[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: 18CFR11.10]

[Page 180-181]
 
           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 B_Charges for Headwater Benefits
 
Sec. 11.10  General provision; waiver and exemptions; definitions.

    Source: 51 FR 24318, July 3, 1986, unless otherwise noted.


    (a) Headwater benefits charges. (1) The Commission will assess or 
approve charges under this subpart for direct benefits derived from 
headwater projects constructed by the United States, a licensee, or a 
pre-1920 permittee. Charges under this subpart will amount to an 
equitable part of the annual costs of interest, maintenance, and 
depreciation expenses of such headwater projects and the costs to the 
Commission of determining headwater benefits charges. Except as provided 
in paragraph (b) of this section, the owner of any non-Federal 
downstream project that receives headwater benefits must pay charges 
determined under this subpart.
    (2) Headwater benefits are the additional electric generation at a 
downstream project that results from regulation of the flow of the river 
by the headwater, or upstream, project, usually by increasing or 
decreasing the release of water from a storage reservoir.
    (b) Waiver and exemptions. The owner of a downstream project with 
installed generating capacity of 1.5 MW (2000 horsepower) or less or for 
which the Commission has granted an exemption from section 10(f) is not 
required to pay headwater benefits charges.
    (c) Definitions. For purposes of this subpart:
    (1) Energy gains means the difference between the number of 
kilowatt-hours of energy produced at a downstream project with the 
headwater project and that which would be produced without the headwater 
project.
    (2) Generation means gross generation of electricity at a 
hydroelectric project, including generation needed for station use or 
the equivalent for direct drive units, measured in kilowatt-hours. It 
does not include energy used for or derived from pumping in a pumped 
storage facility.

[[Page 181]]

    (3) Headwater project costs means the total costs of an upstream 
project constructed by the United States, a licensee, or pre-1920 
permittee.
    (4) Separable cost means the difference between the cost of a 
multiple-function headwater project with and without any particular 
function.
    (5) Remaining benefits means the difference between the separable 
cost of a specific function in a multiple-function project and the 
lesser or:
    (i) The benefits of that function in the project, as determined by 
the responsible Federal agency at the time the project or function was 
authorized; or
    (ii) The cost of the most likely alternative single-function project 
providing the same benefits.
    (6) Joint-use cost means the difference between the total project 
cost and the total separable costs. Joint-use costs are allocated among 
the project functions according to each function's percentage of the 
total remaining benefits.
    (7) Specific power cost means that portion of the headwater project 
costs that is directly attributable to the function of power generation 
at the headwater project, including, but not limited to, the cost of the 
electric generators, turbines, penstocks, and substation.
    (8) Joint-use power cost means the portion of the joint-use cost 
allocated to the power function of the project.
    (9) Section 10(f) costs means the annual interest, depreciation, and 
maintenance expense portion of the joint-use power cost, including costs 
of non-power functions required by statute to be paid by revenues from 
the power function.
    (10) Party means:
    (i) The owner of a non-Federal downstream hydroelectric project 
which is directly benefited by a headwater project constructed by the 
United States, a licensee, or a pre-1920 permittee;
    (ii) The owner of a headwater project constructed by the United 
States, a licensee, or a pre-1920 permittee;
    (iii) An operating agency of, or an agency marketing power from, a 
headwater project constructed by the United States; or
    (iv) Any party, as defined in Sec. 385.102(c) of this chapter.
    (11) Final charge means a charge assessed on an annual basis to 
recover section 10(f) costs and which represents the final determination 
of the charge for the period for which headwater benefits are assessed. 
Final charges may be established retroactively, to finalize an interim 
charge, or prospectively.
    (12) Interim charge means a charge assessed to recover section 10(f) 
costs for a specified period of headwater benefits pending determination 
of a final charge for that period.
    (13) Investment cost means the sum of:
    (i) Project construction costs, including cost of land, labor and 
materials, cost of pre- and post-authorization investigations, and cost 
of engineering, supervision, and administration during construction of 
the project; and
    (ii) Interest during construction.