16 USC 838l - Bonneville Power Administration refinancing

U.S Code last checked for updates: Nov 22, 2024

§ 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

(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

(d)

Repayment dates

(e)

Prepayment limitations

(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

(3)

One-year rate

(g)

Interest rates for new capital investments

(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

(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);

(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);

(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) and to pay the interest on the principal amount under subsection (c), 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

 So in original. Probably should be “section;” or “section”.

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

(2)

Payment of capital investment

(Pub. L. 104–134, title III, § 3201, Apr. 26, 1996, 110 Stat. 1321–350.)

cite as: 16 USC 838l