Source: https://collections.lib.utah.edu/details?id=1138668
Timestamp: 2019-04-20 08:43:35+00:00

Document:
286 tween the provisions of Parts I and II is that those of Part I restrict the rate base to an amount not in excess of "net invest- ment" or "fair value/5 whichever is the lower.159 "Net in- vestment" in a project is denned as the "actual legitimate original cost/' less certain deductions.160 No such limitation appears in the rate provisions of Part II. It should also be noted that the Act prohibits agreements and arrangements to limit the output of electrical energy, to restrain trade, or to fix, maintain, or increase prices therefor.161 Disposition of Projects.-During the 1900-1920 period, there were vigorous arguments over proposals as to the dispo- sition of nonfederal works constructed under federal authoriza- tion. A number of earlier special grants, it will be remembered, provided for transfer of the works to the United States upon completion.162 The 1920 Act provides for a maximum license period of 50 years, and then for an option under which the United States may, at the end of that period, take over and operate the licensed project at an acquisition price limited to "fair value" or "net investment," whichever is lower.163 To enable the Commission to determine the net investment in a licensed project, it is authorized to require detailed cost state- ments by the licensee and to have access to its records.164 If the United States does not take over the project at the end of the license period, the Commission may, subject to provisions of law and regulations then existing, issue a new license to the original licensee, or to a new licensee.165 Absent a take-over, a license to a new licensee, or a license "upon reasonable terms" to the original licensee-the Commission "shall" issue from year to year an annual license to the "then 169 § 20, 41 Stat. 1073, 16 U. S. C. 813; § 14, 41 Stat. 1071, as amended, 16 U. S. C. 807. 160 § 3, 41 Stat. 1063, as amended, 16 U. S. C. 796(13). See also 179 F. 2d 187, 193-194. 161 § 10(h), 41 Stat. 1070, as amended, 16 U. S. O. 803(h). 182 See supra, n. 41, pp. 266-267. 16a § 14, 41 Stat. 1071, 16 U. S. C. 807; § 6, 41 Stat. 1067, 16 U. S. C. 799. 164 § 4(b), 49 Stat. 839, 16 U. S. C. 797(b). Originally before amendment designated § 4(a), 41 Stat. 1065. See also § 10(d), 41 Stat. 1068, as amended, 16 U. S. O. 803 (d), concerning amortization reserves. 165 § 15, 41 Stat. 1072,16 U. S. O. 808.

References: § 20
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 § 10
 § 14
 § 6
 § 4
 § 4
 § 10
 § 15