of energy. (d) The term "sale of electric energy at wholesale""Wholesale sale when used in this Part means a sale of electric energy to any person for resale. (e) The term "public utility " when used in this Part "Public utility." or in the Part next following means any person who owns or operates facilities subject to the jurisdiction of the Commission under this Part. Part not appli States, States, or porations of (f) No provision in this Part shall apply to, or be Provisions in this deemed to include, the United States, a State or any cable to United political subdivision of a State, or any agency, authority, agencies or coror instrumentality of any one or more of the foregoing, either. or any corporation which is wholly owned, directly or indirectly, by any one or more of the foregoing, or any officer, agent, or employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto. INTERCONNECTION AND COORDINATION OF . Interconnection FACILITIES; and coordination COUNTRIES of facilities. natural resources. tricts. connection and facilities. SEC. 202. (a) For the purpose of assuring an abundant supply of electric energy throughout the United States with the greatest possible economy and with regard to the proper utilization and conservation of natural re- Conservation of sources, the Commission is empowered and directed to divide the country into regional districts for the volun- Regional distary interconnection and coordination of facilities for the generation, transmission, and sale of electric energy, and it may at any time thereafter, upon its own motion or upon application, make such modifications thereof as in its judgment will promote the public interest. Each Voluntary intersuch district shall embrace an area which, in the judg- coordination of ment of the Commission, can economically be served by such interconnected and coordinated electric facilities. It shall be the duty of the Commission to promote and encourage such interconnection and coordination within each such district and between such districts. Before es- Commission to cooperate with tablishing any such district and fixing or modifying the States in estab boundaries thereof the Commission shall give notice to districts. the State commission of each State situated wholly or in part within such district, and shall afford each such State commission reasonable opportunity to present its views and recommendations, and shall receive and consider such views and recommendations. 197437°-403 lishing regional Hearing upon application for interconnection of facilities. (b) Whenever the Commission, upon application of any State commission or of any person engaged in the transmission or sale of electric energy, and after notice to each State commission and public utility affected and after opportunity for hearing, finds such action necessary Commission may or appropriate in the public interest it may by order order intercon nection. Proviso-Com mission cannot direct a public utility (if the Commission finds that no undue burden will be placed upon such public utility thereby) to establish physical connection of its transmission facilities with the facilities of one or more other persons engaged in the transmission or sale of electric energy, to sell energy to or exchange energy with such persons: Provided, That the Commission shall have no compel enlarge authority to compel the enlargement of generating facilities for such purposes, nor to compel such public utility to sell or exchange energy when to do so would impair its ability to render adequate service to its customers. Commission may The Commission may prescribe the terms and conditions and conditions of of the arrangement to be made between the persons interconnection affected by any such order, including the apportionment of cost between them and the compensation or reimbursement reasonably due to any of them. ment of generating facilities. prescribe terms arrangements for and apportion cost thereof. Temporary interconnection during national emergency. ing not required. (c) During the continuance of any war in which the United States is engaged, or whenever the Commission determines that an emergency exists by reason of a sudden increase in the demand for electric energy, or a shortage of electric energy or of facilities for the generation or transmission of electric energy, or of fuel or water for generating facilities, or other causes, the Commission shall have authority, either upon its own motion Notice and hear or upon complaint, with or without notice, hearing, or report, to require by order such temporary connections of facilities and such generation, delivery, interchange, or transmission of electric energy as in its judgment will best meet the emergency and serve the public interest. If the parties affected by such order fail to agree upon Terms for inter- the terms of any arrangement between them in carrying be prescribed by out such order, the Commission, after hearing held either Commission. before or after such order takes effect, may prescribe by supplemental order such terms as it finds to be just and reasonable, including the compensation or reimbursement which should be paid to or by any such party. connection may (d) During the continuance of any emergency requiring immediate action, any person engaged in the gency connection subject to Com tion. transmission or sale of electric energy and not otherwise subject to the jurisdiction of the Commission may make such temporary connections with any public utility subject to the jurisdiction of the Commission or may construct such temporary facilities for the transmission Temporary emerof electric energy in interstate commerce as may be of facilities not necessary or appropriate to meet such emergency, and mission jurisdicshall not become subject to the jurisdiction of the Commission by reason of such temporary connection or temporary construction: Provided, That such temporary Proviso. Temconnection shall be discontinued or such temporary con- nections to he struction removed or otherwise disposed of upon the of emergency. termination of such emergency: Provided further, That Proviso. Perinaupon approval of the Commission permanent connections connection aufor emergency use only may be made hereunder. porary intercon terminated at end nent emergency thorized. energy pro authorize expor plication. (e) After six months from the date on which this Part takes effect, no person shall transmit any electric Exportation of energy from the United States to a foreign country hibited. without first having secured an order of the Commission Commission may authorizing it to do so. The Commission shall issue tation upon apsuch order upon application unless, after opportunity for hearing, it finds that the proposed transmission would Hearing. impair the sufficiency of electric supply within the United States or would impede or tend to impede the coordination in the public interest of facilities subject to the jurisdiction of the Commission. The Commission may by its order grant such application in whole Terms and conor in part, with such modifications and upon such terms exportation. and conditions as the Commission may find necessary or appropriate, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental orders in the premises as it may find necessary or appropriate. DISPOSITION OF PROPERTY; CONSOLIDATIONS; PURCHASE OF SECURITIES ditious for or consolidation hibited unless SEC. 203. (a) No public utility shall sell, lease, or other- Disposal, merger wise dispose of the whole of its facilities subject to the of facilities projurisdiction of the Commission, or any part thereof of a approved. value in excess of $50,000, or by any means whatsoever, directly or indirectly, merge or consolidate such facilities or any part thereof with those of any other person, or securities of purchase, acquire, or take any security of any other prohibited unless public utility, without first having secured an order of Acquisition of public utilities approved. approval. nor and State commission. Application for the Commission authorizing it to do so. Upon application for such approval the Commission shall give reasonNotice to Gover- able notice in writing to the Governor and State commission of each of the States in which the physical property affected, or any part thereof, is situated, and to such other persons as it may deem advisable. After notice and Hearing on ap- opportunity for hearing, if the Commission finds that the proposed disposition, consolidation, acquisition, or control will be consistent with the public interest, it shall approve the same. plication. Grant of applica tion in whole or part. Terms and condi (b) The Commission may grant any application for an order under this section in whole or in part and upon such terms and conditions as it finds necessary or approtions of order. priate to secure the maintenance of adequate service and the coordination in the public interest of facilities subject to the jurisdiction of the Commission. The Commission may from time to time for good cause shown make such orders supplemental to any order made under this section as it may find necessary or appropriate. Modification of order, Issuance of secu rities or assump by utility pro hibited unless authorized. approval. ing, basis for. ISSUANCE OF SECURITIES; ASSUMPTION OF LIABILITIES SEC. 204. (a) No public utility shall issue any security, tion of liability or assume any obligation or liability as guarantor, indorser, surety, or otherwise in respect of any security of another person, unless and until, and then only to the Application for extent that, upon application by the public utility, the Commission by order authorizes such issue or assumption Order authoriz. of liability. The Commission shall make such order only if it finds that such issue or assumption (a) is for some lawful object, within the corporate purposes of the applicant and compatible with the public interest, which is necessary or appropriate for or consistent with the proper performance by the applicant of service as a public utility and which will not impair its ability to perform that service, and (b) is reasonably necessary or appropriate for such purposes. The provisions of this section shall be effective six months after this Part takes effect. (b) The Commission, after opportunity for hearing, Grant of applica- may grant any application under this section in whole or in part, and with such modifications and upon such terms and conditions as it may find necessary or appropriate, and may from time to time, after opportunity for hearing and for good cause shown, make such supplemental Hearing. tion in whole or in part. Terms and conditions of order. order. orders in the premises as it may find necessary or appropriate, and may by any such supplemental order modify Modification of the provisions of any previous order as to the particular purposes, uses, and extent to which, or the conditions under which, any security so theretofore authorized or the proceeds thereof may be applied, subject always to the requirements of subsection (a) of this section. security issues. (c) No public utility shall, without the consent of the Proceeds of Commission, apply any security or any proceeds thereof to any purpose not specified in the Commission's order, or supplemental order, or to any purpose in excess of the amount allowed for such purpose in such order, or otherwise in contravention of such order. Capitalization of therefor prohibited. (d) The Commission shall not authorize the capitali- rights in excess zation of the right to be a corporation or of any fran- of amount paid chise, permit, or contract for consolidation, merger, or lease in excess of the amount (exclusive of any tax or annual charge) actually paid as the consideration for such right, franchise, permit, or contract. section (a) not notes and drafts 1 year, aggre than 5 percent of notes the value of secu rities outstand (e) Subsection (a) shall not apply to the issue or Provisions of subrenewal of, or assumption of liability on, a note or draft applicable to maturing not more than one year after the date of such maturing within issue, renewal, or assumption of liability, and aggre- gating not more gating (together with all other then outstanding and drafts of a maturity of one year or less on which ing. such public utility is primarily or secondarily liable) not more than 5 per centum of the par value of the other securities of the public utility then outstanding. In the value of securicase of securities having no par value, the par value for ties, determinathe purpose of this subsection shall be the fair market value as of the date of issue. Within ten days after any such issue, renewal, or assumption of liability, the public utility shall file with the Commission a certificate of noti- Certificate of fication, in such form as may be prescribed by the Commission, setting forth such matters as the Commission shall by regulation require. tion of. notification. tion not appli cable where (f) The provisions of this section shall not extend to a Provisions of secpublic utility organized and operating in a State under the laws of which its security issues are regulated by a State commission States regulate securities. (g) Nothing in this section shall be construed to imply Securities not guaranteed by any guarantee or obligation on the part of the United United States. States in respect of any securities to which the provisions of this section relate. |