16 U.S.C. § 832d : US Code - Section 832D: Contracts for sale of electricity

Search 16 U.S.C. § 832d : US Code - Section 832D: Contracts for sale of electricity

(a) Authorization of Administrator; contents of contracts
Subject to the provisions of this chapter and to such rate
schedules as the Secretary of Energy may approve, as provided in
this chapter, the administrator shall negotiate and enter into
contracts for the sale at wholesale of electric energy, either for
resale or direct consumption, to public bodies and cooperatives and
to private agencies and persons and for the disposition of electric
energy to Federal agencies. Contracts for the sale of electric
energy to any private person or agency other than a privately owned
public utility engaged in selling electric energy to the general
public, shall contain a provision forbidding such private purchaser
to resell any of such electric energy so purchased to any private
utility or agency engaged in the sale of electric energy to the
general public, and requiring the immediate canceling of such
contract of sale in the event of violation of such provision.
Contracts entered into under this subsection shall be binding in
accordance with the terms thereof and shall be effective for such
period or periods, including renewals or extensions, as may be
provided therein, not exceeding in the aggregate twenty years from
the respective dates of the making of such contracts. Contracts
entered into under this subsection shall contain (1) such
provisions as the administrator and purchaser agree upon for the
equitable adjustment of rates at appropriate intervals, not less
frequently than once in every five years, and (2) in the case of a
contract with any purchaser engaged in the business of selling
electric energy to the general public, the contract shall provide
that the administrator may cancel such contract upon five years'
notice in writing if in the judgment of the administrator any part
of the electric energy purchased under such contract is likely to
be needed to satisfy the requirements of the said public bodies or
cooperatives referred to in this chapter, and that such cancelation
may be with respect to all or any part of the electric energy so
purchased under said contract to the end that the preferential
rights and priorities accorded public bodies and cooperatives under
this chapter shall at all times be preserved. Contracts entered
into with any utility engaged in the sale of electric energy to the
general public shall contain such terms and conditions, including
among other things stipulations concerning resale and resale rates
by any such utility, as the administrator may deem necessary,
desirable or appropriate to effectuate the purposes of this chapter
and to insure that resale by such utility to the ultimate consumer
shall be at rates which are reasonable and nondiscriminatory. Such
contracts shall also require such utility to keep on file in the
office of the administrator a schedule of all its rates and charges
to the public for electric energy and such alterations and changes
therein as may be put into effect by such utility.
(b) Exchange of excess power
The administrator is authorized to enter into contracts with
public or private power systems for the mutual exchange of unused
excess power upon suitable exchange terms for the purpose of
economical operation or of providing emergency or break-down
relief.