§ 832d. — Contracts for sale of electricity.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC832d]
TITLE 16--CONSERVATION
CHAPTER 12B--BONNEVILLE PROJECT
Sec. 832d. Contracts for sale of electricity
(a) Authorization of Administrator; contents of contracts
Subject to the provisions of this chapter and to such rate schedules
as the Secretary of Energy may approve, as provided in this chapter, the
administrator shall negotiate and enter into contracts for the sale at
wholesale of electric energy, either for resale or direct consumption,
to public bodies and cooperatives and to private agencies and persons
and for the disposition of electric energy to Federal agencies.
Contracts for the sale of electric energy to any private person or
agency other than a privately owned public utility engaged in selling
electric energy to the general public, shall contain a provision
forbidding such private purchaser to resell any of such electric energy
so purchased to any private utility or agency engaged in the sale of
electric energy to the general public, and requiring the immediate
canceling of such contract of sale in the event of violation of such
provision. Contracts entered into under this subsection shall be binding
in accordance with the terms thereof and shall be effective for such
period or periods, including renewals or extensions, as may be provided
therein, not exceeding in the aggregate twenty years from the respective
dates of the making of such contracts. Contracts entered into under this
subsection shall contain (1) such provisions as the administrator and
purchaser agree upon for the equitable adjustment of rates at
appropriate intervals, not less frequently than once in every five
years, and (2) in the case of a contract with any purchaser engaged in
the business of selling electric energy to the general public, the
contract shall provide that the administrator may cancel such contract
upon five years' notice in writing if in the judgment of the
administrator any part of the electric energy purchased under such
contract is likely to be needed to satisfy the requirements of the said
public bodies or cooperatives referred to in this chapter, and that such
cancelation may be with respect to all or any part of the electric
energy so purchased under said contract to the end that the preferential
rights and priorities accorded public bodies and cooperatives under this
chapter shall at all times be preserved. Contracts entered into with any
utility engaged in the sale of electric energy to the general public
shall contain such terms and conditions, including among other things
stipulations concerning resale and resale rates by any such utility, as
the administrator may deem necessary, desirable or appropriate to
effectuate the purposes of this chapter and to insure that resale by
such utility to the ultimate consumer shall be at rates which are
reasonable and nondiscriminatory. Such contracts shall also require such
utility to keep on file in the office of the administrator a schedule of
all its rates and charges to the public for electric energy and such
alterations and changes therein as may be put into effect by such
utility.
(b) Exchange of excess power
The administrator is authorized to enter into contracts with public
or private power systems for the mutual exchange of unused excess power
upon suitable exchange terms for the purpose of economical operation or
of providing emergency or break-down relief.
(Aug. 20, 1937, ch. 720, Sec. 5, 50 Stat. 734; Oct. 23, 1945, ch. 433,
Sec. 2, 59 Stat. 546; Pub. L. 95-91, title III, Sec. 301(b), Aug. 4,
1977, 91 Stat. 578.)
Amendments
1945--Subsec. (a). Act Oct. 23, 1945, inserted ``and for the
disposition of electric energy to Federal agencies'' in first sentence.
Transfer of Functions
``Secretary of Energy'' substituted for ``Federal Power Commission''
in subsec. (a) pursuant to Pub. L. 95-91, Sec. 301(b), which is
classified to section 7151(b) of Title 42, The Public Health and
Welfare.
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, with Bonneville Power Administration to
be preserved as a distinct organizational entity within Department of
Energy and headed by an Administrator.
Federal Power Commission terminated and its functions, personnel,
property, funds, etc., transferred to Secretary of Energy (except for
certain functions transferred to Federal Energy Regulatory Commission)
by sections 7151(b), 7171(a), 7172(a), 7291, and 7293 of Title 42.
Executive and administrative functions of Federal Power Commission,
with certain reservations, transferred to Chairman of such Commission,
with authority vested in him to authorize their performance by any
officer, employee, or administrative unit under his jurisdiction, by
Reorg. Plan No. 9 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
64 Stat. 1265, set out as a note under section 792 of this title.
For transfer of functions of other officers, employees, and agencies
of Department of the Interior, with certain exceptions, to Secretary of
the Interior, with power to delegate, see Reorg. Plan No. 3 of 1950,
Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1262, set out in
the Appendix to Title 5, Government Organization and Employees.
Section Referred to in Other Sections
This section is referred to in sections 832m, 839c of this title.
