the project is located, a conspicuous sign giving the name of the project and the owner of the project, a statement that it is licensed by the Commission and the project number, directions to the areas of the project which are available for public recreation use, permissible times and activities, and other regulations regarding such use, and advising that further information may be obtained at local offices of the licensee in the vicinity of the project. In addition, the licensee shall post at such locations conspicuous notice that the recreation facilities are open to all members of the public without discrimination.

(b) The licensee shall make available for inspection at its local offices in the vicinity of the project the recreation plan approved by the Commission and the entire license instrument, properly indexed for easy reference to the license conditions designated for publications in § 8.1. [Order 299, 30 F.R. 7313, June 3, 1965, as amended by Order 341, 32 F.R. 6488, Apr. 27, 1967; 32 F.R. 11640, Aug. 11, 1967] § 8.3 Discrimination prohibited.

Every licensee maintaining recreation facilities for the use of the public at a licensed project, or employing or permitting any other person to maintain such facilities, shall permit, or require such other person to permit, equal and unobstructed use of such facilities to all members of the public without regard to race, color, religious creed or national origin.

[Order 341, 32 F.R. 6488, Apr. 27, 1967] § 8.11 Information respecting use and development of public recreational opportunities.

(a) Except as provided in paragraph (b) of this section, each licensee of a project under major or minor Commission license shall prepare with respect to each such project owned and file by June 30, 1967, and biennially thereafter, an original and two conformed copies of FPC Form No. 80 prescribed by § 141.14 of this chapter for use by licensees of projects under major and minor license. Forms filed subsequently to the 1967 filing need be completed only to the extent necessary to correct, supplement, update or add to the information supplied in a previously filed form. One copy of the report should be retained by the correspondent in its file.

(b) A licensee or applicant who submits a statement that it has previously filed

an acceptable recreational use plan pursuant to a special license condition or § 4.41 Exhibit R, of this chapter will not be required to file Form 80 until December 31, 1968, or at such time as may be required by a special license condition. Such statement shall indicate the document previously so filed and its status, i.e., whether approved as being an accepted recreational use plan submitted pursuant to a special license condition, or as an Exhibit R in a pending license application, or as the case may be.

(c) A licensee may request an exemption from any further filing of Form 80, for a project or any development thereof which has no recreational use or potential, by submitting a statement not later than 6 months prior to the due date for the second filing, stating that Form 80 has been filed previously for the project or development thereof and setting out the basis for believing that the project has no recreational use or potential. [Order 330, 31 F.R. 16202, Dec. 17, 1966, as amended by Order 369, 33 F.R. 14593, Sept. 28, 1968]

§ 9.3 Transfer.

The

(a) Approval by the Commission of transfer of a license is contingent upon the transfer of title to the properties under license, delivery of all license instruments, and a showing that such transfer is in the public interest. transferee shall be subject to all the conditions of the license and to all the provisions and conditions of the act, as though such transferee were the original licensee and shall be responsible for the payment of annual charges which accrue prior to the date of transfer.

(b) When the Commission shall have approved the transfer of the license, its order of approval shall be forwarded to the transferee for acknowledgment of acceptance. Unless application for rehearing is filed, or unless the order is stayed by the Commission, the order shall become final thirty (30) days from date of issuance and the acknowledgment of acceptance shall be filed in triplicate with the Commission within sixty (60) days from date of issuance accompanied by a certified copy of the deed of conveyance or other instrument evidencing transfer of the property under license, together with evidence of the recording thereof.

[Order 175, 19 F. R. 5217, Aug. 18, 1954] APPLICATION FOR LEASE OF PROJECT PROPERTY

AUTHORITY: The provisions of this Part 11 issued under sec. 10(e), 41 Stat. 1068, as amended, sec. 309, 49 Stat. 858; 16 U.S.C. 803 (e), 825h, unless otherwise noted. § 11.20 Costs of administration.

Reasonable annual charges will be assessed by the Commission against each licensee to reimburse the United States for the costs of administration of Part I of the Federal Power Act as follows:

(a) For licensees, other than State or municipal, of projects of more than 2,000 horsepower of installed capacity:

(1) A determination shall be made for each fiscal year of the costs of administration of Part I of the Federal Power Act chargeable to such licensees, from which shall be deducted such administrative costs allocated by the Commission to minor part licenses for which administrative charges are waived under section 10(1) of the Act and those fixed by the Commission in determining headwater benefit payments.

(2) For each calendar year the costs of administration determined under subparagraph (1) of this paragraph shall

be assessed against such licensee in the proportion that the annual charge factor for each such project bears to the total of the annual charge factors under all such outstanding licenses.

(3) The annual charge factor for each such project shall be found as follows:

(i) For a conventional project the factor is its authorized installed capacity (horsepower) plus 150 times its annual energy output in millions of kilowatthours.

(ii) For a pure pumped storage project the factor is the authorized horsepower.

(iii) For а mixed conventionalpumped storage project the factor is its authorized installed capacity (horsepower) plus 150 times its gross annual energy output in millions of kilowatthours less 100 times the annual energy used for pumped storage pumping in millions of kilowatt-hours.

(4) To enable the Commission to determine such charges annually, each such licensee shall file with the Commission, on or before February 1 of each year, a statement under oath showing the gross amount of power generated (or produced by nonelectrical equipment) and the amount of power used for pumped storage pumping by the project during the preceding calendar year, expressed in kilowatt-hours.

(5) No licensee under a license issued prior to August 26, 1935, shall be required to pay annual charges in an amount greater than that prescribed in such license.

(b) For State or municipal licensees of projects of more than 100 horsepower of installed capacity:

(1) A determination shall be made for each fiscal year of the cost of administration under Part I of the Federal Power Act chargeable to such licensees from which shall be deducted the total amount assessed against State and municipal licensees holding minor and minor-part licenses.

(2) For each calendar year such total actual cost of administration as determined under subparagraph (1) of this paragraph shall be assessed against each such licensee in the proportion that the authorized horsepower installed capacity of each such project bears to the total such capacity under all such outstanding licenses.

(3) After such assessment each calendar year, exemption will be granted such licensees to the extent, if any, to which they may be entitled under section 10 (e) of the act provided the data is submitted as requested in subparagraphs (4) and (5) of this paragraph.

(4) To enable the Commission to compute on the bill for annual charges the exemption to which such licensee is entitled because of the use of power by the licensee for State or municipal purposes, each such licensee shall file with the Commission, on or before February 1 of each year, a statement under oath showing the following information with respect to the power generated by the project and the disposition thereof during the preceding calendar year, expressed in kilowatt-hours:

(i) Gross amount of power generated by the project.

(ii) Amount of power used for station purposes and lost in transmission, etc.

(iii) Net amount of power available for sale or use by licensee, classified as follows:

(a) Used by licensee,
(b) Sold by licensee.

(5) When the power from a licensed project owned by a State or municipality enters into its electric system, making it. impracticable to meet the requirements. of subparagraph (4) of this paragraph with respect to the disposition of project power, such licensee may, in lieu thereof, furnish similar information with respect to the disposition of the available power of the entire electric system of the licensee.

or

(6) All licenses held by State municipal licensees of projects of more than 100 horsepower of installed capacity and which specifically provides for assessment of administrative annual charges in a manner other than is provided by subparagraphs (1) to (5) of this paragraph may be amended to provide for assessment of such annual charges pursuant to subparagraphs (1) to (5) of this paragraph:

(i) By the filing by such a licensee within 60 days from the date of the order prescribing this amendment to section 11.20 of an acceptance of the provisions and conditions of said subparagraphs (1) to (5) of this paragraph, such amendment to be effective as of January 1, 1957; or

(ii) By the filling by such a licensee of an application for amendment of license pursuant to section 6 of the Federal Power Act.

(c) For licensees of projects of 2,000 horsepower or less of installed capacity the charge for costs of administration shall be 5 cents per horsepower with a minimum charge of $5 per annum for each such license except for those licenses for which administrative charges are waived under section 10(i) of the Act. No licensee under a license issued prior to August 26, 1935, shall be required to pay annual charges in an amount greater than that prescribed in such license.

(d) For projects involving transmission lines only the administration charge shall be a minimum of $5 per annum.

(e) For projects not covered by the above subsections, reasonable annual charges will be fixed by the Commission after consideration of the facts in each case.

(Sec. 304(a), 49 Stat. 855; 16 U.S.C. 825c(a)) [Order 205, 23 F.R. 4313, June 13, 1958, as amended by Order 272-A, 29 F.R. 8059, June 25, 1964; Order 309, 30 F.R. 15093, Dec. 7, 1965] § 11.21 Use of Government lands.

Reasonable annual charges for recompensing the United States for the use, occupancy, and enjoyment of its lands (other than lands adjoining or pertaining to Government dams or other structures) or its other property, will be fixed by the Commission. In fixing such charges the Commission may take into consideration such factors as commercial value, the most profitable use for which the lands or other property may be suited, the beneficial purpose for which said lands or other property have been or may be used, and such other factors as the Commission may deem pertinent. Upon reasonable notice and opportunity for hearing, such charges may be adjusted from time to time by the Commission. The annual charge for the use of lands of the United States for transmission lines only shall be at the rate of $8 per mile per annum for rights-of-way 100 feet in width, with proportional increase or decrease for rights-of-way having greater or less width. The minimum annual charge for use of Government lands under any license shall be $5. [Order 141, 12 F.R. 8492, Dec. 19, 1947]

§ 11.22

Use of Government dams, structures, tribal lands.

Reasonable annual charges for recompensing the United States for the use of Government dams or other structures owned by the United States, and for the use, occupancy, and enjoyment of the lands of the United States adjoining or pertaining thereto, will be based upon the estimated value for power purposes of the properties and privileges for which a license is issued: Provided, however, That annual charges for the use of Government dams or other structures owned by the United States in reclamation projects or for use of tribal lands embraced within Indian reservations shall be determined in accordance with the provisions of section 10(e) of the Federal Power Act.

[Order 141, 12 F.R. 8492, Dec. 19, 1947]

§ 11.23

Exemption of minor projects.

No exemption will be made from payment of annual charges for the use of Government dams or tribal lands within Indian reservations but licenses may be issued without charges other than for such use for the development, transmission, or distribution of power for domestic, mining, or other beneficial use in minor projects.

[Order 141, 12 F.R. 8492, Dec. 19, 1947]

§ 11.24 Exemption of State and municipal licensees.

(a) Bases for exemption. A State or municipal licensee may claim total or partial exemption upon one or more of the following grounds:

(1) The project was primarily designed to provide or improve navigation;

(2) To the extent that power generated, transmitted, or distributed by the project was sold directly or indirectly to the public (ultimate consumer) without profit;

(3) To the extent that power generated, transmitted, or distributed by the project was used by the licensee for State or municipal purposes.

(b) Projects primarily for navigation. No State or municipal licensee shall be entitled to exemption from the payment of annual charges on the ground that the project was primarily designed to provide or improve navigation unless the licensee establishes that fact from the

actual conditions under which the project was constructed and was operated during the calendar year for which the charge is made.

(c) State or municipal use. A State or municipal licensee shall be entitled to exemption from the payment of annual charges for the project to the extent that power generated, transmitted, or distributed by the project is used by the licensee itself for State or municipal purposes, such as lighting streets, highways, parks, public buildings, etc., for operating licensee's water or sewerage system, or in performing other public functions of the licensee.

(d) Sales to public. No State or municipal licensee shall be entitled to exemption from the payment of annual charges on the ground that power generated, transmitted, or distributed by the project is sold to the public without profit, unless such licensee shall show:

(1) That it maintains an accounting system which segregates the operations of the licensed project and reflects with reasonable accuracy the revenues and expenses of the project;

(2) That an income statement, prepared in accordance with the Commission's Uniform System of Accounts, shows that the revenues from the sale of project power do not exceed the total amount of operating expenses, maintenance, depreciation, amortization, taxes, and interest on indebtedness, applicable to the project property. Periodic accruals or payments for redemption of the principal of bonds or other indebtedness may not be deducted in determining the net profit of the project.

(e) Sales for resale. Notwithstanding compliance by a State or municipal licensee with the requirements of paragraph (d) of this section, it shall be subject to the payment of annual charges to the extent that electric power generated, transmitted, or distributed by the project is sold to another State, municipality, person, or corporation for resale, unless the licensee shall show that the power was sold to the ultimate consumer without profit. The matter of whether or not a profit was made is a question of fact to be established by the licensee.

(f) Interchange of power. Notwithstanding compliance by a State or municipal licensee with the requirements

of paragraph (d) of this section, it shall be subject to the payment of annual charges to the extent that power generated, transmitted, or distributed by the project was supplied under an interchange agreement to a State, municipality, person, or corporation for sale at a profit (which power was not offset by an equivalent amount of power received under such interchange agreement) unless the licensee shall show that the power was sold to ultimate consumers without profit.

(g) Construction period. During the period when the licensed project is under construction and is not generating power, it will be considered as operating without profit within the meaning of this section, and licensee will be entitled to total exemption from the payment of annual charges, except as to those charges relating to the use of a Government dam or tribal lands within Indian reservations.

(h) Optional showing, When the power from the licensed project enters into the electric power system of the State or municipal licensee, making it impracticable to meet the requirements set forth in this section with respect to the operations of the project only, such licensee may, in lieu thereof, furnish the same information with respect to the operations of said electric power system as a whole.

(i) Application for exemption. Application for exemption from payment of annual charges shall be prepared on forms prescribed by the Commission and shall be signed by an authorized executive officer or chief accounting officer of the licensee and verified under oath. An original and three copies of such application shall be filed with the Commission within the time allowed (by § 11.27) for the payment of the annual charges: Provided, however, That if the licensee shall within the time allowed for the payment of the annual charges fille notice that it intends to fille application for exemption, an additional period of 30 days is allowed within which to complete and file the application for exemption. [Order 143, 13 F.R. 6681, Nov. 13, 1948]

CROSS REFERENCE: For form of application by municipalities for exemption from payment of annual charges, see § 131.70 of this chapter.