16 U.S.C. § 832d

Contracts for sale of electricity

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(a) Authorization of Administrator; contents of contracts

Subject to the provisions of this chapter and to such rate schedules as the Secretary of Energy may approve, as provided in this chapter, the administrator shall negotiate and enter into contracts for the sale at wholesale of electric energy, either for resale or direct consumption, to public bodies and cooperatives and to private agencies and persons and for the disposition of electric energy to Federal agencies. Contracts for the sale of electric energy to any private person or agency other than a privately owned public utility engaged in selling electric energy to the general public, shall contain a provision forbidding such private purchaser to resell any of such electric energy so purchased to any private utility or agency engaged in the sale of electric energy to the general public, and requiring the immediate canceling of such contract of sale in the event of violation of such provision. Contracts entered into under this subsection shall be binding in accordance with the terms thereof and shall be effective for such period or periods, including renewals or extensions, as may be provided therein, not exceeding in the aggregate twenty years from the respective dates of the making of such contracts. Contracts entered into under this subsection shall contain (1) such provisions as the administrator and purchaser agree upon for the equitable adjustment of rates at appropriate intervals, not less frequently than once in every five years, and (2) in the case of a contract with any purchaser engaged in the business of selling electric energy to the general public, the contract shall provide that the administrator may cancel such contract upon five years’ notice in writing if in the judgment of the administrator any part of the electric energy purchased under such contract is likely to be needed to satisfy the requirements of the said public bodies or cooperatives referred to in this chapter, and that such cancelation may be with respect to all or any part of the electric energy so purchased under said contract to the end that the preferential rights and priorities accorded public bodies and cooperatives under this chapter shall at all times be preserved. Contracts entered into with any utility engaged in the sale of electric energy to the general public shall contain such terms and conditions, including among other things stipulations concerning resale and resale rates by any such utility, as the administrator may deem necessary, desirable or appropriate to effectuate the purposes of this chapter and to insure that resale by such utility to the ultimate consumer shall be at rates which are reasonable and nondiscriminatory. Such contracts shall also require such utility to keep on file in the office of the administrator a schedule of all its rates and charges to the public for electric energy and such alterations and changes therein as may be put into effect by such utility.

(b) Exchange of excess power

The administrator is authorized to enter into contracts with public or private power systems for the mutual exchange of unused excess power upon suitable exchange terms for the purpose of economical operation or of providing emergency or break-down relief.

(Aug. 20, 1937, ch. 720, § 5, 50 Stat. 734; Oct. 23, 1945, ch. 433, § 2, 59 Stat. 546; Pub. L. 95–91, title III, § 301(b), Aug. 4, 1977, 91 Stat. 578.)Editorial NotesAmendments

1945—Subsec. (a). Act Oct. 23, 1945, inserted “and for the disposition of electric energy to Federal agencies” in first sentence.

Statutory Notes and Related SubsidiariesTransfer of Functions

“Secretary of Energy” substituted for “Federal Power Commission” in subsec. (a) pursuant to Pub. L. 95–91, § 301(b), which is classified to section 7151(b) of Title 42, The Public Health and Welfare.

Functions of Secretary of the Interior with respect to Bonneville Power Administration transferred to Secretary of Energy by section 7152(a)(1)(D), (2) of Title 42, with Bonneville Power Administration to be preserved as a distinct organizational entity within Department of Energy and headed by an Administrator.

The Federal Power Commission was terminated, and its functions, personnel, property, funds, etc., were transferred to the Secretary of Energy (except for certain functions which were transferred to the Federal Energy Regulatory Commission) by sections 7151(b), 7171(a), 7172(a), 7291, and 7293 of Title 42.

Executive DocumentsTransfer of Functions

Executive and administrative functions of Federal Power Commission, with certain reservations, transferred to Chairman of such Commission, with authority vested in him to authorize their performance by any officer, employee, or administrative unit under his jurisdiction, by Reorg. Plan No. 9 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out as a note under section 792 of this title.

For transfer of functions of other officers, employees, and agencies of Department of the Interior, with certain exceptions, to Secretary of the Interior, with power to delegate, see Reorg. Plan No. 3 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3174, 64 Stat. 1262, set out in the Appendix to Title 5, Government Organization and Employees.

Notes of Decisions

Cited in 18 cases (1 in the last 5 years), 1977–2024 · leading case: Association of Public Agency Customers v. Bonneville Power Administration

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Association of Public Agency Customers v. Bonneville Power Administration (2013) ca9 · cites it 5× “In addition to arguing that the Settlement violates the NWPA, APAC also argues that the Settlement violates the Bonneville Project Act, 16 U.S.C. § 832d, and applicable FERC regulations, 18 C.”

Aluminum Co. of America v. Central Lincoln Peoples' Utility District (1984) scotus · cites it 4× “" § 5(a), 16 U. S. C. § 832d(a). In the early years of the Project Act, BPA's contract with each of its customers obligated BPA to supply the customer's full contractual requirements on a "firm," noninterruptible basis.”

Southern California Edison v. United States (2003) uscfc · cites it 4× “” 16 U.S.C. § 832d(a). 11 Consequently, the jurisdiction of this Court under the Tucker Act and the Contract Disputes Act is neither ousted nor supplanted by the jurisdiction of the Ninth Circuit under 16 U.”

Portland General Electric Co. v. Bonneville Power Administration (2007) ca9 · cites it 2× “See 16 U.S.C. § 832d. Without § 5(c), there are no REP “claims” to be settled; and without REP claims, there can be no “settlement.”

Puget Sound Power & Light Co. v. United States (1991) cc · cites it 3× “” 16 U.S.C. § 832d(a). Between 1976 and 1988, Puget entered into such contracts for the wholesale purchase of federal electrical power.”

Pacific Gas and Electric Company v. FERC (2024) cadc “” 16 U.S.C. § 832d. In other instances, Congress distinguishes between ultimate consumers and classes or groups of consumers.”

Golden Northwest Aluminum, Inc. v. Bonneville Power Administration (2007) ca9 “the Project Act makes clear that the contract is ‘binding in accordance with the terms thereof ” (quoting 16 U.S.C. § 832d(a))). BPA took this language to mean that, once it had satisfied the needs of its preference customers, it could use any remaining FBS resources — including…”

Utility Reform Project v. Bonneville Power Administration (1989) ca9 · cites it 9× “The significant issues they present may be consolidated as follows: (1) Is the purported exchange of power between BPA and the IOUs actually a “sale” of power to the IOUs, entered without adherence to restrictions on sales found in § 5(a) of the Bonneville Project Act, 16 U.S.C.…”

Spence v. Smyth (1984) wyo · cites it 2× “* * *" 16 U.S.C. § 832d(a), p. 10. 16 U.”

Southern California Edison v. United States (2005) uscfc · cites it 2× “” 16 U.S.C. § 832d(a). 9 *9 These extra-statutory contracting actions on the part of BPA do not fah under 16 U.”

Natural Resources Defense Council, Inc. v. Hodel (1977) ord “…. 16 U.S.C. § 832d. 6 . The one exception is the Bureau of Reclamation’s Green Springs project in Oregon. <div class="footnote"”

Blachly-Lane Electric Cooperative Ass'n v. U.S. Dept. of Energy (2003) ca9 “This statute states that within nine months of December 5, 1980, the Administrator of the BPA shall offer long term contracts to its customers, within the limitations of 16 U.S.C. § 832d(a). Section 832d(a) states that the terms of these contracts may not exceed twenty years.”

Show all 18 citing cases →

— 16 U.S.C. § 832d(a) — 15 cases

Aluminum Co. of America v. Central Lincoln Peoples' Utility District (1984) scotus “" § 5(a), 16 U. S. C. § 832d(a). In the early years of the Project Act, BPA's contract with each of its customers obligated BPA to supply the customer's full contractual requirements on a "firm," noninterruptible basis.”

Southern California Edison v. United States (2003) uscfc “” 16 U.S.C. § 832d(a). 11 Consequently, the jurisdiction of this Court under the Tucker Act and the Contract Disputes Act is neither ousted nor supplanted by the jurisdiction of the Ninth Circuit under 16 U.”

Association of Public Agency Customers v. Bonneville Power Administration (2013) ca9 “In addition to arguing that the Settlement violates the NWPA, APAC also argues that the Settlement violates the Bonneville Project Act, 16 U.S.C. § 832d, and applicable FERC regulations, 18 C.”

Portland General Electric Co. v. Bonneville Power Administration (2007) ca9 “See 16 U.S.C. § 832d. Without § 5(c), there are no REP “claims” to be settled; and without REP claims, there can be no “settlement.”

Puget Sound Power & Light Co. v. United States (1991) cc “” 16 U.S.C. § 832d(a). Between 1976 and 1988, Puget entered into such contracts for the wholesale purchase of federal electrical power.”

— 16 U.S.C. § 832d(b) — 1 case

Utility Reform Project v. Bonneville Power Administration (1989) ca9 “The significant issues they present may be consolidated as follows: (1) Is the purported exchange of power between BPA and the IOUs actually a “sale” of power to the IOUs, entered without adherence to restrictions on sales found in § 5(a) of the Bonneville Project Act, 16 U.S.C.…”

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