839c. Sale of power
839c(a). Preferences and priorities
All power sales under this chapter shall be subject at all times to the
preference and priority provisions of the Bonneville Project Act of 1937 (16
U.S.C. 832 and following) and, in particular, sections 4 and 5 thereof [16
U.S.C. 832c and 832d]. Such sales shall be at rates established pursuant to
section 839e of this title. [Northwest Power Act, §5(a), 94 Stat. 2712.]
839c(b). Sales to public bodies, cooperatives, and
Federal agency customers
839c(b)(1). Whenever requested, the Administrator shall
offer to sell to each requesting public body and cooperative entitled to
preference and priority under the Bonneville Project Act of 1937 [16 U.S.C.
832 et seq.] and to each requesting investor-owned utility electric power to
meet the firm power load of such public body, cooperative or investor-owned
utility in the Region to the extent that such firm power load exceeds--
839c(b)(1)(A). the capability of such entity's firm
peaking and energy resources used in the year prior to December 5, 1980, to
serve its firm load in the region, and [Northwest Power Act, §5(b)(1)(A), 94
Stat. 2712.]
839c(b)(1)(B). such other resources as such entity
determines, pursuant to contracts under this chapter, will be used to serve
its firm load in the region. [Northwest Power Act, §5(b)(1)(B), 94 Stat.
2712.]
839c(b)(1)[cont.]. In determining the resources which are used to serve a
firm load, for purposes of subparagraphs (A) and (B), any resources used to
serve a firm load under such subparagraphs shall be treated as continuing to
be so used, unless such use is discontinued with the consent of the
Administrator, or unless such use is discontinued because of obsolescence,
retirement, loss of resource, or loss of contract rights. [Northwest Power
Act, §5(b)(1), 94 Stat. 2712.]
839c(b)(2). Contracts with investor-owned utilities
shall provide that the Administrator may reduce his obligations under such
contracts in accordance with section 5(a) of the Bonneville Project Act of
1937 [16 U.S.C. 832d(a)]. [Northwest Power Act, §5(b)(2), 94 Stat. 2712.]
839c(b)(3). In addition to his authorities to sell
electric power under paragraph (1), the Administrator is also authorized to
sell electric power to Federal agencies in the region. [Northwest Power Act,
§5(b)(3), 94 Stat. 2712.]
839c(b)(4). Sales under this subsection shall be made
only if the public body, cooperative, Federal agency or investor-owned
utility complies with the Administrator's standards for service in effect on
December 5, 1980, or as subsequently revised. [Northwest Power Act,
§5(b)(4), 94 Stat. 2712.]
839c(b)(5). The Administrator shall include in
contracts executed in accordance with this subsection provisions that enable
the Administrator to restrict his contractual obligations to meet the loads
referred to in this subsection in the future if the Administrator
determines, after a reasonable period of experience under this chapter, that
the Administrator cannot be assured on a planning basis of acquiring
sufficient resources to meet such loads during a specified period of
insufficiency. Any such contract with a public body, cooperative, or Federal
agency shall specify a reasonable minimum period between a notice of
restriction and the earliest date such restriction may be imposed.
[Northwest Power Act, §5(b)(5), 94 Stat. 2712-3.]
839c(b)(6). Contracts executed in accordance with this
subsection with public body, cooperative, and Federal agency customers
shall--
839c(b)(6)(A). provide that the restriction referred
to in paragraph (5) shall not be applicable to any such customers until the
operating year in which the total of such customers' firm loads to be served
by the Administrator equals or exceeds the firm capability of the Federal
base system resources; [Northwest Power Act, §5(b)(6)(A), 94 Stat. 2713.]
839c(b)(6)(B). not permit restrictions which would
reduce the total contractual entitlement of such customers to an amount less
than the firm capability of the Federal base system resources; and
[Northwest Power Act, §5(b)(6)(B), 94 Stat. 2713.]
839c(b)(6)(C). contain a formula for determining
annually, on a uniform basis, each such customer's contractual entitlement
to firm power during such a period of restriction, which formula shall not
consider customer resources other than those the customer has determined, as
of December 5, 1980, to be used to serve its own firm loads. [Northwest
Power Act, §5(b)(6)(C), 94 Stat. 2713.]
839c(b)(6)[cont.]. The formula referred to in subparagraph (C) shall
obligate the Administrator to provide on an annual basis only firm power
needed to serve the portion of such customer's firm load in excess of the
capability of such customer's own firm resources determined by such customer
under paragraph (1) of this subsection to be used to serve its firm load.
[Northwest Power Act, §5(b)(6), 94 Stat. 2713.]
839c(c). Purchase and exchange sales
839c(c)(1). Whenever a Pacific Northwest electric
utility offers to sell electric power to the Administrator at the average
system cost of that utility's resources in each year, the Administrator
shall acquire by purchase such power and shall offer, in exchange, to sell
an equivalent amount of electric power to such utility for resale to that
utility's residential users within the region. [Northwest Power Act,
§5(c)(1), 94 Stat. 2713.]
839c(c)(2). The purchase and exchange sale referred to
in paragraph (1) of this subsection with any electric utility shall be
limited to an amount not in excess of 50 per centum of such utility's
Regional residential load in the year beginning July 1, 1980, such 50 per
centum limit increasing in equal annual increments to 100 per centum of such
load in the year beginning July 1, 1985, and each year thereafter.
[Northwest Power Act, §5(c)(2), 94 Stat. 2713.]
839c(c)(3). The cost benefits, as specified in
contracts with the Administrator, of any purchase and exchange sale referred
to in paragraph (1) of this subsection which are attributable to any
electric utility's residential load within a State shall be passed through
directly to such utility's residential loads within such State, except that
a State which lies partially within and partially without the region may
require that such cost benefits be distributed among all of the utility's
residential loads in that State. [Northwest Power Act, §5(c)(3), 94 Stat.
2713.]
839c(c)(4). An electric utility may terminate, upon
reasonable terms and conditions agreed to by the Administrator and such
utility prior to such termination, its purchase and sale under this
subsection if the supplemental rate charge provided for in section
839e(b)(3) of this title is applied and the cost of electric power sold to
such utility under this subsection exceeds, after application of such rate
charge, the average system cost of power sold by such utility to the
Administrator under this subsection. [Northwest Power Act, §5(c)(4), 94
Stat. 2713.]
839c(c)(5). Subject to the provisions of sections 839b
and 839d of this title, in lieu of purchasing any amount of electric power
offered by a utility under paragraph (1) of this subsection, the
Administrator may acquire an equivalent amount of electric power from other
sources to replace power sold to such utility as part of an exchange sale if
the cost of such acquisition is less than the cost of purchasing the
electric power offered by such utility. [Northwest Power Act, §5(c)(5), 94
Stat. 2714.]
839c(c)(6). Exchange sales to a utility pursuant to
this subsection shall not be restricted below the amounts of electric power
acquired by the Administrator from, or on behalf of, such utility pursuant
to this subsection. [Northwest Power Act, §5(c)(6), 94 Stat. 2714.]
839c(c)(7). The "average system cost" for electric
power sold to the Administrator under this subsection shall be determined by
the Administrator on the basis of a methodology developed for this purpose
in consultation with the Council, the Administrator's customers, and
appropriate State regulatory bodies in the region. Such methodology shall be
subject to review and approval by the Federal Energy Regulatory Commission.
Such average system cost shall not include--
839c(c)(7)(A). the cost of additional resources in an
amount sufficient to serve any new large single load of the utility;
[Northwest Power Act, §5(c)(7)(A), 94 Stat. 2714.]
839c(c)(7)(B). the cost of additional resources in an
amount sufficient to meet any additional load outside the region occurring
after December 5, 1980; and [Northwest Power Act, §5(c)(7)(B), 94 Stat.
2714.]
839c(c)(7)(C). any costs of any generating facility
which is terminated prior to initial commercial operation. [Northwest Power
Act, §5(c)(7)(C), 94 Stat. 2714.]
839c(d). Sales to existing direct service industrial
customers
839c(d)(1)(A). The Administrator is authorized to sell
in accordance with this subsection electric power to existing direct service
industrial customers. Such sales shall provide a portion of the
Administrator's reserves for firm power loads within the region. [Northwest
Power Act, §5(d)(1)(A), 94 Stat. 2714.]
839c(d)(1)(B). After December 5, 1980, the
Administrator shall offer in accordance with subsection (g) of this section
to each existing direct service industrial customer an initial long term
contract that provides such customer an amount of power equivalent to that
to which such customer is entitled under its contract dated January or April
1975 providing for the sale of "industrial firm power." [Northwest Power
Act, §5(d)(1)(B), 94 Stat. 2714.]
839c(d)(2). The Administrator shall not sell electric
power, including reserves, directly to new direct service industrial
customers. [Northwest Power Act, §5(d)(2), 94 Stat. 2714.]
839c(d)(3). The Administrator shall not sell amounts of
electric power, including reserves, to existing direct service industrial
customers in excess of the amount permitted under paragraph (1) unless the
Administrator determines, after a plan has been adopted pursuant to section
839b of this title, that such proposed sale is consistent with the plan and
that--
839c(d)(3)(A). additional power system reserves are
required for the region's firm loads, [Northwest Power Act, §5(d)(3)(A), 94
Stat. 2714.]
839c(d)(3)(B). the proposed sale would provide a
cost-effective method of supplying such reserves, [Northwest Power Act,
§5(d)(3)(B), 94 Stat. 2714.]
839c(d)(3)(C). such loads or loads of similar
character cannot provide equivalent operating or planning benefits to the
region if served by an electric utility under contractual arrangements
providing reserves, and [Northwest Power Act, §5(d)(3)(C), 94 Stat. 2714.]
839c(d)(3)(D). the Administrator has or can acquire
sufficient electric power to serve such loads, and [Northwest Power Act,
§5(d)(3)(D), 94 Stat. 2714.]
839c(d)(3) [cont.]. unless the Council has determined such sale is
consistent with the plan. After such determination by the Administrator and
by the Council, the Administrator is authorized to offer to existing direct
service industrial customers power in such amounts in excess of the amount
permitted under paragraph (1) of this subsection as the Administrator
determines to be necessary to provide additional power system reserves to
meet the region's firm loads. [Northwest Power Act, §5(d)(3), 94 Stat.
2714-5.]
839c(d)(4)(A). As used in this section, the term
"existing direct service industrial customer" means any direct service
industrial customer of the Administrator which has a contract for the
purchase of electric power from the Administrator on December 5, 1980.
[Northwest Power Act, §5(d)(4)(A), 94 Stat. 2715.]
839c(d)(4)(B). The term "new direct service industrial
customer" means any industrial entity other than an existing direct service
industrial customer. [Northwest Power Act, §5(d)(4)(B), 94 Stat. 2715.]
839c(d)(4)(C)(i). Where a new contract is offered in
accordance with subsection (g) of this section to any existing direct
service industrial customer which has not received electric power prior to
December 5, 1980, from the Administrator pursuant to a contract with the
Administrator existing on December 5, 1980, electric power delivered under
such new contract shall be conditioned on the Administrator reasonably
acquiring, in accordance with this chapter and within such estimated period
of time (as specified in the contract) as he deems reasonable, sufficient
resources to meet, on a planning basis, the load requirement of such
customer. Such contract shall also provide that the obligation of the
Administrator to acquire such resources to meet such load requirement shall,
except as provided in clause (ii) of this subparagraph, apply only to such
customer and shall not be sold or exchanged by such customer to any other
person. [Northwest Power Act, §5(d)(4)(C)(i), 94 Stat. 2715.]
839c(d)(4)(C)(ii). Rights under a contract described
in clause (i) of this subparagraph may be transferred by an existing direct
service industrial customer referred to in clause (i) to a successor in
interest in connection with a reorganization or other transfer of all major
assets of such customer. Following such a transfer, such successor in
interest (or any other subsequent successor in interest) may also transfer
rights under such a contract only in connection with a reorganization or
other transfer of all assets of such successor in interest. [Northwest Power
Act, §5(d)(4)(C)(ii), 94 Stat. 2715.]
839c(d)(4)(C)(iii). The limitations of clause (i) of
this subparagraph shall not apply to any customer referred to in clause (i)
whenever the Administrator determines that such customer is receiving
electric power pursuant to a contract referred to in such clause (ii).
[Northwest Power Act, §5(d)(4)(C)(iii), 94 Stat. 2715.]
839c(e). Contractual entitlements to firm power
839c(e)(1). The contractual entitlement to firm power
of any customer from whom, or on whose behalf, the Administrator has
acquired electric power pursuant to section 839d of this title may not be
restricted below the amount of electric power so acquired from, or on behalf
of, such customer. If in any year such customer's requirements are less than
such entitlement, any excess of such entitlement shall be first made
available to increase the entitlement of other customers of the same class
before being available for the entitlement of other customers. For purposes
of this paragraph, the following entities shall each constitute a class:
839c(e)(1)(A). public bodies and cooperatives;
[Northwest Power Act, §5(e)(1)(A), 94 Stat. 2715.]
839c(e)(1)(B). Federal agencies; [Northwest Power Act,
§5(e)(1)(B), 94 Stat. 2715.]
839c(e)(1)(C). direct service industrial; and
[Northwest Power Act, §5(e)(1)(C), 94 Stat. 2715.]
839c(e)(1)(D). investor owned utilities. [Northwest
Power Act, §5(e)(1)(D), 94 Stat. 2715.]
839c(e)(2). Any contractual entitlement to firm power
which is based on electric power acquired from, or on behalf of, a customer
pursuant to section 839d of this title shall be in addition to any other
contractual entitlement to firm power not subject to restriction that such
customer may have under this section. For the purposes of this subsection,
references to amounts of power acquired by the Administrator pursuant to
section 839d of this title shall be deemed to mean the amounts specified in
the resource acquisition contracts exclusive of any amounts recognized in
such contracts as replacement for Federal base system resources. [Northwest
Power Act, §5(e)(2), 94 Stat. 2715-6.]
839c(e)(3). The Administrator shall, consistent with
the provisions of this chapter, insure that any restrictions upon any
particular customer class made pursuant to this subsection and subsection
(b) of this section are distributed equitably throughout the region.
[Northwest Power Act, §5(e)(3), 94 Stat. 2716.]
839c(f). Surplus power
The Administrator is authorized to sell, or otherwise dispose of,
electric power, including power acquired pursuant to this and other Acts,
that is surplus to his obligations incurred pursuant to subsections (b),
(c), and (d) of this section in accordance with this and other Acts
applicable to the Administrator, including the Bonneville Project Act of
1937 (16 U.S.C. 832 and following), the Federal Columbia River Transmission
System Act (16 U.S.C. 838 and following), and the Act of August 31, 1964 (16
U.S.C. 837-837h). [Northwest Power Act, §5(f), 94 Stat. 2716.]
839c(g). Long-term contracts
839c(g)(1). As soon as practicable within 9 months
after December 5, 1980, the Administrator shall commence necessary
negotiations for, and offer, initial long-term contracts (within the
limitations of the third sentence of section 5(a) of the Bonneville Project
Act [16 U.S.C. 832(a)]) simultaneously to--
839c(g)(1)(A). existing public body and cooperative
customers and investor-owned utility customers under subsection (b) of this
section; [Northwest Power Act, §5(g)(1)(A), 94 Stat. 2716.]
839c(g)(1)(B). Federal agency customers under
subsection (b) of this section; [Northwest Power Act, §5(g)(1)(B), 94 Stat.
2716.]
839c(g)(1)(C). electric utility customers under
subsection (c) of this section; and [Northwest Power Act, §5(g)(1)(C), 94
Stat. 2716.]
839c(g)(1)(D). direct service industrial customers
under subsection (d)(1) of this section. [Northwest Power Act, §5(g)(1)(D),
94 Stat. 2716.]
839c(g)(2). Each customer offered a contract pursuant
to this subsection shall have one year from the date of such offer to accept
such contract. Such contract shall be effective as provided in this
subsection. [Northwest Power Act, §5(g)(2), 94 Stat. 2716.]
839c(g)(3). An initial contract with a public body,
cooperative or investor-owned electric utility customer or a Federal agency
customer pursuant to subsection (b) of this section shall be effective on
the date executed by such customer, unless another effective date is
otherwise agreed to by the Administrator and the customer. [Northwest Power
Act, §5(g)(3), 94 Stat. 2716.]
839c(g)(4). An initial contract with an electric
utility customer pursuant to subsection (c) of this section shall be
effective on the date executed by such customer, but no earlier than the
first day of the tenth month after December 5, 1980. [Northwest Power Act,
§5(g)(4), 94 Stat. 2716.]
839c(g)(5). An initial contract with a direct service
industrial customer pursuant to subsection (d)(1) of this section, shall be
effective on the date agreed upon by the Administrator and such customer,
but no later than the first day of the tenth month after December 5, 1980.
When such contract is executed, it may for rate purposes be given
retroactive effect to such first day. [Northwest Power Act, §5(g)(5), 94
Stat. 2716.]
839c(g)(6). Initial contracts offered public body,
cooperative and Federal agency customers in accordance with this subsection
shall provide that during a period of insufficiency declared in accordance
with subsection (b) of this section each customer's contractual entitlement
shall, to the extent of its requirements on the Administrator, be no less
than the amount of firm power received from the Administrator in the year
immediately preceding the period of insufficiency. [Northwest Power Act,
§5(g)(6), 94 Stat. 2716.]
839c(g)(7). The Administrator shall be deemed to have
sufficient resources for the purpose of entering into the initial contracts
specified in paragraph (1)(A) through (D). [Northwest Power Act, §5(g)(7),
94 Stat. 2716.]
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