CHAPTER 12G —PACIFIC NORTHWEST FEDERAL TRANSMISSION SYSTEM
§838. Congressional findings; authority and duties of Secretary of Energy relating to Federal Columbia River Power System unaffected
(a) Congress finds that in order to enable the Secretary of Energy to carry out the policies of
(b) Other than as specifically provided herein, the present authority and duties of the Secretary of Energy relating to the Federal Columbia River Power System shall not be affected by this chapter. The authority and duties of the Administrator referred to herein are subject to the supervision and direction of the Secretary.
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References in Text
Short Title
Transfer of Functions
"Secretary of Energy" substituted in text for "Secretary of the Interior" pursuant to
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
§838a. Definitions
As used in this chapter—
(a) The term "Administrator" means the Administrator, Bonneville Power Administration.
(b) The term "electric power" means electric peaking capacity or electric energy, or both.
(c) The term "major transmission facilities" means transmission facilities intended to be used to provide services not previously provided by the Bonneville Power Administration with its own facilities.
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Transfer of Functions
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
§838b. Operation and maintenance of Federal transmission system; construction of improvements, betterments, additions and replacements; criteria
The Secretary of Energy, acting by and through the Administrator, shall operate and maintain the Federal transmission system within the Pacific Northwest and shall construct improvements, betterments, and additions to and replacements of such system within the Pacific Northwest as he determines are appropriate and required to:
(a) integrate and transmit the electric power from existing or additional Federal or non-Federal generating units;
(b) provide service to the Administrator's customers;
(c) provide interregional transmission facilities; or
(d) maintain the electrical stability and electrical reliability of the Federal system: Provided, however, That the Administrator shall not construct any transmission facilities outside the Pacific Northwest, excepting customer service facilities within any contiguous areas, not in excess of seventy-five airline miles from said region, which are a part of the service area of a distribution cooperative which has (i) no generating facilities, and (ii) a distribution system from which it serves both within and without said region, nor shall he commence construction of any major transmission facility within the Pacific Northwest, unless the expenditure of the funds for the initiation of such construction is specifically approved by Act of Congress.
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Transfer of Functions
"Secretary of Energy" substituted in text for "Secretary of the Interior" pursuant to
§838c. Acquisition by condemnation of transmission facilities
(a) Approval by Congress; exceptions
Unless specifically authorized by Act of Congress, the Administrator shall not expend funds made available under this chapter, other than funds specifically appropriated by the Congress for such purpose, to acquire any operating transmission facility by condemnation: Provided, That this provision shall not restrict the acquisition of the right to cross such a facility by condemnation.
(b) Notice of request for approval for construction or condemnation to contracting or interconnected entities in Pacific Northwest
At least sixty days prior to the time a request for approval or authority under this section or
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Transfer of Functions
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
§838d. Transmission of non-Federal power
The Administrator shall make available to all utilities on a fair and nondiscriminatory basis, any capacity in the Federal transmission system which he determines to be in excess of the capacity required to transmit electric power generated or acquired by the United States.
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Transfer of Functions
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
§838e. Acquisition of property
Subject to the provisions of
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Transfer of Functions
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
§838f. Marketing of Federal power; sales agent
The Administrator is hereby designated as the marketing agent for all electric power generated by Federal generating plants in the Pacific Northwest, constructed by, under construction by, or presently authorized for construction by the Bureau of Reclamation or the United States Corps of Engineers except electric power required for the operation of each Federal project and except electric power from the Green Springs project of the Bureau of Reclamation.
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Transfer of Functions
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
Power marketing functions of Bureau of Reclamation, including construction, operation, and maintenance of transmission lines and attendant facilities, transferred to Secretary of Energy by
§838g. Schedules of rates and charges for sale of Federal power and transmission of non-Federal power; confirmation and approval; criteria for modification and establishment
Schedules of rates and charges for the sale, including dispositions to Federal agencies, of all electric power made available to the Administrator pursuant to
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Transfer of Functions
"Secretary of Energy" substituted in text for "Secretary of the Interior" and "Federal Power Commission" pursuant to
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
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
§838h. Uniform schedules of rates and charges for sale of Federal power and transmission of non-Federal power; allocation of cost recovery
The said schedules of rates and charges for transmission, the said schedules of rates and charges for the sale of electric power, or both such schedules, may provide, among other things, for uniform rates or rates uniform throughout prescribed transmission areas. The recovery of the cost of the Federal transmission system shall be equitably allocated between Federal and non-Federal power utilizing such system.
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§838i. Bonneville Power Administration fund
(a) Establishment; composition; availability of transferred funds for expenditures
There is hereby established in the Treasury of the United States a Bonneville Power Administration fund (hereinafter referred to as the "fund"). The fund shall consist of (1) all receipts, collections, and recoveries of the Administrator in cash from all sources, including trust funds, (2) all proceeds derived from the sale of bonds by the Administrator, (3) any appropriations made by the Congress for the fund, and (4) the following funds which are hereby transferred to the Administrator: (i) all moneys in the special account in the Treasury established pursuant to Executive Order Numbered 8526 dated August 26, 1940, (ii) the unexpended balances in the continuing fund established by the provisions of
(b) Authorized purposes of expenditures
The Administrator may make expenditures from the fund, which shall have been included in his annual budget submitted to Congress, without further appropriation and without fiscal year limitation, but within such specific directives or limitations as may be included in appropriation acts, for any purpose necessary or appropriate to carry out the duties imposed upon the Administrator pursuant to law, including but not limited to—
(1) construction, acquisition, and replacement of (i) the transmission system, including facilities and structures appurtenant thereto, and (ii) additions, improvements, and betterments thereto (hereinafter in this chapter referred to as "transmission system");
(2) operation, maintenance, repair, and relocation, to the extent such relocation is not provided for under subsection (1) above, of the transmission system;
(3) electrical research, development, experimentation, test, and investigation related to construction, operation, and maintenance of transmission systems and facilities;
(4) marketing of electric power;
(5) transmission over facilities of others and rental, lease, or lease-purchase of facilities;
(6) purchase of electric power (including the entitlement of electric plant capability) (i) on a short-term basis to meet temporary deficiencies in electric power which the Administrator is obligated by contract to supply, or 1 (ii) if such purchase has been heretofore authorized or is made with funds expressly appropriated for such purchase by the Congress, (iii) if to be paid for with funds provided by other entities for such purpose under a trust or agency arrangement, or (iv) on a short term basis to meet the Administrator's obligations under section 4(h) of the Pacific Northwest Electric Power Planning and Conservation Act [
(7) defraying emergency expenses or insuring continuous operation;
(8) paying the interest on, premiums, discounts, and expenses, if any, in connection with the issuance of, and principal of all bonds issued under
(9) making such payments to the credit of the reclamation fund or other funds as are required by or pursuant to law to be made into such funds in connection with reclamation projects in the Pacific Northwest: Provided, That this clause shall not be construed as permitting the use of revenues for repayment of costs allocated to irrigation at any project except as otherwise expressly authorized by law;
(10) making payments to the credit of miscellaneous receipts of the Treasury for all unpaid costs required by or pursuant to law to be charged to and returned to the general fund of the Treasury for the repayment of the Federal investment in the Federal Columbia River Power System from electric power marketed by the Administrator;
(11) acquiring such goods and services, and paying dues and membership fees in such professional, utility, industry, and other societies, associations, and institutes, together with expenses related to such memberships, including but not limited to the acquisitions and payments set forth in the general provisions of the annual appropriations Act for the Department of Energy, as the Administrator determines to be necessary or appropriate in carrying out the purposes of this chapter; and
(12) making such payments, as shall be required to carry out the purposes and provisions of the Pacific Northwest Electric Power Planning and Conservation Act [
(c) Restriction on use of expenditures to authorized purposes; expenditures of moneys received in trust; applicability of provisions relating to control of Government corporations
Moneys heretofore or hereafter appropriated shall be used only for the purposes for which appropriated, and moneys received by the Administrator in trust shall be used only for carrying out such trust. The provisions of
(d) Audit of financial transactions by Comptroller General; report to Congress
Notwithstanding the provisions of
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References in Text
Executive Order Numbered 8526 dated August 26, 1940, referred to in subsec. (a), is not classified to the Code.
The Pacific Northwest Electric Power Planning and Conservation Act, referred to in subsec. (b)(12), is
Codification
In subsec. (c), "
In subsec. (d), "
Amendments
1980—Subsec. (b)(6)(iv).
Subsec. (b)(12).
Effective Date of 1980 Amendment
Amendment by
Transfer of Functions
"Secretary of Energy" substituted for "Secretary of the Interior" in subsec. (a) and "Department of Energy" substituted for "Department of Interior" in subsec. (b)(11) pursuant to
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
Bonneville Power Administration Fund: State clean energy programs
Authority To Incur Obligations in Excess of Borrowing Authority and Cash in Fund
1 So in original. The word "or" probably should not appear.
2 See References in Text note below.
§838j. Investment of excess moneys; deposit of moneys
(a) If the Administrator determines that moneys in the fund are in excess of current needs he may request the investment of such amounts as he deems advisable by the Secretary of the Treasury in direct, general obligations of, or obligations guaranteed as to both principal and interest by, the United States of America.
(b) With the approval of the Secretary of the Treasury, the Administrator may deposit moneys of the fund in any Federal Reserve bank or other depository for funds of the United States of America, or in such other banks and financial institutions and under such terms and conditions as the Administrator and the Secretary of the Treasury may mutually agree.
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§838k. Bonneville Power Administration bonds
(a) Issuance and sale; terms and conditions; interest rate; limitation on aggregate principal amount outstanding
The Administrator is authorized to issue and sell to the Secretary of the Treasury from time to time in the name and for and on behalf of the Bonneville Power Administration bonds, notes, and other evidences of indebtedness (in this chapter collectively referred to as "bonds") to assist in financing the construction, acquisition, and replacement of the transmission system, to implement the Administrator's authority pursuant to the Pacific Northwest Electric Power Planning and Conservation Act [
(b) Payment of principal, premiums, and interest from net proceeds; "net proceeds" defined
The principal of, premiums, if any, and interest on such bonds shall be payable solely from the Administrator's net proceeds as hereinafter defined. "Net proceeds" shall mean for the purposes of this section the remainder of the Administrator's gross receipts from all sources after first deducting trust funds and the costs listed in section 838i(b)(2) through (b)(7), (b)(11), and (b)(12) of this title, and shall include reserve or other funds created from such receipts.
(c) Purchase and sale by Secretary of the Treasury; public debt transactions
The Secretary of the Treasury shall purchase forthwith any bonds issued by the Administrator under this chapter and for that purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under
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References in Text
The Pacific Northwest Electric Power Planning and Conservation Act, referred to in subsec. (a), is
Codification
In subsec. (c), "
Amendments
1980—Subsec. (a).
Subsec. (b).
Effective Date of 1980 Amendment
Amendment by
Transfer of Functions
Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by
§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
(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) and the assignment of interest rates to the new principal amounts under subsection (c).
(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) 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) is no earlier than the repayment date for the old capital investment assumed in subsection (b)(3)(A).
(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), 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).
(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);
(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);
(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) and to pay the interest on the principal amount under subsection (c), 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
(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
(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
(2) Payment of capital investment
Except as provided in subsection (e), 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.
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Codification
Section was enacted as part of the Omnibus Consolidated Rescissions 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
1 So in original. Probably should be "section;" or "section".