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U.S. Code as of:
01/19/04
Section 838l. Bonneville Power Administration refinancing
(a) Definitions
For the purposes of this section -
(1) "Administrator" means the Administrator of the Bonneville
Power Administration;
(2) "capital investment" means a capitalized cost funded by
Federal appropriations that -
(A) is for a project, facility, or separable unit or feature
of a project or facility;
(B) is a cost for which the Administrator is required by law
to establish rates to repay to the United States Treasury
through the sale of electric power, transmission, or other
services;
(C) excludes a Federal irrigation investment; and
(D) excludes an investment financed by the current revenues
of the Administrator or by bonds issued and sold, or authorized
to be issued and sold, by the Administrator under section 838k
of this title;
(3) "new capital investment" means a capital investment for a
project, facility, or separable unit or feature of a project or
facility, placed in service after September 30, 1996;
(4) "old capital investment" means a capital investment the
capitalized cost of which -
(A) was incurred, but not repaid, before October 1, 1996, and
(B) was for a project, facility, or separable unit or feature
of a project or facility, placed in service before October 1,
1996;
(5) "repayment date" means the end of the period within which
the Administrator's rates are to assure the repayment of the
principal amount of a capital investment; and
(6) "Treasury rate" means -
(A) for an old capital investment, a rate determined by the
Secretary of the Treasury, taking into consideration prevailing
market yields, during the month preceding October 1, 1996, on
outstanding interest-bearing obligations of the United States
with periods to maturity comparable to the period between
October 1, 1996, and the repayment date for the old capital
investment; and
(B) for a new capital investment, a rate determined by the
Secretary of the Treasury, taking into consideration prevailing
market yields, during the month preceding the beginning of the
fiscal year in which the related project, facility, or
separable unit or feature is placed in service, on outstanding
interest-bearing obligations of the United States with periods
to maturity comparable to the period between the beginning of
the fiscal year and the repayment date for the new capital
investment.
(b) New principal amounts
(1) Principal amount
Effective October 1, 1996, an old capital investment has a new
principal amount that is the sum of -
(A) the present value of the old payment amounts for the old
capital investment, calculated using a discount rate equal to
the Treasury rate for the old capital investment; and
(B) an amount equal to $100,000,000 multiplied by a fraction
whose numerator is the principal amount of the old payment
amounts for the old capital investment and whose denominator is
the sum of the principal amounts of the old payment amounts for
all old capital investments.
(2) Determination
With the approval of the Secretary of the Treasury based solely
on consistency with this section, the Administrator shall
determine the new principal amounts under subsection (b) of this
section and the assignment of interest rates to the new principal
amounts under subsection (c) of this section.
(3) Old payment amounts
For the purposes of this subsection, "old payment amounts"
means, for an old capital investment, the annual interest and
principal that the Administrator would have paid to the United
States Treasury from October 1, 1996, if this section had not
been enacted, assuming that -
(A) the principal were repaid -
(i) on the repayment date the Administrator assigned before
October 1, 1994, to the old capital investment, or
(ii) with respect to an old capital investment for which
the Administrator has not assigned a repayment date before
October 1, 1994, on a repayment date the Administrator shall
assign to the old capital investment in accordance with
paragraph 10(d)(1) of the version of Department of Energy
Order RA 6120.2 in effect on October 1, 1994; and
(B) interest were paid -
(i) at the interest rate the Administrator assigned before
October 1, 1994, to the old capital investment, or
(ii) with respect to an old capital investment for which
the Administrator has not assigned an interest rate before
October 1, 1994, at a rate determined by the Secretary of the
Treasury, taking into consideration prevailing market yields,
during the month preceding the beginning of the fiscal year
in which the related project, facility, or separable unit or
feature is placed in service, on outstanding interest-bearing
obligations of the United States with periods to maturity
comparable to the period between the beginning of the fiscal
year and the repayment date for the old capital investment.
(c) Interest rate for new principal amounts
As of October 1, 1996, the unpaid balance on the new principal
amount established for an old capital investment under subsection
(b) of this section bears interest annually at the Treasury rate
for the old capital investment until the earlier of the date that
the new principal amount is repaid or the repayment date for the
new principal amount.
(d) Repayment dates
As of October 1, 1996, the repayment date for the new principal
amount established for an old capital investment under subsection
(b) of this section is no earlier than the repayment date for the
old capital investment assumed in subsection (b)(3)(A) of this
section.
(e) Prepayment limitations
During the period October 1, 1996, through September 30, 2001,
the total new principal amounts of old capital investments, as
established under subsection (b) of this section, that the
Administrator may pay before their respective repayment dates shall
not exceed $100,000,000.
(f) Interest rates for new capital investments during construction
(1) New capital investment
The principal amount of a new capital investment includes
interest in each fiscal year of construction of the related
project, facility, or separable unit or feature at a rate equal
to the one-year rate for the fiscal year on the sum of -
(A) construction expenditures that were made from the date
construction commenced through the end of the fiscal year, and
(B) accrued interest during construction.
(2) Payment
The Administrator is not required to pay, during construction
of the project, facility, or separable unit or feature, the
interest calculated, accrued, and capitalized under subsection
(f)(1) of this section.
(3) One-year rate
For the purposes of this section, "one-year rate" for a fiscal
year means a rate determined by the Secretary of the Treasury,
taking into consideration prevailing market yields, during the
month preceding the beginning of the fiscal year, on outstanding
interest-bearing obligations of the United States with periods to
maturity of approximately one year.
(g) Interest rates for new capital investments
The unpaid balance on the principal amount of a new capital
investment bears interest at the Treasury rate for the new capital
investment from the date the related project, facility, or
separable unit or feature is placed in service until the earlier of
the date the new capital investment is repaid or the repayment date
for the new capital investment.
(h) Omitted
(i) Contract provisions
In each contract of the Administrator that provides for the
Administrator to sell electric power, transmission, or related
services, and that is in effect after September 30, 1996, the
Administrator shall offer to include, or as the case may be, shall
offer to amend to include, provisions specifying that after
September 30, 1996 -
(1) the Administrator shall establish rates and charges on the
basis that -
(A) the principal amount of an old capital investment shall
be no greater than the new principal amount established under
subsection (b) of this section;
(B) the interest rate applicable to the unpaid balance of the
new principal amount of an old capital investment shall be no
greater than the interest rate established under subsection (c)
of this section;
(C) any payment of principal of an old capital investment
shall reduce the outstanding principal balance of the old
capital investment in the amount of the payment at the time the
payment is tendered; and
(D) any payment of interest on the unpaid balance of the new
principal amount of an old capital investment shall be a credit
against the appropriate interest account in the amount of the
payment at the time the payment is tendered;
(2) apart from charges necessary to repay the new principal
amount of an old capital investment as established under
subsection (b) of this section and to pay the interest on the
principal amount under subsection (c) of this section, no amount
may be charged for return to the United States Treasury as
repayment for or return on an old capital investment, whether by
way of rate, rent, lease payment, assessment, user charge, or any
other fee;
(3) amounts provided under section 1304 of title 31 shall be
available to pay, and shall be the sole source for payment of, a
judgment against or settlement by the Administrator or the United
States on a claim for a breach of the contract provisions
required by this Part;(!1) and
(4) the contract provisions specified in this Part (!1) do not
-
(A) preclude the Administrator from recovering, through rates
or other means, any tax that is generally imposed on electric
utilities in the United States, or
(B) affect the Administrator's authority under applicable
law, including section 839e(g) of this title, to -
(i) allocate costs and benefits, including but not limited
to fish and wildlife costs, to rates or resources, or
(ii) design rates.
(j) Savings provisions
(1) Repayment
This section does not affect the obligation of the
Administrator to repay the principal associated with each capital
investment, and to pay interest on the principal, only from the
"Administrator's net proceeds," as defined in section 838k(b) of
this title.
(2) Payment of capital investment
Except as provided in subsection (e) of this section, this
section does not affect the authority of the Administrator to pay
all or a portion of the principal amount associated with a
capital investment before the repayment date for the principal
amount.
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