given by charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civil organization.

(2) Participation in the activities of national or state political parties not prescribed by law.

§ 3c.205 Ethical conduct.

(a) Use of government property. A Commissioner shall not directly or indirectly use, or allow the use of, government property of any kind, including property leased to the government, for other than officially approved activities. A Commissioner has a positive duty to protect and conserve government property, including equipment, supplies, and other property entrusted or issued to him.

(b) Misuse of information. (1) For the purpose of furthering a private interest, a Commissioner shall not, except as provided in § 3c.204 (e) (2) and paragraph (b) (3) of this section, directly or indirectly use, or allow the use of, official information obtained through or in connection with his Commission employment which has not been made available to the general public.

(2) Section 1.36 of the Commission's Rules of Practice and Procedure (18 CFR 1.36) sets up the procedures for making available to the public, information in the public files and records of the Commission and specifies the particular files and records which are not generally available to the public. § 1.36(f) defines the responsibilities of Commissioners when served with a subpoena duces tecum and outlines the procedures to be followed when the material sought is not part of the public files and records of the Commission.

(3) Section 30(b) (16 U.S.C. 825b) of the Federal Power Act and section 8(b) (15 U.S.C. 717g) of the Natural Gas Act prohibit any Commissioner in the absence of Commission or court direction, from divulging any fact or information which may come to his knowledge during the course of examination of books or other accounts.

(4) The nature and time of any proposed action by the Commission are confidential and shall not be divulged to anyone outside the Commission. The Secretary of the Commission has the exclusive responsibility and authority for authorizing the initial public releases of information concerning Commission actions or decisions.

(5) Section 1.4(d) of the Commission's Rules of Practice and Procedure (18 CFR 1.4(d)) states the prohibitions against ex parte communications in on-therecord proceedings to Commissioners, members of their personal staffs, Administrative Law Judge or other employees participating in the decision in such proceedings.

(c) Indebtedness. Commissioners shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. "A just financial obligation" means one acknowledged by the Commissioner or reduced to judgment by a court, or one imposed by law such as Federal, State or local taxes, and "in a proper and timely manner" means in a manner which the Commission determines does not, under the circumstances, reflect adversely on the Government as his employer. In the event of dispute between a Commissioner and an alleged creditor, the Commission shall not be required to determine the validity or amount of the disputed debt. Each Commissioner should arrange his personal financial affairs to avoid any request to the Commission for administrative action to assist in the collection of debts.

(d) A Commissioner shall not participate, while on Government-owned or leased property or while on duty for the Government, in any gambling activity, including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket. This paragraph does not preclude fundraising activities by employee organizations under section 3 of the Executive Order 10927, March 18, 1961, 26 F.R. 2383.

(e) Commissioners shall conduct themselves in such a manner that the work of the Commission is effectively accomplished and shall also observe the requirements of courtesy, consideration, and promptness in dealing with or serving the public.

(f) Commissioners shall avoid any action, whether or not specifically prohibited by §§ 3c.204 and 3c.206 which might result in or create the appearance of:

(1) Using public office for private gain; or

(2) Giving preferential treatment to any person; or

(3) Impeding government efficiency or economy; or

Each Commissioner shall acquaint himself with the following statutes and regulations relating to ethical conduct. The full texts of these statutes and regulations are available in the offices of the Agency Counselor and Director, Office of Personnel Programs.

(a) General. (1) House Concurrent Resolution 175, 85th Congress, 2d Session, 72 Stat. B12, the "Code of Ethics for Government Service," and Federal Power Commission Administrative Order No. 66, July 23, 1958, setting forth canons of conduct based on H. Con. Res. 175.

(2) Executive Order 11222, May 8, 1965, Prescribing Standards of Ethical Conduct for Government Officers and Employees, 30 FR 6469, as amended by Executive Order 11590 of April 22, 1971, 36 FR 7831, and the implementing regulations issued by the Civil Service Commission, 30 FR 12529, 5 CFR Part 735.

(3) Violation of any law, rule, or regulation, administered by the Civil Service Commission, or failure to adhere to established policies, regulations, standards, and instructions on personnel management subject to the jurisdiction of the Commission (Civil Service Rule 5.4, 5 CFR 5.4).

(4) Refusal to furnish testimony or information to authorized representatives of the Civil Service Commission in regard to matters inquired of arising under the laws, rules, and regulations administered by the Commission [Civil Service Regulation 731.201(d), 5 CFR 731.201(d).]

(5) Executive Order 10927, March 18, 1961, 26 FR 2383, Abolishing the President's Committee on Fundraising within the Federal Service and providing for the conduct of fundraising activities.

(6) The prohibitions relating to gifts to superiors (5 U.S.C. 7351).

(b) Personal conduct. (1) The provision relating to the habitual use of intoxicants to excess. (5 U.S.C. 7352).

(2) The prohibition against criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct. [Civil Service Regulation 731.201(b), 5 CFR 731.201 (b)].

(c) Disloyalty and striking. (1) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918).1

(2) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).1

(d) Foreign governments. (1) The prohibition against accepting a gift, present, decoration, or any other thing from a foreign government unless authorized by Congress as provided by the Constitution and in Pub. L. 89-673, 80 Stat. 952.

(2) The prohibition against serving while on annual leave or leave without pay, with or without remuneration, for any foreign government, corporation, partnership or individual that is in competition with American industry (Executive Order 5221, November 11, 1929). (18 CFR 3.735-11.)

(3) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219).

(e) Political activities. (1) The prohibitions against political activities (the former Hatch Act) in subchapter III of chapter 73 of title 5, U.S.C. and 18 U.S.C. 602, 603, 607, and 608. The prohibitions, and exemptions therefrom, with respect to Government employees holding state, territorial, or municipal offices. (Civil Service Regulations, 5 CFR Part 733.)

(2) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(3) No part of the money appropriated by any enactment of Congress shall, in absence of express authorization by Congress, be used directly or indirectly to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any

1 NOTE.-An employee who advocates the overthrow of our constitutional form of government, or is a member of an organization knowing it so advocates, shall be dismissed. Strikes against the government are forbidden as well as membership in government employee organizations which assert the right to strike against any federal department or agency.

manner a member of Congress, to favor or oppose, by vote or otherwise, any legislation or appropriation by Congress, whether before or after the introduction of any bill or resolution proposing such legislation or appropriation; but this shall not prevent officers or employees of the United States or of its departments or agencies from communicating to Members of Congress on the request of any Member or to Congress, through the proper official channels, requests for legislation or appropriations which they deem necessary for the efficient conduct of the public business. The penalty for violation includes fine or imprisonment and removal.

(f) Disclosure of information. (1) Section 301(b) (16 U.S.C. 825b) of the Federal Power Act and section 8(b) (15 U.S.C. 717g) of the Natural Gas Act forbid employees, in the absence of Commission or court direction from divulging information gained in examining books or accounts.

(2) Section 1.36 of the Federal Power Commission's rules of practice and procedure (18 CFR 1.36) outlines what is public information and what is not.

(3) Section 1.4(d) of the Federal Power Commission's rules of practice and procedure [18 CFR 1.4(d)] describes the prohibitions against ex parte communications.

(4) Federal Power Commission Administrative Order No. 56, July 11, 1956, describes standards of conduct relating to "Official Staff Contacts Outside the Commission".

(g) The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential information. (18 U.S.C. 1905).

(h) Bribery, graft, and conflicts of interest. (1) Chapter 11 of title 18, United States Code, especially:

Sec. 210 Offer to procure appointive public office.

Sec. 211 Acceptance or solicitation to obtain appointive public office.

(2) Federal Power Act, section 1 (16 U.S.C. 792) restricting outside employment and financial interests of Commissioners.

(3) Section 1.4(c) of the Federal Power Commission's Rules of Practice and Procedure [18 CFR 1.4(c)] states the restrictions against appearances by former employees.

(1) Fraud and deceit, embezzlement, extortion. (1) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917). The prohibition against intentional false statements or deception or fraud in examination for appointment [Civil Service Regulation 731.201(c), 5 CFR 731.201(c)). The prohibition against influencing another to withdraw from competition for any position in the competitive service for the purpose of either improving or injuring the prospects of any applicant for appointment. (Civil Service Rule 4.3, 5 CFR 4.3.)

(2) The prohibition against fraud or false statements in a Government matter. (18 U.S.C. 1001.)

(3) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508.)

(4) The prohibition against (a) embezzlement of Government money or property (18 U.S.C. 641); (b) failing to account for public money (18 U.S.C. 643); and (c) embezzlement of the money or property of another person in the possession of an employee by reason of his employment. (18 U.S.C. 654.)

(5) The prohibition against extortion. (18 U.S.C. 872.)

(j) Misuse of Government property. (1) The prohibition against the misuse of a Government vehicle. [31 U.S.C. 638 a(c).]

(2) The prohibition against the misuse of the franking privilege. (18 U.S.C. 1719.)

(3) The prohibition against mutilating or destroying a public record. (18 U.S.C. 2071.)

(4) The prohibition against unauthorized use of documents relating to claims from or by the government (18 U.S.C. 285). (Order 319, 31 F.R. 4118, March 9, 1966, as amended by Order 353, 32 FR 15239, 15240, November 3, 1967.)

4.2

Substance.

4.86 Construction work under permit.

AUTHORITY: The provisions of this Part 4 issued under secs. 3(13), 4, 10(1), 23, 41 Stat. 1063, 1065, 1068, 1075, as amended, secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C. 796 (13), 797, 803 (1), 816, 825(b), 825g, 825h, unless otherwise noted.

SOURCE: The provisions of this Part 4 contained in Order 141, 12 FR 8485, Dec. 19, 1947, unless otherwise noted.

DETERMINATION OF COST OF PROJECTS CONSTRUCTED UNDER LICENSE

§ 4.1

Initial cost statement.

When a project is constructed under a license issued under the act, the licensee shall file within 1 year after the original project is ready for service, an initial statement, under oath, with four additional conformed copies thereof, showing the amount claimed by the licensee as the actual legitimate cost of construction of the original project and the price paid for water rights, rights-of-way, landa or interests in lands, in such detail and on such forms as the Commission may prescribe or approve for that purpose. Bimilar statements with respect to additions and betterments to the original project, as of December 31, shall be filed annually in the same manner, before April 1 of the following year, unless the Commission shall otherwise direct. Prescribed forms for stating the cost of the original project and of additions thereto and betterments thereof will be furnished by the Commission upon application by the licensee.

§ 4.5

Time for filing protest.

Thirty days after service thereof will be allowed to such licensee within which to file a protest to such reports. If no protest is filed within the time allowed, the Commission will issue such order as may be appropriate. If a protest is filed, a public hearing will be ordered in accordance with § 1.20 of this chapter.

CROSS REFERENCE: For protests, see § 1.10 of this chapter.

§ 4.6 Burden of proof.

The burden of proof to sustain each item of the statement of claimed cost as filed shall be upon the licensee and only such items as are in the opinion of the Commission supported by satisfactory proof may be entered in the electric plant accounts of the licensee.

§ 4.7 Finding and final statement.

Final action by the Commission will be in the form of a finding and order entered upon its minutes and served upon all parties to the proceeding. The licensee shall thereafter file a final statement, under oath, in duplicate, with two additional conformed copies thereof, showing actual legitimate cost revised in conformity with the order of the Commission, together with a statement showing that its records have been revised in conformity with such order.

DETERMINATION OF FAIR VALUE OF CONSTRUCTED PROJECTS, UNDER SECTION 23 (a) OF THE ACT

$4.10 Valuation data.

In every case arising under section 23 (a) of the act requiring the determination of fair value of a project already constructed, the licensee shall, within 6 months after the date of issuance of lcense, file with the Commission an inventory and appraisal in detail, as of the effective date of the license, of all property subject thereto and to be valued. Such inventory and appraisal shall also show or shall be accompanied by a statement showing the actual legitimate, or if not known, the estimated original cost of the property, by prescribed structural and functional items and units; an estimate of the accrued depreciation segregated as to each separate major item or unit of property; and such other detail as the Commission may require in any particular under case. An original, oath, and four copies of the documents described above shall be submitted on forms to be prescribed or approved by the Commission prior to such submission. § 4.11

Reports.

Representatives of the Commission will inspect the project works, engineering reports, and other records of the project, check the inventory and make an appraisal of the property and an audit of the books, records, and accounts of the licensee relating to the property to be valued, and will prepare a report of their findings with respect to the inventory, appraisal, original cost, accrued depreciation, and fair value of the property. § 4.12 Service of report.

A copy of such report will be served by registered mail upon said licensee, and copies will also be sent to the State public service commission, or if the State has no regulatory agency, to the governor of the State where such project is located. The report will be made available for public inspection at the time of service upon the licensee.

§ 4.13 Time for filing protest.

Thirty days after service thereof will be allowed to the licensee within which to file a protest to such report.

CROSS REFERENCE: For protests, see § 1.10 of this chapter.