vestigates, and reports on claimed net investment in licensed projects and the disposition of related accounting adjustments. A section of the Division of Original Cost, located in the San Francisco Regional Office described above, audits and reports on the statements of claimed net investment in licensed projects in the western United States.

(3) The Division of Finance and Statistics. The Division of Finance and Statistics analyzes and reports on matters relating to electric utility finance, rate of return, security issues, sales and mergers of electric public utility properties; gathers and publishes financial, rate, cost, production, and other statistical information relating to the electric and natural gas industries.

(4) The Division of Rates. The Division of Rates investigates the operations, service lives of property, natural gas reserves, and makes cost allocation studies in rates cases involving electric public utilities, licensees, and natural gas companies; analyzes, reports on and makes recommendations regarding the rate schedules filled by electric public utilities, natural gas companies, and certain Federal hydroelectric power projects, including those under the control of the War Department.

(5) The Division of Gas Certificates. The Division of Gas Certificates handles matters relating to applications by natural gas companies and others for certificates of public convenience and necessity and the determination of service areas, the exportation and importation of natural gas, and the jurisdictional status of natural gas companies.

(d) The Bureau of Law. The Bureau of Law, under the direction of the General Counsel, performs the legal work related to the activities of the Commission. The Bureau is composed of four divisions, the work of which is described as follows:

(1) The Electric Power Division. The Electric Power Division performs the legal work under the Federal Power Act and the duties delegated to the Commission under the Bonneville Act, Tennessee Valley Authority Act, Fort Peck Act, and the other authorizations specified in §§ 01.1 (b) and (c), except those matters handled by the Hydroelectric Projects Division.

(2) The Natural Gas Division. The Natural Gas Division performs the legal

work under the Natural Gas Act and the other authorizations conferring duties or jurisdiction upon the Commission with respect to natural gas.

(3) The Hydroelectric Projects Division. The Hydroelectric Projects Division performs the legal work under Part I of the Federal Power Act and under the duties delegated to the Commission under the Flood Control Acts and the River and Harbor Acts specified in § 01.1 (b) (other than the determination of net investment in licensed projects, rate and service matters, and security issues of licensees under Part I of the Federal Power Act and rate matters under the Flood Control Act of 1944, which are handled by the Electric Power Division).

(4) The Interpretative and Research Division. The Interpretative and Research Division prepares legal interpretations and conducts legal research for the General Counsel and the Bureau generally; assists in the preparation of briefs, regulations, and reports on proposed legislation.

(e) The Division of Examiners. The Division of Examiners is under the direction of the Chief Examiner. Examiners, when duly designated, preside at prehearing conferences and make recommendations as to stipulations reached therein by counsel; preside at public hearings, and rule on the admission of evidence and all procedural questions arising in the course of such hearings; hear oral arguments; consider briefs; report to the Commission on the cases heard, and make initial or recommended decisions supported by findings of fact and conclusions of law. When serving as presiding officers, Examiners may exercise the functions specified in § 01.4 (f).

(f) The Publications Division. The Publications Division, under the direction of a Special Assistant to the Commission, edits Commission publications and handles their sale and other distribution; prepares and distributes general information concerning the activities of the Commission; and assists the Commission in contacts with the public.

(g) The Office of the Chief Engineer. The Office of the Chief Engineer, under the direction of the Chief Engineer, advises the Commission on special engineering matters, including economic studies and reports on the allocation of costs of multiple-purpose water control projects, and advises with the Bureau of Law on special engineering matters

in connection with litigation relating to water power projects.

(h) The Budget and Finance Division. The Budget and Finance Division, under the direction of the Chief of the Division, handles all budget, fiscal, and related matters of the Commission; solicits bids, awards contracts, and purchases supplies, equipment and other materials; assists the Commission in contacts with the Bureau of the Budget, the Comptroller General, and the Appropriation Committees of Congress.

(i) The Personnel and Administrative Services Division. The Personnel and Administrative Services Division, under the direction of the Chief of the Division, performs all personnel functions for the Commission, including recruitment; and all administrative services, including the preparation of illustrative and duplicative material for the other staff groups of the Commission.

PART 02-COURSE AND METHOD OF

Restoration of Government lands.

02.12 Field inspections and revocation of permits and licenses by court action. Approved forms, etc.

02.13

Rehearings.

Approved forms, etc.

02.74 Other matters.

FUNCTIONS UNDER OTHER AUTHORIZATIONS

02.81 Executive Order 8202.

AUTHORITY: §§ 02.0 to 02.81, inclusive, issued under sec. 309, 49 Stat. 858, sec. 16, 52 Stat. 830, sec. 3, 60 Stat. 238; 16 U. S. C. 825h, 15 U. S. C. 7170, 5 U. S. C. Sup. 1002.

SOURCE: §§ 02.0 to 02.81, inclusive, contained in Order 141, Federal Power Commission, Dec. 11, 1947, effective Jan. 1, 1948, 12 F.R. 8464.

CODIFICATION: Prior to recodification of the chapter, §§.02.3 and 02.4 were revised June 16, 1947, effective July 1, 1947, 12 F.R. 3991. The text is identical with that set forth in the recodification.

§ 02.0 Introduction. (a) This part indicates the general course and method by which the public functions of the

Commission are channeled and determined. Functions under Part I of the Federal Power Act, relating principally to the conservation of water power resources and the licensing of water power projects, are treated first; next, those under Parts II and III of the act, relating principally to the regulation of the transmission and sale for resale of electric energy in interstate commerce, and of public utilities engaged therein; followed by those under the Natural Gas Act, relating principally to the regulation of the transportation and sale for resale of natural gas in interstate commerce, and of natural-gas companies engaged therein. Functions under other authorizations are treated thereafter. Internal management functions within the Commission or the Federal Government are not included. References are given to the pertinent statutory provisions and other authorities under which the Commission acts. References are also given to the rules, regulations, and orders (published under this chapter and available in the FEDERAL REGISTER and the Code of Federal Regulations and the supplements thereto), showing the nature and requirements of all formal and informal procedures available, and forms and instructions as to the scope and contents of all papers, reports, and examinations.

(b) Appearance and practice before the Commissioners are subject to the provisions of § 1.4 of this chapter. All applications, complaints, declarations, petitions, pleadings, protests, reports, and other documents addressed to the Commission are received in the Office of the Secretary pursuant to § 1.14 of this chapter. The requirements for all such papers, and for notice and service thereof, are set forth in the pertinent rules. The Secretary assigns such material to the appropriate Bureaus for study and recommendation to the Commission, in accordance with the description of functions in Part 01 of this chapter.

(c) Whenever further information is required by the Commission or the staff, it may be sought by correspondence, field investigation, or hearing. Intervention

in proceedings before the Commission is provided for by § 1.8 of this chapter.

(d) In any proceeding, a party may request a conference for the submission and consideration of facts, arguments, offers of settlement, or proposals of adjustment where time, the nature of the

proceeding, and the public interest permit.

(e) Where no hearing is held, the Commission acts on the basis of the material filed and the staff studies and recommendations thereon. (See also § 1.32 of this chapter.) If a hearing is held under the Federal Power Act, the procedure described in § 02.39 is followed; if under the Natural Gas Act, the procedure described in § 02.69 is followed. Whether or not a hearing has been held, an application may be made for rehearing under the Federal Power Act in the manner described in § 02.42, or under the Natural Gas Act in the manner described in § 02.72.

FUNCTIONS UNDER PART I OF THE FEDERAL

POWER ACT

§ 02.1 Investigations. (a) Investigations under section 4 (a) of the act concerning water power resources and their utilization, are initiated by the Commission upon its own motion or request of another governmental agency. The staff work is performed by the Bureau of Power, with the participation of the Bureau of Law on the legal aspects thereof. Such investigations may be conducted in cooperation with other governmental agencies. After notice, a hearing may be held (see § 02.0).

(b) Investigations pursuant to section 4 (g) of the act to determine Federal jurisdiction over water power projects which may require authorization under the act, are initiated by the Commission upon its own motion, request of another Federal agency, or complaint. The staff work is performed by the Bureau of Power, with the participation of the Bureau of Law on the legal aspects thereof. Whenever it appears from such investigation that a license is required, the owner of the project may be so informed by the Secretary. If an application for license is not filed, an order to show cause therefor may be issued and a hearing held (see § 02.0).

§ 02.2 Declarations of intention. The requirements for declarations of intention to construct a dam or other project works, pursuant to section 23 (b) of the act, are stated in § 24.1 of this chapter. Notice of such declarations are given to interested public officials and State agencies. The declarations are referred to the Bureau of Power and to the Bureau of Law for studies to determine whether the interests of interstate or foreign

or municipal licensees for exemption from payment of such charges are similarly referred to the Bureau of Accounts, Finance and Rates. Petitions of both types are referred to the Bureau of Law for legal study and recommendation. After notice, a hearing may be held (see § 02.0).

§ 02.6 Cost or fair value determinations. Proceedings for the determination of actual legitimate original cost or fair value of a licensed project are initiated by the filing of an initial statement of cost or value (Form No. 6) pursuant to the requirements of the license and subject to the requirements of §§ 4.1, 4.10, or 4.20 of this chapter, respectively. Such statement is referred to the Bureau of Accounts, Finance and Rates, for audit and report, with participation by the Bureau of Law on the legal aspects thereof. Such report is served as provided in §§ 4.4, 4.12, or 4.22 of this chapter. Protest thereto may be filed as provided in §§ 4.5, 4.13, or 4.23 of this chapter. If a protest is filed, a hearing is held after notice (see § 02.0). In the absence of protest, the Commission makes the determination upon the basis of the staff report and recommendations. The licensee is required by §§ 4.7, 4.14, or 4.25 of this chapter to file within 90 days a statement on Form No. 7 showing its compliance with the Commission determination.

§ 02.7 Determinations of net investment. Proceedings for the determination of net investment in a licensed project may be initiated by petition or by Commission order served on the licensee and interested State agencies and published in the FEDERAL REGISTER. Such order is based upon staff studies and recommendations by the Bureau of Accounts, Finance and Rates, with the participation of the Bureau of Law on the legal aspects thereof. After notice, a hearing may be held (see § 02.0).

§ 02.8 Headwater benefits. Commission action for the determination of headwater benefits under section 10 (f) of the act may be initiated by petition containing such information as the Secretary will specify upon written request. Answers thereto shall also contain such information as the Secretary will specify. Such petitions and answers are referred to the Bureau of Power and the Bureau of Law for studies and recommendations. After notice, a hearing may be held (see § 02.0).

§ 02.9 Federal acquisition of licensed projects. The Commission determination of net investment required for Federal acquisition of a licensed project under section 14 of the act follows the procedure described in § 02.7. Proceedings for the determination of severance damages in connection therewith are similarly initiated and conducted. Information concerning the procedures to be followed for determination of just and fair compensation for a licensed project taken over by the United States under section 16 of the act may be secured by written request to the Secretary.

§ 02.10 Rates, services, securities— (a) Rate schedules. The requirements applicable to the filing of rate schedules by licensees are stated in § 35.20 of this chapter. The functions and procedures followed in connection therewith are as stated in § 02.26.

(b) Services, etc. Proceedings to determine the services to be rendered by licensees, and rates and charges of payment therefor, under sections 19 and 20 of the act are as described in §§ 02.27 and 02.29.

Proceedings for

(c) Security issues. obtaining Commission authorization for the issuance of securities by licensees pursuant to section 19 and 20 of the act are subject to the requirements of Part 20 of this chapter. The functions and procedures followed in connection therewith are as stated in § 02.25.

§ 02.11 Restoration of Government lands. The requirements for applications for restoration of Government lands withdrawn for power purposes under section 24 of the act are stated in Part 25 of this chapter. Such applications are referred to the Bureau of Power and to the Bureau of Law for studies and recommendations. After notice, a hearing may be held (see § 02.0). In the event of a favorable determination, the Commission notifies the Secretary of the Interior in accordance with section 24 of the act.

§ 02.12 Field inspections and revocation of permits and licenses by court action. Compliance with the terms of licenses and with the approved plans in construction, operation, and maintenance of licensed projects, and compliance with the terms of preliminary permits, is enforced by periodic inspections by the Bureau of Power, principally through the Regional Offices, or through