[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: 18CFR11.12]

[Page 182]
 
           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. 11.12  Determination of section 10(f) costs.

    (a) for non-Federal headwater projects. If the headwater project was 
constructed by a licensee or pre-1920 permittee and a party requests the 
Commission to determine charges, the Commission will determine on a 
case-by-case basis what portion of the annual interest, maintenance, and 
depreciation costs of the headwater project constitutes the section 
10(f) costs, for purposes of this subpart.
    (b) For Federal headwater projects. (1) If the headwater project was 
constructed or is operated by the United States, and the Commission has 
not approved a settlement between the downstream project owner and the 
headwater project owner, the section 10(f) cost will be determined by 
deriving, from information provided by the headwater project owner 
pursuant to Sec. 11.16 of this subpart, the joint-use power cost and 
the portion of the annual joint-use power cost that represents the 
interest, maintenance, and depreciation costs of the project.
    (2) If power is not an authorized function of the headwater project, 
the section 10(f) cost is the annual interest, maintenance, and 
depreciation portion of the headwater project costs designated as the 
joint-use power cost, derived by deeming a power function at the 
project. The value of the benefits assigned to the deemed power 
function, for purposes of determining the value of remaining benefits of 
the joint-use power cost, is the total value of downstream energy gains 
included in the headwater benefits formula.
    (3) For purposes of this paragraph, total value of downstream energy 
gains means the lesser of:
    (i) The cost of generating an equivalent amount of electricity at 
the most likely alternative facility at the time the headwater project 
became operational; or
    (ii) The incremental cost of installing electrical generation at the 
headwater project at the time the project became operational.

[[Page 183]]