The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-10-29
THE FEDERAL POWER COMMITS,
SION

Washington, D. c.. Oct. %. - Gre
ated by congress in 1920 to administer
the federal water power act, reorgan-
lied in 1880, with five whole time
commissioners appointed by the pres
ident. the federal power commission
has general control over all water
power sites on the navigable waters
and on public lands and reservations
Of the United States, and over the To-
cation, design, construction. and oper-
alton Of power plants upon such sites.
No power plant can be erected on
public lands or navigable stream with
out its license. Applications are
thoroughly investigated to determine
whether the project proposed can be
economically developed, will furnish
necessary service. and Is best adapted
to a comprehensive scheme for de-
yeloping the water resources Of its
region for irrigation. navigation. flood
control, and water supply. as well as
power. Plants are maintained and
efficient operation assumed by reserve
funds which the companies must set
aside for renewals and requirements.
Customers are protected. and the fin
ancial stability Of projects preserved,
by regulation Of rates, services, and
securities Of licensees In states which
have no such regulatory agency, or
where state authorities are unable to
agree. In most cases. however. rates
are fixed by state commissions; the
rights Of the states are carefully safe
guarded.
"Recapture' Of power plants b. the
public is provided for In the Federal
Water Power act. This provision re-
serves to the United States. or to
any state or municipality designated
by the commission, the right to take
ever any licensed project, upon ex-
piration OF the license, by payment
to the licensee of the net invest
ment. not to exceed the fair value
Of the project.
Projects are usually licensed for
SO years, the longest period which
the law permits. To preserve this
option Of recapture, and protect
consumers from unreasonable rates,
the Commission Is required to deter
mine currently the actual legitimate
cost of projects constructed under
license. and the fair value of licensed
projects constructed under previous
authority. Net investment is re-
duced, as are also the recaptura and
rate base. by the creation Of amortiz-
alton reserves in excess Of specified
reasonable rate Of return.
Three new and important duties
have recently been entrusted to this
commission. President Roosevelt, by
executive order. August Is, 1888, di-
rected the commission to make "a
survey of the water resources Of the
United States as they relate to the
conservation. development, control,
and utilization of water power; of the
relation Of water power to other in
dustries and to interstate and for
eign commerce: and Of the transmits
sion of electrical energy in the United
States and its distribution to con-
sEmers,' and on the basis of this
survey to formulate program Of
public works S"
Survey Of Power and Electricity
Congress by joint resolution, on
April IA, 1884, directed the commission
to investigate, compile. analyze, and
report the rate charged for electric
energy and Its service to residential,
rural, commercial, and industrial con-
sumers throughout the United States,
by both private and municipal COR
porations."
The National Power Survey and
the Electric Rate Survey, now In pro-
gress, are the most comprehensive
ever made In any country.
Determining the nations power re-
| quirements. and how they can be most
economically and advantageously sup
piled, is the primary purpose Of the
| National Power Survey. Markets are
considered, as well as power sites that
can be developed at reasonable cost.
either by governmental enterprise or
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