any understanding for such ownership by or subvention from any foreign government? If so, give full details;

(b) A general or key map on a scale not greater than 20 miles to the inch, showing the physical location and giving a full description of the facilities employed, or to be employed in the transmission of electric energy between the United States and a foreign country. The map should indicate with particularity the ownership of the facilities at or on each side of the border between United States and the foreign country. (c) Statement describing every existing contract that applicant has with a foreign government, or private concerns, which in any way relate to the control or fixing of rates for the purchase, sale or transmission of electric energy and which may serve in any way to restrict or prevent competing American companies from extending their activities; also, attach certified copies of such contracts;

(d) Copies of every landing license, or permit. which has been granted applicant, or any predecessor, by a foreign government or by any of its agencies, in connection with the transmission of electric energy between the United States and a foreign country.

[Order 141, 12 F.R. 8494. Dec. 19. 1947, as amended by Order 427, 36 F.R. 5596, Mar. 25. 1971]

The applicant shall furnish such additional information, in connection with the application, as the Commission may deem pertinent.

APPLICATIONS FOR COMMISSION EMERGENCY AUTHORIZATION PURSUANT TO SECTION 202(c) OF THE FEDERAL, POWER ACT § 32.60 Applicability of section 202(c).

Section 202(c) is applicable to all entities which own or operate electric generation, transmission or distribution facilities, regardless of whether they are investor owned, publicly owned or cooperatively owned. All are subject to Commission emergency authority conferred by this Section. Initial Commission authorizations under 202(c) shall be for such durations and upon such terms and conditions as specified by the Commission. The Commission retains the right to cancel, modify or otherwise change a 202(c) authorization at any time.

[Order 520, 39 FR 42909, Dec. 9, 1974]

§ 32.61

Application under 202(c), Filing Fees, Exhibits and Other Administrative Matters.

Every application under Section 202 (c) of the Federal Power Act shall be accompanied by the fee prescribed in Part 36 of this sub-chapter and shall set forth the following information:

(a) The exact legal name of the applicant and of all persons named as parties in the application;

(b) The name, title, and Post Office address of the person to whom correspondence in regard to the application shall be addressed;

(c) The state or states in which each entity named in the application operates, together with a brief description of the business of and territory, by counties and states, served by such entity;

(d) The full title and address of any state regulatory agency which exrcises regulatory control of any type over the parties listed in the application;

(e) Reasons why the proposed transfers of power and/or energy will be in the public interest, to include: A description of the problem situation and resource limitations which require electric power and/or energy transfers; a showing that without additional power or energy transfers the applicant will be unable to maintain electric utility service required in the public interest after allowing for reductions by the receiving applicant of electric load and energy demand that can be practicably accomplished consistent with public health, welfare and safety considerations; a statement of the firm amounts of electric power and energy received from and delivered to other systems under existing contracts (designated by FPC Rate Schedule designations, where applicable), and a showing that additional power and energy cannot be purchased despite diligent best efforts, including the steps, if any, that have been taken to secure voluntary interconnections and energy transfers;

(f) A listing of proposed sources and amounts of power and energy requested to be made available by Commission action. Applications for emergency authorization of the Commission shall be accompanied by a proposal of the applicant to compensate the generating or transmitting systems for the emergency services requested. These proposals shall be specific. Where the applicant proposes to compensate systems for emergency services at rates and charges on file with the

Commission pursuant to Part 35 of the Commission's Regulations Under the Federal Power Act, the application shall identify such rate schedules by filing electric utility and FPC rate schedule designation;

(g) Description of proposed temporary electric power interconnection (s), if any, showing proposed location, capacity, and type of emergency services requested. An electrical one-line diagram and a description of the necessary material or equipment shall be included. If no temporary electric interconnection facilities are proposed, comparable information shall be supplied listing all existing interconnection facilities and their electrical power transfer capacity and the type of emergency services requested;

(h) There shall be filed with the application and as a part thereof the following exhibits:

Exhibit A. A general or key map on a scale not greater than 33 miles to the inch showing (FPC Regional Maps properly marked are deemed to be adequate), in separate colors, the territory served by each entity named in the application, and the location of the facilities to be used for the generation and transmission of electric power and energy requested, indicating on said map the connection points between systems.

Exhibit B. Statement of the estimated construction costs of any proposed temporary interconnection facilities required of the applicant to implement the 202(c) emergency power transfer. A further statement estimating the expected operations and maintenance costs on an annualized basis shall be included.

(i) An original and six conformed coples of an application under §§ 32.60 to 32.62 shall be filed and shall conform, in all respects, to the requirements of §§ 1.15 through 1.17 of this chapter. Each entity designated as a potential source of emergency assistance in an application filed pursuant to this subsection interested State regulatory commissions having jurisdiction over the "potential scurce" and/or transmitting utilities, and the Regional Reliability Council for the applicant's area shall, at the time of application, be served with a copy of the application by the applicant;

(j) The persons so designated and served by an applicant shall submit their answers to the Commisison and serve copies thereof on the interested State regulatory commissions and the Regional Reliability Council within 10 calendar days of the date of filing of the application unless otherwise directed by

the Commission's Secretary, and as part thereof, they shall analyze the impact of the required power and energy transfers upon their capabilities to provide for loads on their own systems; and

(k) A report to the Commission shall be rendered by the applicant not later than 10 days following the end of each month after a 202(c) authorization is granted. Copies thereof shall simultaneously be served on the interested State regulatory commisisons and the Regional Reliability Council. This report shall include the amounts of power and energy received each day, the name of the supplier, preliminary estimates of the associated costs and any other pertinent information requested by the Commission's Secretary.

(1) The Commission may require additional information when it appears to be pertinent in a particular case. See particularly § 32.62 (d) and (e).

[Order 520, 39 FR 42909, Dec. 9, 1974, as amended by Order 520-A, 40 FR 5145, Feb. 4, 1975]

§ 32.62 Emergencies Related to Inadequate Supplies of Fuel or Energy for Electric Generating Plants.

(a) Applicability. (1) This paragraph of the Commission Regulations applies specifically to applications covering claimed emergencies that result from a lack of the necessary fuel or energy supplies for electric generating plants. The provisions of this paragraph in no way restrict the Commission's broader authority to act upon any set of circumstances in which it deems that an emergency exists based upon the conditions listed in section 202(c) of the Federal Power Act;

(2) This paragraph shall be applicable for use only by applicant electric systems having electric generating equipment in normal system use whose operation will be adversely affected by a fuel or energy shortage emergency;

(3) Applications required to be filed under this § 32.62, shall, nevertheless, set forth all data as required in § 32.61.

(b) Additional Application Information. Applications for emergency authorization by the Commission by reason of a claimed emergency due to inadequate supplies of fuel or energy shall be accompanied by the following:

(1) Detailed statement of the amounts of firm electric power and energy received and delivered to other systems under exlisting contracts for the 60 day period

preceding the application (designated by FPC Rate Schedule, where applicable).

(c) Guidelines Defining Inadequate Fuel or Energy Supply. An inadequate utility system fuel inventory or energy supply is a matter of managerial and engineering judgment. Fuels in stock, fuels enroute, transportation time and constraints on available storage facilities and other factors must be considered in determining an inadequate fuel inventory. For guideline purposes, a system may be considered to have an inadequate fuel or energy supply capability when one or more of the following conditions exist and the projected energy deficiency upon the applicant's system-without emergency action by this Commissionwill equal or exceed 10 percent of the applicant's then normal daily net energy for load, or will cause applicant to be unable to meet its normal peak load requirements based upon use of all of its otherwise available resources, and such energy deficiency will require the applicant to drop loads to ultimate customers:

(1) System coal stocks are reduced to 30 days (or less) of normal burn days and a continued downward trend in stocks is projected;

(2) System residual oil stocks are reduced to 15 days (or less) of normal burn days and a continued downward trend in stocks is projected:

(3) System distillate of stocks are reduced to 15 days (or less) of normal burn days and a continued downward trend in stocks is projected;

(4) System natural gas deliveries which cannot be replaced by alternate fuels have been or will be reduced 20 percent below normal requirements and no improvement in natural gas deliveries is projected within 30 days 1:

(5) Delays in nuclear fuel deliveries will extend a scheduled refueling shutdown by more than 30 days; and

(6) Water supplies required for power generation have been or will be reduced 20 percent below normal requirements and no improvement in water supplies is projected within 30 days.

The use of the prescribed criteria do not preclude an applicant from seeking to claim and support an emergency when its stocks of fuel or water exceed the foregoing amounts.

(d) Factors to be Considered by the Commission in Declaring an Emergency. Among other factors, the Commission, in evaluating an application for emergency power and energy transfers under this § 32.62 will give consideration to the impact of the power and energy transfers on the supplying and transmitting systems. While the conditions of an emergency can vary greatly and, therefore, the Commission cannot be restricted in making decisions that are best suited to the circumstances, it contemplates that emergency power or energy transfers desirably should not result in the dropping of loads of ultimate customers of the supplying utility systems. However, data available to the Commission indicate that voluntary conservation and utility-initiated measures can effect significant reductions in load and energy requirements and consideration of a reasonable and equitable level of such reductions by the supplying system I will not be excluded from the Commission's review. The Commission recognizes that power pools and existing industry relationships are a basic tool in resolving energy shortages and the Commission will review the implementation of emergency procedures of individual pools and applicant systems in determining whether to invoke its emergency powers.

(e) Rates and Charges. The applicant and generating or transmitting systems from whom emergency service is requested to meet inadequate supplies of fuel or energy, are encouraged to utilize the rates and charges contained in existing rate schedules on file with the Commission, or to negotiate mutually satisfactory rates for the proposed transaction. In the event the Commission determines that an emergency exists under Section 202(c), and the parties are unable to agree on the terms of the service to be rendered and/or the rates to be charged, the Commission shall prescribe the conditions of service and the rates and charges. Moreover, the Commission may prescribe different rates, terms and conditions than those set forth in any agreement of the parties. In order that the parties may be guided in their negotiations as to the rate form and rate

level that the Commission may prescribe, should the parties be unable to agree, the following costing methods shall be utilized by the Commission, depending upon the service to be rendered:

(1) Fully allocated costs. If the service to be rendered has characteristics of firm service similar to that rendered by the supplier to its other customers, the generating and transmitting systems shall each be entitled to recover the following costs:

(i) An allocable portion of investment costs of its respective production plant, including return on investment, depreciation, income taxes, property and other taxes related to plant investment and insurance;

(ii) An allocable portion of investment costs of its respective transmission plant, including return on investment, depreciation, income taxes, property and other taxes related to plant investment and insurance;

(iii) Incremental cost associated with its respective generation of emergency service to meet inadequate supplies of fuel or energy. Incremental costs shall mean such operating and maintenance expenses incurred that would not have been otherwise incurred if such service had not been furnished. Such expenses shall include the incremental expenses incurred in the production of the energy so furnished, including incremental fuel expense (i.e., replacement fuel costs), incremental operating labor and supplies, incremental maintenance, labor and supplies, and incremental administrative and general expenses; and

(iv) Incremental costs incurred in its respective transmission of emergency service to meet inadequate supplies of fuel or energy, including incremental operating labor and supplies, incremental maintenance, labor and supplies, incremental administrative and general expenses, transmission network losses which shall include incremental (replacement) fuel expense, if any, in generating such losses, and any other related costs.

(2) Incremental costs plus additional compensation. If the service to he rendered is non-firm in nature, the generating and transmitting systems shall each be entitled to recover their respective incremental costs plus some additional reasonable compensation, as follows:

(i) Incremental costs associated with their respective generation of emergency

service to meet inadequate supplies of fuel or energy. Incremental costs shall mean such operating and maintenance expenses incurred that would not have been otherwise incurred if such service had not been furnished. Such expenses shall include the incremental expences incurred in the production of the energy so furnished, including incremental fuel expense (i.e., replacement fuel cost), incremental operating labor and supplies, incremental maintenance labor and supplies, and incremental administrative and general expense;

(ii) the incremental costs incurred in its respective transmission of emergency service to meet inadequate supplies of fuel or energy, including incremental operating labor and supplies, incremental maintenance labor and supplies, incremental administrative and general expenses, transmission network losses which shall include incremental (replacement) fuel expense, if any, in generating such losses, and any other related costs; and

(iii) as additional compensation to the generating and transmitting systems for the utilization of their respective facilities for the generation and transmission of such emergency service to meet inadequate supplies of fuel or energy, each of these systems shall be permitted some additional amount to compensate the supplier (A) for any and all risk associated with his need to replace the fuel burned for purposes of rendering the service; (B) for revenue reductions occasioned by any reduction in services to the supplier's own customers which would otherwise be applied to cover the sup. plier's costs associated with the services foregone; and (C) for costs associated with the environmental degradation resulting from the additional operation of the generating plants of the supplying system. In addition, a further component of such additional amount may be warranted where there is imprudence supported by evidence that the purchaser's emergency could have been eliminated or alleviated by actions that he could reasonably have been expected to take under the circumstances. In no case should the sum of these payments exceed the fully allocated costs of the supplying and transmitting systems.

(3) Share the savings. Where the parties seek to employ a share-the-savings method for non-firm service, the

following factors shall be taken into account:

(i) Incremental costs of generation, including:

(A) Incremental fuel costs for service rendered primarily from thermal generating sources, or, as in the Pacific Northwest, the incremental cost of generation from hydro-based operations shall be deemed to approximate the rate for dump hydro energy;

(B) Start-up costs; and

(C) Incremental operation, maintenance and administrative costs.

(ii) Decremental costs of generation replaced on the receiving system under conditions obtaining immediately prior to the onset of the shortage.

The price for fuel emergency service would be equal to the supplier's incremental generation costs, plus one-half of the difference between the costs to the purchaser (the supplier's incremental cost plus the sum of the transmission charges, by intermediate transmitting systems) and the purchaser's decremental costs.

(4) The foregoing do not preclude parties from proposing other methods, e.g., return-in-kind, or barter. [Order 520, 39 FR 42909, Dec. 9, 1974]

AUTHORITY: The provisions of this Part 33 issued under secs. 19, 20, 203, 204, 208, 308, 309, 41 Stat. 1073, 49 Stat. 849, 850, 853, 858; 16 U.S.C. 812, 813, 824b, 824c, 825g, 825h.

SOURCE: The provisions of this Part 33 contained in Order 141, 12 F.R. 8495, Dec. 19, 1947, unless otherwise noted.

CROSS REFERENCES: For rules of practice and procedure, see Part 1 of this chapter. For forms under rules of practice and regulations, Federal Power Act, see Part 131 of this chapter.

(a) The requirements of this Part will apply to public utilities seeking authority under section 203 of the Federal Power Act. This authority extends to

(1) The disposition by sale, lease or otherwise by a public utility of the whole of its electric facilities subject to Commission jurisdiction or any part thereof of a value in excess of $50,000.

(2) The merger or consolidation, directly or indirectly of the facilities subject to the Commission's jurisdiction with those of any other person having a value in excess of $50,000. This includes the acquisition by a public utility of electric facilities used for the transmission or sale at wholesale of electric energy in interstate commerce which, except for ownership, would be subject to Commission's jurisdiction.

(3) The purchase, acquisition or taking by a public utility of any security of any other public utility.

(b) Value in excess of $50,000 as used in section 203 of the Federal Power Act (16 U.S.C. 824b) shall be the original cost undepreciated as defined in the Commission's uniform system of accounts prescribed for public utilities and licensees.

[Order 397, 35 F.R. 5321, Mar. 31, 1970]