§ 838l. — Bonneville Power Administration refinancing.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC838l]
TITLE 16--CONSERVATION
CHAPTER 12G--PACIFIC NORTHWEST FEDERAL TRANSMISSION SYSTEM
Sec. 838l. Bonneville Power Administration refinancing
(a) Definitions
For the purposes of this section--
(1) ``Administrator'' means the Administrator of the Bonneville
Power Administration;
(2) ``capital investment'' means a capitalized cost funded by
Federal appropriations that--
(A) is for a project, facility, or separable unit or feature
of a project or facility;
(B) is a cost for which the Administrator is required by law
to establish rates to repay to the United States Treasury
through the sale of electric power, transmission, or other
services;
(C) excludes a Federal irrigation investment; and
(D) excludes an investment financed by the current revenues
of the Administrator or by bonds issued and sold, or authorized
to be issued and sold, by the Administrator under section 838k
of this title;
(3) ``new capital investment'' means a capital investment for a
project, facility, or separable unit or feature of a project or
facility, placed in service after September 30, 1996;
(4) ``old capital investment'' means a capital investment the
capitalized cost of which--
(A) was incurred, but not repaid, before October 1, 1996,
and
(B) was for a project, facility, or separable unit or
feature of a project or facility, placed in service before
October 1, 1996;
(5) ``repayment date'' means the end of the period within which
the Administrator's rates are to assure the repayment of the
principal amount of a capital investment; and
(6) ``Treasury rate'' means--
(A) for an old capital investment, a rate determined by the
Secretary of the Treasury, taking into consideration prevailing
market yields, during the month preceding October 1, 1996, on
outstanding interest-bearing obligations of the United States
with periods to maturity comparable to the period between
October 1, 1996, and the repayment date for the old capital
investment; and
(B) for a new capital investment, a rate determined by the
Secretary of the Treasury, taking into consideration prevailing
market yields, during the month preceding the beginning of the
fiscal year in which the related project, facility, or separable
unit or feature is placed in service, on outstanding interest-
bearing obligations of the United States with periods to
maturity comparable to the period between the beginning of the
fiscal year and the repayment date for the new capital
investment.
(b) New principal amounts
(1) Principal amount
Effective October 1, 1996, an old capital investment has a new
principal amount that is the sum of--
(A) the present value of the old payment amounts for the old
capital investment, calculated using a discount rate equal to
the Treasury rate for the old capital investment; and
(B) an amount equal to $100,000,000 multiplied by a fraction
whose numerator is the principal amount of the old payment
amounts for the old capital investment and whose denominator is
the sum of the principal amounts of the old payment amounts for
all old capital investments.
(2) Determination
With the approval of the Secretary of the Treasury based solely
on consistency with this section, the Administrator shall determine
the new principal amounts under subsection (b) of this section and
the assignment of interest rates to the new principal amounts under
subsection (c) of this section.
(3) Old payment amounts
For the purposes of this subsection, ``old payment amounts''
means, for an old capital investment, the annual interest and
principal that the Administrator would have paid to the United
States Treasury from October 1, 1996, if this section had not been
enacted, assuming that--
(A) the principal were repaid--
(i) on the repayment date the Administrator assigned
before October 1, 1994, to the old capital investment, or
(ii) with respect to an old capital investment for which
the Administrator has not assigned a repayment date before
October 1, 1994, on a repayment date the Administrator shall
assign to the old capital investment in accordance with
paragraph 10(d)(1) of the version of Department of Energy
Order RA 6120.2 in effect on October 1, 1994; and
(B) interest were paid--
(i) at the interest rate the Administrator assigned
before October 1, 1994, to the old capital investment, or
(ii) with respect to an old capital investment for which
the Administrator has not assigned an interest rate before
October 1, 1994, at a rate determined by the Secretary of
the Treasury, taking into consideration prevailing market
yields, during the month preceding the beginning of the
fiscal year in which the related project, facility, or
separable unit or feature is placed in service, on
outstanding interest-bearing obligations of the United
States with periods to maturity comparable to the period
between the beginning of the fiscal year and the repayment
date for the old capital investment.
(c) Interest rate for new principal amounts
As of October 1, 1996, the unpaid balance on the new principal
amount established for an old capital investment under subsection (b) of
this section bears interest annually at the Treasury rate for the old
capital investment until the earlier of the date that the new principal
amount is repaid or the repayment date for the new principal amount.
(d) Repayment dates
As of October 1, 1996, the repayment date for the new principal
amount established for an old capital investment under subsection (b) of
this section is no earlier than the repayment date for the old capital
investment assumed in subsection (b)(3)(A) of this section.
(e) Prepayment limitations
During the period October 1, 1996, through September 30, 2001, the
total new principal amounts of old capital investments, as established
under subsection (b) of this section, that the Administrator may pay
before their respective repayment dates shall not exceed $100,000,000.
(f) Interest rates for new capital investments during construction
(1) New capital investment
The principal amount of a new capital investment includes
interest in each fiscal year of construction of the related project,
facility, or separable unit or feature at a rate equal to the one-
year rate for the fiscal year on the sum of--
(A) construction expenditures that were made from the date
construction commenced through the end of the fiscal year, and
(B) accrued interest during construction.
(2) Payment
The Administrator is not required to pay, during construction of
the project, facility, or separable unit or feature, the interest
calculated, accrued, and capitalized under subsection (f)(1) of this
section.
(3) One-year rate
For the purposes of this section, ``one-year rate'' for a fiscal
year means a rate determined by the Secretary of the Treasury,
taking into consideration prevailing market yields, during the month
preceding the beginning of the fiscal year, on outstanding interest-
bearing obligations of the United States with periods to maturity of
approximately one year.
(g) Interest rates for new capital investments
The unpaid balance on the principal amount of a new capital
investment bears interest at the Treasury rate for the new capital
investment from the date the related project, facility, or separable
unit or feature is placed in service until the earlier of the date the
new capital investment is repaid or the repayment date for the new
capital investment.
(h) Omitted
(i) Contract provisions
In each contract of the Administrator that provides for the
Administrator to sell electric power, transmission, or related services,
and that is in effect after September 30, 1996, the Administrator shall
offer to include, or as the case may be, shall offer to amend to
include, provisions specifying that after September 30, 1996--
(1) the Administrator shall establish rates and charges on the
basis that--
(A) the principal amount of an old capital investment shall
be no greater than the new principal amount established under
subsection (b) of this section;
(B) the interest rate applicable to the unpaid balance of
the new principal amount of an old capital investment shall be
no greater than the interest rate established under subsection
(c) of this section;
(C) any payment of principal of an old capital investment
shall reduce the outstanding principal balance of the old
capital investment in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid balance of the new
principal amount of an old capital investment shall be a credit
against the appropriate interest account in the amount of the
payment at the time the payment is tendered;
(2) apart from charges necessary to repay the new principal
amount of an old capital investment as established under subsection
(b) of this section and to pay the interest on the principal amount
under subsection (c) of this section, no amount may be charged for
return to the United States Treasury as repayment for or return on
an old capital investment, whether by way of rate, rent, lease
payment, assessment, user charge, or any other fee;
(3) amounts provided under section 1304 of title 31 shall be
available to pay, and shall be the sole source for payment of, a
judgment against or settlement by the Administrator or the United
States on a claim for a breach of the contract provisions required
by this Part;\1\ and
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\1\ So in original. Probably should be ``section;'' or ``section''.
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(4) the contract provisions specified in this Part \1\ do not--
(A) preclude the Administrator from recovering, through
rates or other means, any tax that is generally imposed on
electric utilities in the United States, or
(B) affect the Administrator's authority under applicable
law, including section 839e(g) of this title, to--
(i) allocate costs and benefits, including but not
limited to fish and wildlife costs, to rates or resources,
or
(ii) design rates.
(j) Savings provisions
(1) Repayment
This section does not affect the obligation of the Administrator
to repay the principal associated with each capital investment, and
to pay interest on the principal, only from the ``Administrator's
net proceeds,'' as defined in section 838k(b) of this title.
(2) Payment of capital investment
Except as provided in subsection (e) of this section, this
section does not affect the authority of the Administrator to pay
all or a portion of the principal amount associated with a capital
investment before the repayment date for the principal amount.
(Pub. L. 104-134, title III, Sec. 3201, Apr. 26, 1996, 110 Stat. 1321-
350.)
Codification
Section was enacted as part of the Omnibus Consolidated Recissions
and Appropriations Act of 1996, and not as part of the Federal Columbia
River Transmission System Act which comprises this chapter.
Section is comprised of section 3201 of Pub. L. 104-134. Subsec. (h)
of section 3201 of Pub. L. 104-134 amended section 6 of Pub. L. 103-436,
which is not classified to the Code.
