for benefits
provided by non-Federal headwater projects, the headwater project owners
must pay a pro rata share of 50 percent of the cost of making the
investigation and determination, in proportion to the benefits provided
by their projects, and the downstream project owners must pay a pro rata
share of the remaining 50 percent in proportion to the energy gains
received by their projects.
(3) Any charge assessed under this paragraph is separate from and
will be added to, any final or interim charge under this subpart.
18 CFR 11.17 Subpart C -- General Procedures
18 CFR 11.20 Time and payment.
Annual charges must be paid within 45 days of rendition of a bill by
the Commission, except that annual charges for headwater benefits must
be paid within 30 days of rendition of a bill.
(51 FR 24318, July 3, 1986)
18 CFR 11.21 Penalties.
If any person fails to pay annual charges within the periods
specified in 11.20, a penalty of 5 percent of the total delinquent
amount will be assessed and added to the total charges for the first
month or part of month in which payment is delinquent. An additional
penalty of 3 percent for each full month thereafter will be assessed
until the charges and penalties are satisfied in accordance with law.
The Commission may, by order, waive any penalty imposed by this
subsection, for good cause shown.
(51 FR 24318, July 3, 1986)
18 CFR 11.21 Pt. 11, App. A
18 CFR 11.21 Appendix A to Part 11
(56 FR 58497, Nov. 20, 1991)
18 CFR 11.21 PART 12 -- SAFETY OF WATER POWER PROJECTS AND PROJECT WORKS
18 CFR 11.21 Subpart A -- General Provisions
Sec.
12.1 Applicability.
12.2 Rules of construction.
12.3 Definitions.
12.4 Staff administrative responsibility and supervisory authority.
12.5 Responsibilities of licensee or applicant.
18 CFR 11.21 Subpart B -- Reports and Records
12.10 Reporting safety-related incidents.
12.11 Reporting modifications of the project or project works.
12.12 Maintenance of records.
12.13 Verification form.
18 CFR 11.21 Subpart C -- Emergency Action Plans
12.20 General requirements.
12.21 Exemptions.
12.22 Contents of emergency action plan.
12.23 Time for filing emergency action plan.
12.24 Review and updating of plans.
12.25 Posting and readiness.
18 CFR 11.21 Subpart D -- Inspection by Independent Consultant
12.30 Applicability.
12.31 Definitions.
12.32 General inspection requirement.
12.33 Exemption.
12.34 Approval of independent consultant.
12.35 Specific inspection requirements.
12.36 Emergency corrective measures.
12.37 Report of the independent consultant.
12.38 Time for inspections and reports.
12.39 Taking corrective measures after the report.
18 CFR 11.21 Subpart E -- Other Responsibilities of Applicant or
Licensee
12.40 Quality control programs.
12.41 Monitoring instruments.
12.42 Warning and safety devices.
12.43 Power and communication lines and gas pipelines.
12.44 Testing spillway gates.
Authority: Federal Power Act, as amended, 16 U.S.C. 792-828c (1982);
Department of Energy Organization Act, 42 U.S.C. 7101-7352 (1982);
E.O. 12009, 3 CFR 142 (1978).
Source: Order 122, 46 FR 9036, Jan. 28, 1981, unless otherwise
noted.
18 CFR 11.21 Subpart A -- General Provisions
18 CFR 12.1 Applicability.
(a) Except as otherwise provided in this part or ordered by the
Commission or its authorized representative, the provisions of this part
apply to:
(1) Any project licensed under Part I of the Federal Power Act;
(2) Any unlicensed constructed project for which the Commission has
determined that an application for license must be filed under Part I of
the Act; and
(3) Any project exempted from licensing under Part I of the Federal
Power Act, pursuant to subparts J or K of part 4 of this chapter, to the
extent that the Commission has conditioned the exemption on compliance
with any particular provisions of this part.
(b) The provisions of this part apply to a project that uses a
Government dam only with respect to those project works, lands, and
waters specifically licensed by the Commission.
18 CFR 12.2 Rules of construction.
(a) If any term, condition, article, or other provision in a project
license is similar to any provision of this part, the licensee must
comply with the relevant provision of this part, unless the Commission
or the Director of the Office of Hydropower Licensing determines that
compliance with the relevant provision of the license will better
protect life, health, or property.
(b) A licensee may request from the Director of the Office of
Hydropower Licensing a ruling on the applicability to its actions of any
provision of its license that is similar to a provision of this part. A
ruling by the Director may be appealed under 385.207 of this chapter.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended by Order 225, 47 FR
19056, May 3, 1982; 49 FR 29370, July 20, 1984)
18 CFR 12.3 Definitions.
(a) General rule. For purposes of this part, terms defined in
section 3 of the Federal Power Act, 16 U.S.C. 796, have the same meaning
as they have under the Act.
(b) Definitions. The following definitions apply for the purposes of
this part:
(1) Applicant means any person, state, or municipality that has
applied for a license for an unlicensed, constructed project and any
owner of an unlicensed, constructed project for which the Commission has
determined that an application for license must be filed.
(2) Owner means any person, state, or municipality, or combination
thereof, that has a real property interests in a water power project
sufficient to operate and maintain the project works.
(3) Authorized Commission representative means the Director of the
Office of Hydropower Licensing, the Director of the Division of
Inspections, the Regional Engineer, or any other member of the
Commission staff whom the Commission may specifically designate.
(4) Condition affecting the safety of a project or project works
means any condition, event, or action at the project which might
compromise the safety, stability, or integrity of any project work or
the ability of any project work to function safely for its intended
purposes, including navigation, water power development, or other
beneficial public uses; or which might otherwise adversely affect life,
health, or property. Conditions affecting the safety of a project or
project works include, but are not limited to:
(i) Unscheduled rapid draw-down of impounded water;
(ii) Failure of any facility that controls the release or storage of
impounded water, such as a gate or a valve;
(iii) Failure or unusual movement, subsidence, or settlement of any
part of a project work;
(iv) Unusual concrete deterioration or cracking, including
development of new cracks or the lengthening or widening of existing
cracks;
(v) Piping, slides, or settlements of materials in any dam, abutment,
dike, or embankment;
(vi) Significant slides or settlements of materials in areas adjacent
to reservoirs;
(vii) Significant damage to slope protection;
(viii) Unusual instrumentation readings;
(ix) New seepage or leakage or significant gradual increase in
pre-existing seepage or leakage;
(x) Sinkholes;
(xi) Significant instances of vandalism or sabotage;
(xii) Natural disasters, such as floods, earthquakes, or volcanic
activity;
(xiii) Any other signs of instability of any project work.
(5) Constructed project means any project with an existing dam.
(6) Dam means any structure for impounding or diverting water.
(7) Development means that part of a project comprising an
impoundment and its associated dams, forebays, water conveyance
facilities, power plants, and other appurtenant facilities. A project
may comprise one or more developments.
(8) Modification means any activity, including repair or
reconstruction, that in any way changes the physical features of the
project from the state reflected in the plans or drawings or other
documents filed with the Commission.
(9) Project emergency means an impending or actual sudden release of
water at the project caused by natural disaster, accident, or failure of
project works.
(10) Regional Engineer means the person in charge of the Commission's
regional office for the region (Atlanta, Chicago, Fort Worth, New York,
or San Francisco) where a particular project is located.
(11) Act means the Federal Power Act.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.4 Staff administrative responsibility and supervisory
authority.
(a) Administrative responsibility. The Director of the Office of
Hydropower Licensing is responsible for administering the Commission's
project safety program and reports directly to the Chairman of the
Federal Energy Regulatory Commission.
(b) Supervisory authority of the Regional Engineer or other
authorized representative. (1) Any water power project and the
construction, operation, maintenance, use, repair, or modification of
any project works are subject to the inspection and the supervision of
the Regional Engineer or any other authorized Commission representative
for the purpose of:
(i) Achieving or protecting the safety, stability, and integrity of
the project works or the ability of any project work to function safely
for its intended purposes, including navigation, water power
development, or other beneficial public uses; or
(ii) Otherwise protecting life, health, or property.
(2) For the purposes set forth in paragraph (b)(1) of this section, a
Regional Engineer or other authorized Commission representative may:
(i) Test or inspect any water power project or project works or
require that the applicant or licensee perform such tests or inspections
or install monitoring instruments;
(ii) Require an applicant or a licensee to submit reports or
information, regarding:
(A) The design, construction, operation, maintenance, use, repair, or
modification of a water power project or project works; and
(B) Any condition affecting the safety of a project or project works
or any death or injury that occurs at, or might be attributable to, the
water power project;
(iii) Require an applicant or a licensee to modify:
(A) Any emergency action plan filed under subpart C of this part; or
(B) Any plan of corrective measures, including related schedules,
submitted after the report of an independent consultant pursuant to
12.37 or any other inspection report;
(iv) Require an applicant or licensee to take any other action with
respect to the design, construction, operation, maintenance, repair,
use, or modification of the project or its works that is, in the
judgment of the Regional Engineer or other authorized Commission
representative, necessary or desirable.
(v) Establish the time for an applicant or licensee to provide a
schedule for or to perform any actions specified in this paragraph.
(c) Appeal, stay, rescission, or amendment of order or directive.
(1) Any order or directive issued under this section or under the
provisions of subparts B through E of this part by a Regional Engineer
or other authorized Commission representative may be appealed to the
Commission under 385.207 of this chapter.
(2) Any order or directive issued under this section by a Regional
Engineer or other authorized Commission representative is immediately
effective and remains in effect until:
(i) The Regional Engineer or other authorized Commission
representative who issued the order or directive rescinds or amends that
order or directive or stays its effect; or
(ii) The Commission stays the effect of the order or directive, or
amends or rescinds the order or directive on appeal.
(3) An appeal or motion for rescission, amendment, or stay of any
order or directive issued under this section must contain a full
explanation of why granting the appeal or the request for rescission or
amendment of the order or directive, or for stay for the period
requested, will not endanger life, health, or property.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended by Order 225, 47 FR
19056, May 3, 1982; 49 FR 29370, July 20, 1984)
18 CFR 12.5 Responsibilities of licensee or applicant.
A licensee or applicant must use sound and prudent engineering
practices in any action relating to the design, construction, operation,
maintenance, use, repair, or modification of a water power project or
project works.
18 CFR 12.5 Subpart B -- Reports and Records
18 CFR 12.10 Reporting safety-related incidents.
(a) Conditions affecting the safety of a project or its works -- (1)
Oral reports. An applicant or licensee must report by telephone to the
Regional Engineer any condition affecting the safety of a project or
projects works, as defined in 12.3(b)(4). The initial oral report must
be made as soon as practicable after that condition is discovered,
without unduly interfering with any necessary or appropriate emergency
repair, alarm, or other emergency action procedure.
(2) Written reports. Following the initial oral report required in
paragraph (a)(1), the applicant or licensee must submit to the Regional
Engineer a written report on the condition affecting the safety of the
project or project works verified in accordance with 12.13. The written
report must be submitted within the time specified by the Regional
Engineer and must contain any information the Regional Engineer directs,
including:
(i) The causes of the condition;
(ii) A description of any unusual occurrences or operating
circumstances preceding the condition;
(iii) An account of any measure taken to prevent worsening of the
condition;
(iv) A detailed description of any damage to project works and the
status of any repair;
(v) A detailed description of any personal injuries;
(vi) A detailed description of the nature and extent of any private
property damages; and
(vii) Any other relevant information requested by the Regional
Engineer.
(3) The level of detail required in any written report must be
commensurate with the severity and complexity of the condition.
(b) Deaths or serious injuries. (1) Promptly after becoming aware of
any drowning or other accident resulting in death or serious injury that
occurs at the project, the applicant or licensee must report that
drowning or other accident to the Regional Engineer in writing,
including a description of the cause and location of the accident.
(2) The written report of any death or serious injury considered or
alleged to be project related must also describe any remedial actions
taken or proposed to avoid or reduce the chance of similar occurrences
in the future and be verified in accordance with 12.13.
(3) Accidents that are not project-related may be reported by
providing a copy of a clipping from a newspaper article, if available.
(4) For the purposes of this paragraph, project-related includes any
deaths or serious injuries involving a dam, spillway, intake, or power
line, or which take place at or immediately above or below a dam.
18 CFR 12.11 Reporting modifications of the project or project works.
(a) Reporting requirement. Regardless of whether a particular
modification is permitted without specific prior Commission approval, an
applicant or licensee must report any modification of the project or
project works to the Regional Engineer in writing, verified in
accordance with 12.13, at the time specified in paragraph (b) of this
section.
(b) Time of reporting. (1) Any modification that is an emergency
measure taken in response to a condition affecting the safety of the
project or project works must be submitted with the report of that
condition required by 12.10(a)(2).
(2) In all other instances, the modification must be reported at
least 60 days before work on the modification begins.
18 CFR 12.12 Maintenance of records.
(a) Kinds of records -- (1) General rule. Except as provided in
paragraph (a)(2) of this section, the applicant or licensee must
maintain as permanent project records in addition to those required in
part 125 of this chapter, the following information:
(i) Engineering and geological data relating to design, construction,
maintenance, repair, or modification of the project, including design
memoranda and drawings, laboratory and other testing reports, geologic
data (such as maps, sections, or logs of exploratory borings or
trenches, foundation treatment, and excavation), plans and
specifications, inspection and quality control reports, as built
construction drawings, designers' operating criteria, photographs, and
any other data necessary to demonstrate that construction, maintenance,
repair, or modification of the project has been performed in accordance
with plans and specifications;
(ii) Instrumentation observations and data collected during
construction, operation, or maintenance of the project, including
continuously maintained tabular records and graphs illustrating the data
collected pursuant to 12.41; and
(iii) The operational and maintenance history of the project,
including:
(A) The dates, times, nature, and causes of any complete or partial
unscheduled shut-down, suspension of project operations, or reservoir
filling restrictions related to the safety of the project or project
works; and
(B) Any reports of project modifications, conditions affecting the
safety of the project or project works, or deaths or serious injuries at
the project.
(2) Exception. The applicant or licensee is not required to maintain
as permanent project records any information specified in paragraph
(a)(1) of this section that was or reasonably would have been prepared
before the applicant or licensee acquired control of the project and
that the applicant or the licensee never acquired or reasonably could
have acquired.
(b) Location of records -- (1) Original records. The applicant or
licensee must maintain the originals of all permanent project records at
a central location, such as the project site or the main business office
of the applicant or licensee, secure from damage from any conceivable
failure of the project works and convenient for inspection. The
applicant or licensee must keep the Regional Engineer advised of the
location of the permanent project records.
(2) Record copies. If the originals of the permanent project records
are maintained at a central location other than the project site, the
applicant or licensee must maintain at the project site copies of at
least the project Exhibit G or L (design drawings), instrumentation
data, and operational history that are necessary to the safe and
efficient operation of the project.
(3) In accordance with the provisions of part 125 of this chapter,
the applicant or licensee may maintain original records, or record
copies at the project site, in microform, if appropriate equipment is
readily available to view the records.
(c) Transfer of records. If the project is taken over by the United
States at the end of a license term or the Commission issues a new
license to a different licensee, the prior licensee must transfer the
originals of all permanent project records to the custody of the
administering Federal agency or department or to the new licensee.
18 CFR 12.13 Verification form.
If a document submitted in accordance with the provisions of this
part must be verified, the form of verification attached to the document
must be the following:
State of ( ),
County of ( ), ss:
The undersigned, being first duly sworn, states that (he, she) has
read the above document and knows the contents of it, and that all of
the statements contained in that document are true and correct, to the
best of (his, her) knowledge and belief.
--
(Name of person signing)
Sworn to and subscribed before me this (day) of (month), (year).
(Seal)
--
(Signature of notary public or other state or local official
authorized by law to notarize documents.)
18 CFR 12.13 Subpart C -- Emergency Action Plans
18 CFR 12.20 General requirements.
(a) Unless provided with a written exemption pursuant to 12.21,
every applicant or licensee must develop and file with the Regional
Engineer three copies of an emergency action plan and appendices,
verified in accordance with 12.13.
(b) The emergency action plan must be:
(1) Developed in consultation and cooperation with appropriate
Federal, state, and local agencies responsible for public health and
safety; and
(2) Designed to provide early warning to upstream and downstream
inhabitants, property owners, operators of water-related facilities,
recreational users, and other persons in the vicinity who might be
affected by a project emergency as defined in 12.3(b)(9).
18 CFR 12.21 Exemptions.
(a) Grant of exemption. Except as provided in paragraph (b), if an
applicant or licensee satisfactorily demonstrates that no reasonably
foreseeable project emergency would endanger life, health, or property,
the Regional Engineer may exempt the applicant or licensee from filing
an emergency action plan.
(b) No exemption. A licensee or applicant may not be exempted from
the requirements of 12.22(c) for a radiological response plan.
(c) Conditions of exemptions. (1) An applicant or licensee who
receives an exemption from filing an emergency action plan has the
continuing responsibility to review circumstances upstream and
downstream from the project to determine if, as a result of changed
circumstances, a project emergency might endanger life, health, or
property.
(2) Promptly after the applicant or licensee learns that, as a result
of any change in circumstances, a project emergency might endanger life,
health, or property, the applicant or licensee must inform the Regional
Engineer of that changed condition without unduly delaying the
preparation and implementation of the emergency action plan.
(3) Comprehensive review of the necessity for an emergency action
plan must be conducted at least once each year.
(d) Revocation of exemption. (1) The Regional Engineer may revoke an
exemption granted under this section if it is determined that, as a
result of any change in circumstances, a project emergency might
endanger life, health, or property.
(2) If an exemption is revoked, the applicant or licensee must file
an emergency action plan within the time specified by the Regional
Engineer.
18 CFR 12.22 Contents of emergency action plan.
(a) Contents -- (1) The plan itself. An emergency action plan must
conform with the guidelines established, and from time to time revised,
by the Director of the Office of Hydropower Licensing (available from
the division of Inspections or the Regional Engineer) to provide:
(i) Instructions to project operators and attendants and other
responsible personnel about the actions they are to take during a
project emergency;
(ii) Detailed plans for notifying potentially affected persons,
appropriate Federal, state, and local agencies, including public safety
and law enforcement bodies, and medical units; and
(iii) Procedures for controlling the flow of water, including actions
to reduce in-flows to reservoirs, such as limiting outflows from
upstream dams or control structures, and actions to reduce downstream
flows, such as increasing or decreasing outflows from downstream dams or
control structures, on the waterway on which the project is located or
its tributaries.
(2) Appendix to the plan. Each copy of the emergency action plan
submitted to the Regional Engineer must be accompanied by an appendix
conforming with the guidelines established by the Director of the Office
of Hydropower Licensing that contains:
(i) Plans for training project operators, attendants, and other
responsible personnel to respond properly during a project emergency,
including instructions on the procedures to be followed throughout a
project emergency and the manner in which the licensee will periodically
review the knowledge and understanding that these personnel have of
those procedures;
(ii) A summary of the study used for determining the upstream and
downstream areas that may be affected by sudden release of water,
including a summary of all criteria and assumptions used in the study
and, if required by the Regional Engineer, inundation maps; and
(iii) Documentation of consultations with Federal, state, and local
agencies, including public safety and law enforcement bodies, and
medical units.
(b) Special factors. The applicant or licensee must take into
account in its emergency action plan the time of day, particularly hours
of darkness, in establishing the proper actions and procedures for use
during a project emergency.
(c) Additional requirements for projects near nuclear power plants.
-- (1) Radiological response plan. If the personnel operating any
powerhouse or any spillway control facilities, such as gates or valves,
of a project would be located within ten miles of a nuclear power plant
reactor, the applicant or licensee must file, separately or as a
supplement to any required emergency action plan, a radiological
response plan that provides for emergency procedures to be taken if an
accident or other incident results in the release of radioactive
materials from the nuclear power plant reactor.
(2) A radiological response plan must:
(i) To the maximum extent practicable, include sufficient procedural
safeguards to ensure that, during or following an accident or other
incident involving the nearby nuclear power plant reactor, the project
may be safely operated and, if evacuation is necessary, the project may
be left unattended without danger to the safety of any project dam or to
life, health, or safety upstream or downstream from the project; and
(ii) Explain the provisions, developed after consultation with the
direct purchasers of project power, for cessation, curtailment, or
continuation of generation of electric power at the project during or
following an accident or other incident involving the nearby nuclear
power plant reactor.
(3) Time of filing radiological response plan. (i) For a constructed
project with an otherwise acceptable emergency action plan on file, any
radiological response plan required must be filed:
(A) If an operating license for the nuclear power plant has been
issued on or before March 1, 1981, not later than three months from
March 1, 1981; or
(B) In all other instances, not later than three months after the
date an operating license for the nuclear power plant is issued.
(ii) For any project not described in 12.22(c)(3)(i), any
radiological response plan required must be filed contemporaneously with
the emergency action plan or, if the project has been exempted from
filing an emergency action plan, at the time the emergency action plan
would otherwise have been required to be filed pursuant to 12.23.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.23 Time for filing emergency action plan.
(a) Unconstructed project. (1) Except as set forth in paragraph
(a)(2), the emergency action plan for an unconstructed project must be
filed no later than 60 days before the initial filling of the project
reservoir begins.
(2) Temporary impoundment during construction. (i) For any
unconstructed project, if a temporary impoundment would be created
during construction, such as through construction of temporary or
permanent cofferdams or large sediment control structures, and an
accident to or failure of the impounding structures might endanger
construction workers or otherwise endanger public health or safety, a
temporary construction emergency action plan must be filed no later than
60 days before construction begins.
(ii) No later than 60 days before the initial filling of a project
reservoir begins at a project for which a temporary emergency action
plan has been filed the applicant or licensee must file modifications to
that plan or a new plan, taking into account the differences in
circumstances between the construction and post-construction periods.
(b) Unlicensed constructed project. (1) If the Commission has
determined on or before March 1, 1981 that a license is required for an
unlicensed constructed project, the emergency action plan for that
project must be filed no later than:
(i) Six months after March 1, 1981; or
(ii) Any earlier date specified by the Commission or its authorized
representative.
(2) Except as set forth in paragraph (b)(1) of this section, the
emergency action plan for an unlicensed constructed project must be
filed no later than the earliest of:
(i) Six months after the date that a license application is filed;
(ii) Six months after the date that the Commission issues an order
determining that licensing is required; or
(iii) A date specified by the Commission or its authorized
representative.
(c) Licensed constructed project. If a licensed constructed project
does not have an acceptable emergency action plan on file on March 1,
1981 the emergency action plan must be filed no later than:
(1) Six months after March 1, 1981; or
(2) Any earlier date specified by the Commission or its authorized
representative.
(d) For good cause shown, the Regional Engineer may grant an
extension of time for filing all or any part of an emergency action
plan.
18 CFR 12.24 Review and updating of plans.
(a) The emergency action plan must be continually updated to reflect
any changes in the names or titles of project operators and attendants
and other personnel with specified responsibilities for actions in an
emergency and any changes in names of persons to call, telephone
numbers, radio call signals, or other information critical to providing
notification to affected persons, Federal, state, and local agencies,
and medical units.
(b) An applicant or licensee has continuing responsibility to review
the adequacy of the emergency action plan in light of any significant
changes in upstream or downstream circumstances which might affect water
flows or the location or extent of the areas, persons, or property that
might be harmed in a project emergency.
(c) Promptly after an applicant or licensee learns of any change in
circumstances described in paragraph (b) of this section, the applicant
or licensee must:
(1) Inform the Regional Engineer of that change in circumstances;
(2) Consult and cooperate with appropriate Federal, state, and local
agencies responsible for public health and safety to determine any
advisable revisions to the emergency action plan; and
(3) File with the Regional Engineer three copies of any revisions to
the appropriate studies, maps, plans, procedures, or other information
in the emergency action plan itself or its appendices that have changed
as a result of that consultation.
(d) An applicant or licensee must conduct a comprehensive review of
the adequacy of the emergency action plan at least once each year.
18 CFR 12.25 Posting and readiness.
(a) A copy of the current emergency action plan itself must be posted
in a prominent location readily accessible to the licensee's or
applicant's operating personnel who are responsible for controlling
water flows and for notifying public health and safety agencies and
affected persons.
(b) Each licensee or applicant must annually test the state of
training and readiness of key licensee or applicant personnel
responsible for responding properly during a project emergency to ensure
that they know and understand the procedures to be followed throughout a
project emergency.
18 CFR 12.25 Subpart D -- Inspection by Independent Consultant
18 CFR 12.30 Applicability.
This subpart applies to any licensed project development that has a
dam:
(a) That is more than 32.8 feet (10 meters) in height above
streambed, as defined in 12.31(c);
(b) That impounds an impoundment with a gross storage capacity of
more than 2,000 acre-feet (2.5 million cubic meters); or
(c) That has a high hazard potential and is determined by the
Regional Engineer or other authorized Commission representative to
require inspection by an independent consultant under this subpart.
18 CFR 12.31 Definitions.
For purposes of this subpart:
(a) Independent consultant means any person who:
(1) Is a licensed professional engineer;
(2) Has at least 10 years experience and expertise in dam design and
construction and in the investigation of the safety of existing dams;
and
(3) Is not, and has not been within two years before being retained
to perform an inspection under this subpart, an employee of the licensee
or its affiliates or an agent acting on behalf of the licensee or its
affiliates.
(b) Dam that has a high hazard potential means any dam whose failure,
in the judgment of the Commission or its authorized representative,
might endanger human life or cause significant property damage, or which
meets the criteria for high hazard potential as defined by the Corps of
Engineers in 33 CFR part 222.
(c) Height above streambed means:
(1) For a dam with a spillway, the vertical distance from the lowest
elevation of the natural streambed at the downstream toe of the dam to
the maximum water storage elevation possible without any discharge from
the spillway. The maximum water storage elevation is:
(i) For gated spillways, the elevation of the tops of the gates;
(ii) For ungated spillways, the elevation of the spillway crest or
the top of any flashboards, whichever is higher;
(2) For a dam without a spillway, the vertical distance from the
lowest elevation of the natural streambed at the downstream tow of the
dam to the lowest point on the crest of the dam.
(d) Gross storage capacity means the maximum possible volume of water
impounded by a dam with zero spill, that is, without the discharge of
water over the dam or a spillway.
(e) The Director of the Office of Hydropower Licensing may, for good
cause shown, grant a waiver of the 10 year requirement in paragraph
(a)(2) of this section. Any petition for waiver under this paragraph
must be filed in accordance with 1.7(b) of this chapter.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.32 General inspection requirement.
In accordance with the procedures in 12.35, the project works of
each development to which this subpart applies, excluding transmission
and transformation facilities and generating equipment, must be
periodically inspected and evaluated by or under the responsibility and
direction of at least one independent consultant, who may be a member of
a consulting firm, to identify any actual or potential deficiencies,
whether in the condition of those project works or in the quality or
adequacy of project maintenance, surveillance, or methods of operation,
that might endanger public safety.
18 CFR 12.33 Exemption.
(a) Upon written request from the licensee, the Director of the
Office of Hydropower Licensing may grant an exemption from the
requirements of this subpart in extraordinary circumstances that clearly
establish good cause for exemption.
(b) Good cause for exemption may include the finding that the
development in question has no dam except dams that meet the criteria
for low hazard potential as defined by the Corps of Engineers in 33 CFR
part 222.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.34 Approval of independent consultant.
At least 60 days before the initiation of an inspection under this
subpart, the licensee must submit to the Director of the Office of
Hydropower Licensing for approval, with a copy to the Regional Engineer,
a detailed resume that (a) describes the experience of the independent
consultant; and, (b) shows that the consultant is an independent
consultant as defined in 12.31(a).
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.35 Specific inspection requirements.
(a) Scope of inspection. The inspection by the independent
consultant shall include:
(1) Due consideration of all relevant reports on the safety of the
development made by or written under the direction of Federal or state
agencies, submitted under Commission regulations, or made by other
consultants;
(2) Physical field inspection of the project works and review and
assessment of all relevant data concerning:
(i) Settlement;
(ii) Movement;
(iii) Erosion;
(iv) Seepage;
(v) Leakage;
(vi) Cracking;
(vii) Deterioration;
(viii) Seismicity;
(ix) Internal stress and hydrostatic pressures in project structures
or their foundations or abutments;
(x) The functioning of foundation drains and relief wells;
(xi) The stability of critical slopes adjacent to a reservoir or
project works; and
(xii) Regional and site geological conditions; and
(3) Specific evaluation of:
(i) The adequacy of spillways;
(ii) The effects of overtopping of nonoverflow structures;
(iii) The structural adequacy and stability of structures under all
credible loading conditions;
(iv) The relevant hydrological data accumulated since the project was
constructed or last inspected under this subpart;
(v) The history of the performance of the project works through
analysis of data from monitoring instruments; and
(vi) The quality and adequacy of maintenance, surveillance, and
methods of project operations for the protection of public safety.
(b) Evaluation of spillway adequacy. The adequacy of any spillway
must be evaluated by considering hazard potential which would result
from failure of the project works during flood flows.
(1) If structural failure would present a hazard to human life or
cause significant property damage, the independent consultant must
evaluate the ability of project works to withstand the loading or
overtopping which may occur from a flood up to the probable maximum
flood or the capacity of spillways to prevent the reservoir from rising
to an elevation that would endanger the project works.
(2) If structural failure would not present a hazard to human life of
cause significant property damage, spillway adequacy may be evaluated by
means of a design flood of lesser magnitude than the probable maximum
flood, if the report of the independent consultant pursuant to 12.37
provides a detailed explanation of the bases for the finding that
structural failure would not present a hazard to human life or cause
significant property damage.
18 CFR 12.36 Emergency corrective measures.
If, in the course of an inspection, an independent consultant
discovers any condition for which emergency corrective measures are
advisable, the independent consultant must immediately notify the
licensee and the licensee must report that condition to the Regional
Engineer pursuant to 12.10(a) of this part.
18 CFR 12.37 Report of the independent consultant.
(a) General requirement. Following inspection of a project
development as required under this subpart, the independent consultant
must prepare a report and the licensee must file three copies of that
report with the Regional Engineer. The report must conform to the
provisions of this section and be satisfactory to the authorized
Commission representative.
(b) General information in the initial report. (1) The initial
report filed under this subpart for any project development must
contain:
(i) A description of the project development;
(ii) A map of the region indicating the location of the project
development;
(iii) Plans, elevations, and sections of the principal project works;
(iv) A summary of the design assumptions, design analyses, spillway
design flood, and the factors of safety used to evaluate the structural
adequacy and stability of the project works; and
(v) A summary of the geological conditions that may affect the safety
of the project works.
(2) To the extent that the information and analyses required in
paragraph (b)(1) of this section, are contained in a report of an
independent consultant prepared and filed in compliance with Commission
regulations in effect before March 1, 1981 the information and analyses
may be incorporated by specific reference into the first report prepared
and filed under this subpart.
(c) Information required for all reports. Any report of an
independent consultant filed under this subpart must contain the
information specified in this paragraph.
(1) Monitoring information. The report must contain monitoring
information that includes time-versus-reading graphs depicting data
compiled from any existing critical or representative monitoring
instruments that measure the behavior, movement, deflection, or loading
of project works or from which the stability, performance, or
functioning of the structures may be determined.
(i) Any monitoring data plotted on graphs must be presented in a
manner that will facilitate identification and analysis of trends. The
data may be summarized to facilitate graphical representation.
(ii) Plan and sectional drawings of project structures sufficient to
show the location of all critical or representative existing monitoring
instruments must be included. If these drawings have been included in a
previous report prepared and filed by an independent consultant, they
may be incorporated by specific reference to that earlier report.
(2) Analyses. The report must:
(i) Analyze the safety of the project works and the maintenance and
methods of operation of the development fully in light of the
independent consultant's reviews, field inspections, assessments, and
evaluations described in 12.35;
(ii) Identify any changes in the information and analyses required by
paragraph (b) of this section that have occurred since the last report
by an independent consultant under this subpart and analyze the
implications of those changes; and
(iii) Analyze the adequacy of existing monitoring instruments,
periodic observation programs, and other methods of monitoring project
works and conditions effecting the safety of the project or project
works with respect to the development.
(3) Incorporation by reference. To the extent that conditions,
assumptions, and available information have not changed since the last
previous report by an independent consultant under this subpart, the
analyses required under paragraphs (c)(2)(i) and (ii) of this section
may be incorporated by specific reference to the last previous report.
(4) Recommendations. Based on the independent consultant's field
observations and evaluations of the project works and the maintenance,
surveillance, and methods of operation of the development, the report
must contain the independent consultant's recommendations on:
(i) Any corrective measures necessary for the structures or for the
maintance or surveillance procedures or methods of operation of the
project works;
(ii) A reasonable time to carry out each corrective measure; and
(iii) Any new or additional monitoring instruments, periodic
observations, or other methods of monitoring project works or conditions
that may be required.
(5) Dissenting views. If the inspection and report were conducted
and prepared by more than one independent consultant, the report must
clearly indicate any dissenting views concerning the analyses or
recommendations of the report that might be held by any individual
consultant.
(6) List of participants. The report must identify all professional
personnel who have participated in the inspection of the project or in
preparation of the report and the independent consultant who directed
those activities.
(7) Statement of independence. The independent consultant must
declare that all conclusions and recommendations in the report are made
independently of the licensee, its employees, and its representatives.
(8) Signature. The report must be signed by each independent
consultant responsible for the report.
18 CFR 12.38 Time for inspections and reports.
(a) General rule. After the initial inspection and report under this
subpart for a project development, a new inspection under this subpart
must be completed and the report on it filed not later than five years
from the date the last report on an inspection was to be filed under
this subpart.
(b) Initial inspection and report. (1) For any development that has
a dam that is more than 32.8 feet (10 meters) in height above streambed
or impounds an impoundment with a gross storage capacity of more than
2,000 acre feet (2.5 million cubic meters), which development was
constructed before the date of issuance of the order licensing or
amending a license to include that development, the initial inspection
under this subpart must be completed and the report on it filed not
later than two years after the date of issuance of the order licensing
the development or amending the license to include the development.
(2) For any development that was constructed after the date of
issuance of the order licensing or amending a license to include the
development, the initial inspection under this subpart must be completed
and the report on it filed not later than five years from the date of
first commercial operation, or the date on which the impoundment first
reaches its normal maximum surface elevation, whichever occurs first.
(3) For any development not set forth in either subparagraph (b)(1)
or (b)(2), the initial inspection under this subpart must be completed
and the report on it filed by a date specified by the Regional Engineer.
The filing date must not be more than two years after the date of
notification that an inspection and report under this subpart are
required.
(4) The last independent consultant's inspection and report made for
a development before March 1, 1981 in compliance with the Commission's
rules then in effect is deemed to fulfill the requirements for an
initial inspection and report under this subpart for that development,
except that the first report filed under this subpart for that
development after March 1, 1981 must contain the information and
analyses required by 12.37(b).
(c) Extension of time. For good cause shown, the Regional Engineer
may extend the time for filing an independent consultant's report under
this subpart.
18 CFR 12.39 Taking corrective measures after the report.
(a) Corrective plan and schedule. (1) Not later than 60 days after
the report of the independent consultant is filed with the Regional
Engineer, the licensee must submit to the Regional Engineer three copies
of a plan and schedule for designing and carrying out any corrective
measures that the licensee proposes.
(2) The plan and schedule may include any proposal, including taking
no action, that the licensee considers a preferable alternative to any
corrective measure recommended in the report of the independent
consultant. Any proposed alternative must be accompanied by the
licensee's complete justification and detailed analysis and evaluation
in support of that alternative.
(b) Carrying out the plan. The licensee must complete all corrective
measures in accordance with the plan and schedule submitted to, and
approved or modified by, the Regional Engineer.
(c) Extension of time. For good cause shown, the Regional Engineer
may extend the time for filing the plan and schedule required by this
section.
18 CFR 12.39 Subpart E -- Other Responsibilities of Applicant or Licensee
18 CFR 12.40 Quality control programs.
(a) General rule. During any construction, repair, or modification
of project works, including any corrective measures taken pursuant to
12.39 of this part, the applicant or licensee must maintain any quality
control program that may be required by the Regional Engineer,
commensurate with the scope of the work and meeting any requirements or
standards set by the Regional Engineer. If a quality control program is
required, the construction, repair, or modification may not begin until
the Regional Engineer has approved the program.
(b) If the construction, repair, or modification work is performed by
a construction contractor, quality control inspection must be performed
by the licensee, the design engineer, or an independent firm, other than
the construction contractor, directly accountable to the licensee. This
paragraph is not intended to prohibit additional quality control
inspections by the construction contractor, or a firm accountable to the
construction contractor, for the construction contractor's purposes.
(c) If the construction, repair, or modification of project works is
performed by the applicant's or licensee's own personnel, the applicant
or licensee must provide for separation of authority within its
organization to make certain that the personnel responsible for quality
control inspection are, to the satisfaction of the Regional Engineer or
other authorized Commission representative, independent from the
personnel who are responsible for the construction, repair or
modification.
18 CFR 12.41 Monitoring instruments.
(a) In designing a project, a licensee must make adequate provision
for installing and maintaining appropriate monitoring instrumentation
whenever any physical condition that might affect the stability of a
project structure has been discovered or is anticipated. The
instrumentation must be satisfactory to the Regional Engineer and may
include, for example, instruments to monitor movement of joints,
foundation or embankment deformation, seismic effects, hydrostatic pore
pressures, structural cracking, or internal stresses on the structure.
(b) If an applicant or licensee discovers any condition affecting the
safety of the project or project works during the course of construction
or operation, the applicant or licensee must install and maintain any
monitoring devices and instruments that may be required by the Regional
Engineer or other authorized Commission representative to monitor that
condition.
18 CFR 12.42 Warning and safety devices.
To the satisfaction of, and within a time specified by, the Regional
Engineer, an applicant or licensee must install, operate, and maintain
any signs, lights, sirens, barriers, or other safety devices that may
reasonably be necessary or desirable to warn the public of fluctuations
in flow from the project or otherwise to protect the public in the use
of project lands and waters.
18 CFR 12.43 Power and communication lines and gas pipelines.
(a) A licensee must take all reasonable precautions, and comply with
all reasonable specifications that may be provided by the Regional
Engineer, to ensure that any power or communication line or gas pipeline
that is located over, under, or in project waters does not obstruct
navigation for recreational or commercial purposes or otherwise endanger
public safety.
(b) Clearances between any power or communication line constructed
after March 1, 1981 and any vessels using project waters must be at
least sufficient to conform to any applicable requirements of the
National Electrical Safety Code in effect at the time the power or
communication line is constructed.
(c) The Regional Engineer may require a licensee or applicant to
provide signs at or near power or communication lines to advise the
public of the clearances for any power or communication lines located
over, under, or in project waters.
18 CFR 12.44 Testing spillway gates.
(a) General requirement. An applicant or licensee must make adequate
provision, to the satisfaction of the Regional Engineer or other
authorized Commission representative, to ensure that all spillway gates
are operable at all times, particularly during adverse weather
conditions.
(b) Annual test. (1) At least once each year, each spillway gate at
a project must be operated to spill water, either during regular project
operation or on a test basis.
(2) If an applicant or licensee does not operate each spillway gate
on a test basis during the periodic inspection by the Commission staff,
the applicant or licensee must submit to the Regional Engineer at least
once each year a written statement, verified in accordance with 12.13,
that each spillway has been operated at least once during the twelve
months preceding the inspection.
(c) Load-test of standby power. (1) An applicant or licensee must
load-test the standby emergency power for spillway gate operation at
regular intervals, but not less than once during each year, and submit
to the Regional Engineer, at least once each year, a written statement,
verified in accordance with 12.13, describing the intervals at which
the standby emergency power was load-tested during the year preceding
the inspection.
(2) The Commission staff may direct that a spillway gate be operated
using standby emergency power during the periodic inspection.
18 CFR 12.44 PART 16 -- PROCEDURES RELATING TO TAKEOVER AND RELICENSING OF LICENSED PROJECTS
18 CFR 12.44 Subpart A -- General Provisions
Sec.
16.1 Applicability.
16.2 Definitions.
16.3 Public notice of projects under expiring licenses.
16.4 Acceleration of a license expiration date.
16.5 Site access for a competing applicant.
18 CFR 12.44 Subpart B -- Applications for Projects Subject to Sections
14 and 15 of the Federal Power Act
16.6 Notification procedures under section 15 of the Federal Power
Act.
16.7 Information to be made available to the public at the time of
notification of intent under section 15(b) of the Federal Power Act.
16.8 Consultation requirements.
16.9 Applications for new licenses and nonpower licenses for projects
subject to sections 14 and 15 of the Federal Power Act.
16.10 Information to be provided by an applicant for new license:
Filing requirements.
16.11 Nonpower licenses.
16.12 Application for exemption from licensing by a licensee whose
license is subject to sections 14 and 15 of the Federal Power Act.
16.13 Standards and factors for issuing a new license.
18 CFR 12.44 Subpart C -- Takeover Provisions for Projects Subject to
Sections 14 and 15 of the Federal Power Act
16.14 Departmental recommendation for takeover.
16.15 Commission recommendation to Congress.
16.16 Motion for stay by Federal department or agency.
16.17 Procedures upon Congressional authorization of takeover.
18 CFR 12.44 Subpart D -- Annual Licenses for Projects Subject to
Sections 14 and 15 of the Federal Power Act
16.18 Annual licenses for projects subject to sections 14 and 15 of
the Federal Power Act.
18 CFR 12.44 Subpart E -- Projects With Minor and Minor Part Licenses
Not Subject to Sections 14 and 15 of the Federal Power Act
16.19 Procedures for an existing licensee of a minor hydroelectric
power project or of a minor part of a hydroelectric power project with a
license not subject to sections 14 and 15 of the Federal Power Act.
16.20 Applications for subsequent license for a project with an
expiring license not subject to sections 14 and 15 of the Federal Power
Act.
16.21 Operation of projects with a minor or minor part license not
subject to sections 14 and 15 of the Federal Power Act after expiration
of a license.
16.22 Application for an exemption by a license with a minor or minor
part license for a project not subject to sections 14 and 15 of the
Federal Power Act.
18 CFR 12.44 Subpart F -- Procedural Matters
16.23 Failure to file timely notices of intent.
16.24 Prohibitions against filing applications for new license,
nonpower license, exemption, or subsequent license.
16.25 Disposition of a project for which no timely application is
filed following a notice of intent to file.
16.26 Disposition of a project for which no timely application is
filed following a notice of intent not to file.
Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352; E.O. 12009,
3 CFR, 1978 Comp., p. 142.
Source: Order 513, 54 FR 23806, June 2, 1989, unless otherwise
noted.
18 CFR 12.44 Subpart A -- General Provisions
18 CFR 16.1 Applicability.
This part applies to the filing and processing of an application for:
(a) A new license, a nonpower license, or an exemption from licensing
for a hydroelectric project with an existing license subject to the
provisions of sections 14 and 15 of the Federal Power Act.
(b) A subsequent license or an exemption from licensing for a
hydroelectric project with an existing minor license or minor part
license not subject to the provisions of sections 14 and 15 of the
Federal Power Act because those sections were waived pursuant to section
10(i) of the Federal Power Act.
18 CFR 16.2 Definitions.
For purposes of this part:
(a) New license means a license, except an annual license, for a
water power project that is issued under section 15(a) of the Federal
Power Act after an original license expires.
(b) New license application filing deadline, as provided in section
15(c)(1) of the Federal Power Act, is the date 24 months before the
expiration of an existing license.
(c) Nonpower license means a license for a nonpower project issued
under section 15(b) of the Federal Power Act.
(d) Subsequent license means a license for a water power project
issued under Part I of the Federal Power Act after a minor or minor part
license that is not subject to sections 14 and 15 of the Federal Power
Act expires.
(Order 513, 54 FR 23806, June 2, 1989, as amended by Order 513-A, 55
FR 15, Jan. 2, 1990; Order 533, 56 FR 23154, May 20, 1991)
18 CFR 16.3 Public notice of projects under expiring licenses.
In addition to the notice of a licensee's intent to file or not to
file an application for a new license provided in 16.6(d), the
Commission will publish, in its annual report and annually in the
Federal Register, a table showing the projects whose licenses will
expire during the succeeding six years. The table will:
(a) List the licenses according to their expiration dates; and
(b) Contain the following information: license expiration date;
licensee's name; project number; type of principal project works
licensed, e.g., dam and reservoir, powerhouse, transmission lines;
location by state, county, and stream; location by city or nearby city
when appropriate; whether the existing license is subject to sections
14 and 15 of the Federal Power Act; and plant installed capacity.
18 CFR 16.4 Acceleration of a license expiration date.
(a) Request for acceleration. (1) A licensee may file with the
Commission, in accordance with the formal filing requirements in subpart
T of part 385 of this chapter, a written request for acceleration of the
expiration date of its existing license, containing the statements and
information specified in 16.6(b) and a detailed explanation of the
basis for the acceleration request.
(2) If the Commission grants the request for acceleration pursuant to
paragraph (c), the Commission will deem the request for acceleration to
be a notice of intent under 16.6 and, unless the Commission directs
otherwise, the licensee shall make available the information specified
in 16.7 no later than 90 days from the date that the Commission grants
the request for acceleration.
(b) Notice of request for acceleration. (1) Upon receipt of a
request for acceleration, the Commission will give notice of the
licensee's request and provide a 45-day period for comments by
interested persons by:
(i) Publishing notice in the Federal Register;
(ii) Publishing notice once in a daily or weekly newspaper published
in the county or counties in which the project or any part thereof or
the lands affected thereby are situated; and
(iii) Notifying appropriate Federal, state, and interstate resource
agencies and Indian tribes by mail.
(2) The notice issued pursuant to paragraphs (1) (i) and (ii) and the
written notice given pursuant to paragraph (1)(iii) will be considered
as fulfilling the notice provisions of 16.6(d) should the Commission
grant the acceleration request and will include an explanation of the
basis for the licensee's acceleration request.
(c) Commission order. If the Commission determines it is in the
public interest, the Commission will issue an order accelerating the
expiration date of the license to not less than five years and 90 days
from the date of the Commission order.
18 CFR 16.5 Site access for a competing applicant.
(a) Access. If a potential applicant for a new license, subsequent
license, or nonpower license for a project has complied with the first
stage consultation provisions of 16.8(b)(1) and has notified the
existing licensee in writing of the need for and extent of the access
required, the existing licensee must allow the potential applicant to
enter upon or into designated land, buildings, or other property in the
project area at a reasonable time and under reasonable conditions,
including, but not limited to, reasonable liability conditions,
conditions for compensation to the existing licensee for all reasonable
costs incurred in providing access, including energy generation lost as
a result of modification of project operations that may be necessary to
provide access, and in a manner that will not adversely affect the
environment, for the purposes of:
(1) Conducting a study or gathering information required by a
resource agency under 16.8 or by the Commission pursuant to 4.32 of
this chapter;
(2) Conducting a study or gathering information not covered by
paragraph (a)(1) but necessary to prepare an application for new
license, subsequent license, or nonpower license; or
(3) Holding a site visit for a resource agency under 16.8.
(b)(1) Disputes. Except as specified by paragraph (b)(2), disputes
regarding the timing and conditions of access for the purposes specified
in paragraphs (a) (1), (2), or (3) of this section and the need for the
studies or information specified in paragraph (a)(2) may be referred to
the Director of the Office of Hydropower Licensing for resolution in the
manner specified in 16.8(b)(5) prior to the providing of access.
(2) Disputes regarding the amount of compensation to be paid the
existing licensee for access may be referred to the Director of the
Office of Hydropower Licensing for resolution in the manner specified in
16.8(b)(5) after the access has been provided.
18 CFR 16.5 Subpart B -- Applications for Projects Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.6 Notification procedures under section 15 of the Federal
Power Act.
(a) Applicability. This section applies to a licensee of an existing
project subject to sections 14 and 15 of the Federal Power Act.
(b) Requirement to notify. In order to notify the Commission under
section 15 of the Federal Power Act whether a licensee intends to file
or not to file an application for new license, the licensee must file
with the Commission an original and fourteen copies of a letter, that
contains the following information:
(1) The licensee's name and address.
(2) The project number.
(3) The license expiration date.
(4) An unequivocal statement of the licensee's intention to file or
not to file an application for a new license.
(5) The type of principal project works licensed, such as dam and
reservoir, powerhouse, or transmission lines.
(6) Whether the application is for a power or nonpower license.
(7) The location of the project by state, county and stream, and,
when appropriate, by city or nearby city.
(8) The installed plant capacity.
(9) The location or locations of all the sites where the information
required under 16.16 is available to the public.
(10) The names and mailing addresses of:
(i) Every county in which any part of the project is located, and in
which any Federal facility that is used by the project is located;
(ii) Every city, town, Indian tribe, or similar local political
subdivision:
(A) In which any part of the project is located and any Federal
facility that is used by the project is located, or
(B) That has a population of 5,000 or more people and is located
within 15 miles of the project dam,
(iii) Every irrigation district, drainage district, or similar
special purpose political subdivision:
(A) In which any part of the project is located and any Federal
facility that is used by the project is located, or
(B) That owns, operates, maintains, or uses any project facility or
any Federal facility that is used by the project; and
(iv) Every other political subdivision in the general area of the
project that there is reason to believe would be likely to be interested
in, or affected by, the notification.
(c) When to notify. (1) Except as provided in paragraph (c)(2) of
this section, if a license expires on or after October 17, 1992, the
licensee must notify the Commission as required in paragraph (b) of this
section at least five years, but no more than five and one-half years,
before the existing license expires.
(2) The requirement in paragraph (c)(1) of this section does not
apply if a licensee filed notice more than five and one-half years
before its existing license expired and before the effective date of
this rule.
(d) Commission notice. Upon receipt of the notification required
under paragraph (b) of this section, the Commission will provide notice
of the licensee's intent to file or not to file an application for a new
license by:
(1) Publishing notice in the Federal Register;
(2) Publishing notice once in a daily or weekly newspaper published
in the county or counties in which the project or any part thereof or
the lands affected thereby are situated; and
(3) Notifying appropriate Federal and state resource agencies and
Indian tribes by mail.
(Order 496, 53 FR 15810, May 4, 1988. Redesignated and amended by
Order 513, 54 FR 23807, June 2, 1989)
18 CFR 16.7 Information to be made available to the public at the time
of notification of intent under section 15(b) of the Federal Power Act.
(a) Applicability. This section applies to a licensee of an existing
project subject to sections 14 and 15 of the Federal Power Act.
(b) Requirement to make information available. A licensee must make
the information specified in paragraph (d) of this section reasonably
available to the public for inspection and reproduction, from the date
on which the licensee notifies the Commission pursuant to 16.6(b) of
this part until the date any relicensing proceeding for the project is
terminated.
(c) Requirement to supplement information. A licensee must
supplement the information it is required to make available under the
provisions of paragraph (d) with any additional information developed
after the filing of a notice of intent.
(d) Information to be made available. A licensee must make the
following information regarding its existing project reasonably
available to the public as provided in paragraph (b) of this section:
(1) The following construction and operation information:
(i) The original license application and the order issuing the
license and any subsequent license application and subsequent order
issuing a license for the existing project, including
(A) Approved Exhibit drawings, including as-built exhibits,
(B) Any order issuing amendments or approving exhibits, and
(C) Any order issuing annual licenses for the existing project;
(ii) All data relevant to whether the project is and has been
operated in accordance with the requirements of each license article,
including minimum flow requirements, ramping rates, reservoir elevation
limitations, and environmental monitoring data;
(iii) A compilation of project generation and respective outflow with
time increments not to exceed one hour, unless use of another time
increment can be justified, for the period beginning five years before
the filing of a notice of intent;
(iv) Any public correspondence relating to the existing project;
(v) Any report on the total actual annual generation and annual
operation and maintenance costs for the period beginning five years
before the filing of a notice of intent;
(vi) Any reports on original project costs, current net investment,
and available funds in the amortization reserve account;
(vii) A current and complete electrical single-line diagram of the
project showing the transfer of electricity from the project to the area
utility system or point of use; and
(viii) Any bill issued to the existing licensee for annual charges
under section 10(e) of the Federal Power Act.
(2) The following safety and structural adequacy information:
(i) The most recent emergency action plan for the project or a letter
exempting the project from the emergency action plan requirement;
(ii) Any independent consultant's reports required by part 12 of the
Commission's regulations and filed on or after January 1, 1981;
(iii) Any report on operation or maintenance problems, other than
routine maintenance, occurring within the five years preceding the
filing of a notice of intent or within the most recent five-year period
for which data exists, and associated costs of such problems under the
Commission's Uniform System of Accounts;
(iv) Any construction report for the existing project; and
(v) Any public correspondence relating to the safety and structural
adequacy of the existing project.
(3) The following fish and wildlife resources information:
(i) Any report on the impact of the project's construction and
operation on fish and wildlife resources;
(ii) Any existing report on any threatened or endangered species or
critical habitat located in the project area, or affected by the
existing project outside the project area;
(iii) Any fish and wildlife management plan related to the project
area prepared by the existing licensee or any resource agency; and
(iv) Any public correspondence relating to the fish and wildlife
resources within the project area.
(4) The following recreation and land use resources information:
(i) Any report on past and current recreational uses of the project
area;
(ii) Any map showing recreational facilities and areas reserved for
future development in the project area, designated or proposed
wilderness areas in the project area, Land and Conservation Fund lands
in the project area, and designated or proposed Federal or state wild
and scenic river corridors in the project area;
(iii) Any documentation listing the entity responsible for operating
and maintaining any existing recreational facilities in the project
area; and
(iv) Any public correspondence relating to recreation and land use
resources within the project area.
(5) The following cultural resources information:
(i) Except as provided in paragraph (d)(5)(ii) of this section, a
licensee must make available:
(A) Any report concerning documented archaeological resources
identified in the project area;
(B) Any report on past or present use of the project area and
surrounding areas by Native Americans; and
(C) Any public correspondence relating to cultural resources within
the project area.
(ii) A licensee must delete from any information made available under
paragraph (d)(5)(i) of this section, specific site or property locations
the disclosure of which would create a risk of harm, theft, or
destruction of archaeological or Native American cultural resources or
to the site at which the resources are located, or would violate any
Federal law, including the Archaeological Resources Protection Act of
1979, 16 U.S.C. 470w-3, and the National Historic Preservation Act of
1966, 16 U.S.C. 470hh.
(6) The following energy conservation information under section
10(a)(2)(C) of the Federal Power Act, related to the licensee's efforts
to conserve electricity or to encourage conservation by its customers
including:
(i) Any plan of the licensee;
(ii) Any public correspondence; and
(iii) Any other pertinent information relating to a conservation
plan.
(e) Form, place, and hours of availability, and cost of reproduction.
(1) A licensee must make the information specified in paragraph (d) of
this section available to the public for inspection:
(i) At its principal place of business or at any other location or
locations that are more accessible to the public, provided that all of
the information is available in at least one location;
(ii) During regular business hours; and
(iii) In a form that is readily accessible, reviewable, and
reproducible.
(2) Except as provided in paragraph (d)(3) of this section, a
licensee must make requested copies of the information specified in
paragraph (c) of this section available either:
(i) At its principal place of business or at any other location or
locations that are more accessible to the public, after obtaining
reimbursement for reasonable costs of reproduction; or
(ii) Through the mail, after obtaining reimbursement for postage fees
and reasonable costs of reproduction.
(3) A licensee must make requested copies of the information
specified in paragraph (d) of this section available to the United
States Fish and Wildlife Service, the National Marine Fisheries Service,
and the state agency responsible for fish and wildlife resources without
charge for the costs of reproduction or postage.
(f) Unavailability of required information. Anyone may file a
petition with the Commission requesting access to the information
specified in paragraph (d) of this section if it believes that a
licensee is not making the information reasonably available for public
inspection or reproduction. The petition must describe in detail the
basis for the petitioner's belief.
(g) Public correspondence. A licensee may compile and make available
in one file all the public correspondence required to be made available
for inspection and reproduction by 16.16(d)(1)(iv), (d)(2)(v),
(d)(3)(iv), (d)(4)(iv), and (d)(6)(ii).
(Order 496, 53 FR 15810, May 4, 1988. Redesignated by Order 513, 54
FR 23807, June 2, 1989; Order 513-C, 55 FR 10768, Mar. 23, 1990)
18 CFR 16.8 Consultation requirements.
(a) Requirement to consult. (1) Before it files any application for
a new license, a nonpower license, an exemption from licensing, or,
pursuant to 16.25 or 16.26 of this part, a surrender of a project, a
potential applicant must consult with the relevant Federal, State, and
interstate resource agencies, including the National Marine Fisheries
Service, the United States Fish and Wildlife Service, the National Park
Service, the United States Environmental Protection Agency, the Federal
agency administering any United States lands or facilities utilized or
occupied by the project, the appropriate state fish and wildlife
agencies, the appropriate State water resource management agencies, the
certifying agency under section 401(a)(1) of the Federal Water Pollution
Control Act (Clean Water Act), 33 U.S.C. 1341(c)(1), and any Indian
tribe that may be affected by the project.
(2) The Director of the Office of Hydropower Licensing or the
Regional Director responsible for the area in which the project is
located will, upon request, provide a list of known appropriate Federal,
state, and interstate resource agencies and Indian tribes.
(3)(i) Before it files an amendment that would be considered as
material under 4.35 of this part, to any application subject to this
section, an applicant must consult with the resource agencies and Indian
tribes listed in paragraph (a)(1) of this section and allow such
agencies and tribes at least 60 days to comment on a draft of the
proposed amendment and to submit recommendations and conditions to the
applicant. The amendment as filed with the Commission must summarize
the consultation with the resource agencies and Indian tribes on the
proposed amendment and respond to any obligations, recommendations or
conditions submitted by the agencies or Indian tribes.
(ii) If an applicant has any doubt as to whether a particular
amendment would be subject to the pre-filing consultation requirements
of this section, the applicant may file a written request for
clarification with the Director, Office of Hydropower Licensing.
(b) First stage of consultation. (1) A potential applicant must
provide each of the appropriate resource agencies and Indian tribes,
listed in paragraph (a)(1) of this section, and the Commission with the
following information:
(i) Detailed maps showing existing project boundaries, if any, proper
land descriptions of the entire project area by township, range, and
section, as well as by state, county, river, river mile, and closest
town, and also showing the specific location of all existing and
proposed project facilities, including roads, transmission lines, and
any other appurtenant facilities;
(ii) A general engineering design of the existing project and any
proposed changes, with a description of any existing or proposed
diversion of a stream through a canal or a penstock;
(iii) A summary of the existing operational mode of the project and
any proposed changes;
(iv) Identification of the environment affected or to be affected,
the significant resources present and the applicant's existing and
proposed environmental protection, mitigation, and enhancement plans, to
the extent known at that time;
(v) Streamflow and water regime information, both existing and
proposed, including drainage area, natural flow periodicity, monthly
flow rates and durations, mean flow figures illustrating the mean daily
streamflow curve for each month of the year at the point of diversion or
impoundment, with location of the stream gauging station, the method
used to generate the streamflow data provided, and copies of all records
used to derive the flow data used in the applicant's engineering
calculations;
(vi) Detailed descriptions of any proposed studies and the proposed
methodologies to be employed; and
(vii) Any statement required by 4.301(a) of this chapter.
(2) Not earlier than 30 days, but not later than 60 days, from the
date of the potential applicant's letter transmitting the information to
the agencies and Indian tribes under paragraph (b)(1) of this section,
the potential applicant will:
(i) Hold a joint meeting, including an opportunity for a site visit,
with all pertinent agencies and Indian tribes to review the information
and to discuss the data and studies to be provided by the potential
applicant as part of the consultation process; and
(ii) Consult with the resource agencies and Indian tribes on the
scheduling of the joint meeting and provide each resource agency, Indian
tribe, and the Commission with written notice of the time and place of
the joint meeting and a written agenda of the issues to be discussed at
the meeting at least 15 days in advance.
(3) Members of the public are invited to attend the joint meeting
held pursuant to paragraph (b)(2)(i) of this section. Members of the
public attending the meeting are entitled to participate fully in the
meeting and to express their views regarding resource issues that should
be addressed in any application for new license that may be filed by the
potential applicant. Attendance of the public at any site visit held
pursuant to paragraph (b)(2)(i) shall be at the discretion of the
potential applicant. The potential applicant must make either audio
recordings or written transcripts of the joint meeting, and must upon
request promptly provide copies of these recordings or transcripts to
the Commission and any resource agency and Indian tribe.
(4) Unless otherwise extended by the Director of the Office of
Hydropower Licensing pursuant to paragraph (b)(5) of this section, not
later than 60 days after the joint meeting held under paragraph (b)(2)
of this section each interested resource agency and Indian tribe must
provide a potential applicant with written comments:
(i) Identifying its determination of necessary studies to be
performed or information to be provided by the potential applicant;
(ii) Identifying the basis for its determination;
(iii) Discussing its understanding of the resource issues and its
goals and objectives for these resources;
(iv) Explaining why each study methodology recommended by it is more
appropriate than other available methodology alternatives, including
those identified by the potential applicant pursuant to paragraph
(b)(1)(vi) of this section;
(v) Documenting that the use of each study methodology recommended by
it is a generally accepted practice, and
(vi) Explaining how the studies and information requested will be
useful to the agency or Indian tribe in furthering its resource goals
and objectives.
(5)(i) If a potential applicant and a resource agency or Indian tribe
disagree as to any matter arising during the first stage of consultation
or as to the need to conduct a study or gather information referenced in
paragraph (c)(2) of this section, the potential applicant or resource
agency or Indian tribe may refer the dispute in writing to the Director
of the Office of Hydropower Licensing for resolution.
(ii) The entity referring the dispute must serve a copy of its
written request for resolution on the disagreeing party at the time the
request is submitted to the Director. The disagreeing party may submit
to the Director of the Office of Hydropower Licensing a written response
to the referral within 15 days of the referral's submittal to the
Director.
(iii) Written referrals to the Director of the Office of Hydropower
Licensing and written responses thereto pursuant to paragraphs (b)(5)(i)
or (b)(5)(ii) of this section must be filed with the Secretary of the
Commission in accordance with the Commission's Rules of Practice and
Procedure, and must indicate that they are for the attention of the
Director of the Office of Hydropower Licensing pursuant to 16.8(b)(5).
(iv) The Director of the Office of Hydropower Licensing will resolve
disputes by letter provided to the potential applicant and the
disagreeing resource agency or Indian tribe.
(v) If a potential applicant does not refer a dispute regarding a
request for information (other than a dispute regarding the information
specified in paragraph (b)(1) of this section) or a study to the
Director under paragraph (b)(5)(i) of this section or if a potential
applicant disagrees with the Director's resolution of a dispute
regarding a request for information (other than a dispute regarding the
information specified in paragraph (b)(1) of this section) or a study,
and if the potential applicant does not provide the requested
information or conduct the requested study, the potential applicant must
fully explain the basis for its disagreement in its application.
(vi) Filing and acceptance of an application will not be delayed, and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2) of this chapter, merely because the
application does not include a particular study or particular
information if the Director of the Office of Hydropower Licensing had
previously found, under paragraph (b)(5)(iv) of this section, that such
study or information was unreasonable or unnecessary.
(6) Unless otherwise extended by the Director of the Office of
Hydropower Licensing pursuant to paragraph (b)(5) of this section, the
first stage of consultation ends when all participating agencies and
Indian tribes provide the written comments required under paragraph
(b)(4) of this section or 60 days after the joint meeting under
paragraph (b)(2) of this section, whichever occurs first.
(c) Second stage of consultation. (1) Unless determined otherwise by
the Director of the Office of Hydropower Licensing pursuant to paragraph
(b)(5) of this section, a potential applicant must complete all
reasonable and necessary studies and obtain all reasonable and necessary
information requested by resource agencies and Indian tribes under
paragraph (b):
(i) Prior to filing the application, if the results:
(A) Would influence the financial (e.g., instream flow study) or
technical feasibility of the project (e.g., study of potential mass soil
movement); or
(B) Are needed to determine the design or location of project
features, reasonable alternatives to the project, the impact of the
project on important natural or cultural resources (e.g., resource
surveys), suitable mitigation or enhancement measures, or to minimize
impact on significant resources (e.g., wild and scenic river, anadromous
fish, endangered species, caribou migration routes);
(ii) After filing the application but before license issuance, if the
applicant complied with the provisions of paragraph (b)(1) of this
section no later than four years prior to the expiration date of the
existing license and the results:
(A) Would be those described in paragraphs (c)(1)(i) (A) or (B) of
this section; and
(B) Would take longer to conduct and evaluate than the time between
the conclusion of the first stage of consultation and the new license
application filing deadline.
(iii) After a new license is issued, if the studies can be conducted
or the information obtained only after construction or operation of
proposed facilities, would determine the success of protection,
mitigation, or enhancement measures (e.g., post-construction monitoring
studies), or would be used to refine project operation or modify project
facilities.
(2) If, after the end of the first stage of consultation as defined
in paragraph (b)(6) of this section, a resource agency or Indian tribe
requests that the potential applicant conduct a study or gather
information not previously identified and specifies the basis for its
request, under paragraphs (b)(4)(i)-(vi) of this section, the potential
applicant will promptly initiate the study or gather the information,
unless the Director of the Office of Hydropower Licensing determines
under paragraph (b)(5) of this section either that the study or
information is unreasonable or unnecessary or that use of the
methodology requested by a resource agency or Indian tribe for
conducting the study is not a generally accepted practice.
(3) (i) The results of studies and information gathering referenced
in paragraphs (c)(1)(ii) and (c)(2) of this section will be treated as
additional information; and
(ii) Filing and acceptance of an application will not be delayed and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2) of this chapter merely because the
study or information gathering is not complete before the application is
filed.
(4) A potential applicant must provide each resource agency and
Indian tribe with:
(i) A copy of its draft application that:
(A) Indicates the type of application the potential applicant expects
to file with the Commission; and
(B) Responds to any comments and recommendations made by any resource
agency or Indian tribe either during the first stage of consultation or
under paragraph (c)(2) of this section;
(ii) The results of all studies and information gathering either
requested by that resource agency or Indian tribe in the first stage of
consultation (or under paragraph (c)(2) of this section if available) or
which pertains to resources of interest to that resource agency or
Indian tribe and which were identified by the potential applicant
pursuant to paragraph (b)(1)(vi) of this section, including a discussion
of the results and any proposed protection, mitigation, or enhancement
measure; and
(iii) A written request for review and comment.
(5) A resource agency or Indian tribe will have 90 days from the date
of the potential applicant's letter transmitting the paragraph (c)(4) of
this section information to it to provide written comments on the
information submitted by a potential applicant under paragraph (c)(4) of
this section.
(6) If the written comments provided under paragraph (c)(5) of this
section indicate that a resource agency or Indian tribe has a
substantive disagreement with a potential applicant's conclusions
regarding resource impacts or its proposed protection, mitigation, or
enhancement measures, the potential applicant will:
(i) Hold at least one joint meeting with the disagreeing resource
agency or Indian tribe and other agencies with similar or related areas
of interest, expertise, or responsibility not later than 60 days from
the date of the disagreeing agency's or Indian tribe's written comments
to discuss and to attempt to reach agreement on its plan for
environmental protection, mitigation, or enhancement measures; and
(ii) Consult with the disagreeing agency or Indian tribe and other
agencies with similar or related areas of interest, expertise, or
responsibility on the scheduling of the joint meeting and provide the
disagreeing resource agency or Indian tribe, other agencies with similar
or related areas of interest, expertise, or responsibility, and the
Commission with written notice of the time and place of each meeting and
a written agenda of the issues to be discussed at the meeting at least
15 days in advance.
(7) The potential applicant and any disagreeing resource agency or
Indian tribe may conclude a joint meeting with a document embodying any
agreement among them regarding environmental protection, mitigation, or
enhancement measures and any issues that are unresolved.
(8) The potential applicant must describe all disagreements with a
resource agency or Indian tribe on technical or environmental
protection, mitigation, or enhancement measures in its application,
including an explanation of the basis for the applicant's disagreement
with the resource agency or Indian tribe, and must include in its
application any document developed pursuant to paragraph (c)(7) of this
section.
(9) A potential applicant may file an application with the Commission
if:
(i) It has complied with paragraph (c)(4) of this section and no
resource agency or Indian tribe has responded with substantive
disagreements by the deadline specified in paragraph (c)(5) of this
section; or
(ii) It has complied with paragraph (c)(6) of this section if any
resource agency or Indian tribe has responded with substantive
disagreements.
(10) The second stage of consultation ends:
(i) Ninety days after the submittal of information pursuant to
paragraph (c)(4) of this section in cases where no resource agency or
Indian tribe has responded with substantive disagreements; or
(ii) At the conclusion of the last joint meeting held pursuant to
paragraph (c)(6) of this section in cases where a resource agency or
Indian tribe has responded with substantive disagreements.
(d) Third stage of consultation. (1) The third stage of consultation
is initiated by the filing of an application for a new license, nonpower
license, exemption from licensing, or surrender of license, accompanied
by a transmittal letter certifying that at the same time copies of the
application are being mailed to the resource agencies, Indian tribes,
and other government offices specified in paragraph (d)(2) of this
section and 16.10(f) of this part, if applicable.
(2) As soon as an applicant files such application documents with the
Commission, or promptly after receipt in the case of documents described
in paragraph (d)(2)(iii) of this section, as the Commission may direct,
the applicant must serve on every resource agency and Indian tribe
consulted, on other government offices, and, in the case of applications
for surrender or nonpower license, any state, municipal, interstate, or
Federal agency which is authorized to assume regulatory supervision over
the land, waterways, and facilities covered by the application for
surrender or nonpower license, copies of:
(i) Its application for a new license, a nonpower license, an
exemption from licensing, or a surrender of the project;
(ii) Any deficiency correction, revision, supplement, response to
additional information request, or amendment to the application; and
(iii) Any written correspondence from the Commission requesting the
correction of deficiencies or the submittal of additional information.
(e) Resource agency or Indian tribe waiver of compliance with
consultation requirement. (1) If a resource agency or Indian tribe
waives in writing compliance with any requirement of this section, a
potential applicant does not have to comply with that requirement as to
that agency or Indian tribe.
(2) If a resource agency or Indian tribe fails to timely comply with
a provision regarding a requirement of this section, a potential
applicant may proceed to the next sequential requirement of this section
without waiting for the resource agency or Indian tribe to comply.
(3) The failure of a resource agency or Indian tribe to timely comply
with a provision regarding a requirement of this section does not
preclude its participation in subsequent stages of the consultation
process.
(f) Application requirements documenting consultation and any
disagreements with resource agencies or Indian tribes. An applicant must
show in Exhibit E of its application that it has met the requirements of
paragraphs (b) through (d) of this section, and 16.8(i), and must
include:
(1) Any resource agency's or Indian tribe's letters containing
comments, recommendations, and proposed terms and conditions;
(2) Any letters from the public containing comments and
recommendations;
(3) Notice of any remaining disagreement with a resource agency or
Indian tribe on:
(i) The need for a study or the manner in which a study should be
conducted and the applicant's reasons for disagreement, and
(ii) Information on any environmental protection, mitigation, or
enhancement measure, including the basis for the applicant's
disagreement with the resource agency or Indian tribe.
(4) Evidence of any waivers under paragraph (e) of this section;
(5) Evidence of all attempts to consult with a resource agency or
Indian tribe, copies of related documents showing the attempts, and
documents showing the conclusion of the second stage of consultation;
(6) An explanation of how and why the project would, would not, or
should not, comply with any relevant comprehensive plan as defined in
2.19 of this chapter and a description of any relevant resource agency
or Indian tribe determination regarding the consistency of the project
with any such comprehensive plan;
(7)(i) With regard to certification requirements for a license
applicant under section 401(a)(1) of the Clean Water Act:
(A) A copy of the water quality certification;
(B) A copy of the request for certification, including proof of the
date on which the certifying agency received the request; or
(C) Evidence of waiver of water quality certification as described in
paragraph (f)(7)(ii) of this section.
(ii) A certifying agency is deemed to have waived the certification
requirements of section 401(a)(1) of the Clean Water Act if the
certifying agency has not denied or granted certification by one year
after the date the certifying agency received a written request for
certification. If a certifying agency denies certification, the
applicant must file a copy of the denial within 30 days after the
applicant received it.
(iii) Any amendment to an application for a license requires a new
request for certification if the amendment would have a material adverse
impact on the water quality in the discharge from the project.
(8) A description of how the applicant's proposal addresses the
significant resource issues raised by members of the public during the
joint meeting held pursuant to paragraph (b)(2) of this section.
(g) Requests for privileged treatment of pre-filing submission. If a
potential applicant requests privileged treatment of any information
submitted to the Commission during pre-filing consultation (except for
the information specified in paragraph (b)(1) of this section), the
Commission will treat the request in accordance with the provisions in
388.112 of this chapter until the date the application is filed with the
Commission.
(h) Other meetings. Prior to holding a meeting with a resource
agency or Indian tribe, other than a joint meeting pursuant to paragraph
(b)(2)(i) or (c)(6)(i) of this section, a potential applicant must
provide the Commission and each resource agency or Indian tribe (with an
area of interest, expertise, or responsibility similar or related to
that of the resource agency or Indian tribe with which the potential
applicant is to meet) with written notice of the time and place of each
meeting and a written agenda of the issues to be discussed at the
meeting at least 15 days in advance.
(i) Public participation. (1) At least 14 days in advance of the
joint meeting held pursuant to paragraph (b)(2), the potential applicant
must publish notice, at least once, of the purpose, location, and timing
of the joint meeting, in a daily or weekly newspaper published in the
county or counties in which the existing project or any part thereof or
the lands affected thereby are situated. The notice shall include a
copy of the written agenda of the issues to be discussed at the joint
meeting prepared pursuant to paragraph (b)(2)(ii) of this section.
(2)(i) A potential applicant must make available to the public for
inspection and reproduction the information specified in paragraph
(b)(1) of this section from the date on which the notice required by
paragraph (i)(1) of this section is first published until the date of
the joint meeting required by paragraph (b)(2) of this section.
(ii) The provisions of 16.7(e) shall govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(iii) A potential applicant must make available to the public for
inspection at the joint meeting required by paragraph (b)(2) of this
section the information specified in paragraph (b)(1) of this section.
(j) Transition provisions. (1) The provisions of this section are
not applicable to applications filed before July 3, 1989.
(2) The provisions of paragraphs (a) and (b) of this section are not
applicable to potential applicants that complied with the provisions of
4.38 (a) and (b)(1) of this chapter prior to July 3, 1989.
(3) The provisions of paragraph (c) are not applicable to potential
applicants that complied with the provisions of 4.38(b)(2) of this
chapter prior to July 3, 1989.
(4)(i) Any applicant that files its application on or after July 3,
1989 and that complied with the provisions of 4.38 (a) and (b)(1) of
this chapter prior to July 3, 1989 must hold a public meeting, within 90
days from July 3, 1989, at or near the site of the existing project to
generally explain the potential applicant's proposal for the site and to
obtain the views of the public regarding resource issues that should be
addressed in any application for new license that may be filed by the
potential applicant. The public meeting must include both day and
evening sessions, and the potential applicant must make either audio
recordings or written transcripts of both sessions.
(ii) At least 14 days in advance of the meeting, the potential
applicant must publish notice, at least once, of the purpose, location,
and timing of the meeting, in a daily or weekly newspaper published in
the county or counties in which the existing project or any part thereof
or the lands affected thereby are situated.
(iii)(A) A potential applicant must make available to the public for
inspection and reproduction information comparable to that specified in
paragraph (b)(1) from the date on which the notice required by paragraph
(j)(4)(ii) is first published until the date of the public meeting
required by paragraph (j)(4)(i).
(B) The provisions of 16.7(e) shall govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(C) A potential applicant must make available to the public for
inspection at both sessions of the public meeting required by paragraph
(j)(4)(i) of this section the information specified in paragraph
(j)(4)(iii)(A).
(D) A potential applicant must upon request promptly provide to the
Commission and any resource agency or Indian tribe copies of the audio
recordings or written transcripts of the sessions of the public meeting.
(iv) Any applicant holding a public meeting pursuant to paragraph
(j)(4)(i) must include in its filed application a description of how the
applicant's proposal addresses the significant resource issues raised
during the public meeting.
(5) All requests for waiver of, or clarification regarding, the
application of the provisions of this subsection to a proceeding must be
submitted to the Director of the Office of Hydropower Licensing not
later than 90 days after July 3, 1989 and will be subject to, and
processed in accordance with, the provisions of paragraph (b)(5).
(6) A potential applicant that has initiated consultation with
resource agencies in accord with this section must initiate consultation
with Indian tribes meeting the criteria set forth in 16.2(f) not later
than February 9, 1990..
(Order 513, 54 FR 23806, June 2, 1989, as amended by Order 513-A, 55
FR 16, Jan. 2, 1990; Order 533, 56 FR 23154, May 20, 1991; 56 FR
61156, Dec. 2, 1991)
18 CFR 16.9 Applications for new licenses and nonpower licenses for
projects subject to sections 14 and 15 of the Federal Power Act.
(a) Applicability. This section applies to an applicant for a new
license or nonpower license for a project subject to sections 14 and 15
of the Federal Power Act.
(b) Filing requirement. (1) An applicant for a license under this
section must file its application at least 24 months before the existing
license expires.
(2) An application for a license under this section must meet the
requirements of 4.32 (except that the Director of the Office of
Hydropower Licensing may provide more than 90 days in which to correct
deficiencies in applications) and, as appropriate, 4.41, 4.51, or 4.61
of this chapter.
(3) The requirements of 4.35 of this chapter do not apply to an
application under this section, except that the Commission will reissue
a public notice of the application in accordance with the provisions of
16.9(d)(1) if an amendment described in 4.35(f) of this chapter is
filed.
(4) If the Commission rejects or dismisses an application pursuant to
the provisions of 4.32 of this chapter, the application may not be
refiled after the new license application filing deadline specified in
16.9(b)(1).
(c) Final amendments. All amendments to an application, including
the final amendment, must be filed with the Commission and served on all
competing applicants no later than the date specified in the notice
issued under paragraph (d)(2).
(d) Commission notice. (1) Upon acceptance of an application for a
new license or a nonpower license, the Commission will give notice of
the application and of the dates for comment, intervention, and protests
by:
(i) Publishing notice in the Federal Register;
(ii) Publishing notice once every 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 affected thereby are situated;
and
(iii) Notifying appropriate Federal, state, and interstate resource
agencies and Indian tribes by mail.
(2) Within 60 days after the new license application filing deadline,
the Commission will issue a notice on the processing deadlines
established under 4.32 of this chapter, estimated dates for further
processing deadlines under 4.32 of this chapter, deadlines for
complying with the provisions of 4.36(d)(2) (ii) and (iii) of this
chapter in cases where competing applications are filed, and the date
for final amendments and will:
(i) Publish the notice in the Federal Register;
(ii) Provide the notice to appropriate Federal, state, and interstate
resource agencies and Indian tribes; and
(iii) Serve the notice on all parties to the proceedings pursuant to
385.2010 of this chapter.
(3) Where two or more mutually exclusive competing applications have
been filed for the same project, the final amendment date and deadlines
for complying with the provisions of 4.36(d)(2) (ii) and (iii) of this
chapter established pursuant to the notice issued under paragraph (d)(2)
of this section will be the same for all such applications.
(4) The provisions of 4.36(d)(2)(i) of this chapter will not be
applicable to applications filed pursuant to this section.
18 CFR 16.10 Information to be provided by an applicant for new
license: Filing requirements.
(a) Information to be supplied by all applicants. All applicants for
a new license under this part must file the following information with
the Commission:
(1) A discussion of the plans and ability of the applicant to operate
and maintain the project in a manner most likely to provide efficient
and reliable electric service, including efforts and plans to:
(i) Increase capacity or generation at the project;
(ii) Coordinate the operation of the project with any upstream or
downstream water resource projects; and
(iii) Coordinate the operation of the project with the applicant's or
other electrical systems to minimize the cost of production.
(2) A discussion of the need of the applicant over the short and long
term for the electricity generated by the project, including:
(i) The reasonable costs and reasonable availability of alternative
sources of power that would be needed by the applicant or its customers,
including wholesale customers, if the applicant is not granted a license
for the project;
(ii) A discussion of the increase in fuel, capital, and any other
costs that would be incurred by the applicant or its customers to
purchase or generate power necessary to replace the output of the
licensed project, if the applicant is not granted a license for the
project;
(iii) The effect of each alternative source of power on:
(A) The applicant's customers, including wholesale customers;
(B) The applicant's operating and load characteristics; and
(C) The communities served or to be served, including any
reallocation of costs associated with the transfer of a license from the
existing licensee.
(3) The following data showing need and the reasonable cost and
availability of alternative sources of power:
(i) The average annual cost of the power produced by the project,
including the basis for that calculation;
(ii) The projected resources required by the applicant to meet the
applicant's capacity and energy requirements over the short and long
term including:
(A) Energy and capacity resources, including the contributions from
the applicant's generation, purchases, and load modification measures
(such as conservation, if considered as a resource), as separate
components of the total resources required;
(B) A resource analysis, including a statement of system reserve
margins to be maintained for energy and capacity; and
(C) If load management measures are not viewed as resources, the
effects of such measures on the projected capacity and energy
requirements indicated separately;
(iii) For alternative sources of power, including generation of
additional power at existing facilities, restarting deactivated units,
the purchase of power off-system, the construction or purchase and
operation of a new power plant, and load management measures such as
conservation:
(A) The total annual cost of each alternative source of power to
replace project power;
(B) The basis for the determination of projected annual cost; and
(C) A discussion of the relative merits of each alternative,
including the issues of the period of availability and dependability of
purchased power, average life of alternatives, relative equivalent
availability of generating alternatives, and relative impacts on the
applicant's power system reliability and other system operating
characteristics; and
(iv) The effect on the direct providers (and their immediate
customers) of alternate sources of power.
(4) If an applicant uses power for its own industrial facility and
related operations, the effect of obtaining or losing electricity from
the project on the operation and efficiency of such facility or related
operations, its workers, and the related community.
(5) If an applicant is an Indian tribe applying for a license for a
project located on the tribal reservation, a statement of the need of
such tribe for electricity generated by the project to foster the
purposes of the reservation.
(6) A comparison of the impact on the operations and planning of the
applicant's transmission system of receiving or not receiving the
project license, including:
(i) An analysis of the effects of any resulting redistribution of
power flows on line loading (with respect to applicable thermal,
voltage, or stability limits), line losses, and necessary new
construction of transmission facilities or upgrading of existing
facilities, together with the cost impact of these effects;
(ii) An analysis of the advantages that the applicant's transmission
system would provide in the distribution of the project's power; and
(iii) Detailed single-line diagrams, including existing system
facilities identified by name and circuit number, that show system
transmission elements in relation to the project and other principal
interconnected system elements. Power flow and loss data that represent
system operating conditions may be appended if applicants believe such
data would be useful to show that the operating impacts described would
be beneficial.
(7) If the applicant has plans to modify existing project facilities
or operations, a statement of the need for, or usefulness of, the
modifications, including at least a reconnaissance-level study of the
effect and projected costs of the proposed plans and any alternate
plans, which in conjunction with other developments in the area would
conform with a comprehensive plan for improving or developing the
waterway and for other beneficial public uses as defined in section
10(a)(1) of the Federal Power Act.
(8) If the applicant has no plans to modify existing project
facilities or operations, at least a reconnaissance-level study to show
that the project facilities or operations in conjunction with other
developments in the area would conform with a comprehensive plan for
improving or developing the waterway and for other beneficial public
uses as defined in section 10(a)(1) of the Federal Power Act.
(9) A statement describing the applicant's financial and personnel
resources to meet its obligations under a new license, including
specific information to demonstrate that the applicant's personnel are
adequate in number and training to operate and maintain the project in
accordance with the provisions of the license.
(10) If an applicant proposes to expand the project to encompass
additional lands, a statement that the applicant has notified, by
certified mail, property owners on the additional lands to be
encompassed by the project and governmental agencies and subdivisions
likely to be interested in or affected by the proposed expansion.
(11) The applicant's electricity consumption efficiency improvement
program, as defined under section 10(a)(2)(C) of the Federal Power Act,
including:
(i) A statement of the applicant's record of encouraging or assisting
its customers to conserve electricity and a description of its plans and
capabilities for promoting electricity conservation by its customers;
and
(ii) A statement describing the compliance of the applicant's energy
conservation programs with any applicable regulatory requirements.
(12) The names and mailing addresses of every Indian tribe with land
on which any part of the proposed project would be located or which the
applicant reasonably believes would otherwise be affected by the
proposed project.
(b) Information to be provided by an applicant who is an existing
licensee. An existing licensee that applies for a new license must
provide:
(1) The information specified in paragraph (a).
(2) A statement of measures taken or planned by the licensee to
ensure safe management, operation, and maintenance of the project,
including:
(i) A description of existing and planned operation of the project
during flood conditions;
(ii) A discussion of any warning devices used to ensure downstream
public safety;
(iii) A discussion of any proposed changes to the operation of the
project or downstream development that might affect the existing
Emergency Action Plan, as described in subpart C of part 12 of this
chapter, on file with the Commission;
(iv) A description of existing and planned monitoring devices to
detect structural movement or stress, seepage, uplift, equipment
failure, or water conduit failure, including a description of the
maintenance and monitoring programs used or planned in conjunction with
the devices; and
(v) A discussion of the project's employee safety and public safety
record, including the number of lost-time accidents involving employees
and the record of injury or death to the public within the project
boundary.
(3) A description of the current operation of the project, including
any constraints that might affect the manner in which the project is
operated.
(4) A discussion of the history of the project and record of programs
to upgrade the operation and maintenance of the project.
(5) A summary of any generation lost at the project over the last
five years because of unscheduled outages, including the cause,
duration, and corrective action taken.
(6) A discussion of the licensee's record of compliance with the
terms and conditions of the existing license, including a list of all
incidents of noncompliance, their disposition, and any documentation
relating to each incident.
(7) A discussion of any actions taken by the existing licensee
related to the project which affect the public.
(8) A summary of the ownership and operating expenses that would be
reduced if the project license were transferred from the existing
licensee.
(9) A statement of annual fees paid under Part I of the Federal Power
Act for the use of any Federal or Indian lands included within the
project boundary.
(c) Information to be provided by an applicant who is not an existing
licensee. An applicant that is not an existing licensee must provide:
(1) The information specified in paragraph (a).
(2) A statement of the applicant's plans to manage, operate, and
maintain the project safely, including:
(i) A description of the differences between the operation and
maintenance procedures planned by the applicant and the operation and
maintenance procedures of the existing licensee;
(ii) A discussion of any measures proposed by the applicant to
implement the existing licensee's Emergency Action Plan, as described in
subpart C of part 12 of this chapter, and any proposed changes;
(iii) A description of the applicant's plans to continue safety
monitoring of existing project instrumentation and any proposed changes;
and
(iv) A statement indicating whether or not the applicant is
requesting the licensee to provide transmission services under section
15(d) of the Federal Power Act.
(d) Extended deadline for certain applicants. If an applicant must
file an application under 16.9 within 90 days after July 3, 1989, that
applicant may provide the information required in this section within 90
days after the date on which it files the application.
(e) Inclusion in application. Except as permitted in paragraph (d),
the information required to be provided by this section must be included
in the application as a separate exhibit labeled ''Exhibit H.''
(f) Filing requirements. For all applications for new licenses due
to be filed with the Commission on or after June 19, 1991, and prior to
January 1, 1992, the following number of copies must be submitted to the
Commission and served on resource agencies
(1) If the application is hand-delivered to the Commission, as by
messenger or courier service, only an original and five copies of the
application need be delivered to the Secretary, but the filing must be
accompanied by a transmittal letter certifying that at the same time
five copies of the application are being hand delivered to the Director,
Division of Project Review, Office of Hydropower Licensing, and copies
are being mailed to the resource agencies consulted and the government
offices specified in 16.8(d)(2) of this part, including each of the
following:
(i) The Regional Office of the Commission for the area in which the
project is located;
(ii) The U.S. Department of the Interior, Washington, DC (6 copies
for projects located in the Eastern United States, including Minnesota,
Iowa, Missouri, Arkansas, and Louisiana, and 9 copies for projects
located in the Western United States westward of the western boundaries
of Minnesota, Iowa, Missouri, Arkansas, and Louisiana);
(iii) The U.S. Bureau of Land Management District Office for the area
in which the project is located; and
(iv) The U.S. Corps of Engineers District Office for the area in
which the project is located.
(2) If the application is mailed to the Commission, only an original
and ten copies of the application need be sent to the Secretary, but the
application must be accompanied by a transmittal letter certifying that
at the same time copies of the application are being mailed to each of
the offices listed in paragraphs (f)(1) (i) through (iv) of this
section.
(Order 513, 54 FR 23806, June 2, 1989, as amended at Order 533, 56 FR
23154, May 20, 1991; 56 FR 61156, Dec. 2, 1991)
18 CFR 16.11 Nonpower licenses.
(a) Information to be provided by all applicants for nonpower
licenses. (1) An applicant for a nonpower license must provide the
following information in its application:
(i) The information required by 4.51 or 4.61 of this chapter, as
appropriate;
(ii) A description of the nonpower purpose for which the project is
to be used;
(iii) A showing of how the nonpower use conforms with a comprehensive
plan for improving or developing the waterway and for other beneficial
public uses as defined in section 10(a)(1) of the Federal Power Act;
(iv) A statement of any impact that converting the project to
nonpower use may have on the power supply of the system served by the
project, including the additional cost of power if an alternative
generating source is used to offset the loss of the project's
generation;
(v) A statement identifying the state, municipal, interstate, or
Federal agency, which is authorized and willing to assume regulatory
supervision over the land, waterways, and facilities to be included
within the nonpower project;
(vi) Copies of written communication and documentation of oral
communication that the applicant may have had with any jurisdictional
agency or governmental unit authorized and willing to assume regulatory
control over the project and the point of time at which the agency or
unit would assume regulatory control;
(vii) A statement that demonstrates that the applicant has complied
with the requirements of 16.8(d)(2);
(viii) A proposal that shows the manner in which the applicant plans
to remove or otherwise dispose of the project's power facilities;
(ix) Any proposal to repair or rehabilitate any nonpower facilities;
(x) A statement of the costs associated with removing the project's
power facilities and with any necessary restoration and rehabilitation
work; and
(xi) A statement that demonstrates that the applicant has resources
to ensure the integrity and safety of the remaining project facilities
and to maintain the nonpower functions of the project until the
governmental unit or agency assumes regulatory control over the project.
(2) If an applicant must file an application for a nonpower license
under 16.9 within 90 days after July 3, 1989, that applicant may
provide the information required in paragraph (a) (except the
information specified in paragraph (a)(1)(i)), within 90 days after the
date it files the application.
(b) Termination of a proceeding for a nonpower license. The
Commission may deny an application for a nonpower license and turn the
project over to any agency that has jurisdiction over the land or
reservations if:
(1) An existing project is located on public lands or reservations of
the United States;
(2) Neither the existing licensee nor any other entity has filed an
application for a new license for the project;
(3) No one has filed a recommendation to take over the project
pursuant to 16.14; and
(4) The agency that has jurisdiction over the land or reservations
demonstrates that it is able and willing to:
(i) Accept immediate responsibility for the nonpower use of the
project; and.
(ii) Pay the existing licensee for its net investment in the project
and any severance damages specified in section 14(a) of the Federal
Power Act.
(c) Termination of nonpower license. A nonpower license will be
terminated by Commission order when the Commission determines that a
state, municipal, interstate, or Federal agency has jurisdiction over,
and is willing to assume regulatory responsibility for, the land,
waterways, and facilities included within the nonpower license.
18 CFR 16.12 Application for exemption from licensing by a licensee
whose license is subject to sections 14 and 15 of the Federal Power Act.
(a) An existing licensee whose license is subject to sections 14 and
15 of the Federal Power Act may apply for an exemption for the project.
(b) An applicant for an exemption under paragraph (a) must meet the
requirements of subpart K or subpart J of part 4 of this chapter, and
16.5, 16.6, 16.7, 16.8, 16.9(b) (1), (2) (except the requirement to
comply with 4.41, 4.51, or 4.61 of this chapter), 16.9(c), 16.10(a),
16.10(b), 16.10(d), and 16.10(e).
(c) The Commission will process an application by an existing
licensee for an exemption for the project in accordance with
16.9(b)(3), 16.9(b)(4), and 16.9(d).
(d) If a license application is filed in competition with an
application for exemption filed by the existing licensee, the Commission
will decide among the competing applications in accordance with the
standards of 16.13 and not in accordance with the provisions of
4.37(d)(2) of this chapter.
18 CFR 16.13 Standards and factors for issuing a new license.
(a) In determining whether a final proposal for a new license under
section 15 of the Federal Power Act is best adapted to serve the public
interest, the Commission will consider the factors enumerated in
sections 15(a)(2) and (a)(3) of the Federal Power Act.
(b) If there are only insignificant differences between the final
applications of an existing licensee and a competing applicant after
consideration of the factors enumerated in section 15(a)(2) of the
Federal Power Act, the Commission will determine which applicant will
receive the license after considering:
(1) The existing licensee's record of compliance with the terms and
conditions of the existing license; and
(2) The actions taken by the existing licensee related to the project
which affect the public.
(c) An existing licensee that files an application for a new license
in conjunction with an entity or entities that are not currently
licensees of all or part of the project will not be considered an
existing licensee for the purpose of the insignificant differences
provision of section 15(a)(2) of the Federal Power Act.
18 CFR 16.13 Subpart C -- Takeover Provisions for Projects Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.14 Departmental recommendation for takeover.
(a) A Federal department or agency may file a recommendation that the
United States exercise its right to take over a hydroelectric power
project with a license that is subject to sections 14 and 15 of the
Federal Power Act. The recommendation must:
(1) Be filed no earlier than five years before the license expires
and no later than the end of the comment period specified by the
Commission in:
(i) A notice of application for a new license, a nonpower license, or
an exemption for the project; or
(ii) A notice of an amendment to an application for a new license, a
nonpower license, or an exemption;
(2) Be filed in accordance with the formal requirements for filings
in subpart T of part 385 of the Commission's regulations and be served
on each relevant Federal and state resource agency, all applicants for
new license, nonpower license or exemption, and any other party to the
proceeding;
(3) Specify the project works that would be taken over by the United
States;
(4) Describe the proposed Federal operation of the project, including
any plans for its redevelopment, and discuss the manner in which
takeover would serve the public interest as fully as non-Federal
development and operation;
(5) State whether the agency intends to undertake the operation of
the project; and
(6) Include the information required by 4.41, 4.51, or 4.61 of this
chapter, as appropriate.
(b) A department or agency that files a takeover recommendation
becomes a party to the proceeding.
(c) An applicant or potential applicant for a new license, a nonpower
license, or an exemption that involves a takeover recommendation may
file a reply to the recommendation, within 120 days from the date the
takeover recommendation is filed with the Commission. The reply must be
filed with the Commission in accordance with part 385 of the
Commission's regulations and a copy of such a reply must be served on
the agency recommending the takeover and on any other party to the
proceeding.
18 CFR 16.15 Commission recommendation to Congress.
Upon receipt of a recommendation from any Federal department or
agency, a proposal of any party, or on the Commission's own motion, and
after notice and opportunity for hearing, the Commission may determine
that a project may be taken over by the United States, issue an order on
its findings and recommendations, and forward a copy to Congress.
18 CFR 16.16 Motion for stay by Federal department or agency.
(a) Within 30 days of the date on which an order granting a new
license or exemption is issued, a Federal department or agency that has
filed a takeover recommendation under 16.14 may file a motion under
385.2010 of this chapter to request a stay of the effective date of the
license or exemption order.
(b)(1) If a Federal department or agency files a motion under
paragraph (a), the Commission will stay the effective date of the order
issuing the license or exemption for two years.
(2) The stay issued under paragraph (b)(1) of this section may be
terminated either:
(i) Upon motion of the department or agency that requested the stay;
or
(ii) By action of Congress.
(c) The Commission will notify Congress if:
(1) An order granting a stay under paragraph (b)(1) of this section
is issued;
(2) Any license or exemption order becomes effective by reason of the
termination of a stay; or
(3) Any license or exemption order becomes effective by reason of the
expiration of a stay.
(d) The Commission's order granting the license or exemption will
automatically become effective:
(1) Thirty days after issuance, if no request for stay is filed,
provided that no appeal or rehearing is filed;
(2) When the period of the stay expires; or
(3) When the stay is terminated under paragraph (b)(2) of this
section.
18 CFR 16.17 Procedures upon Congressional authorization of takeover.
If Congress authorizes the takeover of a hydroelectric power project
as provided under section 14 of the Federal Power Act:
(a) The Commission or the Director of the Office of Hydropower
Licensing will notify the existing licensee in writing of the
authorization at least two years before the takeover occurs; and
(b) The licensee must present any claim for compensation to the
Commission:
(1) Within six months of issuance of the notice of takeover; and
(2) As provided in section 14 of the Federal Power Act.
18 CFR 16.17 Subpart D -- Annual Licenses for Projects Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.18 Annual licenses for projects subject to sections 14 and 15
of the Federal Power Act.
(a) This section applies to projects with licenses subject to
sections 14 and 15 of the Federal Power Act.
(b) The Commission will issue an annual license to an existing
licensee under the terms and conditions of the existing license upon
expiration of its existing license to allow:
(1) The licensee to continue to operate the project while the
Commission reviews any applications for a new license, a nonpower
license, an exemption, or a surrender;
(2) The orderly removal of a project, if the United States does not
take over a project and no new power or nonpower license or exemption
will be issued; or
(3) The orderly transfer of a project to:
(i) The United States, if takeover is elected; or
(ii) A new licensee, if a new power or nonpower license is issued to
that licensee.
(c) An annual license issued under this section will be considered
renewed automatically without further order of the Commission, unless
the Commission orders otherwise.
(d) In issuing an annual license, the Commission may incorporate
additional or revised interim conditions if necessary and practical to
limit adverse impacts on the environment.
The majority has affirmed its earlier determination that section 18
of the Federal Power Act, which confers authority on the Departments of
Interior and Commerce to prescribe fishways, is applicable to
relicensing. I disagreed with the majority's determination at the time
of issuance of the Final Rule and still believe that section 18 is not
applicable with respect to the relicensing of existing projects. My
belief is based on several legal and policy grounds.
18 CFR 16.18 Legal
First, I place considerable significance from a statutory
construction perspective on the decision of Congress to enact the
section 15 process in ECPA. I find it inexplicable that Congress would
have enacted section 15 which includes the elaborate section 10(j)
requirements with regard to the subject of fish and wildlife
recommendations, if there was any conceivable argument that section
should apply to relicensing. In the alternative, if section 18 was
deemed to apply to relicensing, Congress surely would have noted that
and rationalized its application as part of section 15.
Second, the decision unnecessarily jeopardizes two important
Congressional interests in Commission relicense proceedings: to protect
the interests of the investors and the project's customers. I discussed
this point in detail in my dissenting opinion in City of Pasadena Water
and Power Department, 46 FERC 61,004 (1989).
Third, there is no compelling evidence in the statute itself or its
legislative history that suggests section 18 authority applies to
relicensing proceedings. Indeed, the Edison Electric Institute (EEI) in
its rehearing petition on this issue, supplies citations to legislative
history that confirms my belief that the authority of the Secretary
under section 18 could only be exercised prior to the initial licensing
of an unconstructed project. In response to a question seeking an
answer on the perceived federal-state conflict embodied in section 18,
one of the bill's managers, Mr. Esch, offered a statement that provides
ample support for this proposition:
Mr. Esch. Now, if we gave that power to the Secretary of Commerce --
and there is no other Federal official to whom it could be given -- to
be exercised at the time the dam is constructed, when it could be
installed more cheaply than it could be at any time thereafter, we would
avoid the delay that would necessarily result if we left it for the
State officials to authorize, and in many cases it would not be
authorized by the State officials, and in some States they have no laws
covering the subject matter. I do not think that if the Secretary of
commerce exercised his power he would do it in contravention of or
without some conference with the State authorities, and I think all
could be amicably arranged. I do not anticipate any of the dangers or
difficulties such as the gentleman from Massachusetts seems to suggest
by his interrogatory.
Mr. Walsh. We may not always have an amiable and efficient Secretary
of Commerce. Suppose we had one that gets into conflicts with the State
authorities over this fishway business? Which regulation is going to
predominate? The Federal one prescribed by the Secretary of Commerce or
the one prescribed by the State authority?
Mr. Esch. I feel where the Government gives to a licensee the right
to construct a dam over a navigable water, it can affix such conditions
as it seem best, and among those conditions would be one to give the
Secretary of commerce the right to say that a fishway should be put in a
dam at the time of construction. So on that theory I believe we could
justify the provisions of the bill, the putting in of the fishway being
one of the conditions which the Government exacts for the issuance of
the grant.
Cong. Rec. 10036 (House) September 5, 1918; emphasis added. This
legislative history clearly indicates that Congress intended the
Secretary to have an opportunity to prescribe fishways ''at the time of
construction'' of a project.
The following policy considerations support what I believe to be the
more sensible legal interpretation of section 18 with respect to its
applicability to relicensing proceedings.
First, the design and installation of fishways at hydroelectric
projects is, generally, very costly in terms of construction, operation
and maintenance costs, and potential negative impact on project
operations and power generation.
Second, a potential licensee should be given the opportunity to
include in any economic feasibility assessment to a reasonable estimate
of expected future expenses. It is unreasonable to issue a license to
an applicant and not at least put the licensee on notice that signficant
expenses are yet to come. A recent Commission case serves to highlight
the potential financial danger associated with planning development of a
hydropower project, even when the project wil be located at an existing
dam site.
In Eugene Water and Electric Board, 49 FERC 61,211 (1989), the
Commission issued an original license to an applicant for a proposed
project that will use surplus water or water power from a government
dam, owned and operated by the U.S. Army Corps of Engineers. However,
there currently is some doubt as to whether the licensee will develop
the project because of conditions in the license relating to
construction of fishway facilities prescribed by the National Marine and
Fisheries Service (NMFS), the agency within Commerce responsible for
recommending construction of fishway facilities pursuant to section 18
of the EPA. In accordance with the NMFS' recommendation, Commerce
submitted a fishway prescription pursuant to section 18 that contained
criteria for a specific fish screen much more comprehensive than ever
before submitted by Commerce under section 18. The manner in which this
fish screen is to be constructed was not previously addressed in the
lengthy consultation process prior to licensing this project, nor was it
addressed at the section 10(j) meeting held pursuant to the recent
amendments of the Electric Consumer Protection Act of 1986 (ECPA).
Parenthetically, ECPA included this procedure for the purpose of
resolving fish and wildlife controversies that arise during consultation
with the agencies.
The new information on the specific fishway structure required by
NMFS in Eugene, indicated that the construction of the fishway
facilities would prove to be very costly. Commerce provided no
substantial evidence that the facilities prescribed could be constructed
at the site of the project, would be effective, or were needed; nor did
Commerce provide any drawings or cost estimates. Indeed, in my
concurring opinion to Eugene, I pointed out how NMFS recommending
construction of fishway facilities pursuant to section 18, was
apparently using section 18 authority to kill the project. In essence,
NMFS was using section 18 authority to veto a project that the
Commission unanimously agreed is a responsible effort to develop needed
electric generation in the northwestern region of the United States.
The tragic irony is that they may yet be successful.
Nevertheless, because section 18 is mandatory, the Commission felt
compelled to require the licensee to construct, operate, and maintain
the fishways that Commerce prescribed. However, the Commission reserved
the right to modify, if necessary to preserve the economics of the
project, the design of the fishway facilities. Even with this
reservation however, the licensee may still decide that the project,
made marginally economic by the construction of the facilities, is not
worth developing. At least in this original license instance, the
licensee can make that business decision before having expended large
sums of money for the development of the project. In a relicensing
proceeding, that option will not exist.
Third, with respect to relicense applications that propose to do
nothing more than continue the existing operation without any
modifications, it appears to me to be grossly inappropriate to permit
Interior or Commerce to require the design, construction, operation, and
maintenance of costly fish passage facilities without requiring Interior
or Commerce to meet at least some threshold standard of extraordinary
circumstances. I am particularly concerned that current Federal
budgetary constraints that limit funding for fishery facilities will
precipitate the use of the section 18 authority to require such
facilities as a condition of a new license for existing hydroelectric
projects, in the absence of such a standard. In my judgement, this
Commission has the responsibility for ensuring a proper balance of the
need for continued economic operation of existing hydroelectric projects
that are subject to relicensing and any asserted need for new fishway
facilities at an operating project.
Apart from the question of whether section 18 should apply in the
relicensing process, which the majority here has decided in the
affirmative, there is the important implementation question of how
section 18 will be applied in the context of this Final Rule. In that
regard, I would like to highlight and reiterate the most recent
statement of the Commission on that general question as it was addressed
in the aforementioned Eugene case. To that end, I will quote from my
separate opinion in that case of the section 18 issue.
The Commission unanimously agreed that the Blue River Dam project is
a responsible effort to develop needed electric generation in the
Northwestern region of the United States and, in so doing, repelled an
aggressive attempt by the National Marine and Fisheries Service (NMFS)
to impose unjustifiable costs for inter alia, water temperature controls
that would have rendered the project uneconomical. The Commission also
rejected concerted efforts by NMFS to abuse its procedural and
substantive prerogatives under section 10 and section 18 of the Federal
Power Act to cripple or kill this project, as described at length at
pages 3 to 13 of the slip opinion.
As this case demonstrates, the section 10(j) and section 18 statutory
scheme has been used by NMFS to play a high takes poker game of sorts.
By its actions here, NMFS has laid its cards on the table, so to speak,
in that game. It has finally demonstrated beyond any reasonable doubt
that it believes it holds a ''wild card'' to dictate the results of the
game, including a high handed effort here to cripple or kill a project
that rates as high for nondevelopment resources as it does for
hydroelectric power potential. In fact, as the Commission states in
footnote 15, at page 11, for NMFS to ''assert a section 10(j)
inconsistency at the last moment is to try to veto the project based on
procedural gamesmanship.'' As a result, it is necessary and appropriate,
in my judgment, to write separately for the purpose of calling a spade a
spade, as it were.
In this regard, I think it is worth noting the section 18 issued
contained in this proceeding. Section 18, cannot and must not be read
in complete isolation, as a free standing statutory provision, as if the
rest of the Federal Power Act, particularly as it was amended by the
Electric Consumer Protection Act (ECPA), does not exist. It would be
completely inconsistent with the thrust of the Federal Power Act,
particularly after ECPA, to argue that NMFS under section 18 has carte
blanche to do indirectly through section 18 that which it cannot do
directly through section 10(j). I do not believe that Congress, at any
point before or after ECPA, ever intended that the scope of section 18
was such that NMFS could impose requirements under section 18 that would
alter materially the project design and operation, over which the
Commission otherwise has exclusive jurisdiction, for any and every
project on any waterway in the country. That would include any future
effort by NMFS in this case to use the prescription under section 18 to
kill this hydroelectric development at an existing impoundment which
clearly will enhance nondevelopment resources, in addition to providing
needed electric power in a region of the nation which is experiencing a
rapidly diminishing supply of electricity. That also would include any
effort by NMFS, in the context of prescribing a fishway as an integral
part of the broader project, to become an independent authority able to
dictate the economic viability of the project or to exercise wholly
separate and independent control over design, construction, and
operation of the project.
Accordingly, as the Commission has made clear previously in Lynchburg
Hydro Associates, 39 FERC 61,079 (1987) (Lynchburg) the Commission by
necessity must determine independently whether the fishway prescribed by
NMFS exceeds the narrow scope of section 18 and would require any
significant or material modification to the project design, construction
or operation under the license as otherwise developed pursuant to the
FPA, as amended by ECPA. That independent responsibility clearly vested
in the Commission includes the authority to determine whether the
prescribed fishway would, as prescribed by NMFS, be so unreasonably
costly as to render the project uneconomic. A ''Cadillac'' fishway
design prescribed by NMFS, which would render the project uneconomic,
when a ''Chevrolet'' alternative design would be adequate, would be no
more reasonable than a prescribed design which would materially alter
the general design, construction, or operation of the licensed project.
As surely as day must follow night, if a prescribed fishway design would
kill a project through excessive costs not reasonably necessary, that
prescribed design would constitute a material alteration to the
construction and operation of the licensed project. This is so, because
there would be no construction or operation in the end, and simple logic
dictates that such a result certainly is not immaterial nor
inconsequential. Thus, it is quite clear that the scope of section 18
cannot include discretion on the part of NMFS to prescribe a design with
excessive and unreasonable costs that threaten project viability.
The Commission in an analogous way in this case has recognized that
the adoption of the NMFS proposal for installation by the Eugene Water
and Electric Board of water temperature control facilities is
unjustified here. The Commission concludes, slip opinion at 10, that
''installation of appropriate water control facilities to mitigate water
temperature impacts is properly the responsibility of the Corps (of
Engineers) rather than of the applicant (and) (t)his is especially true
in this case, where to require the licensee to install temperature
control facilities would remove the net benefits of the project.'' Thus,
the Commission already has rejected one NMFS proposal that beyond any
reasonable doubt would render the project a dead letter. Similarly, as
to the NMFS fishway facility design criteria, I am satisfied that the
Commission has an equally affirmative obligation to ensure that those
criteria do not affect negatively the net benefits of the project in
terms of its cost or design, construction and operation. Thus, the NMFS
design criteria can provide general engineering and technical guidance
but only to the extent that application of the guidance would not render
the project uneconomic, particularly where a less costly alternative
would be adequate.
Similarly, and just as obvious, NMFS has no authority to prescribe
rigid and excessive design criteria for fishways which are incompatible
with the general project design and subsequent construction and
operation already approved in this license. It must be remembered, for
example, that the Commission must have the ultimate responsibility for
dam safety engineering considerations, as well as impacts on other
affected resources, such as flood control, irrigation and recreation, in
addition to the fishery resources for which the fishway design criteria
ostensibly would be prescribed. Thus, the NMFS prescribed fishway
design cannot be allowed to negatively impact on dam safety, navigation,
flood control, irrigation, water supply, or recreation.
The Commission on page 12 of the slip opinion expressly cites two
cases, Lynchburg and Clearwater Hydro Limited Partnership, 41 FERC
61,330 (1987) (Clearwater), where it has discussed how it will address
the scope of section 18. Indeed, both the Lynchburg and Clearwater
cases cited on that page clearly stand for the principle that the
authority to ''prescribe'' fishways does not include broad power to
impose mandatory conditions of license unrelated to fishways and cannot
be used as a vehicle for requiring substantial revisions to the
project's design or operation, since such matters are entrusted to the
Commission's ultimate judgment. That principle is crucial here,
because, as discussed at page 12, NMFS has not provided substantial
evidence that the Green Peter fish facilities could even be constructed
at the Blue River Reservoir, would be effective, or for that matter even
are needed; nor has NMFS provided any drawings or cost estimates. In
that regard, the instant order (1) affirms that crucial principle, (2)
states, at page 12 of the slip opinion, that the Commission retains
final authority over project structures, and (3) reserves the right in
Article 411 of the license for the Commission to require modifications
to the functional design drawings, if such modification proves necessary
as a consequence of NMFS' design criteria as provided in its October 6,
1989 letter cited in the Article. As a result, I support this order
with the clear understanding and expectation that the principle
established in Lynchburg and Clearwater will be applied to the NMFS
fishway design criteria and the resulting functional design drawings of
the licensee.
In conclusion, for this Commissioner, the NMFS cards on the table in
this case are as clear and unambiguous as clubs, diamonds, hearts, and
spades and, when it is all said and done in this case, the Commission
must not accede to the NMFS efforts to cripple or kill this project.
Consequently, I urge my colleagues and the Commission staff to remain
diligent in our efforts to preserve the significant net benefits of the
project in the face of any further attack on the project by NMFS under
the rubric of section 18. I also want to assure more generally all
those still committed to a hydroelectric option for this nation that I
am confident of continued vigilance in these efforts in future cases.
I would make a few further observations about the application of
section 18 in the relicensing process established by this Final Rule.
First, Interior or Commerce under 18 authority must not be allowed to
delay the critical relicensing schedule established by the Final Rule to
meet the statutory deadlines enacted by Congress in section 15 of the
ECPA. That relicensing schedule has carefully balanced many competing
factors to ensure that the licensee, other applicants, all state and
Federal agencies, all interested parties and the public at large have a
full opportunity to participate in the relicensing process in a timely
way that will support decisions by the Commission in conformance with
the deadlines and other applicable provisions of ECPA.
Second, any Interior or Commerce requirements for fishways must be
provided to the Commission in a timely fashion in order that those
requirements can be incorporated into the relicensing process and
considered appropriately by the Commission, the licensee, other
applicants, other agencies and all interested parties. If Interior or
Commerce were to fail to do that, it would be well nigh impossible for
the Commission to conduct the comparative analysis and evaluation of
competing applications mandated by ECPA, because a critical factor with
regard to fishery resources, project costs, minimum flows and other
aspects of the project simply could not be calculated, analyzed, or
evaluated on either a single application or comparative basis, as ECPA
requires.
Third, the existing hydroelectric projects subject to relicensing
are, after all, operating projects providing an important, and in some
cases, critical source of electrical power for their regional electric
grids. Therefore, the admonitions of the Commission in the Eugene case
as to the limitations on the scope of the authority under section 18 in
original licensing for new projects must, of necessity, be read to
encompass this very significant additional dimension in the context of
relicensing existing projects.
Interior or Commerce should not and, indeed, must not be allowed to
impose new fishway construction and operating requirements which will
materially interrupt the operation of the existing projects, disrupt the
scheduling of electric power generation, or degrade the rated amount of
electric power generation capacity. Such material interruption,
disruption or degradation would affect negatively the critical
availability of this important existing source of electric power for
regional electric consumers at a time in the 1990's of growing demand
and heightened concern about the availability of adequate supply in the
form of generation capacity, particularly the clean, domestic, reliable,
renewable and cost-effective electric generation from these existing
hydroelectric projects which in the aggregate constitute a significant
percentage of the nation's current supply. That concern would be
particularly important in the Pacific Northwest region of the country
where existing hydroelectric projects subject to relicensing constitute
a major source of regional electric power.
Fourth, pursuant to ECPA, the Commission must carefully consider all
non-power resources relevant to a particular existing project in the
relicensing process, including but not limited to the fishery resource,
on an ''equal consideration'' basis, although not necessarily on an
''equal treatment'' basis. Therefore, the provision for new fishway
facilities under section 18 must be encompassed by the Commission within
its overall assessment of all power and non-power resources as part of
its ''equal consideration'' responsibilities. Consequently, Interior or
Commerce should avoid requiring new fishway facilities which are not in
harmony with the overall balancing of competing power and non-power
resource interests which the Commission must make pursuant to ECPA. In
the end, while there may be competing applications and a variety of
fishery resource recommendations from various agencies and parties,
there is only one existing and currently operating project for which all
requirements must be harmonized for safety, technical and operational
purposes, as well as to provide the lowest reasonable cost and most
reliable operation of the electricity generation for regional electric
consumers. That can only occur in the form of such a harmonized
technical and operational approach of all applicable requirements for
new fishway facilities or modifications of existing facilities.
Fifth, any Interior or Commerce requirement for fishways should be
formulated in the context of current operations of an existing project,
rather than some form of past historical postulation of the pre-existing
fishery resource decades ago, prior to the original construction and
operation of the existing project. In the Final Rule, the Commission
has rejected recommendations calling for required so-called
''base-line'' data of the pre-existing fishery resource before
construction of the project. For the same reasons, Commerce or Interior
under section 18 must not require fishways that do not reflect current
fishery resources and related efforts today for protection, mitigation
and enhancement of those current resources.
I hope these observations are helpful for the commission staff,
Commerce and Interior, licensees, other applicants, state and Federal
resource agencies and other interested parties in their efforts to
integrate the section 18 implementation responsibly into the relicensing
process established in this Final Rule.
I dissent on the majority's decision in the Final Rule to require the
application of section 18 to the relicensing of existing projects for
the aforementioned legal and policy reasons. In the end, I would hope
that decision will be reversed and section 18 thereafter would only be
applied to original licensing. In the interim, however, the practical
reality is that section 18 must apply to relicensing under the Final
Rule. Consequently, I believe that the Commission, Interior and
Commerce must proceed in good faith to implement that new requirement in
a manner which is wholly consistent with the letter and spirit of ECPA,
which is the most recent direct expression of Congressional intent for
the relicensing process. I look forward to that effort in the months
ahead under the Final Rule.
(Order 513, 54 FR 23806, June 2, 1989, as amended by Order 513-A, 55
FR 18, Jan. 2, 1990)
18 CFR 16.18 Subpart E -- Projects With Minor and Minor Part License Not Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.19 Procedures for an existing licensee of a minor
hydroelectric power project or of a minor part of a hydroelectric power
project with a license not subject to sections 14 and 15 of the Federal
Power Act.
(a) Applicability. This section applies to an existing licensee of a
minor hydroelectric power project or of a minor part of a hydroelectric
power project that is not subject to sections 14 and 15 of the Federal
Power Act.
(b) Notification procedures. (1) An existing licensee with a minor
license or a license for a minor part of a hydroelectric project must
file a notice of intent pursuant to 16.6(b).
(2) If the license of an existing licensee expires on or after
October 17, 1994, the licensee must notify the Commission as required
under 16.6(b) at least five years before the expiration of the existing
license.
(3) Except as provided in paragraph (b)(4) of this section, if the
license of an existing licensee expires before October 17, 1994, the
licensee must notify the Commission as required under 16.6(b) no later
than September 1, 1989.
(4) The requirement in paragraph (b)(3) of this section does not
apply if an applicant filed a notice of intent as required by 16.6(b)
or an application for a subsequent license on or before July 3, 1989.
(5) The Commission will give notice of a licensee's intent to file or
not to file an application for a subsequent license in accordance with
16.6(d).
(c) Requirement to make information available. (1) Except as
provided in paragraph (c)(2) of this section, a licensee must make the
information described in 16.7 available to the public for inspection
and reproduction when it gives notice to the Commission under paragraph
(b).
(2) The requirement of paragraph (c)(1) of this section does not
apply if an applicant filed an application for a subsequent license on
or before (insert the effective date of the rule).
18 CFR 16.20 Applications for subsequent license for a project with an
expiring license not subject to sections 14 and 15 of the Federal Power
Act.
(a) Applicability. This section applies to an application for
subsequent license for a project with an expiring license that is not
subject to sections 14 and 15 of the Federal Power Act.
(b) Licensing proceeding. (1) An applicant for a license for a
project with an expiring license not subject to sections 14 and 15 of
the Federal Power Act must file its application under Part I of the
Federal Power Act.
(2) The provisions of section 7(a) of the Federal Power Act do not
apply to licensing proceedings involving an application described in
paragraph (b)(1).
(c) Requirement to file. (1) Except as provided in paragraphs (c)(2)
and (c)(3) of this section, an applicant must file an application for
subsequent license at least 24 months before the expiration of the
existing license.
(2) The requirement in paragraph (c)(1) does not apply if the license
is due to expire within three years of July 3, 1989.
(3) An applicant intending to file an application for subsequent
license for a project whose license is due to expire within four years
of July 3, 1989, must file an application at least 12 months before the
date on which the existing license expires.
(d) Requirements for and processing of applications. An application
for subsequent license must meet the requirements of, and will be
processed in accordance with, 16.5, 16.8, 16.9(b)(2), 16.9(b)(3),
16.9(b)(4), 16.9(c), and 16.9(d).
(e) Applicant notice. An applicant for subsequent license or
exemption that proposes to expand an existing project to encompass
additional lands must include in its application a statement that the
applicant has notified, by certified mail, property owners on the
additional lands to be encompassed by the project and governmental
agencies and subdivisions likely to be interested in or affected by the
proposed expansion.
18 CFR 16.21 Operation of projects with a minor or minor part license
not subject to sections 14 and 15 of the Federal Power Act after
expiration of a license.
(a) A licensee of a minor or minor part project not subject to
sections 14 and 15 of the Federal Power Act that has filed an
application for a subsequent license or exemption may continue to
operate the project in accordance with the terms and conditions of the
license after the minor or minor part license expires until the
Commission acts on its application.
(b) If the licensee of a minor or minor part project not subject to
sections 14 and 15 of the Federal Power Act has not filed an application
for a subsequent license or exemption, the Commission may issue an order
requiring the licensee to continue to operate its project in accordance
with the terms and conditions of the license until the Commission either
acts on any applications for subsequent license timely filed by another
entity or takes action pursuant to 16.25 or 16.26.
18 CFR 16.22 Application for an exemption by a licensee with a minor or
minor part license for a project not subject to sections 14 and 15 of
the Federal Power Act.
(a) Applicability. This section applies to an existing licensee with
a license for a project not subject to sections 14 and 15 of the Federal
Power Act.
(b) Information requirements. An applicant for an exemption must
meet the requirements of, and will be processed in accordance with,
subpart K or subpart J of part 4 of this chapter, and 16.5, 16.8,
16.9(b)(2) (except the requirement to comply with 4.41, 4.51, or 4.61
of this chapter), 16.9(b)(3), 16.9(b)(4), 16.9(c), 16.9(d), and
16.20(c).
(c) Standard of comparison. If an application for subsequent license
is filed in competition with an application for exemption by an existing
licensee, the Commission will decide among competing applications in
accordance with the standards of 16.13 and not in accordance with the
provisions of 4.37(d)(2) of this chapter.
18 CFR 16.22 Subpart F -- Procedural Matters
18 CFR 16.23 Failure to file timely notices of intent.
(a) An existing licensee of a water power project with a license
subject to sections 14 and 15 of the Federal Power Act that fails to
file a notice of intent pursuant to 16.6(b) by the deadlines specified
in l6.6(c) shall be deemed to have filed a notice of intent indicating
that it does not intend to file an application for new license, nonpower
license, or exemption.
(b) An existing licensee of a water power project with a license not
subject to sections 14 and 15 of the Federal Power Act that fails to
file a notice of intent pursuant to 16.6(b) by the deadlines specified
in 16.20(c) shall be deemed to have filed a notice of intent indicating
that it does not intend to file an application for subsequent license or
exemption.
18 CFR 16.24 Prohibitions against filing applications for new license,
nonpower license, exemption, or subsequent license.
(a) Licenses subject to sections 14 and 15 of the Federal Power Act.
(1) An existing licensee with a license subject to sections 14 and 15 of
the Federal Power Act that informs the Commission that it does not
intend to file an application for new license, nonpower license, or
exemption for a project, as required by 16.6, may not file an
application for new license, nonpower license, or exemption for the
project, either individually or in conjunction with an entity or
entities that are not currently licensees of the project.
(2) An existing licensee with a license subject to sections 14 and 15
of the Federal Power Act that fails to file an application for new
license, nonpower license, or exemption for a project at least 24 months
before the expiration of the existing license for the project may not
file an application for new license, nonpower license, or exemption for
the project, either individually or in conjunction with an entity or
entities that are not currently licensees of the project.
(b) Licenses not subject to sections 14 and 15 of the Federal Power
Act. (1) An existing licensee with a license not subject to sections 14
and 15 of the Federal Power Act that informs the Commission that it does
not intend to file an application for subsequent license or exemption
for a project, as required by 16.6, may not file an application for
subsequent license or exemption for the project, either individually or
in conjunction with an entity or entities that are not currently
licensees of the project.
(2) An existing licensee with a license not subject to sections 14
and 15 of the Federal Power Act that fails to file an application for
subsequent license or exemption for a project by the deadlines specified
in 16.20(c) may not file an application for subsequent license or
exemption for the project, either individually or in conjunction with an
entity or entities that are not currently licensees of the project.
18 CFR 16.25 Disposition of a project for which no timely application
is filed following a notice of intent to file.
(a) If an existing licensee that indicates in the notice filed
pursuant to 16.6 that it will file an application for new license,
nonpower license, subsequent license, or an exemption does not file its
application individually or in conjunction with an entity or entities
that are not currently licensees of the project at least 24 months
before its existing license expires in the case of licenses subject to
sections 14 and 15 of the Federal Power Act, or by the deadlines
specified in 16.20(c) in the case of licenses not subject to sections
14 and 15 of the Federal Power Act, and no other applicant files an
application within the appropriate time or all pending applications
filed before the applicable filing deadline are subsequently rejected or
dismissed pursuant to 4.32 of this chapter, the Commission will publish
in the Federal Register and once in a daily or weekly newspaper
published in the county or counties in which the project or any part
thereof or the lands affected thereby are situated, notice soliciting
applications from potential applicants other than the existing licensee.
(b) A potential applicant that files a notice of intent within 90
days from the date of the public notice issued pursuant to paragraph
(a):
(1) May apply for a license under Part I of the Federal Power Act and
part 4 of this chapter (except 4.38) within 18 months of the date on
which it files its notice; and
(2) Must comply with the requirements of 16.8 and, if the project
would have a total installed capacity of over 2,000 horsepower, 16.10.
(c) The existing licensee must file a schedule for the filing of a
surrender application for the project, for the approval of the Director
of the Office of Hydropower Licensing, 90 days:
(1) After the due date established for any notice of intent issued
under paragraph (a), if no notices of intent were received; or
(2) After the due date for any application filed under paragraph
(b)(1), if no application has been filed.
(d) Any application for surrender must be filed according to the
approved schedule, must comply with the requirements of 16.8 and part 6
of this chapter, and must provide for disposition of any project
facility.
18 CFR 16.26 Disposition of a project for which no timely application
is filed following a notice of intent not to file.
(a) If an existing licensee indicates in the notice filed pursuant to
16.6 that it will not file an application for new license, nonpower
license, subsequent license, or exemption and no other applicant files
an application at least 24 months before the existing license expires in
the case of licenses subject to sections 14 and 15 of the Federal Power
Act, or by the deadlines specified in 16.20(c) in the case of licenses
not subject to sections 14 and 15 of the Federal Power Act, the Director
of the Office of Hydropower Licensing will provide the existing licensee
with written notice that no timely applications for the project have
been filed.
(b) The existing licensee, within 90 days from the date of the
written notice provided in paragraph (a), must file a schedule for the
filing of a surrender application for the project for the approval of
the Director of the Office of Hydropower Licensing.
(c) Any application for surrender must be filed according to the
approved schedule, must comply with the requirements of 16.8 and part 6
of this chapter, and must provide for disposition of any project
facility.
18 CFR 16.26 PART 20 -- AUTHORIZATION OF THE ISSUANCE OF SECURITIES BY LICENSEES AND COMPANIES SUBJECT TO SECTIONS 19 AND 20 OF THE FEDERAL POWER ACT
18 CFR 20.1 Applicability.
(a) Without special proceeding for regulation. Every security issue
within the scope of the jurisdiction conferred upon the Commission by
sections 19 and 20 of the Federal Power Act shall be subject to the
provisions of 20.2, except a security issue by a person organized and
operating in a State under the laws of which its security issues are
regulated by a State commission, or by any one described in subsection
201(f) of the act. No other security issue within the scope of sections
19 and 20 shall be subject to 20.2 except as provided in paragraph (b)
of this section.
(b) Reservation of possibility of regulation in other cases. Not
later than 10 days prior to any proposed security issuance which is
within the scope of section 19 or section 20 of the act, but excepted by
paragraph (a) of this section, any person or state entitled to do so
under section 19 or section 20, may file a complaint or request in
accordance with the applicable rules of the Commission, or the
Commission upon its own motion may by order initiate a proceeding,
raising the question whether issuance of such security should be
subjected by Commission order to the provisions of 20.2. After notice
of such filing or order, and until such request or complaint is denied
or dismissed or the proceeding initiated by such order is terminated
without subjecting the issuance of the security to the provisions of
20.2, the security in question shall not be issued except it be issued
subject to and in compliance with 20.2.
(Secs. 3(16), 19, 20, 41 Stat. 1063, 1073; secs. 201, 309, 49 Stat.
838, 858; 16 U.S.C. 796 (16), 812, 813, 825k)
(Order 170, 19 FR 2013, Apr. 8, 1954)
18 CFR 20.2 Regulation of issuance of securities.
The licensee or other person issuing or proposing to issue any
security subjected to this section by or pursuant to 20.1, shall be
subject to and shall comply with the same requirements as the Commission
would administer to it if it were a public utility issuing the security
within the meaning and subject to the requirements of section 204 of the
Act and part 34 of this subchapter.
(Secs. 3(16), 19, 20, 41 Stat. 1063, 1073; secs. 201, 309, 49 Stat.
838, 858; 16 U.S.C. 796 (16), 812, 813, 825k)
(Order 170, 19 FR 2013, Apr. 8, 1954)
Cross Reference: For applications for authorization of the issuance
of securities or the assumption of liabilities, see part 34 of this
chapter.
18 CFR 20.2 PART 24 -- DECLARATION OF INTENTION
18 CFR 24.1 Filing.
An original and ten conformed copies of each declaration of intention
under the provisions of section 23(b) of the Act shall be filed. The
declaration shall give the name and post office address of the person to
whom correspondence in regard to it shall be addressed, and shall be
accompanied by:
(a) A brief description of the proposed project and its purposes,
including such data as maximum height of the dams, a storage capacity
curve of the reservoir or reservoirs showing the maximum, average, and
minimum operating pool levels, the initial and ultimate installed
capacity of the project, the rated horsepower and head on the turbines,
and a curve of turbine discharge versus output at average and minimum
operating heads.
(b)(1) A general map (one tracing and three prints) of any convenient
size and scale, showing the stream or streams to be utilized and the
approximate location and the general plan of the project.
(2) Also a detailed map of the proposed project area showing all
Federal lands, and lands owned by States, if any, occupied by the
project.
(3) A profile of the river within the vicinity of the project showing
the location of the proposed project and any existing improvements in
the river.
(4) A duration curve and hydrograph for the natural and proposed
regulated flows at the dam site. Furnish references to the published
stream flow records used and submit copies of any unpublished records
used in preparation of these curves.
(c) (1) A definite statement of the proposed method of utilizing
storage or pondage seasonally, weekly and daily, during periods of low
and normal flows after the plant is in operation and the system load has
grown to the extent that the capacity of the plant is required to meet
the load. For example, furnish:
(i) Hydrographs covering a 10-day low water period showing the
natural flow of the stream and the effect thereon caused by operations
of the proposed power plant:
(ii) Similar hydrographs covering a 10-day period during which the
discharge of the stream approximates average recorded yearly flow, and
(iii) Similar hydrographs covering a low water year using average
monthly flows.
(2) A system load curve, both daily and monthly, and the position on
the load curve that the proposed project would have occupied had it been
in operation.
(3) A proposed annual rule of operation for the storage reservoir or
reservoirs.
(Secs. 23, 309, 49 Stat. 841, 858; 16 U.S.C. 816, 817, 825h; Pub.
L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 175, 19 FR 5217, Aug. 18, 1954, as amended by Order 260, 28 FR
315, Jan. 11, 1963)
18 CFR 24.1 PART 25 -- APPLICATION FOR VACATION OF WITHDRAWAL AND FOR DETERMINATION PERMITTING RESTORATION TO ENTRY
18 CFR 25.1 Contents of application.
Any application for vacation of a reservation effected by the filing
of an application for preliminary permit or license, or for a
determination under the provisions of section 24 of the Act permitting
restoration for location, entry, or selection under the public lands
laws, or such lands reserved or classified as power sites shall, unless
the subject lands are National Forest Lands, be filed with the Bureau of
Land Management, Department of the Interior, at the Bureau's office in
Washington, D.C. or at the appropriate regional or field office of the
Bureau. If the lands included in such application are National Forest
Lands, the application shall be filed with the U.S. Forest Service,
Department of Agriculture at the Forest Service's office in Washington,
D.C., or at the appropriate regional office of the U.S. Forest Service.
Such application shall contain the following data: (a) Full name of
applicant; (b) post-office address; (c) description of land by legal
subdivisions, including section, township, range, meridian, county,
State, and river basin (both main and tributary) in which the land is
located; (d) public land act under which entry is intended to be made
if land is restored to entry; (e) the use to which it is proposed to
put the land, and a statement as to its suitability for the intended
use.
(Secs. 24, 309, 41 Stat. 1075, as amended; 49 Stat. 858; 16 USC.
818, 825h)
(Order 175, 19 FR 5218, Aug. 18, 1954, as amended by Order 346, 32 FR
7495, May 20, 1967)
Cross Reference: For entries subject to section 24 of the Federal
Power Act, see also 43 CFR subpart 2320.
18 CFR 25.2 Hearings.
A hearing upon such an application may be ordered by the Commission
in its discretion and shall be in accordance with the provisions of
subpart E of part 385 of this chapter.
Note 1: On April 17, 1922, the Commission made the following general
determination:
(a) That where lands of the United States have heretofore been, or
hereafter may be, reserved or classified as power sites, such
reservation or classification being made solely because such lands are
either occupied by power transmission lines or their occupancy and use
for such purposes has been applied for or authorized under appropriate
laws of the United States, and such lands have otherwise no value for
power purposes, and are not occupied in trespass, the Commission
determines that the value of such lands so reserved or classified, or so
applied for or authorized, will not be injured or destroyed for the
purposes of power development by location, entry, or selection under the
public land laws, subject to the reservation of section 24 of the
Federal Water Power Act (41 Stat. 1075; 16 U.S.C. 818).
(b) That when notice is given to the Secretary of the Interior of
reservations made under the provisions of section 24 of the Federal
Water Power Act, such notice shall indicate what lands so reserved, if
any, may, in accordance with the determination of the preceding
paragraph, be declared open to location, entry, or selection, subject to
the reservation of said section 24. Second Annual Report, page 128.
Note 2: On February 16, 1937, the Commission took the following
action:
Upon request under date of November 2, 1936, by the acting director,
Division of Grazing, Department of the Interior, for consent of the
Commission, pursuant to the act of June 28, 1934 (48 Stat. 1269), to
the establishment of grazing districts and the issuance of grazing
permits on lands of the United States withdrawn, classified, or
otherwise reserved for power purposes, except in those instances where
grazing will interfere with such purposes; and
Upon request under date of December 7, 1936, by the Acting Secretary
of the Interior for consent of the Commission, pursuant to the Act of
June 28, 1934 (48 Stat. 1269), as amended by the Act of June 26, 1936
(49 Stat. 1976), to the leasing under section 15 of said Act as amended,
of isolated tracts of lands of the United States, withdrawn for power
purposes:
The Commission upon consideration of the matter finds and determines:
That the establishment of grazing districts, the issuance of grazing
permits, and the leasing for grazing purposes, under said Act as
amended, of lands of the United States theretofore or thereafter
withdrawn, classified or otherwise reserved for power purposes, but not
including lands embraced within the project area of any power project
theretofore licensed by the Commission or otherwise authorized by the
United States, will not injure or destroy the value of such lands for
the purposes of power development nor otherwise abridge the jurisdiction
of the Commission; Provided, That such grazing districts shall be
established and such permits and leases for grazing permits issued
subject to the following conditions:
(1) That the establishment of the grazing district or the issuance of
the grazing permit or lease for grazing purposes shall in no wise
diminish or affect the jurisdiction of the Commission at any time to
issue permits or licenses pursuant to the provisions of the Federal
Power Act (49 Stat. 838; 16 U.S.C., Sup., 791-819); and that the
issuance by the Commission of a license shall immediately and
automatically terminate such grazing district, permit, or lease for
grazing purposes as to all lands within the project area described in
such license;
(2) That the establishment of the grazing district or the issuance of
the grazing permit or lease for grazing purposes involving lands
withdrawn for power purposes shall in no wise disminish or affect the
jurisdiction of the Commission at any time to make further
determinations that the value of any such lands for the purposes of
power development will not be injured or destroyed by location entry or
selection, as provided by section 24 of the Act and none of such lands
shall be declared open, otherwise than as hereinbefore provided, to
location, entry or selection except upon such further determination by
the Commission; and any such further determination shall immediately
and automatically terminate such grazing district, permit, or lease for
grazing purposes as to any lands involved in such further determination.
Now, therefore, the Commission consents to the estabishment of such
grazing districts and the issuance of grazing permits and leases for
grazing purposes of lands of the United States reserved for power
purposes subject to the conditions hereinabove set out;
Provided, however, That this determination and consent shall be
effective for lands embraced within grazing districts, as of the date of
the establishment of such districts, and for isolated tracts of lands
leased for grazing purposes, it shall be in effect when such leases are
issued, provided that notice thereof is received by this Commission from
the Bureau of Land Management, Department of the Interior, within 30
days thereafter, such notice to include full legal description of the
lands, withdrawn for power purposes which are involved.
(Secs. 24, 308, 39, 41 Stat. 1075, as amended, 40 Stat. 858; 16
U.S.C. 818, 825g, 825h)
(Order 141, 12 FR 8493, Dec. 19, 1947)
Cross Reference: For regulations of the Bureau of Land Management,
relating to grazing, see the Index to title 43 CFR part 4000-End.
(Order 141, 12 FR 8493, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 25.2 PART 32 -- INTERCONNECTION OF FACILITIES
Sec.
32.1 Contents of application; filing fee.
32.2 Required exhibits.
32.3 Other information.
32.4 Form and style; number of copies.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); E.O. No. 12,009, 3 CFR 1978 Comp., p. 142;
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1988); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1988).
Source: Order 141, 12 FR 8494, Dec. 19, 1947, unless otherwise
noted.
18 CFR 25.2 Application for an Order Directing the Establishment of Physical Connection of Facilities
18 CFR 32.1 Contents of application; filing fee.
Every application under section 202(b) of the Act shall be
accompanied by the fee prescribed in part 381 of this chapter and shall
set forth the following information:
(a) The exact legal name of the applicant and of all persons named as
parties in the application.
(b) The name, title, and post office address of the person to whom
correspondence in regard to the application shall be addressed.
(c) The person named in the application who is a public utility
subject to the act.
(d) The State or States in which each electric utility named in the
application operates, together with a brief description of the business
of and territory, by counties and States, served by such utility.
(e) Description of the proposed interconnection, showing proposed
location, capacity and type of construction.
(f) Reasons why the proposed connection, of facilities will be in the
public interest.
(g) What steps, if any, have been taken to secure voluntary
interconnection under the provisions of section 202(a) of the Act.
(Order 141, 12 FR 8494, Dec. 19, 1947, as amended by Order 427, 36 FR
5596, Mar. 25, 1971; Order 435, 50 FR 40357, Oct. 3, 1985)
18 CFR 32.2 Required exhibits.
There shall be filed with the application and as a part thereof the
following exhibits:
Exhibit A. Statement of the estimated capital cost of all facilities
required to establish the connection, and the estimated annual cost of
operating such facilities.
Exhibit B. A general or key map on a scale not greater than 20 miles
to the inch showing, in separate colors, the territory served by each
utility, and the location of the facilities used for the generation and
transmission of electric energy, indicating on said map the points
between which connection may be established most economically.
18 CFR 32.3 Other information.
The Commission may require additional information when it appears to
be pertinent in a particular case.
18 CFR 32.4 Form and style; number of copies.
An original and six conformed copies of an application under 32.1
to 32.4 must be filed.
(Order 342, 32 FR 6622, Apr. 29, 1967, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 32.4 PART 33 -- APPLICATION FOR SALE, LEASE, OR OTHER
DISPOSITION, MERGER OR CONSOLIDATION OF FACILITIES, OR FOR PURCHASE OR
ACQUISITION OF SECURITIES OF A PUBLIC UTILITY
Sec.
33.1 Applicability.
33.2 Contents of application; filing fee.
33.3 Required exhibits.
33.4 Additional information.
33.5 (Reserved)
33.6 Number of copies.
33.7 Verification.
33.8 Reports.
33.9 Public notice.
33.10 Commission action.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978);
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 141, 12 FR 8495, Dec. 19, 1947, unless otherwise
noted.
Cross References: For rules of practice and procedure, see part 385
of this title. For forms under rules of practice and regulations,
Federal Power Act, see part 131 of this chapter.
18 CFR 33.1 Applicability.
(a) The requirements of this part will apply to public utilities
seeking authority under section 203 of the Federal Power Act. This
authority extends to --
(1) The disposition by sale, lease or otherwise by a public utility
of the whole of its electric facilities subject to Commission
jurisdiction or any part thereof of a value in excess of $50,000.
(2) The merger or consolidation, directly or indirectly of the
facilities subject to the Commission's jurisdiction with those of any
other person having a value in excess of $50,000. This includes the
acquisition by a public utility of electric facilities used for the
transmission or sale at wholesale of electric energy in interstate
commerce which, except for ownership, would be subject to Commission's
jurisdiction.
(3) The purchase, acquisition or taking by a public utility of any
security of any other public utility.
(b) Value in excess of $50,000 as used in section 203 of the Federal
Power Act (16 U.S.C. 824b) shall be the original cost undepreciated as
defined in the Commission's uniform system of accounts prescribed for
public utilities and licensees.
(Order 397, 35 FR 5321, Mar. 31, 1970)
18 CFR 33.2 Contents of application; filing fee.
Each such applicant shall set forth in its application to the
Commission, which shall be accompanied by the fee prescribed in part 381
of this chapter, in the manner and form and in the order indicated, the
following information which should insofar as possible, be furnished as
to said applicant and each company whose facilities or securities are
involved:
(a) The exact name and the address of the principal business office.
(b) The State or other sovereign power under which incorporated, the
respective dates of incorporation, and the States in which domesticated.
(c) Name and address of the person authorized to receive notices and
communications in respect to application.
(d) The names, titles, and addresses of the principal officers.
(e) A description of the general character of the business done and
to be done, together with a designation of the territories served, by
counties and States.
(f) A general statement briefly describing the facilities owned or
operated for transmission of electric energy in interstate commerce or
the sale of electric energy at wholesale in interstate commerce.
(g) A brief reference to any license from the Federal Power
Commission.
(h) A statement as of the date of the balance sheet submitted with
application showing for each class and series of capital stock:
(1) Brief description.
(2) The amount authorized (face value and number of shares).
(3) The amount outstanding (exclusive of any amount held in the
treasury).
(4) Amount held as reacquired securities.
(5) Amount pledged.
(6) Amount owned by affiliated corporations.
(7) Amount held in any fund.
(i) A statement as of the date of the balance sheet submitted with
application showing for each class and series of funded debt:
(1) Brief description.
(2) The amount authorized.
(3) The amount outstanding (exclusive of any amount held in the
treasury).
(4) Amount held as reacquired securities.
(5) Amount pledged.
(6) Amount owned by affiliated corporations.
(7) Amount in sinking and other funds.
(j) Whether the application is for disposition of facilities by sale,
lease, or otherwise, a merger or consolidation of facilities, or for
purchase or acquisition of securities of a public utility, also a
description of the consideration, if any, and the method of arriving at
the amount thereof.
(k) A statement of facilities to be disposed of, consolidated, or
merged, giving a description of their present use and of their proposed
use after disposition, consolidation, or merger. State whether the
proposed disposition of facilities or plan for consolidation or merger
includes all the operating facilities of the parties to the transaction.
(l) A statement (in the form prescribed by the Commission's Uniform
System of Accounts for Public Utilities and Licensees) of the cost of
the facilities involved in the sale, lease, or other disposition or
merger or consolidation. If original cost is not known, an estimate of
original cost based, insofar as possible, upon records or data of the
applicant or its predecessors must be furnished, together with a full
explanation of the manner in which such estimate has been made, and a
description and statement of the present custody of all existing
pertinent data and records.
(m) A statement as to the effect of the proposed transaction upon any
contract for the purchase, sale, or interchange of electric energy.
(n) Names and addresses of counsel who have passed upon the legality
of the proposed sale, lease or other disposition of facilities, or
merger or consolidation of facilities, or purchase or acquisition of
securities of a public utility, and names and addresses of any firms of
which they, or any of them, are members.
(o) A statement as to whether or not any application with respect to
the transaction or any part thereof is required to be filed with any
other Federal or State regulatory body.
(p) The facts relied upon by applicants to show that the proposed
disposition, merger, or consolidation of facilities or acquisition of
securities will be consistent with the public interest.
(q) A brief statement of franchises held, showing date of expiration
if not perpetual.
(r) A form of notice suitable for publication in the Federal
Register, which will briefly summarize the facts contained in the
application in such way as to acquaint the public with its scope and
purpose.
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309; 41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617 (16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i); Natural Gas Act, as amended, particularly secs. 8,
10, and 16; 52 Stat. 825-826, 830 (15 U.S.C. 717g, 717i, 717o))
(Order 141, 12 FR 8495, Dec. 19, 1947, as amended by Order 149, 14 FR
4496, July 19, 1949; 14 FR 4668, July 27, 1949; Order 379, 34 FR 813,
Jan. 18, 1969; Order 427, 36 FR 5597, Mar. 25, 1971; Order 567, 42 FR
30613, June 16, 1977; Order 435, 50 FR 40357, Oct. 3, 1985)
18 CFR 33.3 Required exhibits.
There shall be filed with the application as part thereof one
certified copy and five uncertified copies of exhibits A, B, C, and D,
and one certified copy and five uncertified copies plus one for each
State affected of exhibits E, F, G, H, I, J, K, L, and M, described as
follows:
Exhibit A. A copy of the charter or articles of incorporation with
amendments to date.
Exhibit B. A copy of the by-laws with amendments to date.
Exhibit C. Copies of all resolutions of directors authorizing the
proposed disposition, merger, or consolidation of facilities, or
acquisition of securities, in respect to which the application is made,
and, if approval of stockholders has been obtained, copies of the
resolutions of the stockholders should also be furnished.
Exhibit D. Copies of all mortgages, trusts, deeds, or indentures,
securing any obligation of each party to the transaction.
Exhibit E. A signed copy of opinion of counsel in respect to
legality of the proposed transaction.
Exhibit F. A statement of the measure of control or ownership
exercised by or over each party to the transaction as to any public
utility, or bank, trust company, banking association, or firm that is
authorized by law to underwrite or participate in the marketing of
securities of a public utility, or any company supplying electric
equipment to such party. Where there are any intercorporate
relationships through holding companies, ownership of securities or
otherwise, the nature and extent of such relationship; also state
whether any of the parties to the transaction have officers or directors
in common. If not a member of any holding company system, include a
statement to that effect.
Exhibit G. Balance sheets and supporting plant schedules for the
most recent 12 month period only, on an actual basis and on a pro forma
basis in the form prescribed for Statement A and B of the FPC Annual
Report Form No. 1, prescribed by 141.1 of this chapter. The
adjustments necessary to arrive at the pro forma statements should be
clearly identified.
Exhibit H. A statement of all known contingent liabilities except
minor items such as damage claims and similar items involving relatively
small amounts, as of the date of the application.
Exhibit I. Income statement for the most recent 12 month period
only, on an actual basis and on a pro forma basis in the form prescribed
for Statement C of the FPC Annual Report Form No. 1 prescribed by
141.1 of this Chapter. The adjustments necessary to arrive at the pro
forma statements should be clearly identified.
Exhibit J. An analysis of retained earnings for the period covered
by the income statements referred to in exhibit I.
Exhibit K. A copy of each application and exhibit filed with any
other Federal or State regulatory body in connection with the proposed
transaction, and if action has been taken thereon, a certified copy of
each order relating thereto.
Exhibit L. A copy of all contracts in respect to the sale, lease, or
other proposed disposition, merger or consolidation of facilities, or
purchase of securities, as the case may be, together with copies of all
other written instruments entered into or proposed to be entered into by
the parties to the transaction pertaining thereto.
Exhibit M. A general or key map on a scale of not more than 20 miles
to the inch showing in separate colors the properties of each party to
the transaction, and distinguishing such parts of them as are included
in the proposed disposition, consolidation or merger. The map should
also clearly indicate all interconnections and the principal cities of
the area served. Whenever possible, the map should not be over 30
inches in its largest dimension.
Note: If exhibits A, B, and D have previously been filed with the
Commission, a specific reference thereto will be accepted in lieu of a
separate filing in each subsequent proceeding.
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309; 41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617 (16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i) and of the Natural Gas Act, as amended, particularly
secs. 8, 10, and 16; 52 Stat. 825-826, 830 (15 U.S.C. 717g, 717i,
717o))
(Order No. 141, 12 FR 8495, Dec. 19, 1947, as amended by Order 567,
42 FR 30613, June 16, 1977)
18 CFR 33.4 Additional information.
The Commission may require additional information when it appears to
be pertinent in a particular case.
33.5 (Reserved)
18 CFR 33.6 Number of copies.
An original and five copies, plus one copy for each State affected,
of applications under this part shall be submitted.
18 CFR 33.7 Verification.
The original application shall be signed by a person or persons
having authority with respect thereto and having knowledge of the
matters therein set forth, and shall be verified under oath.
18 CFR 33.8 Reports.
Upon the granting of any application under this part by the
Commission, applicants shall report to the Commission under oath within
10 days after any sale, lease, or other disposition of facilities,
merger or consolidation of facilities, or purchase or acquisition of
securities of a public utility, the fact of such sale, lease, or other
disposition of facilities, merger or consolidation of facilities, or
purchase or acquisition of securities, and the terms and conditions
thereof.
18 CFR 33.9 Public notice.
The Commission may require the applicant to give such local notice by
publication as the Commission in its discretion may deem proper.
18 CFR 33.10 Commission action.
Application under this part will ordinarily require 45 days after the
date of filing before final action can be taken thereon by the
Commission, to allow for such preliminary study, investigation, public
notice, opportunity for hearing, and consideration by the Commission, as
may be appropriate in the premises.
18 CFR 33.10 PART 34 -- APPLICATION FOR AUTHORIZATION OF THE ISSUANCE
OF SECURITIES OR THE ASSUMPTION OF LIABILITIES
Sec.
34.1 Applicability; definitions; exemptions in case of certain
State regulation, certain short-term issuances and certain qualifying
facilities.
34.2 Competitive bidding requirements; negotiated placements;
exemptions.
34.3 Contents of application for competitive bids or negotiated
placements.
34.4 Required exhibits.
34.5 Additional information.
34.6 Form and style.
34.7 Number of copies to be filed.
34.8 Verification.
34.9 Filing fee.
34.10 Reports.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978);
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 182, 46 FR 50514, Oct. 14, 1981, unless otherwise
noted.
Cross References: For rules of practice and procedure, see part 385
of this chapter. For Approved Forms, Federal Power Act, see part 131 of
this chapter.
OMB Reference: ''FERC Filing No. 523'' is the identification number
used by the Commission and the Office of Management and Budget to
reference the filing requirements in part 34.
18 CFR 34.1 Applicability; definitions; exemptions in case of certain
State regulation, certain short-term issuances and certain qualifying
facilities.
(a) Applicability. This part applies to applications for
authorization from the Commission to issue securities or assume an
obligation or liability which are filed by:
(1) Licensees and other entities pursuant to sections 19 and 20 of
the Federal Power Act (41 Stat. 1073, 16 U.S.C. 812, 813) and part 20 of
the Commission's regulations; and
(2) Public utilities pursuant to section 204 of the Federal Power Act
(49 Stat. 850, 16 U.S.C. 824c).
(b) Definitions. For the purpose of this part:
(1) The term utility means a licensee, public utility or other entity
seeking authorization under sections 19, 20 or 204 of the Federal Power
Act;
(2) The term securities includes any note, stock, treasury stock,
bond, or debenture or other evidence of interest in or indebtedness of a
utility;
(3) The term issuance or placement of securities means issuance or
placement of securities, or assumption of obligation or liability; and
(4) The term State means a State admitted to the Union, the District
of Columbia, and any organized Territory of the United States.
(c) Exemptions -- (1) If State regulates securities prior to
issuance. A utility whose security issuances are regulated by a State
agency, in a State in which it is organized and operating shall be
exempted from the provisions of sections 19, 20 and 204 of the Federal
Power Act, and from the provisions of this part: Provided, however,
That the State agency is required to exercise its regulatory authority
with respect to the issuance of such securities prior to issuance, and
that the utility must obtain written authorization or approval from the
State agency prior to the issuance of such securities.
(2) For short-term notes or drafts. Pursuant to section 204(e) of
the Federal Power Act, the issuance, renewal, or assumption of liability
on a note or draft:
(i) Maturing not more than one year after the date of such issuance,
renewal, or assumption of liability, and
(ii) Aggregating (together with all other then outstanding notes and
drafts of a maturity of one year or less on which such utility is
primarily or secondarily liable) not more than 5 per cent of the total
of the other securities of the utility then outstanding, including:
(A) In the case of securities having a par value, such par value, and
(B) In the case of securities having no par value, the fair market
value of such securities as of the date of issuance, renewal or
assumption of such note or draft, is exempt from Commission regulation
pursuant to this part: Provided, however, That within 10 days after any
such issuance, renewal, or assumption of liability, the utility shall
file with the Commission a certificate of notification, in the form set
forth in 131.50 of this chapter.
(3) For certain qualifying facilities. Any cogeneration or small
power production facility which is exempt from sections 19, 20 and 204
of the Federal Power Act pursuant to 292.601 of this chapter shall be
exempt from the provisions of this part.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended at 48 FR 9851,
Mar. 9, 1983)
18 CFR 34.2 Competitive bidding requirements; negotiated placements;
exemptions.
(a) Competitive bids -- (1) General requirement for competitive
bidding; exemptions. Every issuance by a utility of a security subject
to sections 19, 20 or 204 of the Federal Power Act shall be made only
after public invitation for and acceptance of competitive bids for such
securities in accordance with the requirements of this part, except
when:
(i) The securities are to be issued to holders of existing securities
on a pro-rata basis;
(ii) The securities are to be issued to a commercial bank, insurance
company or similar institution and are not for resale to the public:
Provided, however, That no fee or commission is paid to any third party
for negotiating the transaction (except an associated service company
charging only its costs of service);
(iii) The securities to be issued have a maturity of one year or
less; or
(iv) The issuance of the securities, if not otherwise exempt from the
competitive bidding requirements under paragraph (a)(1)(i), (ii), or
(iii) of this section, is nevertheless exempted by the Commission
pursuant to a utility's request, under paragraph (b)(2) of this section,
for authority to negotiate for placement of securities, in lieu of
seeking competitive bids:
Provided, however, That the Commission may deny any such exemption
from competitive bidding upon a finding that a non-competitive placement
is not consistent with the public interest.
(2) Competitive bid application and Commission action thereon. A
utility which proposes to issue securities subject to this part
according to competitive bidding procedures shall file an application
with the Commission under this part for authority to make such
issuances. Upon the receipt of authorization, the utility may invite
bids and issue the securities: Provided, however, That:
(i) The proposed bids as may be received in response to the public
invitation shall not be opened at any time or place other than as
specified in the invitation;
(ii) The duly authorized representative of any person making any such
proposed bid shall be entitled to be present at the opening of the
proposed bids and may examine each proposed bid submitted;
(iii) The invitation shall refer to the prohibitions set forth in
paragraph (c) of this section;
(iv) At least two of the bids received shall meet the conditions set
forth in the invitation for bids; and
(v)(A) The bid which is accepted shall provide the utility with the
greatest overall proceeds, or be the least costly of the proposals
obtained, or
(B) If the utility intends to accept a bid other than that described
in paragraph (a)(2)(v)(A) of this section, the utility shall before
accepting the bid:
(1) File with the Commission further justification as the Commission
may require, in support of the utility's intention to accept the other
bid, and
(2) Obtain Commission approval to accept the other bid.
(b) Negotiated placements -- (1) Negotiated placement application
pursuant to paragraph (a)(1)(i), (ii) or (iii), and Commission action
thereon. Any utility which is exempt from the competitive bidding
requirements under paragraph (a)(1)(i), (ii) or (iii) of this section
shall submit an application for negotiated placement of securities
pursuant to 34.3. Upon the Commission's authorization to such utility
for negotiated placement of the securities, the utility may make the
placement.
(2) Negotiated placement application pursuant to paragraph
(a)(1)(iv), and Commission action thereon. (i) A utility which requests
authority to issue securities by negotiation pursuant to paragraph
(a)(1)(iv) shall:
(A) File for and obtain an exemption from the Commission's
competitive bidding requirements prescribed in paragraph (a) of this
section;
(B) Upon receipt of the exemption, shall negotiate with, and obtain
proposals with regard to placement of the securities from at least three
prospective dealers, purchasers or underwriters, unless otherwise
authorized by the Commission, and each such dealer, purchaser or
underwriter shall be notified of the prohibitions set forth in paragraph
(c) of this section; and
(C) File an application for authority to issue the securities,
pursuant to 34.3.
(ii) Upon the Commission's authorization to a utility to issue the
securities, such utility may make the issuances.
(c) Prohibitions respecting competitive bids or negotiated
placements. No bid for the placement of any securities shall be invited
or accepted from, nor shall negotiations occur with, any person who:
(1) Prior to the submission of bids, or beginning of negotiations,
has performed any service for any fee or compensation in connection with
the proposed issuance of securities; or
(2) Violates section 305(a) of the Federal Power Act with respect to
the bid, invitation, or negotiation.
18 CFR 34.3 Contents of application for competitive bids or negotiated
placements.
Each application to the Commission for authority to issue securities
shall contain the information specified in this section. In lieu of
filing the information required in paragraphs (e), (k) and (l) of this
section, a specific reference may be made to the portion of the
registration statement filed under 34.4(f) of this chapter which
includes the information required in these paragraphs.
(a) The official name of the applicant and address of its principal
business office.
(b) The State in which the utility is incorporated, the date of
incorporation, and each State in which it operates.
(c) The name, address and telephone number of a person within the
utility authorized to receive notices and communications with respect to
the application.
(d) The date by which Commission action is requested.
(e) A full description of the securities proposed to be issued,
including:
(1) Type and nature of securities;
(2) Amount of securities (par or stated value and number of units);
(3) Interest or dividend rate, if any;
(4) Dates of issuance and maturity;
(5) Institutional rating of the securities -- or if the securities
are not rated, an explanation as to why they are not rated, and if the
securities will be rated, an estimate of the rating;
(6) Any stock exchange on which the securities will be listed; and
(7) Information in support of an exemption from competitive bidding
requirements pursuant to 34.2(a)(1) (i), (ii) or (iii).
(f) A description as to how such securities are to be issued and sold
or the procedure by which the applicant will assume any obligation or
liability as guarantor, endorser, surety, or otherwise.
(g)(1)(i) The name and address of any person receiving or entitled to
receive a fee for services (other than persons who render technical
services, such as attorneys, or accountants) related to the negotiation,
issuance or sale of securities; or, receiving or entitled to receive a
fee for services in securing underwriters, sellers, or purchasers of
securities, except as related to any competitive bid;
(ii) The amount of each such fee;
(iii) The facts showing that the services are necessary, and that the
fee is reasonable for rendering services in an arm's length transaction;
and
(iv) Any other relevant factors concerning fees or services that the
utility wished to provide.
(2) All facts showing or tending to show that the applicant directly
or indirectly controls, is controlled by, or is under the same common
control as any person named pursuant to the requirements of paragraph
(g)(1)(i) of this section; or facts showing or tending to show the
contrary. For purposes of this clause, control has the same meaning as
Control in Item 5.B. of the Definitions at 18 CFR part 101 Uniform
System of Accounts Prescribed for Public Utilities and Licensees Subject
to the Provisions of the Federal Power Act.
(h) The purpose for which the securities for which application is
made are to be issued:
(1) If the purpose of such issuance is the construction, completion,
extension, or improvement of facilities, describe in reasonable detail
the construction program for which the funds were or are to be used.
(2) If the purpose for such issuance is for the refunding of
obligations, describe in detail the obligations to be refunded,
including the character, principal amounts, applicable discount or
premium, dates of issuance and maturity, and all other material facts
concerning such obligations.
(3) If the purpose for such issuance is for other than construction
or refunding, explain such other purpose(s) in detail.
(i) A statement as to whether or not any application with respect to
the transaction or any part thereof is required to be filed with any
State regulatory body.
(j) A detailed statement of the facts relied upon by the applicant to
show that the issuance:
(1) Is for some lawful object, within the corporate purposes of the
applicant and compatible with the public interest, is necessary or
appropriate for or consistent with the proper performances by the
applicant of service as a public utility and will not impair its ability
to perform that service, and
(2) Is reasonably necessary or appropriate for such purposes.
(k) A detailed statement of the bond indenture(s) or other
limitations on interest and dividend coverage, and the effects of such
limitations on the issuance of additional debt or equity securities.
(l) A brief summary of any rate changes which were made effective
during the period for which financial statements are submitted or which
became or will become effective after the period for which statements
are submitted.
(m) A form of notice suitable for publication in the Federal
Register, setting forth: (1) The legal name of the applicant, (2) the
securities offered for issuance including the proposed issue date, and
(3) the comment procedure.
(n) Any applicable exhibits as required under 34.4.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended by Order 390, 49
FR 32505, Aug. 14, 1984)
18 CFR 34.4 Required exhibits.
(a) Exhibit A. A copy of the applicant's charter or articles of
incorporation with amendments to date of filing the application; and a
copy of the by-laws with amendments to date: Provided, however, That if
the documents required in this exhibit have been filed with the
Commission no more than 5 years prior to the current application, a
specific reference to, and the date of such previous filings, will be
accepted in lieu of separate filings.
(b) Exhibit B. A copy of all resolutions of the applicant's
directors authorizing the issuance of securities for which the
application is made; and copies of the resolution of the stockholders
approving such issuance if approval of the stockholders has been
obtained.
(c) Exhibit C. A statement of the measure of control or ownership
exercised by or over the applicant as to any utility, bank, trust
company, banking association, firm that is authorized by law to
underwrite or participate in the marketing of securities of a utility,
or any company supplying electric equipment to such applicant. If any
intercorporate relationships exist among any such entities through
holding companies, ownership of securities, or otherwise, a statement is
required concerning the ownership of securities or the nature and extent
of such relationship. If the applicant is not a member of any holding
company system, a statement to that effect is required.
(d) Exhibit D. The balance sheet and attached notes for the most
recent 12 month period, on both an actual basis and pro forma basis in
the form prescribed for Statement A, ''Comparative Balance Sheet'' of
Form No. 1, ''Annual Report for Major Electric Utilities, Licensees and
Others'' (see 18 CFR 141.1). Each adjustment made in determining the pro
forma basis shall be clearly identified.
(e) Exhibit E. The income statement, with attached notes, for the
most recent 12 month period, on both an actual basis and a pro forma
basis in the form prescribed for Statement C (''Statement of Income for
the Year'') of Form No. 1. Each adjustment made in determining the pro
forma basis shall be clearly identified.
(f) Exhibit F. A copy of registration statement and exhibits which
are filed with the Securities and Exchange Commission for the proposed
security issuance.
(g) Exhibit G. A copy of the public invitation(s) for proposals to
purchase or underwrite the securities offered for issuance.
(h) Exhibit H. (1) A copy of each proposal received by the applicant
for a negotiated placement of the securities offered for issuance, and a
summary tabulation of all proposals. If actual data concerning such
proposals are not available, estimated data may be substituted, if they
are identified as estimates. The summary shall include the following
information, identified by prospective dealer, purchaser or underwriter:
(i) Par or stated value of the securities.
(ii) Number of units (shares of stock, number of bonds) to be issued.
(iii) Total dollar amount of the issue.
(iv) Life of the securities, including maximum life and average life
for a sinking fund issue.
(v) Dividend or interest rate.
(vi) Call provisions.
(vii) Sinking fund provisions.
(viii) Offering price to public or to other purchaser(s).
(ix) Discount or premium.
(x) Commission or underwriting spread.
(xi) Net proceeds to company for each unit of security and for the
total issue.
(xii) Net cost to the company for securities with a stated interest
or divident rate.
(xiii) Other pertinent data.
(2) A list identifying any person with whom negotiations took place
but from whom no proposal was received.
(3) A justification in support of the utility's intention to accept a
particular offer.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended by Order 390, 49
FR 32505, Aug. 14, 1984)
18 CFR 34.5 Additional information.
The Commission may, in its discretion, require the filing of
additional information which appears necessary to reach a determination
on any particular application.
18 CFR 34.6 Form and style.
Each application pursuant to this part 34 shall conform to the
requirements of subpart T of part 385 of this chapter.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended by Order 225, 47
FR 19056, May 3, 1982)
18 CFR 34.7 Number of copies to be filed.
Each applicant shall submit to this Commission an original and four
copies of each application pursuant to this part 34.
18 CFR 34.8 Verification.
The original application shall be signed by an authorized
representative of the applicant, who has knowledge of the matters set
forth therein, and it shall be verified under oath.
18 CFR 34.9 Filing fee.
Each application shall be accompanied by a fee as prescribed in part
381 of this chapter.
(Order 182, 46 FR 50514, Oct. 14, 1981, by Order 435, amended at 50
FR 40357, Oct. 3, 1985)
18 CFR 34.10 Reports.
The applicant shall file a report pursuant to 18 CFR 131.43 no later
than 180 days after the sale or placement of equity or long-term debt
securities, or entry into other contractual obligations pursuant to
authority granted under this part. This requirement does not apply to
debt having a maturity of one year or less.
18 CFR 34.10 PART 35 -- FILING OF RATE SCHEDULES
18 CFR 34.10 Subpart A -- Application
Sec.
35.0 Filing fees.
35.1 Application; obligation to file rate schedules.
35.2 Definitions.
35.3 Notice requirements.
35.4 Permission to become effective is not approval.
35.5 Rejection of material submitted for filing.
35.6 Submission for staff suggestions.
35.7 Number of copies to be supplied.
35.8 Comments by interested parties.
35.9 Identification and numbering of rate schedules.
35.10 Form and style of rate schedules.
35.11 Waiver of notice requirement.
18 CFR 34.10 Subpart B -- Documents To Be Submitted With a Filing
35.12 Filing of initial rate schedules.
35.13 Filing of changes in rate schedules.
18 CFR 34.10 Subpart C -- Other Filing Requirements
35.14 Fuel cost and purchased economic power adjustment clauses.
35.15 Notices of cancellation or termination.
35.16 Notice of succession.
35.17 Changes relating to suspended rate schedules or parts thereof.
35.18 Rates established by order of the Commission.
35.19 Submission of information by reference.
35.19a Refund requirements under suspension orders.
35.20 Filing of rate schedules, notices, etc., by persons authorized
to transmit electric energy from the United States to a foreign country.
35.21 Applicability to licensees and others subject to section 19 or
20 of the Federal Power Act.
35.22 Research and development clauses.
35.23 Limits for percentage adders in rates for transmission
services; revision of rate schedules.
35.24 (Reserved)
35.25 Tax normalization for public utilities.
35.26 Construction work in progress.
35.27 Changes of rates relating to changes in the Federal corporate
income tax rate.
18 CFR 34.10 Subpart D -- Procedures and Requirements for Public
Utility Sales of Power to Bonneville Power Administration Under
Northwest Power Act
35.30 General provisions.
35.31 Commission review.
Authority: 42 U.S.C. 7101-7352; E.O. 12009, 3 CFR 1978 Comp., p.
142; 31 U.S.C. 9701; 16 U.S.C. 791a-825r; 16 U.S.C. 2601-2645.
Source: Order 271, 28 FR 10573, Oct. 2, 1963, unless otherwise
noted.
18 CFR 34.10 Subpart A -- Application
18 CFR 35.0 Filing fees.
Every filing made under this part shall be accompanied by the fee
described in part 381 of this chapter.
(Order 427, 36 FR 5597, Mar. 25, 1971, as amended by Order 435, 50 FR
40357, Oct. 3, 1985)
18 CFR 35.1 Application; obligation to file rate schedules.
(a) Every public utility shall file with the Commission and post, in
conformity with the requirements of this part, full and complete rate
schedules, as defined in 35.2(b), clearly and specifically setting
forth all rates and charges for any transmission or sale of electric
energy subject to the jurisdiction of this Commission, the
classifications, practices, rules and regulations affecting such rates
and charges and all contracts which in any manner affect or relate to
such rates, charges, classifications, services, rules, regulations or
practices, as required by section 205(c) of the Federal Power Act (49
Stat. 851; 16 U.S.C. 824d(c)). Where two or more public utilities are
parties to the same rate schedule, each public utility transmitting or
selling electric energy subject to the jurisdiction of this Commission
shall post and file such rate schedule, or the rate schedule may be
filed by one such public utility and all other parties having an
obligation to file may post and file a certificate of concurrence on the
form indicated in 131.52 of this chapter: Provided, however, In cases
where two or more public utilities are required to file rate schedules
or certificates of concurrence such public utilities may authorize a
designated representative to file upon behalf of all parties if upon
written request such parties have been granted Commission authorization
therefor.
(b) A rate schedule applicable to a transmission or sale of electric
energy, other than that which proposes to supersede, supplement, cancel
or otherwise change the provisions of a rate schedule required to be on
file with this Commission, shall be filed as an initial rate in
accordance with 35.12.
(c) A rate schedule applicable to a transmission or sale of electric
energy which proposes to supersede, supplement, cancel or otherwise
change any of the provisions of a rate schedule required to be on file
with this Commission (such as providing for other or additional rates,
charges, classifications or services, or rules, regulations, practices
or contracts for a particular customer or customers) shall be filed as a
change in rate in accordance with 35.13, except Notices of Cancellation
or Termination which shall be filed as a change in accordance with
35.15.
(d)(1) The provisions of this paragraph (d) shall apply to rate
schedules tendered for filing on or after August 1, 1976, which are
applicable to the transmission or sale of firm power for resale to an
all-requirements customer, whether tendered pursuant to 35.12 as an
initial rate schedule or tendered pursuant to 35.13 as a change in an
existing rate schedule whose term has expired or whose term is to be
extended.
(2) Rate schedules covered by the terms of paragraph (d)(1) of this
section shall contain the following provision when it is the intent of
the contracting parties to give the party furnishing service the
unrestricted right to file unilateral rate changes under section 205 of
the Federal Power Act:
Nothing contained herein shall be construed as affecting in any way
the right of the party furnishing service under this rate schedule to
unilaterally make application to the Federal Power Commission for a
change in rates under section 205 of the Federal Power Act and pursuant
to the Commission's Rules and Regulations promulgated thereunder.
(3) Rate schedules covered by the terms of paragraph (d)(1) of this
section shall contain the following provision when it is the intent of
the contracting parties to withhold from the party furnishing service
the right to file any unilateral rate changes under section 205 of the
Federal Power Act:
The rates for service specified herein shall remain in effect for the
term of ---------- or until ---------- , and shall not be subject to
change through application to the Federal Power Commission pursuant to
the provisions of Section 205 of the Federal Power Act absent the
agreement of all parties thereto.
(4) Rate schedules covered by the terms of paragraph (d)(1) of this
section, but which are not covered by paragraphs (d)(2) or (d)(3) of
this section, are not required to contain either of the boilerplate
provisions set forth in paragraph (d)(2) or (d)(3) of this section.
(e) No public utility shall, directly or indirectly, demand, charge,
collect or receive any rate, charge or compensation for or in connection
with electric service subject to the jurisdiction of the Commission, or
impose any classification, practice, rule, regulation or contract with
respect thereto, which is different from that provided in a rate
schedule required to be on file with this Commission unless otherwise
specifically provided by order of the Commission for good cause shown.
(f) A rate schedule applicable to the sale of electric power by a
public utility to the Bonneville Power Administration under section 5(c)
of the Pacific Northwest Electric Power Planning and Conservation Act
(Pub. L. No. 96-501 (1980)) shall be filed in accordance with subpart D
of this part.
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 541, 40 FR
56425, Dec. 3, 1975; Order 541-A, 41 FR 27831, July 7, 1976; 46 FR
50520, Oct. 14, 1981; Order 337, 48 FR 46976, Oct. 17, 1983)
18 CFR 35.2 Definitions.
(a) Electric service. The term electric service as used herein shall
mean the transmission of electric energy in interstate commerce or the
sale of electric energy at wholesale for resale in interstate commerce,
and may be comprised of various classes of capacity and energy sales
and/or transmission services. Electric service shall include the
utilization of facilities owned or operated by any public utility to
effect any of the foregoing sales or services whether by leasing or
other arrangements. As defined herein, electric service is without
regard to the form of payment or compensation for the sales or services
rendered whether by purchase and sale, interchange, exchange, wheeling
charge, facilities charge, rental or otherwise.
(b) Rate schedule. The term rate schedule as used herein shall mean
a statement of (1) electric service as defined in paragraph (a) of this
section, (2) rates and charges for or in connection with that service,
and (3) all classifications, practices, rules, regulations or contracts
which in any manner affect or relate to the aforementioned service,
rates, and charges. This statement shall be in writing and may take the
physical form of a contractual document, purchase or sale agreement,
lease of facilities, tariff1033 or other writing. Any oral agreement or
understanding forming a part of such statement shall be reduced to
writing and made a part thereof.
(c) Filing date. The term filing date as used herein shall mean the
date on which a rate schedule filing is completed by the receipt in the
office of the Secretary of all supporting cost and other data required
to be filed in compliance with the requirements of this part, unless
such rate schedule is rejected as provided in 35.5. If the material
submitted is found to be incomplete, the Director of the Office of
Electric Power Regulation will so notify the filing utility within 60
days of the receipt of the submittal.
(d) Posting. The term posting as used herein shall mean, (1) keeping
a copy of every rate schedule of a public utility as currently on file,
or as tendered for filing, with the Commission open and available during
regular business hours for public inspection in a convenient form and
place at the public utility's principal and district or division offices
in the territory served, and (2) mailing to each purchaser under a rate
schedule a copy of such rate schedule on the date it is sent to this
Commission for filing. Posting shall include, in the event of the
filing of increased rates or charges, the mailing to each purchaser
under a rate schedule or schedules proposed to be changed and to each
State Commission within whose jurisdiction such purchaser or purchasers
distribute and sell electric energy at retail, a copy of the rate
schedule showing such increased rates or charges, comparative billing
data as required under this part, and, if requested by a purchaser or
State Commission, a copy of the supporting data required to be submitted
to this Commission under this part. Upon direction of the Secretary,
the public utility shall serve copies of rate schedules and
supplementary data upon designated parties other than those specified
herein.
(e) Effective date. As used herein the effective date of a rate
schedule shall mean the date on which a rate schedule filed and posted
pursuant to the requirements of this part is permitted by the Commission
to become effective as a filed rate schedule. The effective date shall
be 60 days after the filing date, or such other date as may be specified
by the Commission.
(16 U.S.C. 284(d), 792 et seq.; Pub. L. 95-617; Pub. L. 95-91; E.O.
12009, 42 FR 46267)
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended at 28 FR 11404,
Oct. 24, 1963; 43 FR 36437, Aug. 17, 1978; 44 FR 16372, Mar. 19, 1979;
44 FR 20077, Apr. 4, 1979; Order 39, 44 FR 46454, Aug. 8, 1979)
0331The term tariff means a compilation, in book form, of rate
schedules of a particular public utility, effective under the Federal
Power Act, and a copy of each form of service agreement. In connection
herewith, attention is invited to part 154 of this chapter, i.e., the
Commission's regulations under the Natural Gas Act, as a guide to the
form and composition of a tariff.
18 CFR 35.3 Notice requirements.
(a) Rate schedules. All rate schedules or any part thereof shall be
tendered for filing with the Commission and posted not less than sixty
days nor more than one hundred-twenty days prior to the date on which
the electric service is to commence and become effective under an
initial rate schedule or the date on which the filing party proposes to
make any change in electric service and/or rate, charge, classification,
practice, rule, regulation, or contract effective as a change in rate
schedule, except as provided in paragraph (b) of this section, or unless
a different period of time is permitted by the Commission. Nothing
herein shall be construed as in any way precluding a public utility from
entering into agreements which, under this section, may not be filed at
the time of execution thereof by reason of the aforementioned sixty to
one hundred-twenty day prior filing requirements. The proposed
effective date of any rate schedule filing having a filing date in
accordance with 35.2(c) may be deferred at the written request of the
filing public utility submitted to the Secretary prior to its acceptance
by the Commission.
(b) Construction of facilities. Rate schedules predicated on the
construction of facilities may be tendered for filing and posted no more
than one hundred-twenty days prior to the date set by the parties for
the contract to go into effect. The Commission, upon request, may
permit a rate schedule or part thereof to be tendered for filing and
posted more than one hundred-twenty days before it is to become
effective.
(16 U.S.C. 284(d); Pub. L. 95-617; Pub. L. 95-91; E.O. 12009, 42
FR 46267)
(44 FR 16372, Mar. 19, 1979; 44 FR 20077, Apr. 4, 1979)
18 CFR 35.4 Permission to become effective is not approval.
The fact that the Commission permits a rate schedule or any part
thereof or any notice of cancellation to become effective shall not
constitute approval by the Commission of such rate schedule or part
thereof or notice of cancellation.
18 CFR 35.5 Rejection of material submitted for filing.
The Secretary, pursuant to the Commission's rules of practice and
procedure and delegation of Commission authority, shall reject any
material submitted for filing with the Commission which patently fails
to substantially comply with the applicable requirements set forth in
this part, or the Commission's rules of practice and procedure.
18 CFR 35.6 Submission for staff suggestions.
Any public utility may submit a rate schedule or any part thereof or
any material relating thereto for the purpose of receiving staff
suggestions and comments thereon prior to filing with the Commission.
18 CFR 35.7 Number of copies to be supplied.
All tariffs, rate schedules and contracts, or parts thereof, and
material related thereto including any change in rates, certificates of
concurrence, notices of cancellation or termination, and notices of
succession, shall be supplied to the Commission for filing in six
copies. All copies are to be included in one package, together with six
copies of the letter of transmittal and all other materials and
information required by these regulations, and addressed to the Federal
Power Commission, Washington, DC 20426.
(Order 525, 40 FR 8947, Mar. 4, 1975)
18 CFR 35.8 Comments by interested parties.
(a) Form of notice for Federal Register. The public utility shall
file a form of notice suitable for publication in the Federal Register
which shall be in the following form:
Take notice that (name of public utility), on (date), tendered for
filing proposed changes in its FPC Electric Service Tariff, (Volume
Nos.), (The following language in the first paragraph applies only to
increased rate filings). The proposed changes would increase revenues
from jurisdictional sales and service by (amount) based on the 12 month
period ending (date). (If changes other than increased rates and
charges are proposed, the public utility shall concisely state the
nature of these changes).
(The public utility shall briefly describe the reasons for the
proposed changes in the second paragraph.)
Copies of the filing were served upon the public utility's
jurisdictional customers, (other parties the public utility served,
inter alia, state public service commissions, other government agencies,
etc.).
Any person desiring to be heard or to protest said application should
file a petition to intervene or protest with the Federal Power
Commission, 825 North Capitol Street, NE., Washington, DC 20426, in
accordance with 385.212 and 385.207 of this chapter. All such
petitions or protests should be filed on or before ---------- .
Protests will be considered by the Commission in determining the
appropriate action to be taken, but will not serve to make protestants
parties to the proceeding. Any person wishing to become a party must
file a petition to intervene. Copies of this application are on file
with the Commission and are available for public inspection.
(Order 487, 38 FR 19967, July 26, 1973, as amended by Order 225, 47
FR 19056, May 3, 1982)
18 CFR 35.9 Identification and numbering of rate schedules.
Every rate schedule filed will be numbered by the Commission and the
filing public utility advised of the Rate Schedule FPC number. Whenever
a rate schedule offered for filing changes, alters or modifies any rate,
charge, classification, or service, or any rule, regulation, practice or
contract relating thereto, or provides additionally for a rate, charge,
classification or service, or any rule regulation or practice or
contract relating thereto, but is dependent upon and amendatory of an
existing rate schedule on file with the Commission, it will be
designated as a supplement or an exhibit to the existing rate schedule
and will be so numbered.
18 CFR 35.10 Form and style of rate schedules.
(a) Every rate schedule offered for filing with the Commission under
this part, shall show on a title page, which shall be otherwise blank,
(1) the name of the filing public utility, (2) the names of other
utilities rendering or receiving service under the rate schedule; and
(3) a brief description of the service to be provided under the rate
schedule.
(b) All rate schedules tendered for filing under this part must be
printed or otherwise reproduced on 8 1/2 inches wide by 11 inches long
white, durable paper so as to result in a clear and permanent record.
All copies must be clear, legible, complete, and must show the name(s)
of all signatories to executed documents.
18 CFR 35.11 Waiver of notice requirement.
Upon application and for good cause shown, the Commission may, by
order, provide that a rate schedule, or part thereof, shall be effective
as of a date prior to the date of filing or prior to the date the rate
schedule would become effective in accordance with these rules.
Application for waiver of the prior notice requirement shall show (a)
how and the extent to which the filing public utility and pur- chaser(s)
under such rate schedule, or part thereof, would be affected if the
notice requirement is not waived, and (b) the effects of the waiver, if
granted, upon purchasers under other rate schedules. The filing public
utility requesting such waiver of notice shall serve copies of its
request therefor upon all purchasers.
18 CFR 35.11 Subpart B -- Documents To Be Submitted With a Filing
18 CFR 35.12 Filing of initial rate schedules.
(a) The letter of a public utility transmitting to the Commission for
filing an initial rate schedule shall list the documents submitted with
the filing; give the date on which the service under that schedule is
expected to commence; state the names and addresses of those to whom
the rate schedule has been mailed; contain a brief description of the
kinds of services to be furnished at the rates specified therein; and
summarize the circumstances which show that all requisite agreement to
the rate schedule or the filing thereof, including any contract embodied
therein, has in fact been obtained. In the case of coordination and
interchange arrangements in the nature of power pooling transactions,
all supporting data required to be submitted in support of a rate
schedule filing shall also be submitted by parties filing certificates
of concurrence, or a representative to file supporting data on behalf of
all parties may be designated as provided in 35.1.
(b) In addition, the following material shall be submitted:
(1) Estimates of the transactions and revenues under an initial rate
schedule. This shall include estimates, by months and for the year, of
the quantities of services to be rendered and of the revenues to be
derived therefrom during the 12 months immediately following the month
in which those services will commence. Such estimates should be
subdivided by classes of service, customers, and delivery points and
shall show all billing determinants, e.g., kw, kwh, fuel adjustment,
power factor adjustment. These estimates will not be required where
they cannot be made with relative accuracy as, for example, in cases of
interconnection arrangements containing schedules of rates for emergency
energy, spinning reserve or economy energy or in cases of coordination
and integration of hydroelectric generating resources whose output
cannot be predicted quantitatively due to water conditions.
(2)(i) Basis of the rate or charge proposed in an initial rate
schedule and an explanation of how the proposed rate or charge was
derived. For example, is it a standard rate of the filing public
utility; is it a special rate arrived at through negotiations and, if
so, were unusual customer requirements or competitive factors involved;
and is it designed to produce a return substantially equal to the filing
public utility's overall rate of return or is it essentially an
increment cost plus a share of the savings rate? Were special cost of
service studies prepared in connection with the derivation of the rate?
(ii) A summary statement of all cost (whether fully distributed,
incremental or other) computations involved in arriving at the
derivation of the level of the rate, in sufficient detail to justify the
rate, shall be submitted with the filing, except that if the filing
includes nothing more than service to one or more added customers under
an established rate of the utility for a particular class of service,
such summary statement of cost computations is not required. In all
cases, the Secretary is authorized to require the submission of the
complete cost studies as part of the filing and each filing public
utility shall submit the same upon request by the Secretary in such form
as he shall direct.
(3) A comparison of the proposed initial rate with other rates of the
filing public utility for similar wholesale for resale and transmission
services.
(4) If any facilities are installed or modified in order to supply
the service to be furnished under the proposed rate schedule, the filing
public utility shall show on an appropriate available map (or sketch)
and single line diagram the additions or changes to be made.
(5) In support of the design of the proposed rate, the filing public
utility shall submit the same material required to be furnished pursuant
to 35.13(h)(37) Statement BL. In addition to the summary cost analysis
required by Statement BL, the public utility shall also submit a
complete explanation as to the method used in arriving at the cost of
service allocated to the sales and service for which the rate or charge
is proposed, and showing the principal determinants used for allocation
purposes. In connection therewith, the following data should be
submitted:
(i) In the event the filing public utility considers certain special
facilities as being devoted entirely to the service involved, it shall
show the cost of service related to such special facilities.
(ii) Computations showing the energy responsibility of the service,
based upon considerations of energy sales under the proposed rate
schedule and the kWh delivered from the filing public utility's supply
system.
(iii) Computations showing the demand responsibility of the service,
and explaining the considerations upon which such responsibility was
determined (e.g., coincident or non-coincident peak demands, etc.).
(Federal Power Act, 16 U.S.C. 792-828c; Department of Energy
Organization Act, 42 U.S.C. 7101-7352; E.O. 12009, 42 FR 46267; Pub.
L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended at 28 FR 11404,
Oct. 24, 1963; Order 537, 40 FR 48674, Oct. 17, 1975; Order 91, 45 FR
46363, July 10, 1980)
18 CFR 35.13 Filing of changes in rate schedules.
(a) General rule.
(1) Filing for any rate schedule change not otherwise excepted.
(2) Abbreviated filing requirements.
(3) Cost of service data required by letter.
(b) General information.
(c) Information relating to the effect of the rate schedule change.
(d) Cost of service information.
(1) Filing of Period I data.
(2) Filing of Period II data.
(3) Definitions.
(4) Test period.
(5) Work papers.
(6) Additional information.
(7) Attestation.
(e) Testimony and exhibits.
(1) Filing requirements.
(2) Case in chief.
(3) Burden of proof.
(f) Filing by parties concurring in coordination and interchange
arrangements.
(g) Commission precedents and policy.
(h) Cost of service statements.
(1) AA -- Balance sheets.
(2) AB -- Income statements.
(3) AC -- Retained earnings statements.
(4) AD -- Cost of plant.
(5) AE -- Accumulated depreciation and amortization.
(6) AF -- Specified deferred credits.
(7) AG -- Specified plant accounts (other than plant in service) and
deferred debits.
(8) AH -- Operation and maintenance expenses.
(9) AI -- Wages and salaries.
(10) AJ -- Depreciation and amortization expenses.
(11) AK -- Taxes other than income taxes.
(12) AL -- Working capital.
(13) AM -- Construction work in progress.
(14) AN -- Notes payable.
(15) AO -- Rate for allowance for funds used during construction.
(16) AP -- Federal income tax deductions -- interest.
(17) AQ -- Federal income tax deductions -- other than interest.
(18) AR -- Federal tax adjustments.
(19) AS -- Additional state income tax deductions.
(20) AT -- State tax adjustments.
(21) AU -- Revenue credits.
(22) AV -- Rate of return.
(23) AW -- Cost of short-term debt.
(24) AX -- Other recent and pending rate changes.
(25) AY -- Income and revenue tax rate data.
(26) BA -- Wholesale customer rate groups.
(27) BB -- Allocation demand and capability data.
(28) BC -- Reliability data.
(29) BD -- Allocation energy and supporting data.
(30) BE -- Specific assignment data.
(31) BF -- Exclusive-use commitments of major power supply
facilities.
(32) BG -- Revenue data to reflect changed rates.
(33) BH -- Revenue data to reflect present rates.
(34) BI -- Fuel cost adjustment factors.
(35) BJ -- Summary data tables.
(36) BK -- Electric utility department cost of service, total and as
allocated.
(37) BL -- Rate design information.
(38) Statement BM -- Construction program statement.
(a) General rule. Every public utility shall file the information
required by this section, as applicable, at the time it files with the
Commission under 35.1 of this part all or part of a rate schedule to
supersede, supplement, or otherwise change the provisions of a rate
schedule filed with the Commission under 35.1. Any petition filed under
385.207 of this chapter for waiver of any provision of this section
shall specifically identify the requirement that the applicant wishes
the Commission to waive.
(1) Filing for any rate schedule change not otherwise excepted.
Except as provided in paragraph (a)(2) of this section, any utility that
files a rate schedule change shall submit with its filing the
information specified in paragraphs (b), (c), (d), (e), and (h) of this
section, in accordance with paragraph (g) of this section.
(2) Abbreviated filing requirements. (i) For certain rate increases.
Any utility that files a rate schedule change that provides for a rate
increase may submit with its filing only the information required in
paragraphs (b), (c), and (h)(37) of this section and in 35.12(b) (2)
and (5) of this part and, for any rate increase decribed in clause (B)
of this subparagraph, the information required in paragraph (h)(38) of
this section, in accordance with paragraph (g) of this section, if the
rate increase is:
(A) Less than $200,000 for Period I, as defined in paragraph
(d)(3)(i) of this section;
(B) One to which all wholesale customers that belong to the affected
rate class consent and that is less than one million dollars for Period
I;
(C) For any service of short duration and of a type for which the
need and usage cannot be reasonably forecasted, such as emergency or
short-term power; or
(D) An integral part of a coordination and interchange arrangement.
This exception to the requirements of paragraph (a)(1) of this section
does not apply to interchange schedules providing for firm services
(services furnished on an assured basis).
(ii) For rate schedule changes other than rate increases. (A) Except
as provided in paragraph (a)(2)(ii)(B) of this section, any utility that
files a rate schedule change that does not provide for a rate increase
or that provides for a rate increase that is based solely on change in
delivery points, a change in delivery voltage, or a similar change in
service, must submit with its filing only the information required in
paragraphs (b) and (c) of this section.
(B) Any utility that files a rate schedule change that provides for a
rate decrease under 35.27 of this part must submit with its filing only
the information required by 35.27 of this part.
(iii) Computing rate increases. For purposes of this subparagraph
and paragraph (d)(2)(ii) of this section, the amount of any rate
increase shall be the difference between the total revenues to be
recovered under the rate schedule change and the total revenues
recovered or recoverable under the rate schedule to be superseded or
supplemented and shall be determined by:
(A) applying the components of the rate schedule to be superseded or
supplemented to the billing determinants for the twelve months of Period
I;
(B) Applying the components of the rate schedule change to the
billing determinants for the twelve months of Period I; and
(C) Subtracting the total revenues under subclause (A) from the total
revenues under subclause (B).
(3) Cost of service data required by letter. The Director of the
Office of Electric Power Regulation may, by letter, require a utility
that is not required under paragraph (a)(1) of this section to submit
cost of service data to submit such specified cost of service data as
are needed for Commission analysis of the rate schedule change.
(b) General information. Any utility subject to paragraph (a) of
this section shall file the following general information:
(1) A list of documents submitted with the rate schedule change;
(2) The date on which the utility proposes to make the rate schedule
change effective;
(3) The names and addresses of persons to whom a copy of the rate
schedule change has been mailed;
(4) A brief description of the rate schedule change;
(5) A statement of the reasons for the rate schedule change;
(6) A showing that all requisite agreement to the rate schedule
change, or to the filing of the rate schedule change, including any
agreement required by contract, has in fact been obtained;
(7) A statement showing any expenses or costs included in the cost of
service statements for Period I or Period II, as defined in paragraph
(d)(3) of this section, that have been alleged or judged in any
administrative or judicial proceeding to be illegal, duplicative, or
unnecessary costs that are demonstrably the product of discriminatory
employment practices; and
(8) A form of notice suitable for publication in the Federal Register
in accordance with 35.8 of this part.
(c) Information relating to the effect of the rate schedule change.
Any utility subject to paragraph (a) of this section shall also file the
following information or materials:
(1) A table or statement comparing sales and services and revenues
from sales and services under the rate schedule to be superseded or
supplemented and under the rate schedule change, by applying the
components of each such rate schedule to the billing determinants for
each class of service, for each customer, and for each delivery point or
set of delivery points that constitutes a billing unit:
(i) Except as provided in clause (ii), for each of the twelve months
immediately before and each of the twelve months immediately after the
proposed effective date of the rate schedule change, and the total for
each of the two twelve month periods; or
(ii) At the election of the utility:
(A) If the utility files Statements BG and BH under paragraph (h) for
Period I, for each of the twelve months of Period I instead of for the
twelve months immediately before the proposed effective date of the rate
schedule change; and
(B) If Period II is the test period, for each of the twelve months of
Period II instead of for the twelve months immediately after the
proposed effective date of the rate schedule change;
(2) A comparison of the rate schedule change and the utility's other
rates for similar wholesale for resale and transmission services; and
(3) If any specifically assignable facilities have been or will be
installed or modified in order to supply service under the rate schedule
change, an appropriate map or sketch and single line diagram showing the
additions or changes to be made.
(d) Cost of service information -- (1) Filing of Period I data. Any
utility that is required under paragraph (a)(1) of section to submit
cost of service information, or that is subject to the exception in
paragraph (a)(2)(i) of this section but elects to file such information,
shall submit Statements AA through BM under paragraph (h) using:
(i) Unadjusted Period I data; or
(ii) Period I data adjusted to reflect changes that affect revenues
and costs prior to the proposed effective date of the rate schedule
change and that are known and measurable with reasonable accuracy at the
time the rate schedule change is filed, if such utility:
(A) Is not required to and does not file Period II data;
(B) Adjusts all Period I data to reflect such changes; and
(C) Fully supports the adjustments in the appropriate cost of service
statements.
(2) Filing of Period II data. (i) Except as provided in clause (ii)
of this subparagraph, any utility that is required under paragraph
(a)(1) of this section to submit cost of service information shall
submit Statements AA through BM described in paragraph (h) using
estimated costs and revenues for Period II;
(ii) A utility may elect not to file Period II data if:
(A) The utility files a rate increase that is less than one million
dollars for Period I; or
(B) All wholesale customers that belong to the affected rate class
have consented to the rate increase.
(3) Definitions. For purposes of this section:
(i) Period I means the most recent twelve consecutive months, or the
most recent calendar year, for which actual data are available, the last
day of which is no more than fifteen months before the date of tender
for filing under 35.1 of the notice of rate schedule change;
(ii) Period II means any period of twelve consecutive months after
the end of Period I that begins:
(A) No earlier than nine months before the date on which the rate
schedule change is proposed to become effective; and
(B) No later than three months after the date on which the rate
schedule change is proposed to become effective.
(4) Test period. If Period II data are not submitted for Statements
AA through BM, Period I shall be the test period. If Period II data are
submitted for Statements AA through BM, Period II shall be the test
period.
(5) Work papers. A utility that files adjusted Period I data or that
files Period II data shall submit all work papers relating to such data.
The utility shall provide a comprehensive explanation of the bases for
the adjustments or estimates and, if such adjustments or estimates are
based on a regularly prepared corporate budget, shall include relevant
excerpts from such budget. Work papers and documents containing
additional explanatory material shall be cut or folded to letter size,
shall be assigned page numbers, and shall be marked, organized and
indexed according to:
(A) Subject matter;
(B) The cost of service statements to which they apply; and
(C) Witness.
(6) Additional information. If the Commission orders an
investigation of a rate schedule change, the utility shall submit all of
the following information not previously submitted to the Commission,
for the first full calendar quarter beginning after issuance of the
order initiating the investigation and shall submit such information for
each subsequent calendar quarter until the Commission issues a final
order concluding the investigation. The utility shall submit such
information during the first month of the calendar quarter following
that to which the information applies. The following information shall
be submitted:
(i) Information concerning any actions involving significant changes
in the utility's financial condition, accounting methods, or operations,
including the following:
(A) Issuance of any securities, reported in the form required in
Statement AV under paragraph (h)(22);
(B) Significant increases or decreases in proposed construction
program expenditures;
(C) Mergers, consolidations or other major changes in the utility's
corporate organization; and
(D) Changes in the utility's capital structure.
(ii) A copy of each order issued by any regulatory agency approving,
rejecting or otherwise disposing of an application for an increase in
the electric rates of the utility and a copy of each transmittal letter
or equivalent written document by which a utility summarizes and submits
a new application, for each rate increase pending before a state
regulatory agency.
(7) Attestation. A utility shall include in its filing an
attestation by its chief accounting officer or another of its officers
that, to the best of that officer's knowledge, information, and belief,
the cost of service statements and supporting data submitted under this
paragraph are true, accurate, and current representations of the
utility's books, budgets, or other corporate documents.
(e) Testimony and exhibits -- (1) Filing requirements. (i) A utility
subject to paragraph (a)(1) of this section shall file Statements AA
through BM under paragraph (h) as exhibits with its rate schedule change
and may file any other exhibits in support of its rate schedule change.
(ii) A utility subject to paragraph (a)(1) of this section shall file
prepared testimony. Such testimony shall include an explanation of all
exhibits, inlcuding Statements AA through BM, and shall include support
for all adjustments to book or budgeted data relied on in preparing the
exhibits.
(iii) To the extent that testimony and exhibits other than Statements
AA through BM duplicate information required to be submitted in such
statements, the testimony and exhibits may incorporate such information
by referencing the specific statement containing such material.
(2) Case in chief. In order to avoid delay in processing rate
filings, such cost of service statements, testimony, and other exhibits
described in paragraph (e)(1) of this section shall be the utility's
case in chief in the event the matter is set for hearing.
(3) Burden of proof. Any utility that files a rate increase shall be
prepared to go forward at a hearing on reasonable notice on the data
submitted under this section, to sustain the burden of proof under the
Federal Power Act of establishing that the rate increase is just and
reasonable and not unduly discriminatory or preferential or otherwise
unlawful within the meaning of the Act.
(f) Filing by parties concurring in coordination and interchange
arrangements. For coordination and interchange arrangements in the
nature of power pooling transactions, all information required to be
submitted in support of a rate schedule change under paragraphs (a)(1),
(2), and (3) of this section shall be submitted by each party filing a
certificate of concurrence under 35.1. If a representative is
designated and authorized in accordance with 35.1 to file supporting
information on behalf of all parties to a rate schedule change, such
filing shall fulfill the requirement in this paragraph for individual
submittals by each party.
(g) Commission precedents and policy. If a utility submits cost of
service data under paragraph (d) of this section, it shall conform all
such submissions to any rule of general applicability and to any
Commission order specifically applicable to such utility.
(h) Cost of service statements. Any utility subject to paragraph
(a)(1) of this section shall submit the following Statements AA through
BM in accordance with the requirements of paragraphs (d) and (g) of this
section.
(1) Statement AA -- Balance sheets. Statement AA consists of balance
sheets as of the beginning and the end of both Period I and Period II,
and the most recently available balance sheet, including any applicable
notes, and an explanation of any significant accounting changes since
the most recent filing by the utility under this section that involves
the same wholesale customer rate class. Balance sheets shall be
constructed in accordance with the annual report form for electric
utilities specified in part 141.
(2) Statement AB -- Income statements. Statement AB consists of
income statements for both Period I and Period II, and the most recently
available income statement, including any applicable notes, and an
explanation of any significant accounting changes since the most recent
filing by the utility under this section that involves the same
wholesale customer rate class. Income statements shall be prepared in
accordance with the annual report form for electric utilities specified
in part 141.
(3) Statement AC -- Retained earnings statements. Statement AC
consists of retained earnings statements for both Period I and Period
II, and the most recently available retained earnings statement,
including any notes applicable thereto. Retained earnings statements
shall be prepared in accordance with the annual report form for electric
utilities specified in part 141.
(4) Statement AD -- Cost of plant. Statement AD is a statement of
the original cost of total electric plant in service according to
functional classification for Period I and Period II. If the plant
functions and subfunctions for Period I and Period II are different, the
utility shall explain and justify the differences.
(i) For each separately identified function and subfunction of
production plant or transmission plant, the utility shall state the
original cost as of the beginning of the first month and the end of each
month of both Period I and Period II, with an average of the thirteen
balances for each period. If any of the Period I or Period II thirteen
monthly balances is not available or is unrepresentative of the current
plan of the utility for plant in service, the utility shall provide an
explanation of the relevant circumstances.
(ii) For each separately identified function and subfunction of plant
other than production or transmission, the utility shall state the
original cost as of the beginning and the end of both Period I and
Period II, with an average of the beginning and end balances for each
period. If any of the Period I or Period II balances is not available
or is unrepresentative of the current plan of the utility for plant in
service, the utility shall provide an explanation of the relevant
circumstances.
(iii) The utility shall show the electric plant in service in
accordance with each of the following five major functional
classifications:
(A) Production;
(B) Transmission;
(C) Distribution;
(D) General and Intangible; and
(E) Common and Other.
(iv) To the extent feasible, the utility shall show completed
construction not classified in accordance with clause (iii) in
accordance with tentative classification to major functional accounts.
If this is not feasible, the utility shall describe such facilities as
other plant under clause (iii)(E).
(v) If a utility designs its rate change so that subdivision of the
major functional classifications is necessary to support the changed
rate, the utility shall supply the original cost information for any of
the five major functional plant classifications in clause (iii) that are
divided into subfunctional categories. If subfunctional original cost
information is provided, the utility shall explain the importance of
providing such information to support the changed rate. The utility
shall describe each subfunctional category in substantive terms, such as
steam electric production or high voltage transmission.
(vi) The utility shall select any subfunctional categories, as
appropriate, under the following criteria:
(A) Production plant categories shall be established as necessary to
segregate costs for production services with special characteristics,
such as base, intermediate or peaking load. The utility shall provide a
description of each such service and shall list a brief descriptive
title for each corresponding subfunctional category.
(B) Transmission plant categories shall be chosen to reflect the
extent to which the facilities are proposed to be allocated on a common
basis among all or specific segments of utility services. For
descriptive purposes, plant may also be categorized according to
accounting or engineering terminology, such as high voltage overhead
lines. The utility shall provide brief descriptive transmission
category titles and explain the basis for the titles. If a utility
allocates all transmission plant among utility services on the basis of
a single set of allocation data, the utility may show original cost in
total without subfunctionalization.
(C) Distribution plant categories shall be selected according to
engineering or use characteristics meaningful for allocations or
assignments to wholesale services such as substations, overhead lines,
meters, or non-wholesale. The utility shall provide brief descriptive
distribution category titles and shall explain the basis for the titles.
(D) If the utility divides any general, intangible, common, and other
plant functional classifications into subfunctional categories, the
subfunctional categories shall be chosen to group together facilities
that share a common basis for allocation between wholesale and other
electric services. The utility shall provide a brief descriptive title
for each general and intangible subfunctional category, and for each
common and other subfunctional category, with an explanation of the
basis of each category selection. A utility need not divide the
functional classifications of plant into subfunctional categories if
these functions of plant are allocated in Statement BK on the basis of
utility labor expenses.
(E) A separate category shall be provided for each specific
assignment of plant reported in Statement BE. Such assignments are
applicable principally but not necessarily exclusively to distribution
facilities. The utility shall provide brief descriptive titles
consistent with Statement BE.
(F) A separate category shall be provided for each exclusive-use
commitment of major power supply facilities as required to be reported
at Statement BF. The utility shall provide brief descriptive titles
consistent with Statement BF.
(5) Statement AE -- Accumulated depreciation and amortization.
Statement AE is a statement of the accumulated provision for
depreciation and amortization of electric plant for Period I and Period
II, provided according to major functional classifications selected by
the utility in Statement AD under paragraph (h)(4) and divided into the
subfunctional categories selected by the utility in Statement AD, to the
extent that subfunctionalized data are available.
(i) For each function and subfunction of electric production and
transmission plant in service identified in Statement AD, the utility
shall set forth the accumulated depreciation and amortization as of the
beginning of the first month and the end of each month of both Period I
and Period II. The utility shall state an average for each period
computed as the average of the thirteen balances.
(ii) For each function and subfunction of electric plant in service
other than production or transmission, identified in Statement AD, the
utility shall state the accumulated depreciation and amortization as of
the beginning and the end of Period I and Period II, with an average of
the beginning and end balances for each period.
(iii) If any of the Period I or Period II balances is not available
or is unrepresentative of the current plan of the utility for
depreciation reserves, the utility shall provide an explanation of the
relevant circumstances.
(iv) If accumulated depreciation and amortization data are not
available for any subfunction selected in Statement AD, the utility
shall:
(A) Provide a comparison of the current depreciation rate of the
major functional classification and the depreciation rate estimated to
be appropriate to the subfunctional category; and
(B) State and explain the estimation techniques which the utility
proposes to utilize in the absence of subfunctional data, such as the
proration of accumulated depreciation and amortization data among the
subfunctional categories according to the data for electric plant in
service in Statement AD. If any of the proposed estimation techniques
require data that are not provided elsewhere in the cost of service
statements in paragraph (h) of this section, the utility shall supply
the necessary data in Statement AE.
(6) Statement AF -- Specified deferred credits. Statement AF
consists of balances of specified accounts and items which are to be
considered in the determination of the net original cost rate base. All
required balances are to be stated as of the beginning and end of both
Period I and Period II, with an average of the beginning and end
balances for each period. If any of the Period I and Period II balances
is not available or is unrepresentative of the current operating plan of
the utility, the utility shall include an explanation of the relevant
circumstances. If subaccounts are maintained to reflect differences in
ratemaking treatment among regulatory authorities that have
jurisdiction, balances shall be provided in accordance with such
subaccounts, with detailed explanations of the bases upon which the
subaccounts were established and are maintained. The balances of
deferred credits required to be filed in this statement are described in
paragraph (h)(6) (i) through (v) of this section. All references to
numbered accounts refer to the Commission's Uniform System of Accounts,
18 CFR part 101.
(i) The utility shall state total electric balances for accumulated
deferred investment tax credits Account 255, and shall separate the
credits into balances applicable to pre-1971 and post-1970 qualifying
property additions. If the utility maintains records to show Account
255 component balances according to the major functional classifications
identified in Statement AD under paragraph (h)(4), the utility shall
provide the component balances by function. If the data are not
available by function, the utility shall describe the procedure by which
the utility believes it can reasonably estimate the portion of the total
electric balances for each major functional classification. The utility
may show by function the component balances obtained by applying the
procedure. If such estimation requires data that are not provided
elsewhere in the cost of service statements in this paragraph, the
utility shall supply in Statement AF the necessary data, such as
historical functional patterns of plant additions eligible for the tax
credits. The utility shall state whether the Internal Revenue Code
General Rule, 46(f)(1), is applicable with respect to restrictions on
credit treatment for ratemaking purposes. If the General Rule is not
applicable, the utility shall state which election it has made with
respect to special rules for ratable or immediate flow-through for
ratemaking purposes.
(ii) The utility shall state the total electric component balances
for accumulated deferred income tax Account 281 pertaining to
accelerated amortization property. The utility shall show separate
components for defense, pollution control, and other facilities. The
utility shall show balances for each component and totaled for the
electric utility department. If the utility maintains records to show
Account 281 component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall provide such component balances. If data are not
available by function, the utility shall describe the procedure by which
the utility believes it can reasonably estimate the portion of the total
electric balances for each major functional classification. The utility
may show by function the component balances obtained by applying the
procedure. If such estimation requires data that are not provided
elsewhere in the cost of service statements in this paragraph, the
utility shall supply in Statement AF the necessary data.
(iii) The utility shall state the total electric component balances
for accumulated deferred income tax Account 282 pertaining to electric
utility property other than accelerated amortization property. The
utility shall itemize the balances in Account 282, to the extent data
are available, in detail sufficient to identify the specific major
properties involved and shall list the balances according to the
accounting entries, such as liberalized depreciation, for which
interperiod tax allocation was used and included in this account.
Component balances shall be shown individually and in total for the
electric utility department. If the utility maintains records to show
account 282 component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall provide such component balances by function. If the data
are not available by function, the utility shall describe the procedure
by which the utility believes it can reasonably estimate the portion of
the total electric balances for each major functional classification.
The utility may show by function the component balances obtained by
applying the procedure. If such estimation requires data that are not
provided elsewhere in the cost of service statements in this paragraph,
the utility shall supply in Statement AF the necessary data, such as
historical functional patterns of plant additions.
(iv) The utility shall state the total electric component balances
for accumulated deferred income tax Account 283 pertaining to
interperiod income tax allocations not related to property. The utility
shall itemize in detail balances in Account 283, to the extent data are
available, and shall list the balances according to the accounting
entries for which interperiod tax allocation was used and included in
this account. Component balances shall be shown individually and in
total for the electric utility department. If the utility maintains
records to show Account 283 component balances according to the major
functional classifications identified in Statement AD under paragraph
(h)(4), the utility shall provide such component balances by function.
If the data are not available by function, the utility shall describe
the procedure by which the utility believes it can reasonably estimate
the portion of the total electric balances for each major functional
classification. The utility may show by function the component balances
obtained by applying the procedure. If such estimation requires data
that are not provided elsewhere in the cost of service statements in
this paragraph, the filing shall supply in Statement AF the necessary
data.
(v) The utility shall show electric utility balances for every other
item that the utility believes should be included in Statement AF. The
utility shall explain the reasons for inclusion of each item.
(7) Statement AG -- Specified plant accounts (other than plant in
service) and deferred debits. Statement AG is a statement of balances
of specified accounts and items that are to be considered in the
determination of the net original cost rate base. Except as prescribed
in clause (ii), the utility shall state all required balances as of the
beginning and the end of Period I and Period II, with an average of the
beginning and end balances for each period. If any of the Period I or
Period II balances is not available or is unrepresentative of the
current operating plan of the utility, the utility shall provide a full
explanation of the relevant circumstances. If subaccounts are
maintained to reflect differences in ratemaking treatment among
regulatory authorities having jurisdiction, the utility shall provide
balances in accordance with such subaccounts, with detailed explanations
of the bases upon which the subaccounts were established and are
maintained. The balances required to be submitted under Statement AG
are described in clauses (7)(i) through (vi).
(i) For each separately identified major functional classification
selected by the utility in Statement AD, the utility shall state the
electric utility land and land rights balances for electric plant held
for future use in account 105. If itemized in detail, balances shall be
totaled for each major functional classification.
(ii) The utility shall state the electric utility component balances
in Accounts 107 and 120.1, individually and in total, for each item of
construction work in progress for pollution control facilities, fuel
conversion facilities, or any other facilities that qualify for
inclusion in rate base under 35.26. The utility shall state such
balances for each major functional and subfunctional classification
under Statement AD as of the beginning of the first month and the end of
each month of Period I and Period II with an average of the 13 balances
for each period.
(iii) For each major functional classification under Statement AD and
with respect to property otherwise includable in plant in service, the
utility shall state the balances for extraordinary property losses
Account 182. If itemized in detail, balances shall be totaled for each
major functional classification. The utility shall provide information
about Commission authorization for any loss included in Account 182 and
shall state when the loss was claimed for tax purposes.
(iv) For each major functional classification under Statement AD, the
utility shall state the component balances for research, development and
demonstration (RD&D) expenditures Account 188. The data shall include
both the amounts charged to Account 188 and the amounts transferred to
each expense account for each RD&D project.
(v) The utility shall state the total electric component balances for
accumulated deferred income taxes Account 190. The component balances
in Account 190 shall be itemized in detail and listed according to the
accounting entries for which interperiod tax allocation was used.
Component balances shall be shown individually and in total for the
electric utility department. If the utility maintains records to show
Account 190 component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall provide such component balances by function. If the data
are not available by function, the filing utility shall describe the
procedure by which the utility believes it can reasonably estimate the
portion of the total electric balances for each major functional
classification. The utility may show by function the component balances
obtained by applying the procedure. If such estimation requires data
that are not provided elsewhere in the cost of service statements in
this paragraph, the utility shall supply in Statement AG the necessary
data.
(vi) Balances shall be shown for every other item that the utility
believes should be included in Statement AG. The utility shall provide
support for inclusion of each item, and a brief descriptive title for
each such item.
(8) Statement AH -- Operation and maintenance expenses. Statement AH
is a statement of electric utility operation and maintenance expenses
for Period I and Period II provided according to the accounts prescribed
by the Commission's Uniform System of Accounts, 18 CFR part 101.
(i) For Period I and Period II, the utility shall itemize and
subtotal all operation and maintenance expenses according to the major
functional classifications of Statement AD in paragraph (h)(4) and the
subfunctional categories of those classifications. The utility shall
further divide the operation and maintenance expenses itemized under the
production classification and each of its subfunctional categories to
reflect expenses relating to the energy component (list each item by
account number and compute fuel costs on an as-burned basis), the demand
component, and any other production expenses.
(ii) For Period I and Period II, the utility shall report production
operation and maintenance expenses according to appropriate account
numbers. The utility shall apply the following principles in developing
Period I and Period II production operation and maintenance data for
this statement:
(A) Total production operation and maintenance expenses shall be
segregated into energy, demand, and other components. The utility shall
specifically state and support its criteria for classifications between
energy and demand, and for use of the production other classification,
such as specific assignments related to sales from particular generating
units.
(B) Fuel expense for cost of service purposes shall be the total
as-burned expense incurred. If the utility defers a portion of such
expense for accounting purposes, the deferral amount shall be separately
stated and accompanied by material that shows computational detail in
support of such amount. If claimed nuclear fuel expense reflects a
change in the estimated net salvage value of nuclear fuel, the utility
shall show the amounts involved and explain the relevant circumstances.
(C) If the amount of production fuel expense is significantly
affected by abnormal Period I water availability for hydroelectric
generation, the utility shall explain how water availability was taken
into account in developing projected Period II production fuel expenses.
(iii) For Period I and Period II, the utility shall report operation
and maintenance expenses attributable to the transmission and
distribution functions according to appropriate account numbers. If
Period II transmission and distribution plant data are not provided by
subfunctional category in Statement AD, the utility need only provide
for Period II total operation and maintenance expenses for each
function.
(iv) For Period I and Period II, the utility shall report in total
for each period, operation and maintenance expenses incurred under each
of the categories of customer accounting, customer service and
information, and sales.
(v) For Period I and Period II, the utility shall itemize
administrative and general expenses by groups that are directly
assignable, such as regulatory Commission expenses, or that are related
to selected plant or expense items for which an allocation to wholesale
services is independently determinable, such as items related to labor
expense or to a category of production plant in service. Administrative
and general expenses shall include a detailed itemization of the general
advertising Account 930.1 and the miscellaneous general expenses Account
930.2. If Account 930 data are not projected on a detailed basis for
Period II, the utility shall provide its best estimate of the Account
930.1 expense items and a descriptive list of expense items anticipated
as miscellaneous general expenses in Account 930.2. Where applicable,
separate items shall be shown for general plant maintenance, and for
common and other plant maintenance.
(vi) In addition to annual production data for Period I and Period
II, the utility shall provide monthly expense data by accounts for fuel
in Accounts 501, 518, and 547 and purchased power in Account 555. For
each type of transaction, such as firm power or economy interchange
power, monthly purchased power expense data shall be subtotaled
separately for interchange receipts and deliveries. For monthly fuel
Accounts 501, 518, and 547, and for each type of purchased power
transaction, the monthly data shall identify components to be claimed
under the fuel adjustment clause of the utility.
(9) Statement AI -- Wages and salaries. Statement AI consists of
statements of the electric utility wages and salaries, for Period I and
Period II, that are included in operation and maintenance expenses
reported in Statement AH.
(i) For Period I and Period II, the utility shall show the
distribution of wages and salaries by function according to the form
prescribed for operation and maintenance expenses by the Commission's
Uniform System of Accounts, 18 CFR part 101. The statement shall also
include by function additional wages and salaries attributable to common
and other plant classifications identified in Statement AD in paragraph
(h)(4).
(ii) For Period I and Period II, the utility shall show total
production wages and salaries, itemized and subtotaled into energy and
demand related components in accordance with classifications of
Statement AH operation and maintenance production expenses of which
production wages and salaries are a part.
(10) Statement AJ -- Depreciation and amortization expenses.
Statement AJ consists of statements of depreciation and amortization
expenses for Period I and Period II.
(i) For Period I and Period II, the utility shall show the
depreciation and amortization expenses and the depreciable plant
balances of the filing utility, in accordance with major functional
classifications selected by the utility in Statement AD under paragraph
(h)(4).
(ii) The utility shall divide the major functional classifications of
depreciation and amortization expenses shown in clause (i) into the
subfunctional categories selected by the utility for electric plant in
service in Statement AD, to the extent such data are available.
(iii) If depreciation and amortization expense data are not available
for any subfunctional category selected in Statement AD, the utility
shall:
(A) Provide a comparison of the current depreciation rate of the
major functional classification and the depreciation rate estimated to
be appropriate to the subfunctional category; and
(B) State and explain the estimation techniques that the utility
utilized in developing each estimated subfunctional depreciation rate.
If utilization of such estimation techniques requires data that are not
provided elsewhere in the cost of service statements in this paragraph,
the utility shall supply such data in Statement AJ.
(iv) For Period I and Period II, the utility shall show the annual
depreciation rate applicable to each function and subfunction for which
depreciation expense is reported. The utility shall indicate the bases
upon which the depreciation rates were established. If the depreciation
rates used for Period I or Period II data differ from those employed to
support the utility's prior approved jurisdictional electric rate, the
utility shall include in or append to Statement AJ detailed studies in
support of such changes. These detailed studies shall include:
(A) Copies of any reports or analyses prepared by any independent
consultant or utility personnel to support the proposed depreciation
rates; and
(B) A detailed capital recovery study showing by primary account the
depreciation base, accumulated provision for depreciation, cost of
removal, net salvage, estimated service life, attained age of survivors,
accrual rate, and annual depreciation expense.
(11) Statement AK -- Taxes other than income taxes. Statement AK
consists of statements of taxes other than income taxes for Period I and
Period II.
(i) For Period I and Period II, the utility shall itemize and total
any taxes other than income taxes according to clauses (i) (A) through
(D).
(A) Revenue taxes. The utility shall show total revenue taxes levied
by each taxing authority and identify the revenue taxes, under both the
present and changed rate, applicable to wholesale services for which a
rate change is filed. The utility shall identify revenue taxes
associated with each revenue credit item reported in Statement AU under
paragraph (h)(21).
(B) Real estate and property taxes. The utility shall itemize and
total all real estate and property taxes. If the utility maintains
records to show tax component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall supply the component balances by function. If the data
are not available by function, the utility shall describe the procedure
by which the utility believes it can reasonably estimate the portion of
the total electric balances for each major functional classification.
The utility may show by function the component balances obtained by
applying the procedure. If such estimation requires data that are not
provided elsewhere in the cost of service statements in this paragraph,
the utility shall supply the necessary data in Statement AK.
(C) Payroll taxes. The utility shall itemize and total all payroll
taxes. If the utility maintains records to show tax component balances
according to the major functional classifications identified in
Statement AD in paragraph (h)(4), the utility shall provide the
component balances by function. If the data are not available by
function, the utility shall describe the procedure by which the utility
believes it can reasonably estimate the portion of the total electric
balances for each major functional classification. The utility may show
by function the component balances obtained by applying the procedure.
If such estimation requires data that are not provided elsewhere in the
cost of service statements in this paragraph, the utility shall provide
the necessary data in Statement AK.
(D) Miscellaneous taxes. The utility shall itemize and total all
miscellaneous taxes which are directly assignable or which are related
to any selected plant or expense item for which an allocation to
wholesale services is independently determinable, such as items related
to transmission plant in service or to net distribution plant.
(ii) If any of the taxes itemized under clause (11)(i) are levied by
a taxing authority that is a customer, or is related to a customer,
whose services would be affected by the changed rate schedule, the
utility shall show amounts of such taxes according to the taxing
authority, identify the related customer, and provide an explanation of
the relevant circumstances.
(12) Statement AL -- Working capital. Statement AL consists of
statements for Period I and Period II designed to establish the need for
working capital to maintain adequate levels of operating supplies, to
meet required prepayments, and to meet ongoing cash disbursements that
must be made at a time different than related revenue receipts for
utility services rendered.
(i) Supplies and prepayments. The utility shall supply statements to
show monthly balances of operating supplies and prepayments itemized
under clauses (i) (A) through (C). The utility shall state all required
balances as of the beginning of the first month and the end of each
month of both Period I and Period II, with an average of the thirteen
balances for each period. If any of the Period I or Period II balances
is not available or is unrepresentative of the current operating plan of
the utility for supplies or prepayments, the utility shall include an
explanation of the relevant circumstances. Operating supply and
prepayment balances shall be itemized under the following categories:
(A) Fuel supplies. The utility shall state the fuel supply balances
for each type of electric utility production plant, except hydraulic.
The utility shall describe its overall fossil fuel supply objectives for
Period I and Period II, in terms of projected average days of burn for
major fossil fuel generating stations, if feasible. The utility shall
explain substantial differences, if any, between actual Period I
inventories and the target objectives, or between Period II objectives
and Period I objectives. Nuclear fuel balances shall include fuel in
stock, fuel in the reactor and spent fuel in the process of cooling in
Accounts 120.2, 120.3, 120.4, less accumulated provisions for
amortization of nuclear fuel assemblies in Account 120.5.
(B) Plant materials and operating supplies. The utility shall state
materials and operating supply balances for each of the major electric
utility operating functions of production, transmission, and
distribution, and for each significant type of miscellaneous operating
supplies. Miscellaneous supplies shall be grouped to facilitate
suitable allocations or assignments among utility services.
(C) Prepayments. The utility shall indicate prepayment balances for
each major prepayment item, with a brief description of the item.
Balances shall be grouped and subtotaled to facilitate suitable
allocations or assignments among utility services.
(ii) Cash working capital. The utility shall indicate average
monthly working cash requirements that reflect the extent to which
day-to-day operational utility service revenues are received later or
earlier than cash disbursements necessary to provide the services, with
an explanation of how such requirements are derived.
(13) Statement AM -- Construction work in progress. Statement AM is
a statement of the amount of construction work in progress described
according to functional classification for Period I and Period II. For
production plant and transmission plant, the utility shall state the
balances as of the beginning of the first month and the end of each
month of both Period I and Period II, with an average of the 13 balances
for each period. For each function of plant identified in Statement AD
other than production or transmission, the utility shall state the
balances as of the beginning and the end of both Period I and Period II,
with an average of the beginning and end balances for each period. If
any Period I or Period II balance is not available, the utility shall
include monthly estimates and an explanation of the relevant
circumstances. Pollution control facilities, fuel conversion
facilities, or other construction amounts reported in Statement AG shall
be excluded from amounts reported in this Statement.
(14) Statement AN -- Notes payable. Statement AN is a statement of
the electric utility portion of average notes payable for Period I and
Period II. The utility shall indicate balances as of the beginning of
the first month and the end of each month of both Period I and Period
II, with an average of the thirteen balances for each period. If any of
the Period I or Period II balances is not available or is
unrepresentative of the current financing plan of the utility, the
utility shall provide an explanation of the relevant circumstances. If
a utility has operations other than electric, the utility shall also
show allocations between electric and other utility departments on an
appropriate basis, such as the average amount of construction work in
progress and net plant.
(15) Statement AO -- Rate for allowance for funds used during
construction. Statement AO is a statement of the basis of the rate for
computing the allowance for funds used during construction (AFUDC) for
Period I and Period II.
(i) The utility shall show the computations of the maximum rates for
the construction allowances computed in accordance with plant
instructions of the Commission's Uniform System of Accounts, 18 CFR part
101. The utility shall show the rates computed annually, and shall
provide the rates for each annual period that includes any part of
Period I or Period II. If the utility proposes to use a net-of-tax
rate, the utility shall show the derivation for both the gross-of-tax
and net-of-tax rates.
(ii) If the book allowance amounts of AFUDC do not reflect the
maximum rates for allowances for funds computed in accordance with
clause (i), the utility shall show the derivation for the actual rates
utilized in computing AFUDC, including derivation of any net-of-tax rate
utilized by the utility.
(16) Statement AP -- Federal income tax deductions -- interest.
Statement AP is a statement of electric utility interest charges for
Period I and Period II. For each period, the utility shall state the
total electric utility interest in terms of three or more component
items described in clauses (i) through (iv).
(i) The utility shall state the allowance for borrowed funds used for
electric utility construction Account 432 as a separate component. The
utility shall show supporting detail, including computation of the
amounts on the basis of AFUDC rates claimed in Statement AO.
(ii) The utility shall state interest for borrowed funds used for
electric utility construction Account 431 as a separate component. If
applicable, the utility shall also show all elements of Account 431
related to purposes other than electric utility construction, with
detailed supporting material, such as a computation of allocations
between electric and other utility departments with explanatory material
to support the bases of such allocations.
(iii) The utility shall state the interest on long-term debt required
for electric rate base investment as a separate component. The interest
amount shall be consistent with that shown and utilized in Statement BK
under paragraph (h)(36) of this section.
(iv) The utility shall show other interest items appropriate in the
determination of net taxable income allocable to the wholesale services
at issue. The utility shall describe and support each item and shall
accompany each item with a statement of the basis on which the item is
allocable to the wholesale services. The utility shall also list a
short descriptive title for each item.
(17) Statement AQ -- Federal income tax deductions -- other than
interest. Statement AQ is a statement of other deductions from net
operating income before Federal income taxes, for Period I and Period
II, which deductions are appropriate in determining the net taxable
income allocable to the wholesale services subject to the changed rate.
The utility shall show unallowable deductions as negative entries in
this statement. The utility shall itemize deductions in accordance with
clause (i) through (iii) and individually identify each by a brief
descriptive title.
(i) The utility shall report, as a separate component of this
statement, the difference between tax and book depreciation, in total,
or in individual amounts based on the Internal Revenue Code provisions
that permit the utility to use various methods of computing depreciation
for tax purposes, such as liberalized depreciation or the asset
depreciation range. If the utility reports the differences in total
only, it shall list the specific Internal Revenue Code provisions that
result in the difference.
(ii) The utility shall state taxes and pensions capitalized as a
separate component.
(iii) The utility shall describe and support other deduction items
appropriate in the determination of net taxable income allocable to the
wholesale services. Each item shall be accompanied by a brief
explanation of the basis on which the item is allocable to the wholesale
services.
(18) Statement AR -- Federal tax adjustments. Statement AR is a
statement of adjustments to Federal income taxes for Period I and Period
II. If subaccounts are maintained to reflect differences in ratemaking
treatment among regulatory authorities having jurisdiction, the utility
shall provide adjustment amounts in accordance with such subaccounts.
The utility shall report detailed explanations of the bases upon which
the subaccounts were established and are maintained.
(i) For each major function of plant identified in Statement AD under
paragraph (h)(4), the utility shall state the electric utility component
adjustment for the Federal portions of the provision for deferred income
tax Account 410.1. If the data are not available by function, the
utility shall state the amounts for the total electric utility and shall
describe the procedure by which the utility believes it can reasonably
estimate the portion of the total electric balances for each major
functional classification. The utility may show by function the
component balances obtained by applying the procedure. If such
estimation requires data that are not provided elsewhere in the cost of
service statements in this paragraph, the utility shall supply in
Statement AR the necessary data. The utility shall provide the
adjustment amounts for total electric and, to the extent available for
each such major functional component, accompanied by summary totals
segregated in accordance with related balance sheet Accounts 281, 282,
283, and 190 (see Statements AF and AG). Account 190 items require a
negative sign for entries in Statement AR. The utility shall identify
the summarized items by account number.
(ii) The utility shall provide for the Federal portions of the
provision for deferred income tax-credit Account 411.1 the data required
by clause (i) for Account 410.1.
(iii) For each major functional classification of plant identified in
Statement AD under paragraph (h)(4), the utility shall provide the
electric utility component for investment tax credits generated for
Period I and Period II, credits utilized for each period, and the
allocations to current income for each period. If the data are not
available by function, the utility shall state the amounts for total
electric utility and shall describe the procedure by which the utility
believes it can reasonably estimate the portion of the total electric
balances for each major functional classification. The utility may show
by function the component balance obtained by applying the procedure.
If such estimation requires data that are not provided elsewhere in the
cost of service statements in this paragraph, the utility shall supply
in Statement AR the necessary data. If itemized in detail, balances
shall be subtotaled for each major function, and totaled for the
electric utility department. Detailed data shall be consistent with
that provided in Statement AF under paragraph (h)(6) of this section.
(iv) The utility shall list and designate as other adjustment items
any additional Federal income tax adjustments and shall provide a brief
descriptive title for each item. The utility shall explain the reasons
for inclusion of each item, and shall indicate the basis on which each
will be assigned or allocated to the wholesale services subject to the
changed rate and to the other electric utility services.
(19) Statement AS -- Additional state income tax deductions.
Statement AS is a listing of state income tax deductions for Period I
and Period II, in addition to those listed at Statements AP and AQ for
Federal tax purposes. The utility shall explain the reasons for
inclusion of each item. The utility shall indicate the basis on which
each item is to be assigned or allocated to the wholesale services at
issue and to the other electric utility services. If applicable, the
utility shall show unallowable deductions as negative entries in this
statement. The utility shall provide the percentage of Federal income
tax payable which is deductible for state income tax purposes, if
applicable. (See also Statement AY, dealing with tax rate data.)
(20) Statement AT -- State tax adjustments. Statement AT is a
statement of adjustments to state income taxes for Period I and Period
II. The utility shall prepare and present the data in statement AT as
prescribed for Federal tax adjustments in Statement AR. The utility
shall annotate Statement At data as necessary to identify state tax
adjustments that are not properly deductible for Federal tax purposes.
(21) Statement AU -- Revenue credits. Statement AU is, for Period I
and Period II, a statement of the operating revenue balances in Accounts
450 through 456, and other revenue items, such as short-term sales in
Account 447, that are appropriately credited to the cost of service for
determinations of costs allocable to the wholesale services subject to
the changed rate. The utility shall include revenue credits proposed
for exclusive-use commitment of major power supply facilities according
to instructions for preparation of Statement BF under paragraph (h)(31)
of this section. When applicable, the utility shall state revenue taxes
for each revenue credit item. The utility shall explain the reasons for
inclusion of each item, and shall indicate the basis for assigning or
allocating each item to the wholesale services subject to the changed
rate and to the other electric utility services.
(22) Statement AV -- Rate of return. Statement AV is a statement and
explanation of the percentage rate of return requested by the utility.
The utility shall provide the complete capital structure, including
ratios, component costs and weighted component costs claimed by the
utility. The utility shall submit additional data where any component
of the capital of the utility is not primarily obtained through its own
financing, but is primarily obtained from a company by which the utility
is controlled, as defined in the Commission's Uniform System of
Accounts, 18 CFR part 101. The utility shall submit the additional
data, if required with respect to the debt capital, preferred stock
capital and common stock capital of such controlling company or any
intermediate company through which such funds have been secured.
(i) General. The utility shall show, based on the capitalization of
the utility, the cost of debt capital and preferred stock capital, the
claimed rate of return on the common equity of the utility and the
resulting overall rate of return requested.
(A) For Period I and, if applicable, Period II, the utility shall
show in tabular form the following:
(1) Cost of each capital element, including claimed rate of return on
equity capital;
(2) Capitalization amounts and ratios;
(3) Weighted cost of each capital element; and
(4) Overall claimed rate of return.
(B) When a Period II filing is submitted the utility shall provide:
(1) A full explanation of, and supporting work papers for, the pro
forma adjustments to the actual capitalization data to arrive at the
Period II capitalization; and
(2) The pro forma adjustment to Period I data to arrive at the Period
II amount for unappropriated undistributed subsidiary earnings in
Account 216.1.
(C) If not included elsewhere in the filing, the utility shall submit
the amount for Account 216.1 for Period I as part of this statement.
(ii) Debt capital. (A) The utility shall show the weighted cost for
all issues of long-term debt capital as of the end of Period I, as
expected on the date the changed rate is filed, and, if applicable, as
estimated for the end of Period II. The weighted cost is calculated by:
(1) Multiplying the cost of money for each issue under clause (B)(6)
below by the principal amount outstanding for each issue, which yields
the annualized cost for each issue; and (2) adding the annual cost of
each issue to obtain the total for all issues, which is divided by the
total principal amount outstanding for all issues to obtain the weighted
cost for all issues.
(B) The utility shall show the following for each class and series of
long-term debt outstanding as of the end of Period I, as expected on the
date the changed rate is filed, and, if applicable, as estimated to be
outstanding as of the end of Period II.
(1) Title;
(2) Date of offering and date of maturity;
(3) Interest rate;
(4) Principal amount of issue;
(5) Net proceeds to the utility;
(6) Cost of money, which is the yield to maturity at issuance based
on the interest rate and net proceeds to the utility determined by
reference to any generally accepted table of bond yields;
(7) Principal amount outstanding;
(8) Name and relationship of issuer and if the debt issue was issued
by an affiliate; and
(9) If the utility has acquired at a discount or premium some part of
the outstanding debt which could be used in meeting sinking fund
requirements, or for some other reason, the annual amortization of the
discount or premium for each issue of debt from the date of the
reacquisition over the remaining life of the debt being retired. The
utility shall show separately the total discount and premium to be
amortized, and the amortized amount applicable to Period I and, if
applicable, Period II.
(C) The utility shall show the before-tax interest coverage, for the
twelve months of Period I based on the indenture requirements. The
utility shall provide a copy of the work papers used to make the
calculations, with explanations appropriate to understand the
calculations.
(iii) Preferred stock and preference stock capital. (A) This
statement shall show the weighted cost for all issues of preferred and
preference stock capital as of the end of Period I, as expected on the
date the changed rate is filed, and, if applicable, as estimated for the
end of Period II. The weighted cost is calculated by: (1) Multiplying
the cost of money for each issue under clause (B)(9) by the par amount
outstanding for each issue, which yields the annualized cost for each
issue; and (2) adding the annual cost of each issue to obtain the total
for all issues, which is divided by the total par amount outstanding for
all issues to obtain the weighted cost for all issues.
(B) The statement shall show for each class and issue of preferred
and preference stock outstanding as of the end of Period I, as expected
on the date the changed rate is filed, and, if applicable, as estimated
to be outstanding as of the end of Period II:
(1) Title;
(2) Date of offering;
(3) If callable, call price;
(4) If convertible, terms of conversion;
(5) Dividend rate;
(6) Par or stated amount of issue;
(7) Net proceeds to the filing utility;
(8) Ratio of net proceeds to gross proceeds received by the filing
utility;
(9) Cost of money (dividend rate divided by the ratio of net proceeds
to gross proceeds for each issue);
(10) Par or stated amount outstanding; and
(11) If issue is owned by an affiliate, name and relationship of
owner.
(iv) Common stock capital. This statement shall show the following
information for each sale of common stock during the five-year period
preceding the date of the balance sheet for the end of Period I and for
each sale of common stock between the end of Period I and the date that
the changed rate is filed:
(A) Number of shares offered;
(B) Date of offering;
(C) Gross proceeds at offering price;
(D) Underwriters' commissions;
(E) Dividends per share;
(F) Net proceeds to company;
(G) Issuance expenses; and
(H) Whether issue was offered to stockholders through subscription
rights or to the public and whether common stock was issued for property
or for capital stock of others.
(v) Supplementary financial data. The utility shall submit a
statement indicating the sources and uses of funds for Period I and as
estimated for Period II and a copy of the utility's most recent annual
report to the stockholders. The utility shall also supply a prospectus
for its most recent issue of securities and a copy of the latest
prospectus issued by any subsidiary of the filing utility or by any
holding company of which the filing utility is a subsidiary.
(23) Statement AW -- Cost of short-term debt. In Statement AW, the
utility shall provide a statement of the cost of capital rate for
short-term debt of the utility as of the end of Period I, as expected on
the date the proposed rate is filed, and, if applicable, as estimated
for the end of Period II, with details supporting each stated cost. The
short-term debt rate shown in Statement AW shall include only the
short-term debt that appears on the income statement as interest expense
and shall not include nominal forms of financing, such as trust
agreements.
(24) Statement AX -- Other recent and pending rate changes.
Statement AX is a statement describing the extent to which operating
revenues are subject to refund for Period I and, if applicable, Period
II, for each rate change filed with any Federal, state, or other
regulatory body that has jurisidiction. The utility shall list and
submit any orders in which applications for a rate increase have been
acted on by any regulatory body during Period I, Period II, or the
interval between Period I and Period II, and a copy of each transmittal
letter or equivalent written document by which a utility summarized and
submitted any pending applications that have not been acted on.
Statement AX shall reflect information available at the time of
submittal under this paragraph.
(25) Statement AY -- Income and revenue tax rate data.
(i) Statement AY is a statement of tax rate data for Period I and
Period II arranged as follows:
(A) Nominal Federal income tax rate;
(B) Nominal state income tax rate;
(C) Proportion of Federal income taxes payable which is deductible
for state income tax purposes. If an allowable deduction is stated in
other terms, the utility shall provide an estimate of the effective
deduction as a percentage of Federal tax payable; and
(D) Revenue tax rate. If the revenue tax rate is scaled, the utility
shall show approximate weighted average rates for relevant revenue
levels and full supporting data.
(ii) If the utility serves in more than one jurisdiction for revenue
or state income tax purposes, the utility shall state the appropriate
tax rates for each wholesale customer group at issue and for all other
customers as a composite group. (See, Statement BA under paragraph
(h)(26) for wholesale customer grouping criteria.) If there are any
changes in tax rates that occur in Period I or that may occur in Period
II, the utility shall describe such changes and the effective date of
the changes.
(26) Statement BA -- Wholesale customer rate groups. (i) Statement
BA is a list of wholesale customers by group for the purpose of:
(A) Allocating the allowable costs of the utility to such customer
groups on the basis of electric utility services rendered; and
(B) Comparing proposed revenues from each customer group with the
cost of service as allocated to that group.
(ii) The utility shall limit the number of wholesale customer groups
listed to the minimum required under the following criteria:
(A) At least one customer group shall be specified for each separate
wholesale rate subject to the changed rate filing.
(B) In general, all customers proposed to be served on the same rate
shall be included in a common group. If the utility believes that there
are significant differences in services provided under the same rate,
the utility shall subdivide the common group served by the same rate
into separate customer groups characterized by the type of service
provided each group and shall demonstrate whether the common rate is
cost-based by means of cost-justification for each service group.
Certain customer groupings, such as cooperatives or municipals, may also
be utilized to facilitate purchaser evaluations of the changed rate.
(C) In all cases, the utility shall select customer groupings on a
basis consistent with rate design information provided in Statement BL
under paragraph (h)(37) of this section.
(iii) The utility shall enumerate all wholesale customer rate groups,
together with a brief descriptive title for each group. For example:
Group 1. Full Requirements Tariff
FR-1.
Group 2. Partial Requirements Tariff PR-1.
(27) Statement BB -- Allocation demand and capability data.
Statement BB is a statement of electric utility demand and capability
data for Period I and Period II to be considered as a basis for
allocating related costs to the wholesale services subject to the
changed rate.
(i) For each month of Period I and Period II, with an average for
each period, the utility shall show the maximum peak firm kilowatt
demand on the power supply system of the utility, and the kilowatt
demands of the wholesale services that coincide with the system monthly
maximum power supply demand, including for Period I the date and hour
for such coincidental peak demands. The utility shall state these
kilowatt demands in terms of 60-minute intervals or other intervals
adjusted to the equivalent of 60 minutes. The utility shall not include
in the data the demands associated with interruptible power supply
services, firm or nonfirm transmission wheeling services, or demands
associated with other services the revenues from which are shown as
revenue credits in Statement AU under paragraph (h)(21). The utility
shall provide wholesale service demand data as follows:
(A) The wholesale service data for each individual customer delivery
point or set of delivery points that constitutes an individual wholesale
customer billing unit shall include demands at delivery. The individual
customer wholesale service data shall be summarized and subtotaled in
accordance with Statement BA customer groupings.
(B) The data supplied for each wholesale customer group under clause
(A) shall be adjusted for losses to reflect demand at the power supply
level. The data shall be totaled to show total customer group demand at
power supply level for each month of Period I and Period II.
(ii) To the extent such data are available, the utility shall state
Period I and Period II monthly maximum demand data for interruptible
power supply services, firm wheeling services, and nonfirm wheeling
services. The utility shall also provide, to the extent data are
available, firm wheeling demand data for any of the 60-minute periods
that coincide with the times of power supply peak demands shown under
clause (i). The utility shall indicate the basis of all demands, such
as metered demands or contract demands, reported under this clause. For
interruptible services, the utility shall provide a description of the
conditions under which service may be interrupted or curtailed. The
utility shall include available information on actual interruptions or
curtailments during a three-year period that includes Period I. If any
of the wholesale rates at issue are for interruptible or curtailable
service, the utility shall provide any demand data specifically relevant
to such service.
(iii) If a utility establishes plant categories in Statement AD under
paragraph (h)(4) of this section for the purpose of supporting wholesale
rates for firm power supply services with special characteristics, such
as base load, intermediate, or peaking, the utility shall provide in
Statement BB the demand data required by clause (i) in total and in
separate corresponding demand values consistent with the service
characteristics. Corresponding values shall be stated for the system
demand of the utility, and for each applicable wholesale service group.
(iv) If a utility establishes plant categories in Statement AD under
paragraph (h)(4) of this section for the purpose of supporting wholesale
rates for nonfirm power supply services, such as capacity sales, the
utility shall include in Statement BB for each month of Period I and
Period II the monthly capability data relied on by the utility in
developing costs allocable to such rates, with an explanation of the
underlying cost allocation rationale.
(v) If a utility establishes production plant categories in Statement
AD under paragraph (h)(4) of this section for the purpose of supporting
wholesale rates based on specialized ratemaking theories such as
marginal cost pricing, time-of-day pricing, or base, intermediate, and
peaking characteristics, the utility shall include in Statement BB all
demand and capability data relied on by the utility in developing
support on a cost of service basis, with appropriate explanatory
material.
(vi) For each month of Period I and Period II, the utility shall
provide any additional demand data that the utility believes to be
relevant to the allocation of electric utility costs to the wholesale
services at issue. The utility shall fully support all such data and
shall explain the rationale and the specific application proposed.
(vii) Based upon information reported in Statements BB and BC, the
utility shall list selected months that are normally the months of
greatest significance in determining the need of the utility for power
supply capability throughout the year. All twelve months may be
selected, if appropriate. In its selection, the utility shall take into
account any effects of local weather seasons and, particularly, the
extent to which peak demands may tend to be similar in magnitude in two
or more months of a weather season. The utility shall explain the
reasons for the selections and describe the significance for the
selections of seasonal variations in the weather.
(28) Statement BC -- Reliability data. Statement BC is a statement
relating to reference standards of the filing utility for electric power
supply reliability, and to information designed to reflect monthly
availability of generating capacity reserves.
(i) For Period II, Period I, and each of the three calendar years
preceding Period I, the utility shall state and briefly explain its
objective reference standard of production power supply reliability and
the rationale underlying its choice of a reliability standard, including
whether it participates with other electric utilities in the selection
of a common standard on an area or pool basis. The utility shall
identify any such participating utilities, and provide a general
explanation of the basis upon which the reliability standard was jointly
developed.
(ii) The utility shall describe how its objective standard for
production power supply reliability affects its electric generating
facility construction planning and purchased power planning.
(iii) For the peak day of each month of Period II, Period I, and, to
the extent data are available, for the peak day of each month of the
three calendar years preceding Period I, the utility shall include
tabular schedules designed to show the following:
(A) Net peak load in megawatts, itemized to show:
(1) Gross peak firm load, including all firm sales assured available
by the reserve capacity of the utility;
(2) All firm purchases assured available by the reserve capacity of
the supplier; and
(3) Net peak load, computed as gross peak load under clause (1) minus
all firm purchases under clause (2).
(B) Net available dependable capacity, that is, the load-carrying
ability of the electric production facilities determined for the purpose
of scheduling capacity in day-to-day operations, provided in megawatts
and itemized to show:
(1) The owned dependable capacity of the utility for each production
plant category selected in Statement AD under paragraph (h)(4);
(2) Scheduled maintenance of owned dependable capacity of the
utility;
(3) Purchased dependable capacity of the utility;
(4) Scheduled maintenance of purchased dependable capacity of the
utility; and
(5) Net available dependable capacity, computed as the owned
dependable capacity under clause (1), minus scheduled maintenance of
owned capacity under clause (2), plus purchased dependable capacity
under clause (3), minus scheduled maintenance of purchased capacity
under clause (4).
(C) Available reserves in megawatts, which is the net available
dependable capacity under clause (iii)(B) minus net peak load under
clause (iii)(A).
(D) Available reserves as a percent of peak load, which is the
available reserves under clause (iii)(C) divided by net peak load under
clause (iii)(A).
(29) Statement BD -- Allocation energy and supporting data.
Statement BD is a statement of electric utility energy data for Period I
and Period II to be considered as bases for allocating related costs to
the wholesale services subject to the changed rate.
(i) For each month of Period I and Period II, and as totaled for the
twelve months of each period, the utility shall show the megawatt-hours
of firm power supply energy required by the system of the utility and
the magawatt-hour energy requirements of the wholesale customer groups
whose services will be subject to the changed rate. The wholesale
service data for each individual customer delivery point or set of
delivery points that constitutes an individual wholesale customer
billing unit shall include megawatt-hours at delivery. The utility
shall summarize and subtotal these individual customer data in
accordance with Statement BA customer groupings under paragraph (h)(26).
The utility shall show a loss adjustment for each wholesale customer
group to reflect energy at the power supply level. The utility shall
total the data to show total customer group energy requirements at power
supply level for each month of Period I and Period II.
(ii) Data provided under clause (i) shall not include energy
associated with interruptible or curtailable services, or energy
associated with other services, the revenues from which are shown as
revenue credits in Statement AU under paragraph (h)(21) of this section.
The utility shall separately state Period I and Period II monthly and
total energy data for any such services provided by the utility. If any
of the proposed wholesale rates at issue are for interruptible or
curtailable service, the utility shall provide descriptive material and
energy data specifically relevant to such services.
(iii) If a utility selects subfunctional categories in Statement AD
under paragraph (h)(4) of this section for the purpose of supporting any
changed wholesale rate for firm power supply services with special
characteristics, such as base load, intermediate, and peaking services,
the utility shall separate the energy data required by clause (i) into
corresponding energy values consistent with the service characteristics
and consistent with energy-related expense categories utilized in
Statement AH under paragraph (h)(8) of this section. The utility shall
state the corresponding values for the utility's system energy and for
each applicable wholesale service group.
(iv) If a utility establishes plant categories in Statement AD under
paragraph (h)(4) of this section for the purpose of supporting any
changed wholesale rate for nonfirm production services, or the changed
wholesale rate based on specialized ratemaking theories (see paragraph
(h)(27)(v) of this section), the utility shall include in Statement BD
all energy data relied on by the utility in developing the support on a
cost of service basis and relevant explanatory material. Energy data
provided under this clause shall be consistent with related expense
categories utilized in Statement AH under paragraph (h)(8) of this
section.
(v) For each month of Period I and Period II, and as totaled for the
twelve months of each period, the utility shall show the megawatt-hours
generated, itemized in accordance with Statement AD production
subfunctional categories, and the megawatt-hours purchased or
interchanged, itemized to show each type of transaction, such as firm
energy or economy interchanged energy. The utility shall quantitatively
reconcile such data with the system allocation energy reported in this
statement, and with energy data underlying the fuel and purchased power
expense reported in Statement AH.
(30) Statement BE -- Specific assignment data. (i) Statement BE is a
statement of specific components of the electric costs of service of the
utility for Period I and Period II. Statement BE costs of service are
those apportioned among wholesale services subject to the rate change
and other utility services, on a basis other than:
(A) Demand, capability, or energy data provided in Statements BB and
BD;
(B) A proportional relationship based on a selected plant category or
expense item for which an allocation to wholesale services is to be
independently determined; or
(C) Exclusive-use commitment in Statement BF under paragraph (h)(31)
of this section.
(ii) The utility shall include specific assignments considered
appropriate by the utility. Typical cost of service components that
could be specifically assigned are distribution plant (see examples
listed in Statement AD under paragraph (h)(4) of this section), certain
total electric wages and salaries provided in Statement AI under
paragraph (h)(9) of this section, such as wages and salaries for
customer accounting and for customer service and information, and
certain administrative and general expense items. (See examples listed
in Statement AH under paragraph (h)(8) of this section.)
(iii) The utility shall limit specific assignments to the minimum
required to adequately provide for costs not otherwise appropriately
allocable.
(iv) For each specific assignment, the utility shall include at least
the following information:
(A) Brief descriptive component title, such as distribution
substations or rate case expenses;
(B) Total electric amount in dollars;
(C) Wholesale customer group dollar amounts stated individually for
each wholesale customer rate group identified in Statement BA under
paragraph (h)(26), and stated in total for all such groups; and
(D) Explanation of the basis on which assignments were made,
accompanied by supporting detailed computations.
(31) Statement BF -- Exclusive-use commitments of major power supply
facilities. Statement BF is a statement describing and justifying the
commitment to exclusive-use for particular services of all or a stated
portion of electric utility generation units or plants, or major
transmission facilities.
(i) For Period I and Period II, the utility shall list each
transaction in which all or a stated portion of the output of a
specified filing utility-owned generating unit or group of units was
committed exclusively to a particular customer or group of customers, or
to a power pool or similar power supply entity. For each such
transaction, the utility shall provide the following information:
(A) Brief descriptive title for each commitment;
(B) Name of plant and unit designation;
(C) Name of the purchaser or power pool or other similar power supply
entity;
(D) Duration of the transaction;
(E) Basis of rates or charges, stated in terms of whether a
transaction reflects marginal, incremental, or fully distributed costs,
the specific overall and common equity rates of return included in
costs, provided on both a claimed and earned basis to the extent such
information is available, the approximate date of the cost analysis on
which the rates and charges were based, and any other considerations
significant to the transaction;
(F) Revenue received for each month of Period I and Period II or, if
applicable, monthly quantities of power and energy received or available
from power pools as consideration for commitment to a pool; and
(G) Proposed treatment in the cost of service determinations for the
wholesale services at issue. For example, a credit of revenue to the
total electric cost of service, in Statement AU under paragraph (h)(21),
could be proposed to account for unit capacity sales based upon
incremental capital costs. The utility shall include explanatory
material and support for the proposed procedures.
(ii) For Period I and Period II, the utility shall list each
transaction in which all, or a portion, of a major transmission facility
owned by the filing utility was committed exclusively to a particular
customer or group of customers. For each such transaction, the utility
shall provide information similar to that required by clause (i).
(32) Statement BG -- Revenue data to reflect changed rates.
Statement BG is a statement of revenues for Period I and Period II,
including those under the changed rate for the wholesale services at
issue.
(i) For each month of Period I and Period II, and in total for each
of the two periods, the utility shall show all billing determinants and
metered quantities for each delivery point or set of delivery points
that constitutes an individual wholesale customer billing unit, and the
result of applying each specific rate component to the billing
determinants for each billing unit stated with the total of the computed
monthly bill for the customer. If the rates include a fuel clause, the
utility shall compute and total the revenues under the fuel clause to
reflect fuel costs incurred during each month of Period I and Period II.
That is, the fuel clause revenues for the first month of Period I shall
reflect fuel costs incurred for that month, and so on for each month of
Period I and Period II. In computing fuel clause revenues, the utility
shall determine fuel cost according to 35.14 of this chapter.
(ii) If the form of the proposed fuel clause would produce revenues
different from those computed in accordance with clause (i), the utility
shall separately compute and state such fuel clause revenues for each
customer for each month of Period I and Period II.
(iii) The utility shall summarize separately revenue data computed in
accordance with clauses (i) and (ii) above for each month and in total
for Period I and Period II, in accordance with wholesale rate groups
specified in Statement BA under paragraph (h)(26) of this section. The
utility shall show total electric department revenues for each period to
include revenues under the changed rate for all such wholesale customer
rate groups.
(iv) For Period I and as estimated for Period II, the utility shall
summarize all billing determinants and revenues received from
interruptible or curtailable services. Billing determinants and revenue
data shall be consistent with interruptible demand and energy data in
Statements BB and BD. The utility shall include an explanation of the
extent to which interruptible or curtailable service revenues are or are
not included in revenue credits in Statement AU under paragraph (h)(21)
of this section.
(33) Statement BH -- Revenue data to reflect present rates.
Statement BH is a statement of revenues for Period I and Period II,
including those under present rates for wholesale services at issue, and
for total electric service to reflect such revenues for wholesale
services. The utility shall prepare this statement to include data
consistent with criteria specified for presentation of revenue under the
changed rate in Statement BG under paragraph (h)(32) of this section.
(34) Statement BI -- Fuel cost adjustment factors. Statement BI is a
statement of monthly fuel cost adjustment factors under the changed rate
and under the present rates, for Period I and Period II.
(i) If the changed rate schedule embodies a fuel cost adjustment
clause, the utility shall show detailed derivations of fuel cost
adjustment factors computed to reflect fuel cost incurred during each
month of Period I and Period II. Fuel cost adjustment factors are those
required for revenue determinations in accordance with paragraph
(h)(32)(i) of Statement BG.
(ii) If additional proposed fuel clause revenue data are reported in
accordance with paragraph (h)(32)(ii) of Statement BG, the utility shall
show detailed derivation of applicable monthly fuel adjustment factors.
(iii) If the present rate includes a fuel cost adjustment change, the
utility shall show detailed derivations of fuel cost adjustment factors
for each month of Period I and Period II. The utility shall include in
Statement BI derivations for all monthly factors required in the
computation of present fuel clause revenues reported in Statement BH.
The utility shall provide an explanation of the differences between the
present and proposed fuel clauses.
(iv) All fuel cost adjustment factors shall be cost-based. The
utility shall make a computational showing that shall develop adjustment
factors in a manner consistent with the requirements of 35.14 of this
chapter. The utility shall provide supporting detail on cost by type of
fuel, and shall show separately the allowable fuel clause cost component
of purchased or interchanged energy. All fuel cost data shall be
consistent with that included in operation and maintenance expenses in
Statement AH under paragraph (h)(8) of this section.
(35) Statement BJ -- Summary data tables. Statement BJ is a tabular
summary of portions of Period I and Period II data from specific cost of
service statements in this paragraph. The utility shall summarize under
descriptive titles the Period I and Period II data from the cost of
service provisions listed in this subparagraph. The utility shall
supply the data in the manner described for each cost of service
statement and in this subparagraph.
(i) If a utility provides in Statement BK information that is
substantially equivalent to the information required in this statement,
the utility may fulfill the requirements of this statement by
specifically referring to the location in Statement BK of the
information required in this subparagraph.
(ii) The utility shall provide the information in the following
statements as average total electric department monthly balances for
each function and subfunction of plant:
(A) Statement AD -- (h)(4)(i) and (ii);
(B) Statement AE -- (h)(5)(i) and (ii);
(C) Statement AF -- (h)(6)(i) through (v);
(D) Statement AG -- (h)(7)(i) through (vi);
(E) Statement AL -- (h)(12)(i) and (ii);
(F) Statement AM -- (h)(13); and
(G) Statement AN -- (h)(14).
(iii) The utility shall provide the information in the following
statements as total electric department annual revenue and expense
amounts:
(A) Statement AH -- (h)(8)(i), (iv) and (v);
(B) Statement AI -- (h)(9)(i) and (ii);
(C) Statement AJ -- (h)(10)(i);
(D) Statement AK -- (h)(11)(i);
(E) Statement AP -- (h)(16)(i) through (iv);
(F) Statement AQ -- (h)(17)(i) through (iii);
(G) Statement AR -- (h)(18)(i) through (iv);
(H) Statement AS -- (h)(19);
(I) Statement AT -- (h)(20); and
(J) Statement AU -- (h)(21).
(iv) The utility shall provide all cost of capital amounts in the
following statements.
(A) Statement AV -- (h)(22)(i)(A); and
(B) Statement AW -- (h)(23);
(v) The utility shall provide all tax rate data in Statement AY,
paragraph (h)(25)(i) of this section.
(vi) The utility shall provide the information in the following
statements as appropriate, for total electric department values and
individual customer group values:
(A) Statement BB -- (h)(27)(i) through (vi);
(B) Statement BD -- (h)(29)(i) through (iv);
(C) Statement BE -- (h)(30)(iv) (A), (B), and (C);
(D) Statement BG -- (h)(32)(iii); and
(E) Statement BH -- (h)(33).
(36) Statement BK -- Electric utility department cost of service,
total and as allocated. Statement BK is a statement of the claimed
fully allocated cost of service of the utility developed and shown for
Period I and Period II. The utility shall include analytical support
for each rate proposed to be differentiated on a time-of-use basis. The
utility shall also provide any marginal or incremental cost information
that is required to support the changed rate developed on a marginal or
incremental cost basis. The utility shall show allocations of fully
distributed costs to the wholesale services subject to the changed rate
accompanied by a comparison of allocated costs with revenues under the
changed rate. Nothing in this subparagraph shall preclude use by any
utility of any cost of service technique it believes reasonable and that
is consistent with the requirements of paragraph (g) of this section.
(i) The utility shall base the fully distributed cost of service and
the allocations thereof upon data provided in the accompanying detailed
statements required under this section and additional data which the
utility may submit and support in connection with this statement. The
cost of service data of the utility shall conform to the following
requirements:
(A) The total electric rate base and cost of service shall be
itemized and summarized by major functions and in a format designed to
facilitate review and analysis.
(B) Based on the total electric rate base and cost of service, and on
allocated or assigned component elements, the cost of service for each
Statement BA wholesale customer rate group under paragraph (h)(26) shall
be itemized and summarized by major functions in a format consistent
with that shown for total electric.
(C) The costs of service data for total electric and for each of the
wholesale customer groups shall include data that show the return and
the income taxes by components and in total, based upon the rate of
return claimed by the utility in Statement AV under paragraph (h)(22).
Individual components of income taxes shall include income taxes
payable, provision for deferred income tax -- debits and deferred income
tax -- credits, investment tax credits, or other adjustments.
(D) The fully distributed cost of service study of the utility shall
disclose the principal determinants for allocation of total electric
costs among the wholesale customer groups, including but not limited to
the following:
(1) Computations showing the energy responsibilities of the wholesale
services, with supporting detail;
(2) Computations showing the demand responsibilities of the wholesale
services, with supporting detail; and
(3) Computations showing the specific assignment responsibilities of
the wholesale services, with supporting detail.
(ii) For the total electric service and for each wholesale customer
rate group, the utility shall compare the fully distributed cost of
service with the revenues under the changed rate. Based on the
comparison, the utility shall show the revenue excess or deficiency and
the earned rate of return computed for the total electric service and
for each wholesale customer rate group.
(iii) For any filing that contains Period II data, the utility shall
supply any work papers and additional explanatory material necessary to
support Statement BK, indexed, referenced and paginated as provided in
paragraph (d)(5) of this section.
(iv) The utility shall provide a tabular comparison of Period II
total electric fully distributed cost items with those of Period I. The
comparisons shall show item amounts for each of the two periods, and
also shall show Period II item amounts as percentages of equivalent
items for Period I. Comparisons shall include at least the following
items, accompanied by explanatory notes with respect to significant
variations among the comparative percentages:
(A) Rate base;
(B) Production expenses;
(C) Transmission expenses;
(D) Customer accounting, customer service and information, and sales
expenses;
(E) Depreciation expenses;
(F) Taxes except income and revenue;
(G) Income taxes;
(H) Revenue taxes; and
(I) Return claimed.
(37) Statement BL -- Rate design information. In support of the
design of the changed rate, the utility shall submit the following
material:
(i) A narrative statement describing and justifying the objectives of
the design of the changed rate. If the purpose of the rate design is to
reflect costs, the utility shall state how that objective is achieved,
and shall accompany it with a summary cost analysis that would justify
the rate design, including any discounts or surcharges based on delivery
voltage level or other specific considerations. Such summary cost
analysis shall be consistent with, derived from, and cross-referenced to
the data in cost of service Statement BK. If the rate design is not
intended to reflect costs, whether fully distributed, marginal,
incremental, or other, the utility shall provide a statement to justify
the departure from cost-based rates.
(ii) If the billing determinants, such as quantities of demand,
energy, or delivery points, are on different bases than the cost
allocation determinants supporting such charges, the utility shall
submit an explanation setting forth the economic or other considerations
that warrant such departure. The information shall include at least the
following:
(A) If the individual rate for the demand, energy and customer
charges do not correspond to the comparable cost classifications
supporting such charges, a detailed explanation stating the reasons for
the differences.
(B) If the changed rate contains more than one demand or energy
block, a detailed explanation indicating the rationale for the blocking
and the considerations upon which such blocking is based, including
adequate cost support for the specified blocking.
(38) Statement BM -- Construction program statement. Statement BM is
a summary of data and supporting assumptions relating to the economics
of any construction program to replace or expand the utility's power
supply that shall be filed if the utility is filing for construction
work in progress in rate base under 35.26(c)(3) of this chapter. The
filing utility shall describe generally its program for providing
reliable and economic power for the period beginning with the date of
the filing and ending with the tenth year after the test period. The
statement shall include an assessment of the relative costs of adopting
alternative strategies including an analysis of alternative production
plant, e.g., cogeneration, small power production, heightened load
management and conservation efforts, additions to transmission plant or
increased purchases of power, and an explanation of why the program
adopted is prudent and consistent with a least-cost energy supply
program.
(Federal Power Act, 16 U.S.C. 791-828c; Dept. of Energy Organization
Act, 42 U.S.C. 7101-7352; E.O. 12009, 42 FR 46267, 3 CFR 142 (1978);
Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 91, 45 FR 46363, July 10, 1980, as amended at 47 FR 6826, Feb.
17, 1982; Order 225, 47 FR 19056, May 3, 1982; Order 298, 48 FR 24354,
June 1, 1983; 51 FR 7782, Mar. 6, 1986; Order 475, 52 FR 24993, July
2, 1987)
18 CFR 35.13 Subpart C -- Other Filing Requirements
18 CFR 35.14 Fuel cost and purchased economic power adjustment clauses.
(a) Fuel adjustment clauses which are not in conformity with the
principles set out below are not in the public interest. These
regulations contemplate that the filing of proposed rate schedules which
embody fuel clauses failing to conform to the following principles may
result in suspension of those parts of such rate schedules:
(1) The fuel clause shall be of the form that provides for periodic
adjustments per kWh of sales equal to the difference between the fuel
and purchased economic power costs per kWh of sales in the base period
and in the current period:
Adjustment Factor =Fm/Sm-Fb/Sb
Where: F is the expense of fossil and nuclear fuel and purchased
economic power in the base (b) and current (m) periods; and S is the
kWh sales in the base and current periods, all as defined below.
(2) Fuel and purchased economic power costs (F) shall be the cost of:
(i) Fossil and nuclear fuel consumed in the utility's own plants, and
the utility's share of fossil and nuclear fuel consumed in jointly owned
or leased plants.
(ii) The actual identifiable fossil and nuclear fuel costs associated
with energy purchased for reasons other than identified in paragraph
(a)(2)(iii) of this section.
(iii) The total cost of the purchase of economic power, as defined in
paragraph (a)(11) of this section, if the reserve capacity of the buyer
is adequate independent of all other purchases where non-fuel charges
are included in either Fb or Fm;
(iv) Energy charges for any purchase if the total amount of energy
charges incurred for the purchase is less than the buyer's total avoided
variable cost;
(v) And less the cost of fossil and nuclear fuel recovered through
all inter-system sales.
(3) Sales (S) must be all kWh's sold, excluding inter-system sales.
Where for any reason, billed system sales cannot be coordinated with
fuel costs for the billing period, sales may be equated to the sum of:
(i) Generation, (ii) purchases, (iii) exchange received, less (iv)
energy associated with pumped storage operations, less (v) inter-system
sales referred to in paragraph (a)(2)(iv) of this section, less (vi)
total system losses.
(4) The adjustment factor developed according to this procedure shall
be modified to properly allow for losses (estimated if necessary)
associated only with wholesale sales for resale.
(5) The adjustment factor developed according to this procedure may
be further modified to allow the recovery of gross receipts and other
similar revenue based tax charges occasioned by the fuel adjustment
revenues.
(6) The cost of fossil fuel shall include no items other than those
listed in Account 151 of the Commission's Uniform System of Accounts for
Public Utilities and Licensees. The cost of nuclear fuel shall be that
as shown in Account 518, except that if Account 518 also contains any
expense for fossil fuel which has already been included in the cost of
fossil fuel, it shall be deducted from this account. (Paragraph C of
Account 518 includes the cost of other fuels used for ancillary steam
facilities.)
(7) Where the cost of fuel includes fuel from company-owned or
controlled1036 sources, that fact shall be noted and described as part
of any filing. Where the utility purchases fuel from a company-owned or
controlled source, the price of which is subject to the jurisdiction of
a regulatory body, such cost shall be deemed to be reasonable and
includable in the adjustment clause. If the current price, however, is
in litigation and is being collected subject to refund, the utility
shall so advise the Commission and shall keep a separate account of such
amounts paid which are subject to refund, and shall advise the
Commission of the final disposition of such matter by the regulatory
body having jurisdiction. With respect to the price of fuel purchases
from company-owned or controlled sources pursuant to contracts which are
not subject to regulatory authority, the utility company shall file such
contracts and amendments thereto with the Commission for its acceptance
at the time it files its fuel clause or modification thereof. Any
subsequent amendment to such contracts shall likewise be filed with the
Commission as a rate schedule change and may be subject to suspension
under section 205 of the Federal Power Act. Fuel charges by affiliated
companies which do not appear to be reasonable may result in the
suspension of the fuel adjustment clause or cause an investigation
thereof to be made by the Commission on its own motion under section 206
of the Federal Power Act.
(8) All rate filings which contain a proposed new fuel clause or a
change in an existing fuel clause shall conform such clauses with the
regulations. Within one year of the effectiveness of this rulemaking,
all public utilities with rate schedules that contain a fuel clause
should conform such clauses with the regulations. Recognizing that
individual public utilities may have special operating characteristics
that may warrant granting temporary delays in the implementation of the
regulations, the Commission may, upon showing of good cause, waive the
requirements of this section of the regulations for an additional
one-year period so as to permit the public utilities sufficient time to
adjust to the requirements.
(9) All rate filings containing a proposed new fuel clause or change
in an existing fuel clause shall include:
(i) A description of the fuel clause with detailed cost support for
the base cost of fuel and purchased economic power or energy.
(ii) Full cost of service data unless the utility has had the rate
approved by the Commission within a year, provided that such cost of
service may not be required when an existing fuel cost adjustment clause
is being modified to conform to the Commission's regulations.
(10) Whenever particular circumstances prevent the use of the
standards provided for herein, or the use thereof would result in an
undue burden, the Commission may, upon application under 385.207 of
this chapter and for good cause shown, permit deviation from these
regulations.
(11) For the purpose of paragraph (a)(2)(iii) of this section, the
following definitions apply:
(i) Economic power is power or energy purchased over a period of
twelve months or less where the total cost of the purchase is less than
the buyer's total avoided variable cost.
(ii) Total cost of the purchase is all charges incurred in buying
economic power and having such power delivered to the buyer's system.
The total cost includes, but is not limited to, capacity or reservation
charges, energy charges, adders, and any transmission or wheeling
charges associated with the purchase.
(iii) Total avoided variable cost is all identified and documented
variable costs that would have been incurred by the buyer had a
particular purchase not been made. Such costs include, but are not
limited to, those associated with fuel, start-up, shut-down or any
purchases that would have been made in lieu of the purchase made.
(12) For the purpose of paragraph (a)(2)(iii) of this section, the
following procedures and instructions apply:
(i) A utility proposing to include purchase charges other than those
for fuel or energy in fuel and purchased economic power costs (F) under
paragraph (a)(2)(iii) of this section shall amend its fuel cost
adjustment clause so that it is consistent with paragraphs (a)(1) and
(a)(2)(iii) of this section. Such amendment shall state the system
reserve capacity criteria by which the system operator decides whether a
reliability purchase is required. Where the utility filing the
statement is required by a State or local regulatory body (including a
plant site licensing board) to file a capacity criteria statement with
that body, the system reserve capacity criteria in the statement filed
with the Commission shall be identical to those contained in the
statement filed with the State or local regulatory body. Any utility
that changes its reserve capacity criteria shall, within 45 days of such
change, file an amended fuel cost and purchased economic power
adjustment clause to incorporate the new criteria.
(ii) Reserve capacity shall be deemed adequate if, at the time a
purchase was initiated, the buyer's system reserve capacity criteria
were projected to be satisfied for the duration of the purchase without
the purchase at issue.
(iii) The total cost of the purchase must be projected to be less
than total avoided variable cost, at the time a purchase was initiated,
before any non-fuel purchase charge may be included in Fm.
(iv) The purchasing utility shall make a credit to Fm after a
purchase terminates if the total cost of the purchase exceeds the total
avoided variable cost. The amount of the credit shall be the difference
between the total cost of the purchase and the total avoided variable
cost. This credit shall be made in the first adjustment period after
the end of the purchase. If a utility fails to make the credit in the
first adjustment period after the end of the purchase, it shall, when
making the credit, also include in Fm interest on the amount of the
credit. Interest shall be calculated at the rate required by
35.19a(a)(2)(iii) of this chapter, and shall accrue from the date the
credit should have been made under this paragraph until the date the
credit is made.
(v) If a purchase is made of more capacity than is needed to satisfy
the buyer's system reserve capacity criteria because the total costs of
the extra capacity and associated energy are less than the buyer's total
avoided variable costs for the duration of the purchase, the charges
associated with the non-reliability portion of the purchase may be
included in F.
(Approved by the Office of Management and Budget under control number
1902-0096)
(Federal Power Act, 16 U.S.C. 824d, 824e and 825h (1976 & Supp. IV
1980); Department of Energy Organization Act, 42 U.S.C. 7171, 7172 and
7173(c) (Supp. IV 1980); E.O. 12009, 3 CFR part 142 (1978); 5 U.S.C.
553 (1976))
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 421, 36 FR
3047, Feb. 17, 1971; 39 FR 40583, Nov. 19, 1974; Order 225, 47 FR
19056, May 3, 1982; Order 352, 48 FR 55436, Dec. 13, 1983; 49 FR 5073,
Feb. 10, 1984; Order 529, 55 FR 47321, Nov. 13, 1990)
0361As defined in the Commission's Uniform System of Accounts 18 CFR
part 101, Definitions 5B.
18 CFR 35.15 Notices of cancellation or termination.
When a rate schedule or part thereof required to be on file with the
Commission is proposed to be cancelled or is to terminate by its own
terms and no new rate schedule or part thereof is to be filed in its
place, each party required to file the schedule shall notify the
Commission of the proposed cancellation or termination on the form
indicated in 131.53 of this chapter at least sixty days but not more
than one hundred-twenty days prior to the date such cancellation or
termination is proposed to take effect. A copy of such notice to the
Commission shall be duly posted. With such notice each filing party
shall submit a statement giving the reasons for the proposed
cancellation or termination, and a list of the affected purchasers to
whom the notice has been mailed. For good cause shown, the Commission
may by order provide that the notice of cancellation or termination
shall be effective as of a date prior to the date of filing or prior to
the date the filing would become effective in accordance with these
rules.
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 39, 44 FR
46454, Aug. 8, 1979)
18 CFR 35.16 Notice of succession.
Whenever the name of a public utility is changed, or its operating
control is transferred to another public utility in whole or in part, or
a receiver or trustee is appointed to operate any public utility, the
exact name of the public utility, receiver, or trustee which will
operate the property thereafter shall be filed within 30 days thereafter
with the Commission on the form indicated in 131.51 of this chapter.
18 CFR 35.17 Changes relating to suspended rate schedules or parts
thereof. 4037
(a) Withdrawal of suspended rate schedules or parts thereof. Where a
rate schedule or part thereof has been suspended by the Commission, it
may be withdrawn during the period of suspension only by special
permission of the Commission granted upon application therefor and for
good cause shown. If permitted to be withdrawn, any such rate schedule
may be refiled with the Commission within a one-year period thereafter
only with special permission of the Commission for good cause shown.
(b) Changes in suspended rate schedules or parts thereof. A public
utility may not, within the period of suspension, file any change in a
rate schedule or part thereof which has been suspended by order of the
Commission except by special permission of the Commission granted upon
application therefor and for good cause shown.
(c) Changes in rate schedules or parts thereof continued in effect
and which were proposed to be changed by the suspended filing. A public
utility may not, within the period of suspension, file any change in a
rate schedule or part thereof continued in effect by operation of an
order of suspension and which was proposed to be changed by the
suspended filing, except by special permission of the Commission granted
upon application therefor and for good cause shown.
0374See General Policy and Interpretations, 2.4, of this chapter.
18 CFR 35.18 Rates established by order of the Commission.
Every rate schedule filed to make effective the rates, charges,
classifications or services, or any rule, regulation, practice or
contract relating thereto, established in conformity with an order of
the Commission shall bear the following additional notation on the title
page:
Filed in Compliance with an Order of the Federal Power Commission
Docket No. ------ Entered ------ Day of ------ .
18 CFR 35.19 Submission of information by reference.
If all or any portion of the information called for in this part has
already been submitted to the Commission, substantially in the form
prescribed above, specific reference thereto may be made in lieu of
re-submission in response to the requirements of this part.
18 CFR 35.19a Refund requirements under suspension orders.
(a) Refunds. (1) The public utility whose proposed increased rates
or charges were suspended shall refund at such time in such amounts and
in such manner as required by final order of the Commission the portion
of any increased rates or charges found by the Commission in that
suspension proceeding not to be justified, together with interest as
required in paragraph (a)(2) of this section.
(2) Interest shall be computed from the date of collection until the
date refunds are made as follows:
(i) At a rate of seven percent simple interest per annum on all
excessive rates or charges held prior to October 10, 1974;
(ii) At a rate of nine percent simple interest per annum on all
excessive rates or charges held between October 10, 1974, and September
30, 1979; and
(iii)(A) At an average prime rate for each calendar quarter on all
excessive rates or charges held (including all interest applicable to
such rates or charges) on or after October 1, 1979. The applicable
average prime rate for each calendar quarter shall be the arithmetic
mean, to the nearest one-hundredth of one percent, of the prime rate
values published in the Federal Reserve Bulletin, or in the Federal
Reserve's ''Selected Interest Rates'' (Statistical Release G. 13), for
the fourth, third, and second months preceeding the first month of the
calendar quarter.
(B) The interest required to be paid under clause (iii)(A) shall be
compounded quarterly.
(3) Any public utility required to make refunds pursuant to this
section shall bear all costs of such refunding.
(b) Reports. Any public utility whose proposed increased rates or
charges were suspended and have gone into effect pending final order of
the Commission pursuant to section 205(e) of the Federal Power Act
shall:
(1) Keep accurate account of all amounts received under the increased
rates or charges which became effective after the suspension period, for
each billing period, specifying by whom and in whose behalf such amounts
are paid;
(2) Submit annually on or before April 30 of each year to the
Commission, in writing (original and one copy) and under oath the
following information concerning each billing period for each purchaser
for the previous calendar year:
(i) The monthly billing determinants of electricity sold and
delivered to each purchaser under the suspended agreements and tariffs;
(ii) The revenues which would result from such sales if they were
computed under the rates in effect immediately prior to the date the
proposed increased rates or charges became effective;
(iii) The revenues resulting from such sales as computed under the
proposed increased rates or charges that became effective after the
suspension period; and
(iv) The difference between those revenues computed in clauses (ii)
and (iii) of this subparagraph.
(3) The Director of the Office of Electric Power Regulation may
require reports on a more frequent basis in individual cases when it is
deemed appropriate and necessary to do so, or upon request where good
cause is shown.
(44 FR 53503, Sept. 14, 1979, as amended at 45 FR 3889, Jan. 21,
1980)
18 CFR 35.20 Filing of rate schedules, notices, etc., by persons
authorized to transmit electric energy from the United States to a
foreign country.
Persons authorized to transmit electric energy from the United States
to a foreign country and required by the provisions of 32.38 of this
chapter, to file all rate schedules, supplements, notices of succession
in ownership or operation, notices of cancellation, and certificates of
concurrence with respect to such energy shall do so in the form and
manner specified in 35.1 through 35.16 as applicable to public
utilities.
18 CFR 35.21 Applicability to licensees and others subject to section
19 or 20 of the Federal Power Act.
Upon further order of this Commission issued upon its own motion or
upon complaint or request by any person or State within the meaning of
sections 19 or 20 of the Federal Power Act, the provisions of 35.1
through 35.19 shall be operative as to any licensee or others who are
subject to this Commission's jurisdiction in respect to services and the
rates and charges of payment therefor by reason of the requirements of
sections 19 or 20 of the Federal Power Act. The requirement of this
section for compliance with the provisions of 35.1 through 35.19 shall
be in addition to and independent of any obligation for compliance with
those regulations by reason of the provisions of sections 205 and 206 of
the Federal Power Act. For purposes of applying this section Electric
Service as otherwise defined in 35.2(a) shall mean: Services to
customers or consumers of power within the meaning of sections 19 or 20
of the Federal Power Act which may be comprised of various classes of
capacity and energy and/or transmission services subject to the
jurisdiction of this Commission. Electric Service shall include the
utilization of facilities owned or operated by any licensee or others to
effect any of the foregoing sales or services whether by leasing or
other arrangements. As defined herein Electric Service is without
regard to the form of payment or compensation for the sales or services
rendered, whether by purchase and sale, interchange, exchange, wheeling
charge, facilities charge, rental or otherwise. For purposes of
applying this section, Rate Schedule as otherwise defined in 35.2(b)
shall mean: A statement of
(1) Electric service as defined in this 35.21,
(2) Rates and charges for or in connection with that service, and
(3) All classifications, practices, rules, regulations, or contracts
which in any manner affect or relate to the aforementioned service,
rates and charges. This statement shall be in writing and may take the
physical form of a contractual document, purchase or sale agreement,
lease of facilities, tariff5038 or other writing. Any oral agreement or
understanding forming a part of such statement shall be reduced to
writing and made a part thereof.
0385See footnote 1 to 35.2.
18 CFR 35.22 Research and development clauses.
(a) Advance Commission approval may be requested of rate treatment
for RD&D expenditures of $50,000 or more related to a project undertaken
by the company or as part of a project undertaken by others, or for a
group of projects which, in the aggregate, cost $50,000 or more. This
approval may be requested regardless of whether the RD&D is undertaken
by the utility or by another party or organization. Approval requests
shall describe the project in such detail as to satisfy the Commission
that the project expenditure involved qualifies as being valid,
justifiable, and reasonable. In addition, the request shall
specifically include the estimated cost of the project and a description
of the utility's expenditure percentage in the total project program.
When a utility participates in a joint project, the contractual
agreements should provide the utility complete access to cost records
and results related to the project. Records shall be kept so that
unscheduled progress reports may be called for as determined by the
Commission. Approval requests shall justify any conduct of or partial
support of large-scale demonstration facilities by clearly identifying
and justifying the portions of the capital and operating costs which
require the high-risk financial support necessary to the pursuit of
RD&D. The justification of support for a large-scale demonstration
facility shall include a statement as to the planned accounting
treatment of revenue which may be derived from the facility's product
and of proceeds which may be derived from the sale of the facility.
(b) Where more than one jurisdictional company proposes to support an
RD&D organization as defined below, an approval request may be submitted
to the Commission by the RD&D organization covering the organization's
RD&D program as defined below. Approval by the Commission of such RD&D
program shall constitute approval of individual companies' contributions
to the RD&D organization. Organizations eligible to receive
contributions from companies and to request program approval from the
Commission under this section may be RD&D organizations broadly
supported by a number of energy industry sectors (e.g., natural gas,
electric power, petroleum, coal, nuclear energy); RD&D organizations
broadly supported by a single industry sector; regional organizations
that work primarily on problems of a regional nature; or consortia of
companies that jointly support RD&D programs for the collective benefit
of their ratepayers.
(c) RD&D organizations or individual jurisdictional companies
requesting and receiving advance RD&D program approval shall annually
submit a five-year program plan at least 180 days prior to the
commencement of the five-year period of the plan. The plan shall
clearly state the objectives within and beyond the five-year period and
clearly relate the objectives to the interests of the ratepayers, the
public, and the industry and to the objectives of other major research
organizations, particularly the U.S. Energy Research and Development
Administration. The plan shall contain sufficient budget, technical,
and schedule details to afford an understanding of the work to be
performed, to allow an assessment of the probability of success, and to
permit comparison with other organizations' research plans. The
commencement date and expected termination date for individual research
development and demonstration projects to be initiated during the first
year of the plan will be given along with expected annual costs. The
plan shall discuss the RD&D efforts and progress since the preparation
of the program plan submitted the previous year and shall explain any
changes that have been made in objectives, priorities, and budgets since
the plan of the previous year. The plan shall identify all
jurisdictional companies that will support the program and their
budgeted support. The plan shall identify those persons involved in the
development, review, and approval of the plan and shall state the amount
of effort contributed and the degree of control exercised by each. The
principal tests for the adequacy of the proposed plan shall be the
following guidelines:
(1) Evidence that the RD&D objectives of the company or research
organizations have been clearly established.
(2) Evidence that the plan evolves from these RD&D objectives and
adequately utilizes the viewpoints of scientific engineering, industry,
economic, consumers and environmental interests.
(3) Evidence that an effective mechanism exists and is used for
coordinating this research and development plan with other relevant
efforts of national scope.
(4) Evidence that the project or program is well conceived and, if
successful, has a reasonable chance of benefitting the ratepayer in a
reasonable period of time, having due regard to the basic, exploratory
or applied nature of each submitted RD&D project.
(5) Evidence that whatever achievements may result, including
knowledge gained or technology developed from the RD&D effort, if any,
will accrue to the benefit of the sponsoring jurisdictional company(s)
and its/their customers.
(d) Within 120 days of filing of the five-year RD&D plan as defined
above, the Commission will state its decision with respect to
acceptance, partial acceptance, or rejection of the plan, or, when the
complexity of issues in the plan so requires, will set a date certain by
which a final decision will be made, or will order the matter set for
hearing. Partial rejection of a plan by the Commission will be
accompanied by a decision as to the partial level of acceptance which
will be proportionally applied to all contributions listed for
jurisdictional companies in the plan. Approval by the Commission of a
five-year plan constitutes approval for rate treatment of all projects
identified as starting during the first year of the approved plan.
Continued rate treatment will be dependent upon review and evaluation of
subsequent annual reports.
(e) An electric utility may submit a research, development and
demonstration cost adjustment provision to flow through changes in its
expenditures for research, development and demonstration. 3 Changes
permitted hereunder include both expenditures chargeable to operations
as well as rate base treatment of the balances in Account 188 as
hereinafter defined. Except in the case of expenditures approved
pursuant to 35.22(b), no RD&D adjustment provision shall become
effective until authorized by the Commission. No request for an RD&D
adjustment provision will be considered by the Commission unless the
proposed clause indicates the following terms and conditions:
(1) The RD&D expenditure adjustment shall be reflected in the
company's rates only when it amounts to at least $0.00001 per kWh of
annual sales. Rate changes shall be applied to the energy component of
the existing rates.
(2) Rate changes shall be computed and filed semiannually.
(3) RD&D expenditures chargeable to operations which may be tracked
and reflected in rates shall be the amount which actual RD&D
expenditures during the 12-month period ending 3 months prior to a
proposed rate adjustment exceed or are less than (i) the amount allowed
in the company's last rate proceeding, or the average of 3 years RD&D
expenditures if such rate adjustment is an initial filing under this
subsection; or (ii) the actual RD&D expenditures in the company's last
prior rate adjustment under this subsection.
(4) RD&D expenditures chargeable to account 188 which are eligible to
receive rate base treatment and which may be tracked and reflected in
rates shall be the amount which the actual balances in such account
during the 12-month period ending 3 months prior to the proposed rate
adjustment exceed or are less than the balances in such account as of
the date of this regulation if an initial filing under this paragraph,
or the balances in account 188 included in the company's last prior rate
adjustment under this subparagraph. For purposes of determining the
balance which may be tracked, the company shall reduce the balance in
account 188 by all money received related to its RD&D expenditures and
shall increase or reduce such account balance, as appropriate, by the
applicable accumulated deferred income taxes. The rate of return used
by the company to determine the rate effect of the rate base treatment
of the balance in account 188 shall be the rate of return last allowed
by the Commission for this class of service during the previous 3-year
period. If there has been no such rate of return allowed then, in
absence of evidence submitted to the contrary, the return utilized shall
be the present interest rate used for computing refunds as specified in
35.19a of the Commission's regulations under the Federal Power Act.
(5) Any rate schedule filing made by the company to increase its
rates to its customers shall meet the notice requirements of 35.3 of
the regulations which provide, in pertinent part, that the filing be
filed with the Commission and posted (as defined in 35.2(d) of the
regulations) at least 60 days prior to the date on which any change(s)
in its existing rates is to become effective. Simultaneously with the
above filing, the company shall furnish the Commission, jurisdictional
customers, and interested State commissions a report containing detailed
computations which clearly show the derivation of the proposed rate
adjustment. The effect upon jurisdictional rates shall be determined by
computing the unit change (either increase or decrease) based upon sales
for the 12-month period ending 3 months prior to the proposed rate
adjustment. Any RD&D expenditures for which the company has been
allowed to track by other regulatory bodies shall be clearly designated
and treated in such a manner so as to avoid double recovery. Each rate
adjustment shall become effective on the proposed effective date without
suspension provided that any rate increase shall be subject to reduction
and refund of any portion found after hearing to be unjustified by a
final and nonappealable Commission order. The filing fee requirements
of 36.2 of the regulations are hereby waived and shall not apply to any
filings made under this section ( 35.22).
(6) In addition to the above-required report containing the
derivation of the proposed rate, the following additional data shall be
submitted as part of the application:
A statement as to the anticipated scope and objective of the RD&D and
the relationship of such objective to the jurisdictional service for
which the tracking is to apply. If the tracking is not to apply to
certain jurisdictional service but is to apply to others, a statement as
to the reasons for such determination.
(7) No company shall be required to reduce its rates under this
subparagraph by an increment exceeding the aggregate increases allowed
thereunder.
(Secs. 19, 20 (41 Stat. 1073); secs. 205, 206, 208, 209, 301-304,
309 (49 Stat. 851-856, 858, 859); 16 U.S.C. 812, 813, 824d, 824e, 824g,
824h, 825, 825a, 825b, 825c, 825h; secs. 4, 5, 8, 9, 10, 16 and 17 (52
Stat. 822, 823, 825, 826, 830; 76 Stat. 72; 15 U.S.C. 717c, 717d,
717g, 717h, 717i, 717o, 717p))
(Order 483, 38 FR 12114, May 9, 1973, as amended by Order 566, 42 FR
30155, June 13, 1977; Order 569, 42 FR 39661, Aug. 5, 1977; 44 FR
26068, May 4, 1979; Order 39, 44 FR 46454, Aug. 8, 1979)
3For purposes of this subsection, RD&D expenditures represent those
costs includable in Account 188, Research, Development and Demonstration
expenditures.
18 CFR 35.23 Limits for percentage adders in rates for transmission
services; revision of rate schedules.
(a) Applicability. This section applies to all electric rate
schedules required to be filed under this part that are used for
transactions in which the utility or system performs a transmission or
purchase and resale function.
(b) Definition. For purposes of this section, purchased power price
means the amount paid by a utility or system that performs a
transmission or purchase and resale function for electric power
generated by another utility or system.
(c) General rule. (1) If a utility or system uses a rate component
that recovers revenues computed wholly or in part as a percentage of the
purchased power price, the utility or system shall establish a limit on
the revenues recovered by such rate component in any transaction, in
accordance with paragraph (d) of this section.
(2) The limit established under this paragraph shall be stated in
mills per kilowatt-hour.
(d) Cost support information. (1) A utility or system shall submit
cost support information to justify any revenue limit established under
paragraph (c) of this section, except as provided in paragraph (e) of
this section.
(2) The information submitted under this section shall consist of
those costs, other than the purchased power price, incurred by a utility
or system as a result of a transmission or purchase and resale
transaction, which costs are not recovered under any other rate
component.
(e) Exception. A utility or system need not submit the cost support
information required under paragraph (d) of this section if the limit
established under paragraph (c) of this section is not more than one
mill per kilowatt-hour.
(f) Revision of rate schedules. Every utility or system shall:
(1) Amend any rate schedule or tariff to indicate any limit
established pursuant to this section, not later than 60 days after the
effective date of this rule; and
(2) Hereafter conform any rate or rate change filed under this part
to the requirements of this section.
(Federal Power Act, as amended, 16 U.S.C. 792-828c; Department of
Energy Organization Act, 42 U.S.C. 7101-7352; E.O. 12009, 3 CFR 142
(1978))
(Order 84, 45 FR 31300, May 13, 1980)
35.24 (Reserved)
18 CFR 35.25 Tax normalization for public utilities.
(a) Applicability. (1) Except as provided in subparagraph (2) of
this paragraph, this section applies, with respect to rate schedules
filed under 35.12 and 35.13 of this part, to the ratemaking treatment
of the tax effects of all transactions for which there are timing
differences.
(2) This section does not apply to the following timing differences:
(i) Differences that result from the use of accelerated depreciation;
(ii) Differences that result from the use of Class Life Asset
Depreciation Range (ADR) provisions of the Internal Revenue Code;
(iii) Differences that result from the use of accelerated
amortization provisions on certified defense and pollution control
facilities;
(iv) Differences that arise from recognition of extraordinary
property losses as a current expense for tax purposes but as a deferred
and amortized expense for book purposes;
(v) Differences that arise from recognition of research, development,
and demonstration expenditures as a current expense for tax purposes but
as a deferred and amortized expense for book purposes;
(vi) Differences that result from different tax and book reporting of
deferred gains or losses from disposition of utility plant;
(vii) Differences that result from the use of the Asset Guideline
Class ''Repair Allowance'' provision of the Internal Revenue Code;
(viii) Differences that result from recognition of purchased gas
costs as a current expense for tax purposes but as a deferred expense
for book purposes.
(See Order 13, issued October 18, 1978; Order 203, issued May 29,
1958; Order 204, issued May 29, 1958; Order 404, issued May 15, 1970;
Order 408, issued August 26, 1970; Order 432, issued April 23, 1971;
Order 504, issued February 11, 1974; Order 505, issued February 11,
1974; Order 566, issued June 3, 1977; Opinion 578, issued June 3,
1970; and Opinion 801, issued May 31, 1977.)
(b) General rules -- (1) Tax normalization required. (i) A public
utility must compute the income tax component of its cost of service by
using tax normalization for all transactions to which this section
applies.
(ii) Except as provided in paragraph (c) of this section, application
of tax normalization by a public utility under this section to compute
the income tax component will not be subject to case-by-case
adjudication.
(2) Reduction of, and addition to, rate base. (i) The rate base of a
public utility using tax normalization under this section must be
reduced by the balances that are properly recordable in Account 281,
''Accumulated deferred income taxes-accelerated amortization property;''
Account 282, ''Accumulated deferred income taxes -- other property;''
and Account 283, ''Accumulated deferred income taxes -- other.''
Balances that are properly recordable in Account 190, ''Accumulated
deferred income taxes,'' must be treated as an addition to rate base.
(ii) Such rate base reductions or additions must be limited to
deferred taxes related to rate base, construction or other
jurisdictional activities.
(iii) If a public utility uses an approved purchased gas adjustment
clause or a research, development and demonstration tracking clause, the
rate base reductions or additions required under this subparagraph must
apply only to the extent that the balances in Account 190 and Accounts
281 through 283 are not used, for purposes of calculating carrying
charges, as an offset to balances properly recordable in Account 188,
''Research development and demonstration expenditures,'' or Account 191,
''Unrecovered purchased gas costs.''
(c) Special rules. (1) This paragraph applies:
(i) If the public utility has not provided deferred taxes in the same
amount that would have accrued had tax normalization been applied for
the tax effects of timing difference transactions originating at any
time prior to the test period; or
(ii) If, as a result of changes in tax rates, the accumulated
provision for deferred taxes becomes deficient in or in excess of
amounts necessary to meet future tax liabilities as determined by
application of the current tax rate to all timing difference
transactions originating in the test period and prior to the test
period.
(2) The public utility must compute the income tax component in its
cost of service by making provision for any excess or deficiency in
deferred taxes described in subparagraphs (1)(i) or (1)(ii) of this
paragraph.
(3) The public utility must apply a Commission-approved ratemaking
method made specifically applicable to the public utility for
determining the cost of service provision described in subparagraph (2)
of this paragraph. If no Commission-approved ratemaking method has been
made specifically applicable to the public utility, then the public
utility must use some ratemaking method for making such provision, and
the appropriateness of this method will be subject to case-by-case
determination.
(d) Definitions. For purposes of this section, the term:
(1) Tax normalization means computing the income tax component as if
the amounts of timing difference transactions recognized in each period
for ratemaking purposes were also recognized in the same amount in each
such period for income tax purposes.
(2) Timing differences means differences between amounts of expenses
or revenues recognized for income tax purposes and amounts of expenses
or revenues recognized for ratemaking purposes, which differences arise
in one time period and reverse in one or more other time periods so that
the total amounts of expenses or revenues recognized for income tax
purposes and for ratemaking purposes are equal.
(3) Commission-approved ratemaking method means a ratemaking method
approved by the Commission in a final decision including approval of a
settlement agreement containing a ratemaking method only if such
settlement agreement applies that method beyond the effective term of
the settlement agreement.
(4) Income tax purposes means for the purpose of computing income tax
under the provisions of the Internal Revenue Code or the income tax
provisions of the laws of a State or political subdivision of a State
(including franchise taxes).
(5) Income tax component means that part of the cost of service that
covers income tax expenses allowable by the Commission.
(6) Ratemaking purposes means for the purpose of fixing, modifying,
approving, disapproving or rejecting rates under the Federal Power Act
or the Natural Gas Act.
(7) Tax effect means the tax reduction or addition associated with a
specific expense or revenue transaction.
(8) Transaction means an activity or event that gives rise to an
accounting entry that is used in determining revenues or expenses.
(46 FR 26636, May 14, 1981. Redesignated and amended by Order 144-A,
47 FR 8342, Feb. 26, 1982)
18 CFR 35.26 Construction work in progress.
(a) Applicability. This section applies to any rate schedule filed
under this part by any public utility as defined in subsection 201(e) of
the Federal Power Act.
(b) Definitions. For purposes of this section:
(1) Constuction work in progress or CWIP means any expenditure for
public utility plant in process of construction that is properly
included in Accounts 107 (construction work in progress) and 120.1
(nuclear fuel in process of refinement, conversion, enrichment, and
fabrication) of part 101 of this chapter, the Uniform System of Accounts
Prescribed for Public Utilities and Licensees Subject to the Provisions
of the Federal Power Act (Major and Nonmajor), that would otherwise be
eligible for allowance for funds used during construction (AFUDC)
treatment.
(2) Double whammy means a situation which may arise when a wholesale
electric rate customer embarks upon its own or participates in a
construction program to supply itself with all or a portion of its
future power needs, thereby reducing its future dependence on the CWIP
of the rate applicant, but is simultaneously forced to pay to the CWIP
public utility rate applicant the CWIP portion of the wholesale rates
that reflects existing levels of service or a different anticipated
service level.
(3) Fuel conversion facility means any addition to public utility
plant that enables a natural gas-burning plant to convert to the use of
other fuels, or that enables an oil-burning plant to convert to the use
of other fuels, other than natural gas. Such facilities include those
that alter internal plant workings, such as oil or coal burners, soot
blowers, bottom ash removal systems and concomitant air pollution
control facilities, and any facility needed for receiving and storing
the fuel to which the plant is being converted, which facility would not
be necessary if the plant continued to burn gas or oil.
(4) Pollution control facility means an identifiable structure or
portions of a structure that is designed to reduce the amount of
pollution produced by the power plant, but does not include any facility
that reduces pollution by substituting a different method of generation
or that generates the additional power necessitated by the operation of
a pollution control facility.
(c) General rule. For purposes of any initial rate schedule or any
rate schedule change filed under 35.12 or 35.13 of this part, a public
utility may include in its rate base any costs of construction work in
progress (CWIP), including allowance for funds used during construction
(AFUDC), as provided in this section.
(1) Pollution control facilities. -- (i) General rule. Any CWIP for
pollution control facilities allocable to electric power sales for
resale may be included in the rate base of the public utility.
(ii) Qualification as a pollution control facility. In determining
whether a facility is a pollution control facility for purposes of this
section, the Commission will consider:
(A) Whether such facility is the type facility described in the
Internal Revenue Service laws, 26 U.S.C. 169(d)(1), as follows:
''A new identifiable treatment facility which is used * * * to abate
or control water or atmospheric pollution or contamination by removing,
altering, disposing, storing, or preventing the creation or emission of
pollutants, contaminants, wastes or heat'';
(B) Whether such facility has been certified by a local, state, or
federal agency as being in conformity with, or required by, a program of
pollution control;
(C) Whether such facility is the type facility described in the
schedule of ''Environmental Protection Facilities,'' sections 4(A)
through 4(D), page 428, FERC Form No. 1, Annual Report of Electric
Utilities, Licensees and Others (Major and Nonmajor) (Revised 12-85);
and
(D) Other evidence showing that such facilities are for pollution
control.
(2) Fuel conversion facilities. Any CWIP for fuel conversion
facilities allocable to electric power sales for resale may be included
in the rate base of the public utility.
(3) Non-pollution control of fuel conversion (non-PC/FC) CWIP. No
more than 50 percent of any CWIP allocable to electric power sales for
resale not otherwise included in rate base under paragraphs (c) (1) and
(2) of this section, may be included in the rate base of the public
utility.
(4) Forward looking allocation ratios. Every test period CWIP
project requested for wholesale rate base treatment pursuant to
35.26(c)(1), (2), and (3) of this part will be allocated to the customer
classes on the basis of forward looking allocation ratios reflecting the
anticipated average annual use the wholesale customers will make of the
system over the estimated service life of the project. Supporting
documentation, as required by 35.12 and 35.13 of this part, must be in
sufficient detail to permit examination and verification of the forward
looking allocation ratio's recognition of each wholesale customer's
plans, if any, for future alternative or supplementary power supplies.
For the purpose of preventing anticompetitive effects, including
CWIP-induced price squeeze and double whammy, sufficient recognition of
such plans may require the public utility applicant to provide for
separate customer groups or provide for a rate design incorporating
selected CWIP project credits.
(d) Effective date. If a public utility proposes in its filed rates
to include CWIP in rate base under this section, that portion of the
rate related to CWIP is collectable at the time the general rates become
effective pursuant to Commission order, whether or not subject to
refund, except as provided in paragraph (g) of this section.
(e) Discontinuance of AFUDC. On the date that any proposed rate that
includes CWIP in rate base becomes effective, a public utility that has
included CWIP in rate base must discontinue the capitalization of any
AFUDC related to those amounts of CWIP is rate base.
(f) Accounting procedures. When a public utility files to include
CWIP in its rate base pursuant to this section, it must propose
accounting procedures in that rate schedule filing that:
(1) Ensure that wholesale customers will not be charged for both
capitalized AFUDC and corresponding amounts of CWIP proposed to be
included in rate base; and
(2) Ensure that wholesale customers will not be charged for any
corresponding AFUDC capitalized as a result of different accounting or
ratemaking treatments accorded CWIP by state or local regulatory
authorities.
(g) Anticompetitive procedures. -- (1) Filing requirements. In
order to facilitate Commission review of the anticompetitive effects of
applications for CWIP pursuant to 35.26(c)(3), a public utility
applying for rates based upon inclusion of such CWIP in rate base must
include the following information in its filing:
(i) The percentage of the proposed increase in the jurisdictional
rate level attributable to non-pollution control/fuel conversion CWIP
and the percentage of non-pollution control/fuel conversion CWIP
supporting the proposed rate level;
(ii) The percentage of non-pollution control/fuel conversion CWIP
permitted by the state or local commission supporting the current retail
rates of the public utility against which the relevant wholesale
customers compete; and
(iii) Individual earned rate of return analyses of each of the
competing retail rates developed on a basis fully consistent with the
wholesale cost of service for the same test period if the requested
percentage of wholesale non-pollution control/fuel conversion CWIP
exceeds that permitted by the relevant state or local authority to
support the currently competing retail rates.
(2) Preliminary relief. (i) If an intervenor in its initial pleading
alleges that a price squeeze will occur as a direct result of the public
utility's request for CWIP pursuant to 35.26(c)(3), makes a showing
that it is likely to incur harm if such CWIP is allowed subject to
refund, and makes a showing of how the harm to the intervenor would be
mitigated or eliminated by the types of preliminary relief requested,
the Commission will consider preliminary relief at the suspension stage
of the case pursuant to paragraph (g)(4) of this section. In
determining whether to grant preliminary relief, the Commission will
balance the following public interest considerations:
(A) The harm to the intervenor if it is not granted preliminary
relief from the requested CWIP;
(B) The harm to the public utility if, during the interim period of
preliminary relief, the public utility is required to recover its
financing charges later through AFUDC rather than immediately through
CWIP; and
(C) Mitigating bias against investment in new plants, ensuring
accurate price signals, and fostering rate stability.
(ii) Whether or not preliminary relief is granted at the suspension
stage will not preclude consideration of further interim or final
remedies later in the preceedings, if warranted.
(3) If the Commission makes a final determinaion that a price squeeze
due solely to allowance of a lower percentage of non-pollution
control/fuel conversion CWIP in the public utility's retail rate base
than allowed by this Commission, the Commission will consider an
adjustment to non-pollution control/fuel conversion CWIP in order to
eliminate or mitigate the price squeeze.
(4) If an intervenor meets the requirements of paragraph (g)(2) of
this section, the Commission, depending on the type of showing made
including the likelihood, immediacy, and severity of any anticompetitive
harm, may:
(i) Suspend the entire rate increase or all or a portion of the
non-pollution control/fuel conversion CWIP component for up to five
months;
(ii) Allow all or a portion of the non-pollution control/fuel
conversion CWIP only prospectively from the issuance of the Commission's
final order on rehearing on the matter; or
(iii) Take such other action as is proper under the circumstances.
(Order 474, 52 FR 23965, June 26, 1987, as amended by Order 474-A, 52
FR 35702, Sept. 23, 1987; Order 474-B, 54 FR 32804, Aug. 10, 1989)
18 CFR 35.27 Changes of rates relating to changes in the Federal
corporate income tax rate.
(a) Purpose. The abbreviated filing procedure and formula for this
section are intended to permit a public utility to make an adjustment to
its rates to reflect the decrease in the Federal corporate income tax
rate pursuant to the Tax Reform Act of 1986. This abbreviated filing
procedure and formula would be used by a public utility in lieu of a
more comprehensive rate filing under 35.13 of this part concerning
changes in rate schedules.
(b) Applicability. (1) Except as provided in paragraph (b)(2), and
(b)(3) of this section, a public utility may use the abbreviated filing
procedure and formula in this section to adjust its rates to reflect the
decrease in the Federal corporate income tax rate.
(2) If a public utility has a rate case currently pending before the
Commission in which the change in the Federal corporate income tax rate
can be reflected, the public utility may not use this section to adjust
its rates.
(3) If a public utility has a rate accepted for filing by the
Commission that provides for the automatic adjustment of its rates to
reflect, without prior hearing, increases or decreases in the Federal
corporate income tax rate, it may not use this section to adjust its
rates.
(c) Formula for rate adjustment to reflect changes in Federal
corporate income tax rate. (1) For purposes of establishing a rate
reduction designed to reflect a percentage decrease in the Federal
corporate income tax rate, a public utility must use the following
formula:
where:
D=Income taxes allowable included in rates in effect on the date that
the change in Federal corporate income tax rate becomes effective.
E=Composite income tax factor using the new Federal corporate income
tax rate and the effective state income tax rate from the rate
application docket upon which existing rates are based. This is
computed by the following formula:
F=Composite income tax factor using the old Federal corporate income
tax rate. This is computed by the same formula used for determining E.
I=Test period billing units from rate application docket upon which
the rates that are in effect are based. Absent extraordinary
circumstances a public utility must use demand billing units. This
information is usually available in Statement BG of the rate application
and/or settlement or compliance documents.
K=Required rate reduction per billing demand unit.
(2) A separate rate calculation using this formula is required for
each type of service a public utility provides and for each individual
customer group thereunder.
(d) Abbreviated filing requirements for rate schedule changes due to
reductions in the Federal corporate income tax rate. Any public utility
that files a rate schedule change providing for a rate decrease that is
based on a change in the Federal corporate income tax rate must submit
with its finding only the information required in paragraphs (d)(1) and
(d)(2) of this section.
(1) General information. Any public utility filing under this
section must file the following general information:
(i) A list of documents submitted with the rate schedule change;
(ii) The date on which the public utility proposes to make the rate
schedule effective;
(iii) The names and addresses of persons to whom a copy of the rate
schedule change has been mailed;
(iv) A brief description of the rate schedule change;
(v) A statement of the reasons for the rate schedule change;
(vi) A showing that all requisite agreement to the rate schedule
change, or to the filing of the rate schedule change, including any
agreement required by contract, has in fact been obtained;
(vii) Computations showing the application of each step of the
formula methodology;
(viii) Supporting workpapers including all intermediate calculations
necessary under the formula with narrative explanation where
appropriate, and details on the derivation of all formula inputs
together with copies of all statements and workpapers used as source
documents;
(ix) Detailed explanations of all adjustments to data shown on
supporting statements (e.g., adjustments to exclude South Georgia
provisions from Federal income taxes allowable);
(x) Form of notice stating that the rates are to be effective July 1,
1987;
(xi) Revised rate sheets reflecting the proposed rate reduction for
every rate schedule to which the reduction is proposed;
(xii) A list of any customers or services for which no reduction is
proposed and the reasons for not reducing these rates; and
(xiii) A form of notice suitable for publication in the Federal
Register in accordance with 35.8 of this part.
(2) Information relating to the effect of the rate schedule change.
Any public utility filing under paragraph (d)(1) of this section must
also file the following information or materials:
(i) A table or statement comparing sales and services and revenues
from sales and services under the rate schedule to be superseded or
supplemented and under the rate schedule change, by applying the
components of each such rate schedule to the billing determinants for
each class of service, for each customer, and for each delivery point or
set of delivery points that constitute a billing unit:
(A) For each of the twelve most recent available months prior to the
effective date of the rate schedule change; and
(B)(1) If in the immediately preceding rate change filing the public
utility filed Statements BG and BH under paragraph (h) of 35.13 of this
part for Period I, for each of the twelve months of Period I; and
(2) If in the immediately preceding rate change filing Period II is
the test period, for each of the twelve months of Period II.
(ii) A comparison of the rate schedule change and the public
utility's other rates for similar wholesale services.
(e) Hearing issues. (1) The only issues that may be raised by
Commission staff or any intervenor under the procedures established in
this section are:
(i) Whether or not the public utility may file under this section,
(ii) Whether or not the formula in 35.27 has been properly applied,
and
(iii) Whether or not the correct information was used in that
formula.
(2) Any other issue raised will be severed from the proceeding and
dismissed without prejudice.
(f) Effective date. Rates proposed under the filing are to have a
July 1, 1987 effective date. A public utility that chooses to use the
abbreviated filing procedure and formula contained in this section must
make its filing according to the following schedule:
(g) Refunds. A utility filing under this procedure must refund to
its customers the difference between the rates unadjusted for the tax
change and the new rate that reflects the tax adjustment. These refunds
will be made without interest.
(h) Waiver of filing fees. Any filing under this section may be
filed without the filing fee required by 35.0 of this part.
(Order 475, 52 FR 24993, July 2, 1987)
18 CFR 35.27 Subpart D -- Procedures and Requirements for Public
Utility Sales of Power to Bonneville Power Administration Under
Northwest Power Act
Authority: Federal Power Act, 16 U.S.C. 792-828c (1976 and Supp. IV
1980) and Pacific Northwest Electric Power Planning and Conservation
Act, 16 U.S.C. 830-839h (Supp. IV (1980)).
18 CFR 35.30 General provisions.
(a) Applicability. This subpart applies to any sales of electric
power subject to the Commission's jurisdiction under Part II of the
Federal Power Act from public utilities to the Administrator of the
Bonneville Power Administration (BPA) at the average system cost (ASC)
of that utility's resources (electric power generation by the utility)
pursuant to section 5(c) of the Pacific Northwest Electric Power
Planning and Conservation Act, 16 U.S.C. 830-839h. The ASC is determined
by BPA in accordance with 18 CFR part 301.
(b) Effectiveness of rates. (1) During the period between the date
of BPA's determination of ASC and the date of the final order issued by
the Commission, the utility may charge the rate based on the ASC
determined by BPA, subject to 35.31(c) of this part.
(2) Except as otherwise provided under this section, the ASC ordered
by the Commission will be deemed in effect from the beginning of the
relevant exchange period, as defined in 301.1(b)(95) of this chapter.
For any initial exchange period after the Commission approves a new ASC
methodology, the ASC will be effective retroactively under this
paragraph only if the utility files its new ASC within the time allowed
under BPA procedures. Any utility that files a revised ASC with BPA in
accordance with this paragraph must promptly file with the Commission a
notice of timely filing of the new ASC.
(c) Filing requirements. Within 15 business days of the date of
issuance of the BPA report on a utility's ASC, the utility must file
with the Commission the ASC determined by BPA, the BPA written report,
the utility's ASC schedules, material necessary to comply with 18 CFR
35.13(c), and any other material requested by the Commission or its
staff.
(Order 337, 48 FR 46976, Oct. 17, 1983, as amended by Order 400, 49
FR 39300, Oct. 5, 1984)
18 CFR 35.31 Commission review.
(a) Procedures. Filings under this subpart are subject to the
procedures applicable to other filings under section 205 of the Federal
Power Act, as the Commission deems appropriate.
(b) Commission standard. With respect to any filing under this
subpart, the Commission will detemine whether the ASC set by BPA for the
applicable exchange period was determined in accordance with the ASC
methodology set forth at 18 CFR 301.1. If the ASC is not in accord with
the methodology, the Commission will order that BPA amend the ASC to
conform with the methodology. If the ASC is in accord with the
methodology, the rate is deemed just and reasonable.
(c) Refunds and adjustments. (1) Any ASC-based rate charged by a
public utility under this subpart pending Commission order is subject to
refund or to adjustment that increases the ASC-based rate.
(2) Any interest on refunds ordered by the Commission under this
subpart is computed in accordance with 18 CFR 35.19a. Interest on any
increase ordered by the Commission will be at the rate charged to BPA by
the U.S. Treasury during that period, unless the Commission orders
another interest rate.
(Approved by the Office of Management and Budget under control number
1902-0096)
(Order 337, 48 FR 46976, Oct. 17, 1983, as amended at 49 FR 1177,
Jan. 10, 1984)
18 CFR 35.31 PART 41 -- ACCOUNTS, RECORDS, AND MEMORANDA
Sec.
41.1 Notice of deficiencies.
41.2 Response to notification.
41.3 Facts and argument.
41.4 Form and style.
41.5 Verification.
41.6 Determination.
41.7 Assignment for oral hearing.
41.8 Burden of proof.
41.10 Examination of accounts.
41.11 Report of certification.
41.12 Qualifications of accountants.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); E.O. 12009, 3 CFR 142 (1978); Federal Power Act, 16
U.S.C. 791a-828c (1982); Public Utility Regulatory Policies Act, 16
U.S.C. 2601-2645 (1982), unless otherwise noted.
Source: Order 141, 12 FR 8500, Dec. 19, 1947, unless otherwise
noted.
Cross Reference: For rules of practice and procedure, see part 385
of this chapter.
18 CFR 35.31 Adjustments of Accounts and Reports
18 CFR 41.1 Notice of deficiencies.
If, as the result of an examination by a representative of the
Commission of the accounts of a person subject to the act and to the
Commission's accounting requirements, or of an examination of any
statement or report submitted by such person, it appears that the
accounts, or any books or records pertaining to or in support thereof,
are not being kept and maintained as required by the Commission, or that
the statements or reports prepared and submitted are not in proper form,
the failure or deficiency will be called to the attention of such person
either formally or informally as the circumstances appear to warrant.
18 CFR 41.2 Response to notification.
If, as the result of such formal or informal notice, the matter is
not adjusted within the time fixed by said notice, or within a
reasonable time in case no date is specified, or if there is a
disagreement between such person and the Commission or its
representative respecting the application or interpretation of the act
or requirements of the Commission with respect to the matter at issue,
such person will be requested to advise the Commission in writing within
a time to be specified whether it consents to the disposition of the
questions involved under the shortened procedure provided in this part.
18 CFR 41.3 Facts and argument.
If the person consents to the matter being handled under such
shortened procedure, the person and any other parties interested,
including representatives of the Commission, shall submit to the
Commission, within 30 days after the receipt of notice from the
Commission to do so, a memorandum of the facts and, separately stated,
of the argument relied upon, to sustain the position taken respecting
the matter at issue together with copies in sufficient number to enable
the Commission to retain three copies for its own use and make service
in accordance with 385.2010 of this chapter, upon all parties
designated in said notice. Twenty days will be allowed in which to file
a reply by any party who filed an original memorandum.
(Order 141, 12 FR 8500, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 41.4 Form and style.
Each copy of such memorandum must be complete in itself. All
pertinent data should be set forth fully, and each memorandum should set
out the facts and argument as prescribed for briefs in 385.706 of this
chapter.
(Order 141, 12 FR 8500, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 41.5 Verification.
The facts stated in the memorandum must be sworn to by persons having
knowledge thereof, which latter fact must affirmatively appear in the
affidavit. Except under unusual circumstances, such persons should be
those who would appear as witnesses if hearing were had to testify as to
the facts stated in the memorandum.
18 CFR 41.6 Determination.
If no formal hearing is had the matter in issue will be determined by
the Commission on the basis of the facts and arguments submitted.
18 CFR 41.7 Assignment for oral hearing.
In case consent to the shortened procedure is not given, or if at any
stage of the proceeding prior to the submission of the case to the
Commission any party in interest requests a hearing, the proceeding will
be assigned for hearing as provided for by subpart E of part 385 of this
chapter. The Commission may also in its discretion set the proceeding
for hearing on its own motion at any stage thereof.
(Order 141, 12 FR 8500, Dec. 19, 1947, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 41.8 Burden of proof.
The burden of proof to justify every accounting entry shall be on the
person making, authorizing, or requiring such entry.
18 CFR 41.8 Certification of Compliance With Accounting Regulations
18 CFR 41.10 Examination of accounts.
(a) All Major and Nonmajor public utilities and licensees not
classified as Class C or Class D prior to January 1, 1984 shall secure,
for the year 1968 and each year thereafter until December 31, 1975, the
services of an independent certified public accountant, or independent
licensed public accountant, certified or licensed by a regulatory
authority of a State or other political subdivision of the United
States, to test compliance in all material respects of those schedules
as are indicated in the General Instructions set out in the Annual
Report, Form No. 1, with the Commission's applicable Uniform System of
Accounts and published accounting releases. The Commission expects that
identification of questionable matters by the independent accountant
will facilitate their early resolution and that the independent
accountant will seek advisory rulings by the Commission on such items.
This examination shall be deemed supplementary to periodic Commission
examinations of compliance.
(b) Beginning January 1, 1976, and each year thereafter, only
independent certified public accountants, or independent licensed public
accountants who were licensed on or before December 31, 1970, will be
authorized to conduct annual audits and to certify to compliance in all
material respects, of those schedules as are indicated in the General
Instructions set out in the Annual Report, Form No. 1, with the
Commission's applicable Uniform System of Accounts, published accounting
releases and all other regulatory matters.
(Order 462, 37 FR 26005, Dec. 7, 1972, as amended by Order 390, 49 FR
32505, Aug. 14, 1984)
18 CFR 41.11 Report of certification.
Each Major and Nonmajor public utility or licensee not classified as
Class C or Class D prior to January 1, 1984 shall file with the
Commission a letter or report of the independent accountant certifying
approval, together with or within 30 days after the filing of the Annual
Report, Form No. 1, covering the subjects and in the form prescribed in
the General Instructions of the Annual Report. The letter or report
shall also set forth which, if any, of the examined schedules do not
conform to the Commission's requirements and shall describe the
discrepancies that exist. The Commission shall not be bound by a
certification of compliance made by an independent accountant pursuant
to this paragraph.
(Sec. 304, 49 Stat. 855; 16 U.S.C. 825c)
(Order 356, 33 FR 143, Jan. 5, 1968, as amended by Order 390, 49 FR
32505, Aug. 14, 1984)
18 CFR 41.12 Qualifications of accountants.
The Commission will not recognize any certified public accountant or
public accountant through December 31, 1975, who is not in fact
independent. Beginning January 1, 1976, and each year thereafter, the
Commission will recognize only independent certified public accountants,
or independent licensed public accountants who were licensed on or
before December 31, 1970, who are in fact independent. For example, an
accountant will not be considered independent with respect to any person
or any of its parents or subsidiaries in whom he has, or had during the
period of report, any direct financial interest. The Commission will
determine the fact of independence by considering all the relevant
circumstances including evidence bearing on the relationships between
the accountant and that person or any affiliate thereof.
(Order 462, 37 FR 26006, Dec. 7, 1972)
18 CFR 41.12 PART 45 -- APPLICATION FOR AUTHORITY TO HOLD INTERLOCKING
POSITIONS
Sec.
45.1 Applicability; who must file.
45.2 Positions requiring authorization.
45.3 Time of filing application.
45.4 Supplemental applications.
45.5 Supplemental information.
45.6 Termination of authorization.
45.7 Form of application; number of copies.
45.8 Contents of application; filing fee.
45.9 Automatic authorization of certain interlocking positions.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978);
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 141, 12 FR 8501, Dec. 19, 1947, unless otherwise
noted.
Cross References: For rules of practice and procedure, see part 385
of this chapter. For forms under rules of practice and regulations
under the Federal Power Act, see part 131 of this chapter.
18 CFR 45.1 Applicability; who must file.
(a) This part applies to any person seeking to hold the following
interlocking positions:
(1) Officer or director of more than one public utility;
(2) Officer or director of a public utility and of any bank, trust
company, banking association, or firm that is authorized by law to
underwrite or participate in the marketing of securities of a public
utility; or
(3) Officer or director of a public utility and of any company
supplying electrical equipment to a public utility.
(b) Any person seeking to hold any interlocking position described in
45.2 of this chapter must do the following:
(1) Apply for Commission authorization under 45.8 of this chapter;
or
(2) If qualified, comply with the requirements for automatic
authorization under 45.9 of this chapter.
(Order 446, 51 FR 4904, Feb. 10, 1986)
18 CFR 45.2 Positions requiring authorization.
(a) The positions subject to this part shall include those of any
person elected or appointed to perform the duties or functions
ordinarily performed by a president, vice president, secretary,
treasurer, general manager, comptroller, chief purchasing agent,
director or partner, or to perform any other similar executive duties or
functions, in any corporation1040 within the purview of section 305(b)
of the Act. With respect to positions not herein specifically mentioned
which applicant holds and which are invested with executive authority,
applicant shall state in the application the source of such executive
authority, whether by bylaws, action of the board of directors, or
otherwise.
(b) Corporations1 within the purview of section 305(b) of the Act
include:
(1) Any public utility under the Act, which means any person who owns
or operates facilities for the transmission of electric energy in
interstate commerce, or any person who owns or operates facilities for
the sale at wholesale of electric energy in interstate commerce.
(2) Any bank, trust company, banking association, or firm that is
authorized by law to underwrite or participate in the marketing of
public utility securities; this includes any corporation when so
authorized whether or not same may also be a public utility and/or a
holding company. (See 12 U.S.C. 378)
(3) Any company that supplies electrical equipment to a public
utility in which applicant seeks authorization to hold a position,
whether the supplying company be a manufacturer, or dealer, or one
supplying electrical equipment pursuant to a construction, service,
agency, or other contract.
(c) Regardless of any action which may have been taken by the
Commission upon a previous application under section 305(b) of the Act,
an application for approval under such section is required with
reference to any position or positions not previously authorized which
are within the purview of said section.
0401Corporation means any corporation, joint-stock 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 municipalities
as defined in the Federal Power Act (sec. 3, 49 Stat. 838; 16 U.S.C.
796).
18 CFR 45.3 Time of filing application.
(a) Anticipatory application. An application may be made in
anticipation of election or appointment to a position or positions
within the purview of section 305(b) of the Act.
(b) Application after election or appointment. Section 305(b) of the
Act provides that the holding of positions within the purview of that
section shall be unlawful unless the holding shall have been authorized
by order of the Commission. Nothing in this part shall be construed as
authorizing the holding of positions prior to the order of the
Commission on application therefor. Applications shall be filed within
30 days after election or appointment to any positions within the
purview of section 305(b) of the Act.
18 CFR 45.4 Supplemental applications.
(a) New positions. In the event of a change or changes in the
information set forth in an application, by the applicant's election or
appointment to another position or other positions in corporations
within the purview of section 305(b) of the Act, the application shall
be supplemented by the applicant's setting forth all the data with
respect to the new position or positions in accordance with the
requirements of this part.
(b) Old positions. After applicant has been authorized to hold a
particular position, further application in connection with each
successive term so long as he continues in uninterrupted tenure of such
position will not be required except as ordered by the Commission. If
the term of office or the holding of any position for which
authorization has been given shall be interrupted and the applicant
shall subsequently be reelected or reappointed thereto, further
authorization will be required.
18 CFR 45.5 Supplemental information.
(a) Required by Commission. Applicants under this part shall upon
request of the Commission and within such time as may be allowed,
supplement any application or any supplemental application with any
information required by the Commission.
(b) Notice of changes. In the event of the applicant's resignation,
withdrawal, or failure of reelection or appointment in respect to any of
the positions for which authorization has been granted by the
Commission, or in the event of any other material or substantial change
therein, the applicant shall within 30 days after any such change
occurs, give notice thereof to the Commission setting forth the position
corporation, and date of termination therewith, or other material or
substantial change.
(c) Reports. All persons holding positions by authorization of the
Commission under section 305(b) of the Act may be required to file such
periodic or special reports as the Commission may deem necessary.
18 CFR 45.6 Termination of authorization.
(a) By the Commission. Orders of authorization under section 305(b)
of the Act are subject to revocation by the Commission after due notice
to applicant and opportunity for hearing. In any such proceeding the
burden of proof shall be upon the applicant to show that neither public
nor private interests will be adversely affected by the holding of such
positions.
(b) Without action of the Commission. Whenever a person shall cease
to hold a position theretofore authorized to be held by the Commission
or such position shall cease to be within the purview of section 305(b)
of the Federal Power Act, the Commission's authorization to hold such
position shall terminate without further action by the Commission. If
upon such termination of authorization as aforesaid, such person does
not continue to hold at least two positions authorized and then
requiring authorization pursuant to said section 305(b) of the Act, all
authorization theretofore given by the Commission shall thereupon
terminate.
18 CFR 45.7 Form of application; number of copies.
An original and two copies of each application, supplemental
application, statement of supplemental information, notice of change and
report required to this part, together with one additional copy for each
interested State commission, shall be filed with the Commission. Each
original shall be dated, signed by the applicant and verified under oath
in accordance with 131.60 of this chapter. Each copy shall bear the
date and signature that appear on the original and shall be complete in
itself, but the signature in the copies may be stamped or typed and the
notarial seal may be omitted. The application shall conform to subpart
T of part 385 of this chapter.
(Order 141, 12 FR 8501, Dec. 19, 1947, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 45.8 Contents of application; filing fee.
Each application shall be accompanied by the fee prescribed in part
381 of this chapter and shall state the following:
(a) Identification of applicant. (1) Full name, business address and
state of residence.
(2) Major business or professional activity.
(3) If former application or applications under section 305(b) of the
Act have been made by the applicant, give date and docket number of the
last application filed.
(b) List of positions within the purview of section 305(b) of the Act
for which authorization is sought. (Indicate by asterisk positions
which were the subjects of previous authorizations.)
(c) Data as to positions with each public utility mentioned in
paragraph (b) of this section. (The format should be adapted to the
information submitted, in keeping with completeness and conciseness. In
the case of public utilities of the same holding company system, brevity
will generally be promoted by submitting the information for all of the
utilities involved under each subsection progressively in the order of
the subsections, utilizing tables when feasible.)
(1) Name of utility.
(2) Date elected or appointed, or anticipated date of election or
appointment, to each position not previously authorized.
(3) Names of officers and directors; number of vacancies, if any, on
Board of Directors.
(4) Description of applicant's duties: Approximate amount of time
devoted thereto; and, if applicant seeks authorization as a director,
the percentage of directors meetings held during the past 12 months that
were attended by the applicant.
(5) All other professional, contractual, or business relationships of
applicant with the public utility, either directly or through other
corporations or firms.
(6) Extent of applicant's direct or indirect ownership, control of,
or beneficial interest in the public utility or the securities thereof.
If ownership or interest is held in a name other than that of applicant,
state name and address of the holder.
(7) Extent of applicant's indebtedness to the public utility, how and
when incurred, and consideration therefor.
(8) All money or property received by applicant from the public
utility or any affiliate (i) during the past 12 months, and expected
during the ensuing 12 months, or (ii) during the public utility's most
recently ended fiscal year, and expected during the public utility's
current fiscal year, or (iii) during the past and current calendar
years, whether for services, reimbursement for expenses, or otherwise.
Specify in detail the amount thereof and the basis therefor. If
applicant's compensation for services to the public utility is not paid
directly by the public utility, give name of the corporation that does
pay same, the amount allocated or allocable to the public utility or any
affiliate, and the basis or reason for such allocation.
(9) Whether during the past 5 years the public utility or any
affiliate thereof or any security holders of either have commenced any
suit against the officers or directors thereof for alleged waste,
mismanagement or violation of duty, to which suit applicant was a party
defendant. If so, give date of commencement of suit, court in which
commenced, and present status.
(d) Data as to positions with each bank, trust company, banking
association or firm, mentioned in paragraph (b) of this section, that is
authorized by law to underwrite or participate in the marketing of
securities of a public utility. (The applicant shall use a separate
sheet for each corporation.)
(1) Name of corporation and address of principal place of business.
(2) Positions which applicant holds or seeks authorization to hold
therein and when and by whom elected or appointed to each position.
(3) Description of applicant's duties in each position and the
approximate amount of time devoted thereto, and, if applicant seeks
authorization as director, the percentage of directors meetings held
during the past 12 months that were attended by the applicant.
(4) Extent of applicant's direct or indirect ownership, or control
of, or beneficial interest in, the company or in the securities thereof,
including common stock, preferred stock, bonds, or other securities. If
such ownership or interest is held in a name other than that of
applicant, state name and address of such holder.
(5) All money or property received by applicant from the company (i)
during the past 12 months, and expected during the ensuing 12 months, or
(ii) during the company's most recently ended fiscal year, and expected
during the company's current fiscal year, or (iii) during the past and
current calendar years, whether for services, reimbursement for
expenses, or otherwise. Specify in detail the amount thereof and the
basis therefor.
(6) Names and titles of directors, officers, or partners.
(7) Whether the corporation is now engaged in underwriting or
participating in the marketing of the securities of a public utility;
if so, to what extent.
(8) Whether the corporation, during applicant's connection therewith,
has underwritten or participated in the marketing of the security issue
of any public utility with which applicant was also connected; if so,
the details with respect to every such transaction that occurred during
the past 36 months.
(9) (If the answer to paragraph (d)(7) of this section is in the
negative.) Give excerpts from the charter, declaration of trust, or
articles of partnership that authorize the underwriting or participating
in the marketing of securities of a public utility.
(10) (If the answer to paragraph (d)(7) of this section is in the
negative.) Give general requirements of and appropriate reference to,
the laws of the State of organization and of States in which corporation
is doing business or has qualified to do business, with which it must
comply in order to engage in the business of underwriting or
participating in the marketing of the securities of a public utility.
(11) What steps, if any, have been taken to comply with laws
mentioned in paragraph (d)(10) of this section.
(12) In lieu of paragraphs (d)(9), (10), and (11) of this section, an
opinion by counsel to the same effect and including the information in
respect thereto may be filed with the application.
(13) Whether the corporation has registered with the Securities and
Exchange Commission; if so, when and under what section of what act.
(e) Data as to positions with each company, mentioned in paragraph
(b) of this section, supplying electrical equipment to a public utility
in which applicant holds a position. (Applicant shall use a separate
sheet for each company.)
(1) Name of company and address of principal place of business.
(2) Positions which applicant holds or seeks authorization to hold
therein and when and by whom elected or appointed to each position.
(3) Description of applicant's duties in each position and
approximate amounts of time devoted thereto, and, if applicant seeks
authorization as director, the percentage of directors meetings held
during the past 12 months that were attended by the applicant.
(4) Names and titles of directors or partners.
(5) Name of each public utility, with which applicant holds or seeks
authorization to hold a position, to which the company supplies
electrical equipment; the frequency of such transactions; the
approximate annual dollar volume of such business; and the type of
equipment supplied.
(6) Nature of relationship between the company supplying electrical
equipment and the public utility:
(i) Whether company manufactures such electrical equipment or is a
dealer therein.
(ii) Whether company supplies electrical equipment to the public
utility pursuant to construction, service, agency, or other contract
with the public utility or an affiliate thereof, and, if so, furnish
brief summary of the terms of such contract.
(7) Extent of applicant's direct or indirect ownership, or control
of, or beneficial interest in, the company or in the securities thereof,
including common stock, preferred stock, bonds, or other securities. If
such ownership or interest is held in a name other than that of
applicant, state name and address of such holder.
(8) All money or property received by applicant from the company (i)
during the past 12 months, and expected during the ensuing 12 months, or
(ii) during the company's most recently ended fiscal year, and expected
during the company's current fiscal year, or (iii) during the past and
current calendar years, whether for services, reimbursement for
expenses, or otherwise. Specify in detail the amount thereof and the
basis therefor.
(f) Data as to positions with public utility holding companies. (Do
not include here data as to corporations listed in paragraph (b) of this
section which are also holding companies. A holding company as herein
used means any corporation which directly or indirectly owns, controls,
or holds with power to vote, 10 per centum or more, of the outstanding
voting securities of a public utility.)
(1) Name of holding company and address of principal place of
business.
(2) Positions which applicant holds therein, when and by whom elected
or appointed to each position.
(3) Extent of applicant's direct or indirect ownership, or control
of, or beneficial interest in, the holding company or in the securities
thereof, including common stock, preferred stock, bonds, or other
securities. If such ownership or interest is held in a name other than
that of applicant, state name and address of such holder.
(4) All money or property received by applicant from the holding
company (i) during the past 12 months, and expected during the ensuing
12 months, or (ii) during the holding company's most recently ended
fiscal year, and expected during the holding company's current fiscal
year, or (iii) during the past and current calendar years, whether for
services, reimbursement for expenses, or otherwise. Specify in detail
the amount thereof and the basis therefor.
(g) Positions with all other corporations. (Do not include here data
that have been filed within the past 12 months in FERC-561, pursuant to
part 46 of this chapter, or data as to any corporations listed in
paragraph (b) or (f) of this section.)
(1) All other corporations and positions therein, including briefly
the information required in parallel columns as below:
(2) Any corporate, contractual, financial, or business relationships
between any of the corporations listed in paragraph (g)(1) of this
section and any of the public utilities listed in paragraph (b) of this
section.
(h) Data as to the public utility holding company system. The names
of the public utility holding company systems of which each public
utility listed in paragraph (b) of this section is a part, with a chart
showing the corporate relationships existing between and among the
corporations within the holding company systems.
(Order 246, 27 FR 4912, May 25, 1962, as amended by Order 427, 36 FR
5598, Mar. 25, 1971; Order 374, 49 FR 20479-20480, May 15, 1984; Order
435, 50 FR 40358, Oct. 3, 1985)
Cross Reference: For rules and regulations of the Securities and
Exchange Commission, see 17 CFR, chap. II.
18 CFR 45.9 Automatic authorization of certain interlocking positions.
(a) Applicability. Subject to paragraphs (b) and (c) of this
section, the Commission authorizes any officer or director of a public
utility to hold the following interlocking positions:
(1) Officer or director of one or more other public utilities if the
same holding company owns, directly or indirectly, that percentage of
each utility's stock (of whatever class or classes) which is required by
each utility's by-laws to elect directors;
(2) Officer or director of two public utilities, if one utility is
owned, wholly or in part, by the other and, as its primary business,
owns or operates transmission or generating facilities to provide
transmission service or electric power for sale to its owners; and
(3) Officer or director of more than one public utility, if such
officer or director is already authorized under this part to hold
different positions as officer or director of those utilities where the
interlock involves affiliated public utilities.
(b) Conditions of authorization. Any person authorized to hold
interlocking positions under this section must submit, not later than 30
days after assuming the duties of the position, an informational report
in accordance with paragraph (c) of this section, unless that person is
already authorized to hold interlocking positions of the type governed
by this section.
(c) Informational report. An informational report required under
paragraph (b) of this section must state:
(1) The full name and business address of the person required to
submit this report;
(2) The names of all public utilities with which the person holds or
will hold the positions of officer or director and a description of
those positions;
(3) The names of any entity, other than those listed in paragraph
(c)(2) of this section, of which the person is an officer or director
and a description of those positions; and
(4) An explanation of the corporate relationship between or among the
public utilities listed in paragraph (c)(2) of this section which
qualifies the person for automatic authorization under this section.
(Order 446, 51 FR 4905, Feb. 10, 1986)
18 CFR 45.9 PART 46 -- PUBLIC UTILITY FILING REQUIREMENTS AND FILING
REQUIREMENTS FOR PERSONS HOLDING INTERLOCKING POSITIONS
Sec.
46.1 Purpose.
46.2 Definitions.
46.3 Purchaser list.
46.4 General rule.
46.5 Covered entities.
46.6 Contents of the written statement and procedures for filing.
Authority: Federal Power Act, as amended, (16 U.S.C. 792-828c);
Public Utility Regulatory Policies Act of 1978, 16 U.S.C. 2601-2645;
Department of Energy Organization Act, (42 U.S.C. 7101-7352); E.O.
12009, 3 CFR 142 (1978).
Source: 45 FR 23418, Apr. 7, 1980, unless otherwise noted.
18 CFR 46.1 Purpose.
The purpose of this part is to implement section 305(c) of the
Federal Power Act, as amended by section 211 of the Public Utility
Regulatory Policies Act of 1978.
(Order 67, 45 FR 3569, Jan. 18, 1980)
18 CFR 46.2 Definitions.
For the purpose of this part:
(a) Public utility has the same meaning as in section 201(e) of the
Federal Power Act and further includes any company which is part of a
holding company system which includes a registered holding company
unless no company in such system is an electric utility within the
meaning of section 3 of the Federal Power Act. Such term does not
include any rural electric cooperative which is regulated by the Rural
Electrification Administration of the Department of Agriculture or any
other entities covered in section 201(f) of the Federal Power Act.
(b) The following terms have the same meaning as in the Public
Utility Holding Company Act of 1935:
(1) Holding company system; and
(2) Registered holding company.
(c) Purchaser means any individual or corporation within the meaning
of section 3 of the Federal Power Act who purchases electric energy from
a public utility. Such term does not include the United States or any
agency or instrumentality of the United States or any rural electric
cooperative which is regulated by the Rural Electrification
Administration of the Department of Agriculture.
(d) Control and controlled mean the possession, directly or
indirectly, of the power to direct the management or policies of an
entity whether such power is exercised through one or more intermediary
companies or pursuant to an agreement, written or oral, and whether such
power is established through ownership or voting of securities, or
common directors, officers, or stockholders, or voting trusts, holding
trusts, or debt holdings, or contract, or any other direct or indirect
means. A rebuttable presumption that control exists arises from the
ownership or the power to vote, directly or indirectly, ten percent
(10%) or more of the voting securities of such entity.
(e) Entity means any firm, company, or organization including any
corporation, joint-stock 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.
Such term does not include municipality as defined in section 3 of the
Federal Power Act and does not include any Federal, State, or local
government agencies or any rural electric cooperative which is regulated
by the Rural Electrification Administration of the Department of
Agriculture.
(f) Electrical equipment means any apparatus, device, integral
component, or integral part used in an activity which is electrically,
electronically, mechanically, or by legal prescription necessary to the
process of generation, transmission, or distribution of electric energy.
1
(g) Produces or supplies means any transaction including a sale,
lease, sale-leaseback, consignment, or any other transaction in which an
entity provides electrical equipment, coal, natural gas, oil, nuclear
fuel, or other fuel to any public utility either directly or through an
entity controlled by such entity.
(h) Appointee means any person appointed on a temporary or permanent
basis to perform any duties or functions described in 46.4(a).
(i) Representative means any person empowered, through oral or
written agreement, to transact business on behalf of an entity and any
person who serves as an advisor regarding policy or management decisions
of the entity. The term does not include attorneys, accountants,
architects, or any other persons who render a professional service on a
fee basis.
1Guidance in applying the definition of electrical equipment may be
obtained by examining the items within the following accounts described
in part 101, title 18 of the Code of Federal Regulations:
Boiler/Reactor plant equipment (Accounts 312 and 322); Engines and
engine driven generators (313); Turbogenerator units (314 and 323);
Accessory electrical equipment (315, 324, 334 and 345); Miscellaneous
power plant equipment (316, 325, 335 and 346); Water wheels, turbines
and generators (333); Fuel holders, producers, and accessories (342);
Prime movers (343); Generators (344); Station equipment (353 and 362);
Poles, towers and fixtures (354, 355 and 364); Overhead conductors and
devices (356 and 365); Underground conduit (357 and 366); Underground
conductors and devices (358 and 367); Storage battery equipment (363);
Line transformers (368); Services (369); Meters (370); Installation
on customers' premises (371); Street lighting and signal systems (373);
Leased property on customers' premises (372); and Communication
equipment (397). Excepted from these accounts, are vehicles,
structures, foundations, settings, and services.
18 CFR 46.3 Purchaser list.
(a) Compilation and filing list. On or before January 31 of each
year, each public utility shall complile a list of the purchasers
described in paragraph (b) of this section and shall identify each
purchaser by name and principal business address. An original and two
(2) copies of such list shall be filed with the Commission by the public
utility and the list shall be made publicly available through its
principal business office.
(b) Largest purchasers. The list required under paragraph (a) of
this section shall include each purchaser who, during any of the three
(3) preceding calendar years, purchased (for purposes other than resale)
from a public utility one of the twenty (20) largest amounts of electric
energy measured in kilowatt hours sold (for purposes other than resale)
by such utility during such year.
(c) Special rules. If data for actual annual sales (for purposes
other than resale) are not available in the records of the public
utility, the utility may use estimates based on actual data available to
it. If one purchaser maintains several billing accounts with the public
utility, the kilowatt hours purchased in each account of that purchaser
shall be aggregated to arrive at the total for that purchaser.
(d) Notification of largest purchasers. Each public utility shall
notify by January 31 of each year each purchaser which has been
identified on the list of largest purchasers under paragraph (b) of this
section.
(e) Revision of the list. Each public utility relying upon any
estimates for its January 31st filing, shall revise the list compiled
under paragraph (b) of this section no later than March 1 of the year in
which the list was originally filed to reflect actual data not available
to the utility prior to that time. Any revised list shall be filed with
the Commission and made publicly available through the utility's
principal business office no later than March 1. A utility filing a
revised list shall indicate thereon the changes made to the list
previously filed under paragraph (b) of this section. On or before the
filing and publication of the revised list, the public utility shall
notify the newly-listed purchasers and any purchasers whose names were
removed from the list.
(Order 67, 45 FR 3569, Jan. 18, 1980; 45 FR 6377, Jan. 28, 1980)
18 CFR 46.4 General rule.
A person must file with the Office of the Secretary of the Commission
a written statement in accordance with 46.6, and in the form specified
in 131.31 of this chapter (except that with respect to calendar year
1980, no filings in the form specified in 131.31 is required if such
person has previously filed the statement required for calendar year
1980 in a different form than specified in 131.31), if such person:
(a) Serves for a public utility in any of the following positions: A
director or a chief executive officer, president, vice president,
secretary, treasurer, general manager, comptroller, chief purchasing
agent, or any other position in which such person performs similar
executive duties or functions for such public utility; and
(b) Serves for any entity described in 46.5 in any of the positions
described in paragraph (a) of this section or is a partner, appointee,
or representative of such entity.
(45 FR 23418, Apr. 7, 1980, as amended by Order 140, 46 FR 22181,
Apr. 16, 1981)
18 CFR 46.5 Covered entities.
Entities to which the general rule in 46.4(b) applies are the
following:
(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 engaged in the business of
providing financial services or credit, a mutual savings bank, or a
savings and loan association;
(b) Any entity which is authorized by law to underwrite or
participate in the marketing of securities of a public utility;
(c) Any entity 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 entity specified in 46.3;
(e) Any entity referred to in section 305(b) of the Federal Power
Act; and
(f) Any entity which is controlled by any entity referred to in this
section.
18 CFR 46.6 Contents of the written statement and procedures for
filing.
Each person required to file a written statement under the general
rule in 46.4 shall comply with the following requirements:
(a) Each person shall provide the following information: full name
and business address; identification of the public utilities and the
covered entities in which such person holds executive positions
described in 46.4; and identification of the interlock described in
46.4;
(b) If the interlock is between a public utility and an entity
described in 46.5(c), which produces or supplies electrical equipment
for use of such public utility, such person shall provide the following
information:
(1) The aggregate amount of revenues received by such entity from
producing or supplying electrical equipment to such public utility in
the calendar year specified in paragraph (d) of this section, rounded up
to the nearest $100,000; and
(2) The nature of the business relationship between such public
utility and such entity.
(c) If the person is authorized by the Commission to hold the
positions of officer or director in accordance with part 45, such person
shall identify the authorization by docket number and shall give the
date of authorization.
(d)(1) Each person shall file an original and two copies of such
written statement with the Office of Secretary of the Commission on or
before April 30 of each year immediately following the calendar year
during any portion of which such person held a position described in
46.4. The original of such statement shall be dated, signed by such
person, and verified under oath in accordance with 131.60 of this
chapter. Each copy shall bear the date that appeared on the original;
the signature may be stamped or typed on the copy, and the notarial seal
may be omitted.
(2) Such statement shall be available to the public during regular
business hours through the Commission's Office of Public Information and
shall be made publicly available through the principal business offices
of the public utility and any entity to which it applies on or before
April 30 of the year the statement was filed with the Commission.
(Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(45 FR 23418, Apr. 7, 1980)
18 CFR 46.6 PART 50 -- FILING OF COMPANY PROCUREMENT POLICIES AND PRACTICES
18 CFR 50.1 Filing of company procurement policies and practices.
Not later than January 1, 1970, each licensee, permittee, and public
utility shall be required to reduce to writing, file with the Commission
in triplicate and make available to any member of the public upon
request a comprehensive statement of its procurement policies and
procedures. Amendments thereto shall likewise be filed and made
available to the public, upon specific request, within 30 days of their
effective dates. Statements of procurement policies and procedures
shall include, but not be limited to, the following:
(a) The objectives of the company in its procurement function.
(b) Policies governing the choice of procurement method (sealed-bid
formal advertising, competitive negotiation, noncompetitive contract
awards, etc.) with specific reference to the following categories:
(1) Equipment.
(2) Materials and supplies.
(3) Construction.
(4) Repair, maintenance and management services.
(5) Research and development.
(c) Extent and nature of public notice of proposed procurements, and
of direct notice to prospective suppliers.
(d) The extent of the competition required. This should include any
limitations to or preferences for suppliers in the utility service
areas.
(e) The method of qualifying the suppliers.
(f) The policy adopted by the utility of putting names on their
bidders list and also under what circumstances names would be removed
from the bidders list.
(g) The company personnel that vendors should contact.
(h) Procedures governing the opening of sealed bids and proposals,
negotiations with bidders or offerors, and criteria for contract award
thereunder.
(i) Policies and procedures with respect to types of contracts
(cost-plus, incentive type, fixed price, etc.).
(j) The circumstances under which negotiations are made without
competition such as for emergencies, repair parts, accessory and
supplemental equipment, matching existing equipment or architectural
design.
(k) Any special procurement policies or restrictions such as those
relating to regional, state or local suppliers, small business
suppliers, procurement from corporate affiliates, and union or nonunion
suppliers.
(l) Any ''Buy American'' policy that the company may adopt.
(m) Policies and procedures, if any, with respect to approval or
control of subcontracts and subcontractors.
(n) Any applicable Federal and state laws and agreements with
employee organizations which might affect the procurement policy.
(Secs. 304, 309, as amended, 49 Stat. 855, 858; 16 U.S.C. 825c,
825h; sec. 16, 52 Stat. 830; 15 U.S.C. 717o)
(Order 386, 34 FR 12825, Aug. 7, 1969)
18 CFR 50.1 SUBCHAPTER C -- ACCOUNTS, FEDERAL POWER ACT
18 CFR 50.1 PART 101 -- UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR PUBLIC UTILITIES AND LICENSEES SUBJECT TO THE PROVISIONS OF THE FEDERAL POWER ACT
18 CFR 50.1 Pt. 101
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978);
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 218, 25 FR 5014, June 7, 1960, as amended by Order
276, 28 FR 14267, Dec. 25, 1963, Order 290, 29 FR 18214, Dec. 23,
1964; 30 FR 484, Jan. 14, 1965; Order 322, 31 FR 7898, June 3, 1966;
Order 343, 32 FR 6678, May 2, 1967; 32 FR 8657, June 16, 1967; Order
354, 32 FR 15671, Nov. 14, 1967; Order 866, 33 FR 10135, July 16,
1968; Order 389, 34 FR 17436, Oct. 29, 1969; Order 393, 34 FR 20269,
Dec. 25, 1969; Order 389A, 35 FR 879, Jan. 22, 1970; Order 393A, 35
FR 5943, Apr. 10, 1970; Order 408, 35 FR 13985, Sept. 3, 1970; Order
419, 36 FR 518, Jan. 14, 1971; Order 420, 36 FR 507, Jan. 14, 1971;
Order 421, 36 FR 3047, Feb. 17, 1971; 36 FR 4386, Mar. 5, 1971;
Order 432, 36 FR 8240, May 1, 1971; Order 434, 36 FR 11431, June 12,
1971; Order 436, 36 FR 15529, Aug. 17, 1971; Order 439, 36 FR 20869,
Oct. 30, 1971; Order 454, 37 FR 14226, July 18, 1972; Order 460, 37
FR 24659, Nov. 18, 1972; Order 469, 38 FR 4248, Feb. 12, 1973; Order
462, 38 FR 4948, Feb. 23, 1973; Order 463, 38 FR 7214, Mar. 19, 1973;
Order 475, 38 FR 6667, Mar. 12, 1973; Order 488, 38 FR 12115, May 9,
1973; Order 486, 38 FR 18873, July 16, 1973; Order 490, 38 FR 23332,
Aug. 29, 1973; Order 486-1, 38 FR 30434, Nov. 5, 1973; Order 473, 39
FR 2469, Jan. 22, 1974; Order 504, 39 FR 6073, Feb. 19, 1974; Order
505, 39 FR 6093, Feb. 19, 1974; Order 505, 39 FR 22417, June 24, 1974;
Order 530, 40 FR 26983, June 26, 1975; Order 549, 41 FR 24993, June
22, 1976; Order 561, 42 FR 9163, Feb. 15, 1977; Order 566, 42 FR
30156, June 13, 1977; Order 567, 42 FR 30613, June 16, 1977; Order 5,
43 FR 15418, Apr. 13, 1978; Order 258, 47 FR 42723, Sept. 29, 1982;
48 FR 32567, 32568, 32570, July 18, 1983; Order 390, 49 FR 32505, Aug.
14, 1984; 50 FR 5744, Feb. 12, 1985; Order 435, 50 FR 40358, Oct. 3,
1985.
Note: Order 141, 12 FR 8503, Dec. 19, 1947, provides in part as
follows:
Prescribing a system of accounts for public utilities and licensees
under the Federal Power Act. The Federal Power Commission acting
pursuant to authority granted by the Federal Power Act, particularly
sections 301(a), 304(a), and 309, and paragraph (13) of section 3,
section 4(b) thereof, and finding such action necessary and appropriate
for carrying out the provisions of said act, hereby adopts the
accompanying system of accounts entitled ''Uniform System of Accounts
Prescribed for Public Utilities and Licensees Subject to the Provisions
of the Federal Power Act,'' and the rules and regulations contained
therein; and It is hereby ordered:
(a) That said system of accounts and said rules and regulations
contained therein be and the same are hereby prescribed and promulgated
as the system of accounts and rules and regulations of the Commission to
be kept and observed by public utilities subject to the jurisdiction of
the Commission and by licensees holding licenses issued by the
Commission, to the extent and in the manner set forth therein;
(b) That said system of accounts and rules and regulations therein
contained shall, as to all public utilities now subject to the
jurisdiction of the Commission and as to all present licensees, become
effective on January 1, 1937, and as to public utilities and licensees
which may hereafter become subject to the jurisdiction of the
Commission, they shall become effective as of the date when such public
utility becomes subject to the jurisdiction of the Commission or on the
effective date of the license;
(c) That a copy of said system of accounts and rules and regulation
contained therein be forthwith served upon each public utility subject
to the jurisdiction of the Commission, and each licensee or permittee
holding a license or permit from the Commission.
This system of accounts supersedes the system of accounts prescribed
for licensees under the Federal Water Power Act; and Order No. 13,
entered November 20, 1922, prescribing said system of accounts, was
rescinded effective January 1, 1937.
Applicability of system of accounts. This system of accounts is
applicable in principle to all licensees subject to the Commission's
accounting requirements under the Federal Power Act, and to all public
utilities subject to the provisions of the Federal Power Act. The
Commission reserves the right, however, under the provisions of section
301(a) of the Federal Power Act to classify such licensees and public
utilities and to prescribe a system of classification of accounts to be
kept by and which will be convenient for and meet the requirements of
each class.
This system of accounts is applicable to public utilities, as defined
in this part, and to licensees engaged in the generation and sale of
electric energy for ultimate distribution to the public.
This system of accounts shall also apply to agencies of the United
States engaged in the generation and sale of electric energy for
ultimate distribution to the public, so far as may be practicable, in
accordance with applicable statutes.
In accordance with the requirements of section 3 of the Act (49 Stat.
839; 16 U.S.C. 796(13)), the ''classification of investment in road and
equipment of steam roads, issue of 1914, Interstate Commerce
Commission'', is published and promulgated as a part of the accounting
rules and regulations of the Commission, and a copy thereof appears as
part 103 of this chapter. Irrespective of any rules and regulations
contained in this system of accounts, the cost of original projects
licensed under the Act, and also the cost of additions thereto and
betterments thereof, shall be determined under the rules and principles
as defined and interpreted in said classification of the Interstate
Commerce Commission so far as applicable.
Cross References: For application of uniform system of accounts to
Class C and D public utilities and licensees, see part 104 of this
chapter. For statements and reports, see part 141 of this chapter.
18 CFR 50.1 Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act
18 CFR 50.1 Definitions
When used in this system of accounts:
1. Accounts means the accounts prescribed in this system of accounts.
2. Actually issued, as applied to securities issued or assumed by the
utility, means those which have been sold to bona fide purchasers for a
valuable consideration, those issued as dividends on stock, and those
which have been issued in accordance with contractual requirements
direct to trustees of sinking funds.
3. Actually outstanding, as applied to securities issued or assumed
by the utility, means those which have been actually issued and are
neither retired nor held by or for the utility; provided, however, that
securities held by trustees shall be considered as actually outstanding.
4. Amortization means the gradual extinguishment of an amount in an
account by distributing such amount over a fixed period, over the life
of the asset or liability to which it applies, or over the period during
which it is anticipated the benefit will be realized.
5. A. Associated (affiliated) companies means companies or persons
that directly, or indirectly through one or more intermediaries,
control, or are controlled by, or are under common control with, the
accounting company.
B. Control (including the terms controlling, controlled by, and under
common control with) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and
policies of a company, whether such power is exercised through one or
more intermediary companies, or alone, or in conjunction with, or
pursuant to an agreement, and whether such power is established through
a majority or minority ownership or voting of securities, common
directors, officers, or stockholders, voting trusts, holding trusts,
associated companies, contract or any other direct or indirect means.
6. Book cost means the amount at which property is recorded in these
accounts without deduction of related provisions for accrued
depreciation, amortization, or for other purposes.
7. Commission, means the Federal Energy Regulatory Commission.
8. Continuing Plant Inventory Record means company plant records for
retirement units and mass property that provide, as either a single
record, or in separate records readily obtainable by references made in
a single record, the following information:
A. For each retirement unit:
(1) The name or description of the unit, or both;
(2) The location of the unit;
(3) The date the unit was placed in service;
(4) The cost of the unit as set forth in Plant Instructions 2 and 3
of this part; and
(5) The plant control account to which the cost of the unit is
charged; and
B. For each category of mass property:
(1) A general description of the property and quantity;
(2) The quantity placed in service by vintage year;
(3) The average cost as set forth in Plant Instructions 2 and 3 of
this part; and
(4) The plant control account to which the costs are charged.
9. Cost means the amount of money actually paid for property or
services. When the consideration given is other than cash in a purchase
and sale transaction, as distinguished from a transaction involving the
issuance of common stock in a merger or a pooling of interest, the value
of such consideration shall be determined on a cash basis.
10. Cost of removal means the cost of demolishing, dismantling,
tearing down or otherwise removing electric plant, including the cost of
transportation and handling incidental thereto.
11. Debt expense means all expenses in connection with the issuance
and initial sale of evidences of debt, such as fees for drafting
mortgages and trust deeds; fees and taxes for issuing or recording
evidences of debt; cost of engraving and printing bonds and
certificates of indebtedness; fees paid trustees; specific costs of
obtaining governmental authority; fees for legal services; fees and
commissions paid underwriters, brokers, and salesmen for marketing such
evidences of debt; fees and expenses of listing on exchanges; and
other like costs.
12. Depreciation, as applied to depreciable electric plant, means the
loss in service value not restored by current maintenance, incurred in
connection with the consumption or prospective retirement of electric
plant in the course of service from causes which are known to be in
current operation and against which the utility is not protected by
insurance. Among the causes to be given consideration are wear and
tear, decay, action of the elements, inadequacy, obsolescence, changes
in the art, changes in demand and requirements of public authorities.
13. Discount, as applied to the securities issued or assumed by the
utility, means the excess of the par (stated value of no-par stocks) or
face value of the securities plus interest or dividends accrued at the
date of the sale over the cash value of the consideration received from
their sale.
14. Investment advances means advances, represented by notes or by
book accounts only, with respect to which it is mutually agreed or
intended between the creditor and debtor that they shall be settled by
the issuance of securities or shall not be subject to current
settlement.
15. Lease, capital means a lease of property used in utility or
nonutility operations, which meets one or more of the criteria stated in
General Instruction 19.
16. Lease, operating means a lease of property used in utility or
nonutility operations, which does not meet any of the criteria stated in
General Instruction 19.
17. Licensee means any person, or State, licensed under the
provisions of the Federal Power Act and subject to the Commission's
accounting requirements under the terms of the license.
18. Minor items of property means the associated parts or items of
which retirement units are composed.
19. Net salvage value means the salvage value of property retired
less the cost of removal.
20. Nominally issued, as applied to securities issued or assumed by
the utility, means those which have been signed, certified, or otherwise
executed, and placed with the proper officer for sale and delivery, or
pledged, or otherwise placed in some special fund of the utility, but
which have not been sold, or issued direct to trustees of sinking funds
in accordance with contractual requirements.
21. Nominally outstanding, as applied to securities issued or assumed
by the utility, means those which, after being actually issued, have
been reacquired by or for the utility under circumstances which require
them to be considered as held alive and not retired, provided, however,
that securities held by trustees shall be considered as actually
outstanding.
22. Nonproject property means the electric plant of a licensee which
is not a part of the project property subject to a license issued by the
Commission.
23. Original cost, as applied to electric plant, means the cost of
such property to the person first devoting it to public service.
24. Person means an individual, a corporation, a partnership, an
association, a joint stock company, a business trust, or any organized
group of persons, whether incorporated or not, or any receiver or
trustee.
25. Premium, as applied to securities issued or assumed by the
utility, means the excess of the cash value of the consideration
received from their sale over the sum of their par (stated value of
no-par stocks) or face value and interest or dividends accrued at the
date of sale.
26. Project means complete unit of improvement or development,
consisting of 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 line or lines
transmitting power therefrom to the point of junction with the
distribution system or with the 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.
27. Project property means the property described in and subject to a
license issued by the Commission.
28. Property retired, as applied to electric plant, means property
which has been removed, sold, abandoned, destroyed, or which for any
cause has been withdrawn from service.
29. Public utility means any person who owns or operates facilities
subject to the jurisdiction of the Commission under the Federal Power
Act. (See section 201(e) of said act.)
30. A. Replacing or replacement, when not otherwise indicated in the
context, means the construction or installation of electric plant in
place of property retired, together with the removal of the property
retired.
B. Research, Development, and Demonstration (RD&D) in the case of
Major utilities means expenditures incurred by public utilities and
licensees either directly or through another person or organization
(such as research institute, industry association, foundation,
university, engineering company or similar contractor) in pursuing
research, development, and demonstration activities including
experiment, design, installation, construction, or operation. This
definition includes expenditures for the implementation or development
of new and/or existing concepts until technically feasible and
commercially feasible operations are verified. Such research,
development, and demonstration costs should be reasonably related to the
existing or future utility business, broadly defined, of the public
utility or licensee or in the environment in which it operates or
expects to operate. The term includes, but is not limited to: All such
costs incidental to the design, development or implementation of an
experimental facility, a plant process, a product, a formula, an
invention, a system or similar items, and the improvement of already
existing items of a like nature; amounts expended in connection with
the proposed development and/or proposed delivery of alternate sources
of electricity; and the costs of obtaining its own patent, such as
attorney's fees expended in making and perfecting a patent application.
The term includes preliminary investigations and detailed planning of
specific projects for securing for customers non-conventional electric
power supplies that rely on technology that has not been verified
previously to be feasible. The term does not include expenditures for
efficiency surveys; studies of management, management techniques and
organization; consumer surveys, advertising, promotions, or items of a
like nature.
31. Retained Earnings (formerly earned surplus) means the accumulated
net income of the utility less distribution to stockholders and
transfers to other capital accounts.
32. Retirement units means those items of electric plant which, when
retired, with or without replacement, are accounted for by crediting the
book cost thereof to the electric plant account in which included.
33. Salvage value means the amount received for property retired,
less any expenses incurred in connection with the sale or in preparing
the property for sale; or, if retained, the amount at which the
material recoverable is chargeable to materials and supplies, or other
appropriate account.
34. Service life means the time between the date electric plant is
includible in electric plant in service, or electric plant leased to
others, and the date of its retirement. If depreciation is accounted
for on a production basis rather than on a time basis, then service life
should be measured in terms of the appropriate unit of production.
35. Service value means the difference between original cost and net
salvage value of electric plant.
36. State means a State admitted to the Union, the District of
Columbia, and any organized Territory of the United States.
37. Subsidiary Company in the case of Major utilities means a company
which is controlled by the utility through ownership of voting stock.
(See Definitions item 5B, Control). A corporate joint venture in which
a corporation is owned by a small group of businesses as a separate and
specific business or project for the mutual benefit of the members of
the group is a subsidiary company for the purposes of this system of
accounts.
38. Utility, as used herein and when not otherwise indicated in the
context, means any public utility or licensee to which this system of
accounts is applicable.
18 CFR 50.1 General Instructions
1. Classification of utilities.
A. For purpose of applying the system of accounts prescribed by the
Commission, electric utilities and licensees are divided into classes,
as follows:
(1) Major. Utilities and licensees that had, in each of the last
three consecutive years, sales or transmission service that exceeded any
one or more of the following:
(1) One million megawatt-hours of total sales;
(2) 100 megawatt-hours of sales for resale;
(3) 500 megawatt-hours of gross interchange out; or
(4) 500 megawatt-hours of wheeling for others (deliveries plus
losses).
(2) Nonmajor. Utilities and licensees that are not classified as
Major (as defined above), and had total sales in each of the last three
consecutive years of 10,000 megawatt-hours or more.
B. This system applies to both Major and Nonmajor utilities and
licensees. Provisions have been incorporated into this system for those
entities which, prior to January 1, 1984, were applying the Commission's
Uniform System of Accounts Prescribed for Public Utilities and Licensees
subject to the Provisions of the Federal Power Act (Class C and Class D)
(part 104 of this chapter, now revoked). The notations (Nonmajor) and
(Major) have been used to indicate those instructions and accounts from
previous systems and classifications, which by definition, are not
interchangeable without causing a loss of detail for the Major
(previously Class A and Class B) or an increase in detail burden on the
Nonmajor (previously Class C and Class D).
C. The class to which any utility or licensee belongs will originally
be determined by its annual megawatt hours in each of the last three
consecutive years, or in the case of a newly established entity, the
projected data shall be the basis. Subsequent changes in classification
shall be made as necessary when the megawatt-hours for each of the three
immediately preceding years shall exceed the upper limit, or be less
than the lower limit of the classification previously applicable to the
utility.
D. Any utility may, at its option, adopt the system of accounts
prescribed by the Commission for any larger class of utilities.
2. Records.
A. Each utility shall keep its books of account, and all other books,
records, and memoranda which support the entries in such books of
account so as to be able to furnish readily full information as to any
item included in any account. Each entry shall be supported by such
detailed information as will permit ready identification, analysis, and
verification of all facts relevant thereto.
B. The books and records referred to herein include not only
accounting records in a limited technical sense, but all other records,
such as minute books, stock books, reports, correspondence, memoranda,
etc., which may be useful in developing the history of or facts
regarding any transaction.
C. No utility shall destroy any such books or records unless the
destruction thereof is permitted by rules and regulations of the
Commission.
D. In addition to prescribed accounts, clearing accounts, temporary
or experimental accounts, and subdivisions of any accounts, may be kept,
provided the integrity of the prescribed accounts is not impaired.
E. All amounts included in the accounts prescribed herein for
electric plant and operating expenses shall be just and reasonable and
any payments or accruals by the utility in excess of just and reasonable
charges shall be included in account 426.5, Other Deductions.
F. The arrangement or sequence of the accounts prescribed herein
shall not be controlling as to the arrangement or sequence in report
forms which may be prescribed by the Commission.
3. Numbering System.
A. The account numbering plan used herein consists of a system of
three-digit whole numbers as follows:
100-199 Assets and other debits.
200-299 Liabilities and other credits.
300-399 Plant accounts.
400-432, 434-435 Income accounts.
433, 436-439 Retained earnings accounts.
440-459 Revenue accounts.
500-599 Production, transmission and distribution expenses.
900-949 Customer accounts, customer service and informational, sales,
and general and administrative expenses.
B. In certain instances, numbers have been skipped in order to allow
for possible later expansion or to permit better coordination with the
numbering system for other utility departments.
C. The numbers prefixed to account titles are to be considered as
parts of the titles. Each utility, however, may adopt for its own
purposes a different system of account numbers (see also general
instruction 2D) provided that the numbers herein prescribed shall appear
in the descriptive headings of the ledger accounts and in the various
sources of original entry; however, if a utility uses a different group
of account numbers and it is not practicable to show the prescribed
account numbers in the various sources of original entry, such reference
to the prescribed account numbers may be omitted from the various
sources of original entry. Moreover, each utility using different
account numbers for its own purposes shall keep readily available a list
of such account numbers which it uses and a reconciliation of such
account numbers with the account numbers provided herein. It is
intended that the utility's records shall be so kept as to permit ready
analysis by prescribed accounts (by direct reference to sources of
original entry to the extent practicable) and to permit preparation of
financial and operating statements directly from such records at the end
of each accounting period according to the prescribed accounts.
4. Accounting Period.
Each utility shall keep its books on a monthly basis so that for each
month all transactions applicable thereto, as nearly as may be
ascertained, shall be entered in the books of the utility. Amounts
applicable or assignable to specific utility departments shall be so
segregated monthly. Each utility shall close its books at the end of
each calendar year unless otherwise authorized by the Commission.
5. Submittal of Questions.
To maintain uniformity of accounting, utilities shall submit
questions of doubtful interpretation to the Commission for consideration
and decision.
6. Item Lists.
Lists of items appearing in the texts of the accounts or elsewhere
herein are for the purpose of more clearly indicating the application of
the prescribed accounting. The lists are intended to be representative,
but not exhaustive. The appearance of an item in a list warrants the
inclusion of the item in the account mentioned only when the text of the
account also indicates inclusion inasmuch as the same item frequently
appears in more than one list. The proper entry in each instance must
be determined by the texts of the accounts.
7. Extraordinary Items.
It is the intent that net income shall reflect all items of profit
and loss during the period with the exception of prior period
adjustments as described in paragraph 7.1 and long-term debt as
described in paragraph 17 below. Those items related to the effects of
events and transactions which have occurred during the current period
and which are of unusual nature and infrequent occurrence shall be
considered extraordinary items. Accordingly, they will be events and
transactions of significant effect which are abnormal and significantly
different from the ordinary and typical activities of the company, and
which would not reasonably be expected to recur in the forseeable
future. (In determining significance, items should be considered
individually and not in the aggregate. However, the effects of a series
of related transactions arising from a single specific and identifiable
event or plan of action should be considered in the aggregate. To be
considered as extraordinary under the above guidelines, an item should
be more than approximately 5 percent of income, computed before
extraordinary items. Commission approval must be obtained to treat an
item of less than 5 percent, as extraordinary. (See accounts 434 and
435.)
7.1 Prior period items.
A. Items of profit and loss related to the following shall be
accounted for as prior period adjustments and excluded from the
determination of net income for the current year:
(1) Correction of an error in the financial statements of a prior
year.
(2) Adjustments that result from realization of income tax benefits
of pre-acquisition operating loss carryforwards of purchased
subsidiaries.
B. All other items of profit and loss recognized during the year
shall be included in the determination of net income for that year.
8. Unaudited Items (Major Utility).
Whenever a financial statement is required by the Commission, if it
is known that a transaction has occurred which affects the accounts but
the amount involved in the transaction and its effect upon the accounts
cannot be determined with absolute accuracy, the amount shall be
estimated and such estimated amount included in the proper accounts.
The utility is not required to anticipate minor items which would not
appreciably affect the accounts.
9. Distribution of Pay and Expenses of Employees.
The charges to electric plant, operating expense and other accounts
for services and expenses of employees engaged in activities chargeable
to various accounts, such as construction, maintenance, and operations,
shall be based upon the actual time engaged in the respective classes of
work, or in case that method is impracticable, upon the basis of a study
of the time actually engaged during a representative period.
10. Payroll Distribution.
Underlying accounting data shall be maintained so that the
distribution of the cost of labor charged direct to the various accounts
will be readily available. Such underlying data shall permit a
reasonably accurate distribution to be made of the cost of labor charged
initially to clearing accounts so that the total labor cost may be
classified among construction, cost of removal, electric operating
functions (steam generation, nuclear generation, hydraulic generation,
transmission, distribution, etc.) and nonutility operations.
11. Accounting to be on Accrual Basis.
A. The utility is required to keep its accounts on the accrual basis.
This requires the inclusion in its accounts of all known transactions
of appreciable amount which affect the accounts. If bills covering such
transactions have not been received or rendered, the amounts shall be
estimated and appropriate adjustments made when the bills are received.
B. When payments are made in advance for items such as insurance,
rents, taxes or interest the amount applicable to future periods shall
be charged to account 165, Prepayments, and spread over the periods to
which applicable by credits to account 165, and charges to the accounts
appropriate for the expenditure.
12. Records for Each Plant (Major Utility).
Separate records shall be maintained by electric plant accounts of
the book cost of each plant owned, including additions by the utility to
plant leased from others, and of the cost of operating and maintaining
each plant owned or operated. The term plant as here used means each
generating station and each transmission line or appropriate group of
transmission lines.
13. Accounting for Other Departments.
If the utility also operates other utility departments, such as gas,
water, etc., it shall keep such accounts for the other departments as
may be prescribed by proper authority and in the absence of prescribed
accounts, it shall keep such accounts as are proper or necessary to
reflect the results of operating each such department. It is not
intended that proprietary and similar accounts which apply to the
utility as a whole shall be departmentalized.
14. Transactions With Associated Companies (Major Utility).
Each utility shall keep its accounts and records so as to be able to
furnish accurately and expeditiously statements of all transactions with
associated companies. The statements may be required to show the
general nature of the transactions, the amounts involved therein and the
amounts included in each account prescribed herein with respect to such
transactions. Transactions with associated companies shall be recorded
in the appropriate accounts for transactions of the same nature.
Nothing herein contained, however, shall be construed as restraining the
utility from subdividing accounts for the purpose of recording
separately transactions with associated companies.
15. Contingent Assets and Liabilities (Major Utility).
Contingent assets represent a possible source of value to the utility
contingent upon the fulfillment of conditions regarded as uncertain.
Contingent liabilities include items which may under certain conditions
become obligations of the utility but which are neither direct nor
assumed liabilities at the date of the balance sheet. The utility shall
be prepared to give a complete statement of significant contingent
assets and liabilities (including cumulative dividends on preference
stock) in its annual report and at such other times as may be requested
by the Commission.
16. Separate Accounts or Records for Each Licensed Project.
The accounts or records of each licensee shall be so kept as to show
for each project (including pumped storage) under license;
(a) The actual legitimate original cost of the project, including the
original cost (or fair value, as determined under section 23 of the
Federal Power Act) of the original project, the original cost of
additions thereto and betterments thereof and credits for property
retired from service, as determined under the Commission's regulations;
(b) The charges for operation and maintenance of the project property
directly assignable to the project;
(c) The credits and debits to the depreciation and amortization
accounts, and the balances in such accounts;
(d) The credits and debits to operating revenue, income, and retained
earnings accounts that can be identified with and directly assigned to
the project.
Note: The purpose of this instruction is to insure that accounts or
records are currently maintained by each licensee from which reports may
be made to the Commission for use in determining the net investment in
each licensed project. The instruction covers only the debit and credit
items appearing in the licensee's accounts which may be identified with
and assigned directly to any licensed project. In the determination of
the net investment as defined in section 3 of the Federal Power Act,
allocations of items affecting the net investment may be required where
direct assignment is not practicable.
17. Long-Term Debt: Premium, Discount and Expense, and Gain or Loss
on Reacquisition.
A. Premium, discount and expense. A separate premium, discount and
expense account shall be maintained for each class and series of
long-term debt (including receivers' certificates) is- sued or assumed
by the utility. The premium will be recorded in account 225,
Unamortized Premium on Long-Term Debt, the discount will be recorded in
account 226, Unamortized Discount on Long-Term Debt -- Debit, and the
expense of issuance shall be recorded in account 181, Unamortized Debt
Expense.
The premium, discount and expense shall be amortized over the life of
the respective issues under a plan which will distribute the amounts
equitably over the life of the securities. The amortization shall be on
a monthly basis, and amounts thereof relating to discount and expense
shall be charged to account 428, Amortization of Debt Discount and
Expense. The amounts relating to premium shall be credited to account
429, Amortization of Premium on Debt -- Credit.
B. Reacquisition, without refunding. When long-term debt is
reacquired or redeemed without being converted into another form of
long-term debt and when the transaction is not in connection with a
refunding operation (primarily redemptions for sinking fund purposes),
the difference between the amount paid upon reacquisition and the face
value; plus any un- amortized premium less any related unamortized debt
expense and reacquisition costs; or less any unamortized discount,
related debt expense and reacquisition costs applicable to the debt
redeemed, retired and canceled, shall be included in account 189,
Unamortized Loss on Reacquired Debt, or account 257, Unamortized Gain on
Reacquired Debt, as appropriate. The utility shall amortize the
recorded amounts equally on a monthly basis over the remaining life of
the respective security issues (old original debt). The amounts so
amortized shall be charged to account 428.1, Amortization of Loss on
Reacquired Debt, or credited to account 429.1, Amortization of Gain on
Reacquired Debt -- Credit, as appropriate.
C. Reacquisition, with refunding. When the redemption of one issue
or series of bonds or other long-term obligations is financed by another
issue or series before the maturity date of the first issue, the
difference between the amount paid upon refunding and the face value;
plus any unamortized premium less related debt expense or less any
unamortized discount and related debt expense, applicable to the debt
refunded, shall be included in account 189, Unamortized Loss on
Reacquired Debt, or account 257, Unamortized Gain on Reacquired Debt, as
appropriate. The utility may elect to account for such amounts as
follows:
(1) Write them off immediately when the amounts are insignificant.
(2) Amortize them by equal monthly amounts over the remainder of the
original life of the issue retired, or
(3) Amortize them by equal monthly amounts over the life of the new
issue.
Once an election is made, it shall be applied on a consistent basis.
The amounts in (1), (2) or (3) above shall be charged to account 428.1.
Amortization of Loss on Reacquired Debt, or credited to account 429.1,
Amortization of Gain on Reacquired Debt -- Credit, as appropriate.
D. Under methods (2) and (3) above, the increase or reduction in
current income taxes resulting from the reacquisition should be
apportioned over the remainder of the original life of the issue retired
or over the life of the new issue, as appropriate, as directed more
specifically in paragraphs E and F below.
E. When the utility recognizes the loss in the year of reacquisition
as a tax deduction, account 410.1, Provision for Deferred Income Taxes,
Utility Operating Income, shall be debited and account 283, Accumulated
Deferred Income Taxes -- Other, shall be credited with the amount of the
related tax effect, such amount to be allocated to the periods affected
in accordance with the provisions of account 283.
F. When the utility chooses to recognize the gain in the year of
reacquisition as a taxable gain, account 411.1, Provision for Deferred
Income Taxes -- Credit, Utility Operating Income, shall be credited and
account 190, Accumulated Deferred Income Taxes, shall be debited with
the amount of the related tax effect, such amount to be allocated to the
periods affected in accordance with the provisions of account 190.
G. When the utility chooses to use the optional privilege of
deferring the tax on the gain attributable to the reacquisition of debt
by reducing the depreciable basis of utility property for tax purposes,
pursuant to section 108 of the Internal Revenue Code, the related tax
effects shall be deferred as the income is recognized for accounting
purposes, and the deferred amounts shall be amortized over the life of
the associated property on a vintage year basis. Account 410.1,
Provision for Deferred Income Taxes, Utility Operating Income, shall be
debited, and account 282, Accumulated Deferred Income Taxes -- Other
Property shall be credited with an amount equal to the estimated income
tax effect applicable to the portion of the income, attributable to
reacquired debt, recognized for accounting purposes during the period.
Account 282 shall be debited and account 411.1, Provision for Deferred
Income Taxes -- Credit, Utility Operating Income, shall be credited with
an amount equal to the estimated income tax effects, during the life of
the property, attributable to the reduction in the depreciable basis for
tax purposes.
H. The tax effects relating to gain or loss shall be allocated as
above to utility operations except in cases where a portion of the debt
reacquired is directly applicable to nonutility operations. In that
event, the related portion of the tax effects shall be allocated to
nonutility operations. Where it can be established that reacquired debt
is generally applicable to both utility and nonutility operations, the
tax effects shall be allocated between utility and nonutility operations
based on the ratio of net investment in utility plant to net investment
in nonutility plant.
I. Premium, discount, or expense on debt shall not be included as an
element in the cost of construction or acquisition of property (tangible
or intangible), except under the provisions of account 432, Allowance
for Borrowed Funds Used During Construction -- Credit.
J. Alternate method. Where a regulatory authority or a group of
regulatory authorities having prime rate jurisdiction over the utility
specifically disallows the rate principle of amortizing gains or losses
on reacquisition of long-term debt without refunding, and does not apply
the gain or loss to reduce interest charges in computing the allowed
rate of return for rate purposes, then the following alternate method
may be used to account for gains or losses relating to reacquisition of
long-term debt, with or without refunding.
(1) The difference between the amount paid upon reacquisition of any
long-term debt and the face value, adjusted for unamortized discount,
expenses or premium, as the case may be, applicable to the debt redeemed
shall be recognized currently in income and recorded in account 421,
Miscellaneous Nonoperating Income, or account 426.5, Other Deductions.
(2) When this alternate method of accounting is used, the utility
shall include a footnote to each financial statement, prepared for
public use, explaining why this method is being used along with the
treatment given for ratemaking purposes.
18. Comprehensive Interperiod In- come Tax Allocation.
A. Where there are timing differences between the periods in which
transactions affect taxable income and the periods in which they enter
into the determination of pretax accounting income, the income tax
effects of such transactions are to be recognized in the periods in
which the differences between book accounting income and taxable income
arise and in the periods in which the differences reverse using the
deferred tax method. In general, comprehensive interperiod tax
allocation should be followed whenever transactions enter into the
determination of pretax accounting income for the period even though
some transactions may affect the determination of taxes payable in a
different period, as further qualified below.
B. Utilities are not required to utilize comprehensive interperiod
income tax allocation until the deferred income taxes are included as an
expense in the rate level by the regulatory authority having rate
jurisdiction over the utility. Where comprehensive interperiod tax
allocation accounting is not practiced the utility shall include as a
note to each financial statement, prepared for public use, a footnote
explanation setting forth the utility's accounting policies with respect
to interperiod tax allocation and describing the treatment for
ratemaking purposes of the tax timing differences by regulatory
authorities having rate jurisdiction.
C. Should the utility be subject to more than one agency having rate
jurisdiction, its accounts shall appropriately reflect the ratemaking
treatment (deferral or flow through) of each jurisdiction.
D. Once comprehensive interperiod tax allocation has been initiated
either in whole or in part it shall be practiced on a consistent basis
and shall not be changed or discontinued without prior Commission
approval.
E. Tax effects deferred currently will be recorded as deferred debits
or deferred credits in accounts 190, Accumulated Deferred Income Taxes,
281, Accumulated Deferred Income Tax- es -- Accelerated Amortization
Property, 282, Accumulated Deferred Income Taxes -- Other Property, and
283, Accumulated Deferred Income Taxes -- Other, as appropriate. The
resulting amounts recorded in these accounts shall be disposed of as
prescribed in this system of accounts or as otherwise authorized by the
Commission.
19. Criteria for classifying leases.
A. If at its inception a lease meets one or more of the following
criteria, the lease shall be classified as a capital lease. Otherwise,
it shall be classified as an operating lease.
(1) The lease transfers ownership of the property to the lessee by
the end of the lease term
(2) The lease contains a bargain purchase option.
(3) The lease term is equal to 75 percent or more of the estimated
economic life of the leased property. However, if the beginning of the
lease term falls within the last 25 percent of the total estimated
economic life of the leased property, including earlier years of use,
this criterion shall not be used for purposes of classifying the lease.
(4) The present value at the beginning of the lease term of the
minimum lease payments, excluding that portion of the payments
representing executory costs such as insurance, maintenance, and taxes
to be paid by the lessor, including any profit thereon, equals or
exceeds 90 percent of the excees of the fair value of the leased
property to the lessor at the inception of the lease over any related
investment tax credit retained by the lessor and expected to be realized
by the lessor. However, if the beginning of the lease term falls within
the last 25 percent of the total estimated economic life of the leased
property, including earlier years of use, this criterion shall not be
used for purposes of classifying the lease. The lessee utility shall
compute the present value of the minimum lease payments using its
incremental borrowing rate, unless (A) it is practicable for the utility
to learn the implicit rate computed by the lessor, and (B) the implicit
rate computed by the lessor is less than the lessee's incremental
borrowing rate. If both of those conditions are met, the lessee shall
use the implicit rate.
B. If at any time the lessee and lessor agree to change the
provisions of the lease, other than by renewing the lease or extending
its term, in a manner that would have resulted in a different
classification of the lease under the criteria in paragraph A had the
changed terms been in effect at the inception of the lease, the revised
agreement shall be considered as a new agreement over its term, and the
criteria in paragraph A shall be applied for purposes of classifying the
new lease. Likewise, any action that extends the lease beyond the
expiration of the existing lease term, such as the exercise of a lease
renewal option other than those already included in the lease term,
shall be considered as a new agreement and shall be classified according
to the above provisions. Changes in estimates (for example, changes in
estimates of the economic life or of the residual value of the leased
property) or changes in circumstances (for example, default by the
lessee) shall not give rise to a new classification of a lease for
accounting purposes.
20. Accounting for leases.
A. All leases shall be classified as either capital or operating
leases. The accounting for capitalized leases is effective January 1,
1984, except for the retroactive classification of certain leases which,
in accordance with FASB No. 71, will not be required to be capitalized
until after a three year transition period. For the purpose of
reporting to the FERC, the transition period shall be deemed to end
December 31, 1986.
B. The utility shall record a capital lease as an asset in account
101.1, Property under Capital Leases, Account 120.6, Nuclear Fuel under
Capital Leases, or account 121, Nonutility Property, as appropriate, and
an obligation in account 227, Obligations under Capital Leases --
Noncurrent, or account 243, Obligations under Capital Leases -- Current,
at an amount equal to the present value at the beginning of the lease
term of minimum lease payments during the lease term, excluding that
portion of the payments representing executory costs such as insurance,
maintenance, and taxes to be paid by the lessor, together with any
profit thereon. However, if the amount so determined exceeds the fair
value of the leased property at the inception of the lease, the amount
recorded as the asset and obligation shall be the fair value.
C. Rental payments on all leases shall be charged to rent expense,
fuel expense, construction work in progress, or other appropriate
accounts as they become payable.
D. For a capital lease, for each period during the lease term, the
amounts recorded for the asset and obligation shall be reduced by an
amount equal to the portion of each lease payment that would have been
allocated to the reduction of the obligation, if the payment had been
treated as a payment on an installment obligation (liability) and
allocated between interest expense and a reduction of the obligation so
as to produce a constant periodic rate of interest on the remaining
balance.
18 CFR 50.1 Electric Plant Instructions
1. Classification of electric plant at effective date of system of
accounts (Major utilities).
A. The electric plant accounts provided herein are the same as those
contained in the prior system of accounts except for inclusion of
accounts for nuclear production plant and some changes in classification
in the general equipment accounts. Except for these changes, the
balances in the various plant accounts, as determined under the prior
system of accounts, should be carried forward. Any remaining balance of
plant which has not yet been classified, pursuant to the requirements of
the prior system, shall be classified in accordance with the following
instructions.
B. The cost to the utility of its unclassified plant shall be
ascertained by analysis of the utility's records. Adjustments shall not
be made to record in utility plant accounts amounts previously charged
to operating expenses or to income deductions in accordance with the
uniform system of accounts in effect at the time or in accordance with
the discretion of management as exercised under a uniform system of
accounts, or under accounting practices previously followed.
C. The detailed electric plant accounts (301 to 399, inclusive) shall
be stated on the basis of cost to the utility of plant constructed by it
and the original cost, estimated if not known, of plant acquired as an
operating unit or system. The difference between the original cost, as
above, and the cost to the utility of electric plant after giving effect
to any accumulated provision for depreciation or amortization shall be
recorded in account 114, Electric Plant Acquisition Adjustments. The
original cost of electric plant shall be determined by analysis of the
utility's records or those of the predecessor or vendor companies with
respect to electric plant previously acquired as operating units or
systems and the difference between the original cost so determined, less
accumulated provisions for depreciation and amortization and the cost to
the utility with necessary adjustments for retirements from the date of
acquisition, shall be entered in account 114, Electric Plant Acquisition
Adjustments. Any difference between the cost of electric plant and its
book cost, when not properly includible in other accounts, shall be
recorded in account 116, Other Electric Plant Adjustments.
D. Plant acquired by lease which qualifies as capital lease property
under General Instruction 19. Criteria for Classifying Leases, shall be
recorded in Account 101.1, Property under Capital Leases, or Account
120.6, Nuclear Fuel under Capital Leases, as appropriate.
2. Electric Plant To Be Recorded at Cost.
A. All amounts included in the accounts for electric plant acquired
as an operating unit or system, except as otherwise provided in the
texts of the intangible plant accounts, shall be stated at the cost
incurred by the person who first devoted the property to utility
service. All other electric plant shall be included in the accounts at
the cost incurred by the utility, except for property acquired by lease
which qualifies as capital lease property under General Instruction 19.
Criteria for Classifying Leases, and is recorded in Account 101.1,
Property under Capital Leases, or Account 120.6, Nuclear Fuel under
Capital Leases. Where the term cost is used in the detailed plant
accounts, it shall have the meaning stated in this paragraph.
B. When the consideration given for property is other than cash, the
value of such consideration shall be determined on a cash basis (see,
however, definition 9). In the entry recording such transition, the
actual consideration shall be described with sufficient particularity to
identify it. The utility shall be prepared to furnish the Commission
the particulars of its determination of the cash value of the
consideration if other than cash.
C. When property is purchased under a plan involving deferred
payments, no charge shall be made to the electric plant accounts for
interest, insurance, or other expenditures occasioned solely by such
form of payment.
D. The electric plant accounts shall not include the cost or other
value of electric plant contributed to the company. Contributions in
the form of money or its equivalent toward the construction of electric
plant shall be credited to accounts charged with the cost of such
construction. Plant constructed from contributions of cash or its
equivalent shall be shown as a reduction to gross plant constructed when
assembling cost data in work orders for posting to plant ledgers of
accounts. The accumulated gross costs of plant accumulated in the work
order shall be recorded as a debit in the plant ledger of accounts along
with the related amount of contributions concurrently be recorded as a
credit.
3. Components of construction cost.
A. For Major utilities, the cost of construction properly includible
in the electric plant accounts shall include, where applicable, the
direct and overhead cost as listed and defined hereunder:
(1) Contract work includes amounts paid for work performed under
contract by other companies, firms, or individuals, costs incident to
the award of such contracts, and the inspection of such work.
(2) Labor includes the pay and expenses of employees of the utility
engaged on construction work, and related workmen's compensation
insurance, payroll taxes and similar items of expense. It does not
include the pay and expenses of employees which are distributed to
construction through clearing accounts nor the pay and expenses included
in other items hereunder.
(3) Materials and supplies includes the purchase price at the point
of free delivery plus customs duties, excise taxes, the cost of
inspection, loading and transportation, the related stores expenses, and
the cost of fabricated materials from the utility's shop. In
determining the cost of materials and supplies used for construction,
proper allowance shall be made for unused materials and supplies, for
materials recovered from temporary structures used in performing the
work involved, and for discounts allowed and realized in the purchase of
materials and supplies.
Note: The cost of individual items of equipment of small value (for
example, $500 or less) or of short life, including small portable tools
and implements, shall not be charged to utility plant accounts unless
the correctness of the accounting therefor is verified by current
inventories. The cost shall be charged to the appropriate operating
expense or clearing accounts, according to the use of such items, or, if
such items are consumed directly in construction work, the cost shall be
included as part of the cost of the construction
(4) Transportation includes the cost of transporting employees,
materials and supplies, tools, purchased equipment, and other work
equipment (when not under own power) to and from points of construction.
It includes amounts paid to others as well as the cost of operating the
utility's own transportation equipment. (See item 5 following.)
(5) Special machine service includes the cost of labor (optional),
materials and supplies, depreciation, and other expenses incurred in the
maintenance, operation and use of special machines, such as steam
shovels, pile drivers, derricks, ditchers, scrapers, material unloaders,
and other labor saving machines; also expenditures for rental,
maintenance and operation of machines of others. It does not include
the cost of small tools and other individual items of small value or
short life which are included in the cost of materials and supplies.
(See item 3, above.) When a particular construction job requires the use
for an extended period of time of special machines, transportation or
other equipment, the net book cost thereof, less the appraised or
salvage value at time of release from the job, shall be included in the
cost of construction.
(6) Shop service includes the proportion of the expense of the
utility's shop department assignable to construction work except that
the cost of fabricated materials from the utility's shop shall be
included in materials and supplies.
(7) Protection includes the cost of protecting the utility's property
from fire or other casualties and the cost of preventing damages to
others, or to the property of others, including payments for discovery
or extinguishment of fires, cost of apprehending and prosecuting
incendiaries, witness fees in relation thereto, amounts paid to
municipalities and others for fire protection, and other analogous items
of expenditures in connection with construction work.
(8) Injuries and damages includes expenditures or losses in
connection with construction work on account of injuries to persons and
damages to the property of others; also the cost of investigation of
and defense against actions for such injuries and damages. Insurance
recovered or recoverable on account of compensation paid for injuries to
persons incident to construction shall be credited to the account or
accounts to which such compensation is charged Insurance recovered or
recoverable on account of property damages incident to construction
shall be credited to the account or accounts charged with the cost of
the damages.
(9) Privileges and permits includes payments for and expenses
incurred in securing temporary privileges, permits or rights in
connection with construction work, such as for the use of private or
public property, streets, or highways, but it does not include rents, or
amounts chargeable as franchises and consents for which see account 302,
Franchises and Consents.
(10) Rents includes amounts paid for the use of construction quarters
and office space occupied by construction forces and amounts properly
includible in construction costs for such facilities jointly used.
(11) Engineering and supervision includes the portion of the pay and
expenses of engineers, surveyors, draftsmen, inspectors, superintendents
and their assistants applicable to construction work.
(12) General administration capitalized includes the portion of the
pay and expenses of the general officers and administrative and general
expenses applicable to construction work.
(13) Engineering services includes amounts paid to other companies,
firms, or individuals engaged by the utility to plan, design, prepare
estimates, supervise, inspect, or give general advice and assistance in
connection with construction work.
(14) Insurance includes premiums paid or amounts provided or reserved
as self-insurance for the protection against loss and damages in
connection with construction, by fire or other casualty injuries to or
death of persons other than employees, damages to property of others,
defalcation of employees and agents, and the nonperformance of
contractual obligations of others. It does not include workmen's
compensation or similar insurance on employees included as labor in item
2, above.
(15) Law expenditures includes the general law expenditures incurred
in connection with construction and the court and legal costs directly
related thereto, other than law expenses included in protection, item 7,
and in injuries and damages, item 8.
(16) Taxes includes taxes on physical property (including land)
during the period of construction and other taxes properly includible in
construction costs before the facilities become available for service.
(17) Allowance for funds used during construction (Major and Nonmajor
Utilities) includes the net cost for the period of construction of
borrowed funds used for construction purposes and a reasonable rate on
other funds when so used, not to exceed, without prior approval of the
Commission, allowances computed in accordance with the formula
prescribed in paragraph (a) of this subparagraph. No allowance for
funds used during construction charges shall be included in these
accounts upon expenditures for construction projects which have been
abandoned.
(a) The formula and elements for the computation of the allowance for
funds used during construction shall be:
Ai=s(S/W)+d(D/D+P+C)(1^S/W)
Ae=(1^S/W)(p(P/D+P+C)+c(C/D+P+C))
Ai=Gross allowance for borrowed funds used during construction rate.
Ae=Allowance for other funds used during construction rate.
S=Average short-term debt.
s=Short-term debt interest rate.
D=Long-term debt.
d=Long-term debt interest rate.
P=Preferred stock.
p=Preferred stock cost rate.
C=Common equity.
c=Common equity cost rate.
W=Average balance in construction work in progress plus nuclear fuel
in process of refinement, conversion, enrichment and fabrication.
(b) The rates shall be determined annually. The balances for
long-term debt, preferred stock and common equity shall be the actual
book balances as of the end of the prior year. The cost rates for
long-term debt and preferred stock shall be the weighted average cost
determined in the manner indicated in 35.13 of the Commission's
Regulations Under the Federal Power Act. The cost rate for common
equity shall be the rate granted common equity in the last rate
proceeding before the ratemaking body having primary rate jurisdictions.
If such cost rate is not available, the average rate actually earned
during the preceding three years shall be used. The short-term debt
balances and related cost and the average balance for construction work
in progress plus nuclear fuel in process of refinement, conversion,
enrichment, and fabrication shall be estimated for the current year with
appropriate adjustments as actual data becomes available.
Note: When a part only of a plant or project is placed in operation
or is completed and ready for service but the construction work as a
whole is incomplete, that part of the cost of the property placed in
operation or ready for service, shall be treated as Electric Plant in
Service and allowance for funds used during construction thereon as a
charge to construction shall cease. Allowance for funds used during
construction on that part of the cost of the plant which is incomplete
may be continued as a charge to construction until such time as it is
placed in operation or is ready for service, except as limited in item
17, above.
(18) Earnings and expenses during construction. The earnings and
expenses during construction shall constitute a component of
construction costs.
(a) The earnings shall include revenues received or earned for power
produced by generating plants during the construction period and sold or
used by the utility. Where such power is sold to an independent
purchaser before intermingling with power generated by other plants, the
credit shall consist of the selling price of the energy. Where the
power generated by a plant under construction is delivered to the
utility's electric system for distribution and sale, or is delivered to
an associated company, or is delivered to and used by the utility for
purposes other than distribution and sale (for manufacturing or
industrial use, for example), the credit shall be the fair value of the
energy so delivered. The revenues shall also include rentals for lands,
buildings etc., and miscellaneous receipts not properly includible in
other accounts.
(b) The expenses shall consist of the cost of operating the power
plant, and other costs incident to the production and delivery of the
power for which construction is credited under paragraph (a), above,
including the cost of repairs and other expenses of operating and
maintaining lands, buildings, and other property, and other
miscellaneous and like expenses not properly includible in other
accounts.
(19) Training costs (Major and Nonmajor Utilities). When it is
necessary that employees be trained to operate or maintain plant
facilities that are being constructed and such facilities are not
conventional in nature, or are new to the company's operations, these
costs may be capitalized as a component of construction cost. Once
plant is placed in service, the capitalization of training costs shall
cease and subsequent training costs shall be expensed. (See Operating
Expense Instruction 4.)
(20) Studies includes the costs of studies such as nuclear
operational, safety, or seismic studies or environmental studies
mandated by regulatory bodies relative to plant under construction.
Studies relative to facilities in service shall be charged to account
183, Preliminary Survey and Investigation Charges.
B. For Nonmajor utilities, the cost of construction of property
chargeable to the electric plant accounts shall include, where
applicable, the cost of labor; materials and supplies; transportation;
work done by others for the utility; injuries and damages incurred in
construction work; privileges and permits; special machine service;
allowance for funds used during construction, not to exceed without
prior approval of the Commission, amounts computed in accordance with
the formula prescribed in paragraph (a) of paragraph (17) of this
Instruction; training costs; and such portion of general engineering,
administrative salaries and expenses, insurance, taxes, and other
analogous items as may be properly includable in construction costs.
(See Operating Expense Instruction 4.) The rates and balances of short
and long-term debt, preferred stock, common equity and construction work
in progress shall be determined as prescribed in paragraph (b) of
paragraph (17) of this Instruction.
4. Overhead Construction Costs.
A. All overhead construction costs, such as engineering, supervision,
general office salaries and expenses, construction engineering and
supervision by others than the accounting utility, law expenses,
insurance, injuries and damages, relief and pensions, taxes and
interest, shall be charged to particular jobs or units on the basis of
the amounts of such overheads reasonably applicable thereto, to the end
that each job or unit shall bear its equitable proportion of such costs
and that the entire cost of the unit, both direct and overhead, shall be
deducted from the plant accounts at the time the property is retired.
B. As far as practicable, the determination of pay roll charges
includible in construction overheads shall be based on time card
distributions thereof. Where this procedure is impractical, special
studies shall be made periodically of the time of supervisory employees
devoted to construction activities to the end that only such overhead
costs as have a definite relation to construction shall be capitalized.
The addition to direct construction costs of arbitrary percentages or
amounts to cover assumed overhead costs is not permitted.
C. For Major utilities, the records supporting the entries for
overhead construction costs shall be so kept as to show the total amount
of each overhead for each year, the nature and amount of each overhead
expenditure charged to each construction work order and to each electric
plant account, and the bases of distribution of such costs.
5. Electric Plant Purchased or Sold.
A. When electric plant constituting an operating unit or system is
acquired by purchase, merger, consolidation, liquidation, or otherwise,
after the effective date of this system of accounts, the costs of
acquisition, including expenses incidental thereto properly includible
in electric plant, shall be charged to account 102, Electric Plant
Purchased or Sold.
B. The accounting for the acquisition shall then be completed as
follows:
(1) The original cost of plant, estimated if not known, shall be
credited to account 102, Electric Plant Purchased or Sold, and
concurrently charged to the appropriate electric plant in service
accounts and to account 104, Electric Plant Leased to Others, account
105, Electric Plant Held for Future Use, and account 107, Construction
Work in Progress -- Electric, as appropriate.
(2) The depreciation and amortization applicable to the original cost
of the properties purchased shall be charged to account 102, Electric
Plant Purchased or Sold, and concurrently credited to the appropriate
account for accumulated provision for depreciation or amortization.
(3) The cost to the utility of any property includible in account
121, Nonutility Property, shall be transferred thereto.
(4) The amount remaining in account 102, Electric Plant Purchased or
Sold, shall then be closed to account 114, Electric Plant Acquisition
Adjustments.
C. If property acquired in the purchase of an operating unit or
system is in such physical condition when acquired that it is necessary
substantially to rehabilitate it in order to bring the property up to
the standards of the utility, the cost of such work, except
replacements, shall be accounted for as a part of the purchase price of
the property.
D. When any property acquired as an operating unit or system includes
duplicate or other plant which will be retired by the accounting utility
in the reconstruction of the acquired property or its consolidation with
previously owned property, the proposed accounting for such property
shall be presented to the Commission.
E. In connection with the acquisition of electric plant constituting
an operating unit or system, the utility shall procure, if possible, all
existing records relating to the property acquired, or certified copies
thereof, and shall preserve such records in conformity with regulations
or practices governing the preservation of records of its own
construction.
F. When electric plant constituting an operating unit or system is
sold, conveyed, or transferred to another by sale, merger,
consolidation, or otherwise, the book cost of the property sold or
transferred to another shall be credited to the appropriate utility
plant accounts, including amounts carried in account 114, Electric Plant
Acquisition Adjustments. The amounts (estimated if not known) carried
with respect thereto in the accounts for accumulated provision for
depreciation and amortization and in account 252, Customer Advances for
Construction, shall be charged to such accounts and contra entries made
to account 102, Electric Plant Purchased or Sold. Unless otherwise
ordered by the Commission, the difference, if any, between (1) the net
amount of debits and credits and (2) the consideration received for the
property (less commissions and other expenses of making the sale) shall
be included in account 421.1. Gain on Disposition of Property, or
account 421.2, Loss on Disposition of Property. (See account 102,
Electric Plant Purchased or Sold.)
Note: In cases where existing utilities merge or consolidate because
of financial or operating reasons or statutory requirements rather than
as a means of transferring title of purchased properties to a new owner,
the accounts of the constituent utilities, with the approval of the
Commission, may be combined. In the event original cost has not been
determined, the resulting utility shall proceed to determine such cost
as outlined herein.
6. Expenditures on Leased Property.
A. The cost of substantial initial improvements (including repairs,
rear-rangements, additions, and betterments) made in the course of
preparing for utility service property leased for a period of more than
one year, and the cost of subsequent substantial additions,
replacements, or betterments to such property, shall be charged to the
electric plant account appropriate for the class of property leased. If
the service life of the improvements is terminable by action of the
lease, the cost, less net salvage, of the improvements shall be spread
over the life of the lease by charges to account 404, Amortization of
Limited-Term Electric Plant. However, if the service life is not
terminated by action of the lease but by depreciation proper, the cost
of the improvements, less net salvage, shall be accounted for as
depreciable plant. The provisions of this paragraph are applicable to
property leased under either capital leases or operating leases.
B. If improvements made to property leased for a period of more than
one year are of relatively minor cost, or if the lease is for a period
of not more than one year, the cost of the improvements shall be charged
to the account in which the rent is included, either directly or by
amortization thereof.
7. Land and Land Rights.
A. The accounts for land and land rights shall include the cost of
land owned in fee by the utility and rights. Interests, and privileges
held by the utility in land owned by others, such as leaseholds,
easements, water and water power rights, diversion rights, submersion
rights, rights-of-way, and other like interests in land. Do not include
in the accounts for land and land rights and rights-of-way costs
incurred in connection with first clearing and grading of land and
rights-of-way and the damage costs associated with the construction and
installation of plant. Such costs shall be included in the appropriate
plant accounts directly benefited.
B. Where special assessments for public improvements provide for
deferred payments, the full amount of the assessments shall be charged
to the appropriate land account and the unpaid balance shall be carried
in an appropriate liability account. Interest on unpaid balances shall
be charged to the appropriate interest account. If any part of the cost
of public improvements is included in the general tax levy, the amount
thereof shall be charged to the appropriate tax account.
C. The net profit from the sale of timber, cord wood, sand, gravel,
other resources or other property acquired with the rights-of-way or
other lands shall be credited to the appropriate plant account to which
related. Where land is held for a considerable period of time and
timber and other natural resources on the land at the time of purchase
increases in value, the net profit (after giving effect to the cost of
the natural resources) from the sales of timber or its products or other
natural resources shall be credited to the appropriate utility operating
income account when such land has been recorded in account 105, Electric
Plant Held for Future Use or classified as plant in service, otherwise
to account 421, Miscellaneous Nonoperating Income.
D. Separate entries shall be made for the acquisition, transfer, or
retirement of each parcel of land, and each land right (except rights of
way for distribution lines), or water right, having a life of more than
one year. A record shall be maintained showing the nature of ownership,
full legal description, area, map reference, purpose for which used,
city, county, and tax district on which situated, from whom purchased or
to whom sold, payment given or received, other costs, contract date and
number, date of recording of deed, and book and page of record. Entries
transferring or retiring land or land rights shall refer to the original
entry recording its acquisition.
E. Any difference between the amount received from the sale of land
or land rights, less agents' commissions and other costs incident to the
sale, and the book cost of such land or rights, shall be included in
account 411.6, Gains from Disposition of Utility Plant, or 411.7, Losses
from Disposition of Utility Plant when such property has been recorded
in account 105, Electric Plant Held for Future Use, otherwise to account
421.1, Gain on Disposition of Property or 421.2, Loss on Disposition of
Property, as appropriate, unless a reserve therefor has been authorized
and provided. Appropriate adjustments of the accounts shall be made
with respect to any structures or improvements located on land sold.
F. The cost of buildings and other improvements (other than public
improvements) shall not be included in the land accounts. If at the
time of acquisition of an interest in land such interest extends to
buildings or other improvements (other than public improvements) which
are then devoted to utility operations, the land and improvements shall
be separately appraised and the cost allocated to land and buildings or
improvements on the basis of the appraisals. If the improvements are
removed or wrecked without being used in operations, the cost of
removing or wrecking shall be charged and the salvage credited to the
account in which the cost of the land is recorded.
G. When the purchase of land for electric operations requires the
purchase of more land than needed for such purposes, the charge to the
specific land account shall be based upon the cost of the land
purchased, less the fair market value of that portion of the land which
is not to be used in utility operations. The portion of the cost
measured by the fair market value of the land not to be used shall be
included in account 105, Electric Plant Held for Future Use, or account
121, Nonutility Property, as appropriate.
H. Provisions shall be made for amortizing amounts carried in the
accounts for limited-term interests in land so as to apportion equitably
the cost of each interest over the life thereof. (For Major utilities,
see account 111, Accumulated Provision for Amortization of Electric
Plant Utility, and account 404, Amortization of Limited-Term Electric
Plant. For Nonmajor utilities, see account 404.)
I. The items of cost to be included in the accounts for land and land
rights are as follows:
1. Bulkheads, buried, not requiring maintenance or replacement.
2. Cost, first, of acquisition including mortgages and other liens
assumed (but not subsequent interest thereon).
3. (Reserved)
4. Condemnation proceedings, including court and counsel costs.
5. Consents and abutting damages, payment for.
6. Conveyancers' and notaries' fees.
7. Fees, commissions, and salaries to brokers, agents and others in
connection with the acquisition of the land or land rights.
8. (Reserved)
9. Leases, cost of voiding upon purchase to secure possession of
land.
10. Removing, relocating, or reconstructing, property of others, such
as buildings, highways, railroads, bridges, cemeteries, churches,
telephone and power lines, etc., in order to acquire quiet possession.
11. Retaining walls unless identified with structures.
12. Special assessments levied by public authorities for public
improvements on the basis of benefits for new roads, new bridges, new
sewers, new curbing, new pavements, and other public improvements, but
not taxes levied to provide for the maintenance of such improvements.
13. Surveys in connection with the acquisition, but not amounts paid
for topographical surveys and maps where such costs are attributable to
structures or plant equipment erected or to be erected or installed on
such land.
14. Taxes assumed, accrued to date of transfer of title.
15. Title, examining, clearing, insuring and registering in
connection with the acquisition and defending against claims relating to
the period prior to the acquisition.
16. Appraisals prior to closing title.
17. Cost of dealing with distributees or legatees residing outside of
the state or county, such as recording power of attorney, recording will
or exemplification of will, recording satisfaction of state tax.
18. Filing satisfaction of mortgage.
19. Documentary stamps.
20. Photographs of property at acquisition.
21. Fees and expenses incurred in the acquisition of water rights and
grants.
22. Cost of fill to extend bulkhead line over land under water, where
riparian rights are held, which is not occasioned by the erection of a
structure.
23. Sidewalks and curbs constructed by the utility on public
property.
24. Labor and expenses in connection with securing rights of way,
where performed by company employees and company agents.
8. Structures and Improvements.
A. The accounts for structures and improvements shall include the
cost of all buildings and facilities to house, support, or safeguard
property or persons, including all fixtures permanently attached to and
made a part of buildings and which cannot be removed therefrom without
cutting into the walls, ceilings, or floors, or without in some way
impairing the buildings, and improvements of a permanent character on or
to land. Also include those costs incurred in connection with the first
clearing and grading of land and rights-of-way and the damage costs
associated with construction and installation of plant.
B. The cost of specially provided foundations not intended to outlast
the machinery or apparatus for which provided, and the cost of angle
irons, castings, etc., installed at the base of an item of equipment,
shall be charged to the same account as the cost of the machinery,
apparatus, or equipment.
C. Minor buildings and structures, such as valve towers, patrolmen's
towers, telephone stations, fish and wildlife, and recreation
facilities, etc., which are used directly in connection with or form a
part of a reservoir, dam, waterway, etc., shall be considered a part of
the facility in connection with which constructed or operated and the
cost thereof accounted for accordingly.
D. Where furnaces and boilers are used primarily for furnishing steam
for some particular department and only incidentally for furnishing
steam for heating a building and operating the equipment therein, the
entire cost of such furnaces and boilers shall be charged to the
appropriate plant account, and no part to the building account.
E. Where the structure of a dam forms also the foundation of the
power plant building, such foundation shall be considered a part of the
dam.
F. The cost of disposing of materials excavated in connection with
construction of structures shall be considered as a part of the cost of
such work, except as follows: (a) When such material is used for
filling, the cost of loading, hauling, and dumping shall be equitably
apportioned between the work in connection with which the removal occurs
and the work in connection with which the material is used; (b) when
such material is sold, the net amount realized from such sales shall be
credited to the work in connection with which the removal occurs. If
the amount realized from the sale of excavated materials exceeds the
removal costs and the costs in connection with the sale, the excess
shall be credited to the land account in which the site is carried.
G. Lighting or other fixtures temporarily attached to buildings for
purposes of display or demonstration shall not be included in the cost
of the building but in the appropriate equipment account.
H. The items of cost to be included in the accounts for structures
and improvements are as follows:
1. Architects' plans and specifications including supervision.
2. Ash pits (when located within the building). (Major Utilities)
3. Athletic field structures and improvements.
4. Boilers, furnaces, piping, wiring, fixtures, and machinery for
heating, lighting, signaling, ventilating, and air-conditioning systems,
plumbing, vacuum cleaning systems, incinerator and smoke pipe, flues,
etc.
5. Bulkheads, including dredging, riprap fill, piling, decking,
concrete, fenders, etc., when exposed and subject to maintenance and
replacement.
6. Chimneys (Major Utilities).
7. Coal bins and bunkers.
8. Commissions and fees to brokers, agents, architects, and others.
9. Conduit (not to be removed) with its contents.
10. Damages to abutting property during construction.
11. Docks (Major Utilities).
12. Door checks and door stops (Major Utilities).
13. Drainage and sewerage systems.
14. Elevators, cranes, hoists, etc., and the machinery for operating
them.
15. Excavation, including shoring, bracing, bridging, refill and
disposal of excess excavated material, cofferdams around foundation,
pumping water from cofferdams during construction, and test borings.
16. Fences and fence curbs (not including protective fences isolating
items of equipment, which shall be charged to the appropriate equipment
account).
17. Fire protection systems when forming a part of a structure.
18. Flagpole (Major Utilities).
19. Floor covering (permanently attached) (Major Utilities).
20. Foundations and piers for machinery, constructed as a permanent
part of a building or other item listed herein.
21. Grading and clearing when directly occasioned by the building of
a structure.
22. Intrasite communication system, poles, pole fixtures, wires, and
cables.
23. Landscaping, lawns, shrubbery, etc.
24. Leases, voiding upon purchase to secure possession of structures.
25. Leased property, expenditures on.
26. Lighting fixtures and outside lighting system.
27. Mailchutes when part of a building (Major Utilities).
28. Marquee, permanently attached to building (Major Utilities).
29. Painting, first cost.
30. Permanent paving, concrete, brick, flagstone, asphalt, etc.,
within the property lines.
31. Partitions, including movable (Major Utilities).
32. Permits and privileges.
33. Platforms, railings, and gratings when constructed as a part of a
structure.
34. Power boards for services to a building (Major Utilities).
35. Refrigerating systems for general use (Major Utilities).
36. Retaining walls except when identified with land.
37. Roadways, railroads, bridges, and trestles intrasite except
railroads provided for in equipment accounts.
38. Roofs (Major Utilities).
39. Scales, connected to and forming a part of a structure (Major
Utilities).
40. Screens (Major Utilities).
41. Sewer systems, for general use (Major Utilities).
42. Sidewalks, culverts, curbs and streets constructed by the utility
on its property (Major Utilities).
43. Sprinkling systems (Major Utilities).
44. Sump pumps and pits (Major Utilities).
45. Stacks -- brick, steel, or concrete, when set on foundation
forming part of general foundation and steelwork of a building.
46. Steel inspection during construction (Major Utilities).
47. Storage facilities constituting a part of a building.
48. Storm doors and windows (Major Utilities).
49. Subways, areaways, and tunnels, directly connected to and forming
part of a structure.
50. Tanks, constructed as part of a building or as a distinct
structural unit.
51. Temporary heating during construction (net cost) (Major
Utilities).
52. Temporary water connection during construction (net cost) (Major
Utilities).
53. Temporary shanties and other facilities used during construction
(net cost)
54. Topographical maps (Major Utilities).
55. Tunnels, intake and discharge, when constructed as part of a
structure, including sluice gates, and those constructed to house mains.
56. Vaults constructed as part of a building.
57. Watchmen's sheds and clock systems (net cost when used during
construction only) (Major Utilities).
58. Water basins or reservoirs.
59. Water front improvements (Major Utilities).
60. Water meters and supply system for a building or for general
company purposes (Major Utilities).
61. Water supply piping, hydrants and wells (Major Utilities).
62. Wharves.
63. Window shades and ventilators (Major Utilities).
64. Yard drainage system (Major Utilities).
65. Yard lighting system (Major Utilities).
66. Yard surfacing, gravel, concrete, or oil. (First cost only.)
(Major Utilities)
Note: Structures and Improvements accounts shall be credited with
the cost of coal bunkers, stacks, foundations, subways, tunnels, etc.,
the use of which has terminated with the removal of the equipment with
which they are associated even though they have not been physically
removed.
9. Equipment.
A. The cost of equipment chargeable to the electric plant accounts,
unless otherwise indicated in the text of an equipment account, includes
the net purchase price thereof, sales taxes, investigation and
inspection expenses necessary to such purchase, expenses of
transportation when borne by the utility, labor employed, materials and
supplies consumed, and expenses incurred by the utility in unloading and
placing the equipment in readiness to operate. Also include those costs
incurred in connection with the first clearing and grading of land and
rights-of-way and the damage costs associated with construction and
installation of plant.
B. Exclude from equipment accounts hand and other portable tools,
which are likely to be lost or stolen or which have relatively small
value (for example, $500 or less) or short life, unless the correctness
of the accounting therefor as electric plant is verified by current
inventories. Special tools acquired and included in the purchase price
of equipment shall be included in the appropriate plant account.
Portable drills and similar tool equipment when used in connection with
the operation and maintenance of a particular plant or department, such
as production, transmission, distribution, etc., or in stores, shall be
charged to the plant account appropriate for their use.
C. The equipment accounts shall include angle irons and similar items
which are installed at the base of an item of equipment, but piers and
foundations which are designed to be as permanent as the buildings which
house the equipment, or which are constructed as a part of the building
and which cannot be removed without cutting into the walls, ceilings or
floors or without in some way impairing the building, shall be included
in the building accounts.
D. The equipment accounts shall include the necessary costs of
testing or running a plant or parts thereof during an experimental or
test period prior to such plant becoming ready for or placed in service.
In the case of Nonmajor utilities, the utility shall pay the fee
prescribed in part 381 of this chapter and shall furnish the Commission
with full particulars of and justification for any test or experimental
run extending beyond a period of 30 days. In the case of Major
utilities, the utility shall furnish the Commission with full
particulars of and justification for any test or experimental run
extending beyond a period of 120 days for nuclear plant, and a period of
90 days for all other plant. Such particulars shall include a detailed
operational and downtime log showing days of production, gross kilowatts
generated by hourly increments, types, and periods of outages by hours
with explanation thereof, beginning with the first date the equipment
was either tested or synchronized on the line to the end of the test
period.
E. The cost of efficiency or other tests made subsequent to the date
equipment becomes available for service shall be charged to the
appropriate expense accounts, except that tests to determine whether
equipment meets the specifications and requirements as to efficiency,
performance, etc., guaranteed by manufacturers, made after operations
have commenced and within the period specified in the agreement or
contract of purchase may be charged to the appropriate electric plant
account.
10. Additions and Retirements of Electric Plant.
A. For the purpose of avoiding undue refinement in accounting for
additions to and retirements and replacements of electric plant, all
property shall be considered as consisting of (1) retirement units and
(2) minor items of property. Each utility shall use such list of
retirement units as is in use by it at the effective date hereof or as
may be prescribed by the Commission, with the option, however, of using
smaller units, provided the utility's practice in this respect is
consistent.
B. The addition and retirement of retirement units shall be accounted
for as follows:
(1) When a retirement unit is added to electric plant, the cost
thereof shall be added to the appropriate electric plant account, except
that when units are acquired in the acquisition of any electric plant
constituting an operating system, they shall be accounted for as
provided in electric plant instruction 5.
(2) When a retirement unit is retired from electric plant, with or
without replacement, the book cost thereof shall be credited to the
electric plant account in which it is included, determined in the manner
set forth in paragraph D, below. If the retirement unit is of a
depreciable class, the book cost of the unit retired and credited to
electric plant shall be charged to the accumulated provision for
depreciation applicable to such property. The cost of removal and the
salvage shall be charged or credited, as appropriate, to such
depreciation account.
C. The addition and retirement of minor items of property shall be
accounted for as follows:
(1) When a minor item of property which did not previously exist is
added to plant, the cost thereof shall be accounted for in the same
manner as for the addition of a retirement unit, as set forth in
paragraph B(1), above, if a substantial addition results, otherwise the
charge shall be to the appropriate maintenance expense account.
(2) When a minor item of property is retired and not replaced, the
book cost thereof shall be credited to the electric plant account in
which it is included; and, in the event the minor item is a part of
depreciable plant, the account for accumulated provision for
depreciation shall be charged with the book cost and cost of removal and
credited with the salvage. If, however, the book cost of the minor item
retired and not replaced has been or will be accounted for by its
inclusion in the retirement unit of which it is a part when such unit is
retired, no separate credit to the property account is required when
such minor item is retired.
(3) When a minor item of depreciable property is replaced
independently of the retirement unit of which it is a part, the cost of
replacement shall be charged to the maintenance account appropriate for
the item, except that if the replacement effects a substantial
betterment (the primary aim of which is to make the property affected
more useful, more efficient, of greater durability, or of greater
capacity), the excess cost of the replacement over the estimated cost at
current prices of replacing without betterment shall be charged to the
appropriate electric plant account.
D. The book cost of electric plant retired shall be the amount at
which such property is included in the electric plant accounts,
including all components of construction costs. The book cost shall be
determined from the utility's records and if this cannot be done it
shall be estimated. When it is impracticable to determine the book cost
of each unit, due to the relatively large number or small cost thereof,
an appropriate average book cost of the units, with due allowance for
any differences in size and character, shall be used as the book cost of
the units retired.
E. The book cost of land retired shall be credited to the appropriate
land account. If the land is sold, the difference between the book cost
(less any accumulated provision for depreciation or amortization
therefore which has been authorized and provided) and the sale price of
the land (less commissions and other expenses of making the sale) shall
be recorded in account 411.6, Gains from Disposition of Utility Plant,
or 411.7, Losses from Disposition of Utility Plant when the property has
been recorded in account 105, Electric Plant Held for Future Use,
otherwise to accounts 421.1, Gain on Disposition of Property or 421.2,
Loss on Disposition of Property, as appropriate. If the land is not
used in utility service but is retained by the utility, the book cost
shall be charged to account 105, Electric Plant Held for Future Use, or
account 121, Nonutility Property, as appropriate.
F. The book cost less net salvage of depreciable electric plant
retired shall be charged in its entirety to account 108. Accumulated
Provision for Depreciation of Electric Plant in Service (Account 110,
Accumulated Provision for Depreciation and Amortization of Electric
Utility Plant, in the case of Nonmajor utilities). Any amounts which,
by approval or order of the Commission, are charged to account 182.1,
Extraordinary Property Losses, shall be credited to account 108 (Account
110 for Nonmajor utilities).
G. In the case of Major utilities, the accounting for the retirement
of amounts included in account 302, Franchises and Consents, and account
303, Miscellaneous Intangible Plant, and the items of limited-term
interest in land included in the accounts for land and land rights,
shall be as provided for in the text of account 111. Accumulated
Provision for Amortization of Electric Plant in Service, account 404,
Amortization of Limited-Term Electric Plant, and account 405,
Amortization of Other Electric Plant.
11. Work Order and Property Record System Required.
A. Each utility shall record all construction and retirements of
electric plant by means of work orders or job orders. Separate work
orders may be opened for additions to and retirements of electric plant
or the retirements may be included with the construction work order,
provided, however, that all items relating to the retirements shall be
kept separate from those relating to construction and provided, further,
that any maintenance costs involved in the work shall likewise be
segregated.
B. Each utility shall keep its work order system so as to show the
nature of each addition to or retirement of electric plant, the total
cost thereof, the source or sources of costs, and the electric plant
account or accounts to which charged or credited. Work orders covering
jobs of short duration may be cleared monthly.
C. In the case of Major utilities, each utility shall maintain
records in which, for each plant account, the amounts of the annual
additions and retirements, subsequent to the effective date of this
system of accounts, are classified so as to show the number and cost of
the various record units or retirement units.
12. Transfers of Property.
When property is transferred from one electric plant account to
another, from one utility department to another, such as from electric
to gas, from one operating division or area to another, to or from
accounts 101, Electric Plant in Service, 104. Electric Plant Leased to
Others, 105. Electric Plant Held for Future Use, and 121, Nonutility
Property, the transfer shall be recorded by transferring the original
cost thereof from the one account, department, or location to the other.
Any related amounts carried in the accounts for accumulated provision
for depreciation or amortization shall be transferred in accordance with
the segregation of such accounts.
13. Common Utility Plant.
A. If the utility is engaged in more than one utility service, such
as electric, gas, and water, and any of its utility plant is used in
common for several utility services or for other purposes to such an
extent and in such manner that it is impracticable to segregate it by
utility services currently in the accounts, such property, with the
approval of the Commission, may be designated and classified as common
utility plant.
B. The book amount of utility plant designated as common plant shall
be included in account 118, Other Utility Plant, and if applicable in
part to the electric department, shall be segregated and accounted for
in subaccounts as electric plant is accounted for in accounts 101 to
107, inclusive, and electric plant adjustments in account 116; any
amounts classifiable as common plant acquisition adjustments or common
plant adjustments shall be subject to disposition as provided in
paragraphs C and B of accounts 114 and 116, respectively, for amounts
classified in those accounts. The original cost of common utility plant
in service shall be classified according to detailed utility plant
accounts appropriate for the property.
C. The utility shall be prepared to show at any time and to report to
the Commission annually, or more frequently, if required, and by utility
plant accounts (301 to 399) the following: (1) The book cost of common
utility plant, (2) The allocation of such cost to the respective
departments using the common utility plant, and (3) The basis of the
allocation.
D. The accumulated provision for depreciation and amortization of the
utility shall be segregated so as to show the amount applicable to the
property classified as common utility plant.
E. The expenses of operation, maintenance, rents, depreciation and
amortization of common utility plant shall be recorded in the accounts
prescribed herein, but designated as common expenses, and the allocation
of such expenses to the departments using the common utility plant shall
be supported in such manner as to reflect readily the basis of
allocation used.
14. Transmission and Distribution Plant.
For the purpose of this system of accounts:
A. Transmission system means:
(1) All land, conversion structures, and equipment employed at a
primary source of supply (i.e., generating station, or point of receipt
in the case of purchased power) to change the voltage or frequency of
electricity for the purpose of its more efficient or convenient
transmission;
(2) All land, structures, lines, switching and conversion stations,
high tension apparatus, and their control and protective equipment
between a generating or receiving point and the entrance to a
distribution center or wholesale point; and
(3) All lines and equipment whose primary purpose is to augment,
integrate or tie together the sources of power supply
B. Distribution system means all land, structures, conversion
equipment, lines, line transformers, and other facilities employed
between the primary source of supply (i.e., generating station, or point
of receipt in the case of purchased power) and of delivery to customers,
which are not includible in transmission system, as defined in paragraph
A, whether or not such land, structures, and facilities are operated as
part of a transmission system or as part of a distribution system.
Note: Stations which change electricity from transmission to
distribution voltage shall be classified as distribution stations.
C. Where poles or towers support both transmission and distribution
conductors, the poles, towers, anchors, guys, and rights of way shall be
classified as transmission system. The conductors, crossarms, braces,
grounds, tiewire, insulators, etc., shall be classified as transmission
or distribution facilities, according to the purpose for which used.
D. Where underground conduit contains both transmission and
distribution conductors, the underground conduit and right of way shall
be classified as distribution system. The conductors shall be
classified as transmission or distribution facilities according to the
purpose for which used.
E. Land (other than rights of way) and structures used jointly for
transmission and distribution purposes shall be classified as
transmission or distribution according to the major use thereof.
15. Hydraulic production plant (Major Utilities).
For the purpose of this system of accounts hydraulic production plant
means all land and land rights, structures and improvements used in
connection with hydraulic power generation, reservoirs dams and
waterways, water wheels, turbines, generators, accessory electric
equipment, miscellaneous powerplant equipment, roads, railroads, and
bridges, and structures and improvements used in connection with fish
and wildlife, and recreation.
16. Nuclear Fuel Records Required (Major Utilities).
Each utility shall keep all the necessary records to support the
entries to the various nuclear fuel plant accounts classified under
''Assets and Other Debits,'' Utility Plant 120.1 through 120.6,
inclusive, account 518, Nuclear Fuel Expense and account 157, Nuclear
Materials Held for Sale. These records shall be so kept as to readily
furnish the basis of the computation of the net nuclear fuel costs.
18 CFR 50.1 Operating Expense Instructions
1. Supervision and Engineering (Major Utilities).
The supervision and engineering includible in the operating expense
accounts shall consist of the pay and expenses of superintendents,
engineers, clerks, other employees and consultants engaged in
supervising and directing the operation and maintenance of each utility
function. Wherever allocations are necessary in order to arrive at the
amount to be included in any account, the method and basis of allocation
shall be reflected by underlying records.
1. Special tests to determine efficiency of equipment operation.
2. Preparing or reviewing budgets, estimates, and drawings relating
to operation or maintenance for departmental approval.
3. Preparing instructions for operations and maintenance activities.
4. Reviewing and analyzing operating results.
5. Establishing organizational setup of departments and executing
changes therein.
6. Formulating and reviewing routines of departments and executing
changes therein.
7. General training and instruction of employees by supervisors whose
pay is chargeable hereto. Specific instruction and training in a
particular type of work is chargeable to the appropriate functional
account (See Electric Plant Instruction 3(19)).
8. Secretarial work for supervisory personnel, but not general
clerical and stenographic work chargeable to other accounts.
9. Consultants' fees and expenses.
10. Meals, traveling and incidental expenses.
2. Maintenance.
A. The cost of maintenance chargeable to the various operating
expense and clearing accounts includes labor, materials, overheads and
other expenses incurred in maintenance work. A list of work operations
applicable generally to utility plant is included hereunder. Other work
operations applicable to specific classes of plant are listed in
functional maintenance expense accounts.
B. Materials recovered in connection with the maintenance of property
shall be credited to the same account to which the maintenance cost was
charged.
C. If the book cost of any property is carried in account 102,
Electric Plant Purchased or Sold, the cost of maintaining such property
shall be charged to the accounts for maintenance of property of the same
class and use, the book cost of which is carried in other electric plant
in service accounts. Maintenance of property leased from others shall
be treated as provided in operating expense instruction 3.
1. Direct field supervision of maintenance.
2. Inspecting, testing, and reporting on condition of plant
specifically to determine the need for repairs, replacements,
rearrangements and changes and inspecting and testing the adequacy of
repairs which have been made.
3. Work performed specifically for the purpose of preventing failure,
restoring serviceability or maintaining life of plant.
4. Rearranging and changing the location of plant not retired.
5. Repairing for reuse materials recovered from plant.
6. Testing for locating and clearing trouble.
7. Net cost of installing, maintaining, and removing temporary
facilities to prevent interruptions in service.
8. Replacing or adding minor items of plant which do not constitute a
retirement unit. (See electric plant instruction 10.)
3. Rents.
A. The rent expense accounts provided under the several functional
groups of expense accounts shall include all rents, including taxes paid
by the lessee on leased property, for property used in utility
operations, except (1) minor amounts paid for occasional or infrequent
use of any property or equipment and all amounts paid for use of
equipment that, if owned, would be includible in plant accounts 391 to
398, inclusive, which shall be treated as an expense item and included
in the appropriate functional account and (2) rents which are chargeable
to clearing accounts, and distributed therefrom to the appropriate
account. If rents cover property used for more than one function, such
as production and transmission, or by more than one department, the
rents shall be apportioned to the appropriate rent expense or clearing
accounts of each department on an actual, or, if necessary, an estimated
basis.
B. When a portion of property or equipment rented from others for use
in connection with utility operations is subleased, the revenue derived
from such subleasing shall be credited to the rent revenue account in
operating revenues; provided, however, that in case the rent was
charged to a clearing account, amounts received from subleasing the
property shall be credited to such clearing account.
C. The cost, when incurred by the lessee, of operating and
maintaining leased property, shall be charged to the accounts
appropriate for the expense if the property were owned.
D. The cost incurred by the lessee of additions and replacements to
electric plant leased from others shall be accounted for as provided in
electric plant instruction 6.
4. Training Costs.
When it is necessary that employees be trained to specifically
operate or maintain plant facilities that are being constructed, the
related costs shall be accounted for as a current operating and
maintenance expense. These expenses shall be charged to the appropriate
functional accounts currently as they are incurred. However, when the
training costs involved relate to facilities which are not conventional
in nature, or are new to the company's operations, then see Electric
Plant Instruction 3(19), for accounting.
Balance Sheet Chart of Accounts
101 Electric plant in service.
101.1 Property under capital leases.
102 Electric plant purchased or sold.
103 Experimental electric plant unclassified (Major only).
103.1 Electric plant in process of reclassification (Nonmajor only).
104 Electric plant leased to others.
105 Electric plant held for future use.
106 Completed construction not classified -- Electric (Major only).
107 Construction work in progress -- Electric.
108 Accumulated provision for depreciation of electric utility plant
(Major only).
109 (Reserved)
110 Accumulated provision for depreciation and amortization of
electric utility plant (Nonmajor only).
111 Accumulated provision for amortization of electric utility plant
(Major only).
112 -- 113 (Reserved)
114 Electric plant acquisition adjustments.
115 Accumulated provision for amortization of electric plant
acquisition adjustments (Major only).
116 Other electric plant adjustments.
118 Other utility plant.
119 Accumulated provision for depreciation and amortization of other
utility plant.
120.1 Nuclear fuel in process of refinement, conversion, enrichment
and fabrication (Major only).
120.2 Nuclear fuel materials and assemblies -- Stock account (Major
only).
120.3 Nuclear fuel assemblies in reactor (Major only).
120.4 Spent nuclear fuel (Major only).
120.5 Accumulated provision for amortization of nuclear fuel
assemblies (Major only).
120.6 Nuclear fuel under capital leases (Major only).
121 Nonutility property.
122 Accumulated provision for depreciation and amortization of
nonutility property.
123 Investment in associated companies (Major only).
123.1 Investment in subsidiary companies (Major only).
124 Other investments.
125 Sinking funds (Major only).
126 Depreciation fund (Major only).
127 Amortization fund -- Federal (Major only).
128 Other special funds (Major only).
129 Special funds (Nonmajor only).
130 Cash and working funds (Nonmajor only).
131 Cash (Major only).
132 Interest special deposits (Major only).
133 Dividend special deposits (Major only).
134 Other special deposits (Major only).
135 Working funds (Major only).
136 Temporary cash investments.
141 Notes receivable.
142 Customer accounts receivable.
143 Other accounts receivable.
144 Accumulated provision for uncollectible accounts -- credit.
145 Notes receivable from associated companies.
146 Accounts receivable from associated companies.
151 Fuel stock (Major only).
152 Fuel stock expenses undistributed (Major only).
153 Residuals (Major only).
154 Plant materials and operating supplies.
155 Merchandise (Major only).
156 Other materials and supplies (Major only).
157 Nuclear materials held for sale (Major only).
163 Stores expense undistributed (Major only).
165 Prepayments.
171 Interest and dividends receivable (Major only).
172 Rents receivable (Major only).
173 Accrued utility revenues (Major only).
174 Miscellaneous current and accrued assets.
181 Unamortized debt expense.
182.1 Extraordinary property losses.
182.2 Unrecovered plant and regulatory study costs.
183 Preliminary survey and investigation charges (Major only).
184 Clearing accounts (Major only).
185 Temporary facilities (Major only).
186 Miscellaneous deferred debits.
187 Deferred losses from disposition of utility plant.
188 Research, development, and demonstration expenditures (Major
only).
189 Unamortized loss on reacquired debt.
190 Accumulated deferred income taxes.
201 Common stock issued.
202 Common stock subscribed (Major only).
203 Common stock liability for conversion (Major only).
204 Preferred stock issued.
205 Preferred stock subscribed (Major only).
206 Preferred stock liability for conversion (Major only).
207 Premium on capital stock (Major only).
208 Donations received from stockholders (Major only).
209 Reduction in par or stated value of capital stock (Major only).
210 Gain on resale or cancellation of reacquired capital stock (Major
only).
211 Miscellaneous paid-in capital.
212 Installments received on capital stock.
213 Discount on capital stock.
214 Capital stock expense.
215 Appropriated retained earnings.
215.1 Appropriated retained earnings -- Amortization reserve,
Federal.
216 Unappropriated retained earnings.
216.1 Unappropriated undistributed subsidiary earnings (Major only).
217 Reacquired capital stock.
218 Noncorporate proprietorship (Nonmajor only).
221 Bonds.
222 Reacquired bonds (Major only).
223 Advances from associated companies.
224 Other long-term debt.
225 Unamortized premium on long-term debt.
226 Unamortized discount on long-term debt -- Debit.
227 Obligations under capital lease -- noncurrent.
228.1 Accumulated provision for property insurance.
228.2 Accumulated provision for injuries and damages.
228.3 Accumulated provision for pensions and benefits.
228.4 Accumulated miscellaneous operating provisions.
229 Accumulated provision for rate refunds.
231 Notes payable.
232 Accounts payable.
233 Notes payable to associated companies.
234 Accounts payable to associated companies.
235 Customer deposits.
236 Taxes accrued.
237 Interest accrued.
238 Dividends declared (Major only).
239 Matured long-term debt (Major only).
240 Matured interest (Major only).
241 Tax collections payable (Major only).
242 Miscellaneous current and accrued liabilities.
243 Obligations under capital leases -- current.
251 (Reserved)
252 Customer advances for construction.
253 Other deferred credits.
255 Accumulated deferred investment tax credits.
256 Deferred gains from disposition of utility plant.
257 Unamortized gain on reacquired debt.
281 Accumulated deferred income taxes -- Accelerated amortization
property.
282 Accumulated deferred income taxes -- Other property.
283 Accumulated deferred income taxes -- Other.
18 CFR 50.1 Balance Sheet Accounts
101 Electric plant in service (Major only).
A. This account shall include the original cost of electric plant,
included in accounts 301 to 399, prescribed herein, owned and used by
the utility in its electric utility operations, and having an
expectation of life in service of more than one year from date of
installation, including such property owned by the utility but held by
nominees. (See also account 106 for unclassified construction costs of
completed plant actually in service.)
B. The cost of additions to and betterments of property leased from
others, which are includible in this account, shall be recorded in
subdivisions separate and distinct from those relating to owned
property. (See electric plant instruction 6.)
101.1 Property under capital leases.
A. This account shall include the amount recorded under capital
leases for plant leased from others and used by the utility in its
utility operations.
B. The electric property included in this account shall be classified
separately according to the detailed accounts (301 to 399) prescribed
for electric plant in service.
C. Records shall be maintained with respect to each capital lease
reflecting: (1) name of lessor, (2) basic details of lease, (3)
terminal date, (4) original cost or fair market value of property
leased, (5) future minimum lease payments, (6) executory costs, (7)
present value of minimum lease payments, (8) the amount representing
interest and the interest rate used, and (9) expenses paid.
102 Electric plant purchased or sold.
A. This account shall be charged with the cost of electric plant
acquired as an operating unit or system by purchase, merger,
consolidation liquidation, or otherwise, and shall be credited with the
selling price of like property transferred to others pending the
distribution to appropriate accounts in accordance with electric plant
instruction 5.
B. Within six months from the date of acquisition or sale of property
recorded herein, the utility shall file with the Commission the proposed
journal entries to clear from this account the amounts recorded herein.
103 Experimental electric plant unclassified (Major only).
A. This account shall include the cost of electric plant which was
constructed as a research, development, and demonstration plant under
the provisions of paragraph C, Account 107, Construction Work in
Progress -- Electric, and due to the nature of the plant it is desirous
to operate it for a period of time in an experimental status.
B. Amounts in this account shall be transferred to Account 101,
Electric Plant in Service, or Account 121, Nonutility Property as
appropriate when the project is no longer considered as experimental.
C. The depreciation on property in this account shall be charged to
Account 403, Depreciation Expense, and credited to Account 108,
Accumulated Provision for Depreciation of Electric Utility Plant. The
amounts herein shall be depreciated over a period which would correspond
to the estimated useful life of the relevant project considering the
characteristics involved. However, when projects are transferred to
Account 101, Electric Plant in Service, a new depreciation rate based on
the remaining service life and undepreciated amounts, will be
established.
D. Records shall be maintained with respect to each unit of
experiment so that full details may be obtained as to the cost,
depreciation and the experimental status.
E. Should it be determined that experimental plant recorded in this
account will fail to satisfactorily perform its function, the costs
thereof shall be accounted for as directed or authorized by the
Commission.
103.1 Electric plant in process of reclassification (Nonmajor only).
A. This account shall include temporarily the balance of electric
plant as of the effective date of the prior system of accounts, which
has not yet been reclassified as of the effective date of this system of
accounts. The detail or primary accounts in support of this account
employed prior to such date shall be continued pending reclassification
into the electric plant accounts herein prescribed (301-399), but shall
not be used for additions, betterments, or new construction.
B. No charges other than as provided in paragraph A, above, shall be
made to this account, but retirements of such unclassified electric
plant shall be credited hereto and to the supporting (old) fixed capital
accounts until the reclassification shall have been accomplished.
104 Electric plant leased to others.
A. This account shall include the original cost of electric plant
owned by the utility, but leased to others as operating units or
systems, where the lessee has exclusive possession.
B. The property included in this account shall be classified
according to the detailed accounts (301 to 399) prescribed for electric
plant in service and this account shall be maintained in such detail as
though the property were used by the owner in its utility operations.
105 Electric plant held for future use.
A. This account shall include the original cost of electric plant
(except land and land rights) owned and held for future use in electric
service under a definite plan for such use, to include: (1) Property
acquired (except land and land rights) but never used by the utility in
electric service, but held for such service in the future under a
definite plan, and (2) property (except land and land rights) previously
used by the utility in service, but retired from such service and held
pending its reuse in the future, under a definite plan, in electric
service.
B. This account shall also include the original cost of land and land
rights owned and held for future use in electric service under a plan
for such use, to include land and land rights: (1) Acquired but never
used by the utility in electric service, but held for such service in
the future under a plan, and (2) previously held by the utility in
service, but retired from such service and held pending its reuse in the
future under a plan, in electric service. (See Electric Plant
Instruction 7.)
C. In the event that property recorded in this account shall no
longer be needed or appropriate for future utility operations, the
company shall request Commission approval of journal entries to remove
such property from this account when the gain realized from the sale or
other disposition of the property is $100,000 or more, prior to their
being recorded. Such filings shall include the description and original
cost of individual properties removed from this account, the accounts
charged upon removal, and any associated gains realized upon disposition
of such property.
D. Gains or losses from the sale of land and land rights or other
disposition of such property previously recorded in this account and not
placed in utility service shall be recorded directly in accounts 411.6
or 411.7, as appropriate, except when determined to be significant by
the Commission. Upon such a determination, the amounts shall be
transferred to account 256, Deferred Gains from Disposition of Utility
Plant, or account 187, Deferred Losses from Disposition of Utility
Plant, and amortized to accounts 411.6, Gains from Disposition of
Utility Plant, or 411.7, Losses from Disposition of Utility Plant, as
appropriate.
E. The property included in this account shall be classified
according to the detail accounts (301 to 399) prescribed for electric
plant in service and the account shall be maintained in such detail as
though the property were in service.
Note: Materials and supplies, meters and transformers held in
reserve, and normal spare capacity of plant in service shall not be
included in this account.
106 Completed construction not classified -- Electric (Major only).
At the end of the year or such other date as a balance sheet may be
required by the Commission, this account shall include the total of the
balances of work orders for electric plant which has been completed and
placed in service but which work orders have not been classified for
transfer to the detailed electric plant accounts.
Note: For the purpose of reporting to the Commission the
classification of electric plant in service by accounts is required, the
utility shall also report the balance in this account tentatively
classified as accurately as practicable according to prescribed account
classifications. The purpose of this provision is to avoid any
significant omissions in reported amounts of electric plant in service.
107 Construction work in progress -- Electric.
A. This account shall include the total of the balances of work
orders for electric plant in process of construction.
B. Work orders shall be cleared from this account as soon as
practicable after completion of the job. Further, if a project, such as
a hydroelectric project, a steam station or a transmission line, is
designed to consist of two or more units or circuits which may be placed
in service at different dates, any expenditures which are common to and
which will be used in the operation of the project as a whole shall be
included in electric plant in service upon the completion and the
readiness for service of the first unit. Any expenditures which are
identified exclusively with units of property not yet in service shall
be included in this account.
C. Expenditures on research, development, and demonstration projects
for construction of utility facilities are to be included in a separate
subdivision in this account. Records must be maintained to show
separately each project along with complete detail of the nature and
purpose of the research, development, and demonstration project together
with the related costs.
108 Accumulated provision for depreciation of electric utility plant
(Major only).
A. This account shall be credited with the following:
(1) Amounts charged to account 403, Depreciation Expense, or to
clearing accounts for current depreciation expense for electric plant in
service.
(2) Amounts charged to account 421, Miscellaneous Nonoperating
Income, for depreciation expense on property included in account 105,
Electric Plant Held for Future Use. Include, also, the balance of
accumulated provision for depreciation on property when transferred to
account 105, Electric Plant Held for Future Use, from other property
accounts. Normally account 108 will not be used for current
depreciation provisions because, as provided herein, the service life
during which depreciation is computed commences with the date property
is includible in electric plant in service; however, if special
circumstances indicate the propriety of current accruals for
depreciation, such charges shall be made to account 421, Miscellaneous
Nonoperating Income.
(3) Amounts charged to account 413, Expenses of Electric Plant Leased
to Others, for electric plant included in account 104, Electric Plant
Leased to Others.
(4) Amounts charged to account 416, Costs and Expenses of
Merchandising, Jobbing, and Contract Work, or to clearing accounts for
current depreciation expense.
(5) Amounts of depreciation applicable to electric properties
acquired as operating units or systems. (See electric plant instruction
5.)
(6) Amounts charged to account 182, Extraordinary Property Losses,
when authorized by the Commission.
(7) Amounts of depreciation applicable to electric plant donated to
the utility.
(The utility shall maintain separate subaccounts for depreciation
applicable to electric plant in service, electric plant leased to others
and electric plant held for future use.)
B. At the time of retirement of depreciable electric utility plant,
this account shall be charged with the book cost of the property retired
and the cost of removal and shall be credited with the salvage value and
any other amounts recovered, such as insurance. When retirement, costs
of removal and salvage are entered originally in retirement work orders,
the net total of such work orders may be included in a separate
subaccount hereunder. Upon completion of the work order, the proper
distribution to subdivisions of this account shall be made as provided
in the following paragraph.
C. For general ledger and balance sheet purposes, this account shall
be regarded and treated as a single composite provision for
depreciation. For purposes of analysis, however, each utility shall
maintain subsidiary records in which this account is segregated
according to the following functional classification for electric plant:
(1) Steam production, (2) Nuclear production, (3) Hydraulic production,
(4) Other production, (5) Transmission, (6) Distribution, and (7)
General. These subsidiary records shall reflect the current credits and
debits to this account in sufficient detail to show separately for each
such functional classification (a) the amount of accrual for
depreciation, (b) the book cost of property retired, (c) cost of
removal, (d) salvage, and (e) other items, including recoveries from
insurance.
D. When transfers of plant are made from one electric plant account
to another, or from or to another utility department, or from or to
nonutility property accounts, the accounting for the related accumulated
provision for depreciation shall be as provided in electric plant
instruction 12.
E. The utility is restricted in its use of the accumulated provision
for depreciation to the purposes set forth above. It shall not transfer
any portion of this account to retained earnings or make any other use
thereof without authorization by the Commission.
109 (Reserved)
110 Accumulated provision for depreciation and amortization of
electric utility plant (Nonmajor only).
A. This account shall be credited with the following:
(1) Amounts charged to account 403 Depreciation Expense, to account
404 Amortization of Limited-Term Electric Plant, to account 405,
Amortization of Other Electric Plant, to account 413, Expenses of
Electric Plant Leased to Others, to account 416. Costs and Expenses of
Merchandising, Jobbing and Contract Work, or to clearing accounts for
currently accruing depreciation and amortization.
(2) Amounts of depreciation applicable to electric properties
acquired as operating units or systems. (See electric plant instruction
4.)
(3) Amounts chargeable to account 182, Extraordinary Property Losses,
when authorized by the Commission.
(4) Amounts of depreciation applicable to electric plant donated to
the utility.
B. At the time of retirement of electric plant, this account shall be
charged with the book cost of the property retired and the cost of
removal, and shall be credited with the salvage value and any other
amounts recovered, such as insurance. When retirements, cost of removal
and salvage are entered originally in retirement work orders, the net
total of such work orders may be included in a separate subaccount
hereunder. Upon completion of the work order, the proper distribution
to subdivisions of this account shall be made as provided in the
following paragraph.
C. For general ledger and balance sheet purposes, this account shall
be regarded and treated as a single composite provision for
depreciation. This account shall be subdivided to show the amount
applicable to Electric Plant in Service, Electric Plant Leased to
Others, and Electric Plant Held for Future Use. These subsidiary
records shall show the current credits and debits to this account in
sufficient detail to show separately for each subdivision, (1) the
amount of accrual for depreciation or amortization, (2) the book cost of
property retired, (3) cost of removal, (4) salvage and (5) other items,
including recoveries from insurance.
D. When transfers of plant are made from one electric plant account
to another, or form or to nonutility property, the accounting shall be
as provided in electric plant instruction 10.
E. The utility is restricted in its use of the accumulated provision
for depreciation to the purposes set forth above. It shall not transfer
any portion of this account to retained earnings or make any other use
thereof without authorization by the Commission.
111 Accumulated provision for amortization of electric utility plant
(Major only).
A. This account shall be credited with the following:
(1) Amounts charged to account 404, Amortization of Limited-Term
Electric Plant, for the current amortization of limited-term electric
plant investments.
(2) Amounts charged to account 421, Miscellaneous Nonoperating
Income, for amortization expense on property included in account 105,
Electric Plant Held for Future Use. Include also the balance of
accumulated provision for amortization on property when transferred to
account 105, Electric Plant Held for Future Use, from other property
accounts. See also paragraph A(2), account 108, Accumulated Provision
for Depreciation of Electric Utility Plant.
(3) Amounts charged to account 405, Amortization of Other Electric
Plant.
(4) Amounts charged to account 413, Expenses of Electric Plant Leased
to Others, for the current amortization of limited-term or other
investments subject to amortization included in account 104, Electric
Plant Leased to Others.
(5) Amounts charged to account 425, Miscellaneous Amortization, for
the amortization of intangible or other electric plant which does not
have a definite or terminable life and is not subject to charges for
depreciation expense, with Commission approval.
(The utility shall maintain subaccounts of this account for the
amortization applicable to electric plant in service, electric plant
leased to others and electric plant held for future use.)
B. When any property to which this account applies is sold,
relinquished, or otherwise retired from service, this account shall be
charged with the amount previously credited in respect to such property.
The book cost of the property so retired less the amount chargeable to
this account and less the net proceeds realized at retirement shall be
included in account 421.1, Gain on Disposition of Property, or account
421.2, Loss on Disposition of Property, as appropriate.
C. For general ledger and balance sheet purposes, this account shall
be regarded and treated as a single composite provision for
amortization. For purposes of analysis, however, each utility shall
maintain subsidiary records in which this account is segregated
according to the following functional classification for electric plant:
(1) Steam production, (2) nuclear production, (3) hydraulic production,
(4) other production, (5) transmission, (6) distribution, and (7)
general. These subsidiary records shall reflect the current credits and
debits to this account in sufficient detail to show separately for each
such functional classification (a) the amount of accrual for
amortization, (b) the book cost of property retired, (c) cost of
removal, (d) salvage, and (e) other items, including recoveries from
insurance.
D. The utility is restricted in its use of the accumulated provision
for amortization to the purposes set forth above. It shall not transfer
any portion of this account to retained earnings or make any other use
thereof without authorization by the Commission.
112 -- 113 (Reserved)
114 Electric plant acquisition adjustments.
A. This account shall include the difference between (1) the cost to
the accounting utility of electric plant acquired as an operating unit
or system by purchase, merger, consolidation, liquidation, or otherwise,
and (2) the original cost, estimated, if not known, of such property,
less the amount or amounts credited by the accounting utility at the
time of acquisition to accumulated provisions for depreciation and
amortization and contributions in aid of construction with respect to
such property.
B. With respect to acquisitions after the effective date of this
system of accounts, this account shall be subdivided so as to show the
amounts included herein for each property acquisition and to electric
plant in service, electric plant held for future use, and electric plant
leased to others. (See electric plant instruction 5.)
C. Debit amounts recorded in this account related to plant and land
acquisition may be amortized to account 425, Miscellaneous Amortization,
over a period not longer than the estimated remaining life of the
properties to which such amounts relate. Amounts related to the
acquisition of land only may be amortized to account 425 over a period
of not more than 15 years. Should a utility wish to account for debit
amounts in this account in any other manner, it shall petition the
Commission for authority to do so. Credit amounts recorded in this
account shall be accounted for as directed by the Commission.
115 Accumulated provision for amortization of electric plant
acquisition adjustments (Major only).
This account shall be credited or debited with amounts which are
includible in account 406. Amortization of Electric Plant Acquisition
Adjustments or account 425, Miscellaneous Amortization, for the purpose
of providing for the extinguishment of amounts in account 114, Electric
Plant Acquisition Adjustments, in instances where the amortization of
account 114 is not being made by direct write-off of the account.
116 Other electric plant adjustments.
A. This account shall include the difference between the original
cost, estimated if not known, and the book cost of electric plant to the
extent that such difference is not properly includible in account 114,
Electric Plant Acquisition Adjustments. (See electric plant instruction
1C).
B. Amounts included in this account shall be classified in such
manner as to show the origin of each amount and shall be disposed of as
the Commission may approve or direct.
Note: The provisions of this account shall not be construed as
approving or authorizing the recording of appreciation of electric
plant.
118 Other utility plant.
This account shall include the balances in accounts for utility
plant, other than electric plant, such as gas, railway, etc.
119 Accumulated provision for depreciation and amortization of other
utility plant.
This account shall include the accumulated provision for depreciation
and amortization applicable to utility property other than electric
plant.
120.1 Nuclear fuel in process of refinement, conversion, enrichment
and fabrication (Major only).
A. This account shall include the original cost to the utility of
nuclear fuel materials while in process of refinement, conversion,
enrichment, and fabrication into nuclear fuel assemblies and components,
including processing, fabrication, and necessary shipping costs. This
account shall also include the salvage value of nuclear materials which
are actually being reprocessed for use and were transferred from account
120.5, Accumulated Provision for Amortization of Nuclear Fuel
Assemblies. (See definition 20.)
B. This account shall be credited and account 120.2, Nuclear Fuel
Materials and Assemblies -- Stock Account, shall be debited for the cost
of completed fuel assemblies delivered for use in refueling or to be
held as spares. In the case of the initial core loading, the transfer
shall be made directly to account 120.3, Nuclear Fuel Assemblies in
Reactor, upon the conclusion of the experimental or test period of the
plant prior to its becoming available for service.
1. Cost of natural uranium, uranium ores concentrates or other
nuclear fuel sources, such as thorium, plutonium, and U-233.
2. Value of recovered nuclear materials being reprocessed for use.
3. Milling process costs.
4. Sampling and weighing, and assaying costs.
5. Purification and conversion process costs.
6. Costs of enrichment by gaseous diffusion or other methods.
7. Costs of fabrication into fuel forms suitable for insertion in the
reactor.
8. All shipping costs of materials and components, including shipping
of fabricated fuel assemblies to the reactor site.
9. Use charges on leased nuclear materials while in process of
refinement, conversion, enrichment, and fabrication.
120.2 Nuclear fuel materials and assemblies -- Stock account (Major
only).
A. This account shall be debited and account 120.1, Nuclear Fuel in
Process of Refinement, Conversion, Enrichment, and Fabrication, shall be
credited with the cost of fabricated fuel assemblies delivered for use
in refueling or to be carried in stock as spares. It shall also include
the original cost of fabricated fuel assemblies purchased in completed
form. This account shall also include the original cost of partially
irradiated fuel assemblies being held in stock for reinsertion in a
reactor which had been transferred from account 120.3, Nuclear Fuel
Assemblies in Reactor.
B. When fuel assemblies included in this account are inserted in a
reactor, this account shall be credited and account 120.3, Nuclear Fuel
Assemblies in Reactor, debited for the cost of such assemblies.
C. This account shall also include the cost of nuclear materials and
byproduct materials being held for future use and not actually in
process in account 120.1, Nuclear Fuel in Process of Refinement,
Conversion, Enrichment, and Fabrication.
120.3 Nuclear fuel assemblies in reactor (Major only).
A. This account shall include the cost of nuclear fuel assemblies
when inserted in a reactor for the production of electricity. The
amounts included herein shall be transferred from account 120.2, Nuclear
Fuel Materials and Assemblies -- Stock Account, except for the initial
core loading which will be transferred directly from account 120.1.
B. Upon removal of fuel assemblies from a reactor, the original cost
of the assemblies removed shall be transferred to account 120.4, Spent
Nuclear Fuel or account 120.2, Nuclear Fuel Materials and Assemblies --
Stock Account, as appropriate.
120.4 Spent nuclear fuel (Major only).
A. This account shall include the original cost of nuclear fuel
assemblies, in the process of cooling, transferred from account 120.3,
Nuclear Fuel Assemblies in Reactor, upon removal from a reactor pending
reprocessing.
B. This account shall be credited and account 120.5, Accumulated
Provision for Amortization of Nuclear Fuel Assemblies, debited for fuel
assemblies, after the cooling period is over, at the cost recorded in
this account.
120.5 Accumulated provision for amortization of nuclear fuel
assemblies (Major only).
A. This account shall be credited and account 518, Nuclear fuel
expense shall be debited for the amortization of the net cost of nuclear
fuel assemblies used in the production of energy. The net cost of
nuclear fuel assemblies subject to amortization shall be the original
cost of nuclear fuel assemblies, plus or less the expected net salvage
value of uranium, plutonium, and other by-products.
B. This account shall be credited with the net salvage value of
uranium, plutonium, and other nuclear by-products when such items are
sold, transferred or otherwise disposed of. Account 120.1, Nuclear Fuel
in Process of Refinement, Conversion, Enrichment, and Fabrication, shall
be debited with the net salvage value of nuclear materials to be
reprocessed. Account 157, Nuclear Materials Held for Sale shall be
debited for the net salvage value of nuclear materials not to be
reprocessed but to be sold or otherwise disposed of and account 120.2,
will be debited with the net salvage value of nuclear materials that
will be held for future use and not actually in process, in account
120.1, Nuclear Fuel in Process of Refinement, Conversion, Enrichment,
and Fabrication.
C. This account shall be debited and account 120.4, Spent Nuclear
Fuel, shall be credited with the cost of fuel assemblies at the end of
the cooling period.
120.6 Nuclear fuel under capital leases (Major only).
A. This account shall include the amount recorded under capital
leases for nuclear fuel leased from others for use by the utility in its
utility operations.
B. Records shall be maintained with respect to each capital lease
reflecting: (1) Name of lessor, (2) basic details of lease, (3)
terminal date, (4) original cost or fair market value of nuclear fuel
leased, (5) future minimum lease payments, (6) executory costs, (7)
present value of minimum lease payments, (8) the amount representing
interest and the interest rate used, and (9) expenses paid.
121 Nonutility property.
A. This account shall include the book cost of land, structures,
equipment, or other tangible or intangible property owned by the
utility, but not used in utility service and not properly includible in
account 105, Electric Plant Held for Future Use.
B. This account shall also include the amount recorded under capital
leases for property leased from others and used by the utility in its
nonutility operations. Records shall be maintained with respect to each
lease reflecting: (1) name of lessor, (2) basic details of lease, (3)
terminal date, (4) original cost or fair market value of property
leased, (5) future minimum lease payments, (6) executory costs, (7)
present value of minimum lessee payments, (8) the amount representing
interest and the interest rate used, and (9) expenses paid.
C. This account shall be subdivided so as to show the amount of
property used in operations which are nonutility in character but
nevertheless constitute a distinct operating activity of the company
(such as operation of an ice department where such activity is not
classed as a utility) and the amount of miscellaneous property not used
in operations. The records in support of each subaccount shall be
maintained so as to show an appropriate classification of the property.
Note: The gain from the sale or other disposition of property
included in this account which had been previously recorded in account
105, Electric Plant Held for Future Use, shall be accounted for in
accordance with paragraph C of account 105.
122 Accumulated provision for depreciation and amortization of
nonutility property.
This account shall include the accumulated provision for depreciation
and amortization applicable to nonutility property.
123 Investment in associated companies (Major only).
A. This account shall include the book cost of investments in
securities issued or assumed by associated companies and investment
advances to such companies, including interest accrued thereon when such
interest is not subject to current settlement, provided that the
investment does not relate to a subsidiary company. (If the investment
relates to a subsidiary company it shall be included in account 123.1,
Investment in Subsidiary Companies.) Include herein the offsetting entry
to the recording of amortization of discount or premium on interest
bearing investments. (See account 419, Interest and Dividend Income.)
B. This account shall be maintained in such manner as to show the
investment in securities of, and advances to, each associated company
together with full particulars regarding any of such investments that
are pledged.
Note A: Securities and advances of associated companies owned and
pledged shall be included in this account, but such securities, if held
in special deposits or in special funds, shall be included in the
appropriate deposit or fund account. A complete record of securities
pledged shall be maintained
Note B: Securities of associated companies held as temporary cash
investments are includible in account 136, Temporary Cash Investments.
Note C: Balances in open accounts with associated companies, which
are subject to current settlement, are includible in account 146,
Accounts Receivable from Associated Companies.
Note D: The utility may write down the cost of any security in
recognition of a decline in the value thereof. Securities shall be
written off or written down to a nominal value if there is no reasonable
prospect of substantial value. Fluctuations in market value shall not
be recorded but a permanent impairment in the value of securities shall
be recognized in the accounts. When securities are written off or
written down, the amount of the adjustment shall be charged to account
426.5, Other Deductions, or to an appropriate account for accumulated
provisions for loss in value established as a separate subdivision of
this account.
123.1 Investment in subsidiary companies (Major only).
A. This account shall include the cost of investments in securities
issued or assumed by subsidiary companies and investment advances to
such companies, including interest accrued thereon when such interest is
not subject to current settlement plus the equity in undistributed
earnings or losses of such subsidiary companies since acquisition. This
account shall be credited with any dividends declared by such
subsidiaries.
B. This account shall be maintained in such a manner as to show
separately for each subsidiary: the cost of such investments in the
securities of the subsidiary at the time of acquisition; the amount of
equity in the subsidiary's undistributed net earnings or net losses
since acquisition; advances or loans to such subsidiary; and full
particulars regarding any such investments that are pledged.
124 Other investments.
A. This account shall include the book cost of investments in
securities issued or assumed by nonassociated companies, investment
advances to such companies, and any investments not accounted for
elsewhere. Include also the offsetting entry to the recording of
amortization of discount or premium on interest bearing investments.
(See account 419, Interest and Dividend Income.)
B. The cost of capital stock of the utility reacquired by it under a
definite plan for resale pursuant to authorization by the Board of
Directors may, if permitted by statutes, be included in a separate
subdivision of this account. (See also account 210, Gain on Resale or
Cancellation of Reacquired Capital Stock, and account 217, Reacquired
Capital Stock.)
C. The records shall be maintained in such manner as to show the
amount of each investment and the investment advances to each person.
Note A: Securities owned and pledged shall be included in this
account, but securities held in special deposits or in special funds
shall be included in appropriate deposit or fund accounts. A complete
record of securities pledged shall be maintained.
Note B: Securities held as temporary cash investments shall not be
included in this account.
Note C: Special funds. See Note D of account 123.
125 Sinking funds (Major only).
This account shall include the amount of cash and book cost of
investments held in sinking funds. A separate account, with appropriate
title, shall be kept for each sinking fund. Transfers from this account
to special deposit accounts, may be made as necessary for the purpose of
paying matured sinking-fund obligations, or obligations called for
redemption but not presented, or the interest thereon.
126 Depreciation fund (Major only).
This account shall include the amount of cash and the book cost of
investments which have been segregated in a special fund for the purpose
of identifying such assets with the accumulated provisions for
depreciation.
127 Amortization fund -- Federal (Major only).
This account shall include the amount of cash and book cost of
investments of any fund maintained pursuant to the requirements of a
federal regulatory body, and the cash and investments segregated for the
purpose of identifying the specific assets associated with account
215.1, Appropriated Retained Earnings -- Amortization Reserve, Federal.
128 Other special funds (Major only).
This account shall include the amount of cash and book cost of
investments which have been segregated in special funds for insurance,
employee pensions, savings, relief, hospital, and other purposes not
provided for elsewhere. A separate account with appropriate title,
shall be kept for each fund.
Note: Amounts deposited with a trustee under the terms of an
irrevocable trust agreement for pensions or other employee benefits
shall not be included in this account.
Special Instructions for Current and Accrued Assets. Current and
accrued assets are cash, those assets which are readily convertible into
cash or are held for current use in operations or construction, current
claims against others, payment of which is reasonably assured, and
amounts accruing to the utility which are subject to current settlement,
except such items for which accounts other than those designated as
current and accrued assets are provided. There shall not be included in
the group of accounts designated as current and accrued assets any item,
the amount or collectibility of which is not reasonably assured, unless
an adequate provision for possible loss has been made therefor. Items
of current character but of doubtful value may be written down and for
record purposes carried in these accounts at nominal value.
129 Special funds (Nonmajor only).
This account shall include the amount of cash and book cost of
investments which have been segregated in special funds for bond
retirements, property additions and replacements, insurance, employees'
pensions, savings, relief, hospital, and other purposes not provided for
elsewhere. A separate account, with appropriate title, shall be kept
for each fund.
Note A: Amounts deposited with a trustee under the terms of an
irrevocable trust agreement for pensions or other employees benefits
shall not be included in this account.
Note B: Licensees under the Federal Power Act which are required to
establish an amortization fund under terms of the license shall provide
a special subdivision of this account for the purpose of accounting for
and identifying the cash, investments or other specific assets
associated with account 215.1, Appropriated Retained Earnings --
Amortization Reserve, Federal.
Special Instructions for Current and Accrued Assets. Current and
accrued assets are cash, those assets which are readily convertible into
cash or are held for current use in operations or construction, current
claims against others, payment of which is reasonably assured, and
amounts accruing to the utility which are subject to current settlement,
except such items for which accounts other than those designated as
current and accrued assets are provided. There shall not be included in
the group of accounts designated as current and accrued assets any item,
the amount or collectibility of which is not reasonably assured, unless
an adequate provision for possible loss has been made therefor. Items
of current character but of doubtful value may be written down and for
record purposes carried in these accounts at nominal value.
130 Cash and working funds (Nonmajor only).
This account shall include the amount of cash on hand and in banks
and cash advanced to officers, agents, employees, and others as petty
cash or working funds. Special cash deposits for payment of interest,
dividends or other special purposes shall be included in this account in
separate subdivisions which shall specify the purpose for which each
such special deposit is made.
Note: Special Deposits for more than one year which are not offset
by current liabilities, shall not be charged to this account but to
account 125, Special Funds.
131 Cash (Major only).
This account shall include the amount of current cash funds except
working funds.
132 Interest special deposits (Major only).
This account shall include special deposits with fiscal agents or
others for the payment of interest.
133 Dividend special deposits (Major only).
This account shall include special deposits with fiscal agents or
others for the payment of dividends.
134 Other special deposits (Major only).
This account shall include deposits with fiscal agents or others for
special purposes other than the payment of interest and dividends. Such
special deposits may include cash deposited with federal, state, or
municipal authorities as a guaranty for the fulfillment of obligations;
cash deposited with trustees to be held until mortgaged property sold,
destroyed, or otherwise disposed of is replaced; cash realized from the
sale of the accounting utility's securities and deposited with trustees
to be held until invested in property of the utility, etc. Entries to
this account shall specify the purpose for which the deposit is made.
Note: Assets available for general corporate purposes shall not be
included in this account. Further, deposits for more than one year,
which are not offset by current liabilities, shall not be charged to
this account but to account 128, Other Special Funds.
135 Working funds (Major only).
This account shall include cash advanced to officers, agents,
employees, and others as petty cash or working funds.
136 Temporary cash investments.
A. This account shall include the book cost of investments, such as
demand and time loans, bankers' acceptances, United States Treasury
certificates, marketable securities, and other similar investments,
acquired for the purpose of temporarily investing cash.
B. This account shall be so maintained as to show separately
temporary cash investments in securities of associated companies and of
others. Records shall be kept of any pledged investments.
141 Notes receivable.
This account shall include the book cost, not includible elsewhere,
of all collectible obligations in the form of notes receivable and
similar evidences (except interest coupons) of money due on demand or
within one year from the date of issue, except, however, notes
receivable from associated companies. (See account 136, Temporary Cash
Investments, and account 145, Notes Receivable from Associated
Companies.)
Note: The face amount of notes receivable discounted, sold, or
transferred without releasing the utility from liability as endorser
thereon, shall be credited to a separate subdivision of this account and
appropriate disclosure shall be made in financial statements of any
contingent liability arising from such transactions.
142 Customer accounts receivable.
A. This account shall include amounts due from customers for utility
service, and for merchandising, jobbing and contract work. This account
shall not include amounts due from associated companies.
B. This account shall be maintained so as to permit ready segregation
of the amounts due for merchandising, jobbing and contract work.
143 Other accounts receivable.
A. This account shall include amounts due the utility upon open
accounts, other than amounts due from associated companies and from
customers for utility services and merchandising, jobbing and contract
work.
B. This account shall be maintained so as to show separately amounts
due on subscriptions to capital stock and from officers and employees,
but the account shall not include amounts advanced to officers or others
as working funds. (See account 135, Working Funds.)
144 Accumulated provision for uncollectible accounts -- credit.
A. This account shall be credited with amounts provided for losses on
accounts receivable which may become uncollectible, and also with
collections on accounts previously charged hereto. Concurrent charges
shall be made to account 904, Uncollectible Accounts, for amounts
applicable to utility operations, and to corresponding accounts for
other operations. Records shall be maintained so as to show the
write-offs of account receivable for each utility department.
B. This account shall be subdivided to show the provision applicable
to the following classes of accounts receivable:
Utility customers.
Merchandising, jobbing and contract work.
Officers and employees.
Others.
Note A: Accretions to this account shall not be made in excess of a
reasonable provision against losses of the character provided for.
Note B: If provisions for uncollectible notes receivable or for
uncollectible receivables from associated companies are necessary,
separate subaccounts therefor shall be established under the account in
which the receivable is carried.
145 Notes receivable from associated companies.
146 Accounts receivable from associated companies.
These accounts shall include notes and drafts upon which associated
companies are liable, and which mature and are expected to be paid in
full not later than one year from the date of issue, together with any
interest thereon, and debit balances subject to current settlement in
open accounts with associated companies. Items which do not bear a
specified due date but which have been carried for more than twelve
months and items which are not paid within twelve months from due date
shall be transferred to account 123, Investment in Associated Companies.
Note A: On the balance sheet, accounts receivable from an associated
company may be set off against accounts payable to the same company.
Note B: The face amount of notes receivable discounted, sold or
transferred without releasing the utility from liability as endorser
thereon, shall be credited to a separate subdivision of this account and
appropriate disclosure shall be made in financial statements of any
contingent liability arising from such transactions.
151 Fuel stock (Major only).
This account shall include the book cost of fuel on hand.
1. Invoice price of fuel less any cash or other discounts.
2. Freight, switching, demurrage and other transportation charges,
not including, however, any charges for unloading from the shipping
medium.
3. Excise taxes, purchasing agents' commissions, insurance and other
expenses directly assignable to cost of fuel.
4. Operating, maintenance and depreciation expenses and ad valorem
taxes on utility-owned transportation equipment used to transport fuel
from the point of acquisition to the unloading point.
5. Lease or rental costs of transportation equipment used to
transport fuel from the point of acquisition to the unloading point.
152 Fuel stock expenses undistributed (Major only).
A. This account may include the cost of labor and of supplies used
and expenses incurred in unloading fuel from the shipping medium and in
the handling thereof prior to its use, if such expenses are sufficiently
significant in amount to warrant being treated as a part of the cost of
fuel inventory rather than being charged direct to expense as incurred.
B. Amounts included herein shall be charged to expense as the fuel is
used to the end that the balance herein shall not exceed the expenses
attributable to the inventory of fuel on hand.
Labor:
1. Procuring and handling of fuel.
2. All routine fuel analyses.
3. Unloading from shipping facility and putting in storage.
4. Moving of fuel in storage and transferring from one station to
another.
5. Handling from storage or shipping facility to first bunker,
hopper, bucket, tank or holder of boiler house structure.
6. Operation of mechanical equipment, such as locomotives, trucks,
cars, boats, barges, cranes, etc.
Supplies and Expenses:
7. Tools, lubricants and other supplies.
8. Operating supplies for mechanical equipment.
9. Transportation and other expenses in moving fuel.
10. Stores expenses applicable to fuel.
153 Residuals (Major only).
This account shall include the book cost of any residuals produced in
production or manufacturing processes.
154 Plant materials and operating supplies.
A. This account shall include the cost of materials purchased
primarily for use in the utility business for construction, operation
and maintenance purposes. For Nonmajor utilities, this account shall
include the cost of fuel on hand and unapplied materials and supplies
(except meters and house regulators). For both Major and Nonmajor
utilities, it shall include also the book cost of materials recovered in
connection with construction, maintenance or the retirement of property,
such materials being credited to construction, maintenance or
accumulated depreciation provision, respectively, and included herein as
follows:
(1) Reusable materials consisting of large individual items shall be
included in this account at original cost, estimated if not known. The
cost of repairing such items shall be charged to the maintenance account
appropriate for the previous use.
(2) Reusable materials consisting of relatively small items, the
identity of which (from the date of original installation to the final
abandonment or sale thereof) cannot be ascertained without undue
refinement in accounting, shall be included in this account at current
prices new for such items. The cost of repairing such items shall be
charged to the appropriate expense account as indicated by previous use.
(3) Scrap and nonusable materials included in this account shall be
carried at the estimated net amount realizable therefrom. The
difference between the amounts realized for scrap and nonusable
materials sold and the net amount at which the materials were carried in
this account, as far as practicable, shall be adjusted to the accounts
credited when the materials were charged to this account.
B. Materials and supplies issued shall be credited hereto and charged
to the appropriate construction, operating expense, or other account on
the basis of a unit price determined by the use of cumulative average,
first-in-first-out, or such other method of inventory accounting as
conforms with accepted accounting standards consistently applied.
C. For Nonmajor utilities, inventories of materials, supplies, fuel,
etc., shall be taken at least annually and the necessary adjustments
shall be made to bring this account into agreement with the actual
inventories. In effecting the adjustments, large differences which can
be assigned to important classes of materials shall be equitably
adjusted among the accounts to which such classes of materials have been
charged since the previous inventory. Other differences shall be
equitably apportioned among the accounts to which materials have been
charged.
1. Invoice price of materials less cash or other discounts.
2. Freight, switching or other transportation charges when
practicable to include as part of the cost of particular materials to
which they relate.
3. Customs duties and excise taxes.
4. Costs of inspection and special tests prior to acceptance.
5. Insurance and other directly assignable charges.
Note A: Where expenses applicable to materials purchased cannot be
directly assigned to particular purchases, they may be charged to a
stores expense clearing account (account 163, Stores Expense
Undistributed, in the case of Major utilities), and distributed
therefrom to the appropriate account.
Note B: When materials and supplies are purchased for immediate use,
they need not be carried through this account but may be charged
directly to the appropriate utility plant or expense account.
155 Merchandise (Major only).
This account shall include the book cost of materials and supplies
and appliances and equipment held primarily for merchandising, jobbing
and contract work. The principles prescribed in accounting for utility
materials and supplies shall be observed in respect to items carried in
this account.
156 Other materials and supplies (Major only).
This account shall include the book cost of materials and supplies
held primarily for nonutility purposes. The principles prescribed in
accounting for utility materials and supplies shall be observed in
respect to items carried in this account.
157 Nuclear materials held for sale (Major only).
This account shall include the net salvage value of uranium,
plutonium and other nuclear materials held by the company for sale or
other disposition and that are not to be reused by the company in its
electric utility operations. This account shall be debited and account
120.5, Accumulated Provision for Amortization of Nuclear Fuel
Assemblies, credited for such net salvage value. Any difference between
the amount recorded in this account and the actual amount realized from
the sale of materials shall be debited or credited, as appropriate, to
account 518, Nuclear Fuel Expense at the time of such sale.
163 Stores expense undistributed (Major only).
A. This account shall include the cost of supervision, labor and
expenses incurred in the operation of general storerooms, including
purchasing, storage, handling and distribution of materials and
supplies.
B. This account shall be cleared by adding to the cost of materials
and supplies issued a suitable loading charge which will distribute the
expense equitably over stores issues. The balance in the account at the
close of the year shall not exceed the amount of stores expenses
reasonably attributable to the inventory of materials and supplies
exclusive of fuel, as any amount applicable to fuel costs should be
included in account 152, Fuel Stock Expenses Undistributed.
Labor:
1. Inspecting and testing materials and supplies when not assignable
to specific items.
2. Unloading from shipping facility and putting in storage.
3. Supervision of purchasing and stores department to extent
assignable to materials handled through stores.
4. Getting materials from stock and in readiness to go out.
5. Inventorying stock received or stock on hand by stores employees
but not including inventories by general department employees as part of
internal or general audits.
6. Purchasing department activities in checking material needs,
investigating sources of supply, analyzing prices, preparing and placing
orders, and related activities to extent applicable to materials handled
through stores. (Optional. Purchasing department expenses may be
included in administrative and general expenses.)
7. Maintaining stores equipment.
8. Cleaning and tidying storerooms and stores offices.
9. Keeping stock records, including recording and posting of material
receipts and issues and maintaining inventory record of stock.
10. Collecting and handling scrap materials in stores.
Supplies and expenses:
11. Adjustments of inventories of materials and supplies but not
including large differences which can readily be assigned to important
classes of materials and equitably distributed among the accounts to
which such classes of materials have been charged since the previous
inventory.
12. Cash and other discounts not practically assignable to specific
materials.
13. Freight, express, etc., when not assignable to specific items.
14. Heat, light and power for storerooms and store offices.
15. Brooms, brushes, sweeping compounds and other supplies used in
cleaning and tidying storerooms and stores offices.
16. Injuries and damages.
17. Insurance on materials and supplies and on stores equipment.
18. Losses due to breakage, leakage, evaporation, fire or other
causes, less credits for amounts received from insurance, transportation
companies or others in compensation of such losses.
19. Postage, printing, stationery and office supplies.
20. Rent of storage space and facilities.
21. Communication service.
22. Excise and other similar taxes not assignable to specific
materials.
23. Transportation expense on inward movement of stores and on
transfer between storerooms but not including charges on materials
recovered from retirements which shall be accounted for as part of cost
of removal.
Note: A physical inventory of each class of materials and supplies
shall be made at least every two years.
165 Prepayments.
This account shall include amounts representing prepayments of
insurance, rents, taxes, interest and miscellaneous items, and shall be
kept or supported in such manner as to disclose the amount of each class
of prepayment.
171 Interest and dividends receivable (Major only).
This account shall include the amount of interest on bonds,
mortgages, notes, commercial paper, loans, open accounts, deposits,
etc., the payment of which is reasonably assured, and the amount of
dividends declared or guaranteed on stocks owned.
Note A: Interest which is not subject to current settlement shall
not be included herein but in the account in which is carried the
principal on which the interest is accrued.
Note B: Interest and dividends receivable from associated companies
shall be included in account 146, Accounts receivable from associated
companies.
172 Rents receivable (Major only).
This account shall include rents receivable or accrued on property
rented or leased by the utility to others.
Note: Rents receivable from associated companies shall be included
in account 146, Accounts Receivable from Associated Companies.
173 Accrued utility revenues (Major only).
At the option of the utility, the estimated amount accrued for
service rendered, but not billed at the end of any accounting period,
may be included herein. In case accruals are made for unbilled
revenues, they shall be made likewise for unbilled expenses, such as for
the purchase of energy.
174 Miscellaneous current and accrued assets.
This account shall include the book cost of all other current and
accrued assets, appropriately designated and supported so as to show the
nature of each asset included herein.
181 Unamortized debt expense.
This account shall include expenses related to the issuance or
assumption of debt securities. Amounts recorded in this account shall
be amortized over the life of each respective issue under a plan which
will distribute the amount equitably over the life of the security. The
amortization shall be on a monthly basis, and the amounts thereof shall
be charged to account 428, Amortization of Debt Discount and Expense.
Any unamortized amounts outstanding at the time that the related debt is
prematurely reacquired shall be accounted for as indicated in General
Instruction 17.
182.1 Extraordinary property losses.
A. When authorized or directed by the Commission, this account shall
include extraordinary losses, which could not reasonably have been
anticipated and which are not covered by insurance or other provisions,
such as unforeseen damages to property.
B. Application to the Commission for permission to use this account
shall be accompanied by a statement giving a complete explanation with
respect to the items which it is proposed to include herein, the period
over which, and the accounts to which it is proposed to write off the
charges, and other pertinent information.
182.2 Unrecovered plant and regulatory study costs.
A. This account shall include: (1) Nonrecurring costs of studies and
analyses mandated by regulatory bodies related to plants in service,
transferred from account 183, Preliminary Survey and Investigation
Charges, and not resulting in construction; and (2) when authorized by
the Commission, significant unrecovered costs of plant facilities where
construction has been cancelled or which have been prematurely retired.
B. This account shall be credited and account 407, Amortization of
Property Losses, Unrecovered Plant and Regulatory Study Costs, shall be
debited over the period specified by the Commission.
C. Any additional costs incurred, relative to the cancellation or
premature retirement, may be included in this account and amortized over
the remaining period of the original amortization period. Should any
gains or recoveries be realized relative to the cancelled or prematurely
retired plant, such amounts shall be used to reduce the unamortized
amount of the costs recorded herein.
D. In the event that the recovery of costs included herein is
disallowed in the rate proceedings, the disallowed costs shall be
charged to account 426.5, Other Deductions, or account 435,
Extraordinary Deductions, in the year of such disallowance.
183 Preliminary survey and investigation charges (Major only).
A. This account shall be charged with all expenditures for
preliminary surveys, plans, investigations, etc., made for the purpose
of determining the feasibility of utility projects under contemplation.
If construction results, this account shall be credited and the
appropriate utility plant account charged. If the work is abandoned,
the charge shall be made to account 426.5, Other Deductions, or to the
appropriate operating expense account.
B. This account shall also include costs of studies and analyses
mandated by regulatory bodies related to plant in service. If
construction results from such studies, this account shall be credited
and the appropriate utility plant account charged with an equitable
portion of such study costs directly attributable to new construction.
The portion of such study costs not attributable to new construction or
the entire cost if construction does not result shall be charged to
account 182.2, Unrecovered Plant and Regulatory Costs, or the
appropriate operating expense account. The costs of such studies
relative to plant under construction shall be included directly in
account 107, Construction Work in Progress-Electric.
C. The records supporting the entries to this account shall be so
kept that the utility can furnish complete information as to the nature
and the purpose of the survey, plans, or investigations and the nature
and amounts of the several charges.
Note: The amount of preliminary survey and investigation charges
transferred to utility plant shall not exceed the expenditures which may
reasonably be determined to contribute directly and immediately and
without duplication to utility plant.
184 Clearing accounts (Major only).
This caption shall include undistributed balances in clearing
accounts at the date of the balance sheet. Balances in clearing
accounts shall be substantially cleared not later than the end of the
calendar year unless items held therein relate to a future period.
185 Temporary facilities (Major only).
This account shall include amounts shown by work orders for plant
installed for temporary use in utility service for periods of less than
one year. Such work orders shall be charged with the cost of temporary
facilities and credited with payments received from customers and net
salvage realized on removal of the temporary facilities. Any net credit
or debit resulting shall be cleared to account 451, Miscellaneous
Service Revenues.
186 Miscellaneous deferred debits.
A. For Major utilities, this account shall include all debits not
elsewhere provided for, such as miscellaneous work in progress, and
unusual or extraordinary expenses, not included in other accounts, which
are in process of amortization and items the proper final disposition of
which is uncertain.
B. For Nonmajor utilities, this account shall include the following
classes of items:
(1) Expenditures for preliminary surveys, plans, investigations,
etc., made for the purpose of determining the feasibility of utility
projects under contemplation. If construction results, this account
shall be credited with the amount applicable thereto and the appropriate
plant accounts shall be charged with an amount which does not exceed the
expenditures which may reasonably be determined to contribute directly
and immediately and without duplication to plant. If the work is
abandoned, the charge shall be to account 426.5, Other Deductions, or to
the appropriate operating expense accounts.
(2) Undistributed balances in clearing accounts at the date of the
balance sheet. Balances in clearing accounts shall be substantially
cleared not later than the end of the calendar year unless items held
therein related to a future period.
(3) Balances representing expenditures for work in progress other
than on utility plant. This includes jobbing and contract work in
progress.
(4) Other debit balances, the proper final disposition of which is
uncertain and unusual or extraordinary expenses not included in other
accounts, which are in process of being written off.
C. For both Major and Nonmajor utilities, the records supporting the
entries to this account shall be so kept that the utility can furnish
full information as to each deferred debit included herein.
187 Deferred losses from disposition of utility plant.
This account shall include losses from the sale or other disposition
of property previously recorded in account 105, Electric Plant held for
Future Use, under the provisions of paragraphs B, C, and D thereof,
where such losses are significant and are to be amortized over a period
of 5 years, unless otherwise authorized by the Commission. The
amortization of the amounts in this account shall be made by debits to
account 411.7, Losses from Disposition of Utility Plant. (See account
105, Electric Plant Held for Future Use.)
188 Research, development and demonstration expenditures (Major
only).
A. This account shall be charged with the cost of all expenditures
coming within the meaning of Research, Development and Demonstration (RD
& D) of this uniform system of accounts (see definition 27.B.), except
those expenditures properly chargeable to account 107, Construction Work
in Progress -- Electric.
B. Costs that are minor or of a general or recurring nature shall be
transferred from this account to the appropriate operating expense
function or if such costs are common to the overall operations or cannot
be feasibly allocated to the various operating accounts, then such costs
shall be recorded in account 930.2, Miscellaneous General Expenses.
C. In certain instances a company may incur large and significant
research, development, and demonstration expenditures which are
nonrecurring and which would distort the annual research, development,
and demonstration charges for the period. In such a case the portion of
such amounts that cause the distortion may be amortized to the
appropriate operating expense account over a period not to exceed 5
years unless otherwise authorized by the Commission.
D. The entries in this account must be so maintained as to show
separately each project along with complete detail of the nature and
purpose of the research, development, and demonstration project together
with the related costs.
189 Unamortized loss on reacquired debt.
This account shall include the losses on long-term debt reacquired or
redeemed. The amounts in this account shall be amortized in accordance
with General Instruction 17.
190 Accumulated deferred income taxes.
A. This account shall be debited and account 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, or account
411.2, Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with an amount equal to
that by which income taxes payable for the year are higher because of
the inclusion of certain items in income for tax purposes, which items
for general accounting purposes will not be fully reflected in the
utility's determination of annual net income until subsequent years.
B. This account shall be credited and account 410.1, Provision for
Deferred Income Taxes, Utility Operating Income, or account 410.2,
Provision for Deferred Income Taxes, Other Income and Deductions, as
appropriate, shall be debited with an amount equal to that by which
income taxes payable for the year are lower because of prior payment of
taxes as provided by paragraph A above, because of difference in timing
for tax purposes of particular items of income or income deductions from
that recognized by the utility for general accounting purposes. Such
credit to this account and debit to account 410.1 or 410.2 shall, in
general, represent the effect on taxes payable in the current year of
the smaller amount of book income recognized for tax purposes as
compared to the amount recognized in the utility's current accounts with
respect to the item or class of items for which deferred tax accounting
by the utility was authorized by the Commission.
C. Vintage year records with respect to entries to this account, as
described above, and the account balance, shall be so maintained as to
show the factor of calculation with respect to each annual amount of the
item or class of items for which deferred tax accounting by the utility
is utilized.
D. The utility is restricted in its use of this account to the
purpose set forth above. It shall not make use of the balance in this
account or any portion thereof except as provided in the text of this
account, without prior approval of the Commission. Any remaining
deferred tax account balance with respect to an amount for any prior
year's tax deferral, the amortization of which or other recognition in
the utility's income accounts has been completed, or other disposition
made, shall be debited to account 410.1, Provision for Deferred Income
Taxes, Utility Operating Income, or account 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate, or
otherwise disposed of as the Commission may authorize or direct. (See
General Instruction 18.)
201 Common stock issued.
202 Common stock subscribed (Major only).
203 Common stock liability for conversion (Major only).
204 Preferred stock issued.
A. These accounts shall include the par value or the stated value of
stock without par value if such stock has a stated value, and, if not,
the cash value of the consideration received for such nonpar stock, of
each class of capital stock actually issued, including the par or stated
value of such capital stock in account 124, Other Investments, and
account 217, Reacquired Capital Stock.
B. When the actual cash value of the consideration received is more
or less than the par or stated value of any stock having a par or stated
value, the difference shall be credited or debited, as the case may be,
to the premium or discount account for the particular class and series.
C. When capital stock is retired, these accounts shall be charged
with the amount at which such stock is carried herein.
D. A separate ledger account, with a descriptive title, shall be
maintained for each class and series of stock. The supporting records
shall show the shares nominally issued, actually issued, and nominally
outstanding.
Note: When a levy or assessment, except a call for payment on
subscriptions, is made against holders of capital stock, the amount
collected upon such levy or assessment shall be credited to account 207,
Premium on Capital Stock (for Nonmajor utilities, account 211,
Miscellaneous Paid-In Capital), provided, however, that the credit shall
be made to account 213, Discount on Capital Stock, to the extent of any
remaining balance of discount on the issue of stock.
205 Preferred stock subscribed (Major only).
A. These accounts shall include the amount of legally enforceable
subscriptions to capital stock of the utility. They shall be credited
with the par or stated value of the stock subscribed, exclusive of
accrued dividends, if any. Concurrently, a debit shall be made to
subscriptions to capital stock, included as a separate subdivision of
account 143, Other Accounts Receivable, for the agreed price, and any
discount or premium shall be debited or credited to the appropriate
discount or premium account. When properly executed stock certificates
have been issued representing the shares subscribed, this account shall
be debited, and the appropriate capital stock account credited, with the
par or stated value of such stock.
B. The records shall be kept in such manner as to show the amount of
subscriptions to each class and series of stock.
206 Preferred stock liability for conversion (Major only).
A. These accounts shall include the par value or stated value, as
appropriate, of capital stock which the utility has agreed to exchange
for outstanding securities of other companies in connection with the
acquisition of properties of such companies under terms which allow the
holders of the securities of the other companies to surrender such
securities and receive in return therefor capital stock of the
accounting utility.
B. When the securities of the other companies have been surrendered
and capital stock issued in accordance with the terms of the exchange,
these accounts shall be charged and accounts 201, Common Stock Issued,
or 204, Preferred Stock Issued, as the case may be, shall be credited.
C. The records shall be kept so as to show separately the stocks of
each class and series for which a conversion liability exists.
207 Premium on capital stock (Major only).
A. This account shall include, in a separate subdivision for each
class and series of stock, the excess of the actual cash value of the
consideration received on original issues of capital stock over the par
or stated value and accrued dividends of such stock, together with
assessments against stockholders representing payments required in
excess of par or stated values.
B. Premium on capital stock shall not be set off against expenses.
Further, a premium received on an issue of a certain class or series of
stock shall not be set off against expenses of another issue of the same
class or series.
C. When capital stock which has been actually issued is retired, the
amount in this account applicable to the shares retired shall be
transferred to account 210, Gain on Resale or Cancellation of Reacquired
Capital Stock.
208 Donations received from stockholders (Major only).
This account shall include the balance of credits for donations
received from stockholders consisting of capital stock of the utility,
cancellation or reduction of debt of the utility, and the cash value of
other assets received as a donation.
209 Reduction in par or stated value of capital stock (Major only).
This account shall include the balance of credits arising from a
reduction in the par or stated value of capital stock.
210 Gain on resale or cancellation of reacquired capital stock (Major
only).
This account shall include the balance of credits arising from the
resale or cancellation of reacquired capital stock. (See account 217.
Reacquired Capital Stock.)
211 Miscellaneous paid-in capital.
This account shall include the balance of all other credits for
paid-in capital which are not properly includible in the foregoing
accounts. This account may include all commissions and expenses
incurred in connection with the issuance of capital stock. (In the case
of Nonmajor companies, this account shall be kept so as to show the
source of the credits includible herein.)
1. Premium received on original issues of capital stock.
2. Donations received from stockholders or reduction of debt of the
utility, and the cash value of other assets received as a donation.
3. Reduction in part or stated value of capital stock.
4. Gain on resale or cancellation of reacquired capital stock.
Note A: (Major utilities) Amounts included in capital surplus at the
effective date of this system of accounts which cannot be classified as
to the source thereof shall be included in this account.
Note B: (Nonmajor utilities) Premium on capital stock shall not be
set off against expenses. Further, a premium received on an issue of a
certain class or series of stock shall not be set off against expense of
another issue of the same class or series.
212 Installments received on capital stock.
A. This account shall include in a separate subdivision for each
class and series of capital stock the amount of installments received on
capital stock on a partial or installment payment plan from subscribers
who are not bound by legally enforceable subscription contracts.
B. As subscriptions are paid in full and certificates issued, this
account shall be charged and the appropriate capital stock account
credited with the par or stated value of such stock. Any discount or
premium on an original issue shall be included in the appropriate
discount or premium account.
213 Discount on capital stock.
A. This account shall include in a separate subdivision for each
class and series of capital stock all discount on the original issuance
and sale of capital stock, including additional capital stock of a
particular class or series as well as first issues.
B. When capital stock which has been actually issued is retired, the
amount in this account applicable to the shares retired shall be written
off to account 210, Gain on Resale or Cancellation of Reacquired Capital
Stock, provided, however, that the amount shall be charged to account
439, Adjustments to Retained Earnings, to the extent that it exceeds the
balance in account 210.
214 Capital stock expense.
A. This account shall include in a separate subdivision for each
class and series of stock all commissions and expenses incurred in
connection with the original issuance and sale of capital stock,
including additional capital stock of a particular class or series as
well as first issues. Expenses applicable to capital stock shall not be
deducted from premium on capital stock.
B. When capital stock which has been actually issued by the utility
is retired the amount in this account, applicable to the shares retired
shall be written off to account 210, Gain on Resale or Cancellation of
Reacquired Capital Stock, provided, however, that the amount shall be
charged to account 439, Adjustments to Retained Earnings, to the extent
that it exceeds the balance in account 210.
Note A: Expenses in connection with the reacquisition or resale of
the utility's capital stock shall not be included herein.
Note B: The utility may write off capital stock expense in whole or
in part by charges to account 211, Miscellaneous Paid-in Capital.
215 Appropriated retained earnings.
This account shall include the amount of retained earnings which has
been appropriated or set aside for specific purposes. Separate
subaccounts shall be maintained under such titles as will designate the
purpose for which each appropriation was made.
215.1 Appropriated retained earnings -- Amortization reserve,
Federal.
A. This account shall be credited with such amounts as are
appropriated by a licensee from account 216, Unappropriated Retained
Earnings, for amortization reserve purposes in accordance with the
requirements of a hydroelectric project license.
B. This account shall be debited with only such items or amounts as
the Commission may require or approve. (See account 127, Amortization
Fund -- Federal.)
216 Unappropriated retained earnings.
This account shall include the balances, either debit or credit, of
unappropriated retained earnings arising from earnings of the utility.
This account shall not include any amounts representing the
undistributed earnings of subsidiary companies.
216.1 Unappropriated undistributed subsidiary earnings (Major only).
This account shall include the balances, either debit or credit, of
undistributed retained earnings of subsidiary companies since their
acquisition. When dividends are received from subsidiary companies
relating to amounts included in this account, this account shall be
debited and account 216, ''Unappropriated Retained Earnings,'' credited.
217 Reacquired capital stock.
A. This account shall include in a separate subdivision for each
class and series of capital stock, the cost of capital stock actually
issued by the utility and reacquired by it and not retired or canceled,
except, however, stock which is held by trustees in sinking or other
funds.
B. When reacquired capital stock is retired or canceled, the
difference between its cost, including commissions and expenses paid in
connection with the reacquisition, and its par or stated value plus any
premium and less any discount and expenses applicable to the shares
retired, shall be debited or credited, as appropriate, to account 210,
Gain on Resale or Cancellation of Reacquired Capital Stock, provided,
however, that debits shall be charged to account 439, Adjustments to
Retained Earnings, to the extent that they exceed the balance in account
210.
C. When reacquired capital stock is resold by the utility, the
difference between the amount received on the resale of the stock, less
expenses incurred in the resale, and the cost of the stock included in
this account shall be accounted for as outlined in paragraph B.
Note A: See account 124. Other Investments, for permissive
accounting treatment of stock reacquired under a definite plan for
resale.
Note B: The accounting for reacquired stock shall be as prescribed
herein unless otherwise specifically required by statute.
218 Noncorporate proprietorship (Nonmajor only).
This account shall include the investment in an unincorporated
utility by the proprietor thereof, and shall be charged with all
withdrawals from the business by its proprietor. At the end of each
calendar year the net income for the year, as developed in the income
account, shall be transferred to this account. (See optional accounting
procedure provided in Note C, hereunder.)
Note A: Amounts payable to the proprietor as just and reasonable
compensation for services performed shall not be charged to this account
but to appropriate operating expense or other accounts.
Note B: When the utility is owned by a partnership, a separate
account shall be kept to show the net equity of each member therein and
the transactions affecting the interest of each such partner.
Note C: This account may be restricted to the amount considered by
the proprietor to be the permanent investment in the business, subject
to change only by additional investment by the proprietor or the
withdrawal of portions thereof not representing net income. When this
option is taken, the retained earnings accounts shall be maintained and
entries thereto shall be made in accordance with the texts thereof.
221 Bonds.
This account shall include in a separate subdivision for each class
and series of bonds the face value of the actually issued and unmatured
bonds which have not been retired or canceled; also the face value of
such bonds issued by others the payment of which has been assumed by the
utility.
222 Reacquired bonds (Major only).
A. This account shall include the face value of bonds actually issued
or assumed by the utility and reacquired by it and not retired or
canceled. The account for reacquired debt shall not include securities
which are held by trustees in sinking or other funds.
B. When bonds are reacquired, the difference between face value,
adjusted for unamortized discount, expenses or premium, and the amount
paid upon reacquisition, shall be included in account 189, Unamortized
Loss on Reacquired Debt, or account 257, Unamortized Gain on Reacquired
Debt, as appropriate. (See General Instruction 17.)
223 Advances from associated companies.
A. This account shall include the face value of notes payable to
associated companies and the amount of open book accounts representing
advances from associated companies. It does not include notes and open
accounts representing indebtedness subject to current settlement which
are includible in account 233. Notes Payable to Associated Companies,
or account 234, Accounts Payable to Associated Companies.
B. The records supporting the entries to this account shall be so
kept that the utility can furnish complete information concerning each
note and open account.
224 Other long-term debt.
A. This account shall include, until maturity all long-term debt not
otherwise provided for. This covers such items as receivers'
certificates, real estate mortgages executed or assumed, assessments for
public improvements, notes and unsecured certificates of indebtedness
not owned by associated companies, receipts outstanding for long-term
debt, and other obligations maturing more than one year from date of
issue or assumption.
B. Separate accounts shall be maintained for each class of
obligation, and records shall be maintained to show for each class all
details as to date of obligation, date of maturity, interest dates and
rates, security for the obligation, etc.
Note: Miscellaneous long-term debt reacquired shall be accounted for
in accordance with the procedure set forth in account 222. Reacquired
Bonds.
225 Unamortized premium on long-term debt.
A. This account shall include the excess of the cash value of
consideration received over the face value upon the issuance or
assumption of long-term debt securities.
B. Amounts recorded in this account shall be amortized over the life
of each respective issue under a plan which will distribute the amount
equitably over the life of the security. The amortization shall be on a
monthly basis, with the amounts thereof to be credited to account 429,
Amortization of Premium on Debt -- Credit. (See General Instruction
17.)
226 Unamortized discount on long-term debt -- Debit.
A. This account shall include the excess of the face value of
long-term debt securities over the cash value of consideration received
therefor, related to the issue or assumption of all types and classes of
debt.
B. Amounts recorded in this account shall be amortized over the life
of the respective issues under a plan which will distribute the amount
equitably over the life of the securities. The amortization shall be on
a monthly basis, with the amounts thereof charged to account 428,
Amortization of Debt Discount and Expense. (See General Instruction
17.)
Special Instructions for Current and Accrued Liabilities. Current
and accrued liabilities are those obligations which have either matured
or which become due within one year from the date thereof: except,
however, bonds, receivers' certificates and similar obligations which
shall be classified as long-term debt until date of maturity; accrued
taxes, such as income taxes, which shall be classified as accrued
liabilities even though payable more than one year from date;
compensation awards, which shall be classified as current liabilities
regardless of date due; and minor amounts payable in installments which
may be classified as current liabilities. If a liability is due more
than one year from date of issuance or assumption by the utility, it
shall be credited to a long-term debt account appropriate for the
transaction, except, however, the current liabilities previously
mentioned.
227 Obligations under capital lease -- noncurrent.
This account shall include the portion not due within one year, of
the obligations recorded for the amounts applicable to leased property
recorded as assets in account 101.1, Property under Capital Leases,
account 120.6, Nuclear Fuel under Capital Leases, or account 121,
Nonutility Property.
18 CFR 50.1 Special Instructions to Accounts 228.1 Through 228.4
No amounts shall be credited to these accounts unless authorized by a
regulatory authority or authorities to be collected in a utility's rate
levels.
228.1 Accumulated provision for property insurance.
A. This account shall include amounts reserved by the utility for
losses through accident, fire, flood, or other hazards to its own
property or property leased from others, not covered by insurance. The
amounts charged to account 924, Property Insurance, or other appropriate
accounts to cover such risks shall be credited to this account. A
schedule of risks covered shall be maintained, giving a description of
the property involved, the character of the risks covered and the rates
used.
B. Charges shall be made to this account for losses covered, not to
exceed the account balance. Details of these charges shall be
maintained according to the year the casualty occurred which gave rise
to the loss.
228.2 Accumulated provision for injuries and damages.
A. This account shall be credited with amounts charged to account
925, Injuries and Damages, or other appropriate accounts, to meet the
probable liability, not covered by insurance, for deaths or injuries to
employees and others and for damages to property neither owned nor held
under lease by the utility.
B. When liability for any injury or damage is admitted by the utility
either voluntarily or because of the decision of a court or other lawful
authority, such as a workmen's compensation board, the admitted
liability shall be charged to this account and credited to the
appropriate current liability account. Details of these charges shall
be maintained according to the year the casualty occurred which gave
rise to the loss.
Note: Recoveries or reimbursements for losses charged to this
account shall be credited hereto; the cost of repairs to property of
others if provided for herein shall be charged to this account.
228.3 Accumulated provision for pensions and benefits.
A. This account shall include provisions made by the utility and
amounts contributed by employees for pensions, accident and death
benefits, savings, relief, hospital and other provident purposes, where
the funds are included in the assets of the utility either in general or
in segregated fund accounts.
B. Amounts paid by the utility for the purposes for which this
liability is established shall be charged hereto.
C. A separate account shall be kept for each kind of provision
included herein.
Note: If employee pension or benefit plan funds are not included
among the assets of the utility but are held by outside trustees,
payments into such funds, or accruals therefor, shall not be included in
this account.
228.4 Accumulated miscellaneous operating provisions.
A. This account shall include all operating provisions which are not
provided for elsewhere.
B. This account shall be maintained in such manner as to show the
amount of each separate provision and the nature and amounts of the
debits and credits thereto.
Note: This account includes only provisions as may be created for
operating purposes and does not include any reservations of income the
credits for which should be carried in account 215, Appropriated
Retained Earnings.
229 Accumulated provision for rate refunds.
A. This account shall be credited with amounts charged to Account
449.1, Provisions for Rate Refunds, to provide for estimated refunds
where the utility is collecting amounts in rates subject to refund.
B. When refund of any amount recorded in this account is ordered by a
regulatory authority, such amount shall be changed hereto and credited
to account 242, Miscellaneous Current and Accrued Liabilities.
C. Records supporting the entries to this account shall be kept so as
to identify each amount recorded by the respective rate filing docket
number.
231 Notes payable.
This account shall include the face value of all notes, drafts,
acceptances, or other similar evidences of indebtedness, payable on
demand or within a time not exceeding one year from date of issue, to
other than associated companies.
232 Accounts payable.
This account shall include all amounts payable by the utility within
one year, which are not provided for in other accounts.
233 Notes payable to associated companies.
234 Accounts payable to associated companies.
These accounts shall include amounts owing to associated companies on
notes, drafts, acceptances, or other similar evidences of indebtedness,
and open accounts payable on demand or not more than one year from date
of issue or creation.
Note: Exclude from these accounts notes and accounts which are
includible in account 223, Advances from Associated Companies.
235 Customer deposits.
This account shall include all amounts deposited with the utility by
customers as security for the payment of bills.
236 Taxes accrued.
A. This account shall be credited with the amount of taxes accrued
during the accounting period, corresponding debits being made to the
appropriate accounts for tax charges. Such credits may be based upon
estimates, but from time to time during the year as the facts become
known, the amount of the periodic credits shall be adjusted so as to
include as nearly as can be determined in each year the taxes applicable
thereto. Any amount representing a prepayment of taxes applicable to
the period subsequent to the date of the balance sheet, shall be shown
under account 165, Prepayments.
B. If accruals for taxes are found to be insufficient or excessive,
correction therefor shall be made through current tax accruals.
C. Accruals for taxes shall be based upon the net amounts payable
after credit for any discounts, and shall not include any amounts for
interest on tax deficiencies or refunds. Interest received on refunds
shall be credited to account 419, Interest and Dividend Income, and
interest paid on deficiencies shall be charged to account 431, Other
Interest Expense.
D. The records supporting the entries to this account shall be kept
so as to show for each class of taxes, the amount accrued, the basis for
the accrual, the accounts to which charged, and the amount of tax paid.
237 Interest accrued.
This account shall include the amount of interest accrued but not
matured on all liabilities of the utility not including, however,
interest which is added to the principal of the debt on which incurred.
Supporting records shall be maintained so as to show the amount of
interest accrued on each obligation.
238 Dividends declared (Major only).
This account shall include the amount of dividends which have been
declared but not paid. Dividends shall be credited to this account when
they become a liability.
239 Matured long-term debt (Major only).
This account shall include the amount of long-term debt (including
any obligation for premiums) matured and unpaid, without specific
agreement for extension of the time of payment and bonds called for
redemption but not presented.
240 Matured interest (Major only).
This account shall include the amount of matured interest on
long-term debt or other obligations of the utility at the date of the
balance sheet unless such interest is added to the principal of the debt
on which incurred.
241 Tax collections payable (Major only).
This account shall include the amount of taxes collected by the
utility through payroll deductions or otherwise pending transmittal of
such taxes to the proper taxing authority.
Note: Do not include liability for taxes assessed directly against
the utility which are accounted for as part of the utility's own tax
expense.
242 Miscellaneous current and accrued liabilities.
This account shall include the amount of all other current and
accrued liabilities not provided for elsewhere appropriately designated
and supported so as to show the nature of each liability.
1. Dividends declared but not paid.
2. Matured long-term debt.
3. Matured interest.
4. Taxes collected through payroll deductions or otherwise pending
transmittal to the proper taxing authority.
243 Obligations under capital leases -- current.
This account shall include the portion, due within one year, of the
obligations recorded for the amounts applicable to leased property
recorded as assets in account 101.1, Property under Capital Leases,
account 120.6, Nuclear Fuel under Capital Leases (Major only), or
account 121, Nonutility Property.
251 (Reserved)
252 Customer advances for construction.
This account shall include advances by customers for construction
which are to be refunded either wholly or in part. When a customer is
refunded the entire amount to which he is entitled, according to the
agreement or rule under which the advance was made, the balance, if any,
remaining in this account shall be credited to the respective plant
account.
253 Other deferred credits.
This account shall include advance billings and receipts and other
deferred credit items, not provided for elsewhere, including amounts
which cannot be entirely cleared or disposed of until additional
information has been received.
255 Accumulated deferred investment tax credits.
A. This account shall be credited with all investment tax credits
deferred by companies which have elected to follow deferral accounting,
partial or full, rather than recognizing in the income statement the
total benefits of the tax credit as realized. After such election, a
company may not transfer amounts from this account, except as authorized
herein and in accounts 411.4, Investment Tax Credit Adjustments, Utility
Operations, 411.5, Investment Tax Credit Adjustments, Nonutility
Operations, and 420, Investment Tax Credits, or with approval of the
Commission.
B. Where the company's accounting provides that investment tax
credits are to be passed on to customers, this account shall be debited
and account 411.4 credited with a proportionate amount determined in
relation to the average useful life of electric utility property to
which the tax credits relate or such lesser period of time as allowed by
a regulatory agency having rate jurisdiction. If, however, the deferral
procedure provides that investment tax credits are not to be passed on
to customers, the proportionate restorations to income shall be credited
to account 420.
C. Subdivisions of this account by department shall be maintained for
deferred investment tax credits that are related to nonelectric utility
or other operations. Contra entries affecting such account subdivisions
shall be appropriately recorded in account 413, Expenses of Electric
Plant Leased to Others; or account 414, Other Utility Operating Income.
Use of deferral or nondeferral accounting procedures adopted for
nonelectric utility or other operations are to be followed on a
consistent basis.
D. Separate records for electric and nonelectric utility or other
operations shall be maintained identifying the properties giving rise to
the investment tax credits for each year with the weighted-average
service life of such properties and any unused balances of such credits.
Such records are not necessary unless the tax credits are deferred.
256 Deferred gains from disposition of utility plant.
This account shall include gains from the sale or other disposition
of property previously recorded in account 105, Electric Plant Held for
Future Use, under the provisions of paragraphs B, C, and D thereof,
where such gains are significant and are to be amortized over a period
of 5 years, unless otherwise authorized by the Commission. The
amortization of the amounts in this account shall be made by credits to
account 411.6, Gains from Disposition of Utility Plant. (See account
105, Electric Plant Held for Future Use.)
257 Unamortized gain on reacquired debt.
This account shall include the amounts of discount realized upon
reacquisition or redemption of long-term debt. The amounts in this
account shall be amortized in accordance with General Instruction 17.
18 CFR 50.1 Special Instructions
18 CFR 50.1 Accumulated Deferred Income Taxes
Before using the deferred tax accounts provided below refer to
General Instruction 18. Comprehensive Interperiod Income Tax
Allocation.
The text of these accounts are designed primarily to cover deferrals
of Federal income taxes. However, they are also to be used when making
deferrals of state and local income taxes. Public utilities and
licensees which, in addition to an electric utility department, have
another utility department, gas, water, etc., and nonutility property
and which have deferred taxes on income with respect thereto shall
separately classify such deferrals in the accounts provided below so as
to allow ready identification of items relating to each utility
Deductions.
281 Accumulated deferred income taxes -- Accelerated amortization
property.
A. This account shall include tax deferrals resulting from adoption
of the principles of comprehensive interperiod tax allocation described
in General Instruction 18 of this system of accounts that relate to
property for which the utility has availed itself of the use of
accelerated (5-year) amortization of (1) certified defense facilities as
permitted by Section 168 of the Internal Revenue Code and (2) certified
pollution control facilities as permitted by Section 169 of the Internal
Revenue Code.
B. This account shall be credited and accounts 410.1, Provision for
Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate,
shall be debited with tax effects related to property described in
paragraph A above where taxable income is lower than pretax accounting
income due to differences between the periods in which revenue and
expense transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income.
C. This account shall be debited and accounts 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, or 411.2,
Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with tax effects related
to property described in paragraph A above where taxable income is
higher than pretax accounting income due to differences between the
periods in which revenue and expense transactions affect taxable income
and the periods in which they enter into the determination of pretax
accounting income.
D. The utility is restricted in its use of this account to the
purposes set forth above. It shall not transfer the balance in this
account or any portion thereof to retained earnings or make any use
thereof except as provided in the text of this account without prior
approval of the Commission. Upon the disposition by sale exchange,
transfer, abandonment or premature retirement of plant on which there is
a related balance herein, this account shall be charged with an amount
equal to the related income tax expense, if any, arising from such
disposition and account 411.1, Provision for Deferred Income Taxes --
Credit, Utility Operating Income, or 411.2, Provision for Deferred
Income Taxes -- Credit, Other Income and Deductions, as appropriate,
shall be credited. When the remaining balance, after consideration of
any related income tax expense, is less than $25,000, this account shall
be charged and account 411.1 or 411.2, as appropriate, credited with
such balance. If after consideration of any related income tax expense,
there is a remaining amount of $25,000 or more, the Commission shall
authorize or direct how such amount shall be accounted for at the time
approval for the disposition of accounting is granted. When plant is
disposed of by transfer to a wholly owned subsidiary the related balance
in this account shall also be transferred. When the disposition relates
to retirement of an item or items under a group method of depreciation
where there is no tax effect in the year of retirement, no entries are
required in this account if it can be determined that the related
balances would be necessary to be retained to offset future group item
tax deficiencies.
282 Accumulated deferred income taxes -- Other property.
A. This account shall include the tax deferrals resulting from
adoption of the principle of comprehensive interperiod income tax
allocation described in General Instruction 18 of this system of
accounts which are related to all property other than accelerated
amortization property.
B. This account shall be credited and accounts 410.1, Provision for
Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate,
shall be debited with tax effects related to property described in
paragraph A above where taxable income is lower than pretax accounting
income due to differences between the periods in which revenue and
expense transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income.
C. This account shall be debited and accounts 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, or 411.2,
Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with tax effects related
to property described in paragraph A above where taxable income is
higher than pretax accounting income due to differences between the
periods in which revenue and expense transactions affect taxable income
and the periods in which they enter into the determination of pretax
accounting income.
D. The utility is restricted in its use of this account to the
purposes set forth above. It shall not transfer the balance in this
account or any portion thereof to retained earnings or make any use
thereof except as provided in the text of this account without prior
approval of the Commission. Upon the disposition by sale, exchange,
transfer, abandonment or premature retirement of plant on which there is
a related balance herein, this account shall be charged with an amount
equal to the related income tax expense, if any, arising from such
disposition and account 411.1, Income Taxes Deferred in Prior Years --
Credit, Utility Operating Income, or 411.2, Income Taxes Deferred in
Prior Years -- Credit, Other Income and Deductions, shall be credited.
When the remaining balance after consideration of any related tax
expenses, is less than $25,000, this account shall be charged and
account 411.1 or 411.2, as appropriate, credited with such balance. If
after consideration of any related income tax expense, there is a
remaining amount of $25,000 or more, the Commission shall authorize or
direct how such amount shall be accounted for at the time approval for
the disposition of accounting is granted. When plant disposed of by
transfer to a wholly owned subsidiary, the related balance in this
account shall also be transferred. When the disposition relates to
retirement of an item or items under a group method of depreciation
where there is no tax effect in the year of retirement, no entries are
required in this account if it can be determined that the related
balance would be necessary to be retained to offset future group item
tax deficiencies.
283 Accumulated deferred income taxes -- Other.
A. This account shall include all credit tax deferrals resulting from
the adoption of the principles of comprehensive interperiod income tax
allocation described in General Instruction 18 of this system of
accounts other than those deferrals which are includible in Accounts
281, Accumulated Deferred Income Taxes -- Accelerated Amortization
Property and 282, Accumulated Deferred Income Taxes -- Other Property.
B. This account shall be credited and accounts 410.1 Provision for
Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate,
shall be debited with tax effects related to items described in
paragraph A above where taxable income is lower than pretax accounting
income due to differences between the periods in which revenue and
expense transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income.
C. This account shall be debited and accounts 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income or 411.2,
Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with tax effects related
to items described in paragraph A above where taxable income is higher
than pretax accounting income due to differences between the periods in
which revenue and expense transactions affect taxable income and the
periods in which they enter into the determination of pretax accounting
income.
D. Records with respect to entries to this account, as described
above, and the account balance, shall be so maintained as to show the
factors of calculation with respect to each annual amount of the item or
class of items.
E. The utility is restricted in its use of this account to the
purposes set forth above. It shall not transfer the balance in the
account or any portion thereof to retained earnings or to any other
account or make any use thereof except as provided in the text of this
account, without prior approval of the Commission. Upon the disposition
by sale, exchange, transfer, abandonment or premature retirement of
items on which there is a related balance herein, this account shall be
charged with an amount equal to the related income tax effect, if any,
arising from such disposition and account 411.1, Provision For Deferred
Income Taxes -- Credit, Utility Operating Income, or 411.2, Provision
For Deferred Income Taxes -- Credit, Other Income and Deductions, as
appropriate, shall be credited. When the remaining balance, after
consideration of any related tax expenses, is less than $25,000, this
account shall be charged and account 411.1 or 411.2, as appropriate,
credited with such balance. If after consideration of any related
income tax expense, there is a remaining amount of $25,000 or more, the
Commission shall authorize or direct how such amount shall be accounted
for at the time approval for the disposition of accounting is granted.
When plant is disposed of by transfer to a wholly owned subsidiary,
the related balance in this account shall also be transferred. When the
disposition relates to retirement of an item or items under a group
method of depreciation where there is no tax effect in the year of
retirement, no entries are required in this account if it can be
determined that the related balance would be necessary to be retained to
offset future group item tax deficiencies.
Electric Plant Chart of Accounts
301 Organization.
302 Franchises and consents.
303 Miscellaneous intangible plant.
310 Land and land rights.
311 Structures and improvements.
312 Boiler plant equipment.
313 Engines and engine-driven generators.
314 Turbogenerator units.
315 Accessory electric equipment.
316 Miscellaneous power plant equipment
320 Land and land rights (Major only).
321 Structures and improvements (Major only).
322 Reactor plant equipment (Major only).
323 Turbogenerator units (Major only).
324 Accessory electric equipment (Major only).
325 Miscellaneous power plant equipment (Major only).
330 Land and land rights.
331 Structures and improvements.
332 Reservoirs, dams, and waterways.
333 Water wheels, turbines and generators.
334 Accessory electric equipment.
335 Miscellaneous power plant equipment.
336 Roads, railroads and bridges.
340 Land and land rights.
341 Structures and improvements.
342 Fuel holders, producers, and accessories.
343 Prime movers.
344 Generators.
345 Accessory electric equipment.
346 Miscellaneous power plant equipment.
350 Land and land rights.
351 (Reserved)
352 Structures and improvements.
353 Station equipment.
354 Towers and fixtures.
355 Poles and fixtures.
356 Overhead conductors and devices.
357 Underground conduit.
358 Underground conductors and devices.
359 Roads and trails.
360 Land and land rights.
361 Structures and improvements.
362 Station equipment.
363 Storage battery equipment.
364 Poles, towers and fixtures.
365 Overhead conductors and devices
366 Underground conduit.
367 Underground conductors and devices
368 Line transformers.
369 Services.
370 Meters.
371 Installations on customers' premises
372 Leased property on customers' premises.
373 Street lighting and signal systems.
389 Land and land rights.
390 Structures and improvements.
391 Office furniture and equipment.
392 Transportation equipment.
393 Stores equipment.
394 Tools, shop and garage equipment.
395 Laboratory equipment.
396 Power operated equipment.
397 Communication equipment.
398 Miscellaneous equipment.
399 Other tangible property.
18 CFR 50.1 Electric Plant Accounts
301 Organization.
This account shall include all fees paid to federal or state
governments for the privilege of incorporation and expenditures incident
to organizing the corporation, partnership, or other enterprise and
putting it into readiness to do business.
1. Cost of obtaining certificates authorizing an enterprise to engage
in the public-utility business.
2. Fees and expenses for incorporation
3. Fees and expenses for mergers or consolidations.
4. Office expenses incident to organizing the utility.
5. Stock and minute books and corporate seal.
Note A: This account shall not include any discounts upon securities
issued or assumed; nor shall it include any costs incident to
negotiating loans, selling bonds or other evidences of debt or expenses
in connection with the authorization, issuance or sale of capital stock.
Note B: Exclude from this account and include in the appropriate
expense account the cost of preparing and filing papers in connection
with the extension of the term of incorporation unless the first
organization costs have been written off. When charges are made to this
account for expenses incurred in mergers, consolidations, or
reorganizations, amounts previously included herein or in similar
accounts in the books of the companies concerned shall be excluded from
this account.
302 Franchises and consents.
A. This account shall include amounts paid to the federal government,
to a state or to a political subdivision thereof in consideration for
franchises, consents, water power licenses, or certificates, running in
perpetuity or for a specified term of more than one year, together with
necessary and reasonable expenses incident to procuring such franchises,
consents, water power licenses, or certificates of permission and
approval, including expenses of organizing and merging separate
corporations, where statutes require, solely for the purpose of
acquiring franchises.
B. If a franchise, consent, water power license or certificate is
acquired by assignment, the charge to this account in respect thereof
shall not exceed the amount paid therefor by the utility to the
assignor, nor shall it exceed the amount paid by the original grantee,
plus the expense of acquisition to such grantee. Any excess of the
amount actually paid by the utility over the amount above specified
shall be charged to account 426.5, Other Deductions.
C. When any franchise has expired, the book cost thereof shall be
credited hereto and charged to account 426.5, Other Deductions, or to
account 111, Accumulated Provision for Amortization of Electric Utility
Plant (for Nonmajor utilities, account 110, Accumulated Provision for
Depreciation and Amortization of Electric Plant), as appropriate.
D. Records supporting this account shall be kept so as to show
separately the book cost of each franchise or consent.
Note: Annual or other periodic payments under franchises shall not
be included herein but in the appropriate operating expense account.
303 Miscellaneous intangible plant.
A. This account shall include the cost of patent rights, licenses,
privileges, and other intangible property necessary or valuable in the
conduct of utility operations and not specifically chargeable to any
other account.
B. When any item included in this account is retired or expires, the
book cost thereof shall be credited hereto and charged to account 426.5,
Other Deductions, or account 111, Accumulated Provision for Amortization
of Electric Utility Plant (for Nonmajor utilities, account 110,
Accumulated Provision for Depreciation and Amortization of Electric
Plant), as appropriate.
C. This account shall be maintained in such a manner that the utility
can furnish full information with respect to the amounts included
herein.
310 Land and land rights.
This account shall include the cost of land and land rights used in
connection with steam-power generation. (See electric plant instruction
7.)
311 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with steam-power generation. (See
electric plant instruction 8.)
Note: Include steam production roads and railroads in this account.
312 Boiler plant equipment.
This account shall include the cost installed of furnaces, boilers,
coal and ash handling and coal preparing equipment, steam and feed water
piping, boiler apparatus and accessories used in the production of
steam, mercury, or other vapor, to be used primarily for generating
electricity.
1. Ash handling equipment, including hoppers, gates, cars, conveyors,
hoists, sluicing equipment, including pumps and motors, sluicing water
pipe and fittings, sluicing trenches and accessories, etc., except
sluices which are a part of a building.
2. Boiler feed system, including feed water heaters, evaporator
condensers, heater drain pumps, heater drainers, deaerators, and vent
condensers, boiler feed pumps, surge tanks, feed water regulators, feed
water measuring equipment, and all associated drives.
3. Boiler plant cranes and hoists and associated drives.
4. Boilers and equipment, including boilers and baffles, economizers,
superheaters, soot blowers, foundations and settings, water walls,
arches, grates, insulation, blow-down system, drying out of new boilers,
also associated motors or other power equipment.
5. Breeching and accessories, including breeching, dampers, soot
spouts, hoppers and gates, cinder eliminators, breeching insulation,
soot blowers and associated motors.
6. Coal handling and storage equipment, including coal towers, coal
lorries, coal cars, locomotives and tracks when devoted principally to
the transportation of coal, hoppers, downtakes, unloading and hoisting
equipment, skip hoists and conveyors, weighing equipment, magnetic
separators, cable ways, housings and supports for coal handling
equipment.
7. Draft equipment, including air preheaters and accessories, induced
and forced draft fans, air ducts, combustion control mechanisms, and
associated motors or other power equipment.
8. Gas-burning equipment, including holders, burner equipment and
piping, control equipment, etc.
9. Instruments and devices, including all measuring, indicating, and
recording equipment for boiler plant service together with mountings and
supports.
10. Lighting systems.
11. Oil-burning equipment, including tanks, heaters, pumps with
drive, burner equipment and piping, control equipment, etc.
12. Pulverized fuel equipment, including pulverizers, accessory
motors, primary air fans, cyclones and ducts, dryers, pulverized fuel
bins, pulverized fuel conveyors and equipment, burners, burner piping,
priming equipment, air compressors, motors, etc.
13. Stacks, including foundations and supports, stack steel and
ladders, stack brick work, stack concrete, stack lining, stack painting
(first), when set on separate foundations, independent of substructure
or superstructure of building.
14. Station piping, including pipe, valves, fittings, separators,
traps, desuperheaters, hangers, excavation, covering, etc., for station
piping system, including all steam, condensate, boiler feed and water
supply piping, etc., but not condensing water, plumbing, building
heating, oil, gas, air piping or piping specifically provided for in
account 313.
15. Stoker or equivalent feeding equipment, including stokers and
accessory motors, clinker grinders, fans and motors, etc.
16. Ventilating equipment.
17. Water purification equipment, including softeners and
accessories, evaporators and accessories, heat exchangers, filters,
tanks for filtered or softened water, pumps, motors, etc.
18. Water-supply systems, including pumps, motors, strainers,
raw-water storage tanks, boiler wash pumps, intake and discharge pipes
and tunnels not a part of a building.
19. Wood fuel equipment, including hoppers, fuel hogs and
accessories, elevators and conveyors, bins and gates, spouts, measuring
equipment and associated drives.
Note: When the system for supplying boiler or condenser water is
elaborate, as when it includes a dam, reservoir, canal, pipe line,
cooling ponds, or where gas or oil is used as a fuel for producing steam
and is supplied through a pipe line system owned by the utility, the
cost of such special facilities shall be charged to a subdivision of
account 311, Structures and Improvements.
313 Engines and engine-driven generators.
This account shall include the cost installed of steam engines,
reciprocating or rotary, and their associated auxiliaries; and
engine-driven main generators, except turbogenerator units.
1. Air cleaning and cooling apparatus, including blowers, drive
equipment, air ducts not a part of building, louvers, pumps, hoods, etc.
2. Belting, shafting, pulleys, reduction gearing, etc.
3. Circulating pumps, including connections between condensers and
intake and discharge tunnels.
4. Cooling system, including towers, pumps, tank, and piping.
5. Condensers, including condensate pumps, air and vacuum pumps,
ejectors, unloading valves and vacuum breakers, expansion devices,
screens, etc.
6. Cranes, hoists, etc., including items wholly identified with items
listed herein.
7. Engines, reciprocating or rotary.
8. Fire-extinguishing systems.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Generators -- Main, a.c. or d.c., including field rheostats and
connections for self-excited units, and excitation systems when
identified with the generating unit.
11. Governors.
12. Lighting systems.
13. Lubricating systems including gauges, filters, tanks, pumps,
piping, motors, etc.
14. Mechanical meters, including gauges, recording instruments,
sampling and testing equipment.
15. Piping -- main exhaust, including connections between generator
and condenser and between condenser and hotwell.
16. Piping -- main steam, including connections from main throttle
valve to turbine inlet.
17. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
18. Pressure oil system, including accumulators, pumps, piping,
motors, etc.
19. Throttle and inlet valve.
20. Tunnels, intake and discharge, for condenser system, when not a
part of a structure.
21. Water screens, motors, etc.
314 Turbogenerator units.
This account shall include the cost installed of main turbine-driven
units and accessory equipment used in generating electricity by steam.
1. Air cleaning and cooling apparatus, including blowers, drive
equipment, air ducts not a part of building, louvers, pumps, hoods, etc.
2. Circulating pumps, including connections between condensers and
intake and discharge tunnels.
3. Condensers, including condensate pumps, air and vacuum pumps,
ejectors, unloading valves and vacuum breakers, expansion devices,
screens, etc.
4. Generator hydrogen, gas piping and detrainment equipment.
5. Cooling system, including towers, pumps, tanks, and piping.
6. Cranes, hoists, etc., including items wholly identified with items
listed herein.
7. Excitation system, when identified with main generating units.
8. Fire-extinguishing systems.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Governors.
11. Lighting systems.
12. Lubricating systems, including gauges, filters, water separators,
tanks, pumps, piping, motors, etc.
13. Mechanical meters, including gauges, recording instruments,
sampling and testing equipment.
14. Piping -- main exhaust, including connections between
turbogenerator and condenser and between condenser and hotwell.
15. Piping -- main steam, including connections from main throttle
valve to turbine inlet.
16. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
17. Pressure oil systems, including accumulators, pumps, piping,
motors, etc.
18. Steelwork, specially constructed for apparatus listed herein.
19. Throttle and inlet valve.
20. Tunnels, intake and discharge, for condenser system, when not a
part of structure, water screens, etc.
21. Turbogenerators -- main, including turbine and generator, field
rheostats and electric connections for self-excited units.
22. Water screens, motors, etc.
23. Moisture separator for turbine steam.
24. Turbine lubricating oil (initial charge).
315 Accessory electric equipment.
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced by
steam power, and the protection of electric circuits and equipment,
except electric motors used to drive equipment included in other
accounts. Such motors shall be included in the account in which the
equipment with which they are associated is included.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine and dual-drive exciter
sets and rheostats, storage batteries and charging equipment, circuit
breakers, panels and accessories, knife switches and accessories, surge
arresters, instrument shunts, conductors and conduit, special supports
for conduit, generator field and exciter switch panels, exciter bus tie
panels, generator and exciter rheostats, etc., special housing,
protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads grounding switch,
etc., special housings, protective screens, etc.
4. Station buses including main, auxiliary, transfer, synchronizing
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, starting transformers, current
transformers, potential transformers, protective relays, storage
batteries and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special housings, concrete
pads, general station grounding system, special fire-extinguishing
system, and test equipment.
5. Station control system, including station switchboards with panel
wiring, panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, truck-type boards
complete, cubicles, station supervisory control boards, generator and
exciter signal stands, temperature recording devices, frequency-control
equipment, master clocks, watt-hour meters and synchronoscope in the
turbine room, station totalizing wattmeter, boiler-room load indicator
equipment, storage batteries, panels and charging sets, instrument
transformers for supervisory metering, conductors and conduit, special
supports for conduit, switchboards, batteries, special housing for
batteries, protective screens, doors, etc.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electricity for
the purposes of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly to
furnish power to equipment included in another account, its cost shall
be included in such other account.
316 Miscellaneous power plant equipment.
This account shall include the cost installed of miscellaneous
equipment in and about the steam generating plant devoted to general
station use, and which is not properly includible in any of the
foregoing steam-power production accounts.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station use.
4. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
5. Locomotive cranes not includible elsewhere.
6. Locomotives not includible elsewhere.
7. Marine equipment, including boats, barges, etc.
8. Miscellaneous belts, pulleys, countershafts, etc.
9. Miscellaneous equipment, including atmospheric and weather
indicating devices, intrasite communication equipment, laboratory
equipment, signal systems, callophones emergency whistles and sirens,
fire alarms, insect-control equipment, and other similar equipment.
10. Railway cars not includible elsewhere.
11. Refrigerating systems, including compressors, pumps, cooling
coils, etc.
12. Station maintenance equipment, including lathes, shapers,
planers, drill presses, hydraulic presses, grinders, etc., with motors,
shafting, hangers, pulleys, etc.
13. Ventilating equipment, including items wholly identified with
apparatus listed herein.
Note: When any item of equipment listed herein is wholly used in
connection with equipment included in another account, its cost shall be
included in such other account.
320 Land and land rights (Major only).
This account shall include the cost of land and land rights used in
connection with nuclear power generation. (See electric plant
instruction 7.)
321 Structures and improvements (Major only).
This account shall include the cost in place of structures and
improvements used and useful in connection with nuclear power
generation. (See electric plant instruction 8.)
Note: Include vapor containers and nuclear production roads and
railroads in this account.
322 Reactor plant equipment (Major only).
This account shall include the installed cost of reactors, reactor
fuel handling and storage equipment, pressurizing equipment, coolant
charging equipment, purification and discharging equipment, radioactive
waste treatment and disposal equipment, boilers, steam and feed water
piping, reactor and boiler apparatus and accessories and other reactor
plant equipment used in the production of steam to be used primarily for
generating electricity, including auxiliary superheat boilers and
associated equipment in systems which change temperatures or pressure of
steam from the reactor system.
1. Auxiliary superheat boilers and associated fuel storage handling
preparation and burning equipment, etc. (See account 312 Boiler Plant
Equipment, for items, but exclude water supply, water flow lines, and
steam lines, as well as other equipment not strictly within the
superheat function.)
2. Boiler feed system, including feed water heaters, evaporator
condensers, heater drain pumps, heater drainers, deaerators, and vent
condensers, boiler feed pumps, surge tanks, feed water regulators, feed
water measuring equipment, and all associated drivers.
3. Boilers and heat exchangers.
4. Instruments and devices, including all measuring, indicating, and
recording equipment for reactor and boiler plant service together with
mountings and supports.
5. Lighting systems.
6. Moderators, such as heavy water, graphite, etc., initial charge.
7. Reactor coolant; primary and secondary systems (initial charge).
8. Radioactive waste treatment and disposal equipment, including
tanks, ion exchangers, incinerators, condensers, chimneys, and diluting
fans and pumps.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Reactor including shielding, control rods and mechanisms.
11. Reactor fuel handling equipment, including manipulating and
extraction tools, underwater viewing equipment, seal cutting and welding
equipment, fuel transfer equipment and fuel disassembly machinery.
12. Reactor fuel element failure detection system.
13. Reactor emergency poison container and injection system.
14. Reactor pressurizing and pressure relief equipment, including
pressurizing tanks and immersion heaters.
15. Reactor coolant or moderator circulation charging, purification,
and discharging equipment, including tanks, pumps, heat exchangers,
demineralizers, and storage.
16. Station piping, including pipes, valves, fittings, separators,
traps, desuperheaters, hangers, excavation, covering, etc., for station
piping system, including all-reactor coolant, steam, condensate, boiler
feed and water supply piping, etc., but not condensing water, plumbing,
building heating, oil, gas, or air piping.
17. Ventilating equipment.
18. Water purification equipment, including softeners,
demineralizers, and accessories, evaporators and accessories, heat
exchangers, filters, tanks for filtered or softened water, pumps,
motors, etc.
19. Water supply systems, including pumps, motors, strainers,
raw-water storage tanks, boiler wash pumps, intake and discharge pipes
and tunnels not a part of a building.
20. Reactor plant cranes and hoists, and associated drives.
Note: When the system for supplying boiler or condenser water is
elaborate, as when it includes a dam, reservoir, canal, pipe lines, or
cooling ponds, the cost of such special facilities shall be charged to a
subdivision of account 321, Structures and Improvements.
323 Turbogenerator units (Major only).
This account shall include the cost installed of main turbine-driven
units and accessory equipment used in generating electricity by steam.
1. Air cleaning and cooling apparatus, including blowers, drive
equipment, air ducts not a part of building, louvers, pumps, hoods, etc.
2. Circulating pumps, including connections between condensers, and
intake and discharge tunnels.
3. Condensers, including condensate pumps, air and vacuum pumps
ejectors, unloading valves and vacuum breakers, expansion devices,
screens, etc.
4. Generator hydrogen gas piping system and hydrogen detrainment
equipment, and bulk hydrogen gas storage equipment.
5. Cooling system, including towers, pumps, tanks and piping.
6. Cranes, hoists, etc., including items wholly identified with items
listed herein.
7. Excitation system, when identified with main generating units.
8. Fire extinguishing systems.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Governors.
11. Lighting systems.
12. Lubricating systems, including gauges filters, water separators,
tanks, pumps, piping motors, etc.
13. Mechanical meters, including gauges recording instruments,
sampling and testing equipment.
14. Piping -- main exhaust, including connections between
turbogenerator and condenser and between condenser and hotwell.
15. Piping -- main steam, including connections from main throttle
valve to turbine inlet.
16. Platforms, railings, steps, gratings, etc. appurtenant to
apparatus listed herein.
17. Pressure oil systems, including accumulators, pumps, piping,
motors, etc.
18. Steelwork, specially constructed for apparatus listed herein.
19. Throttle and inlet valve.
20. Tunnels, intake and discharge, for condenser system, when not a
part of structure water screens, etc.
21. Turbogenerators -- main, including turbine and generator, field
rheostats and electric connections for self-excited units.
22. Water screens, motors, etc.
23 Moisture separators for turbine steam.
24. Turbine lubricating oil (initial charge).
324 Accessory electric equipment (Major only).
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced by
nuclear power, and the protection of electric circuits and equipment,
except electric motors used to drive equipment included in other
accounts. Such motors shall be included in the account in which the
equipment with which they are associated is included.
Note: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electric energy
for the purpose of transmission or distribution.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine and dual-drive exciter
sets and rheostats, storage batteries and charging equipment, circuit
breakers, panels and accessories, knife switches and accessories, surge
arresters, instrument shunts, conductors and conduit, special supports
for conduit, generator field and exciter switch panels, exciter bus tie
panels, generator and exciter rheostats, etc., special housing,
protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads, grounding switch,
etc., special housings, protective screens, etc.
4. Station buses, including main, auxiliary, transfer, synchronizing
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, starting transformers, current
transformers, potential transformers, protective relays, storage
batteries and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special housings, concrete
pads, general station grounding system, fire-extinguishing system, and
test equipment.
5. Station control system, including station switchboards with panel
wiring, panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, truck-type boards
complete, cubicles, station supervisory control boards, generator and
exciter signal stands, temperature recording devices, frequency-control
equipment, master clocks, watt-hour meters and synchronoscope in the
turbine room, station totalizing wattmeter, boiler-room load indicator
equipment, storage batteries, panels and charging sets, instrument
transformers for supervisory metering, conductors and conduit, special
supports for conduit, switchboards, batteries, special housing for
batteries, protective screens, doors, etc.
Note: When any item of equipment listed herein is used wholly to
furnish power to equipment included in another account, its cost shall
be included in such other account
325 Miscellaneous power plant equipment (Major only).
This account shall include the cost installed of miscellaneous
equipment in and about the nuclear generating plant devoted to general
station use, and which is not properly includible in any of the
foregoing nuclear-power production accounts.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station and site use.
4. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
5. Locomotive cranes not includible elsewhere.
6. Locomotives not included elsewhere.
7. Marine equipment, including boats, barges, etc.
8. Miscellaneous belts, pulleys, countershafts, etc.
9. Miscellaneous equipment, including atmospheric and weather
recording devices, intrasite communication equipment, laboratory
equipment, signal systems, callophones emergency whistles and sirens,
fire alarms, insect-control equipment, and other similar equipment.
10. Railway cars or special shipping containers not includible
elsewhere.
11. Refrigerating systems, including compressors, pumps, cooling
coils, etc.
12. Station maintenance equipment, including lathes, shapers,
planers, drill presses, hydraulic presses, grinders, etc., with motors,
shafting, hangers, pulleys, etc.
13. Ventilating equipment, including items wholly identified with
apparatus listed herein.
14. Station and area radiation monitoring equipment.
Note: When any item of equipment listed herein is wholly used in
connection with equipment included in another account, its cost shall be
included in such other account.
330 Land and land rights.
This account shall include the cost of land and land rights used in
connection with hydraulic power generation. (See electric plant
instruction 7.) For Major utilities, it shall also include the cost of
land and land rights used in connection with (1) the conservation of
fish and wildlife, and (2) recreation. Separate subaccounts shall be
maintained for each of the above.
331 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with hydraulic power generation. (See
electric plant instruction 8.) For Major utilities, it shall also
include the cost in place of structures and improvements used in
connection with (1) the conservation of fish and wildlife, and (2)
recreation. Separate subaccounts shall be maintained for each of the
above.
332 Reservoirs, dams, and waterways.
This account shall include the cost in place of facilities used for
impounding, collecting, storage, diversion, regulation, and delivery of
water used primarily for generating electricity. For Major utilities,
it shall also include the cost in place of facilities used in connection
with (a) the conservation of fish and wildlife, and (b) recreation.
Separate subaccounts shall be maintained for each of the above. (See
electric plant instruction 8C.)
1. Bridges and culverts (when not a part of roads or railroads).
2. Clearing and preparing land.
3. Dams, including wasteways, spillways, flash boards, spillway gates
with operating and control mechanisms, tunnels, gate houses, and fish
ladders.
4. Dikes and embankments.
5. Electric system, including conductors control system,
transformers, lighting fixtures, etc.
6. Excavation, including shoring, bracing, bridging, refill, and
disposal of excess excavated material.
7. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
8. Intakes, including trash racks, rack cleaners, control gates and
valves with operating mechanisms, and intake house when not a part of
station structure.
9. Platforms, railings, steps, gratings, etc., appurtenant to
structures listed herein.
10. Power line wholly identified with items included herein.
11. Retaining walls.
12. Water conductors and accessories, including canals, tunnels,
flumes, penstocks pipe conductors, forebays, tailraces, navigation locks
and operating mechanisms, waterhammer and surge tanks, and supporting
trestles and structures.
13. Water storage reservoirs, including dams, flashboards, spillway
gates and operating mechanisms, inlet and outlet tunnels, regulating
valves and valve towers, silt and mud sluicing tunnels with valve or
gate towers, and all other structures wholly identified with any of the
foregoing items.
333 Water wheels, turbines and generators.
This account shall include the cost installed of water wheels and
hydraulic turbines (from connection with penstock or flume to tailrace)
and generators driven thereby devoted to the production of electricity
by water power or for the production of power for industrial or other
purposes, if the equipment used for such purposes is a part of the
hydraulic power plant works.
1. Exciter water wheels and turbines, including runners, gates,
governors, pressure regulators, oil pumps, operating mechanisms, scroll
cases, draft tubes, and draft-tube supports.
2. Fire-extinguishing equipment.
3. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
4. Generator cooling system, including air cooling and washing
apparatus, air fans and accessories, air ducts, etc.
5. Generators -- main, a.c. or d.c., including field rheostats and
connections for self-excited units and excitation system when identified
with the generating unit.
6. Lighting systems.
7. Lubricating systems, including gauges, filters, tanks, pumps,
piping, etc.
8. Main penstock valves and appurtenances, including main valves,
control equipment, bypass valves and fittings, and other accessories.
9. Main turbines and water wheels, including runners, gates,
governors, pressure regulators, oil pumps, operating mechanisms, scroll
cases, draft tubes, and draft-tube supports.
10. Mechanical meters and recording instruments.
11. Miscellaneous water-wheel equipment, including gauges,
thermometers, meters, and other instruments.
12. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
13. Scroll case filling and drain system, including gates, pipe,
valves, fittings, etc.
14. Water-actuated pressure-regulator system, including tanks and
housings, pipes, valves, fittings and insulations, piers and anchorage,
and excavation and backfill.
334 Accessory electric equipment.
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced by
hydraulic power and the protection of electric circuits and equipment,
except electric motors used to drive equipment included in other
accounts, such motors being included in the account in which the
equipment with which they are associated is included.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine, and dual-drive
exciter sets and rheostats, storage batteries and charging equipment,
circuit breakers, panels and accessories, knife switches and
accessories, surge arresters, instrument shunts, conductors and conduit,
special supports for conduit, generator field and exciter switch panels,
exciter bus tie panels, generator and exciter rheostats, etc., special
housings, protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads, grounding switch,
etc., special housings, protective screens, etc.
4. Station buses, including main, auxiliary, transfer, synchronizing,
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors starting transformers, current
transformers, potential transformers, protective relays, storage
batteries, and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special fire-extinguishing
system, and test equipment.
5. Station control system, including station switchboards with panel
wiring panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, trucktype boards
complete, cubicles, station supervisory control devices, frequency
control equipment, master clocks, watt-hour meter, station totalizing
watt-meter, storage batteries, panels and charging sets, instrument
transformers for supervisory metering, conductors and conduit, special
supports for conduit, switchboards, batteries, special housings for
batteries, protective screens, doors, etc.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electricity for
the purpose of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly to
furnish power to equipment, it shall be included in such equipment
account.
335 Miscellaneous power plant equipment.
This account shall include the cost installed of miscellaneous
equipment in and about the hydroelectric generating plant which is
devoted to general station use and is not properly includible in other
hydraulic production accounts. For Major utilities, it shall also
include the cost of equipment used in connection with (a) the
conservation of fish and wildlife, and (b) recreation. Separate
subaccounts shall be maintained for each of the above.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station use.
4. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
5. Locomotive cranes not includible elsewhere.
6. Locomotives not includible elsewhere.
7. Marine equipment, including boats, barges, etc.
8. Miscellaneous belts, pulleys, countershafts, etc.
9. Miscellaneous equipment, including atmospheric and weather
indicating devices, intrasite communication equipment, laboratory
equipment, insect control equipment, signal systems, callophones,
emergency whistles and sirens, fire alarms, and other similar equipment.
10. Railway cars, not includible elsewhere.
11. Refrigerating system, including compressors, pumps, cooling
coils, etc.
12. Station maintenance equipment, including lathes, shapers,
planers, drill presses, hydraulic presses, grinders, etc., with motors,
shafting, hangers, pulleys, etc.
13. Ventilating equipment, including items wholly identified with
apparatus listed herein.
Note: When any item of equipment, listed herein is used wholly in
connection with equipment included in another account, its cost shall be
included in such other account.
336 Roads, railroads and bridges.
This account shall include the cost of roads, railroads, trails,
bridges, and trestles used primarily as production facilities. It
includes also those roads, etc., necessary to connect the plant with
highway transportation systems, except when such roads are dedicated to
public use and maintained by public authorities.
1. Bridges, including foundations, piers, girders, trusses, flooring,
etc.
2. Clearing land.
3. Railroads, including grading, ballast, ties, rails, culverts,
hoists, etc.
4. Roads, including grading, surfacing, culverts, etc.
5. Structures, constructed and maintained in connection with items
listed herein.
6. Trails, including grading, surfacing, culverts, etc.
7. Trestles, including foundations, piers, girders, trusses,
flooring, etc.
Note A: Roads intended primarily for connecting employees' houses
with the powerplant, and roads used primarily in connection with fish
and wildlife, and recreation activities, shall not be included herein
but in account 331, Structures and Improvements.
Note B: The cost of temporary roads, bridges, etc. necessary during
the period of construction but abandoned or dedicated to public use upon
completion of the plant, shall not be included herein but shall be
charged to the accounts appropriate for the construction.
340 Land and land rights.
This account shall include the cost of land and land rights used in
connection with other power generation. (See electric plant instruction
7.)
341 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with other power generation. (See
electric plant instruction 8.)
342 Fuel holders, producers, and accessories.
This account shall include the cost installed of fuel handling and
storage equipment used between the point of fuel delivery to the station
and the intake pipe through which fuel is directly drawn to the engine,
also the cost of gas producers and accessories devoted to the production
of gas for use in prime movers driving main electric generators.
1. Blower and fans.
2. Boilers and pumps.
3. Economizers.
4. Exhauster outfits.
5. Flues and piping.
6. Pipe system.
7. Producers.
8. Regenerators.
9. Scrubbers.
10. Steam injectors.
11. Tanks for storage of oil, gasoline, etc.
12. Vaporizers.
343 Prime movers.
This account shall include the cost installed of Diesel or other
prime movers devoted to the generation of electric energy, together with
their auxiliaries.
1. Air-filtering system.
2. Belting, shafting, pulleys, reduction gearing, etc.
3. Cooling system, including towers, pumps, tanks, and piping.
4. Cranes, hoists, etc., including items wholly identified with
apparatus listed herein.
5. Engines, Diesel, gasoline, gas, or other internal combustion.
6. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
7. Governors.
8. Ignition system.
9. Inlet valve.
10. Lighting systems.
11. Lubricating systems, including filters, tanks, pumps, and piping.
12. Mechanical meters, including gauges, recording instruments,
sampling, and testing equipment.
13. Mufflers.
14. Piping.
15. Starting systems, compressed air, or other, including compressors
and drives, tanks, piping, motors, boards and connections, storage
tanks, etc.
16. Steelwork, specially constructed for apparatus listed herein.
17. Waste heat boilers, antifluctuators, etc.
344 Generators.
This account shall include the cost installed of Diesel or other
power driven main generators.
1. Cranes, hoists, etc., including items wholly identified with such
apparatus.
2. Fire-extinguishing equipment.
3. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
4. Generator cooling system, including air cooling and washing
apparatus, air fans and accessories, air ducts, etc.
5. Generators -- main, a.c. or d.c., including field rheostats and
connections for self-excited units and excitation system when identified
with the generating unit.
6. Lighting systems.
7. Lubricating system, including tanks, filters, strainers, pumps,
piping, coolers, etc.
8. Mechanical meters, and recording instruments.
9. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
Note: If prime movers and generators are so integrated that it is
not practical to classify them separately, the entire unit may be
included in account 344, Generators.
345 Accessory electric equipment.
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced in
other power generating stations, and the protection of electric circuits
and equipment, except electric motors used to drive equipment included
in other accounts. Such motors shall be included in the account in
which the equipment with which it is associated is included.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine and dual-drive exciter
sets and rheostats, storage batteries and charging equipment, circuit
breakers, panels and accessories, knife switches and accessories, surge
arresters, instrument shunts, conductors and conduit, special supports
for conduit, generator field and exciter switch panels, exciter bus tie
panels, generator and exciter rheostats, etc., special housings,
protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads, grounding switch,
etc., special housing, protective screens, etc.
4. Station control system, including station switchboards with panel
wiring, panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, trunktype boards
complete, cubicles, station supervisory control boards, generator and
exciter signal stands, temperature-recording devices, frequency control
equipment, master clocks, watt-hour meter, station totalizing wattmeter,
storage batteries, panels and charging sets, instrument transformers for
supervisory metering, conductors and conduit, special supports for
conduit, switchboards, batteries, special housing for batteries,
protective screens, doors, etc.
5. Station buses, including main, auxiliary transfer, synchronizing
and fault ground buses, including oil curcuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, starting transformers, current
transformers, potential transformers, protective relays, storage
batteries and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special housings, concrete
pads, general station ground system, special fire-extinguishing system,
and test equipment.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electric energy
for the purpose of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly to
furnish power to equipment included in another account, its cost shall
be included in such other account.
346 Miscellaneous power plant equipment.
This account shall include the cost installed of miscellaneous
equipment in and about the other power generating plant, devoted to
general station use, and not properly includible in any of the foregoing
other power production accounts.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station use.
4. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
5. Miscellaneous equipment, including atmospheric and weather
indicating devices, intrasite communication equipment, laboratory
equipment, signal systems, callophones, emergency whistles and sirens,
fire alarms, and other similar equipment.
6. Miscellaneous belts, pulleys, countershafts, etc.
7. Refrigerating system including compressors, pumps, cooling coils,
etc.
8. Station maintenance equipment, including lathes, shapers, planers,
drill presses, hydraulic presses, grinders, etc., with motors, shafting,
hangers, pulleys, etc.
9. Ventilating equipment, including items wholly identified with
apparatus listed herein.
Note: When any item of equipment, listed herein is used wholly in
connection with equipment included in another account, its cost shall be
included in such other account.
350 Land and land rights.
This account shall include the cost of land and land rights used in
connection with transmission operations. (See electric plant
instruction 7.)
351 (Reserved)
352 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with transmission operations. (See
electric plant instruction 8.)
353 Station equipment.
This account shall include the cost installed of transforming,
conversion, and switching equipment used for the purpose of changing the
characteristics of electricity in connection with its transmission or
for controlling transmission circuits.
1. Bus compartments, concrete, brick, and sectional steel, including
items permanently attached thereto.
2. Conduit, including concrete and iron duct runs not a part of a
building.
3. Control equipment, including batteries battery charging equipment,
transformers, remote relay boards, and connections.
4. Conversion equipment, including transformers, indoor and outdoor,
frequency changers, motor generator sets, rectifiers, synchronous
converters, motors, cooling equipment, and associated connections.
5. Fences.
6. Fixed and synchronous condensers, including transformers,
switching equipment blowers, motors and connections.
7. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
8. General station equipment, including air compressors, motors,
hoists, cranes, test equipment, ventilating equipment, etc.
9. Platforms, railings, steps, gratings, etc. appurtenant to
apparatus listed herein.
10. Primary and secondary voltage connections, including bus runs and
supports, insulators, potheads, lightning arresters, cable and wire runs
from and to outdoor connections or to manholes and the associated
regulators, reactors, resistors, surge arresters, and accessory
equipment.
11. Switchboards, including meters, relays, control wiring, etc.
12. Switching equipment, indoor and outdoor, including oil circuit
breakers and operating mechanisms, truck switches, and disconnect
switches.
13. Tools and appliances.
354 Towers and fixtures.
This account shall include the cost installed of towers and
appurtenant fixtures used for supporting overhead transmission
conductors.
1. Anchors, guys, braces.
2. Brackets.
3. Crossarms, including braces.
4. Excavation, backfill, and disposal of excess excavated material.
5. Foundations.
6. Guards.
7. Insulator pins and suspension bolts.
8. Ladders and steps.
9. Railings, etc.
10. Towers.
355 Poles and fixtures.
This account shall include the cost installed of transmission line
poles, wood, steel, concrete, or other material, together with
appurtenant fixtures used for supporting overhead transmission
conductors.
1. Anchors, head arm and other guys, including guy guards, guy
clamps, strain insulators, pole plates, etc.
2. Brackets.
3. Crossarms and braces.
4. Excavation and backfill, including disposal of excess excavated
material.
5. Extension arms.
6. Gaining, roofing stenciling, and tagging.
7. Insulator pins and suspension bolts.
8. Paving.
9. Pole steps.
10. Poles, wood, steel, concrete, or other material.
11. Racks complete with insulators.
12. Reinforcing and stubbing.
13. Settings.
14. Shaving and painting.
356 Overhead conductors and devices.
This account shall include the cost installed of overhead conductors
and devices used for transmission purposes.
1. Circuit breakers.
2. Conductors, including insulated and bare wires and cables.
3. Ground wires and ground clamps.
4. Insulators, including pin, suspension, and other types.
5. Lightning arresters.
6. Switches.
7. Other line devices.
357 Underground conduit.
This account shall include the cost installed of underground conduit
and tunnels used for housing transmission cables or wires. (See
electric plant instruction 14.)
1. Conduit, concrete, brick or tile, including iron pipe, fiber pipe,
Murray duct, and standpipe on pole or tower.
2. Excavation, including shoring, bracing, bridging, backfill, and
disposal of excess excavated material.
3. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
4. Lighting systems.
5. Manholes, concrete or brick, including iron or steel, frames and
covers, hatchways, gratings, ladders, cable racks and hangers, etc.,
permanently attached to manholes.
6. Municipal inspection.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base and sidewalks.
8. Permits.
9. Protection of street openings.
10. Removal and relocation of subsurface obstructions.
11. Sewer connections, including drains, traps, tide valves, check
valves, etc.
12. Sumps, including pumps.
13. Ventilating equipment.
358 Underground conductors and devices.
This account shall include the cost installed of underground
conductors and devices used for transmission purposes.
1. Armored conductors, buried, including insulators, insulating
materials, splices, potheads, trenching, etc.
2. Armored conductors, submarine, including insulators, insulating
materials, splices in terminal chambers, potheads, etc.
3. Cables in standpipe, including pothead and connection from
terminal chamber of manhole to insulators on pole.
4. Circuit breakers.
5. Fireproofing, in connection with any items listed herein.
6. Hollow-core oil-filled cable, including straight or stop joints
pressure tanks, auxiliary air tanks, feeding tanks, terminals, potheads
and connections, ventilating equipment, etc.
7. Lead and fabric covered conductors, including insulators, compound
filled, oil filled, or vacuum splices, potheads, etc.
8. Lightning arresters.
9. Municipal inspection.
10. Permits.
11. Protection of street openings.
12. Racking of cables.
13. Switches.
14. Other line devices.
359 Roads and trails.
This account shall include the cost of roads, trails, and bridges
used primarily as transmission facilities.
1. Bridges, including foundation piers, girders, trusses, flooring,
etc.
2. Clearing land.
3. Roads, including grading, surfacing, culverts, etc.
4. Structures, constructed and maintained in connection with items
included herein.
5. Trails, including grading, surfacing, culverts, etc.
Note: The cost of temporary roads, bridges, etc., necessary during
the period of construction but abandoned or dedicated to public use upon
completion of the plant, shall be charged to the accounts appropriate
for the construction.
360 Land and land rights.
This account shall include the cost of land and land rights used in
connection with distribution operations. (See electric plant
instruction 7.)
Note: Do not include in this account the cost of permits to erect
poles, towers, etc., or to trim trees. (See account 364, Poles, Towers
and Fixtures, and account 365, Overhead Conductors and Devices.)
361 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with distribution operations. (See
electric plant instruction 8.)
362 Station equipment.
This account shall include the cost installed of station equipment,
including transformer banks, etc., which are used for the purpose of
changing the characteristics of electricity in connection with its
distribution.
1. Bus compartments, concrete, brick and sectional steel, including
items permanently attached thereto.
2. Conduit, including concrete and iron duct runs not part of
building.
3. Control equipment, including batteries, battery charging
equipment, transformers, remote relay boards, and connections.
4. Conversion equipment, indoor and outdoor, frequency changers,
motor generator sets, rectifiers, synchronous converters, motors,
cooling equipment, and associated connections.
5. Fences.
6. Fixed and synchronous condensers, including transformers,
switching equipment, blowers, motors, and connections.
7. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
8. General station equipment, including air compressors, motors,
hoists, cranes, test equipment, ventilating equipment, etc.
9. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
10. Primary and secondary voltage connections, including bus runs and
supports, insulators, potheads, lightning arresters, cable and wire runs
from and to outdoor connections or to manholes and the associated
regulators, reactors, resistors, surge arresters, and accessory
equipment.
11. Switchboards, including meters, relays, control wiring, etc.
12. Switching equipment, indoor and outdoor, including oil circuit
breakers and operating mechanisms, truck switches, disconnect switches.
Note: The cost of rectifiers, series transformers, and other special
station equipment devoted exclusively to street lighting service shall
not be included in this account, but in account 373, Street Lighting and
Signal Systems.
363 Storage battery equipment.
This account shall include the cost installed of storage battery
equipment used for the purpose of supplying electricity to meet
emergency or peak demands.
1. Batteries, including elements, tanks, tank insulators, etc.
2. Battery room connections, including cable or bus runs and
connections.
3. Battery room flooring, when specially laid for supporting
batteries.
4. Charging equipment, including motor generator sets and other
charging equipment and connections, and cable runs from generator or
station bus to battery room connections.
5. Miscellaneous equipment, including instruments, water stills, etc.
6. Switching equipment, including endcell switches and connections,
boards and panels, used exclusively for battery control, not part of
general station switchboard.
7. Ventilating equipment, including fans and motors, louvers, and
ducts not part of building.
Note: Storage batteries used for control and general station
purposes shall not be included in this account but in the account
appropriate for their use.
364 Poles, towers and fixtures.
This account shall include the cost installed of poles, towers, and
appurtenant fixtures used for supporting overhead distribution
conductors and service wires.
1. Anchors, head arm, and other guys, including guy guards, guy
clamps, strain insulators, pole plates, etc.
2. Brackets.
3. Crossarms and braces.
4. Excavation and backfill, including disposal of excess excavated
material.
5. Extension arms.
6. Foundations.
7. Guards.
8. Insulator pins and suspension bolts.
9. Paving.
10. Permits for construction.
11. Pole steps and ladders.
12. Poles, wood, steel, concrete, or other material.
13. Racks complete with insulators.
14. Railings.
15. Reinforcing and stubbing.
16. Settings.
17. Shaving, painting, gaining, roofing, stenciling, and tagging.
18. Towers.
19. Transformer racks and platforms.
365 Overhead conductors and devices.
This account shall include the cost installed of overhead conductors
and devices used for distribution purposes.
1. Circuit breakers.
2. Conductors, including insulated and bare wires and cables.
3. Ground wires, clamps, etc.
4. Insulators, including pin, suspension, and other types, and tie
wire or clamps.
5. Lightning arresters.
6. Railroad and highway crossing guards.
7. Splices.
8. Switches.
9. Tree trimming, initial cost including the cost of permits
therefor.
10. Other line devices.
Note: The cost of conductors used solely for street lighting or
signal systems shall not be included in this account but in account 373,
Street Lighting and Signal Systems.
366 Underground conduit.
This account shall include the cost installed of underground conduit
and tunnels used for housing distribution cables or wires.
1. Conduit, concrete, brick and tile, including iron pipe, fiber
pipe, Murray duct, and standpipe on pole or tower.
2. Excavation, including shoring, bracing, bridging, backfill, and
disposal of excess excavated material.
3. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which constructed.
4. Lighting systems.
5. Manholes, concrete or brick, including iron or steel frames and
covers, hatchways, gratings, ladders, cable racks and hangers, etc.,
permanently attached to manholes.
6. Municipal inspection.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base, and sidewalks.
8. Permits.
9. Protection of street openings.
10. Removal and relocation of subsurface obstructions.
11. Sewer connections, including drains, traps, tide valves, check
valves, etc.
12. Sumps, including pumps.
13. Ventilating equipment.
Note: The cost of underground conduit used solely for street
lighting or signal systems shall be included in account 373, Street
Lighting and Signal Systems.
367 Underground conductors and devices.
This account shall include the cost installed of underground
conductors and devices used for distribution purposes.
1. Armored conductors, buried, including insulators, insulating
materials, splices, potheads, trenching, etc.
2. Armored conductors, submarine, including insulators, insulating
materials, splices in terminal chamber, potheads, etc.
3. Cables in standpipe, including pothead and connection from
terminal chamber or manhole to insulators on pole.
4. Circuit breakers.
5. Fireproofing, in connection with any items listed herein.
6. Hollow-core oil-filled cable, including straight or stop joints,
pressure tanks, auxiliary air tanks, feeding tanks, terminals, potheads
and connections, etc.
7. Lead and fabric covered conductors, including insulators,
compound-filled, oil-filled or vacuum splices, potheads, etc.
8. Lightning arresters.
9. Municipal inspection.
10. Permits.
11. Protection of street openings.
12. Racking of cables.
13. Switches.
14. Other line devices.
Note: The cost of underground conductors and devices used solely for
street lighting or signal systems shall be included in account 373,
Street Lighting and Signal Systems.
368 Line transformers.
A. This account shall include the cost installed of overhead and
underground distribution line transformers and poletype and underground
voltage regulators owned by the utility, for use in transforming
electricity to the voltage at which it is to be used by the customer,
whether actually in service or held in reserve.
B. When a transformer is permanently retired from service, the
original installed cost thereof shall be credited to this account.
C. The records covering line transformers shall be so kept that the
utility can furnish the number of transformers of various capacities in
service and those in reserve, and the location and the use of each
transformer.
1. Installation, labor of (first installation only).
2. Transformer cut-out boxes.
3. Transformer lightning arresters.
4. Transformers, line and network.
5. Capacitors.
6. Network protectors.
Note: The cost of removing and resetting line transformers shall not
be charged to this account but to account 583, Overhead Line Expenses,
or account 584, Underground Line Expenses (for Nonmajor utilities,
account 561, Line and Station Labor, or account 562, Line and Station
Supplies and Expenses), as appropriate. The cost of line transformers
used solely for street lighting or signal systems shall be included in
account 373, Street Lighting and Signal Systems.
369 Services.
This account shall include the cost installed of overhead and
underground conductors leading from a point where wires leave the last
pole of the overhead system or the distribution box or manhole, or the
top of the pole of the distribution line, to the point of connection
with the customer's outlet or wiring. Conduit used for underground
service conductors shall be included herein.
1. Brackets.
2. Cables and wires.
3. Conduit.
4. Insulators.
5. Municipal inspection.
6. Overhead to underground, including conduit or standpipe and
conductor from last splice on pole to connection with customer's wiring.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base, and sidewalks.
8. Permits.
9. Protection of street openings.
10. Service switch.
11. Suspension wire.
370 Meters.
A. This account shall include the cost installed of meters or devices
and appurtenances thereto, for use in measuring the electricity
delivered to its users, whether actually in service or held in reserve.
B. When a meter is permanently retired from service, the installed
cost included herein shall be credited to this account.
C. The records covering meters shall be so kept that the utility can
furnish information as to the number of meters of various capacities in
service and in reserve as well as the location of each meter owned.
1. Alternating current, watt-hour meters.
2. Current limiting devices.
3. Demand indicators.
4. Demand meters.
5. Direct current watt-hour meters.
6. Graphic demand meters.
7. Installation, labor of (first installation only).
8. Instrument transformers.
9. Maximum demand meters.
10. Meter badges and their attachments.
11. Meter boards and boxes.
12. Meter fittings, connections, and shelves (first set).
13. Meter switches and cut-outs.
14. Prepayment meters.
15. Protective devices.
16. Testing new meters.
Note A: This account shall not include meters for recording output
of a generating station, substation meters, etc. It includes only those
meters used to record energy delivered to customers.
Note B: The cost of removing and resetting meters shall be charged
to account 586, Meter Expenses (for Nonmajor utilities, account 556,
Meter Expenses).
371 Installations on customers' premises.
This account shall include the cost installed of equipment on the
customer's side of a meter when the utility incurs such cost and when
the utility retains title to and assumes full responsibility for
maintenance and replacement of such property. This account shall not
include leased equipment, for which see account 372, Leased Property on
Customers' Premises.
1. Cable vaults.
2. Commercial lamp equipment.
3. Foundations and settings specially provided for equipment included
herein.
4. Frequency changer sets.
5. Motor generator sets.
6. Motors.
7. Switchboard panels, high or low tension.
8. Wire and cable connections to incoming cables.
Note: Do not include in this account any costs incurred in
connection with merchandising, jobbing, or contract work activities.
372 Leased property on customers' premises.
This account shall include the cost of electric motors, transformers,
and other equipment on customers' premises (including municipal
corporations), leased or loaned to customers, but not including property
held for sale.
Note A: The cost of setting and connecting such appliances or
equipment on the premises of customers and the cost of resetting or
removal shall not be charged to this account but to operating expenses,
account 587, Customer Installations Expenses (for Nonmajor utilities,
account 567, Customer Installations Expenses).
Note B: Do not include in this account any costs incurred in
connection with merchandising, jobbing, or contract work activities.
373 Street lighting and signal systems.
This account shall include the cost installed of equipment used
wholly for public street and highway lighting or traffic, fire alarm,
police, and other signal systems.
1. Armored conductors, buried or submarine, including insulators,
insulating materials, splices, trenching, etc.
2. Automatic control equipment.
3. Conductors, overhead or underground, including lead or fabric
covered, parkway cables, etc., including splices, insulators, etc.
4. Lamps, are, incandescent, or other types, including glassware,
suspension fixtures, brackets, etc.
5. Municipal inspection.
6. Ornamental lamp posts.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base, and sidewalks.
8. Permits.
9. Posts and standards.
10. Protection of street openings.
11. Relays or time clocks.
12. Series contactors.
13. Switches.
14. Transformers, pole or underground.
389 Land and land rights.
This account shall include the cost of land and land rights used for
utility purposes, the cost of which is not properly includible in other
land and land rights accounts. (See electric plant instruction 7.)
390 Structures and improvements.
This account shall include the cost in place of structures and
improvements used for utility purposes, the cost of which is not
properly includible in other structures and improvements accounts (See
electric plant instruction 8.)
391 Office furniture and equipment.
This account shall include the cost of office furniture and equipment
owned by the utility and devoted to utility service, and not permanently
attached to buildings, except the cost of such furniture and equipment
which the utility elects to assign to other plant accounts on a
functional basis.
1. Bookcases and shelves.
2. Desks, chairs, and desk equipment.
3. Drafting-room equipment.
4. Filing, storage, and other cabinets.
5. Floor covering.
6. Library and library equipment.
7. Mechanical office equipment, such as accounting machines,
typewriters, etc.
8. Safes.
9. Tables.
392 Transportation equipment.
This account shall include the cost of transportation vehicles used
for utility purposes.
1. Airplanes.
2. Automobiles.
3. Bicycles.
4. Electrical vehicles.
5. Motor trucks.
6. Motorcycles.
7. Repair cars or trucks.
8. Tractors and trailers.
9. Other transportation vehicles.
393 Stores equipment.
This account shall include the cost of equipment used for the
receiving, shipping, handling, and storage of materials and supplies.
1. Chain falls.
2. Counters.
3. Cranes (portable).
4. Elevating and stacking equipment (portable).
5. Hoists.
6. Lockers.
7. Scales.
8. Shelving.
9. Storage bins.
10. Trucks, hand and power driven.
11. Wheelbarrows.
394 Tools, shop and garage equipment.
This account shall include the cost of tools, implements, and
equipment used in construction, repair work, general shops and garages
and not specifically provided for or includible in other accounts.
1. Air compressors.
2. Anvils.
3. Automobile repair shop equipment.
4. Battery charging equipment.
5. Belts, shafts and countershafts.
6. Boilers.
7. Cable pulling equipment.
8. Concrete mixers.
9. Drill presses.
10. Derricks.
11. Electric equipment.
12. Engines.
13. Forges.
14. Furnaces.
15. Foundations and settings specially constructed for and not
expected to outlast the equipment for which provided.
16. Gas producers.
17. Gasoline pumps, oil pumps and storage tanks.
18. Greasing tools and equipment.
19. Hoists.
20. Ladders.
21. Lathes.
22. Machine tools.
23. Motor-driven tools.
24. Motors.
25. Pipe threading and cutting tools
26. Pneumatic tools.
27. Pumps.
28. Riveters.
29. Smithing equipment.
30. Tool racks.
31. Vises.
32. Welding apparatus.
33. Work benches.
395 Laboratory equipment.
This account shall include the cost installed of laboratory equipment
used for general laboratory purposes and not specifically provided for
or includible in other departmental or functional plant accounts.
1. Ammeters.
2. Current batteries.
3. Frequency changers.
4. Galvanometers.
5. Inductometers.
6. Laboratory standard millivolt meters.
7. Laboratory standard volt meters.
8. Meter-testing equipment.
9. Millivolt meters.
10. Motor generator sets.
11. Panels.
12. Phantom loads.
13. Portable graphic ammeters, voltmeters, and wattmeters.
14. Portable loading devices.
15. Potential batteries.
16. Potentiometers.
17. Rotating standards.
18. Standard cell, reactance, resistor, and shunt.
19. Switchboards.
20. Synchronous timers.
21. Testing panels.
22. Testing resistors.
23. Transformers.
24. Voltmeters.
25. Other testing, laboratory, or research equipment not provided for
elsewhere.
396 Power operated equipment.
This account shall include the cost of power operated equipment used
in construction or repair work exclusive of equipment includible in
other accounts. Include, also, the tools and accessories acquired for
use with such equipment and the vehicle on which such equipment is
mounted.
1. Air compressors, including driving unit and vehicle.
2. Back filling machines.
3. Boring machines.
4. Bulldozers.
5. Cranes and hoists.
6. Diggers.
7. Engines.
8. Pile drivers.
9. Pipe cleaning machines.
10. Pipe coating or wrapping machines.
11. Tractors -- Crawler type.
12. Trenchers.
13. Other power operated equipment.
Note: It is intended that this account include only such large units
as are generally self-propelled or mounted on movable equipment.
397 Communication equipment.
This account shall include the cost installed of telephone,
telegraph, and wireless equipment for general use in connection with
utility operations.
1. Antennae.
2. Booths.
3. Cables.
4. Distributing boards.
5. Extension cords.
6. Gongs
7. Hand sets, manual and dial.
8. Insulators.
9. Intercommunicating sets.
10. Loading coils.
11. Operators' desks.
12. Poles and fixtures used wholly for telephone or telegraph wire.
13. Radio transmitting and receiving sets.
14. Remote control equipment and lines.
15. Sending keys.
16. Storage batteries
17. Switchboards.
18. Telautograph circuit connections.
19. Telegraph receiving sets.
20. Telephone and telegraph circuits.
21. Testing instruments.
22. Towers.
23. Underground conduit used wholly for telephone or telegraph wires
and cable wires.
398 Miscellaneous equipment.
This account shall include the cost of equipment, apparatus, etc.,
used in the utility operations, which is not includible in any other
account of this system of accounts.
1. Hospital and infirmary equipment.
2. Kitchen equipment.
3. Employees' recreation equipment.
4. Radios.
5. Restaurant equipment.
6. Soda fountains.
7. Operators' cottage furnishings.
8. Other miscellaneous equipment.
Note: Miscellaneous equipment of the nature indicated above wherever
practicable shall be included in the utility plant accounts on a
functional basis.
399 Other tangible property.
This account shall include the cost of tangible utility plant not
provided for elsewhere.
Income Chart of Accounts
400 Operating revenues.
401 Operation expense.
402 Maintenance expense.
403 Depreciation expense.
404 Amortization of limited-term electric plant.
405 Amortization of other electric plant.
406 Amortization of electric plant acquisition adjustments.
407 Amortization of property losses, unrecovered plant and regulatory
study costs.
408 (Reserved)
408.1 Taxes other than income taxes, utility operating income.
409 (Reserved)
409.1 Income taxes, utility operating income.
410 (Reserved)
410.1 Provisions for deferred income taxes, utility operating income.
411 (Reserved)
411.1 Provision for deferred income taxes -- Credit, utility
operating income.
411.3 (Reserved)
411.4 Investment tax credit adjustments, utility operations.
411.6 Gains from disposition of utility plant.
411.7 Losses from disposition of utility plant.
412 Revenues from electric plant leased to others.
413 Expenses of electric plant leased to others.
414 Other utility operating income.
415 Revenues from merchandising, jobbing, and contract work.
416 Costs and expenses of merchandising, jobbing, and contract work.
417 Revenues from nonutility operations.
417.1 Expenses of nonutility operations.
418 Nonoperating rental income.
418.1 Equity in earnings of subsidiary companies (Major only).
419 Interest and dividend income.
419.1 Allowance for other funds used during construction.
421 Miscellaneous nonoperating income.
421.1 Gain on disposition of property.
421.2 Loss on disposition of property.
425 Miscellaneous amortization.
426 (Reserved)
426.1 Donations.
426.2 Life insurance.
426.3 Penalties.
426.4 Expenditures for certain civic, political and related
activities.
426.5 Other deductions.
Total other income deductions. Total Other Income and Deductions.
408.2 Taxes other than income taxes, other income and deductions.
409.2 Income tax, other income and deductions.
410.2 Provision for deferred income taxes, other income and
deductions.
411.2 Provision for deferred income taxes -- Credit, other income and
deductions.
411.5 Investment tax credit adjustments, nonutility operations.
420 Investment tax credits.
Total taxes on other income and deductions. Net other income and
deductions.
427 Interest on long-term debt.
428 Amortization of debt discount and expense.
428.1 Amortization of loss on reacquired debt.
429 Amortization of premium on debt-Cr.
429.1 Amortization of gain on reacquired debt -- Credit.
430 Interest on debt to associated companies.
431 Other interest expense.
432 Allowance for borrowed funds used during construction -- Credit.
434 Extraordinary income.
435 Extraordinary deductions.
409.3 Income taxes, extraordinary items.
Net income.
18 CFR 50.1 Income Accounts
400 Operating revenues.
There shall be shown under this caption the total amount included in
the electric operating revenue accounts provided herein.
401 Operation expense.
There shall be shown under this caption the total amount included in
the electric operation expense accounts provided herein. (See note to
operating expense instruction 3.)
402 Maintenance expense.
There shall be shown under this caption the total amount included in
the electric maintenance expense accounts provided herein.
403 Depreciation expense.
A. This account shall include the amount of depreciation expense for
all classes of depreciable electric plant in service except such
depreciation expense as is chargeable to clearing accounts or to account
416, Costs and Expenses of Merchandising, Jobbing and Contract Work.
B. The utility shall keep such records of property and property
retirements as will reflect the service life of property which has been
retired and aid in estimating probable service life by mortality,
turnover, or other appropriate methods; and also such records as will
reflect the percentage of salvage and costs of removal for property
retired from each account, or subdivision thereof, for depreciable
electric plant.
Note A: Depreciation expense applicable to property included in
account 104, Electric Plant Leased to Others, shall be charged to
account 413, Expenses of Electric Plant Leased to Others.
Note B: Depreciation expenses applicable to transportation
equipment, shop equipment, tools, work equipment, power operated
equipment and other general equipment may be charged to clearing
accounts as necessary in order to obtain a proper distribution of
expenses between construction and operation.
Note C: Depreciation expense applicable to transportation equipment
used for transportation of fuel from the point of acquisition to the
unloading point shall be charged to Account 151, Fuel Stock.
404 Amortization of limited-term electric plant.
This account shall include amortization charges applicable to amounts
included in the electric plant accounts for limited-term franchises,
licenses, patent rights, limited-term interests in land, and
expenditures on leased property where the service life of the
improvements is terminable by action of the lease. The charges to this
account shall be such as to distribute the book cost of each investment
as evenly as may be over the period of its benefit to the utility.
(See account 111, Accumulated Provision for Amortization of Electric
Utility Plant.)
405 Amortization of other electric plant.
A. When authorized by the Commission, this account shall include
charges for amortization of intangible or other electric utility plant
which does not have a definite or terminable life and which is not
subject to charges for depreciation expense.
B. This account shall be supported in such detail as to show the
amortization applicable to each investment being amortized, together
with the book cost of the investment and the period over which it is
being written off.
406 Amortization of electric plant acquisition adjustments.
This account shall be debited or credited, as the case may be, with
amounts includible in operating expenses, pursuant to approval or order
of the Commission, for the purpose of providing for the extinguishment
of the amount in account 114, Electric Plant Acquisition Adjustments.
407 Amortization of property losses, unrecovered plant and regulatory
study costs.
This account shall be charged with amounts credited to account 182.1,
Extraordinary Property Losses, and account 182.2, Unrecovered Plant and
Regulatory Study Costs, when the Commission has authorized the amount in
the latter account to be amortized by charges to electric operations.
408 (Reserved)
A. These accounts shall include the amounts of ad valorem, gross
revenue or gross receipts taxes, state unemployment insurance, franchise
taxes, Federal excise taxes, social security taxes, and all other taxes
assessed by Federal, state, county, municipal, or other local
governmental authorities, except income taxes.
B. These accounts shall be charged in each accounting period with the
amounts of taxes which are applicable thereto, with concurrent credits
to account 236, Taxes Accrued, or account 165, Prepayments, as
appropriate. When it is not possible to determine the exact amounts of
taxes, the amounts shall be estimated and adjustments made in current
accruals as the actual tax levies become known.
C. The charges to these accounts shall be made or supported so as to
show the amount of each tax and the basis upon which each charge is
made. In the case of a utility rendering more than one utility service,
taxes of the kind includible in these accounts shall be assigned
directly to the utility department the operation of which gave rise to
the tax in so far as practicable. Where the tax is not attributable to
a specific utility department, it shall be distributed among the utility
departments or nonutility operations on an equitable basis after
appropriate study to determine such basis.
Note 1: Special assessments for street and similar improvements
shall be included in the appropriate utility plant or nonutility
property account.
Note 2: Taxes specifically applicable to construction shall be
included in the cost of construction.
Note 3: Gasoline and other sales taxes shall be charged as far as
practicable to the same account as the materials on which the tax is
levied.
Note 4: Social security and other forms of so-called payroll taxes
shall be distributed to utility departments and to nonutility functions
on a basis related to payroll. Amounts applicable to construction shall
be charged to the appropriate plant account.
Note 5: Interest on tax refunds or deficiencies shall not be
included in these accounts but in account 419, Interest and Dividend
Income, or 431, Other Interest Expense, as appropriate.
408.1 Taxes other than income taxes, utility operating income.
This account shall include those taxes other than income taxes which
relate to utility operating income. This account shall be maintained so
as to allow ready identification of the various classes of taxes
relating to Utility Operating Income (by department), Utility Plant
Leased to Others and Other Utility Operating Income.
408.2 Taxes other than income taxes, other income and deductions.
This account shall include those taxes other than income taxes which
relate to Other Income and Deductions.
409 (Reserved)
A. These accounts shall include the amounts of local, state and
Federal income taxes on income properly accruable during the period
covered by the income statement to meet the actual liability for such
taxes. Concurrent credits for the tax accruals shall be made to account
236, Taxes Accrued, and as the exact amounts of taxes become known, the
current tax accruals shall be adjusted by charges or credits to these
accounts, so that these accounts as nearly as can be ascertained shall
include the actual taxes payable by the utility.
B. The accruals for income taxes shall be apportioned among utility
departments and to Other Income and Deductions so that, as nearly as
practicable, each tax shall be included in the expenses of the utility
department or Other Income and Deductions, the income from which gave
rise to the tax. The tax effects relating to Interest Charges shall be
allocated between utility and nonutility operations. The basis for this
allocation shall be the ratio of net investment in utility plant to net
investment in nonutility plant.
Note 1: Taxes assumed by the utility on interest shall be charged to
account 431, Other Interest Expense.
Note 2: Interest on tax refunds or deficiencies shall not be
included in these accounts but in account 419, Interest and Dividend
Income, or account 431, Other Interest Expense, as appropriate.
409.1 Income taxes, utility operating income.
This account shall include the amount of those local, state and
Federal income taxes which relate to utility operating income. This
account shall be maintained so as to allow ready identification of tax
effects (both positive and negative) relating to Utility Operating
Income (by department), Utility Plant Leased to Others and Other Utility
Operating Income.
409.2 Income taxes, other income and deductions.
This account shall include the amount of those local, state and
Federal income taxes (both positive and negative), which relate to Other
Income and Deductions.
409.3 Income taxes, extraordinary items.
This account shall include the amount of those local, state and
Federal income taxes (both positive and negative), which relate to
Extraordinary Items.
410 (Reserved)
A. Accounts 410.1 and 410.2 shall be debited, and Accumulated
Deferred Income Taxes shall be credited, with amounts equal to any
current deferrals of taxes on income or any allocations of deferred
taxes originating in prior periods, as provided by the texts of accounts
190, 281, 282, and 283. There shall not be netted against entries
required to be made to these accounts any credit amounts appropriately
includible in account 411.1 or 411.2.
B. Accounts 411.1 and 411.2 shall be credited, and Accumulated
Deferred Income Taxes shall be debited, with amounts equal to any
allocations of deferred taxes originating in prior periods or any
current deferrals of taxes on income, as provided by the texts of
accounts 190, 281, 282, and 283. There shall not be netted against
entries required to be made to these accounts any debit amounts
appropriately includible in account 410.1 or 410.2.
410.1 Provision for deferred income taxes, utility operating income.
This account shall include the amounts of those deferrals of taxes
and allocations of deferred taxes which relate to Utility Operating
Income (by department).
410.2 Provision for deferred income taxes, other income and
deductions.
This account shall include the amounts of those deferrals of taxes
and allocations of deferred taxes which relate to Other Income and
Deductions.
411 (Reserved)
411.1 Provision for deferred income taxes -- Credit, utility
operating income.
This account shall include the amounts of those allocations of
deferred taxes and deferrals of taxes, credit, which relate to Utility
Operating Income (by department).
411.2 Provision for deferred income taxes -- Credit, other income and
deductions.
This account shall include the amounts of those allocations of
deferred taxes and deferrals of taxes, credit, which relate to Other
Income and Deductions.
411.3 (Reserved)
A. Account 411.4 shall be debited with the amounts of investment tax
credits related to electric utility property that are credited to
account 255, Accumulated Deferred Investment Tax Credits, by companies
which do not apply the entire amount of the benefits of the investment
credit as a reduction of the overall income tax expense in the year in
which such credit is realized (see account 255).
B. Account 411.4 shall be credited with the amounts debited to
account 255 for proportionate amounts of tax credit deferrals allocated
over the average useful life of electric utility property to which the
tax credits relate or such lesser period of time as may be adopted and
consistently followed by the company.
C. Account 411.5 shall also be debited and credited as directed in
paragraphs A and B, for investment tax credits related to nonutility
property.
411.4 Investment tax credit adjustments, utility operations.
This account shall include the amount of those investment tax credit
adjustments related to property used in Utility Operations (by
department).
411.5 Investment tax credit adjustments, nonutility operations.
This account shall include the amount of those investment tax credit
adjustments related to property used in Nonutility Operations.
411.6 Gains from disposition of utility plant.
This account shall include, as approved by the Commission, amounts
relating to gains from the disposition of future use utility plant
including amounts which were previously recorded in and transferred from
account 105, Electric Plant Held for Future Use, under the provisions of
paragraphs B, C, and D thereof. Income taxes relating to gains recorded
in this account shall be recorded in account 409.1, Income Taxes,
Utility Operating Income.
411.7 Losses from disposition of utility plant.
This account shall include, as approved by the Commission, amounts
relating to losses from the disposition of future use utility plant
including amounts which were previously recorded in and transferred from
account 105, Electric Plant Held for Future Use, under the provisions of
paragraphs B, C, and D thereof. Income taxes relating to losses,
recorded in this account shall be recorded in account 409.1, Income
Taxes, Utility Operating Income.
412 Revenues from electric plant leased to others.
413 Expenses of electric plant leased to others.
A. These accounts shall include respectively, revenues from electric
property constituting a distinct operating unit or system leased by the
utility to others, and which property is properly includible in account
104, Electric Plant Leased to Others, and the expenses attributable to
such property.
B. The detail of expenses shall be kept or supported so as to show
separately the following:
Operation.
Maintenance.
Depreciation.
Amortization.
Note: Related taxes shall be recorded in account 408.1, Taxes Other
Than Income Taxes, Utility Operating Income, or account 409.1, Income
Taxes, Utility Operating Income, as appropriate.
414 Other utility operating income.
A. This account shall include the revenues received and expenses
incurred in connection with the operations of utility plant, the book
cost of which is included in account 118, Other Utility Plant.
B. The expenses shall include every element of cost incurred in such
operations, including depreciation, rents, and insurance.
Note: Related taxes shall be recorded in account 408.1, Taxes Other
Than Income Taxes, Utility Operating Income, or account 409.1, Income
Taxes, Utility Operating Income, as appropriate.
415 Revenues from merchandising, jobbing and contract work.
416 Costs and expenses of merchandising, jobbing and contract work.
A. These accounts shall include respectively, all revenues derived
from the sale of merchandise and jobbing or contract work, including any
profit or commission accruing to the utility on jobbing work performed
by it as agent under contracts whereby it does jobbing work for another
for a stipulated profit or commission, and all expenses incurred in such
activities. Interest related income from installment sales shall be
recorded in Account 419, Interest and Dividend income.
B. Records in support of these accounts shall be so kept as to permit
ready summarization of revenues, costs and expenses by such major items
as are feasible.
Note 1: The classification of revenues, costs, and expenses of
merchandising, jobbing, and contract work as nonoperating, and thus
inclusion in this account, is for accounting purposes. It does not
preclude consideration of justification to the contrary for ratemaking
or other purposes.
Note 2: Related taxes shall be recorded in account 408.2, Taxes
Other Than Income Taxes, Other Income and Deductions, or account 409.2,
Income Taxes, Other Income and Deductions, as appropriate.
Account 415:
1. Revenues from sale of merchandise and from jobbing and contract
work.
2. Discounts and allowances made in settlement of bills for
merchandise and jobbing work.
Account 416:
Labor --
1. Canvassing and demonstrating appliances in homes and other places
for the purpose of selling appliances.
2. Demonstrating and selling activities in sales rooms.
3. Installing appliances on customer premises where such work is done
only for purchasers of appliances from the utility.
4. Installing wiring, piping, or other property work, on a jobbing or
contract basis.
5. Preparing advertising materials for appliance sales purposes.
6. Receiving and handling customer orders for merchandise or for
jobbing services.
7. Cleaning and tidying sales rooms.
8. Maintaining display counters and other equipment used in
merchandising.
9. Arranging merchandise in sales rooms and decorating display
windows.
10. Reconditioning repossessed appliances.
11. Bookkeeping and other clerical work in connection with
merchandise and jobbing activities.
12. Supervising merchandise and jobbing operations.
Materials and expenses --
13. Advertising in newspapers, periodicals, radio, television, etc.
14. Cost of merchandise sold and of materials used in jobbing work.
15. Stores expenses on merchandise and jobbing stocks.
16. Fees and expenses of advertising and commercial artists'
agencies.
17. Printing booklets, dodgers, and other advertising data.
18. Premiums given as inducement to buy appliances.
19. Light, heat and power.
20. Depreciation on equipment used primarily for merchandise and
jobbing operations.
21. Rent of sales rooms or of equipment.
22. Transportation expense in delivery and pick-up of appliances by
utility's facilities or by others.
23. Stationery and office supplies and expenses.
24. Losses from uncollectible merchandise and jobbing accounts.
417 Revenues from nonutility operations.
417.1 Expenses of nonutility operations.
A. These accounts shall include revenues and expenses applicable to
operations which are nonutility in character but nevertheless constitute
a distinct operating activity of the enterprise as a whole, such as the
operation of an ice department where applicable statutes do not define
such operation as a utility, or the operation of a servicing
organization for furnishing supervision, management, engineering, and
similar services to others.
B. The expenses shall include all elements of costs incurred in such
operations, and the accounts shall be maintained so as to permit ready
summarization as follows:
Operation.
Maintenance.
Rents.
Depreciation.
Amortization.
Note: Related taxes shall be recorded in account 408.2, Taxes Other
Than Income Taxes, Other Income and Deductions, or account 409.2, Income
Taxes, Other Income and Deductions, as appropriate.
418 Nonoperating rental income.
A. This account shall include all rent revenues and related expenses
of land, buildings, or other property included in account 121,
Nonutility Property, which is not used in operations covered by account
417 or 417.1.
B. The expenses shall include all elements of costs incurred in the
ownership and rental of property and the accounts shall be maintained so
as to permit ready summarization as follows:
Operation.
Maintenance.
Rents.
Depreciation.
Amortization.
Note: Related taxes shall be recorded in account 408.2. Taxes Other
Than Income Taxes, Other Income and Deductions, or account 409.2, Income
Taxes, Other Income and Deductions, as appropriate.
418.1 Equity in earnings of subsidiary companies (Major only).
This account shall include the utility's equity in the earnings or
losses of subsidiary companies for the year.
419 Interest and dividend income.
A. This account shall include interest revenues on securities, loans,
notes, advances, special deposits, tax refunds and all other
interest-bearing assets, and dividends on stocks of other companies,
whether the securities on which the interest and dividends are received
are carried as investments or included in sinking or other special fund
accounts.
B. This account may include the pro rata amount necessary to
extinguish (during the interval between the date of acquisition and the
date of maturity) the difference between the cost to the utility and the
face value of interest-bearing securities. Amounts thus credited or
charged shall be concurrently included in the accounts in which the
securities are carried.
C. Where significant in amount, expenses, excluding operating taxes
and income taxes, applicable to security investments and to interest and
dividend revenues thereon shall be charged hereto.
Note 1: Related taxes shall be recorded in account 408.2, Taxes
Other Than Income Taxes, Other Income and Deductions, or account 409.2,
Income Taxes, Other Income and Deductions, as appropriate.
Note 2: Interest accrued, the payment of which is not reasonably
assured, dividends receivable which have not been declared or
guaranteed, and interest or dividends upon reacquired securities issued
or assumed by the utility shall not be credited to this account.
419.1 Allowance for other funds used during construction.
This account shall include concurrent credits for allowance for other
funds used during construction, not to exceed amounts computed in
accordance with the formula prescribed in Electric Plant Instruction
3(17).
420 Investment tax credits.
This account shall be credited as follows with investment tax credit
amounts not passed on to customers:
A. By amounts equal to debits to accounts 411.4, Investment Tax
Credit Adjustments, Utility Operations, and 411.5, Investment Tax Credit
Adjustments, Nonutility Operations, for investment tax credits used in
calculating income taxes for the year when the company's accounting
provides for nondeferral of all or a portion of such credits; and,
B. By amounts equal to debits to account 255, Accumulated deferred
investment tax credits, for proportionate amounts of tax credit
deferrals allocated over the average useful life of the property to
which the tax credits relate, or such lesser period of time as may be
adopted and consistently used by the company.
421 Miscellaneous nonoperating income.
This account shall include all revenue and expense items except taxes
properly includible in the income account and not provided for
elsewhere. Related taxes shall be recorded in account 408.2, Taxes
Other Than Income Taxes, Other Income and Deductions, or account 409.2,
Income Taxes, Other Income and Deductions, as appropriate.
1. Profit on sale of timber. (See electric plant instruction 7C.)
2. Profits from operations of others realized by the utility under
contracts.
3. Gains on disposition of investments. Also, gains on reacquisition
and resale or retirement of utilities debt securities when the gain is
not amortized and used by a jurisdictional regulatory agency to reduce
embedded debt cost in establishing rates. See General Instruction 17.
421.1 Gain on disposition of property.
This account shall be credited with the gain on the sale, conveyance,
exchange, or transfer of utility or other property to another. Amounts
relating to gains on land and land rights held for future use recorded
in account 105, Electric Plant Held for Future Use will be accounted for
as prescribed in paragraphs B, C, and D thereof. (See electric plant
instructions 5F, 7E, and 10E.) Income taxes on gains recorded in this
account shall be recorded in account 409.2, Income Taxes, Other Income
and Deductions.
421.2 Loss on disposition of property.
This account shall be charged with the loss on the sale, conveyance,
exchange or transfer of utility or other property to another. Amounts
relating to losses on land and land rights held for future use recorded
in account 105, Electric Plant Held for Future Use will be accounted for
as prescribed in paragraphs B, C, and D thereof. (See electric plant
instructions 5F, 7E, and 10E.) The reduction in income taxes relating to
losses recorded in this account shall be recorded in account 409.2,
Income Taxes, Other Income and Deductions.
425 Miscellaneous amortization.
This account shall include amortization charges not includible in
other accounts which are properly deductible in determining the income
of the utility before interest charges. Charges includible herein, if
significant in amount, must be in accordance with an orderly and
systematic amortization program.
1. Amortization of utility plant acquisition adjustments, or of
intangibles included in utility plant in service when not authorized to
be included in utility operating expenses by the Commission.
2. Other miscellaneous amortization charges allowed to be included in
this account by the Commission.
426 (Reserved)
These accounts shall include miscellaneous expense items which are
nonoperating in nature but which are properly deductible before
determining total income before interest charges.
Note: The classification of expenses as nonoperating and their
inclusion in these accounts is for accounting purposes. It does not
preclude Commission consideration of proof to the contrary for
ratemaking or other purposes.
426.1 Donations.
This account shall include all payments or donations for charitable,
social or community welfare purposes.
426.2 Life insurance.
This account shall include all payments for life insurance of
officers and employees where company is beneficiary (net premiums less
increase in cash surrender value of policies).
426.3 Penalties.
This account shall include payments by the company for penalties or
fines for violation of any regulatory statutes by the company or its
officials.
426.4 Expenditures for certain civic, political and related
activities.
This account shall include expenditures for the purpose of
influencing public opinion with respect to the election or appointment
of public officials, referenda, legislation, or ordinances (either with
respect to the possible adoption of new referenda, legislation or
ordinances or repeal or modification of existing referenda, legislation
or ordinances) or approval, modification, or revocation of franchises;
or for the purpose of influencing the decisions of public officials, but
shall not include such expenditures which are directly related to
appearances before regulatory or other governmental bodies in connection
with the reporting utility's existing or proposed operations.
426.5 Other deductions.
This account shall include other miscellaneous expenses which are
nonoperating in nature, but which are properly deductible before
determining total income before interest charges.
1. Loss relating to investments in securities written-off or
written-down.
2. Loss on sale of investments.
3. Loss on reacquisition, resale or retirement of utility's debt
securities, when the loss is not amortized and used by a jurisdictional
regulatory agency to increase embedded debt cost in establishing rates.
See General Instruction 17.
4. Preliminary survey and investigation expenses related to abandoned
projects, when not written-off to the appropriate operating expense
account.
5. Costs of preliminary abandonment costs recorded in accounts 182.1,
Extraordinary Property Losses, and 182.2, Unrecovered Plant and
Regulatory Study Costs, not allowed to be amortized to account 407,
Amortization of Property Losses, Unrecovered Plant and Regulatory Study
Costs.
427 Interest on long-term debt.
A. This account shall include the amount of interest on outstanding
long-term debt issued or assumed by the utility, the liability for which
is included in account 221, Bonds, or account 224, Other Long-Term Debt.
B. This account shall be so kept or supported as to show the interest
accruals on each class and series of long-term debt.
Note: This account shall not include interest on nominally issued or
nominally outstanding long-term debt, including securities assumed.
428 Amortization of debt discount and expense.
A. This account shall include the amortization of unamortized debt
discount and expense on outstanding long-term debt. Amounts charged to
this account shall be credited concurrently to accounts 181, Unamortized
Debt Expense, and 226, Unamortized Discount on Long-Term Debt -- Debit.
B. This account shall be so kept or supported as to show the debt
discount and expense on each class and series of long-term debt.
428.1 Amortization of loss on reacquired debt.
A. This account shall include the amortization of the losses on
reacquisition of debt. Amounts charged to this account shall be
credited concurrently to account 189, Unamortized Loss on Reacquired
Debt.
B. This account shall be maintained so as to allow ready
identification of the loss amortized applicable to each class and series
of long-term debt reacquired. See General Instruction 17.
429 Amortization of premium on debt -- Cr.
A. This account shall include the amortization of unamortized net
premium on outstanding long-term debt. Amounts credited to this account
shall be charged concurrently to account 225, Unamortized Premium on
Long-Term Debt.
B. This account shall be so kept or supported as to show the premium
on each class and series of long-term debt.
429.1 Amortization of gain on reacquired debt -- Credit.
A. This account shall include the amortization of the gains realized
from reacquisition of debt. Amounts credited to this account shall be
charged concurrently to account 257, Unamortized Gain on Reacquired
Debt.
B. This account shall be maintained so as to allow ready
identification of the gains amortized applicable to each class and
series of long-term debt reacquired. See General Instruction 17.
430 Interest on debt to associated companies.
A. This account shall include the interest accrued on amounts
included in account 223, Advances from Associated Companies, and on all
other obligations to associated companies.
B. The records supporting the entries to this account shall be so
kept as to show to whom the interest is to be paid, the period covered
by the accrual, the rate of interest and the principal amount of the
advances or other obligations on which the interest is accrued.
431 Other interest expense.
This account shall include all interest charges not provided for
elsewhere.
1. Interest on notes payable on demand or maturing one year or less
from date and on open accounts, except notes and accounts with
associated companies.
2. Interest on customers' deposits.
3. Interest on claims and judgments, tax assessments, and assessments
for public improvements past due.
4. Income and other taxes levied upon bondholders of utility and
assumed by it.
432 Allowance for borrowed funds used during construction -- Credit.
This account shall include concurrent credits for allowance for
borrowed funds used during construction, not to exceed amounts computed
in accordance with the formula prescribed in Electric Plant Instruction
3(17).
434 Extraordinary income.
This account shall be credited with gains of unusual nature and
infrequent occurrence, which would significantly distort the current
year's income computed before Extraordinary Items, if reported other
than as extraordinary items. Income tax relating to the amounts
recorded in this account shall be recorded in account 409.3, Income
Taxes, Extraordinary Items. (See General Instruction 7.)
435 Extraordinary deductions.
This account shall be debited with losses of unusual nature and
infrequent occurrence, which would significantly distort the current
year's income computed before Extraordinary Items, if reported other
than as extraordinary items. Income tax relating to the amounts
recorded in this account shall be recorded in account 409.3, Income
Taxes, Extraordinary Items. (See General Instruction 7.)
Retained Earnings Chart of Accounts
433 Balance transferred from income.
436 Appropriations of retained earnings.
437 Dividends declared -- preferred stock.
438 Dividends declared -- common stock.
439 Adjustments to retained earnings.
18 CFR 50.1 Retained Earnings Accounts
433 Balance transferred from income.
This account shall include the net credit or debit transferred from
income for the year.
436 Appropriations of retained earnings.
This account shall include appropriations of retained earnings.
1. Appropriations required under terms of mortgages, orders of
courts, contracts, or other agreements.
2. Appropriations required by action of regulatory authorities.
3. Other appropriations made at option of utility for specific
purposes.
437 Dividends declared -- preferred stock.
A. This account shall include amounts declared payable out of
retained earnings as dividends on actually outstanding preferred or
prior lien capital stock issued by the utility.
B. Dividends shall be segregated for each class and series of
preferred stock as to those payable in cash, stock, and other forms. If
not payable in cash, the medium of payment shall be described with
sufficient detail to identify it.
438 Dividends declared -- common stock.
A. This account shall include amounts declared payable out of
retained earnings as dividends on actually outstanding common capital
stock issued by the utility.
B. Dividends shall be segregated for each class of common stock as to
those payable in cash, stock and other forms. If not payable in cash,
the medium of payment shall be described with sufficient detail to
identify it.
439 Adjustments to retained earnings.
A. This account shall, with prior Commission approval, include
significant nonrecurring transactions accounted for as prior period
adjustments, as follows:
(1) Correction of an error in the financial statements of a prior
year.
(2) Adjustments that result from realization of income tax benefits
of pre-acquisition operating loss carryforwards of purchased
subsidiaries.
All other items of profit and loss recognized during a year shall be
included in the determination of net income for that year;
B. Adjustments, charges, or credits due to losses on reacquisition,
resale or retirement of the company's own capital stock shall be
included in this account. (See account 210, Gain on Resale or
Cancellation of Reacquired Capital Stock, for the treatment of gains.)
Operating Revenue Chart of Accounts
440 Residential sales.
442 Commercial and industrial sales.
444 Public street and highway lighting.
445 Other sales to public authorities (Major only).
446 Sales to railroads and railways (Major only).
447 Sales for resale.
448 Interdepartmental sales.
449 Other sales (Nonmajor only).
449.1 Provision for rate refunds.
450 Forfeited discounts.
451 Miscellaneous service revenues.
453 Sales of water and water power.
454 Rent from electric property.
455 Interdepartmental rents.
456 Other electric revenues.
18 CFR 50.1 Operating Revenue Accounts
440 Residential sales.
A. This account shall include the net billing for electricity
supplied for residential or domestic purposes.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received under each rate schedule shall be readily
available.
Note: When electricity supplied through a single meter is used for
both residential and commercial purposes, the total revenue shall be
included in this account, or account 442, Commercial and Industrial
Sales, according to the rate schedule which is applied. If the same
rate schedules apply to residential as to commercial and industrial
service, classification shall be made according to principal use.
442 Commercial and industrial sales.
A. This account shall include the net billing for electricity
supplied to customers for commercial and industrial purposes.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received under each rate schedule shall be readily
available. Records shall be maintained also so as to show separately
the revenues from commercial and industrial customers (1) which have
demands generally of 1000 kw or more, and (2) those which have demands
generally less than 1000 kw. Reasonable deviations above or below the
1000 kw demand are permissible in order that transfers of customers
between the two classes during the year may be minimized.
Note A: If the utility classifies large commercial and industrial
customers and related revenues on a lesser basis than 1000 kilowatts of
demand, or segregates industrial customers and related revenues
according to a recognized definition of an industrial customer, such
classifications are acceptable in lieu of those otherwise required by
the text of this account on the basis of 1000 kilowatts of demand.
Note B: When electricity supplied through a single meter is used for
both commercial and residential purposes, the total revenue shall be
included in this account, or in account 440, Residential Sales,
according to the rate schedule which is applied. If the same rate
schedules apply to residential as to commercial and industrial service,
classification shall be made according to the principal use.
444 Public street and highway lighting.
A. This account shall include the net billing for electricity
supplied and services rendered for the purposes of lighting streets,
highways, parks and other public places, or for traffic or other signal
system service, for municipalities or other divisions or agencies of
state or federal governments.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received from each customer shall be readily
available. In addition, the records shall be maintained so as to show
the revenues from (1) contracts which include both electricity and
services, and (2) contracts which include sales of electricity only.
445 Other sales to public authorities (Major only).
A. This account shall include the net billing for electricity
supplied to municipalities or divisions or agencies of federal or state
governments, under special contracts or agreements or service
classifications applicable only to public authorities, except such
revenues as are includible in accounts 444 and 447.
B. Records shall be maintained so as to show the quantity of
electricity sold and the revenues received from each customer.
446 Sales to railroads and railways (Major only).
A. This account shall include the net billing for electricity
supplied to railroads and interurban and street railways, for general
railroad use, including the propulsion of cars or locomotives, where
such electricity is supplied under separate and distinct rate schedules.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received from each customer shall be readily
available.
Note: Revenues from incidental use of electricity furnished under a
contract for propulsion of cars or locomotives shall be included herein.
447 Sales for resale.
A. This account shall include the net billing for electricity
supplied to other electric utilities or to public authorities for resale
purposes.
B. Records shall be maintained so as to show the quantity of
electricity sold and the revenue received from each customer.
Note: Revenues from electricity supplied to other public utilities
for use by them and not for distribution, shall be included in account
442, Commercial and Industrial Sales, unless supplied under the same
contract as and not readily separable from revenues includible in this
account.
448 Interdepartmental sales.
A. This account shall include amounts charged by the electric
department at tariff or other specified rates for electricity supplied
by it to other utility departments.
B. Records shall be maintained so that the quantity of electricity
supplied each other department and the charges therefor shall be readily
available.
449 Other sales (Nonmajor only).
A. This account shall include revenues for electricity supplied which
are not provided for elsewhere.
B. Records shall be maintained so as to show the quantity of
electricity sold and the revenues received from each customer.
449.1 Provision for rate refunds.
A. This account shall be charged with provisions for the estimated
pretax effects on net income of the portions of amounts being collected
subject to refund which are estimated to be required to be refunded.
Such provisions shall be credited to Account 229, Accumulated Provision
for Rate Refunds.
B. This account shall also be charged with amounts refunded when such
amounts had not been previously accrued.
C. Income tax effects relating to the amounts recorded in this
account shall be recorded in account 410.1, Provision for Deferred
Income Taxes, Utility Operating Income, or account 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, as
appropriate.
450 Forfeited discounts.
This account shall include the amount of discounts forfeited or
additional charges imposed because of the failure of customers to pay
their electric bills on or before a specified date.
451 Miscellaneous service revenues.
This account shall include revenues for all miscellaneous services
and charges billed to customers which are not specifically provided for
in other accounts.
1. Fees for changing, connecting or disconnecting service.
2. Profit on maintenance of appliances, wiring, piping or other
installations on customers' premises.
3. Net credit or debit (cost less net salvage and less payment from
customers) on closing of work orders for plant installed for temporary
service of less than one year. (See account 185, Temporary Facilities.)
4. Recovery of expenses in connection with current diversion cases
(billing for the electricity consumed shall be included in the
appropriate electric revenue account).
453 Sales of water and water power.
A. This account shall include revenues derived from the sale of water
for irrigation, domestic, industrial or other uses, or for the
development by others of water power, or for headwater benefits; also,
revenues derived from furnishing water power for mechanical purposes
when the investment in the property used in supplying such water or
water power is carried as electric plant in service.
B. The records for this account shall be kept in such manner as to
permit an analysis of the rates charged and the purposes for which the
water was used.
454 Rent from electric property.
A. This account shall include rents received for the use by others of
land, buildings, and other property devoted to electric operations by
the utility.
B. When property owned by the utility is operated jointly with others
under a definite arrangement for apportioning the actual expenses among
the parties to the arrangement, any amount received by the utility for
interest or return or in reimbursement of taxes or depreciation on the
property shall be credited to this account.
Note: Do not include in this account rents from property
constituting an operating unit or system. (See account 412, Revenues
from Electric Plant Leased to Others.)
455 Interdepartmental rents.
This account shall include rents credited to the electric department
on account of rental charges made against other departments (gas, water,
etc.) of the utility. In the case of property operated under a definite
arrangement to allocate the costs among the departments using the
property, any reimbursement to the electric department for interest or
return and depreciation and taxes shall be credited to this account.
456 Other electric revenues.
This account shall include revenues derived from electric operations
not includible in any of the foregoing accounts. It shall also include
in a separate subaccount revenues received from operation of fish and
wildlife, and recreation facilities whether operated by the company or
by contract concessionaires, such as revenues from leases, or rentals of
land for cottage, homes, or campsites.
1. Commission on sale or distribution of electricity of others when
sold under rates filed by such others.
2. Compensation for minor or incidental services provided for others
such as customer billing, engineering, etc.
3. Profit or loss on sale of material and supplies not ordinarily
purchased for resale and not handled through merchandising and jobbing
accounts.
4. Sale of steam, but not including sales made by a steamheating
department or transfers of steam under joint facility operations.
5. Revenues from transmission of electricity of others over
transmission facilities of the utility.
6. Include in a separate subaccount revenues in payment for rights
and/or benefits received from others which are realized through
research, development, and demonstration ventures. In the event the
amounts received are so large as to distort revenues for the year in
which received (5 percent of net income before application of the
benefit) the amounts shall be credited to Account 253, Other Deferred
Credits, and amortized by credits to this account over a period not to
exceed 5 years.
Operation and Maintenance Expense Chart of Accounts
500 Operation supervision and engineering.
501 Fuel.
502 Steam expenses (Major only).
503 Steam from other sources.
504 Steam transferred -- Credit.
505 Electric expenses (Major only).
506 Miscellaneous steam power expenses (Major only).
507 Rents.
508 Operation supplies and expenses (Nonmajor only).
510 Maintenance supervision and engineering (Major only).
511 Maintenance of structures (Major only).
512 Maintenance of boiler plant (Major only).
513 Maintenance of electric plant (Major only).
514 Maintenance of miscellaneous steam plant (Major only).
515 Maintenance of steam production plant (Nonmajor only).
517 Operation supervision and engineering (Major only).
518 Nuclear fuel expense (Major only).
519 Coolants and water (Major only).
520 Steam expenses (Major only).
521 Steam from other sources (Major only).
522 Steam transferred -- Credit. (Major only).
523 Electric expenses (Major only).
524 Miscellaneous nuclear power expenses (Major only).
525 Rents (Major only).
528 Maintenance supervision and engineering (Major only).
529 Maintenance of structures (Major only).
530 Maintenance of reactor plant equipment (Major only).
531 Maintenance of electric plant (Major only).
532 Maintenance of miscellaneous nuclear plant (Major only).
535 Operation supervision and engineering.
536 Water for power.
537 Hydraulic expenses (Major only).
538 Electric expenses (Major only).
539 Miscellaneous hydraulic power generation expenses (Major only).
540 Rents.
540.1 Operation supplies and expenses (Nonmajor only).
541 Maintenance supervision and engineering (Major only).
542 Maintenance of structures (Major only).
543 Maintenance of reservoirs, dams and waterways (Major only).
544 Maintenance of electric plant (Major only).
545 Maintenance of miscellaneous hydraulic plant (Major only).
545.1 Maintenance of hydraulic production plant (Nonmajor only).
546 Operation supervision and engineering.
547 Fuel.
548 Generation expenses (Major only).
549 Miscellaneous other power generation expenses (Major only).
550 Rents.
550.1 Operation supplies and expenses (Nonmajor only).
551 Maintenance supervision and engineering (Major only).
552 Maintenance of structures (Major only).
553 Maintenance of generating and electric plant (Major only).
554 Maintenance of miscellaneous other power generation plant (Major
only).
554.1 Maintenance of other power production plant (Nonmajor only).
555 Purchased power.
556 System control and load dispatching (Major only).
557 Other expenses.
560 Operation supervision and engineering.
561 Load dispatching (Major only).
562 Station expenses (Major only).
563 Overhead line expenses (Major only).
564 Underground line expenses (Major only).
565 Transmission of electricity by others (Major only).
566 Miscellaneous transmission expenses (Major only).
567 Rents.
567.1 Operation supplies and expenses (Nonmajor only).
568 Maintenance supervision and engineering (Major only).
569 Maintenance of structures (Major only).
570 Maintenance of station equipment (Major only).
571 Maintenance of overhead lines (Major only).
572 Maintenance of underground lines (Major only).
573 Maintenance of miscellaneous transmission plant (Major only).
574 Maintenance of transmission plant (Nonmajor only).
580 Operation supervision and engineering.
581 Load dispatching (Major only).
581.1 Line and station expenses (Nonmajor only).
582 Station expenses (Major only).
583 Overhead line expenses (Major only).
584 Underground line expenses (Major only).
585 Street lighting and signal system expenses.
586 Meter expenses.
587 Customer installations expenses.
588 Miscellaneous distribution expenses.
589 Rents.
590 Maintenance supervision and engineering (Major only).
591 Maintenance of structures (Major only).
592 Maintenance of station equipment (Major only).
592.1 Maintenance of structures and equipment (Nonmajor only).
593 Maintenance of overhead lines (Major only).
594 Maintenance of underground lines (Major only).
594.1 Maintenance of lines (Nonmajor only).
595 Maintenance of line transformers.
596 Maintenance of street lighting and signal systems.
597 Maintenance of meters.
598 Maintenance of miscellaneous distribution plant.
901 Supervision (Major only).
902 Meter reading expenses.
903 Customer records and collection expenses.
904 Uncollectible accounts.
905 Miscellaneous customer accounts expenses (Major only).
906 Customer service and informational expenses (Nonmajor only).
907 Supervision (Major only).
908 Customer assistance expenses (Major only).
909 Informational and instructional advertising expenses (Major
only).
910 Miscellaneous customer service and informational expenses (Major
only).
911 Supervision (Major only).
912 Demonstrating and selling expenses (Major only).
913 Advertising expenses (Major only).
916 Miscellaneous sales expenses (Major only).
917 Sales expenses (Nonmajor only).
920 Administrative and general salaries.
921 Office supplies and expenses.
922 Administrative expenses transferred -- Credit.
923 Outside services employed.
924 Property insurance.
925 Injuries and damages.
926 Employee pensions and benefits.
927 Franchise requirements.
928 Regulatory commission expenses.
929 Duplicate charges -- Credit.
930.1 General advertising expenses.
930.2 Miscellaneous general expenses.
931 Rents.
933 Transportation expenses (Nonmajor only).
935 Maintenance of general plant.
18 CFR 50.1 Operation and Maintenance Expense Accounts
500 Operation supervision and engineering.
A. For Major Utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of steam power generating stations. Direct supervision of
specific activities, such as fuel handling, boiler room operations,
generator operations, etc., shall be charged to the appropriate account.
(See operating expense instruction 1.)
B. For Nonmajor Utilities, this account shall include the cost of
supervision and labor in the operation of steam power generating
stations.
1. Supervising steam production.
2. Operating fuel conveying, storage, weighing and processing
equipment within boiler plant.
3. Operating boiler and boiler auxiliary equipment.
4. Operating boiler feed water purification and treatment equipment.
5. Operating ash collection and disposal equipment located inside the
plant.
6. Operating boiler plant electrical equipment.
7. Keeping boiler plant log and records and preparing reports on
boiler plant operations.
8. Testing boiler water.
9. Testing, checking, and adjusting meters, gauges and other
instruments in boiler plant.
10. Cleaning boiler plant equipment when not incidental to
maintenance work.
11. Repacking glands and replacing gauge classes where the work
involved is of a minor nature and is performed by regular operating
crews. Where the work is of a major character such as that performed on
high pressure boilers the item should be considered as maintenance.
12. Supervising electric production.
13. Operating turbines, engines, generators and exciters.
14. Operating condensers, circulating water systems and other
auxiliary apparatus.
15. Operating generator cooling system.
16. Operating lubrication and oil control system, including oil
purification.
17. Operating switchboards, switch gear and electric control and
protective equipment.
18. Keeping electric plant log and records and preparing reports on
electric plant operations.
19. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in electric plant.
20. Cleaning electric plant equipment when not incidental to
maintenance work.
21. Repacking glands and replacing gauge glasses.
22. General clerical and stenographic work at plant.
23. Guarding and patrolling plant and yard.
24. Building service.
25. Care of grounds including snow removal, cutting grass, etc.
26. Miscellaneous labor.
501 Fuel.
A. This account shall include the cost of fuel used in the production
of steam for the generation of electricity, including expenses in
unloading fuel from the shipping media and handling thereof up to the
point where the fuel enters the first boiler plant bunker, hopper,
bucket, tank or holder of the boiler-house structure. Records shall be
maintained to show the quantity, B.t.u. content and cost of each type of
fuel used.
B. The cost of fuel shall be charged initially to account 151, Fuel
Stock (for Nonmajor utilities, appropriate fuel accounts carried under
account 154, Plant Materials and Operating Supplies) and cleared to this
account on the basis of the fuel used. Fuel handling expenses may be
charged to this account as incurred or charged initially to account 152,
Fuel Stock Expenses Undistributed (for Nonmajor utilities, an
appropriate subaccount of account 154, Plant Materials and Operating
Supplies). In the latter event, they shall be cleared to this account
on the basis of the fuel used. Respective amounts of fuel stock and
fuel stock expenses shall be readily available.
Labor:
1. Supervising purchasing and handling of fuel.
2. All routine fuel analyses.
3. Unloading from shipping facility and putting in storage.
4. Moving of fuel in storage and transferring fuel from one station
to another.
5. Handling from storage or shipping facility to first bunker,
hopper, bucket, tank or holder of boiler-house structure.
6. Operation of mechanical equipment, such as locomotives, trucks,
cars, boats, barges, cranes, etc.
Materials and Expenses:
7. Operating, maintenance and depreciation expenses and ad valorem
taxes on utility-owned transportation equipment used to transport fuel
from the point of acquisition to the unloading point (Major only).
8. Lease or rental costs of transportation equipment used to
transport fuel from the point of acquisition to the unloading point
(Major only).
9. Cost of fuel including freight, switching, demurrage and other
transportation charges.
10. Excise taxes, insurance, purchasing commissions and similar
items.
11. Stores expenses to extent applicable to fuel.
12. Transportation and other expenses in moving fuel in storage.
13. Tools, lubricants and other supplies.
14. Operating supplies for mechanical equipment.
15. Residual disposal expenses less any proceeds from sale of
residuals.
Note: Abnormal fuel handling expenses occasioned by emergency
conditions shall be charged to expense as incurred.
502 Steam expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in production of steam for electric generation. This
includes all expenses of handling and preparing fuel beginning at the
point where the fuel enters the first boiler plant bunker, hopper, tank
or holder of the boiler-house structure.
Labor:
1. Supervising steam production.
2. Operating fuel conveying, storage weighing and processing
equipment within boiler plant.
3. Operating boiler and boiler auxiliary equipment.
4. Operating boiler feed water purification and treatment equipment.
5. Operating ash-collecting and disposal equipment located inside the
plant.
6. Operating boiler plant electrical equipment.
7. Keeping boiler plant log and records and preparing reports on
boiler plant operation.
8. Testing boiler water.
9. Testing, checking, and adjusting meters, gauges, and other
instruments and equipment in boiler plant.
10. Cleaning boiler plant equipment when not incidental to
maintenance work.
11. Repacking glands and replacing gauge glasses where the work
involved is of a minor nature and is performed by regular operating
crews. Where the work is of a major character, such as that performed
on high-pressure boilers, the item should be considered as maintenance.
Materials and Expenses:
12. Chemicals and boiler inspection fees.
13. Lubricants.
14. Boiler feed water purchased and pumping supplies.
503 Steam from other sources.
This account shall include the cost of steam purchased, or
transferred from another department of the utility or from others under
a joint facility operating arrangement, for use in prime movers devoted
to the production of electricity.
Note: The records shall be so kept as to show separately for each
company from which steam is purchased, the point of delivery, the
quantity, the price, and the total charge. When steam is transferred
from another department or from others under a joint operating
arrangement, the utility shall be prepared to show full details of the
cost of producing such steam, the basis of the charge to electric
generation and the extent and manner of use by each department or party
involved.
504 Steam transferred -- Credit.
A. This account shall include credits for expenses of producing steam
which are charged to others or to other utility departments under a
joint operating arrangement. Include also credits for steam expenses
chargeable to other electric accounts outside of the steam generation
group. Full details of the basis of determination of the cost of steam
transferred shall be maintained.
B. If the charges to others or to other departments of the utility
include an amount for depreciation, taxes and return on the joint steam
facilities, such portion of the charge shall be credited, in the case of
others, to account 454, Rent from Electric Property, and in the case of
other departments of the utility, to account 455, Interdepartmental
Rents.
505 Electric expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating prime movers, generators, and their
auxiliary apparatus, switch gear and other electric equipment to the
points where electricity leaves for conversion for transmission or
distribution.
Labor:
1. Supervising electric production.
2. Operating turbines, engines, generators and exciters.
3. Operating condensers, circulating water systems and other
auxiliary apparatus.
4. Operating generator cooling system.
5. Operating lubrication and oil control system, including oil
purification.
6. Operating switchboards, switch gear and electric control and
protective equipment.
7. Keeping electric plant log and records and preparing reports on
electric plant operations.
8. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric plant.
9. Cleaning electric plant equipment when not incidental to
maintenance work.
10. Repacking glands and replacing gauge glasses.
Materials and Expenses:
11. Lubricants and control system oils.
12. Generator cooling gases.
13. Circulating water purification supplies.
14. Cooling water purchased.
15. Motor and generator brushes.
506 Miscellaneous steam power expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred which are not specifically provided for or are not
readily assignable to other steam generation operation expense accounts.
Labor:
1. General clerical and stenographic work.
2. Guarding and patrolling plant and yard.
3. Building service.
4. Care of grounds including snow removal, cutting grass, etc.
5. Miscellaneous labor.
Materials and Expenses:
6. General operating supplies, such as tools, gaskets, packing waste,
gauge glasses, hose, indicating lamps, record and report forms, etc.
7. First-aid supplies and safety equipment.
8. Employees' service facilities expenses.
9. Building service supplies.
10. Communication service.
11. Miscellaneous office supplies and expenses, printing and
stationery.
12. Transportation expenses.
13. Meals, traveling and incidental expenses.
14. Research, development, and demonstration expenses.
507 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with steam power generation. (See
operating expense instruction 3.)
508 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of steam power generating stations.
1. Chemicals and boiler inspection fees.
2. Lubricants and control system oils.
3. Boiler feed water purchased and pumping supplies.
4. Generator cooling gases.
5. Circulating water purification supplies.
6. Cooling water purchased.
7. Motor and generator brushes.
8. General operating supplies, such as tools, gaskets, packing waste,
gauge glasses, hose, indicating lamps, record and report forms, etc.
9. First-aid supplies and safety equipment.
10. Employees' service facilities expenses.
11. Building service supplies.
12. Communication service.
13. Miscellaneous office supplies and expenses, printing and
stationery.
14. Transportation expenses.
15. Meals, traveling and incidental expenses.
510 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of steam generation
facilities. Direct field supervision of specific jobs shall be charged
to the appropriate maintenance account. (See operating expense
instruction 1.)
511 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of steam structures, the book cost
of which is includible in account 311, Structures and Improvements.
(See operating expense instruction 2.)
512 Maintenance of boiler plant (Major only).
A. This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of steam plant, the book cost of
which is includible in account 312, Boiler Plant Equipment. (See
operating expense instruction 2.)
B. For the purpose of making charges hereto and to account 513,
Maintenance of Electric Plant, the point at which steam plant is
distinguished from electric plant is defined as follows:
1. Inlet flange of throttle valve on prime mover.
2. Flange of all steam extraction lines on prime mover.
3. Hotwell pump outlet on condensate lines.
4. Inlet flange of all turbine-room auxiliaries.
5. Connection to line side of motor starter for all boiler-plant
equipment.
513 Maintenance of electric plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of electric plant, the book cost of
which is includible in account 313, Engines and Engine-Driven
Generators, account 314, Turbogenerator Units, and account 315,
Accessory Electric Equipment. (See operating expense instruction 2 and
paragraph B of account 512.)
514 Maintenance of miscellaneous steam plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous steam generation
plant, the book cost of which is includible in account 316,
Miscellaneous Power Plant Equipment. (See operating expense instruction
2.)
515 Maintenance of steam production plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of steam production plant the book
cost of which is includible in plant accounts 311 to 316, inclusive.
(See operating expense instruction 2.)
517 Operation supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the operation of nuclear power
generating stations. Direct supervision of specific activities, such as
fuel handling, reactor operations, generator operations, etc., shall be
charged to the appropriate account. (See operating expense instruction
1.)
518 Nuclear fuel expense (Major only).
A. This account shall be debited and account 120.5, Accumulated
Provision for Amortization of Nuclear Fuel Assemblies, credited for the
amortization of the net cost of nuclear fuel assemblies used in the
production of energy. The net cost of nuclear fuel assemblies subject
to amortization shall be the cost of nuclear fuel assemblies plus or
less the expected net salvage of uranium, plutonium, and other
byproducts and unburned fuel. The utility shall adopt the necessary
procedures to assure that charges to this account are distributed
according to the thermal energy produced in such periods.
B. This account shall also include the costs involved when fuel is
leased.
C. This account shall also include the cost of other fuels, used for
ancillary steam facilities, including superheat.
D. This account shall be debited or credited as appropriate for
significant changes in the amounts estimated as the net salvage value of
uranium, plutonium, and other byproducts contained in account 157,
Nuclear Materials Held for Sale and the amount realized upon the final
disposition of the materials. Significant declines in the estimated
realizable value of items carried in account 157 may be recognized at
the time of market price declines by charging this account and crediting
account 157. When the declining change occurs while the fuel is
recorded in account 120.3, Nuclear Fuel Assemblies in Reactor, the
effect shall be amortized over the remaining life of the fuel.
519 Coolants and water (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for heat transfer materials and water used for steam
and cooling purposes.
Labor:
1. Operation of water supply facilities.
2. Handling of coolants and heat transfer materials.
Materials and Expenses:
3. Chemicals.
4. Additions to or refining of, fluids used in reactor systems.
5. Lubricants.
6. Pumping supplies and expenses.
7. Miscellaneous supplies and expenses.
8. Purchased water.
Note: Do not include in this account water for general station use
or the initial charge for coolants, heat transfer or moderator fluids,
chemicals or other supplies capitalized.
520 Steam expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in production of steam through nuclear processes, and
similar expenses for operation of any auxiliary superheat facilities.
Labor:
1. Supervising steam production.
2. Fuel handling including removal, insertion, disassembly and
preparation for cooling operations and shipment.
3. Testing instruments and gauges.
4. Health, safety, monitoring and decontamination activities.
5. Waste disposal.
6. Operating steam boilers and auxiliary steam, superheat facilities.
Materials and Expenses:
7. Chemical supplies.
8. Charts, logs, etc.
9. Health, safety, monitoring and decontamination supplies.
10. Boiler inspection fees.
11. Lubricants.
521 Steam from other sources (Major only).
This account shall include the cost of steam purchased or transferred
from another department of the utility or from others under a joint
facility operating arrangement for use in prime movers devoted to the
production of electricity.
Note: The records shall be so kept as to show separately for each
company from which steam is purchased, the point of delivery, the
quantity, the price, and the total charge. When steam is transferred
from another operating department, the utility shall be prepared to show
full details of the cost of producing such steam, the basis of the
charges to electric generation, and the extent and manner of use by each
department involved.
522 Steam transferred -- Credit (Major only).
A. This account shall include credits for expenses of producing steam
which are charged to others or to other utility departments under a
joint operating arrangement. Include also credits for steam expenses
chargeable to other electric accounts outside of the steam generation
group. Full details of the basis of determination of the cost of steam
transferred shall be maintained.
B. If the charges to others or to other departments of the utility
include an amount for depreciation, taxes and return on the joint steam
facilities, such portion of the charge shall be credited, in the case of
others, to account 454, Rent from Electric Property, and in the case of
other departments of the utility, to account 455, Interdepartmental
Rents.
523 Electric expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating turbogenerators, steam turbines and their
auxiliary apparatus, switch gear and other electric equipment to the
points where electricity leaves for conversion for transmission or
distribution.
Labor:
1. Supervising electric production.
2. Operating turbines, engines, generators and exciters.
3. Operating condensers, circulating water systems and other
auxiliary apparatus.
4. Operating generator cooling system.
5. Operating lubrication and oil control system, including oil
purification.
6. Operating switchboards, switch gear and electric control and
protective equipment.
7. Keeping plant log and records and preparing reports on electric
plant operations.
8. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric plant.
9. Cleaning electric plant equipment when not incidental to
maintenance.
10. Repacking glands and replacing gauge glasses.
Materials and Expenses:
11. Lubricants and control system oils.
12. Generator cooling gases.
13. Log sheets and charts.
14. Motor and generator brushes.
524 Miscellaneous nuclear power expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred which are not specifically provided for or are not
readily assignable to other nuclear generation operation accounts.
Labor:
1. General clerical and stenographic work.
2. Plant security.
3. Building service.
4. Care of grounds, including snow removal, cutting grass, etc.
5. Miscellaneous labor.
Materials and Expenses:
6. General operating supplies, such as tools, gaskets, hose,
indicating lamps, record and report forms, etc.
7. First-aid supplies and safety equipment.
8. Employees' service facilities expenses.
9. Building service supplies.
10. Communication service.
11. Miscellaneous office supplies and expenses, printing and
stationery.
12. Transportation expenses.
13. Meals, traveling and incidental expenses.
14. Research, development, and demonstration expenses.
525 Rents (Major only).
This account shall include all rents of property of others used,
occupied or operated in connection with nuclear generation. (See
operating expense instruction 3.)
528 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of nuclear
generation facilities. Direct field supervision of specific jobs shall
be charged to the appropriate maintenance account. (See operating
expense instruction 1.)
529 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of structures, the book cost of
which is includible in account 321, Structures and Improvements. (See
operating expense instruction 2.)
530 Maintenance of reactor plant equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of reactor plant, the book cost of
which is includible in account 322, Reactor Plant Equipment. (See
operating expense instruction 2.)
531 Maintenance of electric plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of electric plant, the book cost of
which is includible in account 323, Turbogenerator Units, and account
324, Accessory Electric Equipment. (See operating expense instruction
2.)
532 Maintenance of miscellaneous nuclear plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous nuclear generating
plant, the book cost of which is includible in account 325,
Miscellaneous Power Plant Equipment. (See operating expense instruction
2.)
535 Operation supervision and engineering.
A. For Major utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of hydraulic power generating stations. Direct supervision of
specific activities, such as hydraulic operation, generator operation,
etc., shall be charged to the appropriate account (See operating expense
instruction 1).
B. For Nonmajor utilities, this account shall include the cost of
supervision and labor in the operation of hydraulic power generating
stations.
1. Supervising hydraulic operation.
2. Removing debris and ice from trash racks, reservoirs and
waterways.
3. Patrolling reservoirs and waterways.
4. Operating intakes, spillways, sluiceways and outlet works.
5. Operating bubbler, heater or other deicing systems.
6. Ice and log jam work.
7. Operating navigation facilities.
8. Operations relating to conservation of game, fish, forests, etc.
9. Insect control activities.
10. Supervising electric production.
11. Operating prime movers, generators and auxiliary equipment.
12. Operating generator cooling system.
13. Operating lubrication and oil control systems, including oil
purification.
14. Operating switchboards, switchgear and electric control and
protection equipment.
15. Keeping plant log and records and preparing reports on plant
operations.
16. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the plant.
17. Cleaning plant equipment when not incidental to maintenance work.
18. Repacking glands.
19. General clerical and stenographic work.
20. Guarding and patrolling plant and yard.
21. Building service.
22. Care of grounds, including snow removal, cutting grass, etc.
23. Snow removal from roads and bridges.
24. Miscellaneous labor.
536 Water for power.
This account shall include the cost of water used for hydraulic power
generation.
1. Cost of water purchased from others, including water tolls paid
reservoir companies.
2. Periodic payments for licenses or permits from any governmental
agency for water rights, or payments based on the use of the water.
3. Periodic payments for riparian rights.
4. Periodic payments for headwater benefits or for detriments to
others.
5. Cloud seeding.
537 Hydraulic expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating hydraulic works including reservoirs,
dams, and waterways, and in activities directly relating to the
hydroelectric development outside the generating station. It shall also
include the cost of labor, materials used and other expenses incurred in
connection with the operation of (a) fish and wildlife, and (b)
recreation facilities. Separate subaccounts shall be maintained for
each of the above.
Labor:
1. Supervising hydraulic operation.
2. Removing debris and ice from trash racks, reservoirs and
waterways.
3. Patrolling reservoirs and waterways.
4. Operating intakes, spillways, sluiceways, and outlet works.
5. Operating bubbler, heater or other deicing systems.
6. Ice and log jam work.
7. Operating navigation facilities.
8. Operations relating to conservation of game, fish, forests, etc.
9. Insect control activities.
Materials and Expenses:
10. Insect control materials.
11. Lubricants, packing, and other supplies used in operation of
hydraulic equipment.
12. Transportation expense.
538 Electric expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating prime movers, generators, and their
auxiliary apparatus, switchgear, and other electric equipment, to the
point where electricity leaves for conversion for transmission or
distribution.
Labor:
1. Supervising electric production.
2. Operating prime movers, generators and auxiliary equipment.
3. Operating generator cooling system.
4. Operating lubrication and oil control systems, including oil
purification.
5. Operating switchboards, switchgear, and electric control and
protection equipment.
6. Keeping plant log and records and preparing reports on plant
operations.
7. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls, and other equipment in the plant.
8. Cleaning plant equipment when not incidental to maintenance work.
9. Repacking glands.
Materials and Expenses:
10. Lubricants and control system oils.
11. Motor and generator brushes.
539 Miscellaneous hydraulic power generation expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred which are not specifically provided for or are not
readily assignable to other hydraulic generation operation expense
accounts.
Labor:
1. General clerical and stenographic work.
2. Guarding and patrolling plant and yard.
3. Building service.
4. Care of grounds including snow removal, cutting grass, etc.
5. Snow removal from roads and bridges.
6. Miscellaneous labor.
Materials and Expenses:
7. General operating supplies, such as tools, gaskets, packing,
waste, hose, indicating lamps, record and report forms, etc.
8. First-aid supplies and safety equipment.
9. Employees' service facilities expenses.
10. Building service supplies.
11. Communication service.
12. Office supplies, printing and station- ery.
13. Transportation expenses.
14. Fuel.
15. Meals, traveling and incidental expenses.
16. Research, development, and demonstration expenses.
540 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with hydraulic power generation,
including amounts payable to the United States for the occupancy of
public lands and reservations for reservoirs, dams, flumes, forebays,
penstocks, power houses, etc., but not including transmission right of
way. (See operating expense instruction 3.)
540.1 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of hydraulic power generating stations.
1. Insect control materials.
2. Lubricants, packing, and other supplies used in operation of
hydraulic equipment.
3. Supplies and expenses in conservation of game, fish, forests, etc.
4. Transportation expense.
5. Control system oils.
6. Motor and generator brushes.
7. General operating supplies, such as tools, gaskets, packing, waste
hose, indicating lamps, record and report forms, etc.
8. First-aid supplies and safety equipment.
9. Employees' service facilities expenses.
10. Building service supplies.
11. Communication service.
12. Office supplies, printing and stationery.
13. Transportation expenses.
14. Fuel.
15. Meals, traveling and incidental expenses.
541 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the maintenance of hydraulic
power generating stations. Direct field supervision of specific jobs
shall be charged to the appropriate maintenance account. (See operating
expense instruction 1.)
542 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used, and
expenses incurred in maintenance of hydraulic structures, the book cost
of which is includible in Account 331, Structures and Improvements.
(See operating expense instruction 2) However, the cost of labor,
materials used and expenses incurred in the maintenance of fish and
wildlife, and recreation facilities, the book cost of which is
includible in Account 331, Structures and Improvements, shall be charged
to Account 545, Maintenance of Miscellaneous Hydraulic Plant.
543 Maintenance of reservoirs, dams, and waterways (Major only).
This account shall include the cost of labor, materials used, and
expenses incurred in maintenance of plant includible in Account 332,
Reservoirs, Dams, and Waterways. (See operating expense instruction 2)
However, the cost of labor materials used and expenses incurred in the
maintenance of fish and wildlife, and recreation facilities, the book
cost of which is includible in Account 332, Reservoirs, Dams and
Waterways, shall be charged to Account 545, Maintenance of Miscellaneous
Hydraulic Plant.
544 Maintenance of electric plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant includible in Account 333,
Water Wheels, Turbines and Generators, and account 334, Accessory
Electric Equipment. (See operating expense instruction 2.)
545 Maintenance of miscellaneous hydraulic plant (Major only).
This account shall include the cost of labor, materials used, and
expenses incurred in maintenance of plant, the book cost of which is
includible in Account 335, Miscellaneous Power Plant Equipment, and
Account 336, Roads, Railroads and Bridges. (See operating expense
instruction 2.) It shall also include the cost of labor, materials used
and other expenses incurred in the maintenance of (a) fish and wildlife,
and (b) recreation facilities. Separate subaccounts shall be maintained
for each of the above.
545.1 Maintenance of hydraulic production plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of hydraulic production plant the
book cost of which is includible in plant accounts 331 to 336,
inclusive. (See operating expense instruction 2.)
546 Operation supervision and engineering.
A. For Major utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of other power generating stations. Direct supervision of
specific activities, such as fuel handling, engine and generator
operation, etc., shall be charged to the appropriate account. (See
operating expense instruction 1.)
B. For Nonmajor utilities, this account shall include the cost of
supervision and labor in the operation of other power generating
stations.
1. Supervising other power generation operation.
2. Operating prime movers, generators and auxiliary apparatus and
switching and other electric equipment.
3. Keeping plant log and records and preparing reports on plant
operations.
4. Testing, checking, cleaning, oiling and adjusting equipment.
5. General clerical and stenographic work.
6. Guarding and patrolling plant and yard.
7. Building service.
8. Care of grounds, including snow removal, cutting grass, etc.
9. Miscellaneous labor.
547 Fuel.
This account shall include the cost delivered at the station (see
account 151, Fuel Stock, for Major utilities, and account 154, Plant
Materials and Operating Supplies, for Nonmajor utilities) of all fuel,
such as gas, oil, kerosene, and gasoline used in other power generation.
548 Generation expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating prime movers, generators and electric
equipment in other power generating stations, to the point where
electricity leaves for conversion for transmission or distribution.
Labor:
1. Supervising other power generation operation.
2. Operating prime movers, generators and auxiliary apparatus and
switching and other electric equipment.
3. Keeping plant log and records and preparing reports on plant
operations.
4. Testing, checking, cleaning, oiling and adjusting equipment.
Materials and Expenses:
5. Dynamo, motor, and generator brushes.
6. Lubricants and control system oils.
7. Water for cooling engines and generators.
549 Miscellaneous other power generation expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the operation of other power generating stations
which are not specifically provided for or are not readily assignable to
other generation expense accounts.
Labor:
1. General clerical and stenographic work.
2. Guarding and patrolling plant and yard.
3. Building service.
4. Care of grounds, including snow removal, cutting grass, etc.
5. Miscellaneous labor.
Materials and Expenses:
6. Building service supplies.
7. First-aid supplies and safety equipment.
8. Communication service.
9. Employees' service facilities expenses.
10. Office supplies, printing and station- ery.
11. Transportation expense.
12. Meals, traveling and incidental expenses.
13. Fuel for heating.
14. Water for fire protection or general use.
15. Miscellaneous supplies, such as hand tools, drills, saw blades,
files, etc.
16. Research, development, and demonstration expenses.
550 Rents.
This account shall include all rents of property of others used,
occupied, or operated in connection with other power generation. (See
operating expense instruction 3.)
550.1 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of other power generating stations.
1. Dynamo, motor, and generator brushes.
2. Lubricants and control system oils.
3. Water for cooling engines and generators.
4. Building service supplies.
5. First-aid supplies and safety equipment.
6. Communication service.
7. Employees' service facilities expenses.
8. Office supplies, printing and stationery.
9. Transportation expense.
10. Meals, traveling and incidental expenses.
11. Fuel for heating.
12. Water for fire protection or general use.
13. Miscellaneous supplies, such as hand tools, drills, saw blades,
files, etc.
551 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the maintenance of other power
generating stations. Direct field supervision of specific jobs shall be
charged to the appropriate maintenance account. (See operating expense
instruction 1.)
552 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of facilities used in other power
generation, the book cost of which is includible in account 341,
Structures and Improvements, and account 342, Fuel Holders, Producers
and Accessories. (See operating expense instruction 2.)
553 Maintenance of generating and electric equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in account 343, Prime Movers, account 344. Generators, and
account 345, Accessory Electric Equipment. (See operating expense
instruction 2.)
554 Maintenance of miscellaneous other power generation plant (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of other power generation plant, the
book cost of which is includible in account 346, Miscellaneous Power
Plant Equipment. (See operating expense instruction 2.)
554.1 Maintenance of other power production plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of other power generation plant,
the book cost of which is includible in plant accounts 341 to 346,
inclusive. (See operating expense instruction 2.)
555 Purchased power.
A. This account shall include the cost at point of receipt by the
utility of electricity purchased for resale. It shall include, also,
net settlements for exchange of electricity or power, such as economy
energy, off-peak energy for on-peak energy, spinning reserve capacity,
etc. In addition, the account shall include the net settlements for
transactions under pooling or interconnection agreements wherein there
is a balancing of debits and credits for energy, capacity, etc.
Distinct purchases and sales shall not be recorded as exchanges and net
amounts only recorded merely because debit and credit amounts are
combined in the voucher settlement.
B. The records supporting this account shall show, by months, the
demands and demand charges, kilowatt-hours and prices thereof under each
purchase contract and the charges and credits under each exchange or
power pooling contract.
556 System control and load dispatching (Major only).
This account shall include the cost of labor and expenses incurred in
load dispatching activities for system control Utilities having an
interconnected electric system or operating under a central authority
which controls the production and dispatching of electricity may
apportion these costs to this account and accounts 561, Load Dispatching
-- Transmission, and 581, Load Dispatching -- Distribution.
Labor:
1. Allocating loads to plants and interconnections with others.
2. Directing switching.
3. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
4. Controlling system voltages.
5. Recording loadings, water conditions, etc.
6. Preparing operating reports and data for billing and budget
purposes.
7. Obtaining reports on the weather and special events.
Expenses:
8. Communication service provided for system control purposes.
9. System record and report forms.
10. Meals, traveling and incidental expenses.
11. Obtaining weather and special events reports.
557 Other expenses.
A. This account shall be charged with any production expenses
including expenses incurred directly in connection with the purchase of
electricity, which are not specifically provided for in other production
expense accounts. Charges to this account shall be supported so that a
description of each type of charge will be readily available.
B. Recoveries from insurance companies, under use and occupancy
provisions of policies, of amounts in reimbursement of excessive or
added production costs for which the insurance company is liable under
the terms of the policy shall be credited to this account.
560 Operation supervision and engineering.
A. For Major utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of the transmission system as a whole. Direct supervision of
specific activities, such as station operation, line operation, etc.,
shall be charged to the appropriate account. (See operating expense
instruction 1.)
B. For Nonmajor utilities, this account shall include the cost of
supervision and labor in the operation of the transmission system.
1. Direct switching.
2. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
3. Controlling system voltages.
4. Obtaining reports on the weather and special events.
5. Preparing operating reports and data for billing and budget
purposes.
Station Labor:
6. Supervising station operation.
7. Adjusting station equipment where such adjustment primarily
affects performance, such as regulating the flow of cooling water,
adjusting current in fields of a machine or changing voltage of
regulators changing station transformer taps.
8. Inspecting, testing and calibrating station equipment for the
purpose of checking its performance.
9. Keeping station log and records and preparing reports on station
operation.
10. Operating switching and other station equipment.
11. Standing watch, guarding and patrolling station and station yard.
12. Sweeping, mopping and tidying station.
13. Care of grounds, including snow removal, cutting grass, etc.
14. Supervising line operation.
15. Inspecting and testing lightning arresters, circuit breakers,
switches and grounds.
16. Load tests of circuits.
17. Routine line patrolling.
18. Routine voltage surveys made to determine the condition of
efficiency of transmission system.
19. Transfering loads, switching and reconnecting circuits and
equipment for operating purposes. (Switching for construction or
maintenance purposes is not includible in this account.)
20. Routine inspection and cleaning of manholes, conduit, network and
transformer vaults.
21. Electrolysis surveys.
22. Inspecting and adjusting line testing equipment such as
voltmeters, ammeters, wattmeters, etc.
23. Regulation and addition of oil or gas in high voltage cable
systems.
24. General records of physical characteristics of lines and
stations, such as capacities, etc.
25. Ground resistance records.
26. Janitorial work at transmission office buildings, including care
of grounds, snow removal, cutting grass, etc.
27. Joint pole maps and prints.
28. Line load and voltage records.
29. Preparing maps and prints.
30. General clerical and stenographic work.
31. Miscellaneous labor.
561 Load dispatching (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in load dispatching operations pertaining to the
transmission of electricity.
Labor:
1. Directing switching.
2. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
3. Controlling system voltages.
4. Obtaining reports on the weather and special events.
5. Preparing operating reports and data for billing and budget
purposes.
Expenses:
6. Communication service provided for system control purposes.
7. System record and report forms.
8. Meals, traveling and incidental expenses.
9. Obtaining weather and special events reports.
562 Station expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating transmission substantions and switching
stations. If transmission station equipment is located in or adjacent
to a generating station the expenses applicable to transmission station
operations shall nevertheless be charged to this account.
Labor:
1. Supervising station operation.
2. Adjusting station equipment where such adjustment primarily
affects performance, such as regulating the flow of cooling water,
adjusting current in fields of a machine or changing voltage of
regulators, changing station transformer taps.
3. Inspecting, testing and calibrating station equipment for the
purpose of checking its performance.
4. Keeping station log and records and preparing reports on station
operation.
5. Operating switching and other station equipment.
6. Standing watch, guarding, and patrolling station and station yard.
7. Sweeping, mopping, and tidying station.
8. Care of grounds, including snow removal, cutting grass, etc.
Materials and Expenses:
9. Building service expenses.
10. Operating supplies, such as lubricants, commutator brushes,
water, and rubber goods.
11. Station meter and instrument supplies, such as ink and charts.
12. Station record and report forms.
13. Tool expense.
14. Transportation expenses.
15. Meals, traveling, and incidental expenses.
563 Overhead line expenses (Major only).
564 Underground line expenses (Major only).
A. These accounts shall include the cost of labor, materials used and
expenses incurred in the operation of transmission lines.
B. If the expenses are not substantial for both overhead and
underground lines, these accounts may be combined.
Labor:
1. Supervising line operation.
2. Inspecting and testing lightning arresters, circuit breakers,
switches, and grounds
3. Load tests of circuits.
4. Routine line patrolling.
5. Routine voltage surveys made to determine the condition or
efficiency of transmission system.
6. Transferring loads, switching and reconnecting circuits and
equipment for operating purposes. (Switching for construction or
maintenance purposes is not includible in this account.)
7. Routine inspection and cleaning of manholes, conduit, network and
transformer vaults.
8. Electrolysis surveys.
9. Inspecting and adjusting line-testing equipment, such as
voltmeters, ammeters, wattmeters, etc.
10. Regulation and addition of oil or gas in high-voltage cable
systems.
Materials and Expenses:
11. Transportation expenses.
12. Meals, traveling and incidental expenses.
13. Tool expenses.
14. Operating supplies, such as instrument charts, rubber goods, etc.
565 Transmission of electricity by others (Major only).
This account shall include amounts payable to others for the
transmission of the utility's electricity over transmission facilities
owned by others.
566 Miscellaneous transmission expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in transmission map and record work, transmission
office expenses, and other transmission expenses not provided for
elsewhere.
Labor:
1. General records of physical characteristics of lines and stations,
such as capacities, etc.
2. Ground resistance records.
3. Janitor work at transmission office buildings, including care of
grounds, snow removal, cutting grass, etc.
4. Joint pole maps and records.
5. Line load and voltage records.
6. Preparing maps and prints.
7. General clerical and stenographic work.
8. Miscellaneous labor.
Materials and Expenses:
9. Communication service.
10. Building service supplies.
11. Map and record supplies.
12. Transmission office supplies and expenses, printing and
stationery.
13. First-aid supplies.
14. Research, development, and demonstration expenses.
567 Rents.
This account shall include rents of property of others used,
occupied, or operated in connection with the transmission system,
including payments to the United States and others for use of public or
private lands and reservations for transmission line rights of way.
(See operating expense instruction 3.)
567.1 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of the transmission system.
1. Building service expenses.
2. Operating supplies, such as lubricants, commutator brushes, water,
and rubber goods.
3. Station meter and instrument supplies, such as ink and charts.
4. Station record and report forms.
5. Communication service.
6. First-aid supplies.
7. Tool expense.
8. Transportation expenses.
9. Meals, traveling, and incidental expenses.
568 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of the transmission
system. Direct field supervision of specific jobs shall be charged to
the appropriate maintenance account. (See operating expense instruction
1.)
569 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of structures, the book cost of
which is includible in account 352, Structures and Improvements. (See
operating expense instruction 2.)
570 Maintenance of station equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of station equipment the book cost of
which is includible in account 353, Station Equipment. (See operating
expense instruction 2.)
571 Maintenance of overhead lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of transmission plant, the book cost of
which is includible in accounts 354, Towers and Fixtures, 355, Poles and
Fixtures, 356, Overhead Conductors and Devices, 359, Roads and Trails.
(See operating expense instruction 2.)
1. Work of the following character on poles, towers and fixtures:
a. Installing or removing additional clamps or strain insulators on
guys in place.
b. Moving line or guy pole in relocation of the same pole or section
of line.
c. Painting poles, towers, crossarms or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, cross arms braces, and other
pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on
poles.
h. Repairing or realigning pins, racks, or brackets.
i. Repairing pole supported platform.
j. Repairs by others to jointly owned poles.
k. Shaving, cutting rot, or treating poles or crossarms in use or
salvaged for reuse.
l. Stubbing poles already in service.
m. Supporting fixtures and conductors and transferring them to new
pole during poles replacements.
n. Maintenance of pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, etc.
b. Cleaning insulators and bushings.
c. Refusing cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulty lines clear, or
similar activities at times of emergencies.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Repairing line testing equipment.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way areas when occurring subsequent
to construction of line.
3. Work of the following character on roads and trails:
a. Repairing roadway, bridges, etc.
b. Trimming trees and brush to maintain previous roadway clearance.
c. Snow removal from roads and trails.
d. Maintenance work on publicly owned roads and trails when done by
utility at its expense.
572 Maintenance of underground lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of transmission plant, the book cost of
which is includible in accounts 357, Underground Conduit, and 358,
Underground Conductors and Devices. (See operating expense instruction
2.)
1. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Minor alterations of handholes, manholes, or vaults.
c. Refastening, repairing, or moving racks, ladders, or hangers in
manholes, or vaults.
d. Plugging and shelving or replugging ducts.
e. Repairs to sewers and drains, walls and floors, rings and covers.
2. Work of the following character on underground conductors and
devices:
a Repairing oil circuit breakers, switches, cutouts, and control
wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manhole, including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing of cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairs to oil or gas equipment in highvoltage cable system and
replacement of oil or gas.
573 Maintenance of miscellaneous transmission plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of owned or leased plant which is
assignable to transmission operations and is not provided for elsewhere.
(See operating expense instruction 2.)
574 Maintenance of transmission plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of transmission plant the book cost
of which is includible in plant accounts 351 to 359 inclusive. (See
operating expense instruction 2.)
1. Work of the following character on poles, towers and fixtures:
a. Installing or removing additional clamps or strain insulators on
guys in place.
b. Moving line or guy pole in relocation of the same pole or section
of line.
c. Painting poles, towers, crossarms or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, crossarms, braces and other
pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on
poles.
h. Repairing or realigning pins, racks, or brackets.
i. Repairing pole supported platform.
j. Repairs by others to jointly owned poles.
k. Shaving, cutting rot, or treating poles or crossarms in use or
salvaged for reuse.
l. Stubbing poles already in service.
m. Supporting fixtures and conductors and transferring them to new
pole during pole replacement.
n. Maintenance of pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, etc.
b. Cleaning insulators and bushings.
c. Refusing cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulty lines clear, or
similar activities at times of emergencies.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Repairing line testing equipment.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way areas when occurring subsequent
to construction of line.
3. Work of the following character on roads and trails:
a. Repairing roadway, bridges, etc.
b. Trimming trees and brush to maintain previous roadway clearance.
c. Snow removal from roads and trails.
d. Maintenance work on publicly owned roads and trails when done by
utility at its expense.
4. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Minor alterations of handholes, manholes, or vaults.
c. Refasting, repairing, or moving racks, ladders, or hangers in
manholes, or vaults.
d. Plugging and shelving or replugging ducts.
e. Repairs to sewers and drains, walls and floors, rings and covers.
5. Work of the following character on underground conductors and
devices:
a. Repairing oil circuit breakers, switches, cutouts, and control
wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manhole, including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing of cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairs to oil or gas equipment in high voltage cable system and
replacement of oil or gas.
580 Operation supervision and engineering.
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the operation of the
distribution system. Direct supervision of specific activities, such as
station operation, line operation, meter department operation, etc.,
shall be charged to the appropriate account. (For Major utilities, see
operating expense instruction 1.)
581 Load dispatching (Major only).
This account (the keeping of which is optional with the utility)
shall include the cost of labor, materials used and expenses incurred in
load dispatching operations pertaining to the distribution of
electricity.
Labor:
1. Directing switching.
2. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
3. Controlling system voltages.
4. Preparing operating reports.
5. Obtaining reports on the weather and special events.
Expenses:
6. Communication service provided for system control purposes.
7. System record and report forms.
8. Meals, traveling and incidental expenses.
581.1 Line and station supplies and expenses (Nonmajor only).
582 Station expenses (Major only).
583 Overhead line expenses (Major only).
584 Underground line expenses (Major only).
Accounts 581.1 through 584 shall include, respectively, the cost of
labor, materials used and expenses incurred in the operation of overhead
and underground distribution lines and stations.
1. Supervising line operation.
2. Changing line transformer taps.
3. Inspecting and testing lightning arresters, line circuit breakers,
switches and grounds.
4. Inspecting and testing line transformers for the purpose of
determining load, temperature or operating performance.
5. Patrolling lines.
6. Load tests and voltages surveys of feeders, circuits and line
transformers.
7. Removing line transformers and voltage regulators with or without
replacements.
8. Installing line transformers or voltage regulators with or without
change in capacity provided that the first installation of these items
is included in account 368, Line transformers.
9. Voltage surveys, either routine or upon request of customers,
including voltage tests at customers' main switch.
10. Transferring loads, switching and reconnecting circuits and
equipment for operation purposes.
11. Electrolysis surveys.
12. Inspecting and adjusting line testing equipment.
13. Tool expenses.
14. Transportation expenses.
15. Meals, traveling and incidental expense.
16. Operating supplies, such as instrument charts, rubber goods, etc.
1. Supervising station operation.
2. Adjusting station equipment where such adjustment primarily
affects performance, such as regulating the flow of cooling water,
adjusting current in fields of a machine, changing voltage of regulators
or changing station transformer taps.
3. Keeping station log and records and preparing reports on station
operation.
4. Inspecting, testing and calibrating station equipment for the
purpose of checking its performance.
5. Operating switching and other station equipment.
6. Standing watch, guarding and patrolling station and station yard.
7. Sweeping, mopping and tidying station.
8. Care of grounds, including snow removal, cutting grass, etc.
9. Building service expenses.
10. Operating supplies, such as lubricants, commutator brushes, water
and rubber goods.
11. Station meter and instrument supplies, such as ink and charts.
12. Station record and report forms.
13. Tool expenses.
14. Transportation expenses.
15. Meals, traveling and incidental expenses.
Note (Major only): If the utility owns storage battery equipment
used for supplying electricity to customers in periods of emergency, the
cost of operating labor and of supplies, such as acid, gloves,
hydrometers, thermometers, soda, automatic cell fillers, acid proof
shoes, etc., shall be included in this account. If significant in
amount, a separate subdivision shall be maintained for such expenses.
585 Street lighting and signal system expenses.
A. For Nonmajor utilities, this account shall include the cost of
labor, materials used and expenses incurred in the operation of street
lighting and signal system plant.
B. For Major utilities, this account shall include the cost of labor,
materials used and expenses incurred in: (a) The operation of street
lighting and signal system plant which is owned or leased by the
utility; and (b) the operation and maintenance of such plant owned by
customers where such work is done regularly as a part of the street
lighting and signal system service.
Labor:
1. Supervising street lighting and signal systems operation.
2. Replacing lamps and incidental cleaning of glassware and fixtures
in connection therewith.
3. Routine patrolling for lamp outages, extraneous nuisances or
encroachments, etc.
4. Testing lines and equipment including voltage and current
measurement.
5. Winding and inspection of time switch and other controls.
Materials and Expenses:
6. Street lamp renewals.
7. Transportation and tool expense.
8. Meals, traveling, and incidental expenses.
586 Meter expenses.
This account shall include the cost of labor, materials used and
expenses incurred in the operation of customer meters and associated
equipment.
Labor:
1. Supervising meter operation.
2. Clerical work on meter history and associated equipment record
cards, test cards, and reports.
3. Disconnecting and reconnecting, removing and reinstalling, sealing
and unsealing meters and other metering equipment in connection with
initiating or terminating services including the cost of obtaining meter
readings, if incidental to such operation.
4. Consolidating meter installations due to elimination of separate
meters for different rates of service.
5. Changing or relocating meters, instrument transformers, time
switches, and other metering equipment.
6. Resetting time controls, checking operation of demand meters and
other metering equipment, when done as an independent operation.
7. Inspecting and adjusting meter testing equipment.
8. Inspecting and testing meters, instrument transformers, time
switches, and other metering equipment on premises or in shops excluding
inspecting and testing incidental to maintenance
Materials and Expenses:
9. Meter seals and miscellaneous meter supplies.
10. Transportation expenses.
11. Meals, traveling, and incidental expenses.
12. Tool expenses.
Note: The cost of the first setting and testing of a meter is
chargeable to utility plant account 370, Meters.
587 Customer installations expenses.
This account shall include the cost of labor, materials used and
expenses incurred in work on customer installations in inspecting
premises and in rendering services to customers of the nature of those
indicated by the list of items hereunder.
Labor:
1. Supervising customer installations work.
2. Inspecting premises, including check of wiring for code
compliance.
3. Investigating, locating, and clearing grounds on customers'
wiring.
4. Investigating service complaints, including load tests of motors
and lighting and power circuits on customers' premises; field
investigations of complaints on bills or of voltage.
5. Installing, removing, renewing, and changing lamps and fuses.
6. Radio, television and similar interference work including erection
of new aerials on customers' premises and patrolling of lines, testing
of lightning arresters, inspection of pole hardware, etc., and
examination on or off premises of customers' appliances, wiring, or
equipment to locate cause of interference.
7. Installing, connecting, reinstalling, or removing leased property
on customers' premises.
8. Testing, adjusting, and repairing customers' fixtures and
appliances in shop or on premises.
9. Cost of changing customers' equipment due to changes in service
characteristics.
10. Investigation of current diversion including setting and removal
of check meters and securing special readings thereon; special calls by
employees in connection with discovery and settlement of current
diversion; changes in customer wiring and any other labor cost
identifiable as caused by current diversion.
Materials and Expenses:
11. Lamp and fuse renewals.
12. Materials used in servicing customers' fixtures, appliances and
equipment.
13. Power, light, heat, telephone, and other expenses of appliance
repair department.
14. Tool expense.
15. Transportation expense, including pickup and delivery charges.
16. Meals, traveling and incidental expenses.
17. Rewards paid for discovery of current diversion.
Note A: Amounts billed customers for any work, the cost of which is
charged to this account, shall be credited to this account. Any excess
over costs resulting therefrom shall be transferred to account 451,
Miscellaneous Service Revenues.
Note B: Do not include in this account expenses incurred in
connection with merchandising, jobbing and contract work.
588 Miscellaneous distribution expenses.
This account shall include the cost of labor, materials used and
expenses incurred in distribution system operation not provided for
elsewhere.
Labor:
1. General records of physical characteristics of lines and
substations, such as capacities, etc.
2. Ground resistance records.
3. Joint pole maps and records.
4. Distribution system voltage and load records.
5. Preparing maps and prints.
6. Service interruption and trouble records.
7. General clerical and stenographic work except that chargeable to
account 586, Meter expenses.
Expenses:
8. Operating records covering poles, transformers, manholes, cables,
and other distribution facilities. Exclude meter records chargeable to
account 586. Meter Expenses and station records chargeable to account
582, Station Expenses (For Nonmajor utilities, account 581.1, Line and
Station Expenses), and stores records (For Nonmajor utilities, station
records) chargeable to account 163, Stores Expense Undistributed (For
Nonmajor utilities, account 581.1, Line and Station Expenses).
9. Janitor work at distribution office buildings including snow
removal, cutting grass, etc.
Materials and Expenses:
10. Communication service.
11. Building service expenses.
12. Miscellaneous office supplies and expenses, printing, and
stationery, maps and records and first-aid supplies.
13. Research, development, and demonstration expenses (Major only).
589 Rents.
This account shall include rents of property of others used,
occupied, or operated in connection with the distribution system,
including payments to the United States and others for the use and
occupancy of public lands and reservations for distribution line rights
of way. (See operating expense instruction 3.)
590 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of the distribution
system. Direct field supervision of specific jobs shall be charged to
the appropriate maintenance account. (See operating expense instruction
1.)
591 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of structures, the book cost of which
is includible in account 361, Structures and Improvements. (See
operating expense instruction 2.)
592 Maintenance of station equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in account 362, Station Equipment, and account 363, Storage
Battery Equipment. (See operating expense instruction 2.)
592.1 Maintenance of structures and equipment (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of structures, the book cost of which
is includible in account 361, Structures and Improvements, account 362,
Station Equipment, and account 363, Storage Battery Equipment. (See
operating expense instruction 2.)
593 Maintenance of overhead lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of overhead distribution line
facilities, the book cost of which is includible in account 364, Poles,
Towers and Fixtures, account 365, Overhead Conductors and Devices, and
account 369, Services. (See operating expense instruction 2.)
1. Work of the following character on poles, towers, and fixtures:
a. Installing additional clamps or removing clamps or strain
insulators on guys in place.
b. Moving line or guy pole in relocation of pole or section of line.
c. Painting poles, towers, crossarms, or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, crossarms, braces, pins,
racks, brackets, and other pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on
poles.
h. Repairing pole supported platform.
i. Repairs by others to jointly owned poles.
j. Shaving, cutting rot, or treating poles or crossarms in use or
salvaged for reuse.
k. Stubbing poles already in service.
l. Supporting conductors, transformers, and other fixtures and
transferring them to new poles during pole replacements.
m. Maintaining pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, and capacitor installations.
b. Cleaning insulators and bushings.
c. Refusing line cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulty lines clear, or
similar activities at times of emergency.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Transferring loads, switching, and reconnecting circuits and
equipment for maintenance purposes.
j. Repairing line testing equipment.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way area when occurring subsequent
to construction of line.
3. Work of the following character on overhead services:
a. Moving position of service either on pole or on customers'
premises.
b. Pulling slack in service wire.
c. Retying service wire.
d. Refastening or tightening service bracket.
594 Maintenance of underground lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of underground distribution line
facilities, the book cost of which is includible in account 366,
Underground Conduit, account 367, Underground Conductors and Devices,
and account 369, Services. (See operating expense instruction 2.)
1. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Moving or changing position of conduit or pipe.
c. Minor alterations of handholes, manholes, or vaults.
d. Refastening, repairing, or moving racks, ladders, or hangers in
manholes or vaults.
e. Plugging and shelving ducts.
f. Repairs to sewers, drains, walls, and floors, rings and covers.
2. Work of the following character on underground conductors and
devices:
a. Repairing circuit breakers, switches, cutouts, network protectors,
and associated relays and control wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manholes including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairing oil or gas equipment in high voltage cable systems and
replacement of oil or gas.
3. Work of the following character on underground services:
a. Cleaning ducts.
b. Repairing any underground service plant.
594.1 Maintenance of lines (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of distribution line facilities,
the book cost of which is includible in account 364, Poles, Towers and
Fixtures, account 365, Overhead Conductors and Devices, account 366,
Underground Conduit, account 367, Underground Conductors and Devices,
and account 369, Services. (See operating expense instruction 2.)
1. Work of the following character on poles, towers, and fixtures:
a. Installing additional clamps or removing clamps or strain
insulators on guys in place.
b. Moving line or guy pole in relocation of pole or section of line.
c. Painting poles, towers, crossarms, or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, crossarms, braces, pins,
racks, brackets, and other pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on pole.
h. Repairing pole supported platform.
i. Repairs by others to jointly owned poles.
j. Shaving, cutting rot, or treating poles or crossarms in use or
salvage for reuse.
k. Stubbing poles already in service.
l. Supporting conductors, transformers, and other fixtures and
transferring them to new poles during pole replacement.
m. Maintaining pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, and capacitor installations.
b. Cleaning insulators and bushings.
c. Refusing line cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulting lines clear,
or similar activities at times of emergencies.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Transferring loads, switching, and reconnecting circuits and
equipment for maintenance purposes.
j. Repairing line testing equipment.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way area when occurring subsequent
to construction of line.
3. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Moving or changing position of conduit or pipe.
c. Minor alterations of handholes, manholes, or vaults.
d. Refastening, repairing or moving racks, ladders, or hangers in
manholes or vaults.
e. Plugging and shelving ducts.
f. Repairs to sewers, drains, walls and floors, rings and covers.
4. Work of the following character on underground conductors and
devices:
a. Repairing circuit breakers, switches, cutouts, network protectors,
and associated relays and control wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manhole including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairing oil or gas equipment in high voltage cable system and
replacement of oil or gas.
5. Work of the following character on services:
a. Moving position of service either on pole or on customers'
premises.
b. Pulling slack in service wire.
c. Retying service wire.
d. Refastening or tightening service bracket.
e. Cleaning ducts.
595 Maintenance of line transformers.
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of distribution line transformers, the
book cost of which is includible in account 368, Line Transformers.
(See operating expense instruction 2.)
596 Maintenance of street lighting and signal systems.
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in account 373, Street Lighting and Signal Systems. (See
operating expense instruction 2.)
597 Maintenance of meters.
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of meters and meter testing
equipment, the book cost of which is includible in account 370, Meters,
and account 395, Laboratory Equipment, respectively. (See operating
expense instruction 2.)
598 Maintenance of miscellaneous distribution plant.
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in accounts 371, Installations on Customers' Premises, and
372, Leased Property on Customers' Premises, and any other plant the
maintenance of which is assignable to the distribution function and is
not provided for elsewhere. (See operating expense instruction 2.)
a. Work of similar nature to that listed in other distribution
maintenance accounts.
b. Maintenance of office furniture and equipment used by distribution
system department.
901 Supervision (Major only).
This account shall include the cost of labor and expenses incurred in
the general direction and supervision of customer accounting and
collecting activities. Direct supervision of a specific activity shall
be charged to account 902, Meter Reading Expenses, or account 903,
Customer Records and Collection Expenses, as appropriate. (See
operating expense instruction 1.)
902 Meter reading expenses.
This account shall include the cost of labor, materials used and
expenses incurred in reading customer meters, and determining
consumption when performed by employees engaged in reading meters.
Labor:
1. Addressing forms for obtaining meter readings by mail.
2. Changing and collecting meter charts used for billing purposes.
3. Inspecting time clocks, checking seals, etc., when performed by
meter readers and the work represents a minor activity incidental to
regular meter reading routine.
4. Reading meters, including demand meters, and obtaining load
information for billing purposes. Exclude and charge to account 586,
Meter Expenses, or to account 903, Customer Records and Collection
Expenses, as applicable, the cost of obtaining meter readings, first and
final, if incidental to the operation of removing or resetting, sealing,
or locking, and disconnecting or reconnecting meters.
5. Computing consumption from meter reader's book or from reports by
mail when done by employees engaged in reading meters.
6. Collecting from prepayment meters when incidental to meter
reading.
7. Maintaining record of customers' keys.
8. Computing estimated or average consumption when performed by
employees engaged in reading meters.
Materials and Expenses:
9. Badges, lamps, and uniforms.
10. Demand charts, meter books and binders and forms for recording
readings, but not the cost of preparation.
11. Postage and supplies used in obtaining meter readings by mail.
12. Transportation, meals, and incidental expenses.
903 Customer records and collection expenses.
This account shall include the cost of labor, materials used and
expenses incurred in work on customer applications, contracts, orders,
credit investigations, billing and accounting, collections and
complaints.
Labor:
1. Receiving, preparing, recording and handling routine orders for
service, disconnections, transfers or meter tests initiated by the
customer, excluding the cost of carrying out such orders, which is
chargeable to the account appropriate for the work called for by such
orders.
2. Investigations of customers' credit and keeping of records
pertaining thereto, including records of uncollectible accounts written
off.
3. Receiving, refunding or applying customer deposits and maintaining
customer deposit, line extension, and other miscellaneous records.
4. Checking consumption shown by meter readers' reports where
incidental to preparation of billing data.
5. Preparing address plates and addressing bills and delinquent
notices.
6. Preparing billing data.
7. Operating billing and bookkeeping machines.
8. Verifying billing records with contracts or rate schedules.
9. Preparing bills for delivery, and mailing or delivering bills.
10. Collecting revenues, including collection from prepayment meters
unless incidental to meter-reading operations.
11. Balancing collections, preparing collections for deposit, and
preparing cash reports.
12. Posting collections and other credits or charges to customer
accounts and extending unpaid balances.
13. Balancing customer accounts and controls.
14. Preparing, mailing, or delivering delinquent notices and
preparing reports of delinquent accounts.
15. Final meter reading of delinquent accounts when done by
collectors incidental to regular activities.
16. Disconnecting and reconnecting service because of nonpayment of
bills.
17. Receiving, recording, and handling of inquiries, complaints, and
requests for investigations from customers, including preparation of
necessary orders, but excluding the cost of carrying out such orders,
which is chargeable to the account appropriate for the work called for
by such orders.
18. Statistical and tabulating work on customer accounts and
revenues, but not including special analyses for sales department, rate
department, or other general purposes, unless incidental to regular
customer accounting routines.
19. Preparing and periodically rewriting meter reading sheets.
20. Determining consumption and computing estimated or average
consumption when performed by employees other than those engaged in
reading meters.
Materials and Expenses:
21. Address plates and supplies.
22. Cash overages and shortages.
23. Commissions or fees to others for collecting.
24. Payments to credit organizations for investigations and reports.
25. Postage.
26. Transportation expenses (Major only), including transportation of
customer bills and meter books under centralized billing procedure.
27. Transportation, meals, and incidental expenses.
28. Bank charges, exchange, and other fees for cashing and depositing
customers' checks.
29. Forms for recording orders for services removals, etc.
30. Rent of mechanical equipment.
31. Communication service (Nonmajor only).
32. Miscellaneous office supplies and expenses and stationery and
printing (Nonmajor only).
Note: The cost of work on meter history and meter location records
is chargeable to account 586, Meter Expenses.
904 Uncollectible accounts.
This account shall be charged with amounts sufficient to provide for
losses from uncollectible utility revenues. Concurrent credits shall be
made to account 144, Accumulated Provision for Uncollectible Accounts --
Cr. Losses from uncollectible accounts shall be charged to account 144.
905 Miscellaneous customer accounts expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred not provided for in other accounts.
Labor:
1. General clerical and stenographic work.
2. Miscellaneous labor.
Materials and Expenses:
3. Communication service.
4. Miscellaneous office supplies and expenses and stationery and
printing other than those specifically provided for in accounts 902 and
903.
906 Customer service and informational expenses (Nonmajor only).
This account shall include the cost of supervision, labor, and
expenses incurred in customer service and informational activities, the
purpose of which is to encourage safe and efficient use of the utility's
service, to encourage conservation of the utility's service, and to
assist present customers in answering specific inquiries as to the
proper and economic use of the utility's service and the customer's
equipment utilizing the service.
907 Supervision (Major only).
This account shall include the cost of labor and expenses incurred in
the general direction and supervision of customer service activities,
the object of which is to encourage safe, efficient and economical use
of the utility's service. Direct supervision of a specific activity
within customer service and informational expense classification shall
be charged to the account wherein the costs of such activity are
included. (See operating expense instruction 1.)
908 Customer assistance expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in providing instructions or assistance to customers,
the object of which is to encourage safe, efficient and economical use
of the utility's service.
Labor:
1. Direct supervision of department.
2. Processing customer inquiries relating to the proper use of
electric equipment, the replacement of such equipment and information
related to such equipment.
3. Advice directed to customers as to how they may achieve the most
efficient and safest use of electric equipment.
4. Demonstrations, exhibits, lectures, and other programs designed to
instruct customers in the safe, economical or efficient use of electric
service, and/or oriented toward conservation of energy.
5. Engineering and technical advice to customers, the object of which
is to promote safe, efficient and economical use of the utility's
service.
Materials and Expenses:
6. Supplies and expenses pertaining to demonstrations, exhibits,
lectures, and other programs.
7. Loss in value on equipment and appliances used for customer
assistance programs.
8. Office supplies and expenses.
9. Transportation, meals, and incidental expenses.
Note. -- Do not include in this account expenses that are provided
for elsewhere, such as accounts 416, Costs and Expenses of
Merchandising, Jobbing and Contract Work, 587, Customer Installations
Expenses, and 912, Demonstrating and Selling Expenses.
909 Informational and instructional advertising expenses (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in activities which primarily convey information as to
what the utility urges or suggests customers should do in utilizing
electric service to protect health and safety, to encourage
environmental protection, to utilize their electric equipment safely and
economically, or to conserve electric energy.
Labor:
1. Direct supervision of informational activities.
2. Preparing informational materials for newspapers, periodicals,
billboards, etc., and preparing and conducting informational motion
pictures, radio and television programs.
3. Preparing informational booklets, bulletins, etc., used in direct
mailings.
4. Preparing informational window and other displays.
5. Employing agencies, selecting media and conducting negotiations in
connection with the placement and subject matter of information
programs.
Materials and Expenses:
6. Use of newspapers, periodicals, billboards, radio, etc., for
informational purposes.
7. Postage on direct mailings to customers exclusive of postage
related to billings.
8. Printing of informational booklets, dodgers, bulletins, etc.
9. Supplies and expenses in preparing informational materials by the
utility.
10. Office supplies and expenses.
Note A: Exclude from this account and charge to account 930.2,
Miscellaneous General Expenses, the cost of publication of stockholder
reports, dividend notices, bond redemption notices, financial
statements, and other notices of a general corporate character. Exclude
also all expenses of a promotional, institutional, goodwill or political
nature, which are includible in such accounts as 913, Advertising
Expenses, 930.1, General Advertising Expenses, and 426.4, Expenditures
for Certain Civic, Political and Related Activities.
Note B: Entries relating to informational advertising included in
this account shall contain or refer to supporting documents which
identify the specific advertising message. If references are used,
copies of the advertising message shall be readily available.
910 Miscellaneous customer service and informational expenses (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in connection with customer service and informational
activities which are not includible in other customer information
expense accounts.
Labor:
1. General clerical and stenographic work not assigned to specific
customer service and informational programs.
2. Miscellaneous labor.
Materials and Expenses:
3. Communication service.
4. Printing, postage and office supplies expenses.
911 Supervision (Major only).
This account shall include the cost of labor and expenses incurred in
the general direction and supervision of sales activities, except
merchandising. Direct supervision of a specific activity, such as
demonstrating, selling, or advertising shall be charged to the account
wherein the costs of such activity are included. (See operating expense
instruction 1.)
912 Demonstrating and selling expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in promotional, demonstrating, and selling activities,
except by merchandising, the object of which is to promote or retain the
use of utility services by present and prospective customers.
Labor:
1. Demonstrating uses of utility services.
2. Conducting cooking schools, preparing recipes, and related home
service activities.
3. Exhibitions, displays, lectures, and other programs designed to
promote use of utility services.
4. Experimental and development work in connection with new and
improved appliances and equipment, prior to general public acceptance.
5. Solicitation of new customers or of additional business from old
customers, including commissions paid employees.
6. Engineering and technical advice to present or prospective
customers in connection with promoting or retaining the use of utility
services.
7. Special customer canvasses when their primary purpose is the
retention of business or the promotion of new business.
Materials and Expenses:
8. Supplies and expenses pertaining to demonstration, and
experimental and development activities.
9. Booth and temporary space rental.
10. Loss in value on equipment and appliances used for demonstration
purposes.
11. Transportation, meals, and incidental expenses.
913 Advertising expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in advertising designed to promote or retain the use
of utility service, except advertising the sale of merchandise by the
utility.
Labor:
1. Direct supervision of department.
2. Preparing advertising material for newspapers, periodicals,
billboards, etc., and preparing and conducting motion pictures, radio
and television programs.
3. Preparing booklets, bulletins, etc., used in direct mail
advertising.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and media and conducting
negotiations in connection with the placement and subject matter of
sales advertising.
Materials and expenses:
7. Advertising in newspapers, periodicals, billboards, radio, etc.,
for sales promotion purposes, but not including institutional or
goodwill advertising includible in account 930.1, General Advertising
Expenses.
8. Materials and services given as prizes or otherwise in connection
with civic lighting contests, canning, or cooking contests, bazaars,
etc., in order to publicize and promote the use of utility services.
9. Fees and expenses of advertising agencies and commercial artists.
10. Novelties for general distribution.
11. Postage on direct mail advertising.
12. Premiums distributed generally, such as recipe books, etc., when
not offered as inducement to purchase appliances.
13. Printing booklets, dodgers, bulletins, etc.
14. Supplies and expenses in preparing advertising material.
15. Office supplies and expenses.
Note A: The cost of advertisements which set forth the value or
advantages of utility service without reference to specific appliances
or, if reference is made to appliances invites the reader to purchase
appliances from his dealer or refer to appliances not carried for sale
by the utility, shall be considered sales promotion advertising and
charged to this account. However, advertisements which are limited to
specific makes of appliances sold by the utility and prices, terms,
etc., thereof, without referring to the value or advantages of utility
service, shall be considered as merchandise advertising and the cost
shall be charged to Costs and Expenses of Merchandising, Jobbing and
Contract Work, Account 416.
Note B: Advertisements which substantially mention or refer to the
value or advantages of utility service, together with specific reference
to makes of appliances sold by the utility and the price, terms, etc.,
thereof and designed for the joint purpose of increasing the use of
utility service and the sales of appliances, shall be considered as a
combination advertisement and the costs shall be distributed between
this account and Account 416 on the basis of space, time, or other
proportional factors.
Note C: Exclude from this account and charge to Account 930.2,
Miscellaneous General Expenses, the cost of publication of stockholder
reports, dividend notices, bond redemption notices, financial
statements, and other notices of a general corporate character. Exclude
also all institutional or goodwill advertising. (See Account 930.1,
General Advertising Expenses.)
916 Miscellaneous sales expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in connection with sales activities, except
merchandising, which are not includible in other sales expense accounts.
Labor:
1. General clerical and stenographic work not assigned to specific
functions.
2. Special analysis of customer accounts and other statistical work
for sales purposes not a part of the regular customer accounting and
billing routine.
3. Miscellaneous labor.
Materials and Expenses:
4. Communication service.
5. Printing, postage, and office supplies and expenses applicable to
sales activities, except those chargeable to account 913, Advertising
Expenses.
917 Sales expenses (Nonmajor only).
This account shall include the cost of labor and expenses incurred
for the purpose of promoting the sale of electricity, other than
merchandising, jobbing or contract work activities.
1. Advertising.
2. Demonstrating uses of utility service.
3. Home service activities.
4. Solicitation of new business.
920 Administrative and general salaries.
A. This account shall include the compensation (salaries, bonuses,
and other consideration for services, but not including directors' fees)
of officers, executives, and other employees of the utility properly
chargeable to utility operations and not chargeable directly to a
particular operating function.
B. This account may be subdivided in accordance with a classification
appropriate to the departmental or other functional organization of the
utility.
921 Office supplies and expenses.
A. This account shall include office supplies and expenses incurred
in connection with the general administration of the utility's
operations which are assignable to specific administrative or general
departments and are not specifically provided for in other accounts.
This includes the expenses of the various administrative and general
departments, the salaries and wages of which are includible in account
920.
B. This account may be subdivided in accordance with a classification
appropriate to the departmental or other functional organization of the
utility.
Note: Office expenses which are clearly applicable to any group of
operating expenses other than the administrative and general group shall
be included in the appropriate account in such group. Further, general
expenses which apply to the utility as a whole rather than to a
particular administrative function shall be included in account 930.2,
Miscellaneous General Expenses.
1. Automobile service, including charges through clearing account.
2. Bank messenger and service charges.
3. Books, periodicals, bulletins and subscriptions to newspapers,
newsletters, tax services, etc.
4. Building service expenses for customer accounts, sales, and
administrative and general purposes.
5. Communication service expenses.
6. Cost of individual items of office equipment used by general
departments which are of small value or short life.
7. Membership fees and dues in trade, technical, and professional
associations paid by a utility for employees. (Company memberships are
includible in account 930.2.)
8. Office supplies and expenses.
9. Payment of court costs, witness fees and other expenses of legal
department.
10. Postage, printing and stationery.
11. Meals, traveling and incidental expenses.
922 Administrative expenses transferred -- Credit.
This account shall be credited with administrative expenses recorded
in accounts 920 and 921 which are transferred to construction costs or
to nonutility accounts. (See electric plant instruction 4.)
923 Outside services employed.
A. This account shall include the fees and expenses of professional
consultants and others for general services which are not applicable to
a particular operating function or to other accounts. It shall include
also the pay and expenses of persons engaged for a special or temporary
administrative or general purpose in circumstances where the person so
engaged is not considered as an employee of the utility.
B. This account shall be so maintained as to permit ready
summarization according to the nature of service and the person
furnishing the same.
1. Fees, pay and expenses of accountants and auditors, actuaries,
appraisers, attorneys, engineering consultants, management consultants,
negotiators, public relations counsel, tax consultants, etc.
2. Supervision fees and expenses paid under contracts for general
management services.
Note: Do not include inspection and brokerage fees and commissions
chargeable to other accounts or fees and expenses in connection with
security issues which are includible in the expenses of issuing
securities.
924 Property insurance.
A. This account shall include the cost of insurance or reserve
accruals to protect the utility against losses and damages to owned or
leased property used in its utility operations. It shall include also
the cost of labor and related supplies and expenses incurred in property
insurance activities.
B. Recoveries from insurance companies or others for property damages
shall be credited to the account charged with the cost of the damage.
If the damaged property has been retired, the credit shall be to the
appropriate account for accumulated provision for depreciation.
C. Records shall be kept so as to show the amount of coverage for
each class of insurance carried, the property covered, and the
applicable premiums. Any dividends distributed by mutual insurance
companies shall be credited to the accounts to which the insurance
premiums were charged.
1. Premiums payable to insurance companies for fire, storm, burglary,
boiler explosion, lightning, fidelity, riot, and similar insurance.
2. Amounts credited to account 228.1, Accumulated Provision for
Property Insurance, for similar protection.
3. Special costs incurred in procuring insurance.
4. Insurance inspection service.
5. Insurance counsel, brokerage fees, and expenses.
Note A: The cost of insurance or reserve accruals capitalized shall
be charged to construction either directly or by transfer to
construction work orders from this account.
Note B: The cost of insurance or reserve accruals for the following
classes of property shall be charged as indicated.
(1) Materials and supplies and stores equipment, to account 163,
Stores Expense Undistributed (store expenses in the case of Nonmajor
utilities), or appropriate materials account.
(2) For Major Utilities, transportation and other general equipment
to appropriate clearing accounts that may be maintained. For Nonmajor
utilities, transportation and garage equipment, to account 933,
Transportation Expenses.
(3) Electric plant leased to others, to account 413, Expenses of
Electric Plant Leased to Others.
(4) Nonutility property, to the appropriate nonutility income
account.
(5) Merchandise and jobbing property, to Account 416, Costs and
Expenses of Merchandising, Jobbing and Contract Work.
Note C (Major only): The cost of labor and related supplies and
expenses of administrative and general employees who are only
incidentally engaged in property insurance work may be included in
accounts 920 and 921, as appropriate.
925 Injuries and damages.
A. This account shall include the cost of insurance or reserve
accruals to protect the utility against injuries and damages claims of
employees or others, losses of such character not covered by insurance,
and expenses incurred in settlement of injuries and damages claims. For
Major utilities, it shall also include the cost of labor and related
supplies and expenses incurred in injuries and damages activities.
B. Reimbursements from insurance companies or others for expenses
charged hereto on account of injuries and damages and insurance
dividends or refunds shall be credited to this account.
1. Premiums payable to insurance companies for protection against
claims from injuries and damages by employees or others, such as public
liability, property damages, casualty, employee liability, etc., and
amounts credited to account 228.2, Accumulated Provision for Injuries
and Damages, for similar protection.
2. Losses not covered by insurance or reserve accruals on account of
injuries or deaths to employees or others and damages to the property of
others.
3. Fees and expenses of claim investigators.
4. Payment of awards to claimants for court costs and attorneys'
services.
5. Medical and hospital service and expenses for employees as the
result of occupational injuries, or resulting from claims of others.
6. Compensation payments under workmen's compensation laws.
7. Compensation paid while incapacitated as the result of
occupational injuries. (See Note A.)
8. Cost of safety, accident prevention and similar educational
activities.
Note A: Payments to or in behalf of employees for accident or death
benefits, hospital expenses, medical supplies or for salaries while
incapacitated for service or on leave of absence beyond periods normally
allowed, when not the result of occupational injuries, shall be charged
to account 926, Employee Pensions and Benefits. (See also Note B of
account 926.)
Note B: The cost of injuries and damages or reserve accruals
capitalized shall be charged to construction directly or by transfer to
construction work orders from this account.
Note C: Exclude herefrom the time and expenses of employees (except
those engaged in injuries and damages activities) spent in attendance at
safety and accident prevention educational meetings, if occurring during
the regular work period.
Note D: The cost of labor and related supplies and expenses of
administrative and general employees who are only incidentally engaged
in injuries and damages activities may be included in accounts 920 and
921, as appropriate.
926 Employee pensions and benefits.
A. This account shall include pensions paid to or on behalf of
retired employees, or accruals to provide for pensions, or payments for
the purchase of annuities for this purpose, when the utility has
definitely, by contract, committed itself to a pension plan under which
the pension funds are irrevocably devoted to pension purposes, and
payments for employee accident, sickness, hospital, and death benefits,
or insurance therefor. Include, also, expenses incurred in medical,
educational or recreational activities for the benefit of employees, and
administrative expenses in connection with employee pensions and
benefits.
B. The utility shall maintain a complete record of accruals or
payments for pensions and be prepared to furnish full information to the
Commission of the plan under which it has created or proposes to create
a pension fund and a copy of the declaration of trust or resolution
under which the pension plan is established.
C. There shall be credited to this account the portion of pensions
and benefits expenses which is applicable to nonutility operations or
which is charged to construction unless such amounts are distributed
directly to the accounts involved and are not included herein in the
first instance.
D. For Major utilities, records in support of this account shall be
so kept that the total pensions expense, the total benefits expense, the
administrative expenses included herein, and the amounts of pensions and
benefits expenses transferred to construction or other accounts will be
readily available.
1. Payment of pensions under a nonaccrual or nonfunded basis.
2. Accruals for or payments to pension funds or to insurance
companies for pension purposes.
3. Group and life insurance premiums (credit dividends received).
4. Payments for medical and hospital services and expenses of
employees when not the result of occupational injuries.
5. Payments for accident, sickness, hospital, and death benefits or
insurance.
6. Payments to employees incapacitated for service or on leave of
absence beyond periods normally allowed, when not the result of
occupational injuries, or in excess of statutory awards.
7. Expenses in connection with educational and recreational
activities for the benefit of employees.
Note A: The cost of labor and related supplies and expenses of
administrative and general employees who are only incidentally engaged
in employee pension and benefit activities may be included in accounts
920 and 921, as appropriate.
Note B: Salaries paid to employees during periods of nonoccupational
sickness may be charged to the appropriate labor account rather than to
employee benefits.
927 Franchise requirements.
A. This account shall include payments to municipal or other
governmental authorities, and the cost of materials, supplies and
services furnished such authorities without reimbursement in compliance
with franchise, ordinance, or similar requirements; provided, however,
that the utility may charge to this account at regular tariff rates,
instead of cost, utility service furnished without charge under
provisions of franchises.
B. When no direct outlay is involved, concurrent credit for such
charges shall be made to account 929, Duplicate Charges -- Credit.
C. The account shall be maintained so as to readily reflect the
amounts of cash outlays, utility service supplied without charge, and
other items furnished without charge.
Note A: Franchise taxes shall not be charged to this account but to
account 408.1, Taxes Other Than Income Taxes, Utility Operating Income.
Note B: Any amount paid as initial consideration for a franchise
running for more than one year shall be charged to account 302,
Franchises and Consents.
928 Regulatory commission expenses.
A. This account shall include all expenses (except pay of regular
employees only incidentally engaged in such work) properly includible in
utility operating expenses, incurred by the utility in connection with
formal cases before regulatory commissions, or other regulatory bodies,
or cases in which such a body is a party, including payments made to a
regulatory commission for fees assessed against the utility for pay and
expenses of such commission, its officers, agents, and employees, and
also including payments made to the United States for the administration
of the Federal Power Act.
B. Amounts of regulatory commission expenses which by approval or
direction of the Commission are to be spread over future periods shall
be charged to account 186, Miscellaneous Deferred Debits, and amortized
by charges to this account.
C. The utility shall be prepared to show the cost of each formal
case.
1. Salaries, fees, retainers, and expenses of counsel, solicitors,
attorneys, accountants, engineers, clerks, attendants, witnesses, and
others engaged in the prosecution of, or defense against petitions or
complaints presented to regulatory bodies, or in the valuation of
property owned or used by the utility in connection with such cases.
2. Office supplies and expenses, payments to public service or other
regulatory commissions, stationery and printing, traveling expenses, and
other expenses incurred directly in connection with formal cases before
regulatory commissions.
Note A: Exclude from this account and include in other appropriate
operating expense accounts, expenses incurred in the improvement of
service, additional inspection, or rendering reports, which are made
necessary by the rules and regulations, or orders, of regulatory bodies.
Note B: Do not include in this account amounts includible in account
302, Franchises and Consents, account 181, Unamortized Debt Expense, or
account 214, Capital Stock Expense.
929 Duplicate charges -- Credit.
This account shall include concurrent credits for charges which may
be made to operating expenses or to other accounts for the use of
utility service from its own supply. Include, also, offsetting credits
for any other charges made to operating expenses for which there is no
direct money outlay.
930.1 General advertising expenses.
This account shall include the cost of labor, materials used, and
expenses incurred in advertising and related activities, the cost of
which by their content and purpose are not provided for elsewhere.
Labor:
1. Supervision.
2. Preparing advertising material for newspapers, periodicals,
billboards, etc., and preparing or conducting motion pictures, radio and
television programs.
3. Preparing booklets, bulletins, etc., used in direct mail
advertising.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating and employing advertising agencies, selecting media
and conducting negotiations in connection with the placement and subject
matter of advertising.
Materials and Expenses:
7. Advertising in newspapers, periodicals, billboards, radio, etc.
8. Advertising matter such as posters, bulletins, booklets, and
related items.
9. Fees and expenses of advertising agencies and commercial artists.
10. Postage and direct mail advertising.
11. Printing of booklets, dodgers, bulletins, etc.
12. Supplies and expenses in preparing advertising materials.
13. Office supplies and expenses.
Note A: Properly includible in this account is the cost of
advertising activities on a local or national basis of a good will or
institutional nature, which is primarily designed to improve the image
of the utility or the industry, including advertisements which inform
the public concerning matters affecting the company's operations, such
as, the cost of providing service, the company's efforts to improve the
quality of service, the company's efforts to improve and protect the
environment, etc. Entries relating to advertising included in this
account shall contain or refer to supporting documents which identify
the specific advertising message. If references are used, copies of the
advertising message shall be readily available.
Note B: Exclude from this account and include in account 426.4,
Expenditures for Certain Civic, Political and Related Activities,
expenses for advertising activities, which are designed to solicit
public support or the support of public officials in matters of a
political nature.
930.2 Miscellaneous general expenses.
This account shall include the cost of labor and expenses incurred in
connection with the general management of the utility not provided for
elsewhere.
Labor:
1. Miscellaneous labor not elsewhere provided for.
Expenses:
2. Industry association dues for company memberships.
3. Contributions for conventions and meetings of the industry.
4. For Major utilities, research, development, and demonstration
expenses not charged to other operation and maintenance expense accounts
on a functional basis.
5. Communication service not chargeable to other accounts.
6. Trustee, registrar, and transfer agent fees and expenses.
7. Stockholders meeting expenses.
8. Dividend and other financial notices.
9. Printing and mailing dividend checks.
10. Directors' fees and expenses.
11. Publishing and distributing annual reports to stockholders.
12. Public notices of financial, operating and other data required by
regulatory statutes, not including, however, notices required in
connection with security issues or acquisitions of property. For
Nonmajor utilities, transportation and garage equipment, to account 933,
Transportation Expenses.
931 Rents.
This account shall include rents properly includible in utility
operating expenses for the property of others used, occupied, or
operated in connection with the customer accounts, customer service and
informational, sales, and general and administrative functions of the
utility. (See operating expense instruction 3.)
933 Transportation expenses (Nonmajor only).
A. This account shall include the cost of labor, materials used and
expenses incurred in the operation and maintenance of general
transportation equipment of the utility.
B. This account may be used as a clearing account in which event the
charges hereto shall be cleared by apportionment to the appropriate
operating expense, electric plant, or other accounts on a basis which
will distribute the expenses equitably. Credits to this account shall
be made in such detail as to permit ready analysis.
1. Supervision.
2. Building service.
3. Care of grounds, including snow removal, cutting grass, etc.
4. Utility services.
5. Depreciation of transportation equipment.
6. Fuel and lubricants for vehicles (including sales and excise taxes
thereon).
7. Insurance on garage equipment and transportation equipment,
including public liability and property damage.
8. Maintenance of transportation and garage equipment.
9. Compensation of drivers, mechanics, clerks, and other garage
employees.
10. Rent of garage buildings and grounds, vehicles or equipment.
11. Replacement of tires, tubes, batteries, etc.
12. Direct taxes, licenses, and permits.
13. Miscellaneous garage supplies, tools, and equipment.
14. Miscellaneous office supplies and expenses, printing, and
stationery.
15. Transportation, meals, and incidental expenses.
Note A: The pay of employees driving trucks or other transportation
equipment incidental to their regular occupation, shall not be included
herein but charged directly to the appropriate expense or other account.
Note B: Transportation expenses applicable to construction shall not
be included in operating expenses.
935 Maintenance of general plant.
A. This account shall include the cost assignable to customer
accounts, sales and administrative and general functions of labor,
materials used and expenses incurred in the maintenance of property, the
book cost of which is includible in account 390, Structures and
Improvements, account 391, Office Furniture and Equipment, account 397,
Communication Equipment, and account 398 Miscellaneous Equipment. For
Nonmajor utilities, include also other general equipment accounts (not
including transportation equipment). (See operating expense instruction
2.)
B. Maintenance expenses on office furniture and equipment used
elsewhere than in general, commercial and sales offices shall be charged
to the following accounts:
Steam Power Generation, Account 514.
Nuclear Power Generation, Account 532 (Major only).
Hydraulic Power Generation, Account 545.
Other Power Generation, Account 554.
Transmission, Account 573.
Distribution, Account 598.
Merchandise and Jobbing, Account 416.
Garages, Shops, etc., Appropriate clearing account, if used.
Note: Maintenance of plant included in other general equipment
accounts shall be included herein unless charged to clearing accounts or
to the particular functional maintenance expense account indicated by
the use of the equipment.
18 CFR 50.1 PART 103 -- STEAM ROAD INVESTMENTS IN ROAD AND EQUIPMENT;
APPLICATION OF ICC CLASSIFICATION
Sec.
103.00-1 Order of the Commission.
103.00-2 Introductory letter.
103.01-1 Determination of cost of licensed projects.
103.02-0 Records.
103.02-1 Accounts for investment in road and equipment.
103.02-2 Items to be charged.
103.02-3 Basis of charges.
103.02-4 Cost of construction.
103.02-5 Excavated material.
103.02-6 Items to be credited.
103.02-7 Property retired and replaced.
103.02-8 Property retired and not replaced.
103.02-9 Equipment retired.
103.02-10 Land retired.
103.02-11 Adjustments for converted property.
103.02-12 Expenses in connection with additions and betterments.
103.02-13 Interpretation of item lists.
103.02-14 Submission of questions.
103.1 Engineering.
103.2 Land for transportation purposes.
103.3 Grading.
103.4 Underground power tubes.
103.5 Tunnels and subways.
103.6 Bridges, trestles, and culverts.
103.7 Elevated structures.
103.8 Ties.
103.9 Rails.
103.10 Other track material.
103.11 Ballast.
103.12 Track laying and surfacing.
103.13 Right-of-way fences.
103.14 Snow and sand fences and snowsheds.
103.15 Crossings and signs.
103.16 Station and office buildings.
103.17 Roadway buildings.
103.18 Water stations.
103.19 Fuel stations.
103.20 Shops and enginehouses.
103.21 Grain elevators.
103.22 Storage warehouses.
103.23 Wharves and docks.
103.24 Coal and ore wharves.
103.25 Gas producing plants.
103.26 Telegraph and telephone lines.
103.27 Signals and interlockers.
103.28 Power dams, canals, and pipe lines.
103.29 Power plant buildings.
103.30 Power substation buildings.
103.31 Power transmission systems.
103.32 Power distribution systems.
103.33 Power line poles and fixtures.
103.34 Underground conduits.
103.35 Miscellaneous structures.
103.36 Paving.
103.37 Roadway machines.
103.38 Roadway small tools.
103.39 Assessments for public improvements.
103.40 Revenues and operating expenses during construction.
103.41 Cost of road purchased.
103.42 Reconstruction of road purchased.
103.43 Other expenditures -- road.
103.44 Shop machinery.
103.45 Power plant machinery.
103.46 Power substation apparatus.
103.47 Unapplied construction material and supplies.
103.51 Steam locomotives.
103.52 Other locomotives.
103.53 Freight-train cars.
103.54 Passenger-train cars.
103.55 Motor equipment of cars.
103.56 Floating equipment.
103.57 Work equipment.
103.58 Miscellaneous equipment.
103.71 Organization expenses.
103.72 General officers and clerks.
103.73 Law.
103.74 Stationery and printing.
103.75 Taxes.
103.76 Interest during construction.
103.77 Other expenditures -- general.
Authority: Secs. 3(13), 4(b), 41 Stat. 1063, 1065, as amended,
secs. 301, 304(a), 308, 309, 49 Stat. 854, 855, 858; 16 U.S.C.
796(13), 797(b), 825, 825c(a), 825g, 825h.
Source: Order 141, 12 FR 8549, Dec. 19, 1947.
18 CFR 50.1 General Provisions
18 CFR 103.00-1 Order of the Commission.
(a) At a General Session of the Interstate Commerce Commission held
at its office in Washington, DC, on the 19th day of May A.D. 1914.
(b) The subject of a Uniform System of Accounts to be prescribed for
and kept by carriers being under consideration the following order was
entered:
(1) It is ordered, That the Classification of Investment in Road and
Equipment of Steam Roads and the text pertaining thereto, embodied in
printed form to be hereafter known as Issue of 1914, a copy of which is
now before this Commission be, and the same is hereby, approved that a
copy thereof duly authenticated by the Secretary of the Commission be
filed in its archives, and a second copy thereof, in like manner
authenticated, in the office of the Division of Carriers' Accounts; and
that each of said copies so authenticated and filed shall be deemed an
original record thereof.
(2) It is further ordered, That the said Classification of Investment
in Road and Equipment of Steam Roads with the text pertaining thereto
be, and is hereby, prescribed for the use of carriers by rail (exclusive
of electric railways) subject to the provisions of the Act to Regulate
Commerce as amended, in the keeping and recording of their accounts of
investment in road and equipment; that each and every such carrier and
each and every receiver or operating trustee of any such carrier be
required to keep all said accounts in conformity therewith; and that a
copy of said issue be sent to each and every such carrier and to each
and every receiver or operating trustee of any such carrier.
(3) It is further ordered, That any such carrier or any receiver or
operating trustee of any such carrier may subdivide any primary account
established in said issue, or may make assignment of the amount included
in any such primary account to operating divisions, to its individual
lines, or to States: Provided, however, That such subprimary accounts
set up or such assignments made by any such carrier or by any receiver
or operating trustee of any such carrier do not impair the integrity of
the accounts hereby prescribed: And provided also, That a list of such
subprimary accounts set up or such assignments made be first filed in
the office of the Division of Carriers' Accounts, subject to disapproval
by the Commission.
(4) It is further ordered, That in order that the basis of comparison
with previous years be not destroyed, any such carrier or any receiver
or operating trustee of any such carrier may, during the twelve months
ending June 30, 1915, keep and maintain, in addition to the accounts of
investment in road and equipment hereby prescribed, such portion or
portions of its present accounts with respect to items of investment in
road and equipment as may be deemed desirable by any such carrier or by
any receiver or operating trustee thereof, for the purpose of such
comparison; or, during the same period, may maintain such groupings of
the primary accounts hereby prescribed as may be desired for that
purpose.
(5) It is further ordered, That, unless otherwise ordered, any such
carrier or any receiver or operating trustee of any such carrier may
keep any temporary or experimental accounts for investment the purpose
of which shall be to develop economies in construction: Provided,
however, That such temporary or experimental accounts shall not impair
the integrity of any general or primary account hereby prescribed.
(6) It is further ordered, That July 1, 1914, be, and is hereby,
fixed as the date on which said issue of the Classification of
Investment in Road and Equipment shall become effective.
18 CFR 103.00-2 Introductory letter.
Interstate Commerce Commission,
Division of Carriers' Accounts,
Washington, May 19, 1914.
To Accounting Officers of Steam Railways:
This Classification of Investment in Road and Equipment supersedes
the Classification of Expenditures for Road and Equipment, First Revised
Issue, effective July 1, 1907, with the Supplement thereto, effective
July 1, 1908, and also the Classification of Expenditures for Additions
and Betterments, First Revised Issue, effective July 1, 1910. It also
supersedes conflicting instructions contained in Accounting Bulletin No.
8.
The plan of merging the accounts of expenditures for additions and
betterments with the accounts for investment in road and equipment
provides that carriers' records shall be kept in such form that the
expenditures for additions and betterments may be reported separately
from those for original road, original equipment, and road extensions.
Distinct accounts have been provided for the investment in several
classes of buildings which, under the former classification, were
included in the account ''Miscellaneous structures.''
The general and special instructions contain a comprehensive
statement of the principles underlying the classification, indicating
generally the application of the accounting rules. The attention of
accounting officers is called to the importance of requiring all
employees who are assigned to accounting work in connection with
investment in road and equipment to familiarize themselves thoroughly
with these instructions.
In the preparation of the revision of the accounting rules contained
in this and other classifications for steam roads, which are
concurrently issued, the Commission has had the cooperation of the
Association of American Railway Accounting Offices, and of its Standing
Committee on Corporate, Fiscal, and General Accounts.
The classification, in tentative form, was presented for criticism
and suggestions to the chief accounting officer of each railway and to
the railway commissions of the several States. All suggestions received
from such parties have been given careful consideration and many of them
have been incorporated in the classification as here issued.
Fred W. Sweney,
Chief Examiner of Accounts.
18 CFR 103.01-1 Determination of cost of licensed projects.
(a) In section 3 of the Federal Power Act, (49 Stat. 839; 16 U.S.C.
796 (13)), approved August 26, 1935, the words net investment, as
related to licensed projects, are defined as meaning ''the actual
legitimate 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 costs of
additions thereto and betterments thereof'', minus the sum of certain
specified items; and it is further provided in said section 3 that
''The term 'cost' shall include, insofar as applicable, the elements
thereof prescribed in said classification, but shall not include
expenditures from funds obtained through donations by States,
municipalities, individuals, or others * * *.''
(b) The said classification is included in this part in its entirety.
It is not intended that it shall be used in the classification of
debits and credits pertaining to licensed projects, but the principles
set forth therein, except as modified by section 3 of the act, shall be
controlling in the determination of the cost of original projects
licensed under said act and of additions thereto and betterments
thereof, and the elements of such cost.
(c) As used in paragraph (b) of this section, the term original
projects for purposes of this system of accounts shall be understood to
mean the lands, fixed improvements and equipment, and the franchises,
rights, etc., provided and arranged for in the original plan for the
construction of new plant. When the plans provide for the construction
of the plant in more than one part or unit, the part or unit first
completed or made ready for service shall constitute the original
project, and subsequent acquisitions or construction of property shall
be considered as additions.
18 CFR 103.01-1 General Instructions
18 CFR 103.02-0 Records.
The carrier's records shall be kept with sufficient particularity to
show fully the facts pertaining to all entries made in the accounts
provided in this part for investment in road and equipment. Where the
full information is not recorded in the general books, the entries
therein shall be supported by other records in which the full details
shall be shown. Such general book entries shall contain sufficient
reference to the detail records to permit ready identification, and the
detail records shall be filed in such manner as to be readily accessible
for examination by representatives of the Interstate Commerce
Commission. (App. II, effective Jan. 1, 1937, p. 9.)
Note: In 103.02-1 to 103.77, inclusive the numbers to the right of
the dash correspond with the respective instruction numbers in
''classification of investment in road and equipment of steam roads
prescribed by the Interstate Commerce Commission, issue of 1914,''
appendix II, uniform system of accounts prescribed for utilities and
licenses, Federal Power Commission, effective Jan. 1, 1937, pp. 9-14.
Cross references to accounts (other than balance-sheet accounts which
are not published in this part) are made by citing the account number,
e.g., Account 37, instead of the corresponding section number ( 103.37).
18 CFR 103.02-1 Accounts for investment in road and equipment.
The accounts prescribed in this classification are designed to show
the investment of the carrier in property devoted to transportation
service. The carrier's investment in physical property other than
transportation property is provided for in Balance-sheet account 705,
''Miscellaneous physical property.'' The carrier means the accounting
carrier, except when otherwise specifically indicated. The carrier's
records shall be kept in such form that expenditures for additions and
betterments may be reported separately from those for original road,
original equipment, and road extensions, and shall show separately, the
expenditures under each authorized addition and betterment project.
(See Balance-sheet account 701, ''Investment in road and equipment,''
and 702. ''Improvements on leased railway property.'')
18 CFR 103.02-2 Items to be charged.
(a) To these accounts shall be charged the cost of original road,
original equipment, road extensions, additions and betterments; also
the estimated values at time of acquisition of right of way and other
road and equipment property donated to the carrier, except that unless
authorized by the Commission no charges shall be made to these accounts
after July 1, 1914, for donations received previously to that date.
Applications to the Commission for including such items in the road and
equipment accounts shall contain full information concerning the source
and character of the donations.
(b) If the total cost of additions and betterments to any class of
equipment, or any class of fixed improvements (except tracks), under a
general plan, considered as a whole, is less than $200, the option may
be exercised of charging the amount expended to the appropriate account
in Operating Expenses. This section is not to be construed as
authorizing the parceling of expenditures in order to bring them within
this limit.
(c) Construction includes all processes connected with the
acquisition and construction of original road and equipment, road
extensions, additions, and betterments.
(d) Original road means the land and fixed improvements provided and
arranged for in the original plan for the construction of a new road.
When the acquisition of any such fixed improvements under the original
plan is deferred, such improvements, when acquired, shall be considered
as additions. Original road shall not be constructed to include fixed
improvements which, under the original plans for the road, it is
proposed to substitute at some time subsequent to the beginning of
commercial operations for the improvements originally installed and used
for transportation operations, such as steel bridges substituted for
trestles.
(e) Original equipment means equipment provided and arranged for
under the original plan for the construction of a new road. When the
acquisition of such equipment under the original plan is deferred, such
equipment, when acquired, shall be considered as additions.
(f) Road extension means the land and fixed improvements provided and
arranged for in the original plan for the construction of extensions of
existing main lines, additional branch lines, and extensions of existing
branch lines. When the acquisition of any such fixed improvements under
the original plan is deferred, such improvements, when acquired, shall
be treated as additions. Road extensions shall not be construed to
include fixed improvements which under the original plans for the
extensions it is proposed to substitute, at some time subsequent to the
beginning of commercial operations, for the improvements originally
installed and used for transportation in connection with commercial
operations, such as steel bridges substituted for trestles.
(g) Equipment means the rolling stock, boats, highway vehicles,
horses, and harness devoted to transportation service, the cost of which
is includible in the equipment accounts.
(h) Fixed improvements means structures which are fixed as to
location, such as tunnels, bridges, buildings, earthworks, etc.
(i) Additions are additional facilities, such as additional
equipment, tracks (including timber and mine tracks), buildings,
bridges, and other structures; additions to such facilities, such as
extensions to tracks, buildings, and other structures; additional ties
laid in existing tracks; and additional devices applied to facilities,
such as air brakes applied to cars not previously thus equipped. When
property, such as a section of road, track, unit of equipment, shop or
power plant machine, building, or other structure, is retired from
service and replaced with property of like purpose, the newly acquired
property shall, for the purpose of this classification, be considered as
an addition, and the cost thereof accounted for accordingly. (See
103.02-7.) If, however, the property retired and replaced is of minor
importance, such as a small roadway building or other structure, and is
replaced in kind without betterment, the cost of the replacement shall
be charged to Operating Expenses, and no adjustment made in the road and
equipment accounts.
(j) Betterments are improvements of existing facilities through the
substitution of superior parts for inferior parts retired, such as the
substitution of steeltired wheels for cast wheels under equipment, the
application of heavier rail in tracks, and the strengthening of bridges
by the substitution of heavier members. The cost chargeable to the
accounts of this classification is the excess cost of new parts over the
cost at current prices of new parts of the kind retired. (See
103.02-12.)
(k) Costs shall be actual money costs to the carrier. Where a
portion of the founds expended by the carrier has been obtained through
donations by States, municipalities, individuals, or others, no
deductions on account of such donations shall be made in stating the
costs. Contributions for joint expenditures should not be considered as
donations. The carrier's proportion only of the cost of joint projects,
such as construction of jointly owned tracks and elimination of highway
crossings at joint expense, shall be included in these accounts.
18 CFR 103.02-3 Basis of charges.
The charges to the accounts of this classification shall be based
upon the cost of the property acquired. When the consideration given
for the purchase or the improvement of property the cost of which is
chargeable to the accounts of this classification is other than money,
the money value of the consideration at the time of the transaction
shall be charged to these accounts, and the actual consideration shall
be described in the record in sufficient detail to identify it. The
carrier shall be prepared to furnish the Commission, upon demand, the
particulars of its determination of the actual cash value of the
consideration, if other than money.
18 CFR 103.02-4 Cost of construction.
It is intended that the accounts for fixed improvements and equipment
shall include the cost of construction of such property. The cost of
construction shall include the cost of labor, materials, and supplies,
work-train service, special machine service, transportation, contract
work, protection from casualties, injuries and damages, privileges, and
other analogous elements in connection with such work. The several
items of cost here referred to are defined as follows:
(a) Cost of labor includes the amount paid for labor expended by the
carrier's own employees, including the cost of labor expended for
preliminary work, such as sinking test holes or making soundings for
tunnels, grading, buildings, and other structures; and cost of labor
expended in laying and taking up tracks for temporary use in
construction, except the cost of labor expended on tracks provided for
the protection of traffic during the progress of addition and betterment
work. Office expenses and traveling and other personal expenses of
employees, when borne by the carrier, shall be considered a part of the
cost of the labor, as shall also the cost of fidelity bonds and
employers' liability insurance premiums. When officers or employees are
specially assigned to construction work, their pay and their traveling
and incidental expenses while thus engaged shall be included in the cost
of the work. No charge shall be made against road and equipment
accounts for the pay of officers who merely render services incidentally
in connection with extensions, additions, or betterments, although
traveling and incidental expenses incurred by such officers solely on
account of such work shall be included in the account to which the cost
of the work is chargeable.
(b) Cost of materials and supplies includes the purchase price of
materials and supplies, including small tools, at the point of free
delivery, plus the costs of inspection and loading assumed by the
carrier; also a suitable proportion of store expenses. (See special
instructions for operating expense accounts, sections 16 and 17.) In
calculating the cost of materials used, proper allowance shall be made
for the value of unused portions and of cuttings, turnings, borings,
etc.; for the value of the material recovered from temporary tracks,
scaffolding, cofferdams, and other temporary structures used in
construction; and for the value of small tools recovered and used for
other purposes.
(c) Cost of work-train service includes amounts paid to others for
rent and maintenance of the equipment used; cost of labor of enginemen,
trainmen, and enginehouse men, including the wages of engine crews and
train crews held in readiness for such service; and the cost of fuel
and other supplies consumed in connection with the operation of work
trains. It shall also include the cost of maintaining the carrier's own
equipment while used in construction service and a fair rent for such
equipment while so used. Amounts charged for rent of such equipment
used in construction shall concurrently be credited to the appropriate
income account for hire of equipment. No ''rent'' or return upon the
investment in such equipment shall be charged for the use of equipment
acquired with the proceeds of securities sold, when the interest upon
such securities is charged to the accounts of this classification.
(d) Cost of special machine service includes the cost of labor
expended and of materials and supplies consumed in maintaining and
operating steam shovels, scrapers, rail unloaders, ballast unloaders,
pile drivers, dredges, ditchers, weed burners, and other labor-saving
machines; also rents paid for use of such machines. (See Note A under
Account 37, ''Roadway machines,'' and text of general account II,
Equipment, seventh paragraph.)
(e) Cost of transportation includes the amounts paid to other
companies or individuals for the transportation of men, materials and
supplies, special machine outfits, appliances, and tools in connection
with construction. Freight charges paid foreign lines for the
transportation of construction material to the carrier's line shall be
included, so far as practicable, as a part of the cost of the material,
when such charges are borne by the carrier. A fair allowance
representing the expense to the carrier of such transportation in
transportation service trains over the carrier's own line also shall be
included. When the cost of such transportation is not assignable to
specific work, it shall be included in Account 43, ''Other expenditures
-- Road.'' Amounts thus charged for transportation in transportation
service trains over the carrier's line shall be credited to operating
expense general account VIII, Transportation for Investment -- Cr.
(f) Cost of contract work includes amounts paid for work performed
under contract by other companies, firms, or individuals, and costs
incident to the award of the contract.
(g) Cost of protection from casualties includes expenditures for
protection against fire, such as payments for discovery or
extinguishment of fires, cost of detecting and prosecuting incendiaries,
witness fees in relation thereto, amounts paid to municipal corporations
and others for fire protection, and other analogous items of expenditure
in connection with construction work.
(h) Cost of injuries and damages includes expenditures on account of
injuries to persons or damage to property when incident to construction
projects, and shall be included in the cost of the work in connection
with which the injury or damage occurs. It also includes that portion
of premiums paid for insuring property applicable to the period prior to
the completion or coming into service of the property insured.
Insurance recovered on account of compensation paid for injuries to
persons incident to construction shall be credited to the accounts to
which such compensation is charged, and insurance recovered on account
of damages to property incident to construction shall be credited to the
accounts chargeable with the expenditures necessary for restoring the
damaged property. The cost of injuries and damages incident to the
removal of old structures, or parts thereof, shall be charged to
Operating Expenses or Profit and Loss, as may be appropriate, except
that such costs in connection with the removal of old structures which
are incumbrances on newly acquired lands shall be included in Account 2,
''Land for tranportation purposes,'' or 3, ''Grading,'' as may be
appropriate. (See 103.02-7, 103.02-8.)
(i) Cost of privileges includes compensation for temporary
privileges, such as the use of public property or streets, in connection
with the construction of the property of the carrier.
18 CFR 103.02-5 Excavated material.
The cost of disposing of material excavated in connection with
construction shall be considered as a part of the cost of the work,
except that when such material is used for filling, the cost of removal
and dumping shall be equitably apportioned between the work in
connection with which the removal occurs and the work in connection with
which the material is used.
18 CFR 103.02-6 Items to be credited.
(a) To these accounts shall be credited the ledger value of property
retired.
(b) Ledger value of property is the value at which the property is
carried in the property investment account in the general ledger of the
carrier. In case the value of any item of property is not shown
separately in the ledger the ledger value of that item shall be its
proportionate share of the value of the entire group in which the
particular property is included.
(c) Property retired means property which is sold, abandoned,
demolished, or otherwise withdrawn from transportation service.
(d) Salvage from retired property is the value of material recovered
from property retired. When such material is retained and again used by
the carrier, the value shall be computed upon the basis of fair prices
for the material in its condition as recovered. When such material is
sold, the net proceeds of the sale shall be considered as the value of
the material.
18 CFR 103.02-7 Property retired and replaced.
(a) When a unit of property other than land or equipment -- such as a
section of road, side or yard track, shop or power plant machine,
building, or other structure -- is retired from service and replaced
with property of like purpose, the ledger value of the retired property
shall be credited to the appropriate accounts of this classification at
the time that the property is retired from service. The amount of this
credit shall be charged concurrently as follows:
(b) An amount equal to the credit balance in the accrued depreciation
balance-sheet account with respect to the property thus retired shall be
charged to that account and the remainder (less salvage and insurance
recovered, if any), together with the cost of demolishing the property,
if demolished by or for the carrier, shall be charged to the accounts in
Operating Expenses appropriate for the cost of repairs of the property
before retirement. The accounting for the salvage shall be in
accordance with the disposition made of the material recovered.
(c) If, however, the property retired and replaced with property of
like purpose is of minor importance, such as a small roadway building or
other small structure, and is replaced in kind without betterment, the
cost of the replacement shall be charged to operating expense accounts,
and no adjustment made in the road and equipment accounts.
(d) If so authorized by the Interstate Commerce Commission, the
carrier may charge to Profit and Loss any extraordinarily large item
representing the cost of property retired and replaced, instead of
charging such item to Operating Expenses. The carrier shall file with
the Commission a statement of the cost and a description of the property
retired and the reasons which, in its judgment, indicate the propriety
of charging the cost of such property to Profit and Loss.
(e) The provisions of this section are applicable in accounting (at
the time of retirement) for the cost of property abandoned, even though
the new property has been actually installed previously to the date of
the demolishment of the abandoned property.
(f) When the renewals to be made to an important building or other
structure will constitute the major portion of its value when renewed,
the property, when taken out of service, shall be considered as retired
and accounted for as provided above, and for the purposes of this
classification the renewed property shall be considered as an addition,
and the appraised cost thereof shall be included in the accounts of this
classification, consideration being given to the secondhand portions
remaining therein. In no case shall the charge for the renewed property
exceed the cost (at current market prices of labor and material) of new
property of equal capacity and equal expectation of life in service,
less a suitable allowance on account of the secondhand parts remaining
therein.
18 CFR 103.02-8 Property retired and not replaced.
(a) When a unit of property other than land or equipment -- such as a
section of road, side or yard track, shop or power plant machine,
building, or other structure -- is retired from service and not
replaced, the ledger value shall be credited to the appropriate property
accounts at the time that the property is retired from service. The
amount of this credit shall be concurrently charged as follows:
(b) An amount equal to the credit balance in the accrued depreciation
balance-sheet account with respect to the property thus retired shall be
charged to that account, and the remainder (less salvage and insurance
recovered, if any), together with the cost of demolishing the property
if demolished by or for the account of the carrier, shall be charged to
the appropriate profit and loss account. The accounting for the salvage
shall be in accordance with the disposition made of the material
recovered.
18 CFR 103.02-9 Equipment retired.
The instructions for accounting for equipment retired are contained
in the text of the general account II, Equipment.
18 CFR 103.02-10 Land retired.
When any land, the cost of which is included in the accounts of this
classification, is retired, the ledger value shall be credited to
Account 2, ''Land for transportation purposes.'' If the land is retained
by the carrier, its estimated value shall be charged to Balance-sheet
Account 705, ''Miscellaneous physical property,'' the necessary
adjustment of the difference between the ledger value and the estimated
value on account of the loss in the property due to its retirement from
transportation service shall be made through Profit and Loss. If sold,
the difference between the ledger value credited to Account 2 and the
amount received for the land shall be adjusted in Profit and Loss.
18 CFR 103.02-11 Adjustments for converted property.
When property, such as a unit of equipment, a building, or other
facility of one class, is converted into property of another class, so
that the amount of investment in such property must be transferred from
one account of this classification to another, the ledger value shall be
credited to the appropriate road and equipment account. Proper account
shall be taken of any salvage recovered in the process of conversion.
The amount of the balance in the accured depreciation balance-sheet
account, with respect to the property thus converted, shall be charged
to that account. The appraised cost of the property converted
(consideration being given to the secondhand portions remaining therein)
shall be included in the appropriate account of this classification.
The charge for the converted property in no case shall exceed the cost
(at current market prices of labor and material) of new property of
equal capacity and equal expectation of life in service, less a suitable
allowance on account of the secondhand portions remaining therein. The
ledger value of the property before conversion, plus the cost of
conversion, less the sum of the estimated value of the property as
converted, the amounts charged to accrued depreciation accounts and the
salvage recovered, shall be charged to the operating expense accounts
appropriate for the costs of repairs of the fixed improvements or for
the retirement of equipment before conversion.
18 CFR 103.02-12 Expenses in connection with additions and betterments.
The cost of removing old material from equipment and from buildings,
bridges, wharves, tracks, and other fixed improvements, shall be charged
to the appropriate operating expense accounts. Such charges shall
include the cost of removing old foundations and filling old
excavations, and restoring condition of grounds after addition and
betterment work; rearranging or relocating existing tracks; relocating
telegraph and telephone poles or lines, fences, track and other signals,
buildings, bridges, trestles, culverts, and other structures, and farm
and highway crossings, including crossing gates and alarms, when the
provisions of 103.02-8 are not applicable; and maintaining or
protecting traffic during the progress of addition and betterment work,
including the cost of constructing, maintaining, and removing temporary
tracks required for maintaining traffic during the progress of the work.
18 CFR 103.02-13 Interpretation of item lists.
Lists of ''items,'' ''details,'' etc., have been given as a part of
this classification for the purpose of clearly indicating the
application of the accounting rules in specific cases. The lists in
every case are to be considered as merely representative, and not as
excluding from any account analogous items which happen to be omitted
from the list appended. On the other hand, the appearance of an item in
a list warrants the inclusion of the item in the account concerned only
when the text of the account also indicates inclusion, inasmuch as the
same item frequently appears in more than one list. The item of
boilers, for example, will be found under Accounts 18, 27, 37, 44, and
45, and the proper charge in any one instance must be determined by the
text of the account.
18 CFR 103.02-14 Submission of questions.
To the end that uniformity of accounting may be maintained from year
to year, carriers shall submit all questions of doubtful interpretation
of the accounting rules to the Commission for consideration and
decision.
18 CFR 103.02-14 Accounts for Investment in Road and Equipment
18 CFR 103.02-14 road
Note: The several primary accounts included in this general account
are designed to show the cost of land, fixed improvements, and roadway
machines and tools owned by the carrier and devoted to transportation
service.
18 CFR 103.1 Engineering.
This account shall include the pay and expenses of engineers,
assistants, and clerks engaged in the survey and construction of new
lines and extensions, or in making additions to and betterments of the
carrier's road, including wharves and docks.
Chief engineer.
Assistant engineers.
Bridge engineer.
Signal engineer.
Architects.
Chief clerk.
Draftsmen.
Clerks.
Transitmen.
Levelmen.
Rodmen.
Chainmen.
Axmen.
Messengers.
Cooks on business cars.
Porters on business cars.
Atlases and maps.
Axes.
Barometers.
Books for office use.
Boxes for materials and instruments.
Business car service.
Cameras.
Camp equipage.
Chains for surveyors.
Compasses.
Curves.
Drawing boards.
Drawing instruments.
Field glasses.
Field notebooks.
Furniture repairs and renewals.
Hatchets.
Heating and lighting.
Levels.
Magnets.
Magnifiers.
Marking chalk.
Official train service.
Oilstones.
Paper, blue-print.
Parallel rules.
Periodicals and newspapers.
Photographic supplies.
Plane tables.
Planimeters.
Plummets.
Printing and stationery.
Protractors.
Provisions for business cars.
Ranging poles.
Reading glasses.
Rent of offices.
Repairs of rented offices.
Rods for surveyors.
Scales.
Section liners.
Sextants.
Slide rules.
Stakes.
Straightedges.
Tally registers.
Tape lines.
Tee squares.
Telegraph service.
Telephone service.
Telescopes.
Thermometers.
Thumb tacks.
Tracing linen.
Transits.
Traveling expenses.
Traverse tables.
Triangles.
Tripods.
Verniers.
Water and ice.
Note A: When employees designated above are engaged in the
maintenance of the road, their pay and expenses while thus employed
shall be charged to Operating Expenses.
Note B: Expenditures for tentative or preliminary surveys shall be
carried in a suspense account until it is determined whether or not to
continue the work. If the project is continued, expenditures for all
surveys in connection therewith shall then be transferred to this
account, and, if abandoned to Operating Expenses, Income, or Profit and
Loss, as may be appropriate.
Note C: The cost of designing, making plans and specifications, and
supervising the construction of equipment shall be included in the cost
of the equipment.
Note D: The cost of stationery and printing supplies used for
accounting purposes in connection with engineering work shall be
included in Account 74, ''Stationery and Printing,'' when not directly
assignable to specific road or equipment accounts.
Note E: Fees and expenses of architects specially employed for
designing or supervising the construction of buildings shall be included
in the accounts appropriate for the cost of the buildings constructed.
18 CFR 103.2 Land for transportation purposes.
(a) This account shall include the cost of land of necessary width
acquired for roadway; the cost of land for station, office, shop, and
other grounds; for ingress to or egress from such grounds; for borrow
pits, waste banks, snow fences, sand fences, and other railway
appurtenances; and for storage of material adjoining the right of way;
the cost of land for wharves and docks and the cost of riparian or water
rights necessary therefor; the cost of removing from the right of way
and locating elsewhere the property of others, and the cost of the
necessary land for relocation of the property, when such costs are
assumed by the accounting carrier.
(b) The carrier's records shall be kept in such manner as to show
separately the cost of land purchased by it and the estimated values at
time of acquisition of lands donated.
(c) Proceeds from the sale of timber or of improvements purchased
with right of way, less any cost of removal, shall be credited to this
account.
Abstracts.
Appraisals.
Arbitrators in condemnation cases.
Commissions paid to others.
Condemnation expenses, including court costs and special counsel
fees.
Damages to property of others.
Deferred payments for right-of-way.
Ditches for waterways when part of consideration.
Judgements and decreed costs to clear or defend titles.
Notarial fees.
Plats.
Premiums on condemnation bonds.
Recording deeds.
Payments for relinquishment of cattle passes and other rights.
Removal and relocation of buildings and other structures not
purchased.
Rent of land when part of consideration for purchase.
Right-of-way agents' compensation (engaged solely in acquiring right
of way).
Taxes accrued and assumed at time of purchase.
Note: The cost of land acquired in excess of that necessary for
transportation operations shall be included in Balance-sheet Account
705, ''Miscellaneous physical property.'' When the purchase of land
acquired for transportation operations involves the purchase of land not
used for such purposes the charges to this account shall be based upon
the estimated cost of only that portion which is used for such purposes,
and the cost of the remaining land shall be included in Account 705.
''Miscellaneous physical property.''
18 CFR 103.3 Grading.
(a) This account shall include the cost of clearing and grading the
roadway, and of constructing protection of a permanent character for the
roadway, tracks, embankments, and cuts.
(b) When a part of a bridge or trestle, or the entire structure, is
converted by filling into an earth embankment, and the bridge is used in
lieu of a temporary trestle for the purpose of filling, the estimated
cost of such temporary trestle shall be included in the cost of the
filling, and charged to this account. (See Note A, under Account 6,
''Bridges, trestles, and culverts.'')
(c) When a tunnel is converted into an open cut, the cost of
clearing, grubbing, and excavating shall be included in this account.
Advertising for contractors' bids.
Berm ditches.
Blasting.
Breakwaters.
Bulkheading.
Clearing land.
Cribbing.
Ditches (not required by right-of-way agreement).
Dressing slopes.
Excavation for conversion of tunnels into open cuts.
Filling bridges, trestles, and culverts.
Grading outfits.
Grubbing land.
Material taken from borrow pits.
Operation of steam shovels.
Payments for privilege of wasting material on the property of others.
Payments for waste banks off the right of way.
Reconstruction of highways.
Retaining walls.
Revetments.
Riprap.
Spoil banks.
Temporary trestling for fills.
Tools for grading.
Wing dams.
18 CFR 103.4 Underground power tubes.
This account shall include the cost of power tubes or conduits for
underground contacts of electric railways or for underground cables of
cable traction railways.
Concrete work.
Drainpipes.
Manhole covers.
Manhole frames.
Plow pits.
Pulleys.
Sheaves.
Slot rails.
Yokes.
Note: The cost of track rails, other track material, and electric
contact rails and insulators shall be charged to the accounts
appropriate for such property.
18 CFR 103.5 Tunnels and subways.
This account shall include the cost of tunnels and subways for the
passage of trains, including apparatus for ventilating and lighting, and
safety devices therein, other than signals.
Note A: The cost of tracks, including guard rails, in tunnels shall
not be charged to this account.
Note B: Station subways not highway crossings are includible in
Account No. 16, ''Station and office buildings.''
Note C: If a tunnel be converted into an open cut, the accounting
shall be in accordance with general instructions, 103.02-11.
18 CFR 103.6 Bridges, trestles, and culverts.
This account shall include the cost of the substructure and
superstructure of bridges, trestles, and culverts, which carry the
tracks of the carrier over watercourses, ravines, public and private
highways, and other railways.
Abutments.
Bridge signs.
Cofferdams.
Concrete and masonry ends for culverts.
Cribs.
Decking, including gravel for fire protection.
Dike protection.
Drainage systems.
Draw protection.
Drawbridge engines and machinery.
False work.
Guard timbers.
Ice breakers.
Painting (except repainting).
Pier protection.
Piers and foundations.
Pipe culverts.
Retaining walls.
Riprap around abutments.
Riprap at culvert ends.
Supports.
Water channels.
Waterproofing.
Wing dams.
Wing walls.
Note A: When a part or the entire structure of a bridge or trestle
is converted, by filling, into an earth embankment the ledger value of
the structure, or of the portion thereof filled, shall be credited to
this account. In case the bridge or trestle is used in lieu of a
temporary trestle for the purpose of filling, the estimated cost of such
temporary trestle shall be charged to Account 3, ''Grading.'' The ledger
value of the structure, or portion thereof, filled, less the value of
the salvage and the estimated cost of trestle charge to Account 3, shall
be charged to Operating Expenses.
Note B: The cost of bridges to carry the carrier's tracks over
undergrade crossings, including the necessary piers and abutments for
sustaining them, shall be included in this account, but the cost of
undergrade roadways, paving on right of way, drainage systems and
retaining walls outside of the bridge abutments shall be included in
Account 15, ''Crossings and signs.''
18 CFR 103.7 Elevated structures.
(a) This account shall include the cost of elevated structures and
foundations of elevated railway systems.
(b) This account is applicable to structures other than earthwork,
which are for the purpose of elevating tracks above the grade of
streets, and which are not properly classable as bridges or trestles.
Note: The cost of stations and other structures built on elevated
structures shall be accounted for according to the class of the
structure thus superimposed, and not in this account.
18 CFR 103.8 Ties.
(a) This account shall include the cost of cross, switch, bridge, and
other track ties used in the construction of tracks for the movement or
storage of locomotives and cars (including tracks in shops, fuel
stations, supply yards, etc.), and the cost of additional ties
subsequently laid in such tracks; also the excess cost of metal ties
used in repairs of track over the cost to replace in kind wooden ties
removed.
(b) The cost of handling ties in general supply and storage yards
shall be included as store expenses apportioned to this account when the
ties are used for construction purposes.
Note A: The cost of labor for unloading, distributing, and placing
the ties in tracks, and the cost of train service in connection with the
distribution of ties laid shall be charged to Account 12, ''Track laying
and surfacing.''
Note B: The cost of ties used in the construction of car floats
shall be included in the cost of such floating equipment, and the cost
of ties used in the construction of temporary tracks, such as gravel-pit
and quarry tracks, shall be included in the appropriate clearing
accounts.
18 CFR 103.9 Rails.
(a) This account shall include the cost of rails used in the
construction of tracks for the movement or storage of locomotives and
cars (including tracks in shops, fuel stations, supply yards, etc.), and
the excess cost of heavier rails or rails of improved types or quality
used for repairs of tracks over the cost to replace in kind the rails
removed.
(b) The cost of handling rails in general supply and storage yards
shall be included as store expenses apportioned to this account when the
rails are used for construction purposes.
(c) To this account shall be credited the difference between the cost
(at current prices at time of removal) of heavy rails removed and the
cost of lighter rails applied in the repairs of tracks.
Note A: The cost of labor for unloading, distributing, and placing
the rails in tracks, and of train service in connection with the
distribution of the rails shall be charged to Account 12, ''Track laying
and surfacing.''
Note B: When secondhand rails are first applied to any tracks and no
more than the actual cost of such rails is carried in the road accounts,
the excess cost of new or heavier rails used for relaying the tracks
over the cost (at prices current at the time of replacement) of rails of
a weight and condition equal to the weight and condition of the released
rails when applied, shall be charged to this account.
Note C: The cost of rails used in the construction of car floats
shall be included in the cost of such floating equipment, and the cost
of rails used in the construction of temporary tracks, such as
gravel-pit and quarry tracks, shall be included in the appropriate
clearing accounts.
18 CFR 103.10 Other track material.
(a) This account shall include the cost of material used in the
construction of tracks for the movement or storage of locomotives and
cars (including tracks in shops, fuel stations, supply yards, etc.),
except ballast and material chargeable to foregoing accounts; also the
excess cost of heavier or improved ''other track material'' used in
repairs of tracks over the cost of replacing in kind such material
removed.
(b) The cost of handling ''other track material'' in general supply
and storage yards shall be included as store expenses apportioned to
this account when such material is used in the construction of new
tracks.
Angle bars.
Anticreepers.
Bumping posts.
Compromise joints.
Connecting rods.
Crossings for steam and electric railways, including foundations or
bases.
Derails.
Frog blocking.
Frogs.
Guard-rail blocking
Guard-rail clamps.
Guard-rail fasteners.
Guard rails, switch and other.
Main rods.
Nut locks.
Nuts.
Offset bars.
Rail braces.
Rail chairs.
Rail clips.
Rail joints.
Rail rests.
Rail shims.
Rail splices.
Splice bars.
Step chairs.
Switch chairs.
Switch crossings.
Switch lamps.
Switch locks and keys.
Switch points.
Switch stands.
Switch targets.
Switches.
Tie plates.
Tie plugs.
Tie-rods.
Track bolts.
Track insulators.
Track spikes.
Note A: The cost of labor and train service for distributing,
unloading, and applying ''other track material'' shall be charged to
Account 12, ''Track laying and surfacing.''
Note B: No entry is required in this account with respect to
improved ''other track material'' unless installed under a definite plan
of changing standards, such as increasing the weight of rail.
Note C: The cost of ''other track material'' used in the
construction of car floats shall be included in the cost of such
floating equipment, and the cost of such track material used in the
construction of temporary tracks, such as gravel-pit and quarry tracks,
shall be included in the appropriate clearing accounts.
18 CFR 103.11 Ballast.
This account shall include the cost of gravel, stone, slag, cinders,
sand, and like material used in ballasting tracks (including tracks in
shops, fuel stations supply yards, etc.) not previously ballasted,
including cost of work-train service and of unloading; cost of ballast
applied in excess of ballast required to restore to its maximum height
and width the ballast previously put on the roadbed; and the excess
cost of improved ballast used in renewals over the cost to replace in
kind to the original height and width the ballast removed. (Special
instructions, 103.02-11, for operating expense accounts, apply to the
accounting for pits from which ballast material is obtained either for
construction work or for maintenance, or for both.)
Note A: The cost of ballast used in the construction of temporary
tracks, such as gravel-pit and quarry tracks, shall be included in the
appropriate clearing accounts
Note B: Earth placed to form a crown in the middle of the track is
not to be considered as ballast.
Note C: The cost of ballast material placed on the decking of
bridges solely for fire-protection purposes shall be included in Account
6, ''Bridges, trestles, and culverts.''
Note D: No charge shall be made to the accounts of this
classification representing the value of cinders accumulated by the
carrier.
18 CFR 103.12 Track laying and surfacing.
This account shall include the cost of distributing (including train
service), laying, and adjusting ties, rails, and other track material
used in the construction of tracks for the movement or storage of
locomotive or cars, including repair tracks, but not tracks on car
floats or temporary tracks the cost of which is chargeable to clearing
accounts. It shall also include the cost of the labor expended in
placing ballast in tracks not previously ballasted.
Note A: The cost of distributing and adjusting ties, rails, ballast,
and other track material for repairs shall be charged to Operating
Expenses, both when such materials are replaced in kind and when
replaced with improved and heavier material.
Note B: The cost of work-train service in delivering ballast and of
unloading such material is provided for in Account 11, ''Ballast.''
18 CFR 103.13 Right-of-way fences.
This account shall include the cost of right-of-way fences (including
permanent snow and sand fences erected in lieu of right-of-way fences),
farm gates, cattle guards, wing fences, aprons, and hedges, on property
not previously fenced, excluding those around stockyards, fuel stations,
station and shop grounds, and building sites.
18 CFR 103.14 Snow and sand fences and snowsheds.
This account shall include the cost of snowsheds, including rock
filling when necessary, and cost of permanent or portable fences for the
protection of tracks from snow and sand, other than such permanent
fences erected in lieu of right-of-way fences and chargeable to Account
13, ''Right-of-way fences.''
18 CFR 103.15 Crossings and signs.
This account shall include the cost of constructing farm passes,
highways, and other railways across the carrier's right of way, except
railways crossing at grade; cost of track signs, crossing gates,
highway-crossing alarms, planking, paving, and watch houses at
crossings; and the portion borne by the carrier of cost of overgrade
and undergrade crossings constructed to eliminate grade crossings.
Batteries, with track instruments and connections.
Crossing gates.
Crossing signal bells.
Paving.
Planking.
Soil crossing drains.
Warning signals.
Watch houses.
Water pipes.
Bridge superstructures.
Bridge substructures.
Decking, including roadways.
Drainage systems.
Piers, including foundations.
Retaining and wing walls, including foundations.
Curbing.
Drainage systems.
Paving on right-of-way.
Retaining walls outside of bridge abutments.
Roadways.
Sidewalks.
Boundary signs.
Mile signs.
Monument stones.
Overhead-bridge caution signs.
Section signs.
Slow or stop signs.
Subdivision boards.
Tunnel caution signs
Water station signs.
Water trough signs.
Whistle signs.
Yard-limit signs.
Note A: The cost of shop and station overgrade footbridges and
subways not public highways shall be included in the cost of the
buildings.
Note B: The cost of bridges or trestles carrying the carrier's
tracks over roads, highways, or other railways shall be charged to
Account 6, ''Bridges, trestles, and culverts,'' but the cost of a bridge
or other structure which carries farm passes, highways, or the tracks of
another carrier over the carrier's tracks shall be included in this
account.
18 CFR 103.16 Station and office buildings.
This account shall include the cost of station and office structures,
their fixtures, appurtenances, and furniture necessary first to equip
the buildings for use.
Baggage rooms.
Breakwaters for protection of buildings.
Buildings and rooms for trainmen.
Buildings on piers.
Call bells.
Coal bins.
Coal transferring machinery (not on coal and ore wharves).
Coal trestles (not at fuel stations).
Commissarial buildings.
Drainage and sewerage systems.
Dwellings.
Eating houses.
Electric wiring.
Elevators and machinery.
Express buildings.
Fences.
Fire-engine houses.
Freight cranes.
Freight derricks.
Freight handling machinery.
Freight houses.
Garages.
Gas-supply systems.
General office buildings.
Grain cribs.
Grain elevators.
Grain warehouses.
Greenhouses.
Hay houses.
Heating plants.
Hedges.
Hoisting engines, for handling freight.
Hose houses.
Ice houses.
Lighting plants.
Mail cranes.
Milk stands.
Office buildings.
Ore-transferring machinery.
Outhouses.
Pavement within ground limits.
Platforms, freight.
Platforms, passenger, including planking between tracks.
Power distribution systems, interior.
Reading rooms.
Rooms for Y.M.C.A.
Scale houses.
Sidewalks.
Stables.
Station footbridges (not highway crossings).
Station intertrack fences.
Station platforms.
Station signs.
Station stairways.
Station subways (not highway crossings).
Station powerhouses.
Stations, freight.
Stations, passenger.
Stock pens.
Storehouses.
Telegraph offices.
Telpher systems.
Track scales.
Transfer houses.
Transfer platforms.
Waiting rooms.
Warehouses.
Washrooms.
Water-supply systems.
Yard offices.
Note A: Office buildings used exclusively in connection with
maintenance of way shall be included in Account 17, ''Roadway
buildings.'' Those used exclusively in connection with maintenance of
equipment shall be included in Account 20, ''Shops and enginehouses.''
Note B: The cost of grading and preparing grounds, both before and
after the construction of station and office buildings, and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.17 Roadway buildings.
This account shall include the cost of roadway shops and other
roadway buildings, including drainage, water, gas, and sewer pipes and
connections; and all machinery, fixtures, and furniture to equip the
buildings ready for use.
Bins for material.
Blacksmith shops.
Boarding houses.
Breakwaters for protection of buildings.
Carpenter shops.
Dwellings.
Fire-engine houses.
Frog shops for repair of track material.
Fand-car houses.
Lighting plants.
Lumber sheds.
Offices.
Outhouses.
Planing mills.
Rail shops for repair of track material.
Repair shops.
Scrap bins.
Section dwelling houses.
Stables.
Storehouses.
Tool houses.
Watch houses.
Note C: The cost of grading and preparing grounds both before and
after the construction of roadway buildings, and the cost of
constructing sidewalks, driveways, and fences thereon shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.18 Water stations.
This account shall include the cost of structures, facilities, and
appliances necessary to equip for service stations for supplying water.
The cost of analyses of water preliminary to the establishment of water
stations shall be included in this account.
Boilers.
Breakwaters for protection of buildings.
Buildings on piers.
Cisterns.
Dams.
Fences.
Outhouses.
Penstocks.
Pump houses.
Pumps.
Purifying plants.
Reservoirs.
Settling basins.
Stationary engines.
Steam pipes.
Tanks and foundations.
Test wells.
Track tanks.
Tubs.
Water cranes.
Water pipe lines.
Water-treating plants.
Wells.
Windmills.
Note A: The cost of water stations used solely for supplying water
to shops, power plants, stations, hotels, tenement houses, or section
houses shall be charged to the appropriate accounts relating to the
property so supplied.
Note B: The cost of a temporary water station established only for
use during the construction period shall be included in the primary
accounts to which is charged the cost of the work in connection with
which the water station is used.
Note C: The cost of grading and preparing grounds both before and
after the construction of water station buildings, and the cost of
constructing sidewalks, driveways, and fences thereon shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.19 Fuel stations.
This account shall include the cost of structures, facilities other
than tracks, and appliances necessary to equip for service stations for
supplying fuel to locomotives and floating equipment.
Breakwaters for protection of buildings.
Buckets.
Buildings on piers.
Coal buckets.
Coal buggies.
Coal hoists.
Coal pockets and chutes.
Dumping machinery.
Elevating machinery.
Fences.
Fuel houses or stations.
Fuel-oil columns.
Fuel-oil plants.
Fuel-oil pumps.
Fuel-oil sumps.
Fuel-oil tanks.
Fuel platforms.
Fuel wharves.
Inclines.
Outhouses.
Scales.
Sheds.
Stationary engines.
Tipple cars.
Weighing apparatus.
Wood racks.
Note A: The cost of fuel stations, coal houses, etc., used solely
for supplying fuel to shops, power plants, stations, hotels, tenement
houses, or section houses shall be charged to the appropriate accounts
relating to the property so supplied.
Note B: The cost of a temporary fuel station established only for
use during the construction period shall be included in the primary
accounts to which is charged the cost of the work in connection with
which the fuel station is used.
Note C: The cost of grading and preparing grounds both before and
after the construction of fuel station buildings, and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.20 Shops and enginehouses.
This account shall include the cost of buildings to be used as shops,
engine- houses, and storehouses for material for maintenance of
equipment; foundations, except those special to particular machines and
other apparatus; furniture and fixtures other than equipment chargeable
to Account 44. ''Shop machinery''; drainage, sewage, and water supply
systems; and plants for heat and light.
Air-compressor houses.
Ash pits and pockets.
Ash plants.
Bins for material.
Blacksmith shops.
Breakwaters for protection of buildings.
Buildings on piers.
Car sheds.
Car shops.
Carpenter shops.
Cinder pits.
Cinder pockets.
Drop pits.
Dry houses.
Electric-power distribution systems within buildings.
Enginehouses.
Fire-engine houses.
Footbridges (not public highways).
Foundries.
Gas-compressor houses.
Heating plants.
Hose houses.
Ice houses.
Laboratories.
Lighting plants.
Lumber sheds.
Machine shops.
Material and supply truck tracks.
Motor-crane tracks.
Offices, shop.
Oil houses.
Outhouses.
Paint shops.
Pipe lines, air, interior.
Pipe lines, car-heating.
Pipe lines, gas, interior.
Planing mills.
Platform, shop and yard.
Repair shops.
Sand houses.
Scale houses.
Scrap bins.
Sidewalks.
Stables.
Steam-distribution systems, interior.
Storehouses.
Tanks, gas.
Tanks, oil.
Test rooms.
Tin shops.
Tool houses.
Track scales.
Transfer tables.
Turntables.
Upholstering shops.
Warehouses.
Wash rooms.
Watch houses.
Note A: The cost of distinct power plant buildings for shop purposes
shall be included in Account 29. ''Power plant buildings.'' Cost of
distribution systems leading from such power plants to shops and
enginehouses shall be included in Account 32, ''Power distribution
systems.''
Note B: The cost of grading and preparing grounds both before and
after the construction of shop and enginehouse buildings, and the cost
of constructing sidewalks, driveways, and fences thereon, shall be
included in the cost of the buildings, as shall also the fees and
expenses of architects specially employed for designing or supervising
the construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
Note C: The cost of shop buildings devoted solely to the maintenance
of way and structures shall be included in Account 17, ''Roadway
buildings.''
18 CFR 103.21 Grain elevators.
(a) This account shall include the cost of structures for the
transfer, treatment, and storage of grain, including cost of conveyors,
machinery and fixtures.
(b) The buildings referred to in this account are not small storage
elevators at stations where grain is received for shipment, etc., but
large elevators in which grain is stored for various owners.
Note A: Small storage elevators at way stations are classed as
station buildings.
Note B: The cost of grading and preparing grounds both before and
after the construction of grain-elevator buildings, and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of the permanent water rights
shall also be included in the cost of the buildings.
18 CFR 103.22 Storage warehouses.
(a) This account shall include the cost of storage warehouses,
including machinery and fixtures therein.
(b) The buildings referred to in this account are not the ordinary
freight warehouses or stations where freight is received for shipment,
etc., but warehouses in which merchandise is stored and which the
railway companies or others operate commercially as storage warehouses.
Note: The cost of grading and preparing grounds both before and
after the construction of storage warehouse buildings, and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.23 Wharves and docks.
This account shall include the cost of wharves, docks, dry docks,
slips, float bridges, and other landings for vessels, including the cost
of necessary dredging and the cost of float-bridge machinery; also the
cost of piling, pile protection, cribs, cofferdams, walls, and other
necessary devices and apparatus for the operation or protection of
wharves and docks.
Bridge pontoons.
Bulkheads.
Caissons.
Cribwork.
Dry docks.
Ferry-bridge machinery.
Ferry bridges.
Ferry racks.
Ferry slips.
Jetties.
Jetty inclines.
Transfer-bridge machinery.
Transfer bridges.
Note A: The cost of coal and ore wharves and docks shall be included
in Account 24, ''Coal and ore wharves.''
Note B: The cost of the land on which wharves are built and cost of
riparian or water rights for wharves and docks shall be charged to
Account 2, ''Land for transportation purposes.''
Note C: The cost of buildings located on wharves shall be included
in the accounts appropriate for the class of building.
Note D: The cost of grading and preparing grounds both before and
after the construction of wharves (other than coal and ore wharves) and
the cost of constructing sidewalks, driveways, and fences thereon, shall
be included in the cost of the wharves but the cost of restoring the
grounds after addition and betterment work shall be included in the
appropriate operating expense accounts. The cost of permanent water
rights shall also be included in the cost of the wharves.
18 CFR 103.24 Coal and ore wharves.
This account shall include the cost of wharves and docks for the
transfer, treatment, blending, or storage of coal or ore, including the
cost of necessary dredging and of conveyors, machinery, and fixtures.
Note A: The structures referred to in this account do not include
small transfer or storage trestles or wharves at stations where coal is
stored or delivered, such trestles being classed as station buildings.
Note B: The cost of grading and preparing grounds both before and
after the construction of coal and ore wharves, and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the wharves, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the wharves, but the cost of restoring the grounds after
addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the wharves.
18 CFR 103.25 Gas producing plants.
This account shall include the cost of gas producing and gas
compressing plants, and the cost of machinery and other apparatus in
such plants.
Note: The cost of grading and preparing grounds both before and
after the construction of gas-plant buildings, and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.26 Telegraph and telephone lines.
This account shall include the cost of telegraph and telephone lines,
including terminal equipment.
Batteries.
Cables and wires, interior.
Conduits, interior.
Connecting wires.
Current-controlling instruments.
Electric generators and motors.
Electric meters.
Engines, stationary.
Fuses and mechanical protectors.
Rectifiers.
Rheostats.
Sending and receiving instruments.
Switchboards.
Testing outfits.
Transformers.
Aerial attachments.
Braces.
Brackets.
Cable boxes and appurtenances.
Cables and wires, aerial.
Conduits and appurtenances.
Cross arms.
Guy stubs.
Guy wires.
Insulators.
Poles.
Submarine cables and connections.
Telephone pole boxes.
Towers.
Underground cables and connections.
18 CFR 103.27 Signals and interlockers.
This account shall include the cost of interlocking and other signal
apparatus for governing the movement of trains, including towers and
other buildings in connection therewith.
Air compressors.
Batteries.
Boilers.
Distant signals.
Dynamos.
Engines, stationary.
Gates at crossings of other railways.
Home signals.
Interlocker buildings.
Interlocker machinery.
Interlocker mechanism.
Levers.
Rail bonds.
Railway-crossing signals.
Relays.
Semaphores.
Signal and switch levers.
Signal arms.
Signal blades.
Signal bridges.
Signal buildings.
Signal lamp brackets and connections.
Signal lamps.
Signal machinery.
Signal poles and foundations.
Signal pulleys and foundations.
Special appliances.
Station signals.
Train-order signals.
Wiring.
Note A: When signal or interlocking apparatus is located in a
station building, the entire cost of the building shall be included in
Account 16, ''Station and office buildings.''
Note B: The cost of grading and preparing grounds both before and
after the construction of signal and interlocker buildings, and the cost
of constructing sidewalks, driveways, and fences thereon, shall be
included in the cost of the buildings, as shall also the fees and
expenses of architects specially employed for designing or supervising
the construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.28 Power dams, canals, and pipe lines.
This account shall include the cost of all dams, canals, pipe lines,
and accessories devoted to the utilization of water power for the
operation of trains and cars, and to furnish power, heat, and light for
general purposes.
Aqueducts.
Bridges.
Fences.
Footbridges.
Forebays.
Gates.
Grids.
Inlet valves.
Penstocks.
Reservoirs.
Roadways.
Sluices.
Valves.
Viaducts.
Walls.
Water rights.
18 CFR 103.29 Power plant buildings.
This account shall include the cost of the buildings of power plants
erected to furnish power for the operation of trains and cars, and to
furnish power, heat, and light for stations, shops, or general purposes;
foundations, except those special to particular machines and other
apparatus; drainage, water, and sewer pipes and their connections;
fixtures, including wiring for lighting and heating and miscellaneous
furniture and fixtures.
Note A: The cost of power plant machinery and other apparatus shall
be included in Account 45, ''Power plant machinery.''
Note B: The cost of grading and preparing grounds, both before and
after the construction of power plant buildings, and the cost of
constructing sidewalks, driveways, and fences thereon shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.30 Power substation buildings.
This account shall include the cost of the buildings of power
substations (including storage-battery stations) erected to transform
power for the operation of trains and cars, and for heat, light and
general purposes; foundations, except those special to particular
machines and other apparatus; drainage, water, and sewer pipes and
their connections; fixtures, including wiring, for lighting and
heating; and miscellaneous furniture and fixtures.
Note A: The cost of substation machinery and other apparatus for
transforming or storing power in power substations shall be included in
Account 46, ''Power substation apparatus.''
Note B: The cost of grading and preparing grounds, both before and
after the construction of power substation buildings, and the cost of
constructing sidewalks, driveways, and fences thereon, shall be included
in the cost of the buildings, as shall also the fees and expenses of
architects specially employed for designing or supervising the
construction of the buildings, but the cost of restoring the grounds
after addition and betterment work shall be included in the appropriate
operating expense accounts. The cost of permanent water rights shall
also be included in the cost of the buildings.
18 CFR 103.31 Power transmission systems.
This account shall include the cost of high-tension transmission
systems, whether overhead, surface or underground, used for transferring
power from producing plants to a place where it is transformed for
propelling trains and cars, or for power, heat, light, and general
purposes.
Cables.
Cut-outs (not at power houses and substations).
Feed wires.
Guard wires.
Insulators and connections.
Span wires.
Switchboards (not at power houses and substations).
Transformers (not at power houses and substations).
Note: When the electric current generated or received is changed by
means of (a) rotary converters, (b) motor generator sets, or (c) static
transformers (substation apparatus), that portion of the line or outside
conductor system carrying current of other than the operating kind or
voltage shall be classed as transmission system. When electric current
is generated or received and used substantially unchanged in voltage and
kind, the line or outside conductor system, including any feeders,
trolley wires, booster circuits, and supplementary return, shall be
classed wholly as distribution system. Tie lines between generating
stations and substations shall follow the same rule as other lines.
18 CFR 103.32 Power distribution systems.
This account shall include the cost of distribution systems, whether
overhead, surface, or underground, for conveying low-tension electric
power from producing plants or transformer stations and for conveying
steam and compressed-air from producing plants to the place where used
for propelling trains and cars, or for power, heat, light, and general
purposes.
Compressed-air pipe lines.
Cut-outs (not at power houses and substations).
Feed wires.
Guard wires.
Insulators and connections.
Overhead trolley wires.
Rail bound plugs.
Rail bonds.
Rail-insulating devices.
Span wires.
Steam pipe lines.
Switchboards (not at power house and substations).
Third rail.
Third-rail braces.
Third-rail insulation and protection.
Third-rail supports.
Note A: The cost of track material such as insulated rail splices
used in connection with distribution systems shall be charged to Account
10, ''Other track material.''
Note B: The cost of the portions of distribution systems located
within shop buildings and station and office buildings shall be included
in the cost of the buildings. The cost of distribution systems in
plants used exclusively for operating signals and interlockers shall be
included in Account 27, ''Signals and interlockers.''
Note C: When the electric current generated or received is changed
by means of (1) rotary converters, (2) motor generator sets, or (3)
static transformers (substation apparatus), that portion of the line or
outside conductor system carrying current of other than the operating
kind or voltage shall be classed as transmission system. When the
electric current is generated or received and used substantially
unchanged in voltage and kind, the line or outside conductor system,
including any feeders, trolley wires, booster circuits, and
supplementary return, shall be classed wholly as distribution system.
Tie lines between generating station and substations shall follow the
same rule as other lines.
18 CFR 103.33 Power line poles and fixtures.
This account shall include the cost of poles, cross arms, insulating
pins, brackets, and other pole fixtures; braces and other supports for
holding the poles in position; and structures for supporting the
overhead electric construction.
18 CFR 103.34 Underground conduits.
This account shall include the cost of conduits required for
underground wires and cables of electric railway construction, including
manholes, sewer connections, sewer traps, and all details necessary for
the completion of the conduit system.
18 CFR 103.35 Miscellaneous structures.
This account shall include the cost of all permanent structures not
provided for elsewhere including all fixtures and furniture to equip
them for use.
18 CFR 103.36 Paving.
This account shall include the cost of paving about tracks in public
highways through which the carrier's tracks are laid.
Note: The cost of paving upon the carrier's lands, within the
grounds of buildings or other structures, shall be included in the
accounts provided for the cost of the structures. The cost of paving
upon the carrier's right of way at crossing shall be included in Account
15, ''Crossings and signs.''
18 CFR 103.37 Roadway machines.
This account shall include the cost of the initial outfit of roadway
machines provided for the maintenance of roadway and structures at the
time the road is opened for commercial traffic, and the cost of
additional roadway machines acquired subsequently.
Boilers, portable.
Cars, hand.
Cars, lever.
Cars, motor inspection.
Cars, push.
Cars (small), crane, for supply yards and general use.
Concrete mixers.
Ditching machines.
Dredging machines.
Engines, portable.
Grading outfits.
Hydraulic outfits.
Jacks, hydraulic.
Log loaders.
Pile drivers.
Plows, unloading.
Rail unloaders.
Rock crushers.
Steam rollers.
Timber trucks.
Velocipedes.
Note A: When an important addition and betterment project or the
construction of a new line necessitates the purchase of roadway machines
to be used exclusively thereon, the cost shall be included in the
accounts to which the cost of the work is charged. The amount realized
from any subsequent sale, or the appraised value of the machines
retained after the completion of the special work for which they were
purchased, shall be credited to the accounts charged with the cost
thereof. The appraised value of such machines retained shall be debited
to this account and thereafter considered as the cost of such property.
Note B: The cost of machines for the equipment of roadway shops
shall be included in Account 17, ''Roadway buildings,'' as provided for
therein.
Note C: The cost of roadway machines, such as pile drivers, log
loaders, hoist engines, and concrete mixers, when permanently mounted
for movement on the carrier's tracks, shall be included in Account 57,
''Work equipment.''
18 CFR 103.38 Roadway small tools.
This account shall include the cost of the initial outfit of roadway
and track small tools provided for the maintenance of way and structures
at the time the road is opened for commercial traffic; also the initial
outfit of such tools provided for the maintenance of extensions of such
road.
Adzes.
Anvils.
Augers.
Axes.
Ballast forks.
Bars, claw.
Bars, crow.
Bars, lining.
Bars, pinch.
Bars, raising.
Bars, tamping.
Braces and bits.
Brooms.
Brush hooks.
Cable stretchers.
Cables.
Cans, oil.
Cans, water.
Cant hooks.
Chains.
Chisels, track.
Chisels, wood.
Curbing hooks.
Dippers.
Drawing knives.
Drill bits.
Drills, portable.
Flags, signal.
Furnaces, portable.
Grindstones.
Hammers, napping.
Hammers, paving.
Hammers, spiking.
Handles for tools.
Hatchets.
Hoes.
Jack levers.
Jacks, ratchet.
Jacks, screw.
Jacks, track.
Kegs, water.
Ladders.
Lanterns and fixtures.
Lawn mowers.
Levels.
Lines for ditching.
Nippers.
Oilstones.
Padlocks.
Pails, water.
Paint brushes.
Picks, clay.
Picks, tamping.
Pike poles.
Post-hole diggers.
Post-hole tampers.
Punches.
Rail benders.
Rail tongs.
Rakes.
Rope.
Saws, crosscut.
Saws, hand.
Scrap boxes.
Scythes.
Shovels.
Sickles.
Sledges.
Spades.
Spike mauls.
Spike pullers.
Spot boards.
Squares.
Straightening machines.
Tape lines.
Thermometers for laying rail.
Tongs.
Tool boxes.
Torches.
Track gauges.
Track levels.
Vises.
Weed spuds.
Wheelbarrows.
Whetstones.
Wood mallets.
Wrenches, monkey.
Wrenches, track.
Note: The cost of roadway and track small tools of which no specific
record is kept shall be charged when acquired to an appropriate
materials and supplies account from which they shall be charged as
issued to the appropriate road and equipment, operating expense, or
other accounts. When such tools are used both for construction and
maintenance work the cost shall be equitably apportioned among the
accounts provided for the two classes of work.
18 CFR 103.39 Assessments for public improvements.
This account shall include the carrier's proportion of the cost of
constructing public improvements -- such as grading, sewering, curbing,
guttering, paving, and sidewalks -- and other public improvements,
including the cost of such improvements if made by the carrier's own
employees under Government requirements.
Note A: The cost of paving required by Government authority between
rails and adjacent to tracks laid through public highways shall be
included in Account 36, ''Paving.''
Note B: The carrier's proportion of the cost of maintaining such
public improvements shall be included in operating expenses.
18 CFR 103.40 Revenues and operating expenses during construction.
(a) This account shall include the cost of operating a piece of road
during the period before the regular operation of revenue trains,
including rent and repairs of equipment used in commercial service
during such period. It includes the cost of running construction trains
over such section of road when the cost of operating such trains cannot
properly be charged to any specific account.
(b) To this account shall be credited amounts collected for rents of
buildings and other properties and for the transportation of commercial
freight or of passengers on construction trains; also the net profits
from boarding and commissarial outfits, and other sources of operating
revenue.
(c) Carriers which wish to subdivide this account shall use
appropriate sub- accounts corresponding to accounts prescribed in the
operating revenue, operating expense, or income account classifications.
18 CFR 103.41 Cost of road purchased.
(a) This account shall include the cash cost of any road or portion
thereof purchased. Where the contract of purchase includes not only
road, but also equipment, securities, and other assets, the appraised
value of such equipment, securities, and other assets shall be deducted
from the total cash cost, and the remainder of the cash cost shall be
charged to this account. Where the consideration given for the property
purchased is other than cash, such consideration shall be valued on a
current cash basis. If the consideration includes the assumption of
liabilities, such liabilities shall be included in the determination of
the cost at their cash value at the time the contract is made.
(b) This account shall be used only as a clearing account in which
temporarily to carry the cost of road purchased until such time as a
plan for distributing such cost to the primary accounts appropriate for
the property is approved by the Commission.
Note A: The appraised value of any equipment thus acquired shall be
charged to the appropriate equipment accounts. The value, at time of
purchase, of any securities, or other assets acquired, shall be included
in the accounts appropriate for such assets. The par value of any
liabilities assumed shall be included in the appropriate liability
accounts, and the necessary adjustments between the cash value charged
to the property accounts and the par value shall be made in the
appropriate premium or discount account.
Note B: The carrier shall be prepared to furnish the Commission,
upon demand, a full report of the contract of acquisition of each road,
or portion thereof, purchased, and a statement showing in detail the
consideration given therefor. It should procure, in connection with the
acquisition of any such road and equipment, all existing records,
memoranda, and accounts in possession or control of the grantor,
relating to the construction and improvements of such road and
equipment, and shall preserve such records, memoranda, and accounts
until authorized by law to destroy or otherwise dispose of them. Where
the records, memoranda, and accounts are so intimately involved with
other records, memoranda, and accounts of the grantor as to make their
transfer impracticable or inadvisable, certified copies of them shall be
procured and retained by the grantee. The verity of the copies should
be certified by the custodian of the originals.
18 CFR 103.42 Reconstruction of road purchased.
When a road is purchased and the fixed improvements acquired are in
such a physical condition that it is necessary substantially to rebuild
the road in order to bring it up to the standard required by the
carrier, the cost of such rebuilding shall be charged to this account.
Note A: A comprehensive statement of the estimated amount necessary
to reconstruct a road in accordance with the above provision shall be
made to the Commission as soon as the estimate is made.
Note B: When the work of reconstruction of road purchased is
completed, the cost thereof shall be credited to this account and
charged to other primary accounts of this classification appropriate for
the expenditures made.
18 CFR 103.43 Other expenditures -- road.
This account shall include items which cannot properly be included in
any of the foregoing accounts as a part of the cost of any specific
work, such as the cost of transportation of men, materials, supplies,
and equipment over the carrier's own line; amounts paid for rent and
repairs of equipment and for injuries to persons incident to and in
connection with original road, road extensions, or additions and
betterments; and analogous items. When assignable, such expenditures
shall be included in the cost of the property in connection with which
the expenditure occurs.
Note: Rents paid for and repairs made to equipment used in
commercial operations during the period before the regular operation of
revenue trains shall be charged to Account 40, ''Revenues and operating
expenses during construction.''
18 CFR 103.44 Shop machinery.
This account shall include the cost of machinery and other apparatus
in shops and enginehouses, including the cost of special foundations and
installation, and cost of small hand tools necessary first to equip a
shop.
Air compressors.
Ash conveyers.
Belting.
Blowers.
Boilers for furnishing power.
Boring machines.
Cars, motor.
Cars, push.
Cranes.
Drill presses.
Drilling machines.
Drop tables.
Forges.
Framing machines.
Furnaces.
Grinding and polishing machines.
Hoists.
Hydraulic jacks.
Lathes.
Lifting magnets.
Metal chimneys.
Milling machines.
Motors.
Pipe cutting and threading machines.
Planers.
Pneumatic hammers.
Power equipment.
Punches.
Riveters.
Saws.
Shafting.
Shapers.
Slotters.
Stationary engines.
Steam hammers.
Vises.
Welding machines.
Woodworking machines.
Note A: The cost of power plant machinery and other apparatus for
shop purposes, when located in distinct buildings, shall be included in
Account 45, ''Power plant machinery.''
Note B: The cost of foundations other than those special to
particular machines and other apparatus shall be included in the cost of
the building, and not in this account.
18 CFR 103.45 Power plant machinery.
This account shall include the cost of machinery and other apparatus
for generating power in power plants used for the operation of trains
and cars, or to furnish power, heat, and light for stations, shops, or
general purposes, including the cost of special foundations and
installation.
Ammeters.
Batteries.
Belting.
Boiler-room appliances and tools.
Boilers and fittings.
Boosters.
Cables.
Circuit breakers.
Clutches.
Conductors.
Cranes.
Cut-outs.
Draft machinery.
Dynamos.
Economizers.
Electric-power distribution systems, interior.
Engine-room appliances and tools.
Feed-water heaters.
Furnaces.
Generators.
Globes.
Hangers.
Heating apparatus.
Hoists.
Insulators.
Lamps.
Lighting apparatus.
Lubricating devices.
Machinery and foundations.
Mechanical stokers.
Piping.
Poles.
Pumps.
Purifiers.
Rheostats.
Sewer connections.
Shafting.
Stationary engines.
Steam distribution systems.
Steam fittings.
Switchboards.
Tanks.
Transformers.
Turbines.
Voltmeters.
Water meters.
Water wheels.
Wires from generator or transformer to switchboard.
Note A: The cost of power machinery and other apparatus installed in
a shop as part of the shop equipment shall be included in Account 44,
''Shop machinery.''
Note B: The cost of power machinery and other apparatus installed in
stations and offices and used solely for station and office purposes
shall be included in Account 16, ''Station and office buildings.''
Note C: The cost of power machinery and other apparatus in plants
used solely for operating signals and interlockers shall be included in
Account 27, ''Signals and interlockers.''
Note D: The cost of foundations other than those special to
particular machines and other apparatus shall be included in the cost of
the building, and not in this account.
18 CFR 103.46 Power substation apparatus.
This account shall include the cost of machinery and other apparatus,
including the cost of special foundations and installation, for
transforming or storing power in power substations used for the
operation of trains and cars, and for power, heat, and light for
stations, shops, or general purposes.
Rotary converters.
Storage batteries.
Switchboards.
Transformers.
Note A: The cost of constructing machinery and other apparatus for
transforming or storing power shall be included in Account 45, ''Power
plant machinery,'' when such equipment is contained in a power plant.
Note B: The cost of foundations other than those special to
particular machines and other apparatus shall be included in the cost of
the building, and not in this account.
18 CFR 103.47 Unapplied construction material and supplies.
(a) This account shall include the cost of material and supplies
located at the point of use which have been purchased for projected new
roads and road extensions.
(b) The purpose of this account is to exclude from the current assets
the cost of supplies and unapplied material which are located for use on
projected new roads and road extensions, under the condition that the
material will not be used for other purposes.
Note A: Material and supplies designed for projected new roads and
road extensions which are carried in storehouses and store yards and
included in the general stock of an operating company shall be included
in balance-sheet account 716, ''Materials and supplies.''
Note B: The cost of unapplied materials and supplies on hand at the
completion of construction work shall be transferred to Balance-sheet
account 716, ''Materials and supplies.''
The several primary accounts included in this general account are
designed to show the cost of the several classes of equipment owned by
the carrier, or held under equipment trust agreements for purchase.
To the appropriate primary accounts in this general account shall be
charged the cost of all equipment, such as steam locomotives, electric
locomotives, passenger-train cars, freight-train cars, work equipment,
floating equipment, and the necessary appurtenances, furniture, and
fixtures first to equip for service, including the cost of inspection,
setting up, and trying out, and transportation over foreign lines; also
the cost of additions, such as headlights, mechanical stokers, power
brakes, vestibules, machinery for self-propulsion, heating and lighting
apparatus, and the like; and the excess cost of betterments, such as
improved appliances, parts, or appurtenances, over the cost at current
prices (as new) of the appliances, parts or appurtenances removed. The
cost of removing the old appliances and applying the improved shall be
charged to Operating Expenses.
The ledger value of each unit of equipment shall be credited to the
appropriate equipment account when it is retired from service. The
amount of this credit shall be concurrently charged as follows:
The amount of the balance in the balance-sheet accrued depreciation
account with respect to the equipment thus retired shall be charged to
that account; the salvage recovered shall be charged to the materials
and supplies account or elsewhere, according to the purpose for which
used; the amount of depreciation prior to July 1, 1907, not previously
written off or provided for, shall be charged to Profit and Loss; and
the remainder shall be charged to the appropriate operating expense
account for equipment retired. The cost of demolishing the equipment,
if demolished by or for the carrier, shall be charged to the appropriate
operating expense account for equipment retirements.
When the cost of the renewals to be made to any unit of equipment
will constitute the major portion of its value as renewed, the
equipment, when taken out of service, shall be considered as retired and
accounted for as provided in the preceding paragraph, and for the
purpose of this classification the renewed equipment shall be considered
an addition and the appraised cost thereof shall be included in the
account appropriate for the cost of the equipment. In no case shall the
charge for the renewed equipment exceed the cost (the current market
prices of labor and material) of new equipment of similar type, equal
capacity, and equal expectation of life in service, less a suitable
allowance on account of the secondhand parts remaining therein.
When equipment of one class is converted so as to be includible in
another class, the accounting shall be as provided in general
instructions, section 11.
When an important addition and betterment project or the construction
of new lines necessitates the purchase of equipment to be used
exclusively therein, the cost of such equipment shall be included in the
accounts representing the cost of the work, and no charge shall be made
to Operating Expenses for depreciation on such equipment while the cost
remains so charged. The amount realized from any subsequent sale, or
the appraised value of the equipment retained after the completion of
the special work for which it was purchased, shall be credited to the
accounts charged with its cost. The appraised value of such equipment
retained shall be debited to the appropriate primary account herein, and
thereafter, for the purposes of accounting, such appraised value shall
be considered as the cost of the equipment.
When secondhand equipment acquired is in such physical condition that
it is necessary to make extensive repairs to it to bring it up to the
standard required by the carrier the cost of such repairs shall be
included in the account appropriate for the cost of the equipment. A
comprehensive statement of the amount estimated to be necessary to
rebuild secondhand equipment in accordance with the above provision
shall be furnished to the Commission as soon as the estimate is made.
18 CFR 103.51 Steam locomotives.
This account shall include the cost of steam locomotives and tenders,
purchased or built by the carrier, and of appurtenances, furniture, and
fixtures necessary to equip them for service, including the cost of
inspection, setting up, and trying out after receipt from builders, and
transportation charges to the carrier's line.
Air-brake equipment and hose.
Arm rests.
Awnings.
Brake fixtures.
Cab cushions.
Cab lamps.
Clocks.
Coal boards.
Fire-extinguishing apparatus.
Gongs.
Head lamps.
Metallic packing.
Pneumatic sanding equipment.
Seat boxes.
Signal lamps.
Speed recorders.
Steam-gauge lamps.
Steam-heat equipment and hose.
Storm doors.
Tool boxes.
Train-signal equipment and hose.
18 CFR 103.52 Other locomotives.
This account shall include the cost of locomotives other than steam,
purchased or built by the carrier, and of appurtenances, furniture, and
fixtures necessary to equip them for service, including inspection,
setting up, and trying out after receipt from builders, and
transportation charges to the carrier's line.
Note: Cars with motor equipment are not to be classed as
locomotives.
18 CFR 103.53 Freight-train cars.
This account shall include the cost of freight-train cars of all
classes, including motor-driven cars, purchased or built by the carrier,
including all appurtenances, furniture, and fixtures necessary to equip
them for service, and the cost of inspection and transportation charges
to the carrier's line.
Ballast (commercial).
Beer.
Box.
Cabin.
Caboose.
Charcoal.
Coal.
Coke.
Dump (commercial).
Flat.
Fruit.
Furniture.
Gondola.
Gondola (hopper).
Gondola (long).
Gun truck.
Hay.
Lime.
Logging.
Oil tank.
Ore.
Platform.
Poling.
Poultry.
Produce.
Rack.
Refrigerator.
Stock.
Tank and water (when used as commercial cars).
Air-brake equipment, including hose.
Cooking equipment and utensils.
Cushions.
Heating equipment.
Ice boxes.
Lamps and fixtures.
Seats.
Speed recorders.
Train-signal equipment, including hose.
Water tanks.
Note: The cost of motor equipment of cars shall be included in
Account 55, ''Motor equipment of cars.''
18 CFR 103.54 Passenger-train cars.
This account shall include the cost of passenger-train cars of all
classes, including motor-driven cars, purchased or built by the carrier,
including all appurtenances, furniture, and fixtures necessary to equip
them for service, and cost of inspection and transportation charges to
the carrier's line.
Baggage.
Baggage-express.
Baggage-mail.
Baggage-mail-express.
Buffet.
Cafe.
Chair.
Club.
Colonist.
Dining.
Express.
Immigrant.
Library.
Mail.
Milk.
Observation.
Parlor.
Parlor-baggage.
Passenger.
Passenger-baggage.
Passenger-baggage-mail.
Postal.
Refrigerator-express.
Sleeping.
Smoking.
Tourist.
Air-brake equipment, including hose.
Bedding.
Chairs.
Coat hooks.
Curtains and fixtures.
Cushions.
Electric bells.
Floor coverings.
Heating equipment.
Ice boxes.
Ice tanks.
Kitchen equipment and utensils.
Lighting equipment.
Mail catchers.
Parcel racks.
Ranges and boilers.
Seats.
Speed recorders.
Steam-heat hose.
Table china.
Table glassware.
Table linen.
Table silver.
Toilet equipment.
Train-signal equipment, including hose.
Water tanks.
Note: The cost of motor equipment on cars shall be included in
Account 55, ''Motor equipment of cars.''
18 CFR 103.55 Motor equipment of cars.
This account shall include the cost of motor equipment of all cars,
including the wiring for such electric equipment.
Batteries, storage.
Circuit breakers.
Controllers.
Engines, internal-combustion.
Generators.
Lightning arresters.
Motors.
Overload switches.
Rheostats.
Switches.
Third-rail contact.
Trolley poles.
Trolleys.
18 CFR 103.56 Floating equipment.
This account shall include the cost of marine or floating equipment,
of all kinds except work equipment, purchased or built by the carrier,
including all appurtenances, furniture, and fixtures necessary to equip
it for service, and cost of inspection and transportation charges to the
carrier's line.
Barges.
Canal boats.
Car and other floats.
Ferryboats.
Lighters.
Power launches.
Power lighters.
Scows.
Steamboats.
Steamships.
Transfer boats.
Tugboats.
Anchors.
Axes.
Barometers.
Beds and bedding.
Binnacle lamps.
Blocks and tackle.
Boilers and foundations.
Cables.
Capstan bars.
Carpets.
Charts.
China, crockery, and glassware.
Chronometers.
Clocks.
Compasses.
Counters.
Desks.
Engines and foundations.
Fire buckets.
Fire extinguishers.
Floor coverings.
Flue cleaners.
Furniture.
Gangplanks.
Hatchets.
Heating equipment.
Hoisting equipment.
Hooks.
Keys.
Kitchen equipment.
Life preservers.
Lighting equipment.
Linen.
Lines.
Logs.
Machinery and foundations.
Masts.
Oil cans.
Pianos and other musical instruments.
Pumps.
Racks.
Railings.
Rakes.
Rigging.
Safes.
Sails.
Scales.
Seats, chairs, and cushions.
Shovels.
Slice bars and pokers.
Spyglasses.
Steam distribution systems.
Steering equipment.
Telescopes.
Ticket cases.
Tool boxes.
Tools, miscellaneous.
Tracks on car floats.
Ventilating equipment.
Wrenches.