[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR11.1]

[Page 174-177]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 11_ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT--Table of Contents
 
 Subpart A_Charges for Costs of Administration, Use of Tribal Lands and 
           Other Government Lands, and Use of Government Dams
 
Sec. 11.1  Costs of administration.




 Subpart A_Charges for Costs of Administration, Use of Tribal Lands and 
           Other Government Lands, and Use of Government Dams

Sec.
11.1 Costs of administration.
11.2 Use of government lands.
11.3 Use of government dams, excluding pumped storage projects.
11.4 Use of government dams for pumped storage projects, and use of 
          tribal lands.
11.5 Exemption of minor projects.
11.6 Exemption of State and municipal licensees and exemptees.
11.7 Effective date.
11.8 Adjustment of annual charges.

                Subpart B_Charges for Headwater Benefits

11.10 General provision; waiver and exemption; definitions.
11.11 Energy gains method of determining headwater benefits charges.
11.12 Determination of section 10(f) costs.
11.13 Energy gains calculations.
11.14 Procedures for establishing charges without an energy gains 
          investigation.
11.15 Procedures for determining charges by energy gains investigation.
11.16 Filing requirements.
11.17 Procedures for payment of charges and costs.

                      Subpart C_General Procedures

11.20 Time for payment.
11.21 Penalties.

Appendix A to Part 11--Fee Schedule for FY 2004

    Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352.



    (a) Authority. Pursuant to section 10(e) of the Federal Power Act 
and section 3401 of the Omnibus Budget Reconciliation Act of 1986, the 
Commission will assess reasonable annual charges against licensees and 
exemptees to reimburse the United States for the costs of administration 
of the Commission's hydropower regulatory program.
    (b) Scope. The annual charges under this section will be charged to 
and allocated among:
    (1) All licensees of projects of more than 1.5 megawatts of 
installed capacity; and
    (2) All holders of exemptions under either section 30 of the Federal 
Power Act or sections 405 and 408 of the Public Utility Regulatory 
Policies Act of 1978, as amended by section 408 of the Energy Security 
Act of 1980, but only if the exemption was issued subsequent to April 
21, 1995 and is for a project of more than 1.5 megawatts of installed 
capacity.
    (3) If the exemption for a project of more than 1.5 megawatts of 
installed capacity was issued subsequent to April 21, 1995 but pursuant 
to an application filed prior to that date, the exemptee may credit 
against its annual charge any filing fee paid pursuant to Sec. 381.601 
of this chapter, which was removed effective April 21, 1995, 18 CFR 
381.601 (1994), until the total of all such credits equals the filing 
fee that was paid.
    (c) Licenses and exemptions other than State or municipal. For 
licensees and exemptees, other than State or municipal:
    (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 or exemptees, from which shall be deducted any administrative 
costs that are stated in the license or exemption or fixed by the 
Commission in determining headwater benefit payments.

[[Page 175]]

    (2) For each fiscal year the costs of administration determined 
under paragraph (c)(1) of this section will be assessed against such 
licenses or exemptee 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 and exemptions.
    (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 plus 112.5 times its annual energy output in millions 
of kilowatt-hours.
    (ii) For a pure pumped storage project the factor is its authorized 
installed capacity.
    (iii) For a mixed conventional-pumped storage project the factor is 
its authorized installed capacity plus 112.5 times its gross annual 
energy output in millions of kilowatt-hours less 75 times the annual 
energy used for pumped storage pumping in million of kilowatt-hours.
    (iv) For purposes of determining their annual charges factor, 
projects that are operated pursuant to an exemption will be deemed to 
have an annual energy output of zero.
    (4) To enable the Commission to determine such charges annually, 
each licensee whose authorized installed capacity exceeds 1.5 megawatts 
must file with the Commission, on or before November 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 fiscal year, 
expressed in kilowatt hours. If any licensee does not report the gross 
energy output of its project within the time specified above, the 
Commission's staff will estimate the energy output and this estimate may 
be used in lieu of the filings required by this section made by such 
licensee after November 1.
    (5) For unconstructed projects, the assessments start on the date of 
commencement of project construction. For constructed projects, the 
assessments start on the effective date of the license or exemption, 
except for any new capacity authorized therein. The assessments for new 
authorized capacity start on the date of commencement of construction of 
such new capacity. In the event that construction commences during a 
fiscal year, the charges will be prorated based on the date on which 
construction commenced.
    (d) State and municipal licensees and exemptees. For State or 
municipal licensees and exemptees:
    (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 and exemptees, from which shall be deducted any 
administrative costs that are stated in the license or exemption or that 
are fixed by the Commission in determining headwater benefit payments.
    (2) An exemption will be granted to a licensee or exemptee to the 
extent, if any, to which it may be entitled under section 10(e) of the 
Act provided the data is submitted as requested in paragraphs (d) (4) 
and (5) of this section.
    (3) For each fiscal year the total actual cost of administration as 
determined under paragraph (d)(1) of this section will be assessed 
against each such licensee or exemptee (except to the extent of the 
exemptions granted pursuant to paragraph (d)(2) of this section) in the 
proportion that the authorized installed capacity of each such project 
bears to the total such capacity under all such outstanding licenses or 
exemptions.
    (4) To enable the Commission to compute on the bill for annual 
charges the exemption to which State and municipal licensees and 
exemptees are entitled because of the use of power by the licensee or 
exemptee for State or municipal purposes, each such licensee or exemptee 
must file with the Commission, on or before November 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 fiscal 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.

[[Page 176]]

    (iii) Net amount of power available for sale or use by licensee or 
exemptee, classified as follows:
    (A) Used by licensee or exemptee.
    (B) Sold by licensee or exemptee.
    (5) When the power from a licensed or exempted project owned by a 
State or municipality enters into its electric system, making it 
impracticable to meet the requirements of this section with respect to 
the disposition of project power, such licensee or exemptee 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 
exemptee.
    (6) The assessments commence on the date of commencement of project 
operation. In the event that project operation commences during a fiscal 
year, the charges will be prorated based on the date on which operation 
commenced.
    (e) Transmission lines. For projects involving transmission lines 
only, the administrative charge will be stated in the license.
    (f) Maximum charge. No licensed or exempted project's annual charge 
may exceed a maximum charge established each year by the Commission to 
equal 2.0 percent of the adjusted Commission costs of administration of 
the hydropower regulatory program. For every project with an annual 
charge determined to be above the maximum charge, that project's annual 
charge will be set at the maximum charge, and any amount above the 
maximum charge will be reapportioned to the remaining projects. The 
reapportionment will be computed using the method outlined in paragraphs 
(c) and (d) of this section (but excluding any project whose annual 
charge is already set at the maximum amount). This procedure will be 
repeated until no project's annual charge exceeds the maximum charge.
    (g) Commission's costs. (1) With respect to costs incurred by the 
Commission, the assessment of annual charges will be based on an 
estimate of the costs of administration of Part I of the Federal Power 
Act that will be incurred during the fiscal year in which the annual 
charges are assessed. After the end of the fiscal year, the assessment 
will be recalculated based on the costs of administration that were 
actually incurred during that fiscal year; the actual costs will be 
compared to the estimated costs; and the difference between the actual 
and estimated costs will be carried over as an adjustment to the 
assessment for the subsequent fiscal year.
    (2) The issuance of bills based on the administrative costs incurred 
by the Commission during the year in which the bill is issued will 
commence in 1993. The annual charge for the administrative costs that 
were incurred in fiscal year 1992 will be billed in 1994. At the 
licensee's option, the charge may be paid in three equal annual 
installments in fiscal years 1994, 1995, and 1996, plus any accrued 
interest. If the licensee elects the three-year installment plan, the 
Commission will accrue interest (at the most recent yield of two-year 
Treasury securities) on the unpaid charges and add the accrued interest 
to the installments billed in fiscal years 1995 and 1996.
    (h) In making their annual reports to the Commission on their costs 
in administering Part I of the Federal Power Act, the United States Fish 
and Wildlife Service and the National Marine Fisheries Service are to 
deduct any amounts that were deposited into their Treasury accounts 
during that year as reimbursements for conducting studies and reviews 
pursuant to section 30(e) of the Federal Power Act.
    (i) Definition. As used in paragraphs (c) and (d) of this section, 
authorized installed capacity means the lesser of the ratings of the 
generator or turbine units. The rating of a generator is the product of 
the continuous-load capacity rating of the generator in kilovolt-amperes 
(kVA) and the system power factor in kW/kVA. If the licensee or exemptee 
does not know its power factor, a factor of 1.0 kW/kVA will be used. The 
rating of a turbine is the product of the turbine's capacity in 
horsepower (hp) at best gate (maximum efficiency point) opening under 
the manufacturer's rated head times a conversion factor of 0.75 kW/hp. 
If the generator or turbine installed has a rating different from that 
authorized in the license or exemption, or the installed generator is 
rewound or otherwise

[[Page 177]]

modified to change its rating, or the turbine is modified to change its 
rating, the licensee or exemptee must apply to the Commission to amend 
its authorized installed capacity to reflect the change.
    (j) Transition. For a license having the capacity of the project for 
annual charge purposes stated in horsepower, that capacity shall be 
deemed to be the capacity stated in kilowatts elsewhere in the license, 
including any amendments thereto.

[60 FR 15047, Mar. 22, 1995, as amended by Order 584, 60 FR 57925, Nov. 
24, 1995]