[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: 18CFR11.17]

[Page 185-186]
 
           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. 11.17  Procedures for payment of charges and costs.

    (a) Payment for benefits from a non-Federal headwater project. Any 
billing procedures and payments determined between a non-Federal 
headwater project owner and a downstream project owner will occur 
according to the agreement of those parties.
    (b) Charges and payment for benefits from a Federal headwater 
project--(1) Interim charges. (i) If the Commission has not established 
a final charge and an investigation is pending, the Commission will 
issue a downstream project owner a bill for the interim charge and costs 
and a staff report explaining the calculation of the interim charge.
    (ii) An interim charge will be a percentage of the estimate by the 
Commission staff of what the final charge will be, as follows:
    (A) 100 percent of the estimated final charge if the Commission 
previously

[[Page 186]]

has completed an investigation of the project for which it is assessed; 
or
    (B) 80 percent of the estimated final charge if the Commission has 
not completed an investigation of the project for which it is assessed.
    (iii) When a final charge is established for a period for which an 
interim charge was paid, the Commission will apply the amount paid to 
the final charge.
    (2) Preliminary assessment of a final charge. Unless the project 
owner was assessed a final charge in the previous year, the Commission 
will issue to the downstream project owner a preliminary assessment of 
any final charge when it is determined. A staff technical report 
explaining the basis of the assessment will be enclosed with the 
preliminary assessment. Copies of the preliminary assessment will be 
mailed to all parties.
    (3) Opportunity to respond. After issuance of a preliminary 
assessment of a final charge, parties may respond in writing within 60 
days after the preliminary assessment.
    (4) Order and bill. (i) After the opportunity for written response 
by the parties to the preliminary assessment of a final charge, the 
Commission will issue to the downstream project owner an order 
establishing the final charge. Copies of the order will be mailed to all 
parties. A bill will be issued for the amount of the final charge and 
costs.
    (ii) If a final charge is not established prospectively under 
paragraph (b)(5) of this section, the Commission will issue an order and 
a bill for the final charge and costs each year until prospective final 
charges are established. After the Commission issues an order 
establishing a prospective final charge, a bill will be issued annually 
for the amount of the final charge and costs.
    (5) Prospective final charges. When the Commission determines that 
historical data, including the hydrology, development, and other 
characteristics of the river basin, demonstrate sufficient stability to 
project average energy gains and section 10(f) costs, the Commission 
will issue to the downstream project owner an order establishing the 
final charge from future years. Copies of the order will be mailed to 
all parties. The prospective final charge will remain in effect until a 
new investigation is initiated under Sec. 11.15(d)(2).
    (6) Payment under protest. Any payment of a final charge required by 
this section may be made under protest if a party is also appealing the 
final charge pursuant to Sec. 385.1902, or requesting rehearing. If 
payment is made under protest, that party will avoid any penalty for 
failure to pay under Sec. 11.21.
    (7) Accounting for payments pending appeal or rehearing. The 
Commission will retain any payment received for final charges from bills 
issued pursuant to this section in a special account. No disbursements 
to the U.S. Treasury will be made from the account until 31 days after 
the bill is issued. If an appeal under Sec. 385.1902 or a request for 
rehearing is filed by any party, no disbursements to the U.S. Treasury 
will be made until final disposition of the appeal or request for 
rehearing.
    (c) Charges for costs of determinations of headwater benefits 
charges. (1) Any owner of a downstream project that benefits from a 
Federal headwater project must pay to the United States the cost of 
making any investigation, study, or determination relating to the 
assessment of the relevant headwater benefits charge under this subpart.
    (2) If any owner of a headwater or downstream project requests that 
the Commission determine headwater benefits charges for benefits 
provided by non-Federal headwater projects, the headwater project owners 
must pay a pro rata share of 50 percent of the cost of making the 
investigation and determination, in proportion to the benefits provided 
by their projects, and the downstream project owners must pay a pro rata 
share of the remaining 50 percent in proportion to the energy gains 
received by their projects.
    (3) Any charge assessed under this paragraph is separate from and 
will be added to, any final or interim charge under this subpart.