or more of the States affected chooses to waive such right of equal representation. The Federal Power Commission will specify the functions to be performed by such board in each instance. When the member or members of any board have been nominated and appointed in accordance with the provisions of either section 209 of the Federal Power Act or section 17 of the Natural Gas Act, the Federal Power Commission will make an order referring the particular matter to such board, and such order shall fix the time and place of hearing, define the "force and effect" the action of the board shall have, the manner in which the proceedings shall be conducted, and specify the allowances to be made for the expense of the members of the board. As far as applicable, the rules of practice and procedure as from time to time adopted or prescribed by the Federal Power Commission shall govern such board. The board shall have authority to adjourn the hearing from day to day, subpena witnesses, rule on the relevancy, competency, and materiality of evidence, and shall, after hearing all interested parties, submit its report to the Federal Power Commission.

(e) Joint and concurrent hearings. (1) The term "joint hearing" used in sections 209 and 17, respectively, of the Federal Power and Natural Gas Acts is understood to cover any hearing in which members of the Federal Power Commission and members of one or more State commissions may sit together in a proceeding pending before one such commission, whether or not a proceeding or proceedings involving similar or corresponding issues be pending before any other commission.

(2) Two different types of proceedings have been called "joint hearings". One is that type of proceeding where members of one or more State commissions sit with members of the Federal Power Commission for information or in an advisory capacity. The State commissioners in such case do not develop a record for their respective commissions and may or may not, at their own discretion, make a recommendation to the Federal Power Commission. The other type of joint hearing is often referred to as a "concurrent hearing". Under this procedure the Federal Power Commission and one or more State commissions sit together to hear and jointly make a record upon a matter over which all of the participating commissions have jurisdiction and responsibility for action.

(3) The Federal Power Commission or any State commission or commissions should feel free to suggest or request a joint or concurrent hearing at any time. It is believed, however, that the concurrent hearing is the type of cooperative hearing which is likely to be most useful and effective.

(4) Whenever a concurrent hearing has been agreed upon by the Federal Power Commission and one or more State commissions, the procedure will be as follows:

(i) Each commission will designate the representative or representatives of such commission to sit at such concurrent hearing, and will designate the representative who will be the presiding officer for such commission.

(ii) It will be understood that participation in such concurrent hearing shall in no way affect the complete control by each commission of the proceeding before it. It will be understood, also, that participation in either a joint or concurrent hearing shall in no way preclude any commission from causing to be presented in any such case pertinent evidence with respect to matters in issue.

(iii) The representative designated by the Federal Power Commission will be the presiding officer to announce rulings with respect to which there is no disagreement; and all such rulings shall be considered concurrent rulings. However, the presiding officer for any commission which does not concur in any ruling may announce a divergent ruling and such divergent ruling, whether with respect to the admissibility of evidence or any other matter, shall be considered the ruling for his commission.

(iv) The record of the concurrent hearing shall be the record of each commission participating, except that, if divergent rulings are made, the rulings shall be so reported as to separate and distinguish clearly the record of the respective participating commissions and the evidence admitted in each record, in accordance with the rulings of the respective presiding officers of such participating commissions. If, in any proceeding, the ruling of one presiding officer has the effect of admitting any voluminous exhibit or testimony which is excluded by the ruling of another presiding officer, the taking of such evidence will, whenever possible be deferred until after the completion of all proceedings which can be conducted under concurrent rulings. When such testimony is

taken, the transcript of such evidence will be made available to all the participating commissions, if desired.

(v) In all respects concerning which there shall be no divergence of ruling, the hearing will be conducted in accordance with the rules of practice and procedure prescribed by the Federal Power Commission, subject to the express understanding that each participating State commission shall control its own record and make its own rulings as to the admissibility of evidence and as to other matters affecting its proceedings, and shall make its own separate final decision or order therein.

(5) Before either the Federal Power Commission or a participating State commission shall enter any order or orders in a concurrent proceeding, opportunity shall be afforded for conference between the Federal Power Commission and the State commission or commissions participating.

(6) Whenever a joint hearing other than a concurrent hearing shall be agreed upon, the commissions which will take part therein shall agree upon the procedure to be followed in such hearing in advance of the opening of the same. With respect to any concurrent hearing, a special agreement may be made by the commissions taking part therein for a procedure or action differing from that outlined in this plan.

(7) Cooperation between two or more commissions in a concurrent hearing shall preclude either from taking the position of an advocate or a litigant. If a commission wishes to take such a position, it will not be appropriate for that commission to be a cooperating participant in that proceeding. In such situation the appropriate method of procedure will be intervention under § 1.8.

(f) Intervention by State commissions. Any interested State commission may, as a matter of right, intervene in any proceeding before the Federal Power Commission, as provided in § 1.8.

(Sec. 209, 49 Stat. 856, sec. 17, 52 Stat. 830; 16 U.S.C. 824h, 15 U.S.C. 717p) [Order 141, 12 F.R. 8483, Dec. 19, 1947]

2.4

2.52

2.53 2.55

2.56

Suspension of rate schedules.
Certificate applications.

Definition of term used in section 7(c).
Area price levels for natural gas sales
by independent producers.

2.57 Temporary certificates-pipeline companies.

2.58 Budget-type certificate applicationsgas-purchase facilities.

2.59 Pipeline rate proceedings-procedure. 2.60 Facilities and activities during an emergency-accounting treatment of defense-related expenditures. 2.61 Pipeline companies-natural gas re

serves-deliverability life. 2.62 Pipeline certificate proceedings-procedure.

2.63 Express refund conditions in certain temporary certificates of public convenience and necessity issued to independent producers of natural gas. 2.64 Independent producers; transfer of producing acreage; procedure. 2.65 Applications for certificates of public convenience and necessity for gas transmission facilities to be installed in the off-shore southern Louisiana area.

2.66 Pricing of new gas produced by pipelines and pipeline affiliates.

STATEMENTS OF GENERAL POLICY AND INTERPRETATIONS OF THE COMMISSION

§ 2.1

Initial notice; service; and information copies of formal documents. (a) Whenever appropriate, publication of an initial notice or order in the FEDERAL REGISTER shall be the primary means of informing interested persons and the general public that the proceeding to which the notice or order relates has been instituted before the Commission. The mailing of individual copies shall be confined to that which is required by law, by the Commission's rules and regulations, or by other considerations deemed valid by the Secretary in specific instances.

(b) After notice has been given, the service of formal documents issued in a proceeding shall be confined to the parties of record or their attorneys, and the mailing of information copies shall be confined to that which is required by the Commission's rules and regulations, by courtesy in response to written re

AUTHORITY: The provisions of §§ 2.2 to 2.10 issued under sec. 309, 49 Stat. 858; 16 U.S.C. 825h, unless otherwise noted.

§ 2.2 Transmission lines.

In a public statement dated March 7, 1941, the Commission announced its determination that transmission lines which are not primary lines transmitting power from the power house or appurtenant works of a project to the point of junction with the distribution system or with the interconnected primary transmission system as set forth in section 3(11) of the act are not within the licensing authority of the Commission, and directed that future applications filed with it for such licenses be referred for appropriate action to the Federal department having supervision over the lands or waterways involved.

[Order 141, 12 F.R. 8471, Dec. 19, 1947. Redesignated by Order 147, 13 F.R. 8259, Dec. 23, 1948]

§ 2.4 Suspension of rate schedules.

The Commission approved and adopted on May 29, 1945, the following conclusions as to its powers of suspension of rate schedules under section 205 of the act:

(a) The Commission cannot suspend a rate schedule after its effective date.

(b) The Commission can suspend any new schedule making any change in an existing filed rate schedule, including any rate, charge, classification, or service, or in any rule, regulation, or contract relating thereto, contained in the filed schedule.

(c) Included in such changes which may be suspended are:

(1) Increases.
(2) Reductions.

(3) Discriminatory changes.

(4) Cancellation or notice of termination. (5) Changes in classification, service, rule, regulation or contract.

(d) An initial rate schedule cannot be suspended.

(e) Immaterial, unimportant or routine changes will not be suspended.

(f) During suspension, the prior existing rate schedule continues in effect and should not be changed during suspension.

(g) Changes under escalator clauses may be suspended as changes in existing filed schedules.

(h) Suspension of a rate schedule, within the ambit of the Commission's statutory authority is a matter within the discretion of the Commission.

[Order 141, 12 F.R. 8471, Dec. 19, 1947. Redesignated by Order 147, 13 F.R. 8259, Dec. 23, 1947]

§ 2.5 Filing of rate schedules by Public Utilities.

(a) The Commission has received a number of inquiries from public utilities who are presently engaged in reviewing the status of their wholesale power sales, in the light of the recent Supreme Court decision in the Colton case, Federal Power Commission v. Southern California Edison Company, 376 U.S. 205, 11 Led. 2d 638, decided March 2, 1964, as to the manner in which the Commission would expect to treat filings made with it of existing wholesale sales which had not previously been filed with this Commission. In response to such inquiries the Commission believes it appropriate to advise all public utilities that, while it of course cannot prejudge the possible rights of interested third parties, its primary objective is in insuring that the rate schedules for all jurisdictional sales are promptly filed with this agency, as required by law, and that where such rate schedules are filed with this agency by August 1, 1964, it does not intend on its own motion to initiate any inquiry into past failures to file such schedules.

(b) In accordance with this policy the Commission, in the absence of valid objection by any interested party, will permit all existing rate schedules to be filed as initial rate schedules pursuant to the provisions of § 35.1(b) of this chapter and will give favorable consideration to requests pursuant to the provisions of § 35.11 of this chapter to make such schedules effective as of the date of filing or such earlier date as the public utility may show is consistent with the public interest, if such filings are made on or before August 1, 1964. Moreover, while the Commission will carefully review all such filings to insure that they are consistent with the statutory standards, it is contemplated that any Commission action resulting from such review would normally be taken pursuant to the provisions of section 206 of the Federal Power Act.

(c) It is recognized that despite the Supreme Court's latest reiteration of the broad scope of this agency's jurisdiction over wholesale sales of public utilities,

there may remain some special situations in which a company engaged in the wholesale sale of electric energy, although it is interconnected with systems in other states directly or indirectly, will wish to contest its jurisdictional status as a public utility or the status of particular sales. However, the Commission's existing procedures provide full protection for such companies since they are free to file their wholesale rates with a reservation of the question of jurisdiction, which could then be adjudicated in an orderly way.

(Sec. 205, 49 Stat. 851; 16 U.S.C. 824d) [Order 282, 29 F.R. 5544, Apr. 25, 1964]

§ 2.7 Recreational development at licensed projects.

The Commission will evaluate the recreational resources of all projects under Federal license or applications therefor and seek, within its authority, the ultimate development of these resources, consistent with the needs of the area to the extent that such development is not inconsistent with the primary purpose of the project. Reasonable expenditures by a licensee for public recreational development pursuant to an approved plan, including the purchase of land, will be included as part of the project cost. The Commission will not object to licensees and operators of recreational facilities within the boundaries of a project charging reasonable fees to users of such facilities in order to help defray the cost of constructing, operating, and maintaining such facilities. The Commission expects the licensee to assume the following responsibilities:

(a) To acquire in fee and include within the project boundary enough land to assure optimum development of the recreational resources afforded by the project. To the extent consistent with the other objectives of the license, such lands to be acquired in fee for recreational purposes shall include the lands adjacent to the exterior margin of any project reservoir plus all other project lands specified in any approved recreational use plan for the project.

(b) To develop suitable public recreational facilities upon project lands and waters and to make provisions for adequate public access to such project facilities and waters.

(c) To encourage and cooperate with appropriate local, State, and Federal agencies and other interested entities in the determination of public recreation

needs and to cooperate in the preparation of plans to meet these needs, including those for sport fishing and hunting.

(d) To encourage governmental agencies and private interests, such as operators of user-fee facilities, to assist in carrying out plans for recreation, including operation and adequate maintenance of recreational areas and facilities.

(e) To cooperate with local, State, and Federal Government agencies in planning, providing, operating, and maintaining facilities for recreational use of public lands administered by those agencies adjacent to the project area.

(f) (1) To comply with Federal, State and local regulations for health, sanitation, and public safety, and to cooperate with law enforcement authorities in the development of additional necessary regulations for such purposes.

(2) To provide either by itself or through arrangement with others for adequate safety facilities or measures which include, but are not limited to, adequate vertical clearance under bridges and transmission lines, log booms or other protective devices at spillways and powerhouses, warning systems, buoys, lights, signals, signs, and fencing at licensed projects reservoirs and recreation facilities, as may be needed to ensure the safe operation of watercraft and the personal safety of visitors using project waters and lands for recreation purposes.

(3) To provide either by itself or through arrangement with others for facilities to process adequately sewage, litter, and other wastes from recreation facilities including wastes from watercraft.

(g) To ensure public access and recreational use of project lands and waters without regard to race, color, sex, religious creed or national origin.

(h) To inform the public of the opportunities for recreation at licensed projects, as well as of rules governing the accessibility and use of recreational facilities.

[Order 313, 30 F.R. 16198, Dec. 29, 1965 as amended by Order 375, 33 F.R. 17753, Nov. 28, 1968]

reflect changes, in lieu of filing rate schedule supplements.

(1) Identification-substitute sheets. (1) At the top right of the page, the sheet number may be designated as Revised Sheet No. .", followed by "Superseding Sheet No.

The first of these blanks would show the number of the revision (i.e., first, second, etc.) and the sheet number would be the same as the sheet replaced. The third and fourth blanks would be filled according to the numbering of the sheet replaced.

(ii) Sheets which are to be inserted between two consecutively numbered sheets may be designated "Original Sheet No. -", with the blank space filled with the appropriate number and a letter to indicate an insertion (i.e., between Sheet Nos. 1 and 2, Original Sheet No. 1a).

(iii) Customer agreement, if required, may be indicated on the bottom of the page, by the signature of the person authorized to agree to the proposed change. The name and title of the person authorized to file the substitute sheet may also be shown on the bottom of the page.

(b) Whenever pursuant to § 35.12 of this chapter an initial rate schedule filing is to be made, or whenever pursuant to 35.13 of this chapter a rate schedule is to be replaced in its entirety or extensively revised (for example if a large number of the pages are to be changed), public utilities may find it advantageous to use a simplified format, such as the following:

(1) Format. A brief service agreement setting forth such items as the name of the purchaser, service to be rendered, term of the agreement, and signatures of the parties. Applicable points of delivery and delivery voltages, applicable rates and charges and applicable terms and conditions may be incorporated in the agreement by reference to separate appendices attached thereto as follows:

(i) Appendix setting forth in detail delivery points, delivery voltages and metering voltages.

(ii) Appendix containing a statement of the rates and charges, set forth separately under appropriate headings such as: Demand charges, energy charges, billing demand determinants, power factor clauses, minimum bill provisions, etc.

(iii) Appendix containing terms and conditions, set forth separately under appropriate headings such as: services,