§ 832c. — Distribution of electricity; preference to public bodies and cooperatives.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC832c]
TITLE 16--CONSERVATION
CHAPTER 12B--BONNEVILLE PROJECT
Sec. 832c. Distribution of electricity; preference to public
bodies and cooperatives
(a) General provisions
In order to insure that the facilities for the generation of
electric energy at the Bonneville project shall be operated for the
benefit of the general public, and particularly of domestic and rural
consumers, the administrator shall at all times, in disposing of
electric energy generated at said project, give preference and priority
to public bodies and cooperatives.
(b) Prior to January 1, 1942; subsequent thereto
To preserve and protect the preferential rights and priorities of
public bodies and cooperatives as provided in subsection (a) of this
section and to effectuate the intent and purpose of this chapter that at
all times up to January 1, 1942, there shall be available for sale to
public bodies and cooperatives not less than 50 per centum of the
electric energy produced at the Bonneville project, it shall be the duty
of the administrator in making contracts for the sale of such energy to
so arrange such contracts as to make such 50 per centum of such energy
available to said public bodies and cooperatives until January 1, 1942:
Provided, That the electric energy so reserved for but not actually
purchased by and delivered to such public bodies and cooperatives prior
to January 1, 1942, may be disposed of temporarily so long as such
temporary disposition will not interfere with the purchase by and
delivery to such public bodies and cooperatives at any time prior to
January 1, 1942: Provided further, That nothing herein contained shall
be construed to limit or impair the preferential and priority rights of
such public bodies or cooperatives after January 1, 1942; and in the
event that after such date there shall be conflicting or competing
applications for an allocation of electric energy between any public
body or cooperative on the one hand and a private agency of any
character on the other, the application of such public body or
cooperative shall be granted.
(c) Allowance of time for financing
An application by any public body or cooperative for an allocation
of electric energy shall not be denied, or another application competing
or in conflict therewith be granted, to any private corporation,
company, agency, or person, on the ground that any proposed bond or
other security issue of any such public body or cooperative, the sale of
which is necessary to enable such prospective purchaser to enter into
the public business of selling and distributing the electric energy
proposed to be purchased, has not been authorized or marketed, until
after a reasonable time, to be determined by the administrator, has been
afforded such public body or cooperative to have such bond or other
security issue authorized or marketed.
(d) Congressional declaration of policy; allowance of time for creation
and organization
It is declared to be the policy of the Congress, as expressed in
this chapter, to preserve the said preferential status of the public
bodies and cooperatives herein referred to, and to give to the people of
the States within economic transmission distance of the Bonneville
project reasonable opportunity and time to hold any election or
elections or take any action necessary to create such public bodies and
cooperatives as the laws of such States authorize and permit, and to
afford such public bodies or cooperatives reasonable time and
opportunity to take any action necessary to authorize the issuance of
bonds or to arrange other financing necessary to construct or acquire
necessary and desirable electric distribution facilities, and in all
other respects legally to become qualified purchasers and distributors
of electric energy available under this chapter.
(Aug. 20, 1937, ch. 720, Sec. 4, 50 Stat. 733; Mar. 6, 1940, ch. 47,
Sec. 3, 54 Stat. 47.)
Amendments
1940--Subsec. (b). Act Mar. 6, 1940, substituted ``January 1, 1942''
for ``January 1, 1941'' wherever appearing.
Transfer of Functions
Functions of Secretary of the Interior with respect to Bonneville
Power Administration transferred to Secretary of Energy by section
7152(a)(1)(D), (2) of Title 42, The Public Health and Welfare, with
Bonneville Power Administration to be preserved as a distinct
organizational entity within Department of Energy and headed by an
Administrator.
Section Referred to in Other Sections
This section is referred to in section 839c of this title.
