On April 9 the regulations as amended were presented to the Commission and the committee of the National Electric Light Association withdrew the objections presented at the hearing on March 25. The amended regulations were adopted by the Commission at its hearing of May 28, 1921, were promulgated by Orders, No. 11 on June 6, 1921, and since the latter date have governed in the administration of the act.

In reporting to the annual convention of the National Electric Light Association in Chicago in June the committee on water power development stated as follows:

The new Federal Power Commission took office March 4 and your committee immediately requested a hearing, which was granted, and held upon March 25, 1921. At that hearing, the committee frankly stated to the Commission its views as to the rules then in force. After the hearing, your committee remained in Washington for two weeks in conference with Secretary Merrill and his staff, at which time with one exception an agreement was reached as to revision of the rules. These revised rules were adopted by the Commission upon May 28, 1921, and are now in force. In the opinion of your committee, these rules provide a workable basis for administration of the water power act.

6

While it may seem to some that the rules are still too technical and contain unnecessary requirements, yet it must be remembered that the terms of the act itself are in some respects somewhat complex, and the rules were, perforce, formulated so as to be in conformity with the law.

*

Your water power committee have given their whole attention during the past year to aiding the formulation of the principles upon which the water powers of the country might be developed. This work completed, the attention of the committee can now be given to aiding in the development of this great natural resource. The stagnation of water power development has at last been ended, and the way is now open for the first time in many years for the utilization of the mighty force latent in our falling waters.

Under the provisions of section 4(f) of the act a tentative draft of rules and regulations for the establishment and maintenance of a system of accounts was prepared and printed, and distributed on June 7 to permittees and licensees of the Commission, to State public utility commissions and to other interested persons for purposes of consideration and criticism. Many suggestions have been received, several informal conferences have been held, and assistance has been rendered by the accounting committee of the National Electric Light Association and of the National Association of Public Utility Commissioners. These proposed regulations will be discussed in more detail under the heading "Accounting." "

The cooperation which has been effected between the Commission and other agencies, such as Engineering Council, the National Elec

This was the multiple of 1 used in sec. 3 of Reg. 17. The committee had contended for a multiple of 2.

See p. 36.

tric Light Asosciation and the National Association of Public Utility Commissioners is the expression of a definite policy on the part of the Commission. It is charged under the provisions of the law with the protection of the public interest in the great national water power resources, and this is its first duty. It is also its duty to encourage by every legitimate means the development of these resources for public use and enjoyment and in the interest of the country's economic progress. It believes that this development can best be hastened through united action; and it stands ready to cooperate with every agency, public or private, that is willing to approach mutual problems in a spirit of cooperation.

4. RESULTS ACCOMPLISHED.

ENGINEERING DIVISION.

All preliminary work, such as examination of applications, passing upon maps and plans, conduct of field investigations and field hearings, and the preparation of reports, required in connection with applications for permits, licenses, and restorations to entry and in connection with declarations of intention under section 23 of the act, is performed through the engineering division of the Commission's staff and the engineering forces in the field offices of the three depart

ments.

The force assigned or detailed to the Commission for this work has consisted of the chief engineer, 6 assistant engineers, 2 junior engineers, 2 draftsmen, and 5 clerks and stenographers. Up to June 30, 1921, the average length of service with the Commission of the 9 engineers assigned or detailed was 8 months. No information is available concerning the number of individuals in the three departments engaged on similar work in cooperation with the Commission, or the average length of time given to such work.

Applications Filed.

Up to July 1, 1921, there had been filed with the Commission applications for 162 preliminary permits and 67 licenses, or a total of 229 applications, which, after deducting conflicting applications and applications rejected or withdrawn, aggregated 9,833,000 primary horsepower, and 15,026,000 horsepower of estimated installation.

On November 1 the applications had been increased to 185 for preliminary permit and 75 for license, or a total of 260, which, after the same deductions as above, aggregated 11,060,000 primary horsepower, and 16,826,000 horsepower of estimated installation."

For details of applications see Appendix F, p. 177.

These applications affect 33 States, the District of Columbia, and the Territory of Alaska. The capacities of the projects applied for vary from less than 100 horsepower to the series of projects totaling four and a half million horsepower of the Southern California Edison Company on the Colorado River. Of the 260 applications on file on November 1, 81 affect navigable rivers, 100 public lands, 23 Indian reservations, and 153 national forests.

Sixteen million eight hundred thousand horsepower is approximately twice the water horsepower which has been developed in the United States to date. It exceeds the combined potential waterpower resources of Norway, Sweden, Finland, and the Arctic and Baltic drainages of Russia. It is 70 per cent greater than the combined resources of France and Italy. It is from five to six times greater than the aggregate of all applications filed with the Federal Government during the preceding 15 years.

The following tables show the distribution of the applications and the net horsepower of installation by months and by States.

TABLE NO. 1.-Distribution of applications by months.

"Received" column shows the gross total horsepower involved in applications received during the "Net" column shows the horsepower after deducting duplications due to conflicting applications and deducting for applications withdrawn or rejected.

month.

TABLE No. 2.—Distribution of applications, by States, to Nov. 1, 1921.

Sixty-four per cent of the applications as first filed with the Commission failed to give the information prescribed by the regulations. of the Commission as necessary, in the language of the act, "for a full understanding of the proposed project." These omissions were largely due to the fact that many applications were filed-some consisting of nothing more than a letter-prior to the time when regulations setting forth the information required were available to applicants. Amendment has not been required for merely technical defects, but only where there has been substantial failure to supply necessary information.

Up to July 1, 1921, 224 of the 229 applications had been examined and 208 had been returned for correction or additional information requested. At the end of the year 90 applications were still incomplete. Of the 229 applications 144 had been advertised, and in 124 cases the statutory period of advertisement had expired. In 21 cases involving minor projects advertisement was waived under the authority of subsection (i) of section 10 of the act. Sixty-two applications lacking in essential information had not been advertised. Between July 1 and November 1, 39 additional applications were advertised, making a total on November 1 of 183.

During the fiscal year 161 applications were referred to the field offices of the departments for field examination and report, and in 45 cases reports had been submitted to the Commission. Between July 1 and November 1, 40 additional cases had been referred and 53 additional reports received, making a total on November 1 of 201 cases referred and 98 reports received. Hearings were ordered in 34 of the cases submitted to the departments during the fiscal year and 8 were held. Seven additional hearings were ordered between July 1 and November 1 and 6 were held. Nine public hearings were held during the year before the Commission itself. The distribution of these cases among the three departments was as follows:

TABLE NO. 3.—Applications referred to the departments for field examinations, hearings, and reports.

NOTE.-Fourteen applications involving Alaskan projects were referred to and reported on by both the Interior and Agriculture Departments, the latter reporting as to whether the project would interfere with the proper utilization of national forests.

Permits and Licenses.

On account of delays in securing assignments of personnel, of the time required to organize the work of the Commission and to arrange for the cooperation of the several departments, and of the amount of work involved in drafting the regulations and holding hearings thereon while at the same time carrying on the preliminary work of notifications, withdrawals, advertising, field examinations, and hearings on the many applications before the Commission and the prepa