§ 831k. — Transmission lines; construction or lease; sale of power over other than Government lines; rates when sold for resale at profit.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC831k]
TITLE 16--CONSERVATION
CHAPTER 12A--TENNESSEE VALLEY AUTHORITY
Sec. 831k. Transmission lines; construction or lease; sale of
power over other than Government lines; rates when sold for
resale at profit
In order to place the board upon a fair basis for making such
contracts and for receiving bids for the sale of such power, it is
expressly authorized, either from appropriations made by Congress or
from funds secured from the sale of such power, or from funds, secured
by the sale of bonds hereafter provided for, to construct, lease,
purchase, or authorize the construction of transmission lines within
transmission distance from the place where generated, and to
interconnect with other systems. The board is also authorized to lease
to any person, persons, or corporation the use of any transmission line
owned by the Government and operated by the board, but no such lease
shall be made that in any way interferes with the use of such
transmission line by the board: Provided, That if any State, county,
municipality, or other public or cooperative organization of citizens or
farmers, not organized or doing business for profit, but primarily for
the purpose of supplying electricity to its own citizens or members, or
any two or more of such municipalities or organizations, shall construct
or agree to construct and maintain a properly designed and built
transmission line to the Government reservation upon which is located a
Government generating plant, or to a main transmission line owned by the
Government or leased by the board and under the control of the board,
the board is authorized and directed to contract with such State,
county, municipality, or other organization, or two or more of them, for
the sale of electricity for a term not exceeding thirty years; and in
any such case the board shall give to such State, county, municipality,
or other organization ample time to fully comply with any local law now
in existence or hereafter enacted providing for the necessary legal
authority for such State, county, municipality, or other organization to
contract with the board for such power: Provided further, That all
contracts entered into between the Corporation and any municipality or
other political subdivision or cooperative organization shall provide
that the electric power shall be sold and distributed to the ultimate
consumer without discrimination as between consumers of the same class,
and such contract shall be voidable at the election of the board if a
discriminatory rate, rebate, or other special concession is made or
given to any consumer or user by the municipality or other political
subdivision or cooperative organization: And provided further, That as
to any surplus power not so sold as above provided to States, counties,
municipalities, or other said organizations, before the board shall sell
the same to any person or corporation engaged in the distribution and
resale of electricity for profit, it shall require said person or
corporation to agree that any resale of such electric power by said
person or corporation shall be made to the ultimate consumer of such
electric power at prices that shall not exceed a schedule fixed by the
board from time to time as reasonable, just, and fair; and in case of
any such sale, if an amount is charged the ultimate consumer which is in
excess of the price so deemed to be just, reasonable, and fair by the
board, the contract for such sale between the board and such distributor
of electricity shall be voidable at the election of the board: And
provided further, That the board is authorized to enter into contracts
with other power systems for the mutual exchange of unused excess power
upon suitable terms, for the conservation of stored water, and as an
emergency or break-down relief.
(May 18, 1933, ch. 32, Sec. 12, 48 Stat. 65.)
